Investments

3 Months Ended

Mar. 31, 2025

Investments [Abstract]

Investments

3. Investments

The amortized cost and estimated fair value of fixed income securities, presented on a consolidated basis as of March 31, 2025, and December 31, 2024, were as follows:

	March 31, 2025
	Cost or Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Fixed income securities:
U.S. Government and agencies	$	12,705	$	—	$	90	$	(187	)	$	12,608
Obligations of states and political subdivisions		51,038		—		80		(5,669	)		45,449
Corporate securities		129,759		—		446		(5,947	)		124,258
Residential mortgage-backed securities		75,477		—		344		(6,181	)		69,640
Commercial mortgage-backed securities		29,996		—		108		(2,750	)		27,354
Asset-backed securities		31,871		—		342		(384	)		31,829
Redeemable preferred stocks		3,736		—		—		(571	)		3,165
Total fixed income securities	$	334,582	$	—	$	1,410	$	(21,689	)	$	314,303

	December 31, 2024
	Cost or Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Fixed income securities:
U.S. Government and agencies	$	12,601	$	—	$	8	$	(335	)	$	12,274
Obligations of states and political subdivisions		48,559		—		184		(4,920	)		43,823
Corporate securities		123,585		—		206		(7,517	)		116,274
Residential mortgage-backed securities		53,714		—		44		(4,981	)		48,777
Commercial mortgage-backed securities		30,062		—		65		(2,943	)		27,184
Asset-backed securities		59,046		—		386		(3,301	)		56,131
Redeemable preferred stocks		3,737		—		—		(488	)		3,249
Total fixed income securities	$	331,304	$	—	$	893	$	(24,485	)	$	307,712

The amortized cost and estimated fair value of fixed income securities by contractual maturity, presented on a consolidated basis, are shown below. Actual maturities could differ from contractual maturities because issuers may have the right to call or prepay these securities.

	March 31, 2025
	Amortized Cost		Fair Value
Due to mature:
One year or less	$	10,970	$	10,874
After one year through five years		61,550		59,598
After five years through ten years		79,529		75,655
After ten years		41,453		36,188
Mortgage / asset-backed securities		137,344		128,823
Redeemable preferred stocks		3,736		3,165
Total fixed income securities	$	334,582	$	314,303

	December 31, 2024
	Amortized Cost		Fair Value
Due to mature:
One year or less	$	5,750	$	5,696
After one year through five years		57,986		55,882
After five years through ten years		79,544		74,070
After ten years		41,465		36,723
Mortgage / asset-backed securities		142,822		132,092
Redeemable preferred stocks		3,737		3,249
Total fixed income securities	$	331,304	$	307,712

Fixed income securities with a fair value of $4,469 at March 31, 2025, and $5,634 at December 31, 2024, were deposited with various state regulatory agencies as required by law. The Company has not pledged any assets to secure any obligations.

The investment category and duration of the Company’s gross unrealized losses on fixed income securities, presented on a consolidated basis, are shown below. Investments with unrealized losses are categorized with a duration of greater than 12 months when all positions of a security have continually been in a loss position for at least 12 months.

	March 31, 2025
	Less than 12 Months					Greater than 12 months					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Fixed income securities:
U.S. Government and agencies	$	1,321	$	(22	)	$	4,237	$	(165	)	$	5,558	$	(187	)
Obligations of states and political subdivisions		8,535		(411	)		31,964		(5,258	)		40,499		(5,669	)
Corporate securities		18,191		(218	)		77,089		(5,729	)		95,280		(5,947	)
Residential mortgage-backed securities		14,757		(188	)		32,790		(5,993	)		47,547		(6,181	)
Commercial mortgage-backed securities		2,072		(12	)		20,874		(2,738	)		22,946		(2,750	)
Asset-backed securities		3,644		(5	)		7,676		(379	)		11,320		(384	)
Redeemable preferred stocks		—		—			3,165		(571	)		3,165		(571	)
Total fixed income securities	$	48,520	$	(856	)	$	177,795	$	(20,833	)	$	226,315	$	(21,689	)

	December 31, 2024
	Less than 12 Months					Greater than 12 months					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Fixed income securities:
U.S. Government and agencies	$	5,443	$	(109	)	$	4,177	$	(226	)	$	9,620	$	(335	)
Obligations of states and political subdivisions		8,465		(143	)		29,428		(4,777	)		37,893		(4,920	)
Corporate securities		25,790		(481	)		76,364		(7,036	)		102,154		(7,517	)
Residential mortgage-backed securities		20,827		(451	)		23,159		(4,530	)		43,986		(4,981	)
Commercial mortgage-backed securities		1,409		(50	)		19,442		(2,893	)		20,851		(2,943	)
Asset-backed securities		10,926		(122	)		20,579		(3,179	)		31,505		(3,301	)
Redeemable preferred stocks		—		—			3,249		(488	)		3,249		(488	)
Total fixed income securities	$	72,860	$	(1,356	)	$	176,398	$	(23,129	)	$	249,258	$	(24,485	)

We, along with our investment advisor, frequently review our investment portfolio for declines in fair value that could be indicative of credit losses, which are recognized through an allowance account. We consider a number of factors when determining if an allowance for credit losses is necessary, including payment and default history, credit spreads, credit ratings and rating actions, and probability of default. We determine the credit loss component of fixed income investments by utilizing discounted cash flow modeling to determine the present value of the security and comparing the present value with the amortized cost of the security. We have not recognized any credit losses for fixed income securities since adoption of the credit loss standard. Therefore, there was no beginning balance, activity, or ending balance of credit losses as of and during the three months ended March 31, 2025 and 2024. See Part II, Item 8, Note 3 “Summary of Significant Accounting Policies and Basis of Presentation” section of the 2024 Annual Report for additional information.

Net investment income for continuing and discontinued operations consisted of the following:

	Three Months Ended March 31,
	2025		2024
Continuing operations:
Fixed income securities	$	3,128	$	2,872
Equity securities		208		241
Real estate		66		97
Cash and cash equivalents		369		437
Total gross investment income		3,771		3,647
Investment expenses		933		892
Net investment income – continuing operations		2,838		2,755
Net investment income – discontinued operations		—		798
Net investment income	$	2,838	$	3,553

Net investment gains for continuing and discontinued operations consisted of the following:

	Three Months Ended March 31,
	2025			2024
Continuing operations:
Gross realized gains:
Fixed income securities	$	—		$	9
Equity securities		503			190
Total gross realized gains		503			199
Gross realized losses, excluding credit impairment losses:
Fixed income securities		—			(15	)
Equity securities		(177	)		(275	)
Total gross realized losses, excluding credit impairment losses		(177	)		(290	)
Net realized gains (losses)		326			(91	)
Change in net unrealized gains on equity securities		543			1,547
Net investment gains – continuing operations		869			1,456
Net investment gains – discontinued operations		—			372
Net investment gains	$	869		$	1,828

Non-cash investment transactions were $499 and $0 for the three months ended March 31, 2025 and 2024, respectively. The activity in the current year quarter consisted of one non-cash exchange of a fixed income security.