Investments

9 Months Ended

Sep. 30, 2024

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 86.2% of total cash and invested assets at September 30, 2024, as shown below.

Carrying Value (In thousands, except for %)	September 30, 2024				December 31, 2023
	Amount		%		Amount	%
Cash and invested assets:
Fixed maturity securities	$	1,273,497	86.2	%	1,238,981	86.7	%
Equity securities	5,716		0.4		5,282	0.4
Policy loans	72,463		4.9		75,359	5.3
Other long-term investments	93,433		6.3		82,725	5.8
Cash and cash equivalents	32,382		2.2		26,997	1.8
Total cash and invested assets	$	1,477,491	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
September 30, 2024
(In thousands)
Fixed maturity securities:
Available-for-sale:
U.S. Treasury securities	$	5,950	165	29	6,086
U.S. Government-sponsored enterprises	3,380		287	—	3,667
States and political subdivisions	299,622		2,531	23,940	278,213
Corporate:
Financial	276,156		4,152	24,177	256,131
Consumer	253,133		2,358	32,726	222,765
Utilities	127,449		1,032	17,247	111,234
Energy	83,130		452	6,535	77,047
Communications	71,071		293	7,500	63,864
All other	111,435		823	10,675	101,583
Commercial mortgage-backed	268		1	2	267
Residential mortgage-backed	106,816		14	7,633	99,197
Asset-backed	53,170		926	653	53,443
Total fixed maturity securities	$	1,391,580	13,034	131,117	1,273,497

	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)	September 30, 2024		December 31, 2023
Equity securities:
Bond mutual funds	$	766	740
Common stocks	774		665
Non-redeemable preferred stock	8		7
Non-redeemable preferred stock fund	4,168		3,870
Total equity securities	$	5,716	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 gains of $0.4 million for both the three and nine months ended September 30, 2024, respectively, on equity securities held. The Company recognized net investment related losses of $0.4 million and $0.3 million for the three and nine months ended September 30, 2023, respectively.

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 nine months ended September 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 September 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.

September 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	$	569	16	2	315	13	4	884	29	6
States and political subdivisions	12,007		126	21	160,393	23,814	180	172,400	23,940	201
Corporate:
Financial	11,511		27	8	165,303	24,150	194	176,814	24,177	202
Consumer	8,889		122	14	173,308	32,604	216	182,197	32,726	230
Utilities	2,805		132	8	86,941	17,115	146	89,746	17,247	154
Energy	3,199		4	4	55,625	6,531	65	58,824	6,535	69
Communications	2,749		34	4	50,790	7,466	60	53,539	7,500	64
All Other	10,989		97	18	71,434	10,578	84	82,423	10,675	102
Commercial mortgage-backed	—		—	—	96	2	1	96	2	1
Residential mortgage-backed	46		—	3	98,714	7,633	84	98,760	7,633	87
Asset-backed	3,973		71	4	16,507	582	18	20,480	653	22
Total fixed maturity securities	$	56,737	629	86	879,426	130,488	1,052	936,163	131,117	1,138

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 September 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 September 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.

September 30, 2024	Amortized Cost		Fair Value
(In thousands)
Fixed maturity securities:
Due in one year or less	$	13,425	13,375
Due after one year through five years	136,629		137,256
Due after five years through ten years	276,325		277,228
Due after ten years	965,201		845,638
Total fixed maturity securities	$	1,391,580	1,273,497

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			Nine Months Ended
	September 30,			September 30,
(In thousands)	2024		2023	2024	2023
Fixed maturity securities, available-for-sale:
Proceeds	$	—	9,446	4,659	13,690
Gross realized gains	$	—	38	91	43
Gross realized losses	$	—	436	196	453