v3.26.1
Investments
 6 Months Ended
Jun. 30, 2026
Investments, Debt and Equity Securities [Abstract]  
Investments Investments
The following tables set forth the amortized cost and the fair value by investment category at June 30, 2026 and December 31, 2025:
($ in thousands)Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Allowance for Credit LossesFair Value
June 30, 2026
Fixed maturity securities, available-for-sale:
U.S. government securities$128,460 $59 $(1,455)$— $127,064 
Non U.S government securities2,721 — (44)— 2,677 
Corporate securities and miscellaneous796,092 7,253 (6,310)(6,228)790,807 
Municipal securities93,125 1,337 (2,249)— 92,213 
Residential mortgage-backed securities450,728 4,979 (10,496)— 445,211 
Commercial mortgage-backed securities84,645 539 (560)— 84,624 
Other asset-backed securities650,855 2,610 (3,878)— 649,587 
Total fixed maturity securities, available-for-sale$2,206,626 $16,777 $(24,992)$(6,228)$2,192,183 
Fixed maturity securities, held-to-maturity:
Other asset-backed securities$30,448 $6,524 $— $(2,256)$34,716 
Total fixed maturity securities, held-to-maturity$30,448 $6,524 $— $(2,256)$34,716 
($ in thousands)Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Loss		Allowance for Credit LossesFair Value
December 31, 2025
Fixed maturity securities, available-for-sale:
U.S. government securities$44,190 $292 $(14)$— $44,468 
Corporate securities and miscellaneous632,244 14,223 (3,080)(7,000)636,387 
Municipal securities102,691 1,725 (2,300)— 102,116 
Residential mortgage-backed securities487,145 8,928 (9,486)— 486,587 
Commercial mortgage-backed securities72,631 1,016 (597)— 73,050 
Other asset-backed securities509,854 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)$33,603 
The following table sets forth the amortized cost and fair value of available-for-sale fixed maturity securities by contractual maturity at June 30, 2026:
($ in thousands)Amortized
Cost		Fair Value
Due in less than one year$38,700 $38,794 
Due after one year through five years621,490 613,572 
Due after five years through ten years295,763 297,152 
Due after ten years64,445 63,243 
Mortgage-backed securities535,373 529,835 
Other asset-backed securities650,855 649,587 
Total$2,206,626 $2,192,183 
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.
The Company’s fixed maturity securities, held-to-maturity, at June 30, 2026 consisted entirely of asset-backed securities that were not due at a single maturity date.
At June 30, 2026, the Company had U.S. government agencies mortgage-backed fixed maturity securities, with a carrying value of approximately $65.8 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 June 30, 2026, the Company had assets with fair values of approximately $88.5 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 $71.3 million are residential mortgage-backed securities, $15.0 million of cash and cash equivalents and other assets and $2.2 million of short-term investments.
The following tables set forth the gross unrealized losses and the corresponding fair values of investments, aggregated by length of time that individual securities had been in a continuous unrealized loss position as of June 30, 2026 and 2025:
Less than 12 Months12 Months or MoreTotal
($ in thousands)Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
June 30, 2026
Fixed maturity securities, available-for-sale:
U.S. government securities$103,494 $(1,455)$— $— $103,494 $(1,455)
Non-U.S. government securities2,677 (44)— — 2,677 (44)
Corporate securities and miscellaneous347,196 (4,271)40,383 (2,039)387,579 (6,310)
Municipal securities21,859 (380)19,056 (1,869)40,915 (2,249)
Residential mortgage-backed securities151,044 (1,553)61,911 (8,943)212,955 (10,496)
Commercial mortgage-backed securities21,241 (53)5,246 (507)26,487 (560)
Other asset-backed securities292,691 (2,913)8,394 (965)301,085 (3,878)
Total$940,202 $(10,669)$134,990 $(14,323)$1,075,192 $(24,992)
Less than 12 Months12 Months or MoreTotal
($ in thousands)Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross 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 miscellaneous67,644 (346)63,575 (2,734)131,219 (3,080)
Municipal securities19,157 (400)22,004 (1,900)41,161 (2,300)
Residential mortgage-backed securities56,147 (262)74,075 (9,224)130,222 (9,486)
Commercial mortgage-backed securities4,646 (3)8,363 (594)13,009 (597)
Other asset-backed securities85,098 (424)16,081 (929)101,179 (1,353)
Total fixed maturity securities, available-for-sale233,041 (1,436)185,663 (15,394)418,704 (16,830)
Fixed maturity securities, held-to-maturity:
Other asset-backed securities1,912 (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 June 30, 2026, the Company had 987 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 June 30, 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.
The following table sets forth the changes in the allowance for credit losses on available-for-sale securities and held-to-maturity securities during the six months ended June 30, 2026 and 2025:
($ in thousands)Fixed Maturity Securities, Available-For-SaleFixed 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 
Write-offs— 1,955 
Recoveries of amounts previously written off(272)— 
Balance at June 30, 2026$6,228 $2,256 
Fixed Maturity Securities, Available-For-SaleFixed Maturity Securities, Held-to-Maturity
Balance at December 31, 2024$— $243 
Current period provision for credit losses— 7 
Balance at March 31, 2025$— $250 
Current period provision for credit losses6,150 18 
Balance at June 30, 2025$6,150 $268 
The following table sets forth the components of net investment (losses) gains for the three and six months ended June 30, 2026 and 2025:
Three months ended June 30,Six months ended June 30,
($ in thousands)2026202520262025
Gross realized gains
Fixed maturity securities, available-for-sale$1,339 $452 $2,971 $905 
Equity securities— 15,441 — 17,186 
Other(1,964)596 (1,789)626 
Total(625)16,489 1,182 18,717 
Gross realized losses
Fixed maturity securities, available-for-sale(1,347)(8,477)(1,605)(8,597)
Equity securities— (1,577)— (2,255)
Other(556)(164)(695)(335)
Total(1,903)(10,218)(2,300)(11,187)
Net unrealized gains (losses) on investments
Equity securities— (9,429)(33)(8,349)
Mortgage loans— 330 99 264 
Other1,927 5,918 3,636 10,395 
Net investment (losses) gains
$(601)$3,090 $2,584 $9,840 
The following table sets forth the proceeds from sales of available-for-sale fixed maturity securities and equity securities for the six months ended June 30, 2026 and 2025:
Six months ended June 30,
($ in thousands)20262025
Fixed maturity securities, available-for-sale$237,986 $25,524 
Equity securities— 67,495 
The following table sets forth the components of net investment income for the three and six months ended June 30, 2026 and 2025:
Three months ended June 30,Six months ended June 30,
($ in thousands)2026202520262025
Income (loss):
Fixed maturity securities, available-for-sale$25,879 $18,453 $55,290 $35,741 
Fixed maturity securities, held-to-maturity403 (822)(674)— 
Equity securities19 492 37 1,109 
Equity method investments(1,057)(898)(2,354)(2,886)
Mortgage loans291 270 (374)931 
Indirect loans(4,312)(4,249)(6,105)(4,990)
Short-term investments and cash2,463 3,707 5,937 6,899 
Other6,719 909 7,405 1,970 
Total investment income30,405 17,862 59,162 38,774 
Investment expenses322 842 (1,380)(648)
Net investment income$30,727 $18,704 $57,782 $38,126 
The following table sets forth the change in net unrealized gains (losses) on the Company’s investment portfolio, net of deferred income taxes, included in other comprehensive loss for the three and six months ended June 30, 2026 and 2025:
Three months ended June 30,Six months ended June 30,
($ in thousands)2026202520262025
Fixed maturity securities$(1,609)$9,403 $(22,762)$24,687 
Deferred income taxes644 (2,022)4,214 (5,233)
Total$(965)$7,381 $(18,548)$19,454