
	Three Months Ended March 31,
	2026		2025
Investment income, net of investment expenses	$	3,358	$	2,838
Realized gains on investments	85		74
Realized losses on investments	(45)		(102)
Investment income and realized gains and losses, net of investment expenses	$	3,398	$	2,810


		March 31, 2026
		Amortized Cost		Gross Unrealized				Fair Value
				Gains		Losses
U.S. Treasuries		$	3,489	$	10	$	—	$	3,499
Obligations of states, municipalities and political subdivisions		1,830		17		—		1,847
Corporate bonds		37,571		90		(322)		37,339
Residential and commercial mortgage-backed securities		19,157		73		(103)		19,127
Other loan-backed and structured securities		—		—		—		—
Total investment securities	(1)	$	62,047	$	190	$	(425)	$	61,812


	December 31, 2025
	Amortized Cost		Gross Unrealized				Fair Value
			Gains		Losses
U.S. Treasuries	$	13,330	$	43	$	(3)	$	13,370
Obligations of states, municipalities and political subdivisions	2,039		31		—		2,070
Corporate bonds	31,123		202		(46)		31,279
Residential and commercial mortgage-backed securities	20,812		520		(23)		21,309
Other loan-backed and structured securities	—		—		—		—
Total investment securities	$	67,304	$	796	$	(72)	$	68,028

The amortized cost and fair value of securities held by our captive reinsurance business at March 31, 2026, by contractual maturity, are shown in the following table. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


		March 31, 2026
Remaining Time to Maturity		Amortized Cost		Fair Value
Due in one year or less		$	3,077	$	3,082
Due after one year through five years		33,766		33,676
Due after five years through ten years		6,047		5,927
Due after ten years		—		—
Residential and commercial mortgage-backed securities		19,157		19,127
Other loan-backed and structured securities		—		—
Total	(1)	$	62,047	$	61,812

Securities held by our captive reinsurance business with gross unrealized loss position, aggregated by investment category and length of time the individual securities have been in a continuous loss position, are as follows:


		Less Than Twelve Months				Twelve Months or Greater				Total
As of March 31, 2026		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value
U.S. Treasuries		$	—	$	2,518	$	—	$	—	$	—	$	2,518
Obligations of states, municipalities and political subdivisions		—		—		—		—		—		—
Corporate bonds		(322)		25,369		—		—		(322)		25,369
Residential and commercial mortgage-backed securities		(103)		11,727		—		—		(103)		11,727
Other loan-backed and structured securities		—		—		—		—		—		—
Total securities	(1)	$	(425)	$	39,614	$	—	$	—	$	(425)	$	39,614

At March 31, 2026, there were 72 securities, held by our captive reinsurance business as collateral for the benefit of the Reciprocal, in an unrealized loss position. Of these securities, none had been in an unrealized loss position for 12 months or longer.


		Less Than Twelve Months				Twelve Months or Greater				Total
As of December 31, 2025		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value
U.S. Treasuries		$	(3)	$	6,954	$	—	$	—	$	(3)	$	6,954
Obligations of states, municipalities and political subdivisions		—		—		—		—		—		—
Corporate bonds		(46)		14,563		—		—		(46)		14,563
Residential and commercial mortgage-backed securities		(23)		3,425		—		—		(23)		3,425
Other loan-backed and structured securities		—		—		—		—		—		—
Total securities	(1)	$	(72)	$	24,942	$	—	$	—	$	(72)	$	24,942

The following tables summarize the amortized cost, fair value, and unrealized gains and losses of investment securities held by the Reciprocal.


	March 31, 2026
	Amortized Cost		Gross Unrealized				Fair Value
			Gains		Losses
U.S. Treasuries	$	8,656	$	14	$	(135)	$	8,535
Obligations of states, municipalities and political subdivisions	11,710		48		(366)		11,392
Corporate bonds	65,052		403		(998)		64,457
Residential and commercial mortgage-backed securities	77,946		503		(1,185)		77,264
Other loan-backed and structured securities	19,247		112		(125)		19,234
Total investment securities held by the consolidated VIE	$	182,611	$	1,080	$	(2,809)	$	180,882


	December 31, 2025
	Amortized Cost		Gross Unrealized				Fair Value
			Gains		Losses
U.S. Treasuries	$	9,695	$	40	$	(102)	$	9,633
Obligations of states, municipalities and political subdivisions	12,688		112		(406)		12,394
Corporate bonds	62,808		1,078		(777)		63,109
Residential and commercial mortgage-backed securities	77,824		1,017		(873)		77,968
Other loan-backed and structured securities	17,396		196		(54)		17,538
Total investment securities	$	180,411	$	2,443	$	(2,212)	$	180,642

The amortized cost and fair value of securities held by the Reciprocal at March 31, 2026, by contractual maturity, are shown in the following table. Actual maturities may differ from contractual maturities because borrowers may have the

right to call or prepay obligations with or without call or prepayment penalties.


	March 31, 2026
Remaining Time to Maturity	Amortized Cost		Fair Value
Due in one year or less	$	7,429	$	7,356
Due after one year through five years	40,310		39,870
Due after five years through ten years	34,623		34,232
Due after ten years	3,056		2,926
Residential and commercial mortgage-backed securities	77,946		77,264
Other loan-backed and structured securities	19,247		19,234
Total	$	182,611	$	180,882

Securities held by the Reciprocal with gross unrealized loss position, aggregated by investment category and length of time the individual securities have been in a continuous loss position, are as follows:


	Less Than Twelve Months				Twelve Months or Greater				Total
As of March 31, 2026	Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value
U.S. Treasuries	$	(4)	$	1,902	$	(131)	$	3,862	$	(135)	$	5,764
Obligations of states, municipalities and political subdivisions	(7)		51		(359)		6,981		(366)		7,032
Corporate bonds	(95)		8,098		(903)		19,898		(998)		27,996
Residential and commercial mortgage-backed securities	(64)		7,195		(1,121)		24,900		(1,185)		32,095
Other loan-backed and structured securities	(72)		5,440		(53)		2,459		(125)		7,899
Total securities held by the consolidated VIE	$	(242)	$	22,686	$	(2,567)	$	58,100	$	(2,809)	$	80,786

At March 31, 2026, there were 253 securities in an unrealized loss position held by the Reciprocal. Of these securities, 186 had been in an unrealized loss position for 12 months or longer as of March 31, 2026.


	Less Than Twelve Months				Twelve Months or Greater				Total
As of December 31, 2025	Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value
U.S. Treasuries	$	(102)	$	3,011	$	—	$	—	$	(102)	$	3,011
Obligations of states, municipalities and political subdivisions	$	(361)	$	5,250	$	(45)	$	1,127	(406)		6,377
Corporate bonds	$	(681)	$	13,179	$	(96)	$	1,300	(777)		14,479
Residential and commercial mortgage-backed securities	$	(661)	$	15,453	$	(212)	$	1,346	(873)		16,799
Other loan-backed and structured securities	$	(54)	$	1,525	$	—	$	—	(54)		1,525
Total securities held by the consolidated VIE	$	(1,859)	$	38,418	$	(353)	$	3,773	$	(2,212)	$	42,191

We believe there were no fundamental issues, such as credit losses or other factors, with respect to any of our available-for-sale securities. The unrealized losses on investments in fixed-maturity securities were caused primarily by interest rate changes. We expect that the securities will not be settled at a price less than par value of the investments. Because the declines in fair value are attributable to changes in interest rates or market conditions and not credit quality, and because

we have the ability and intent to hold our available-for-sale investments until a market price recovery or maturity, we do not consider any of our investments to have any decline in fair value due to expected credit losses at March 31, 2026.