The Company considers all fixed-maturity securities to be available-for-sale and reports them at fair value with the net unrealized gains or losses reported (after-tax) as a component of accumulated other comprehensive income. The proceeds from sales of securities were $18.6 million and $161.9 million for the three and six months ended June 30, 2026, and $220.9 million and $290.2 million for the three and six months ended June 30, 2025, respectively. Gross gains of $0.1 million and $1.4 million, and gross losses of $0.2 million and $0.4 million were realized on sales of available-for-sale securities during the three and six months ended June 30, 2026, respectively. Gross gains of $3.5 million and $6.4 million, and gross losses of $0 for both periods were realized on sales of available-for-sale securities during the three and six months ended June 30, 2025, respectively. Gains and losses on securities are determined on a specific-identification basis.


	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value
June 30, 2026	(in thousands)
Fixed-maturity securities, available-for-sale:
U.S. Treasury securities and obligations guaranteed by the U.S. government	$	9,229	$	17	$	—	$	9,246
Corporate	598,508		5,535		(1,975)		602,068

Total fixed-maturity securities, available-for-sale	$	607,737	$	5,552	$	(1,975)	$	611,314


	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value
December 31, 2025	(in thousands)
Fixed-maturity securities, available-for-sale:
U.S. Treasury securities and obligations guaranteed by the U.S. government	$	2,073	$	44	$	—	$	2,117
Corporate	544,682		11,836		(207)		556,311

Total fixed-maturity securities, available-for-sale	$	546,755	$	11,880	$	(207)	$	558,428


	Amortized Cost		Fair Value
June 30, 2026	(in thousands)
Due in one year or less	$	500	$	504
Due after one year through five years	141,920		143,556
Due after five years through ten years	309,565		311,798
Due after ten years	155,752		155,456

Total fixed-maturity securities, available-for-sale	$	607,737	$	611,314

The following table shows the Company’s gross unrealized losses and fair value for available-for-sale securities aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position:


	Less Than 12 Months				12 Months or More				Total
	Fair Value		Gross Unrealized (Losses)		Fair Value		Gross Unrealized (Losses)		Fair Value		Gross Unrealized (Losses)
June 30, 2026	(in thousands)
Fixed-maturity securities, available-for-sale:

Corporate	$	230,824	$	(1,975)	$	—	$	—	$	230,824	$	(1,975)

Total fixed-maturity securities, available-for-sale	$	230,824	$	(1,975)	$	—	$	—	$	230,824	$	(1,975)


	Less Than 12 Months				12 Months or More				Total
	Fair Value		Gross Unrealized (Losses)		Fair Value		Gross Unrealized (Losses)		Fair Value		Gross Unrealized (Losses)
December 31, 2025	(in thousands)
Fixed-maturity securities, available-for-sale:

Corporate	$	62,716	$	(207)	$	—	$	—	$	62,716	$	(207)

Total fixed-maturity securities, available-for-sale	$	62,716	$	(207)	$	—	$	—	$	62,716	$	(207)

As of June 30, 2026, the Company held securities of thirty-six issuers that were in an unrealized loss position with a total fair value of $230.8 million, and gross unrealized losses of $2.0 million. None of the fixed-maturity securities with unrealized losses has ever missed, or been delinquent on, a scheduled principal or interest payment date.

The Company performs a periodic assessment of its available-for-sale portfolio to determine if there is a decline in the fair value below the amortized cost basis and if the decline is due to credit-related factors or noncredit-related factors (i.e., changes in market-based interest rates). The Company considers several factors in completing its review of potential credit losses, including the extent to which a security’s fair value has been below cost and the financial condition of the issuer. In addition to specific issuer information, the Company also evaluates the current market and interest rate environment. Generally, a change in a security’s value caused by a change in the market or interest rate environment does not constitute a credit loss.

During the three and six months ended June 30, 2026, the Company did not recognize any impairment losses or write off any accrued interest receivable related to its available-for-sale fixed-maturity securities.

For all available-for-sale securities in an unrealized loss position as of June 30, 2026, the Company does not intend to sell, and it is not “more likely than not” that the Company will be required to sell these securities before recovery of their amortized cost basis.


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(in thousands)
Investment income
Fixed-maturity securities, available-for-sale	$	8,936	$	6,524	$	17,379	$	12,840
Utility & Infrastructure Investments	1,178		1,072		2,312		2,931
Short-term investments	1,939		1,154		3,568		1,724
Loans to affiliates	1,524		1,543		3,053		1,793
Cash equivalents	290		475		705		911


Gross investment income	13,867		10,768		27,017		20,199


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(in thousands)
Management fees (1)	(1,058)		1,286		(2,038)		(115)
Other expenses (1)	(147)		(163)		(275)		(298)
Net investment income	$	12,662	$	11,891	$	24,704	$	19,786

The following table summarizes the Company’s change in net unrealized gains (losses) on available-for-sale fixed-maturity securities for the three and six months ended June 30, 2026 and 2025:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(in thousands)
Fixed-maturity securities, available-for-sale:
Change in net unrealized gains (losses)	$	3,259	$	179	$	(8,096)	$	54
Total	$	3,259	$	179	$	(8,096)	$	54


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(in thousands)
Gross realized gains:
Fixed-maturity securities, available-for-sale	$	101	$	3,528	$	1,444	$	6,363
Utility & Infrastructure Investments	21,324		—		33,727		26,416



Securities sold, not yet purchased	—		—		—		15
Total	21,425		3,528		35,171		32,794

Gross realized (losses):
Fixed-maturity securities, available-for-sale	(192)		(10)		(351)		(12)
Utility & Infrastructure Investments	(174)		(19,126)		(547)		(11,480)
Short-term investments	(1)		(1)		(12)		(1)



Total	(367)		(19,137)		(910)		(11,493)

Net unrealized gains (losses) on investments:
Utility & Infrastructure Investments	(2,519)		17,018		(6,257)		(24,491)

Equity securities (1)	52		—		52		—
Total	(2,467)		17,018		(6,205)		(24,491)

Net realized and unrealized gains (losses)	$	18,591	$	1,409	$	28,056	$	(3,190)

(1) Included in other invested assets in the condensed consolidated balance sheets.

The assets recognized in the Company’s condensed consolidated balance sheets related to the Company’s variable interests in non-consolidated VIEs as of June 30, 2026 and December 31, 2025, are summarized as follows:


	June 30, 2026						December 31, 2025
	Cost		Net Unrealized Gains (Losses)		Fair Value		Cost		Net Unrealized Gains (Losses)		Fair Value
	(in thousands)
Absolute Return Utility & Infrastructure Fund	$	172,753	$	43,108	$	215,861	$	162,753	$	16,138	$	178,891
MidCap Limited Partnership	10,000		1,406		11,406		10,000		968		10,968
Total Utility & Infrastructure Investments	$	182,753	$	44,514	$	227,267	$	172,753	$	17,106	$	189,859

The Company accounts for its investment in the Absolute Return Utility & Infrastructure Fund under the variable interest model at the fund’s NAV as a practical expedient for fair value. This amount represents the Company’s maximum exposure to loss related to the unconsolidated VIE. The Absolute Return Utility & Infrastructure Fund is the master within a “master-feeder” fund structure whereby its current shareholders, Utility Limited Partnership and two other feeder funds (collectively, the “Feeder Funds”), invest substantially all their capital in the Absolute Return Utility & Infrastructure Fund.

The Absolute Return Utility & Infrastructure Fund’s investment objective is to employ an energy and infrastructure-focused long/short strategy which seeks to deliver absolute returns in all market conditions with minimal correlation to energy sector indices and broader market indices. The Absolute Return Utility & Infrastructure Fund invests primarily in the equities of electric and gas utilities, integrated utilities, water utilities, telecommunication companies, independent power producers and pipelines, exploration and production companies, oilfield service companies and more broadly in energy and infrastructure-related industries (such as chemicals, materials, transportation infrastructure and real estate equities). The Absolute Return Utility & Infrastructure Fund’s portfolio is generally managed to be balanced.

The Company performed an assessment of all relevant facts and circumstances and determined that the Absolute Return Utility & Infrastructure Fund is a VIE. The Company concluded that it is not the primary beneficiary of the VIE because the investment manager controls the significant activities of the Absolute Return Utility & Infrastructure Fund.

The Absolute Return Utility & Infrastructure Fund measures its investments, which consist primarily of equities, and its derivative activities, which relate to swap contracts, foreign currency forward contracts and option contracts, at fair value, being the amount for which an asset could be exchanged between knowledgeable willing parties in an arms-length transaction. As the majority of the Absolute Return Utility & Infrastructure Fund’s investments are exchange-traded securities, such securities are reported at fair value.

The following table summarizes certain investments of the Absolute Return Utility & Infrastructure Fund where the Utility Limited Partnership’s proportionate share of the fair value of the classes of investment represents more than 10% of the Company’s stockholders’ equity as of June 30, 2026 and December 31, 2025:


Investment in securities	Cost (1)		Fair Value (1)		Percentage of Stockholders' Equity
June 30, 2026	(in thousands)
Assets:
Total common stock	$	362,856	$	400,422	59.73	%
Liabilities:
Total common stock	$	(224,621)	$	(239,683)	(35.75)	%


Investment in securities	Cost (1)		Fair Value (1)		Percentage of Stockholders' Equity
December 31, 2025	(in thousands)
Assets:
Total common stock	$	282,230	$	292,719	47.61	%
Liabilities:
Total common stock	$	(142,418)	$	(142,860)	(23.23)	%

There were no investments of the Absolute Return Utility & Infrastructure Fund where the Utility Limited Partnership’s proportionate share of the fair value of certain investments represents more than 5% of the Company’s stockholders’ equity as of June 30, 2026 and December 31, 2025.

Effective April 1, 2018, under the Investment Management Agreement, dated April 1, 2018, between the Utility Limited Partnership and the Investment Manager, the Investment Manager is paid a quarterly fixed fee computed at an annual rate of 2.0% (i.e., 0.5% per quarter) of the balance of each limited partner’s capital account (the “Fixed Fee”). The Fixed Fee was $1.0 million and $1.9 million for the three and six months ended June 30, 2026 and $(1.3) million and $0 for the three and six months ended June 30, 2025, respectively. The Fixed Fee payable under the Investment Management Agreement was waived by the Investment Manager for the three and six months ended June 30, 2025, resulting in a management fee credit of $1.3 million for the three months ended June 30, 2025.

Under the terms of the revised Utility Limited Partnership Agreement of ZP Utility Insurance Fund, L.P., the Utility General Partner is entitled to an incentive allocation equal to 20% of the Utility Limited Partnership’s net profits, subject to high watermark provisions, and adjusted for withdrawals. The Incentive Allocation is credited as of the end of the fiscal year to the Capital Account of the Utility General Partner. The incentive allocation was $3.7 million and $5.4 million for the three and six months ended June 30, 2026 and $0 for both the three and six months ended June 30, 2025, respectively.

On January 1, 2025, the Company entered into the Amended and Restated Limited Partnership Agreement with the MidCap Limited Partnership with an initial investment of $10 million. The MidCap Limited Partnership operates as a feeder fund in a “master-feeder” structure, in which the MidCap Limited Partnership invests substantially all of its assets in the ZP Master MidCap Fund, Ltd. (“MidCap Fund”).

ZP MidCap GP, LLC (the “MidCap General Partner”), an affiliate of ZFSG, is the general partner of the MidCap Limited Partnership and is responsible for the investment decisions of the MidCap Limited Partnership, including the appointment of the investment manager of the MidCap Limited Partnership. The Investment Manager is also the investment manager of the MidCap Fund and the MidCap Limited Partnership.

The Company performed an assessment of all relevant facts and circumstances and determined that the MidCap Limited Partnership is a VIE. The Company concluded that it is not the primary beneficiary of the VIE because the investment manager controls the significant activities of the MidCap Fund and MidCap Limited Partnership.

The Company measures its investment in the MidCap Limited Partnership at fair value using the reported net asset value (“NAV”) as a practical expedient in accordance with ASC 820, Fair Value Measurement. The carrying amount of the investment represents the Company’s maximum exposure to loss related to the unconsolidated VIE.

The Company entered into technology transactions, (the “Technology Transactions”) effective January 1, 2023, with ZFSG and Zimmer Technology Group, LLC (“ZTG”), a wholly owned subsidiary of ZFSG, governing the sale, licensing and services related to certain technology assets developed and owned by the Company. As part of the Technology Transactions, ZTG acquired the assets for a purchase price of $13.5 million paid in the form of a promissory note (“the Promissory Note”) issued by ZFSG bearing interest at 7.42% per annum with a maturity date of December 31, 2029. The unpaid principal balance was $12.5 million as of June 30, 2026 and December 31, 2025.

In connection with the Company’s redemption on March 31, 2025 from its investment in the Utility Limited Partnership, effective April 1, 2025, the Company executed: (a) a Loan Agreement with a principal amount of $94.0 million, with Zimmer Insurance Services, LLC (“ZIS”), a wholly owned subsidiary of ZFSG (the “ZIS Loan”), as the borrower; and (b) a Guarantee and Pledge Agreement with ZFSG. The ZIS Loan provides for a fixed interest rate of 5.5%, payable annually in cash and matures on April 30, 2032. The Company carries the ZIS loan at its unpaid principal balance.

The Company had invested assets with a carrying value of $0.1 million on deposit with state regulatory authorities as of both June 30, 2026 and December 31, 2025, which are included in cash and cash equivalents in the condensed consolidated balance sheets.