The following table details fixed maturity available-for-sale securities, by major investment category, at December 31, 2025 and 2024:


	Cost or Adjusted/ Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
December 31, 2025
U.S. government and agency securities	$	91,496	$	622	$	—	$	92,118
Corporate securities		84,332		173		3,760		80,745
Mortgage-backed securities		34,299		259		3,847		30,711
States, municipalities and political subdivisions		28,155		87		1,164		27,078
Asset-backed securities		13,246		49		638		12,657
Public utilities		9,384		41		179		9,246
Foreign government		591		6		—		597
Total fixed maturities	$	261,503	$	1,237	$	9,588	$	253,152

December 31, 2024
U.S. government and agency securities	$	154,096	$	589	$	25	$	154,660
Corporate securities		68,024		6		6,495		61,535
Mortgage-backed securities		35,895		—		5,433		30,462
States, municipalities and political subdivisions		19,104		—		1,907		17,197
Asset-backed securities		12,341		1		906		11,436
Public utilities		5,651		—		367		5,284
Foreign government		436		—		9		427
Total fixed maturities	$	295,547	$	596	$	15,142	$	281,001

When we sell investments, we calculate the gain or loss realized on the sale by comparing the sales price (fair value) to the cost or adjusted/amortized cost of the security sold. We determine the cost or adjusted/amortized cost of the security sold using the specific-identification method. The following table details our realized gains (losses) by major investment category for the years ended December 31, 2025, 2024 and 2023:


	2025					2024					2023
	Gains (Losses)			Fair Value at Sale(1)		Gains (Losses)			Fair Value at Sale(1)		Gains (Losses)			Fair Value at Sale(1)
Fixed maturities	$	5		$	112,834	$	—		$	10,720	$	4		$	7,315
Equity securities		1,383			9,998		—			—		165			5,786
Short-term investments		—			35,999		—			9,000		—			126
Other investments		—			—		—			2,000		3			1,151
Total realized gains		1,388			158,831		—			21,720		172			14,378
Fixed maturities		(6	)		1,640		(124	)		443		(6,296	)		39,225
Equity securities		—			—		—			—		(665	)		10,372
Short-term investments		—			—		—			4,999		—			—
Total realized losses		(6	)		1,640		(124	)		5,442		(6,961	)		49,597
Net realized investment gains (losses)	$	1,382		$	160,471	$	(124	)	$	27,162	$	(6,789	)	$	63,975

(1) Fair Value at Sale includes maturities and paydowns executed at par value.

The table below summarizes our fixed maturities at December 31, 2025, by contractual maturity periods. Actual results may differ as issuers may have the right to call or prepay obligations, with or without penalties, prior to the contractual maturities of those obligations.


	December 31, 2025
	Cost or Amortized Cost		Percent of Total			Fair Value		Percent of Total
Due in one year or less	$	48,500		18.5	%	$	48,585		19.2	%
Due after one year through five years		144,763		55.4			142,669		56.4
Due after five years through ten years		17,441		6.7			15,729		6.2
Due after ten years		3,254		1.2			2,801		1.1
Asset and mortgage-backed securities		47,545		18.2			43,368		17.1
Total	$	261,503		100.0	%	$	253,152		100.0	%

The following table summarizes our net investment income by major investment category:


	Year Ended December 31,
	2025			2024			2023
Fixed maturities	$	9,624		$	7,132		$	3,061
Equity securities		902			386			80
Other investments		1,795			918			(68	)
Cash and cash equivalents		10,219			12,624			5,411
Investment income		22,540			21,060			8,484
Investment expenses		(334	)		(265	)		(184	)
Net investment income	$	22,206		$	20,795		$	8,300

We have a quarterly portfolio monitoring process to identify and evaluate each fixed-income security whose carrying value may be impaired as the result of a credit loss. For each fixed-income security in an unrealized loss position, if we determine that we intend to sell the security or that it is more likely than not that we will be required to sell the security before recovery of the cost or amortized cost basis for reasons such as liquidity needs or contractual or regulatory requirements, the security's entire decline in fair value is recorded in earnings.

If our management decides not to sell the fixed-income security and it is more likely than not that we will not be required to sell the fixed-income security before recovery of its amortized cost basis, we evaluate whether the decline in fair value has resulted from credit losses or other factors. This is typically indicated by a change in the rating of the security assigned by a rating agency, and any adverse conditions specifically related to the security or industry, among other factors. If the assessment indicates that a credit loss may exist, the present value of cash flows expected to be collected from the security is compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses will be recorded in earnings. Credit loss is limited to the difference between a security's amortized cost basis and its fair value. Any additional impairment not recorded through an allowance for credit losses is recognized in other comprehensive income (loss).

During the years ended December 31, 2025 and 2024, we determined that none of our fixed-income securities shown in the table below that are in an unrealized loss position have declines in fair value that result from credit losses. Therefore, no credit loss allowance was recorded at December 31, 2025 and 2024. The issuers of our debt security investments continue to make interest payments on a timely basis. We do not intend to sell, nor is it likely that we would be required to sell the debt securities before we recover our amortized cost basis. Equity securities are reported at fair value with changes in fair value recognized in the valuation of equity investments.

The following table presents aging of our unrealized investment losses by investment class:


	Less Than Twelve Months						Twelve Months or More
	Number of Securities(1)		Gross Unrealized Losses		Fair Value		Number of Securities(1)		Gross Unrealized Losses		Fair Value
December 31, 2025
U.S. government and agency securities		—	$	—	$	—		—	$	—	$	—
Corporate securities		27		57		11,165		78		3,703		46,381
Mortgage-backed securities		2		5		263		54		3,842		26,094
States, municipalities and political subdivisions		13		24		4,528		24		1,140		14,992
Asset-backed securities		3		2		591		21		636		6,715
Public utilities		4		5		1,772		6		174		3,472
Foreign governments		—		—		—		—		—		—
Total fixed maturities		49	$	93	$	18,319		183	$	9,495	$	97,654

December 31, 2024
U.S. government and agency securities		2	$	25	$	5,878		—	$	—	$	—
Corporate securities		42		300		14,559		80		6,195		45,702
Mortgage-backed securities		4		26		1,244		61		5,407		29,218
States, municipalities and political subdivisions		4		25		1,330		27		1,882		15,868
Asset-backed securities		6		21		2,104		22		885		7,977
Public utilities		6		37		1,937		6		330		3,347
Foreign governments		1		9		427		—		—		—
Total fixed maturities		65	$	443	$	27,479		196	$	14,699	$	102,112

(1) This amount represents the actual number of discrete securities, not the number of shares or units of those securities. The numbers are not presented in thousands.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The hierarchy for inputs used in determining fair value maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Assets and liabilities

recorded on our Consolidated Balance Sheets at fair value are categorized in the fair value hierarchy based on the observability of inputs to the valuation techniques as follows:

Level 1: Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that we can access.

Level 3: Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Unobservable inputs reflect our estimates of the assumptions that market participants would use in valuing the assets and liabilities.

We estimate the fair value of our investments using the closing prices on the last business day of the reporting period, obtained from active markets such as the NYSE, Nasdaq and NYSE American. For securities where quoted prices in active markets are unavailable, we use a third-party pricing service that utilizes quoted prices in active markets for similar instruments, benchmark interest rates, broker quotes and other relevant inputs to estimate the fair value of those securities for which quoted prices are unavailable. Our estimates of fair value reflect the interest rate environment that existed as of the close of business on December 31, 2025 and 2024. Changes in interest rates subsequent to December 31, 2025, may affect the fair value of our investments.

The fair value of our fixed maturities is initially calculated by a third-party pricing service. Valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources and, through the use of proprietary models, produce valuation information in the form of a single fair value for individual fixed income and other securities for which a fair value has been requested. The inputs used by the valuation service providers include, but are not limited to, market prices from recently completed transactions and transactions of comparable securities, interest rate yield curves, credit spreads, liquidity spreads, currency rates and other information, as applicable. Credit and liquidity spreads are typically implied from completed transactions and transactions of comparable securities. Valuation service providers also use proprietary discounted cash flow models that are widely accepted in the financial services industry and similar to those used by other market participants to value the same financial information. The valuation models take into account, among other things, market observable information as of the measurement date, as described above, as well as the specific attributes of the security being valued, including its term, interest rate, credit rating, industry sector and, where applicable, collateral quality and other issue or issuer-specific information. Executing valuation models effectively requires seasoned professional judgment and experience.

Any change in the estimated fair value of our fixed-income securities would impact the amount of unrealized gain or loss we have recorded, which could change the amount we have recorded for our investments and other comprehensive income (loss) on our Consolidated Balance Sheets as of December 31, 2025.

The following table presents the fair value of our financial instruments measured on a recurring basis by level at December 31, 2025 and 2024:


	Total		Level 1		Level 2		Level 3
December 31, 2025
U.S. government and agency securities	$	92,118	$	—	$	92,118	$	—
Corporate securities		80,745		—		80,745		—
Mortgage-backed securities		30,711		—		30,711		—
States, municipalities and political subdivisions		27,078		—		27,078		—
Asset-backed securities		12,657		—		12,657		—
Public utilities		9,246		—		9,246		—
Foreign government		597		—		597		—
Total fixed maturities		253,152		—		253,152		—
Mutual funds		56,637		56,637		—		—
Other common stocks (1)		—		—		—		—
Total equity securities		56,637		56,637		—		—
Other investments (2)		21,096		—		21,096		—
Total investments	$	330,885	$	56,637	$	274,248	$	—

December 31, 2024
U.S. government and agency securities	$	154,660	$	—	$	154,660	$	—
Corporate securities		61,535		—		61,535		—
Mortgage-backed securities		30,462		—		30,462		—
States, municipalities and political subdivisions		17,197		—		17,197		—
Asset-backed securities		11,436		—		11,436		—
Public utilities		5,284		—		5,284		—
Foreign government		427		—		427		—
Total fixed maturities		281,001		—		281,001		—
Mutual Funds		31,818		31,818		—		—
Other common stocks (1)		—		—		—		—
Total equity securities		31,818		31,818		—		—
Other investments (2)		20,494		—		20,494		—
Total investments	$	333,313	$	31,818	$	301,495	$	—

(1) Other common stocks in the fair value hierarchy exclude these common stock interests that are measured at estimated fair value using the net asset value per share (or its equivalent) practical expedient.

(2) Other investments included in the fair value hierarchy exclude these other limited partnership interests that are measured at estimated fair value using the net asset value per share (or its equivalent) practical expedient.

Certain financial assets and financial liabilities are measured at fair value on a non-recurring basis, meaning, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). There were no financial instruments measured on a non-recurring basis at December 31, 2025 and 2024.

The carrying amounts for the following financial instrument categories approximate their fair values at December 31, 2025 and 2024, because of their short-term nature: cash and cash equivalents, accrued investment income, premiums receivable, reinsurance recoverable, reinsurance payable, other assets, and other liabilities. The carrying amount of our Senior Notes (defined below) approximates fair value, as the interest rates and terms are variable.

We are responsible for the determination of fair value and the supporting assumptions and methodologies. We have implemented a system of processes and controls designed to provide assurance that our assets and liabilities are appropriately valued. For fair values received from third parties, our processes are designed to provide assurance that the valuation methodologies and inputs are appropriate and consistently applied, the assumptions are reasonable and consistent with the objective of determining fair value, and the fair values are accurately recorded.

At the end of each quarter, we determine whether we need to transfer the fair values of any securities between levels of the fair value hierarchy and, if so, we report the transfer as of the end of the quarter. During 2025 and 2024, we transferred no investments between levels.

For our investments in U.S. government securities that do not have prices in active markets, agency securities, state and municipal governments and corporate bonds, we obtain the fair values from our investment custodians, which use a third-party valuation service. The valuation service calculates prices for our investments in the aforementioned security types on a month-end basis by using several matrix-pricing methodologies that incorporate inputs from various sources. The model the valuation service uses to price U.S. government securities and securities of states and municipalities incorporates inputs from active market makers and inter-dealer brokers. To price corporate bonds and agency securities, the valuation service calculates non-call yield spreads on all issuers, uses option-adjusted yield spreads to account for any early redemption features, and adds final spreads to the U.S. Treasury curve at 3 p.m. (ET) as of quarter end. Since the inputs the valuation service uses in its calculations are not quoted prices in active markets, but are observable inputs, they represent Level 2 inputs.

We acquired investments in limited partnerships, recorded in the other investments line of our Consolidated Balance Sheets, and these investments are currently being accounted for at fair value utilizing a net asset value per share practical expedient. The Company has also acquired an investment in a commercial mortgage loan, which is classified as held-for-long-term-investment and a surplus note, which is classified as held-to-maturity. Both of these investments are carried on the balance sheet at amortized cost.

The information presented in the table below is as of December 31, 2025 and 2024:


	Book Value		Unrealized Gain		Unrealized Loss		Fair Value
December 31, 2025
Limited partnership investments (1)	$	5,024	$	1,093	$	—	$	6,117
Surplus note (1)		6,000		—		—		6,000
Commercial mortgage loans		6,840		—		—		6,840
Short-term investments		21,090		13		7		21,096
Total other investments	$	38,954	$	1,106	$	7	$	40,053

December 31, 2024
Limited partnership investments (1)	$	2,556	$	573	$	—	$	3,129
Short-term investments		20,413		81		—		20,494
Total other investments	$	22,969	$	654	$	—	$	23,623

(1) Distributions will be generated from investment gains, from operating income, from underlying investments of the funds and from liquidation of the underlying assets of the funds. We estimate that the underlying assets of the funds will be liquidated over the next few months to five years.

During the second quarter of 2025, the Company invested $6 million in a surplus note, as seen in the table above. As a term of this investment, the Company was issued 18,497 warrants to purchase common stock of the issuer of the surplus note for no additional consideration. These warrants are free-standing in nature and are not being used as a hedging instrument. The Company does not invest in derivatives as part of its investment strategy and is only a holder of these warrants as a product of its strategy to invest in this surplus note.

As the underlying common stock of the warrants is not publicly traded and the issuer of the warrants has been in operation for less than one year, the fair value to these warrants is not material as of December 31, 2025. For the year ended December 31 2025, these warrants had no impact on the Company's financial position, financial performance or cash flows.

We are required to maintain assets on deposit with various regulatory authorities to support our insurance operations. The cash on deposit with state regulators is available to settle insurance liabilities. We also use trust funds in certain reinsurance transactions.