The amortized cost, allowance for credit losses, carrying amount, gross unrecognized gains and losses, and the fair value of those investments classified as held-to-maturity at March 31, 2025 are summarized as follows:


	Amortized Cost		Allowance for Credit Losses			Carrying Amount		Gross Unrecognized Gains		Gross Unrecognized Losses			Fair Value
	(in thousands)
States and political subdivisions	$	360,026	$	(29	)	$	359,997	$	1,250	$	(13,333	)	$	347,914
Corporate bonds		28,110		(71	)		28,039		10		(888	)		27,161
U.S. agency-based mortgage-backed securities		2,696		—			2,696		19		(120	)		2,595
U.S. Treasury securities and obligations of U.S. government agencies		8,500		—			8,500		10		(208	)		8,302
Asset-backed securities		9		—			9		—		—			9
Totals	$	399,341	$	(100	)	$	399,241	$	1,289	$	(14,549	)	$	385,981

The amortized cost, gross unrealized gains and losses, fair value, and the allowance for credit losses of those investments classified as available-for-sale at March 31, 2025 are summarized as follows:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Allowance for Credit Losses
	(in thousands)
States and political subdivisions	$	163,615	$	208	$	(8,157	)	$	155,666	$	—
Corporate bonds		141,024		1,766		(1,880	)		140,910		—
U.S. agency-based mortgage-backed securities		4,406		—		(403	)		4,003		—
U.S. Treasury securities and obligations of U.S. government agencies		14,886		—		(739	)		14,147		—
Totals	$	323,931	$	1,974	$	(11,179	)	$	314,726	$	—

The cost, gross unrealized gains and losses, and the fair value of equity securities at March 31, 2025 are summarized as follows:


	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
Equity securities:
Domestic common stock - Exchange Traded Funds	$	36,020	$	19,465	$	(9	)	$	55,476
Total equity securities	$	36,020	$	19,465	$	(9	)	$	55,476


	Amortized Cost		Allowance for Credit Losses			Carrying Amount		Gross Unrecognized Gains		Gross Unrecognized Losses			Fair Value
	(in thousands)
States and political subdivisions	$	368,056	$	(30	)	$	368,026	$	1,810	$	(13,568	)	$	356,268
Corporate bonds		33,849		(86	)		33,763		6		(1,099	)		32,670
U.S. agency-based mortgage-backed securities		2,781		—			2,781		11		(149	)		2,643
U.S. Treasury securities and obligations of U.S. government agencies		8,478		—			8,478		11		(362	)		8,127
Asset-backed securities		13		—			13		—		—			13
Totals	$	413,177	$	(116	)	$	413,061	$	1,838	$	(15,178	)	$	399,721

The amortized cost, gross unrealized gains and losses, fair value, and the allowance for credit losses of those investments classified as available-for-sale at December 31, 2024 are summarized as follows:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Allowance for Credit Losses
	(in thousands)
States and political subdivisions	$	156,488	$	148	$	(8,430	)	$	148,206	$	—
Corporate bonds		143,070		1,248		(2,783	)		141,535		—
U.S. agency-based mortgage-backed securities		4,545		—		(486	)		4,059		—
U.S. Treasury securities and obligations of U.S. government agencies		14,872		—		(922	)		13,950		—
Totals	$	318,975	$	1,396	$	(12,621	)	$	307,750	$	—

The cost, gross unrealized gains and losses, and the fair value of equity securities at December 31, 2024 are summarized as follows:


	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in thousands)
Equity securities:
Domestic common stock - Exchange Traded Funds	$	36,020	$	22,609	$	—	$	58,629
Total equity securities	$	36,020	$	22,609	$	—	$	58,629

A summary of the carrying amounts and fair value of investments in fixed maturity securities classified as held-to-maturity, by contractual maturity, is as follows:


	March 31, 2025				December 31, 2024
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(in thousands)
Maturity:
Within one year	$	46,809	$	46,468	$	49,303	$	48,831
After one year through five years		84,055		81,338		93,087		89,418
After five years through ten years		119,428		113,802		115,307		109,812
After ten years		146,244		141,769		152,570		149,004
U.S. agency-based mortgage-backed securities		2,696		2,595		2,781		2,643
Asset-backed securities		9		9		13		13
Totals	$	399,241	$	385,981	$	413,061	$	399,721

A summary of the amortized cost and fair value of investments in fixed maturity securities classified as available-for-sale, by contractual maturity, is as follows:


	March 31, 2025				December 31, 2024
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(in thousands)
Maturity:
Within one year	$	31,138	$	30,931	$	23,944	$	23,806
After one year through five years		86,691		85,258		97,996		95,500
After five years through ten years		75,622		73,575		71,233		68,494
After ten years		126,074		120,959		121,257		115,891
U.S. agency-based mortgage-backed securities		4,406		4,003		4,545		4,059
Totals	$	323,931	$	314,726	$	318,975	$	307,750


	Less Than 12 Months				12 Months or Greater				Total
	Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses
	(in thousands)
March 31, 2025
Available-for-Sale
States and political subdivisions	$	66,649	$	1,276	$	70,620	$	6,881	$	137,269	$	8,157
Corporate bonds		24,309		304		43,472		1,576		67,781		1,880
U.S. agency-based mortgage-backed securities		—		—		4,003		403		4,003		403
U.S. Treasury securities and obligations of U.S. government agencies		—		—		14,147		739		14,147		739
Total available-for-sale securities	$	90,958	$	1,580	$	132,242	$	9,599	$	223,200	$	11,179

At March 31, 2025, we held 184 individual fixed maturity securities classified as available-for-sale that were in an unrealized loss position.


	Less Than 12 Months				12 Months or Greater				Total
	Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses
	(in thousands)
December 31, 2024
Available-for-Sale
States and political subdivisions	$	100,190	$	5,748	$	27,446	$	2,682	$	127,636	$	8,430
Corporate bonds		71,069		1,790		19,000		993		90,069		2,783
U.S. agency-based mortgage-backed securities		3,840		446		219		40		4,059		486
U.S. Treasury securities and obligations of U.S. government agencies		—		—		13,950		922		13,950		922
Total available-for-sale securities	$	175,099	$	7,984	$	60,615	$	4,637	$	235,714	$	12,621

The following table illustrates the changes in the allowance for credit losses by major security type of the investments classified as held-to-maturity for the quarter ended March 31, 2025.


	States and Political Subdivisions			Corporate Bonds			U.S. Agency -Based Mortgage- Backed Securities		U.S. Treasury Securities and Obligations of U.S. Government Agencies		Asset-Backed Securities		Totals
	(in thousands)
Balance at December 31, 2024	$	30		$	86		$	—	$	—	$	—	$	116
Provision for credit loss benefit		(1	)		(15	)		—		—		—		(16	)
Balance at March 31, 2025	$	29		$	71		$	—	$	—	$	—	$	100

As of March 31, 2025, the Company has established an allowance for credit losses on 401 held-to-maturity securities totaling $0.1 million. Most of those securities were issued by states and political subdivisions (387 securities) and corporate bonds (13 securities).

The Company has no allowance for credit losses on investments classified as available-for-sale for the period ended March 31, 2025.

The credit rating used for held-to-maturity fixed income securities is the rating for each security as published by Moody’s, Standard and Poor's, and Fitch to determine the probability of default. If there are two ratings, the lower rating is used. If there are three ratings, the median rating is used. If there is one rating, that rating is used. For corporate fixed income securities (given a rating), the probability of default comes from Moody’s annual study of corporate bond defaults published each February. The maximum maturity using the default rate is 20 years (any maturity greater than 20 years will use the 20-year rate). For municipal fixed income securities (given a rating), the probability of default comes from Moody’s study of municipal bond defaults published annually.

The calculation of the credit loss allowance takes the amortized cost of the fixed income security and assumes default and recovery based on the average recovery rates from the Moody’s default studies. The amortized cost of the security, plus any accrued interest, minus the amount recovered, is the estimated full amount the Company could lose in a default scenario. This amount is then multiplied by the probability of default to determine the allowance for credit loss. The lower the security is rated, the higher likelihood of default, and therefore a higher allowance for credit loss. The longer to the maturity date of a security, the higher the default risk.

The table below presents the amortized cost of held-to-maturity securities aggregated by credit quality indicator as of March 31, 2025.


	States and Political Subdivisions		Corporate Bonds		U.S. Agency -Based Mortgage- Backed Securities		U.S. Treasury Securities and Obligations of U.S. Government Agencies		Asset-Backed Securities		Totals
	Amortized Cost
	(in thousands)
AAA/AA/A ratings	$	359,370	$	13,104	$	2,696	$	8,500	$	—	$	383,670
Baa/BBB ratings		656		15,006		—		—		9		15,671
Total	$	360,026	$	28,110	$	2,696	$	8,500	$	9	$	399,341

Net realized gains in the quarter ended March 31, 2025 were immaterial. Net realized losses in the quarter ended March 31, 2024 were $0.2 million resulting from the sale of fixed maturity securities classified as available-for-sale.

During the three months ended March 31, 2025, we recognized through income $3.2 million of net unrealized losses on equity securities compared to $4.8 million of net unrealized gains on equity securities for the same period in 2024.

Investment income is recognized as it is earned. The discount or premium on fixed maturity securities is amortized using the “constant yield” method. Anticipated prepayments, where applicable, are considered when determining the amortization of premiums or discounts. Realized investment gains and losses are determined using the specific identification method.

The Company invests in Exchange Traded Funds with the objective of diversifying portfolio holdings.