8. Debt

The Company has $12.9 million of gross senior unsecured notes (the "notes") outstanding as of June 30, 2026. A summary of the Company's outstanding debt is as follows (dollars in thousands):

Senior Unsecured Notes

The notes bear an interest rate of 9.75% per annum, payable quarterly at the end of March, June, September and December and mature on September 30, 2028. The Company may redeem the notes, in whole or in part, at face value at any time after September 30, 2025. The Company may also repurchase the notes periodically in private transactions or in the market.

Financial Debt Covenants

The Company was not subject to any restrictive financial debt covenants as of June 30, 2026.

Scheduled Principal Payments

The scheduled principal payment of the Parent Company's debt as of June 30, 2026 is $16.9 million due on September 30, 2028, of which $4.0 million will be paid to TIC.

Funds-Withheld Obligation

Included in Funds held under reinsurance agreements in the Condensed Consolidated Balance Sheets are $20.0 million and $21.3 million as of June 30, 2026, and December 31, 2025, respectively, of a funds-withheld obligation relating to one reinsurance agreement which is accounted for as an embedded derivative. Changes to the funds-withheld obligation due to fair value changes of the underlying asset portfolio are included in Operating and other expenses on the Condensed Consolidated Statements of Operations. The fair value of the underlying asset portfolio increased by $291,000 and $512,000 for the three and six months ended June 30, 2026, respectively. The fair value of the underlying asset portfolio increased by $326,000 and $650,000 for the three and six months ended June 30, 2025, respectively.