Investments (Tables)
|
9 Months Ended |
Sep. 30, 2026 |
|---|
| Summary of Amortized Cost, Allowance for Credit Loss, Gross Unrealized Gains and Losses, and Estimated Fair Value of Available-for-Sale Securities |
The Company holds investments in fixed-maturity securities classified as available-for-sale. As of September 30, 2026 and December 31, 2025, the cost or amortized cost, allowance for credit loss, gross unrealized gains and losses, and estimated fair value of the Company’s available-for-sale fixed-maturity securities by security type were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost or
Amortized |
|
|
Allowance
for Credit |
|
|
Gross
Unrealized |
|
|
Gross
Unrealized |
|
|
Estimated
Fair |
|
|
|
Cost |
|
|
Loss |
|
|
Gains |
|
|
Losses |
|
|
Value |
|
As of September 30, 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury and U.S. government agencies |
|
$ |
1,028,239 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(46,835 |
) |
|
$ |
981,404 |
|
Corporate |
|
|
241,905 |
|
|
|
— |
|
|
|
1 |
|
|
|
(6,063 |
) |
|
|
235,843 |
|
Commercial mortgage-backed securities |
|
|
24,856 |
|
|
|
— |
|
|
|
18 |
|
|
|
(677 |
) |
|
|
24,197 |
|
Available-for-sale fixed-maturity securities |
|
$ |
1,295,000 |
|
|
$ |
— |
|
|
$ |
19 |
|
|
$ |
(53,575 |
) |
|
$ |
1,241,444 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury and U.S. government agencies |
|
$ |
332,284 |
|
|
$ |
— |
|
|
$ |
1,785 |
|
|
$ |
(717 |
) |
|
$ |
333,352 |
|
Corporate |
|
|
241,843 |
|
|
|
— |
|
|
|
1,463 |
|
|
|
(384 |
) |
|
|
242,922 |
|
Commercial mortgage-backed securities |
|
|
21,256 |
|
|
|
— |
|
|
|
74 |
|
|
|
(275 |
) |
|
|
21,055 |
|
Available-for-sale fixed-maturity securities |
|
$ |
595,383 |
|
|
$ |
— |
|
|
$ |
3,322 |
|
|
$ |
(1,376 |
) |
|
$ |
597,329 |
|
|
| Scheduled Contractual Maturities of Fixed-Maturity Securities |
As of September 30, 2026 and December 31, 2025, the scheduled contractual maturities of available-for-sale fixed-maturity securities, with securities not due at a single maturity date shown separately, were as follows:
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2026 |
|
|
December 31, 2025 |
|
|
|
Cost or |
|
|
Estimated |
|
|
Cost or |
|
|
Estimated |
|
|
|
Amortized Cost |
|
|
Fair Value |
|
|
Amortized Cost |
|
|
Fair Value |
|
Due in one year or less |
|
$ |
52,655 |
|
|
$ |
52,492 |
|
|
$ |
10,202 |
|
|
$ |
10,214 |
|
Due after one year through five years |
|
|
715,685 |
|
|
|
699,051 |
|
|
|
353,454 |
|
|
|
354,648 |
|
Due after five years through ten years |
|
|
501,303 |
|
|
|
465,323 |
|
|
|
209,970 |
|
|
|
210,963 |
|
Due after ten years |
|
|
501 |
|
|
|
381 |
|
|
|
501 |
|
|
|
449 |
|
Commercial mortgage-backed securities |
|
|
24,856 |
|
|
|
24,197 |
|
|
|
21,256 |
|
|
|
21,055 |
|
Available-for-sale
fixed-maturity securities |
|
$ |
1,295,000 |
|
|
$ |
1,241,444 |
|
|
$ |
595,383 |
|
|
$ |
597,329 |
|
|
| Summary of Proceeds Received and Gross Realized Gains and Losses from Sales of Available-for-Sale Securities |
Proceeds received and the gross realized gains and losses from sales of available-for-sale fixed-maturity securities for the three and nine months ended September 30, 2026 and 2025 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
Proceeds |
|
$ |
1,878 |
|
|
$ |
2,780 |
|
|
$ |
5,521 |
|
|
$ |
6,139 |
|
Gross realized gains |
|
$ |
14 |
|
|
$ |
34 |
|
|
$ |
69 |
|
|
$ |
72 |
|
Gross realized losses |
|
$ |
(1 |
) |
|
$ |
(1 |
) |
|
$ |
(9 |
) |
|
$ |
(5 |
) |
|
| Summary of Securities with Gross Unrealized Loss Positions Aggregated by Investment Category |
As of September 30, 2026 and December 31, 2025, available-for-sale fixed-maturity securities with gross unrealized loss positions by investment category and length of time the individual securities have been in a continuous loss position were as follows:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less Than Twelve Months |
|
|
Twelve Months or Longer |
|
|
Total |
|
|
|
Gross |
|
|
Estimated |
|
|
Gross |
|
|
Estimated |
|
|
Gross |
|
|
Estimated |
|
|
|
Unrealized |
|
|
Fair |
|
|
Unrealized |
|
|
Fair |
|
|
Unrealized |
|
|
Fair |
|
As of September 30, 2026 |
|
Losses |
|
|
Value |
|
|
Losses |
|
|
Value |
|
|
Losses |
|
|
Value |
|
U.S. Treasury and U.S.
government agencies |
|
$ |
(46,650 |
) |
|
$ |
978,082 |
|
|
$ |
(185 |
) |
|
$ |
2,894 |
|
|
$ |
(46,835 |
) |
|
$ |
980,976 |
|
Corporate |
|
|
(5,819 |
) |
|
|
231,637 |
|
|
|
(244 |
) |
|
|
1,112 |
|
|
|
(6,063 |
) |
|
|
232,749 |
|
Commercial mortgage-backed
securities |
|
|
(627 |
) |
|
|
16,061 |
|
|
|
(50 |
) |
|
|
1,250 |
|
|
|
(677 |
) |
|
|
17,311 |
|
Total |
|
$ |
(53,096 |
) |
|
$ |
1,225,780 |
|
|
$ |
(479 |
) |
|
$ |
5,256 |
|
|
$ |
(53,575 |
) |
|
$ |
1,231,036 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less Than Twelve Months |
|
|
Twelve Months or Longer |
|
|
Total |
|
|
|
Gross |
|
|
Estimated |
|
|
Gross |
|
|
Estimated |
|
|
Gross |
|
|
Estimated |
|
|
|
Unrealized |
|
|
Fair |
|
|
Unrealized |
|
|
Fair |
|
|
Unrealized |
|
|
Fair |
|
As of December 31, 2025 |
|
Losses |
|
|
Value |
|
|
Losses |
|
|
Value |
|
|
Losses |
|
|
Value |
|
U.S. Treasury and U.S.
government agencies |
|
$ |
(553 |
) |
|
$ |
208,273 |
|
|
$ |
(164 |
) |
|
$ |
2,918 |
|
|
$ |
(717 |
) |
|
$ |
211,191 |
|
Corporate |
|
|
(289 |
) |
|
|
28,303 |
|
|
|
(95 |
) |
|
|
1,187 |
|
|
|
(384 |
) |
|
|
29,490 |
|
Commercial mortgage-backed
securities |
|
|
(275 |
) |
|
|
16,749 |
|
|
|
— |
|
|
|
— |
|
|
|
(275 |
) |
|
|
16,749 |
|
Total |
|
$ |
(1,117 |
) |
|
$ |
253,325 |
|
|
$ |
(259 |
) |
|
$ |
4,105 |
|
|
$ |
(1,376 |
) |
|
$ |
257,430 |
|
|
| Summary of Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Value of Equity Securities |
As of September 30, 2026 and December 31, 2025, the cost, gross unrealized gains and losses, and estimated fair value of the Company’s equity securities were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Unrealized |
|
|
Gross
Unrealized |
|
|
Estimated
Fair |
|
|
|
Cost |
|
|
Gains |
|
|
Losses |
|
|
Value |
|
September 30, 2026 |
|
$ |
57,091 |
|
|
$ |
5,222 |
|
|
$ |
(3,069 |
) |
|
$ |
59,244 |
|
December 31, 2025 |
|
$ |
61,597 |
|
|
$ |
6,204 |
|
|
$ |
(1,911 |
) |
|
$ |
65,890 |
|
|
| Summary of Unrealized Gains and Losses for Equity Securities |
The table below presents the portion of unrealized gains and losses in the Company’s consolidated statements of income related to equity securities still held:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
Net (losses) gains recognized |
|
$ |
(989 |
) |
|
$ |
1,799 |
|
|
$ |
(235 |
) |
|
$ |
2,361 |
|
Exclude: Net realized investment gains from equity
investing activities |
|
|
196 |
|
|
|
585 |
|
|
|
1,905 |
|
|
|
1,873 |
|
Net unrealized investment (losses) gains |
|
$ |
(1,185 |
) |
|
$ |
1,214 |
|
|
$ |
(2,140 |
) |
|
$ |
488 |
|
|
| Summary of Proceeds Received, Gross Realized Gains and Losses from Sales of Equity Securities |
Proceeds received and the gross realized gains and losses from sales of equity securities for the three and nine months ended September 30, 2026 and 2025 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
Proceeds |
|
$ |
6,099 |
|
|
$ |
6,115 |
|
|
$ |
41,272 |
|
|
$ |
27,736 |
|
Gross realized gains |
|
$ |
663 |
|
|
$ |
614 |
|
|
$ |
3,038 |
|
|
$ |
2,453 |
|
Gross realized losses |
|
$ |
(467 |
) |
|
$ |
(29 |
) |
|
$ |
(1,133 |
) |
|
$ |
(580 |
) |
|
| Schedule of Company's Investments in Limited Partnerships |
The following table summarizes limited partnership investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2026 |
|
|
December 31, 2025 |
|
|
|
Carrying |
|
|
Unfunded |
|
|
|
|
|
Carrying |
|
|
Unfunded |
|
|
|
|
Investment Strategy |
|
Value |
|
|
Balance |
|
|
(%) (a) |
|
|
Value |
|
|
Balance |
|
|
(%) (a) |
|
Primarily in senior secured loans and, to a
limited extent, in other debt and equity
securities of private U.S. lower-middle-market
companies. (b)(c)(e) |
|
$ |
1,662 |
|
|
$ |
— |
|
|
|
12.22 |
|
|
$ |
1,877 |
|
|
$ |
— |
|
|
|
12.31 |
|
Value creation through active distressed debt
investing primarily in bank loans, public and
private corporate bonds, asset-backed
securities, and equity securities received in
connection with debt restructuring. (b)(d)(e) |
|
|
569 |
|
|
|
— |
|
|
|
1.30 |
|
|
|
587 |
|
|
|
— |
|
|
|
1.27 |
|
High returns and long-term capital appreciation
through investments in the power, utility and
energy industries, and in the infrastructure
sector. (b)(f)(g) |
|
|
2,938 |
|
|
|
— |
|
|
|
0.18 |
|
|
|
2,769 |
|
|
|
— |
|
|
|
0.18 |
|
Value-oriented investments in less liquid and
mispriced senior and junior debts of private
equity-backed companies. (b)(h)(i) |
|
|
1,273 |
|
|
|
— |
|
|
|
0.53 |
|
|
|
1,333 |
|
|
|
— |
|
|
|
0.53 |
|
Value-oriented investments in mature real
estate private equity funds and portfolios
globally. (b)(j) |
|
|
5,487 |
|
|
|
1,597 |
|
|
|
1.32 |
|
|
|
6,182 |
|
|
|
2,042 |
|
|
|
1.32 |
|
Risk-adjusted returns on credit and equity
investments, primarily in private equity-owned
companies. (b)(k) |
|
|
4,147 |
|
|
|
2,680 |
|
|
|
0.52 |
|
|
|
4,942 |
|
|
|
1,610 |
|
|
|
0.54 |
|
Limited partnership investments |
|
$ |
16,076 |
|
|
$ |
4,277 |
|
|
|
|
|
$ |
17,690 |
|
|
$ |
3,652 |
|
|
|
|
(a)Represents the Company’s percentage investment in the fund as of each balance sheet date. (b)Except under certain circumstances, withdrawals from the funds or any assignments are not permitted. Distributions, except income from late admission of a new limited partner, will be received when underlying investments of the funds are liquidated. (c)The term is expected to be two years following the maturity of the fund’s outstanding leverage. Although the capital commitment period has expired, follow-on investments and pending commitments may require additional fundings. (d)Effective July 1, 2023, this investment is in the process of winding down. Although the capital commitment period has ended, the general partner could still request an additional funding under certain circumstances. (e)At the fund manager’s discretion, the term of the fund may be extended for up to two additional one-year periods. (f)Expected to have a ten-year term. The capital commitment period has expired but the general partner may request additional funding for follow-on investment. (g)With the consent of a supermajority of partners, the term of the fund may be extended for up to three additional one-year periods. (h)Expected to have an eight-year term from the commencement date, which can be extended for up to two additional one-year periods with the consent of either the advisory committee or a majority of limited partners. (i)The capital commitment period has ended but an additional funding may be requested. (j)The term is expected to end November 27, 2027. The term may be extended for up to four additional one-year periods at the general partner’s discretion, and up to two additional one-year periods with the consent of the advisory committee. (k)Expected to have an eight-year term after the final admission date. The term may be extended for an additional one-year period at the general partner’s discretion, and up to two additional one-year periods with the consent of either the advisory committee or a majority of limited partners.
|
| Summary of Real Estate Investments |
The following table summarizes real estate investments:
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
|
December 31, |
|
|
|
2026 |
|
|
2025 |
|
Land |
|
$ |
49,296 |
|
|
$ |
50,052 |
|
Land improvements |
|
|
14,400 |
|
|
|
14,760 |
|
Buildings and building improvements |
|
|
43,792 |
|
|
|
44,019 |
|
Tenant and leasehold improvements |
|
|
2,149 |
|
|
|
2,265 |
|
Construction in progress |
|
|
1,836 |
|
|
|
89 |
|
Other |
|
|
1,903 |
|
|
|
2,001 |
|
Total, at cost |
|
|
113,376 |
|
|
|
113,186 |
|
Less: accumulated depreciation |
|
|
(10,693 |
) |
|
|
(9,440 |
) |
Real estate investments |
|
$ |
102,683 |
|
|
$ |
103,746 |
|
|
| Investment Income Summarized |
The following table summarizes net investment income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
Available-for-sale fixed-maturity securities |
|
$ |
12,967 |
|
|
$ |
7,139 |
|
|
$ |
31,058 |
|
|
$ |
21,494 |
|
Equity securities |
|
|
736 |
|
|
|
675 |
|
|
|
2,140 |
|
|
|
1,822 |
|
Investment expense |
|
|
(151 |
) |
|
|
(164 |
) |
|
|
(560 |
) |
|
|
(503 |
) |
Limited partnership investments |
|
|
277 |
|
|
|
(51 |
) |
|
|
(122 |
) |
|
|
(709 |
) |
Real estate investments |
|
|
825 |
|
|
|
547 |
|
|
|
1,353 |
|
|
|
1,320 |
|
Cash and cash equivalents |
|
|
6,883 |
|
|
|
9,362 |
|
|
|
23,599 |
|
|
|
24,280 |
|
Other |
|
|
132 |
|
|
|
21 |
|
|
|
392 |
|
|
|
21 |
|
Net investment income |
|
$ |
21,669 |
|
|
$ |
17,529 |
|
|
$ |
57,860 |
|
|
$ |
47,725 |
|
|