Note 3 - Investments

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

3. Investments

The Company’s available-for-sale investments are summarized as follows:

December 31, 2023	Amortized Cost or Cost		​Gross Unrealized Gains		​Gross Unrealized Losses			Allowance for Credit Losses			Fair Value
	(in thousands)
Fixed maturities:
U.S. Government	$	40,836	$	—	$	(1,416	)	$	—		$	39,420
U.S. States, Territories, and Political Subdivisions		10,641		100		(839	)		—			9,902
Special revenue excluding mortgage/asset-backed securities		32,513		147		(3,149	)		—			29,511
Corporate and other		316,590		1,750		(17,197	)		(904	)		300,239
Mortgage/asset-backed securities		274,550		1,879		(11,702	)		—			264,727
Total available-for-sale investments	$	675,130	$	3,876	$	(34,303	)	$	(904	)	$	643,799

December 31, 2022	Amortized Cost or Cost		​Gross Unrealized Gains		​Gross Unrealized Losses			Allowance for Credit Losses			Fair Value
	(in thousands)
Fixed maturities:
U.S. Government	$	50,802	$	2	$	(2,253	)	$	—		$	48,551
U.S. States, Territories, and Political Subdivisions		10,776		49		(1,173	)		—			9,652
Special revenue excluding mortgage/asset-backed securities		37,260		26		(4,487	)		—			32,799
Corporate and other		278,164		79		(23,912	)		(236	)		254,095
Mortgage/asset-backed securities		184,578		251		(14,862	)		—			169,967
Total available-for-sale investments	$	561,580	$	407	$	(46,687	)	$	(236	)	$	515,064

Security holdings in an unrealized loss position

As of December 31, 2023, the Company held 483 fixed maturity securities in an unrealized loss position with a total estimated fair value of $451.0 million and total gross unrealized losses of $34.3 million. As of December 31, 2022, the Company held 543 fixed maturity securities in an unrealized loss position with a total estimated fair value of $484.7 million and total gross unrealized losses of $46.9 million.

The aggregate fair value and gross unrealized losses of the Company’s investments aggregated by investment category and the length of time these individual securities have been in a continuous unrealized loss position as of December 31, 2023 and 2022, are as follows:

	Less Than 12 Months					More Than 12 Months					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
December 31, 2023	Value		Losses			Value		Losses			Value		Losses
	(in thousands)
Fixed maturity securities:
U.S. Government	$	738	$	(1	)	$	38,063	$	(1,415	)	$	38,801	$	(1,416	)
U.S. States, Territories, and Political Subdivisions		—		—			6,196		(839	)		6,196		(839	)
Special revenue excluding mortgage/asset-backed securities		—		—			26,736		(3,149	)		26,736		(3,149	)
Corporate and other		28,872		(480	)		204,034		(16,717	)		232,906		(17,197	)
Mortgage/asset-backed securities		29,334		(245	)		117,016		(11,457	)		146,350		(11,702	)
Total	$	58,944	$	(726	)	$	392,045	$	(33,577	)	$	450,989	$	(34,303	)

	Less Than 12 Months					More Than 12 Months					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
December 31, 2022	Value		Losses			Value		Losses			Value		Losses
	(in thousands)
Fixed maturity securities:
U.S. Government	$	41,077	$	(1,523	)	$	6,853	$	(730	)	$	47,930	$	(2,253	)
U.S. States, Territories, and Political Subdivisions		7,525		(1,173	)		—		—			7,525		(1,173	)
Special revenue excluding mortgage/asset-backed securities		25,091		(3,287	)		5,080		(1,200	)		30,171		(4,487	)
Corporate and other		192,185		(15,667	)		55,605		(8,481	)		247,790		(24,148	)
Mortgage/asset-backed securities		118,815		(9,908	)		32,448		(4,954	)		151,263		(14,862	)
Total	$	384,693	$	(31,558	)	$	99,986	$	(15,365	)	$	484,679	$	(46,923	)

The Company reviewed the above securities at each balance sheet date to consider whether it was necessary to recognize a credit loss related to any of these securities. An allowance for credit losses of $0.9 million and $0.2 million was recorded pertaining to one investment security as of December 31, 2023 and 2022, respectively. For the remaining securities, the Company determined that the fixed maturity securities’ unrealized losses were primarily the result of the interest rate environment and not the credit quality of the issuers. The Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before the recovery of their amortized cost basis.

Contractual maturities of available-for-sale fixed maturity securities

The amortized cost and fair value of fixed maturity securities at December 31, 2023, by contractual maturity, are shown below.

	Amortized		Fair
	Cost		Value
	(in thousands)
Due within one year	$	46,366	$	45,221
Due after one year through five years		188,698		180,645
Due after five years through ten years		127,925		118,748
Due after ten years		37,591		34,458
Mortgage and asset-backed securities		274,550		264,727
	$	675,130	$	643,799

Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations.

Change in unrealized gains (losses) of investments

The following table presents the change in available-for-sale gross unrealized gains or losses by investment type:

	Year Ended December 31,
	2023		2022			2021
	(in thousands)
Change in net unrealized gains (losses)
Fixed maturities	$	15,185	$	(53,076	)	$	(10,148	)
Net increase (decrease)	$	15,185	$	(53,076	)	$	(10,148	)

Net investment income summary

Net investment income is summarized as follows:

	Year Ended December 31,
	2023			2022			2021
	(in thousands)
Interest income	$	23,349		$	13,631		$	9,119
Dividend income		871			739			461
Investment expense		(515	)		(493	)		(500	)
Net investment income	$	23,705		$	13,877		$	9,080

Net realized and unrealized investment gains and losses

The following table presents net realized and unrealized investment gains and losses:

	Year Ended
	December 31,
	2023			2022			2021
	(in thousands)
Realized gains:
Gains on sales of fixed maturity securities	$	89		$	14		$	466
Gains on sales of equity securities		—			—			1,416
Total realized gains		89			14			1,882
Realized losses:
Losses on sales of fixed maturity securities		(32	)		(2,340	)		(1	)
Losses on sales of equity securities		—			—			—
Total realized losses		(32	)		(2,340	)		(1	)
Net realized investment gains (losses)		57			(2,326	)		1,881
Change in allowance for credit losses		(667	)		—			—
Net unrealized gains (losses) on equity securities		3,933			(5,203	)		(604	)
Net unrealized losses on equity method investment		(382	)		—			—
Net realized and unrealized gains (losses) on investments	$	2,941		$	(7,529	)	$	1,277

Proceeds from the sale of fixed maturity securities were $10.1 million, $19.7 million and $17.4 million for the years ended December 31, 2023, 2022 and 2021, respectively.

The Company places securities on statutory deposit with certain state agencies to retain the right to do business in those states. These securities are included in available-for-sale investments on the consolidated balance sheets. At December 31, 2023 and 2022, the carrying value of securities on deposit with state regulatory authorities was $8.6 million and $8.5 million, respectively.