
	March 31, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(in thousands)
Fixed maturities:
U.S. Treasury securities and obligations of U.S. government agencies	$	14,544	$	—	$	(560)	$	13,984
Obligations of states, municipalities and political subdivisions	222,054		2,611		(6,906)		217,759
Corporate and other securities	557,822		2,312		(31,048)		529,086
Asset-backed securities	275,052		789		(2,183)		273,658
Residential mortgage-backed securities	381,691		332		(23,988)		358,035
Commercial mortgage-backed securities	70,629		126		(1,862)		68,893
Total fixed-maturity investments	$	1,521,792	$	6,170	$	(66,547)	$	1,461,415


	December 31, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(in thousands)
Fixed maturities:
U.S. Treasury securities and obligations of U.S. government agencies	$	6,936	$	—	$	(89)	$	6,847
Obligations of states, municipalities and political subdivisions	216,375		12,139		(469)		228,045
Corporate and other securities	450,594		11,714		(3,821)		458,487
Asset-backed securities	299,810		2,217		(252)		301,775
Residential mortgage-backed securities	340,804		1,804		(4,923)		337,685
Commercial mortgage-backed securities	57,000		2,433		(206)		59,227
Total fixed-maturity investments	$	1,371,519	$	30,307	$	(9,760)	$	1,392,066

The Company regularly reviews all its available-for-sale investments with unrealized losses to assess whether the decline in the fair value is deemed to be a credit loss. The Company considers a number of factors in completing its review of credit losses, including the extent to which a security's fair value has been below cost and the financial condition of an issuer. In addition to specific issuer information, the Company also evaluates the current market and interest rate environment. Generally, a decline in a security’s value caused by a change in the market or interest rate environment does not constitute a credit loss.

For fixed-maturity securities, the Company also considers whether it intends to sell the security or, if it is more likely than not that it will be required to sell the security before recovery, and its ability to recover all amounts outstanding when contractually due. When assessing whether it intends to sell a fixed-maturity security or, if it is

likely to be required to sell a fixed-maturity security before recovery of its amortized cost, the Company evaluates facts and circumstances including, but not limited to, decisions to reposition the investment portfolio, potential sales of investments to meet cash flow needs and potential sales of investments to capitalize on favorable pricing.

For fixed-maturity securities where a decline in fair value is below the amortized cost basis and the Company intends to sell the security, or it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost, an impairment is recognized in net income based on the fair value of the security at the time of assessment. For fixed-maturity securities that the Company does not intend to sell or for which it is more likely than not that the Company would not be required to sell before recovery of its amortized cost, the Company compares the estimated present value of the cash flows expected to be collected to the amortized cost of the security. The extent to which the estimated present value of the cash flows expected to be collected is less than the amortized cost of the security represents the credit-related portion of the impairment, which is recognized in net income through an allowance for credit losses. Any remaining decline in fair value represents the noncredit portion of the impairment, which is recognized in other comprehensive income.

The Company reports investment income due and accrued separately from available-for-sale investments and has elected not to measure an allowance for credit losses for investment income due and accrued. Investment income due and accrued is written off through earnings at the time the issuer of the bond defaults or is expected to default on payments.


	March 31, 2022
	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 maturities:
U.S. Treasury securities and obligations of the U.S. government agencies	$	13,984	$	(560)	$	—	$	—	$	13,984	$	(560)
Obligations of states, municipalities and political subdivisions	87,590		(6,590)		1,709		(316)		89,299		(6,906)
Corporate and other securities	414,688		(28,493)		16,100		(2,555)		430,788		(31,048)
Asset-backed securities	207,664		(2,088)		5,788		(95)		213,452		(2,183)
Residential mortgage-backed securities	284,332		(17,784)		58,926		(6,204)		343,258		(23,988)
Commercial mortgage-backed securities	60,731		(1,697)		1,672		(165)		62,403		(1,862)
Total fixed-maturity investments	$	1,068,989	$	(57,212)	$	84,195	$	(9,335)	$	1,153,184	$	(66,547)

At March 31, 2022, the Company held 600 fixed-maturity securities in an unrealized loss position with a total estimated fair value of $1.2 billion and gross unrealized losses of $66.5 million. Of these securities, 35 were in a continuous unrealized loss position for greater than one year. As discussed above, the Company regularly reviews all fixed-maturity securities within its investment portfolio to determine whether a credit loss has occurred. Based on the Company's review as of March 31, 2022, unrealized losses were caused by interest rate changes or other market factors and were not credit-specific issues. At March 31, 2022, 80.8% of the Company’s fixed-maturity securities

were rated "A-" or better and all of the Company’s fixed-maturity securities made expected coupon payments under the contractual terms of the securities. For the three months ended March 31, 2022, the Company concluded that there were no credit losses from fixed-maturity securities with unrealized losses.


	December 31, 2021
	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 maturities:
U.S. Treasury securities and obligations of U.S. government agencies	$	6,847	$	(89)	$	—	$	—	$	6,847	$	(89)
Obligations of states, municipalities and political subdivisions	23,870		(469)		—		—		23,870		(469)
Corporate and other securities	188,522		(3,718)		1,092		(103)		189,614		(3,821)
Asset-backed securities	136,669		(204)		4,452		(48)		141,121		(252)
Residential mortgage-backed securities	260,251		(4,329)		17,968		(594)		278,219		(4,923)
Commercial mortgage-backed securities	10,773		(206)		—		—		10,773		(206)
Total fixed-maturity investments	$	626,932	$	(9,015)	$	23,512	$	(745)	$	650,444	$	(9,760)


	March 31, 2022
	Amortized		Estimated
	Cost		Fair Value
	(in thousands)
Due in one year or less	$	7,749	$	7,766
Due after one year through five years	258,045		251,927
Due after five years through ten years	244,902		233,059
Due after ten years	283,724		268,077
Asset-backed securities	275,052		273,658
Residential mortgage-backed securities	381,691		358,035
Commercial mortgage-backed securities	70,629		68,893
Total fixed-maturity securities	$	1,521,792	$	1,461,415

Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties, and the lenders may have the right to put the securities back to the borrower.


	Three Months Ended March 31,
		2022		2021
		(in thousands)
Interest:
Taxable bonds		$	7,795	$	5,729
Tax exempt municipal bonds		857		885
Cash equivalents and short-term investments		19		1
Dividends on equity securities		1,030		869
Gross investment income		9,701		7,484
Investment expenses		(613)		(542)
Net investment income		$	9,088	$	6,942


	Three Months Ended March 31,
		2022		2021
		(in thousands)
Fixed-maturity securities:
Realized gains		$	842	$	1,199
Realized losses		(365)		(1)
Net realized gains from fixed-maturity securities		477		1,198

Equity securities:

Realized losses		(148)		—
Net realized losses from equity securities		(148)		—
Realized losses from the sales of short-term investments		(34)		—

Net realized investment gains		$	295	$	1,198

The Company recorded a payable for investments purchased, not yet settled, of $30.7 million and $15.0 million at March 31, 2022 and December 31, 2021, respectively. The payable balance was included in the "other liabilities" line item of the consolidated balance sheet.