v3.26.1
Investments
 6 Months Ended
Jun. 30, 2026
Investments, Debt and Equity Securities [Abstract]  
Investments
4. Investments
Unrealized gains and losses on available for sale fixed maturity and short-term investments, at fair value
The amortized cost, gross unrealized gains, gross unrealized losses and fair values of fixed maturity and short-term investments, were as follows:
June 30, 2026
(in millions)Amortized costGross unrealized gainsGross unrealized lossesFair value
Corporate$229.1 $0.8 $(1.1)$228.8 
US government and agency131.0 0.1 (0.5)130.6 
Non-US government and agency226.8 0.5 (1.6)225.7 
Residential mortgage-backed54.3 0.1 (0.3)54.1 
Commercial mortgage-backed7.6 0.1 — 7.7 
Other asset-backed securities15.4 — (0.1)15.3 
Total fixed maturity and short-term investments$664.2 $1.6 $(3.6)$662.2 
December 31, 2025
(in millions)Amortized costGross unrealized gainsGross unrealized lossesFair value
Corporate$244.4 $2.6 $(0.1)$246.9 
US government and agency123.6 1.0 (0.1)124.5 
Non-US government and agency247.0 1.5 (0.4)248.1 
Residential mortgage-backed55.5 0.6 (0.5)55.6 
Commercial mortgage-backed14.8 0.2 — 15.0 
Other asset-backed securities21.8 0.1 — 21.9 
Total fixed maturity and short-term investments$707.1 $6.0 $(1.1)$712.0 
The following table summarizes, for all our available for sale securities in an unrealized loss position, the fair value and gross unrealized loss by length of time the security has been in a continual unrealized loss position:
June 30, 2026
Less than 12 months12 Months or moreTotal
(in millions)Fair
value		Gross
unrealized
losses		Fair
value		Gross
unrealized
losses		Fair
value		Gross
unrealized
losses
Corporate$135.5 $(1.1)$— $135.5 $(1.1)
US government and agency45.3 (0.5)— — 45.3 (0.5)
Non-US government and agency145.1 (1.4)5.3 (0.2)150.4 (1.6)
Residential mortgage-backed29.4 (0.3)— — 29.4 (0.3)
Other asset-backed securities8.1 (0.1)— — 8.1 (0.1)
Total fixed maturity and short-term investments$363.4 $(3.4)$5.3 $(0.2)$368.7 $(3.6)
December 31, 2025
Less than 12 months12 Months or moreTotal
(in millions)Fair
value		Gross
unrealized
losses		Fair
value		Gross
unrealized
losses		Fair
value		Gross
unrealized
losses
Corporate$25.6 $(0.1)$— $— $25.6 $(0.1)
US government and agency— — 4.8 (0.1)4.8 (0.1)
Non-US government and agency63.0 (0.3)8.1 (0.1)71.1 (0.4)
Residential mortgage-backed— — 3.4 (0.5)3.4 (0.5)
Total fixed maturity and short-term investments$88.6 $(0.4)$16.3 $(0.7)$104.9 $(1.1)
We did not recognize the unrealized losses in earnings on these fixed maturity and short-term investments as of June 30, 2026 and December 31, 2025 because we determined that such losses were due to non-credit factors that are temporary in nature. Additionally, we neither intend to sell the securities nor do we believe that it is more likely than not that we will be required to sell these securities before recovery of their amortized cost basis.
Contractual maturity
The amortized cost and fair values of our fixed maturity and short-term investments by contractual maturity were as follows:
June 30, 2026
(in millions)Amortized costFair value
Due in one year or less$114.2 $114.2 
Due after one year through five years407.5 406.3 
Due after five years through ten years63.9 63.3 
Due after ten years1.3 1.3 
Residential mortgage-backed54.3 54.1 
Commercial mortgage-backed7.6 7.7 
Other asset-backed securities15.4 15.3 
Total fixed maturity and short-term investments$664.2 $662.2 
The expected maturities may differ from the contractual maturities because debtors may have the right to call or prepay obligations with or without call or prepayment penalties.
Equity method and other investments
We have made investments in private equity funds focused on insurance technology ventures, certain MGAs that form part of our distribution network and a technology-focused TPA that provides services to certain of our Members. Such strategic investments are generally accounted for using the equity method of accounting and are included as equity method investments in the financial statements or, in cases where we have elected the measurement alternative, accounted for at fair value based on observable price changes or impairment within Other investments.
Details regarding our equity method investments were as follows:
June 30, 2026December 31, 2025
(in millions)Ownership %Carrying valueOwnership %Carrying value
MGAs
19.0% - 25.2%
$3.2 
19.0% - 20.0%
$2.0 
Other
6.6% - 15.0%
9.8 
8.1% - 15.0%
8.4 
Equity method investments$13.0 $10.4 
In applying the equity method of accounting, we record investments initially at cost and subsequently adjust their carrying value based on our proportionate share of the net income or loss of the investment. We generally record such investments on a one-to-three-month lag. Our maximum exposure to loss with respect to these investments is limited to the investment carrying amounts reported in our consolidated balance sheet and any unfunded commitments. As of June 30, 2026, we had unfunded commitments of $5.2 million to our equity method investees.
For the six months ended June 30, 2026 and 2025, we received dividends from equity method investees of $0.6 million and $0.9 million, respectively.
Details regarding the carrying value of our other investments portfolio were as follows:
(in millions)June 30, 2026December 31, 2025
Investment type:
MGAs and TPAs$78.9 $59.9 
Venture funds9.2 24.1 
Other investments$88.1 $84.0 
We elected the measurement alternative to carry private equity investments in venture funds, ordinary stocks, warrants and stock options of MGAs and TPAs that qualify for the equity method basis of accounting and that do not have a readily determinable fair value, at cost, less any impairment. If observable prices in identical or similar investments from the same issuer are observed, we measure the equity investment at fair value as of the date that such observable transaction occurs.
In April 2026, there was a significant observable increase in the fair value of an investment we have in a third-party claims administration business following third-party capital transactions. We participated in the capital transactions, selling approximately half our ownership interest, which generated $50.9 million of cash proceeds, and an aggregate realized gain on the sale and an unrealized gain on the portion we continue to hold of $54.1 million during the second quarter 2026. Of this amount, $27.0 million was the unrealized gain that is included in the basis of our investment above.
For the three and six months ended June 30, 2026, there were no impairment charges, and as described above we recognized $27.0 million of income as a component of unrealized gains. For the three months ended June 30, 2025, we recognized a $0.5 million impairment charge, and there were no observable prices related to our other investments. For the six months ended June 30, 2025, we recognized a $0.5 million impairment charge, and we recognized $1.7 million of income as a component of unrealized gains following observable prices related to our other investments.
We have recognized cumulative income as a component of unrealized gains of $82.2 million, net of cumulative impairment charges of $0.7 million associated with investments accounted for under the measurement alternative from inception of the related investments.
As of June 30, 2026, we had unfunded commitments of $1.7 million to venture funds.
Net investment income
Investment income and expenses were as follows:
Three Months Ended June 30,Six Months Ended June 30,
(in millions)2026202520262025
Interest on cash and cash equivalents$10.3 $12.1 $23.6 $23.8 
Interest on fixed maturity investments8.3 6.1 15.4 11.4 
Income from equity method investments 1.7 0.7 1.9 1.2 
Gross investment income20.3 18.9 40.9 36.4 
Interest expense on funds held under reinsurance (12.3)(5.7)(20.2)(10.8)
Investment expenses(0.8)(0.4)(1.4)(0.6)
Net investment income$7.2 $12.8 $19.3 $25.0 
Net realized and unrealized gains on investments
The following table presents net realized and unrealized gains (losses) on our investments:
Three Months Ended June 30,Six Months Ended June 30,
(in millions)2026202520262025
Net realized (losses) gains on investments:
Net realized (losses) gains on fixed maturity and short-term investments$(1.1)$0.3 $(1.0)$0.6 
Net realized gains on equity method investments— 0.1 — 2.1 
Net realized gains on other investments (1)
27.1 — 27.1 — 
Net realized gains on investments26.0 0.4 26.1 2.7 
Net unrealized gains (losses) on investments:
Net unrealized gains (losses) on other investments (2)
27.0 (0.5)27.0 1.2 
Net realized and unrealized gains (losses) on investments$53.0 $(0.1)$53.1 $3.9 
(1) As disclosed above, the realized gain related to a sale of a portion of our interests in a TPA investment.
(2) Amounts correspond to income arising from our equity investments accounted for under the measurement alternative (as described above).
Regulated deposits and restricted assets
Certain of our subsidiaries are required to maintain assets on deposit with various regulatory authorities to support our insurance and reinsurance operations. The following table represents the deposits for regulatory and other purposes:
(in millions)June 30, 2026December 31, 2025
Fixed maturity securities$7.6 $5.2 
Cash and cash equivalents0.6 — 
Total$8.2 $5.2 
The following table represents the restricted assets we have pledged in favor of certain ceding companies to collateralized obligations:
(in millions)June 30, 2026December 31, 2025
Short-term investments$0.8 $0.9 
Fixed maturity securities23.9 25.8 
Cash and cash equivalents81.4 83.1 
Total$106.1 $109.8