| Other Comprehensive Income |
Other Comprehensive (Loss) Income The following table summarizes the components of other comprehensive (loss) income for the three and nine months ended September 30, 2026 and 2025: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | | 2026 | | 2025 | | 2026 | | 2025 | | | (in thousands) | | Unrealized (losses) gains on fixed-maturity securities arising during the period, before income taxes | | $ | (180,541) | | | $ | 27,170 | | | $ | (235,726) | | | $ | 78,884 | | | Income tax benefit (expense) | | 37,913 | | | (5,706) | | | 49,502 | | | (16,566) | | | Unrealized (losses) gains arising during the period, net of income taxes | | (142,628) | | | 21,464 | | | (186,224) | | | 62,318 | | | Less reclassification adjustment: | | | | | | | | | | Net realized (losses) gains on fixed-maturity securities, before income taxes | | (37,575) | | | 1,684 | | | (37,639) | | | 1,723 | | | Income tax benefit (expense) | | 7,891 | | | (354) | | | 7,904 | | | (362) | | | Reclassification adjustment included in net income | | (29,684) | | | 1,330 | | | (29,735) | | | 1,361 | | | Change in allowance for credit losses on investments, before income taxes | | 1 | | | 4 | | | (26) | | | (11) | | | Income tax benefit (expense) | | (1) | | | (1) | | | 5 | | | 2 | | | Reclassification adjustment included in net income | | — | | | 3 | | | (21) | | | (9) | | | Other comprehensive (loss) income | | $ | (112,944) | | | $ | 20,131 | | | $ | (156,468) | | | $ | 60,966 | |
The sale or credit loss of an available-for-sale fixed-maturity security results in amounts being reclassified from accumulated other comprehensive income (loss) to realized gains or losses in current period earnings. The related tax effect of the reclassification adjustment is recorded in income tax expense in current period earnings. See Note 2 for additional information.
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