INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2022

Investments, Debt and Equity Securities [Abstract]

The amortized cost and fair value of short-term investments and available-for-sale fixed maturity securities at December 31, 2022 and 2021 are as follows:



	2022
	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(dollars in millions)
Fixed maturities:
U.S. Treasury securities and agencies	$	11.3	$	—	$	—	$	(0.3)	$	11.0
Municipal securities	21.4		—		—		(1.2)		20.2
Corporate debt securities	60.5		—		—		(2.7)		57.8
Residential mortgage-backed securities	5.5		—		—		(0.3)		5.2
Commercial mortgage-backed securities	24.4		—		—		(1.2)		23.2
Other debt obligations	11.1		—		0.1		(0.2)		11.0
Total fixed maturities	134.2		—		0.1		(5.9)		128.4
Short-term investments	0.4		—		—		—		0.4
Total	$	134.6	$	—	$	0.1	$	(5.9)	$	128.8


	2021
	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(dollars in millions)
Fixed maturities:
U.S. Treasury securities and agencies	$	23.7	$	—	$	—	$	(0.4)	$	23.3
Municipal securities	20.4		—		0.3		(0.1)		20.6
Corporate debt securities	48.2		—		0.7		(0.2)		48.7
Residential mortgage-backed securities	3.5		—		—		—		3.5
Commercial mortgage-backed securities	30.2		—		0.2		(0.1)		30.3
Other debt obligations	3.5		—		—		—		3.5


Total	$	129.5	$	—	$	1.2	$	(0.8)	$	129.9

The following table reflects the gross and net realized gains and losses on short-term investments, available-for-sale fixed maturities and other investments that have been included in the consolidated statements of operations and comprehensive loss for the years ended December 31, 2022, 2021 and 2020:


	2022		2021		2020
	(dollars in millions)
Realized gains on investments	$	1.2	$	2.5	$	0.5
Realized losses on investments	(0.7)		(0.1)		(0.2)
Net realized gains on investments	$	0.5	$	2.4	$	0.3

The following table sets forth the amortized cost and fair value of short-term investments and available-for-sale fixed maturity securities by contractual maturity at December 31, 2022:


	2022
	Amortized Cost		Fair Value
	(dollars in millions)
Due in one year or less	$	27.1	$	26.7
Due after one year through five years	80.2		76.2
Due five years through 10 years	15.4		14.6
Due after 10 years	11.9		11.3
Total	$	134.6	$	128.8

Schedule of unrealized losses

The following tables reflect the gross unrealized losses and fair value of short-term investments and available-for-sale fixed maturity securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2022 and 2021:


	2022
	Less than 12 Months						12 Months or More				Total
	Fair Value				Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
	(dollars in millions)
Fixed maturities:
U.S. Treasury securities and agencies	$	6.9			$	(0.1)	$	4.1	$	(0.2)	$	11.0	$	(0.3)
Municipal securities	11.5				(0.5)		8.2		(0.7)		19.7		(1.2)
Corporate debt securities	45.3				(1.6)		11.5		(1.1)		56.8		(2.7)
Residential mortgage-backed securities	2.2				—		1.9		(0.3)		4.1		(0.3)
Commercial mortgage-backed securities	18.3				(0.8)		4.6		(0.4)		22.9		(1.2)
Other debt obligations	6.8				(0.2)		—		—		6.8		(0.2)
Total fixed maturities	91.0				(3.2)		30.3		(2.7)		121.3		(5.9)
Short-term investments	0.1				—		—		—		0.1		—
Total	$	91.1			$	(3.2)	$	30.3	$	(2.7)	$	121.4	$	(5.9)

	2021
	Less than 12 Months						12 Months or More				Total
	Fair Value				Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
	(dollars in millions)
Fixed maturities:
U.S. Treasury securities and agencies	$	7.5	$	—	$	(0.1)	$	14.0	$	(0.3)	$	21.5	$	(0.4)
Municipal securities	8.9				(0.1)		—		—		8.9		(0.1)
Corporate debt securities	12.7				(0.1)		1.6		(0.1)		14.3		(0.2)
Residential mortgage-backed securities	1.9				—		0.5		—		2.4		—
Commercial mortgage-backed securities	8.7				(0.1)		—		—		8.7		(0.1)

Total	$	39.7			$	(0.4)	$	16.1	$	(0.4)	$	55.8	$	(0.8)

Schedule of net investment income

The following table sets forth the components of net investment income for the years ended December 31, 2022, 2021 and 2020:


	2022		2021		2020
	(dollars in millions)
Interest on bonds	$	2.4	$	2.4	$	4.2
Interest on deposits and cash equivalents	5.7		1.1		1.7
Other investments(1)	—		3.8		—
Total	8.1		7.3		5.9
Investment expense	(1.9)		(2.3)		(0.5)
Net investment income	$	6.2	$	5.0	$	5.4

______________

(1) Unrealized gains resulting from observable price changes related to our private equity investments.

Schedule of credit ratings

The following tables summarize the credit ratings of short-term investments and available-for-sale fixed maturity securities at December 31, 2022 and 2021:


	December 31, 2022
	Amortized Cost		Fair Value		% of Total Fair Value
S&P Global rating or equivalent	(dollars in millions)
AAA	$	62.5	$	59.9	46.5	%
AA+, AA, AA-, A-1	19.9		19.1		14.8
A+, A, A-	38.4		36.5		28.3
BBB+, BBB, BBB-	13.8		13.3		10.4
Total	$	134.6	$	128.8	100.0	%



	December 31, 2021
	Amortized Cost		Fair Value		% of Total Fair Value
S&P Global rating or equivalent	(dollars in millions)
AAA	$	70.9	$	70.8	54.5	%
AA+, AA, AA-, A-1	14.7		14.8		11.4
A+, A, A-	33.4		33.6		25.9
BBB+, BBB, BBB-	10.5		10.7		8.2
Total	$	129.5	$	129.9	100.0	%

- Definition

Tabular disclosure of all significant concentrations of risk, including credit risk and market risk, arising from all financial instruments (as defined), whether from an individual counterparty or groups of counterparties. The disclosure concerning concentrations of risk may consist of the following information: (1) for concentrations of credit risk disclosure may include: (a) information about the (shared) activity, region, or economic characteristic that identifies the concentration, (b) the maximum amount of loss due to credit risk that, based on the gross fair value of the financial instrument, the entity would incur if parties to the financial instruments that make up the concentration failed completely to perform according to the terms of the contracts and the collateral or other security, if any, for the amount due proved to be of no value to the entity, (c) the policy of requiring collateral or other security to support financial instruments subject to credit risk, information about the entity's access to that collateral or other security, and the nature and a brief description of the collateral or other security supporting those financial instruments, and (d) the policy of entering into master netting arrangements to mitigate the credit risk of financial instruments, information about the arrangements for which the entity is a party, and a brief description of the terms of those arrangements, including the extent to which they would reduce the entity's maximum amount of loss due to credit risk and (2) for disclosure of quantitative information about the market risks of financial instruments that is consistent with the way the company manages or adjusts those risks, disclosure may include: (a) more details about current positions and perhaps activity during the period, (b) the hypothetical effects on comprehensive income (or net assets), or annual income, of several possible changes in market prices, (c) a gap analysis of interest rate re-pricing or maturity dates, (d) the duration of the financial instruments, (e) the entity's value at risk from derivatives and from other positions at the end of the reporting period and the average value at risk during the year, or (f) other ways of reporting quantitative information as internally developed.

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