Investments

6 Months Ended

Jun. 30, 2023

Investments, Debt and Equity Securities [Abstract]

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

INVESTMENTS

The Company invests primarily in fixed maturity securities, which totaled 86.0% of total cash and invested assets at June 30, 2024, as shown below.

Carrying Value (In thousands, except for %)	June 30, 2024				December 31, 2023
	Amount		%		Amount	%
Cash and invested assets:
Fixed maturity securities	$	1,213,403	86.0	%	1,238,981	86.7	%
Equity securities	5,336		0.4		5,282	0.4
Policy loans	73,462		5.2		75,359	5.3
Other long-term investments	92,141		6.5		82,725	5.8
Cash and cash equivalents	26,344		1.9		26,997	1.8
Total cash and invested assets	$	1,410,686	100.0	%	1,429,344	100.0	%

The following tables represent the amortized cost, gross unrealized gains and losses and fair value of fixed maturity securities as of the dates indicated.

	Amortized Cost		Gross Unrealized Gains	Gross Unrealized Losses	Fair Value
June 30, 2024
(In thousands)
Fixed maturity securities:
Available-for-sale:
U.S. Treasury securities	$	5,961	91	94	5,958
U.S. Government-sponsored enterprises	3,388		167	1	3,554
States and political subdivisions	307,734		1,184	31,690	277,228
Corporate:
Financial	272,484		1,266	34,834	238,916
Consumer	252,587		1,036	43,286	210,337
Utilities	127,169		202	23,296	104,075
Energy	79,407		9	9,602	69,814
Communications	70,884		129	10,251	60,762
All other	111,070		382	15,486	95,966
Commercial mortgage-backed	271		—	6	265
Residential mortgage-backed	106,900		5	12,486	94,419
Asset-backed	52,632		477	1,000	52,109
Total fixed maturity securities	$	1,390,487	4,948	182,032	1,213,403

	Amortized Cost		Gross Unrealized Gains	Gross Unrealized Losses	Fair Value
December 31, 2023
(In thousands)
Fixed maturity securities:
Available-for-sale:
U.S. Treasury securities	$	5,983	127	48	6,062
U.S. Government-sponsored enterprises	3,404		250	1	3,653
States and political subdivisions	314,203		2,160	29,132	287,231
Corporate:
Financial	266,485		2,066	31,255	237,296
Consumer	250,672		2,145	37,094	215,723
Utilities	123,625		615	20,253	103,987
Energy	73,808		64	8,049	65,823
Communications	74,029		309	8,892	65,446
All other	111,124		647	12,439	99,332
Commercial mortgage-backed	171		—	—	171
Residential mortgage-backed	107,174		9	10,060	97,123
Asset-backed	58,360		290	1,516	57,134
Total fixed maturity securities	$	1,389,038	8,682	158,739	1,238,981

The Company's investments in equity securities are shown below.

Fair Value (In thousands)	June 30, 2024		December 31, 2023
Equity securities:
Bond mutual funds	$	738	740
Common stock	693		665
Non-redeemable preferred stock	7		7
Non-redeemable preferred stock fund	3,898		3,870
Total equity securities	$	5,336	5,282

VALUATION OF INVESTMENTS

Available-for-sale ("AFS") fixed maturity securities are reported in the consolidated financial statements at fair value. Equity securities are measured at fair value with the change in fair value recorded through net income. The Company recognized net investment related losses of $0.1 million and $0.2 million for the three months ended June 30, 2024 and 2023, respectively. The Company recognized net investment related gains of $0.1 million for both of the six months ended June 30, 2024 and 2023.

The Company considers several factors in its review and evaluation of individual investments, using the process described in Part IV, Item 15, Note 2. Investments in the notes to the consolidated financial statements of our Form 10-K to determine whether a credit valuation loss exists. For the three and six months ended June 30, 2024 and 2023, the Company recorded no credit valuation losses on fixed maturity securities.

For fixed maturity security investments that have unrealized losses as of June 30, 2024 and December 31, 2023, the gross unrealized losses and related fair values that have been in a continuous unrealized loss position by timeframe are as follows.

June 30, 2024	Less than 12 months				Greater than 12 months			Total
(In thousands, except for # of securities)	Fair Value		Unrealized Losses	# of Securities	Fair Value	Unrealized Losses	# of Securities	Fair Value	Unrealized Losses	# of Securities
Fixed maturity securities:
Available-for-sale securities:
U.S. Treasury securities	$	667	62	3	559	32	4	1,226	94	7
U.S. Government-sponsored enterprises	—		—	—	220	1	1	220	1	1
States and political subdivisions	25,258		275	32	169,451	31,415	209	194,709	31,690	241
Corporate:
Financial	23,367		442	49	175,029	34,392	214	198,396	34,834	263
Consumer	18,537		642	40	175,453	42,644	227	193,990	43,286	267
Utilities	13,900		582	45	83,076	22,714	149	96,976	23,296	194
Energy	7,875		81	25	60,455	9,521	74	68,330	9,602	99
Communications	1,997		51	3	56,077	10,200	67	58,074	10,251	70
All Other	7,140		233	18	80,830	15,253	97	87,970	15,486	115
Commercial mortgage-backed	120		1	1	96	5	1	216	6	2
Residential mortgage-backed	155		2	9	93,954	12,484	87	94,109	12,486	96
Asset-backed	10,188		119	17	18,755	881	22	28,943	1,000	39
Total fixed maturity securities	$	109,204	2,490	242	913,955	179,542	1,152	1,023,159	182,032	1,394

December 31, 2023	Less than 12 months				Greater than 12 months			Total
(In thousands, except for # of securities)	Fair Value		Unrealized Losses	# of Securities	Fair Value	Unrealized Losses	# of Securities	Fair Value	Unrealized Losses	# of Securities
Fixed maturity securities:
Available-for-sale securities:
U.S. Treasury securities	$	1,203	40	5	65	8	2	1,268	48	7
U.S. Government-sponsored enterprises	221		1	1	—	—	—	221	1	1
States and political subdivisions	19,540		357	35	164,264	28,775	192	183,804	29,132	227
Corporate:
Financial	12,584		383	19	176,521	30,872	217	189,105	31,255	236
Consumer	10,175		265	16	176,725	36,829	223	186,900	37,094	239
Utilities	3,596		66	20	85,169	20,187	137	88,765	20,253	157
Energy	3,291		57	1	59,392	7,992	76	62,683	8,049	77
Communications	5,784		153	5	56,108	8,739	69	61,892	8,892	74
All Other	2,080		32	5	85,757	12,407	100	87,837	12,439	105
Residential mortgage-backed	849		38	5	95,806	10,022	86	96,655	10,060	91
Asset-backed	4,757		111	8	32,764	1,405	40	37,521	1,516	48
Total fixed maturity securities	$	64,080	1,503	120	932,571	157,236	1,142	996,651	158,739	1,262

In each category of our fixed maturity securities described above, we do not intend to sell our investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases. As of June 30, 2024 and December 31, 2023, 99.2% and 99.4% of the fair value of our fixed maturity securities portfolio, respectively, were rated investment grade. While the losses are currently unrealized, we continue to monitor all fixed maturity securities on an on-going basis as future information may become available which could result in an allowance being recorded.

These unrealized losses on fixed maturity securities are due to noncredit-related factors, including change in credit spreads and rising interest rates since purchase, which have little bearing on the recoverability of our investments, hence they are not recognized as credit losses. The fair value is expected to recover as the securities approach maturity or if market yields for such investments decline.

The amortized cost and fair value of fixed maturity securities at June 30, 2024 by contractual maturity are shown in the table below.  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. Securities not due at a single maturity date have been reflected based upon final stated maturity.

June 30, 2024	Amortized Cost		Fair Value
(In thousands)
Fixed maturity securities:
Due in one year or less	$	13,739	13,634
Due after one year through five years	131,109		128,939
Due after five years through ten years	287,364		278,050
Due after ten years	958,275		792,780
Total fixed maturity securities	$	1,390,487	1,213,403

The Company uses the specific identification method of the individual security to determine the cost basis used in the calculation of realized gains and losses related to security sales.  

	Three Months Ended			Six Months Ended
	June 30,			June 30,
(In thousands)	2024		2023	2024	2023
Fixed maturity securities, available-for-sale:
Proceeds	$	2,151	1,379	4,659	4,244
Gross realized gains	$	90	—	91	5
Gross realized losses	$	147	5	196	17