Investments (Tables)
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9 Months Ended |
Sep. 30, 2026 |
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| Investments [Abstract] |
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| Available-for-sale Investments |
The following tables summarize the available-for-sale investments at September 30, 2026 and December 31, 2025: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2026 | | | Amortized Cost | | Gross Unrealized Gains | | Gross Unrealized Losses | | Allowance for Credit Losses | | Estimated Fair Value | | | (in thousands) | | Fixed-maturity securities: | | | | | | | | | | | U.S. Treasury securities and obligations of U.S. government agencies | | $ | 869 | | | $ | — | | | $ | (31) | | | $ | — | | | $ | 838 | | Obligations of states, municipalities and political subdivisions | | 101,347 | | | 1 | | | (22,594) | | | (2) | | | 78,752 | | | Corporate and other securities | | 1,831,099 | | | 59 | | | (99,093) | | | (53) | | | 1,732,012 | | | Asset-backed securities | | 538,114 | | | 464 | | | (7,309) | | | — | | | 531,269 | | Residential mortgage-backed securities | | 1,755,050 | | | 103 | | | (99,365) | | | — | | | 1,655,788 | | | Commercial mortgage-backed securities | | 510,208 | | | 88 | | | (11,630) | | | — | | | 498,666 | | | Total fixed-maturity securities | | $ | 4,736,687 | | | $ | 715 | | | $ | (240,022) | | | $ | (55) | | | $ | 4,497,325 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | | Amortized Cost | | Gross Unrealized Gains | | Gross Unrealized Losses | | Allowance for Credit Losses | | Estimated Fair Value | | | (in thousands) | | Fixed-maturity securities: | | | | | | | | | | | U.S. Treasury securities and obligations of U.S. government agencies | | $ | 861 | | | $ | 14 | | | $ | (1) | | | $ | — | | | $ | 874 | | Obligations of states, municipalities and political subdivisions | | 146,222 | | | 51 | | | (18,410) | | | (3) | | | 127,860 | | | Corporate and other securities | | 1,711,348 | | | 28,798 | | | (26,232) | | | (26) | | | 1,713,888 | | | Asset-backed securities | | 582,780 | | | 6,377 | | | (638) | | | — | | | 588,519 | | Residential mortgage-backed securities | | 1,491,642 | | | 6,378 | | | (38,750) | | | — | | | 1,459,270 | | | Commercial mortgage-backed securities | | 449,872 | | | 3,632 | | | (2,465) | | | — | | | 451,039 | | | Total fixed-maturity securities | | $ | 4,382,725 | | | $ | 45,250 | | | $ | (86,496) | | | $ | (29) | | | $ | 4,341,450 | |
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| Debt Securities, Available-for-Sale, Allowance for Credit Loss |
The following table presents changes in the allowance for expected credit losses on available-for-sale securities 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) | | Beginning balance | | $ | 56 | | | $ | 42 | | | $ | 29 | | | $ | 27 | | | Increase to allowance from securities for which credit losses were not previously recorded | | — | | | — | | | 43 | | | — | | | Reduction from securities sold during the period | | — | | | — | | | (16) | | | (14) | | | Net (decrease) increase from securities that had an allowance at the beginning of the period | | (1) | | | (4) | | | (1) | | | 25 | | | Ending balance | | $ | 55 | | | $ | 38 | | | $ | 55 | | | $ | 38 | |
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| Available-for-sale Securities in an Unrealized Loss Position |
The following tables summarize gross unrealized losses and estimated fair value for available-for-sale investments by length of time that the securities have continuously been in an unrealized loss position: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2026 | | | Less than 12 Months | | 12 Months or Longer | | Total | | | Estimated Fair Value | | Gross Unrealized Losses | | Estimated Fair Value | | Gross Unrealized Losses | | Estimated Fair Value | | Gross Unrealized Losses | | | (in thousands) | | Fixed-maturity securities: | | | | | | | | | | | | | | U.S. Treasury securities and obligations of U.S. government agencies | | $ | 838 | | | $ | (31) | | | $ | — | | | $ | — | | | $ | 838 | | | $ | (31) | | Obligations of states, municipalities and political subdivisions | | 5,845 | | | (373) | | | 71,145 | | | (22,221) | | | 76,990 | | | (22,594) | | Corporate and other securities | | 1,583,369 | | | (71,291) | | | 126,838 | | | (27,802) | | | 1,710,207 | | | (99,093) | | | Asset-backed securities | | 346,029 | | | (6,888) | | | 7,918 | | | (421) | | | 353,947 | | | (7,309) | | Residential mortgage-backed securities | | 1,539,055 | | | (82,866) | | | 85,930 | | | (16,499) | | | 1,624,985 | | | (99,365) | | | Commercial mortgage-backed securities | | 362,969 | | | (9,047) | | | 56,693 | | | (2,583) | | | 419,662 | | | (11,630) | | | Total fixed-maturity securities | | $ | 3,838,105 | | | $ | (170,496) | | | $ | 348,524 | | | $ | (69,526) | | | $ | 4,186,629 | | | $ | (240,022) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | | Less than 12 Months | | 12 Months or Longer | | Total | | | Estimated Fair Value | | Gross Unrealized Losses | | Estimated Fair Value | | Gross Unrealized Losses | | Estimated Fair Value | | Gross Unrealized Losses | | | (in thousands) | | Fixed-maturity securities: | | | | | | | | | | | | | U.S. Treasury securities and obligations of U.S. government agencies | | $ | 296 | | | $ | (1) | | | $ | — | | | $ | — | | | $ | 296 | | | $ | (1) | | Obligations of states, municipalities and political subdivisions | | 1,043 | | | (2) | | | 118,027 | | | (18,408) | | | 119,070 | | | (18,410) | | Corporate and other securities | | 101,385 | | | (597) | | | 239,152 | | | (25,635) | | | 340,537 | | | (26,232) | | | Asset-backed securities | | 92,682 | | | (384) | | | 7,759 | | | (254) | | | 100,441 | | | (638) | | Residential mortgage-backed securities | | 387,397 | | | (779) | | | 228,531 | | | (37,971) | | | 615,928 | | | (38,750) | | | Commercial mortgage-backed securities | | 103,868 | | | (296) | | | 44,139 | | | (2,169) | | | 148,007 | | | (2,465) | | | Total fixed-maturity securities | | $ | 686,671 | | | $ | (2,059) | | | $ | 637,608 | | | $ | (84,437) | | | $ | 1,324,279 | | | $ | (86,496) | |
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| Contractual Maturities of Available-for-sale Fixed Maturity Securities |
The amortized cost and estimated fair value of available-for-sale fixed-maturity securities at September 30, 2026 are summarized, by contractual maturity, as follows: | | | | | | | | | | | | | | | | | September 30, 2026 | | | Amortized | | Estimated | | | Cost | | Fair Value | | | (in thousands) | | Due in one year or less | | $ | 1,850 | | | $ | 1,854 | | | Due after one year through five years | | 737,941 | | | 720,551 | | | Due after five years through ten years | | 915,485 | | | 860,658 | | | Due after ten years | | 278,039 | | | 228,539 | | | Asset-backed securities | | 538,114 | | | 531,269 | | | Residential mortgage-backed securities | | 1,755,050 | | | 1,655,788 | | | Commercial mortgage-backed securities | | 510,208 | | | 498,666 | | | Total fixed-maturity securities | | $ | 4,736,687 | | | $ | 4,497,325 | |
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| Schedule of Real Estate Properties |
Real estate investments represents directly owned property held for investment purposes. In December 2025, the Company reclassified its former headquarters and related assets to real estate investments. Real estate investments consisted of the following: | | | | | | | | | | | | | | | | | September 30, 2026 | | December 31, 2025 | | | (in thousands) | | Building | | $ | 37,190 | | | $ | 37,190 | | | Parking deck | | 5,072 | | | 5,072 | | | Land | | 18,112 | | | 18,112 | | | Land improvements | | 474 | | | 474 | | | Furniture and fixtures | | 97 | | | 97 | | | Construction in progress | | 230 | | | — | | | Real estate investments | | 61,175 | | | 60,945 | | | Accumulated depreciation | | (6,561) | | | (5,709) | | | Real estate investments, net | | $ | 54,614 | | | $ | 55,236 | |
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| Net Investment Income |
The following table presents the components of net investment 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) | | Interest: | | | | | | | | | | Taxable bonds | | $ | 55,537 | | | $ | 46,697 | | | $ | 160,692 | | | $ | 131,676 | | | Tax exempt municipal bonds | | 113 | | | 346 | | | 658 | | | 1,057 | | | Cash equivalents and short-term investments | | 1,486 | | | 1,774 | | | 4,259 | | | 4,800 | | | Dividends on equity securities | | 2,294 | | | 2,019 | | | 8,065 | | | 5,983 | | | Real estate investment income | | 239 | | | — | | | 778 | | | — | | | Gross investment income | | 59,669 | | | 50,836 | | | 174,452 | | | 143,516 | | | Investment expenses | | (1,404) | | | (1,232) | | | (5,024) | | | (3,620) | | | Net investment income | | $ | 58,265 | | | $ | 49,604 | | | $ | 169,428 | | | $ | 139,896 | |
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| Realized Gain (Loss) on Investments |
The following table presents realized investment gains and losses 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) | | Fixed-maturity securities: | | | | | | | | | | Realized gains | | $ | 1,127 | | | $ | 2,372 | | | $ | 3,538 | | | $ | 3,677 | | | Realized losses | | (38,694) | | | (216) | | | (41,183) | | | (1,403) | | | Net realized (losses) gains from fixed-maturity securities | | (37,567) | | | 2,156 | | | (37,645) | | | 2,274 | | | | | | | | | | | | Equity securities: | | | | | | | | | | Realized gains | | 37,406 | | | — | | | 48,619 | | | 2,465 | | | Realized losses | | (258) | | | — | | | (2,948) | | | (1,910) | | | Net realized gains from equity securities | | 37,148 | | | — | | | 45,671 | | | 555 | | | Realized gains from the sales of short-term investments and cash equivalents | | — | | | 3 | | | 3 | | | 3 | | | | | | | | | | | | Net realized investment gains (losses) | | $ | (419) | | | $ | 2,159 | | | $ | 8,029 | | | $ | 2,832 | |
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| Debt Securities, Trading, and Equity Securities, FV-NI |
The following table presents the components of the change in the fair value of equity securities 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) | | Reversal of prior-period (gains) losses on equity securities sold | | $ | (30,243) | | | $ | 25 | | | $ | (30,272) | | | $ | 134 | | | Change in fair value of equity securities held at the end of the period | | (7,526) | | | 23,692 | | | 40,343 | | | 55,242 | | | Total change in fair value of equity securities | | $ | (37,769) | | | $ | 23,717 | | | $ | 10,071 | | | $ | 55,376 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The change in fair value of equity securities in the consolidated statement of income consists of two components: (1) the reversal of the gain or loss recognized in previous periods on equity securities sold and (2) the change in unrealized gain or loss resulting from mark-to-market adjustments on equity securities still held.
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