Investments

9 Months Ended

Sep. 30, 2025

Investments, Debt and Equity Securities [Abstract]

Investments

Investments

The following table summarizes the amortized cost and fair value of the Company’s fixed maturity securities, all of which are classified as available for sale:

			Gross Unrealized
As of September 30, 2025	Amortized Cost		Gains		Losses		Fair Value
	($ in thousands)
Fixed maturity securities
U.S. government and government agency	$	91,085	$	219	$	(2)	$	91,302
State and municipal	111,716		1,090		(3,354)		109,452
Commercial mortgage-backed securities	126,550		1,742		(697)		127,595
Residential mortgage-backed securities	281,444		3,489		(3,658)		281,275
Asset-backed securities	119,317		916		(220)		120,013
Corporate	413,482		7,234		(755)		419,961
Total	$	1,143,594	$	14,690	$	(8,686)	$	1,149,598

			Gross Unrealized
As of December 31, 2024	Amortized Cost		Gains		Losses		Fair Value
	($ in thousands)
Fixed maturity securities
U.S. government and government agency	$	204,205	$	315	$	(108)	$	204,412
State and municipal	73,289		—		(5,505)		67,784
Commercial mortgage-backed securities	83,029		349		(940)		82,438
Residential mortgage-backed securities	197,589		649		(6,135)		192,103
Asset-backed securities	121,155		259		(837)		120,577
Corporate	214,878		238		(2,441)		212,675
Total	$	894,145	$	1,810	(15,966)		$	879,989

a)Contractual Maturity of Fixed Maturity Securities

The amortized cost and fair value of fixed maturity securities at September 30, 2025 and December 31, 2024, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because certain issuers may have the right to call or prepay obligations.

As of September 30, 2025	Amortized Cost		Fair Value
	($ in thousands)
Fixed maturity securities
Due in one year or less	$	114,873	$	114,942
Due after one year through five years	323,054		326,546
Due after five years through ten years	108,305		109,391
Due after ten years	70,051		69,836
	616,283		620,715
Commercial mortgage-backed securities	126,550		127,595
Residential mortgage-backed securities	281,444		281,275
Asset-backed securities	119,317		120,013
Total	$	1,143,594	$	1,149,598

As of December 31, 2024	Amortized Cost		Fair Value
	($ in thousands)
Fixed maturity securities
Due in one year or less	$	206,764	$	206,721
Due after one year through five years	208,179		205,012
Due after five years through ten years	45,230		43,199
Due after ten years	32,199		29,939
	492,372		484,871
Commercial mortgage-backed securities	83,029		82,438
Residential mortgage-backed securities	197,589		192,103
Asset-backed securities	121,155		120,577
Total	$	894,145	$	879,989

b)Net Investment Income

The components of net investment income were derived from the following sources:

	Three Months Ended September 30,
	2025		2024
	($ in thousands)
U.S. government and government agency	$	1,562	$	3,793
State and municipal	1,058		467
Commercial mortgage-backed securities	1,417		761
Residential mortgage-backed securities	3,489		1,955
Asset-backed securities	1,673		719
Corporate	4,716		1,611
Short-term investments	—		134
Cash and cash equivalents	1,421		2,273
Gross investment income	15,336		11,713
Investment expenses	(298)		(222)
Net investment income	$	15,038	$	11,491

	Nine Months Ended September 30,
	2025		2024
	($ in thousands)
U.S. government and government agency	$	5,040	$	11,316
State and municipal	2,621		1,241
Commercial mortgage-backed securities	3,864		1,603
Residential mortgage-backed securities	9,157		4,118
Asset-backed securities	4,725		1,760
Corporate	12,212		3,614
Short-term investments	214		350
Cash and cash equivalents	4,280		4,493
Gross investment income	42,113		28,495
Investment expenses	(839)		(567)
Net investment income	$	41,274	$	27,928

c)Net Realized Investment Losses

There were $15.0 thousand and $30.2 thousand of net realized investment losses for the three and nine months ended September 30, 2025, respectively, and $18.1 thousand and $16.2 thousand of net realized investment losses for the three and nine months ended September 30, 2024, respectively, from the sale of investments.

d)Restricted Assets

The Company is required to maintain assets as collateral in trust accounts to support the obligations of the AmFam Quota Share Agreement. The assets held in trust include fixed maturity securities, short-term investments and restricted cash and cash equivalents. The Company is entitled to interest income earned on these restricted assets, which is included in net investment income in the Condensed Consolidated Statements of Income and Comprehensive Income.

The following table summarizes the value of the Company’s restricted assets disclosed in the Condensed Consolidated Balance Sheets:

As of	September 30, 2025		December 31, 2024
	($ in thousands)
U.S. government and government agency	$	60,228	$	97,130
State and municipal	64,075		33,842
Commercial mortgage-backed securities	91,431		50,504
Residential mortgage-backed securities	193,882		115,323
Asset-backed securities	70,530		63,197
Corporate	280,300		124,836
Restricted fixed maturity securities	760,446		484,832
Restricted short-term investments	—		9,997
Restricted cash and cash equivalents	52,921		124,582
Restricted assets	$	813,367	$	619,411

e)Gross Unrealized Losses

The following table summarizes available for sale securities in an unrealized loss position, the fair value and gross unrealized loss by length of time the security has been in a continual unrealized loss position:

	Less than 12 Months				12 Months or Greater				Total
As of September 30, 2025	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
	($ in thousands)
Fixed maturity securities
U.S. government and government agency	$	10,005	$	(2)	$	—	$	—	$	10,005	$	(2)
State and municipal	10,649		(105)		45,976		(3,249)		56,625		(3,354)
Commercial mortgage-backed securities	17,318		(100)		7,095		(597)		24,413		(697)
Residential mortgage-backed securities	42,296		(154)		30,563		(3,504)		72,859		(3,658)
Asset-backed securities	6,943		(45)		7,356		(175)		14,299		(220)
Corporate	5,246		(3)		25,577		(752)		30,823		(755)
Total	$	92,457	$	(409)	$	116,567	$	(8,277)	$	209,024	$	(8,686)

	Less than 12 Months				12 Months or Greater				Total
As of December 31, 2024	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
	($ in thousands)
Fixed maturity securities
U.S. government and government agency	$	55,237	$	(108)	$	—	$	—	$	55,237	$	(108)
State and municipal	22,011		(566)		45,773		(4,939)		67,784		(5,505)
Commercial mortgage-backed securities	16,579		(112)		13,087		(828)		29,666		(940)
Residential mortgage-backed securities	100,817		(1,244)		29,879		(4,891)		130,696		(6,135)
Asset-backed securities	42,543		(472)		9,420		(365)		51,963		(837)
Corporate	118,237		(811)		43,125		(1,630)		161,362		(2,441)
Total	$	355,424	$	(3,313)	$	141,284	$	(12,653)	$	496,708	$	(15,966)

All of the securities in an unrealized loss position are rated investment grade. For fixed maturity securities that management does not intend to sell or are required to sell, there is no portion of the decline in value that is considered to be due to credit factors that would be recognized in earnings. Declines in value are considered to be due to non-credit factors and are recognized in Other Comprehensive Income.

The Company has evaluated its fixed maturity securities in an unrealized loss position and concluded that the unrealized losses are due primarily to temporary market and sector-related factors rather than to issuer-specific factors. None of these securities are delinquent or in default under financial covenants. Based on the assessment of these issuers, the Company expects them to continue to meet their contractual payment obligations as they become due.