The amortized cost, estimated fair value, and gross unrealized gains and losses on investments in fixed-maturity securities classified as available-for-sale for which an allowance for credit losses has not been recorded, as of June 30, 2026 and December 31, 2025 are summarized as follows:


	June 30, 2026
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses				Estimated Fair Value		Net Unrealized Losses
Category					Less than 12 Months		More than 12 Months

Fixed-Maturity Securities:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	1,498,106	$	-	$	(10,291)	$	-	$	1,487,815	$	(10,291)
Political subdivisions of States, Territories and Possessions (1)	24,116,616		48,398		-		(2,582,468)		21,582,546		(2,534,070)
Corporate and other bonds industrial and miscellaneous (1)	154,932,078		98,550		(1,112,828)		(2,658,148)		151,259,652		(3,672,426)
Residential mortgage and other asset backed securities (1) (2)	144,169,245		593,520		(733,952)		(4,432,896)		139,595,917		(4,573,328)
Total fixed-maturity securities	$	324,716,045	$	740,468	$	(1,857,071)	$	(9,673,512)	$	313,925,930	$	(10,790,115)


	December 31, 2025
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses				Estimated Fair Value		Net Unrealized Losses
Category					Less than 12 Months		More than 12 Months

Fixed-Maturity Securities:
U.S. Treasury securities and obligations of U.S. government corporations and agencies (1)	$	997,124	$	10,066	$	-	$	-	$	1,007,190	$	10,066
Political subdivisions of States, Territories and Possessions (1)	24,125,578		182,580		-		(2,534,725)		21,773,433		(2,352,145)
Corporate and other bonds industrial and miscellaneous (1)	131,958,643		567,410		(118,901)		(2,540,470)		129,866,682		(2,091,961)
Residential mortgage and other asset backed securities (1) (2)	139,656,710		1,273,816		(62,968)		(4,477,673)		136,389,885		(3,266,825)
Total fixed-maturity securities	$	296,738,055	$	2,033,872	$	(181,869)	$	(9,552,868)	$	289,037,190	$	(7,700,865)

(1)In October 2022, KICO placed certain U.S. Treasury securities to fulfill the required collateral for a sale-leaseback transaction in a designated custodian account (see Note 7 – Debt - “Equipment Financing”). As of December 31, 2024 KICO had sold its U.S. Treasury securities and replaced a portion of its other fixed-maturity securities in the designated custodian account. As of June 30, 2026 and December 31, 2025, the amount of required collateral was approximately $2,770,000 and $3,616,000, respectively. As

(2)KICO has placed certain residential mortgage backed securities as eligible collateral in a designated custodian account related to its membership in the Federal Home Loan Bank of New York (“FHLBNY”) (see Note 7 – Debt – “Federal Home Loan Bank”). The eligible collateral would be pledged to FHLBNY if KICO draws an advance from the FHLBNY credit line. As of June 30, 2026 and December 31, 2025, the estimated fair value of the eligible investments was approximately $9,117,000 and $9,598,000, respectively. KICO will retain all rights regarding all securities if pledged as collateral. As of June 30, 2026 and December 31, 2025, there was no outstanding balance on the FHLBNY credit line.

A summary of the amortized cost and estimated fair value of the Company’s investments in available-for-sale fixed-maturity securities by contractual maturity as of June 30, 2026 and December 31, 2025 is shown below:


	June 30, 2026				December 31, 2025
Remaining Time to Maturity	Cost or Amortized Cost		Estimated Fair Value		Cost or Amortized Cost		Estimated Fair Value

Less than one year	$	12,012,425	$	12,002,575	$	6,039,179	$	6,052,600
One to five years	83,206,786		81,502,952		76,122,161		75,365,535
Five to ten years	67,415,790		65,260,051		54,998,070		53,590,654
More than 10 years	17,911,799		15,564,435		19,921,935		17,638,516
Residential mortgage and other asset backed securities	144,169,245		139,595,917		139,656,710		136,389,885
Total	$	324,716,045	$	313,925,930	$	296,738,055	$	289,037,190


	June 30, 2026
Category	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value

Equity Securities:
Preferred stocks	$	9,750,322	$	-	$	(3,031,122)	$	6,719,200
Fixed income exchange traded funds	3,711,232		-		(756,832)		2,954,400
FHLBNY common stock	136,900		-		-		136,900
Total	$	13,598,454	$	-	$	(3,787,954)	$	9,810,500


	December 31, 2025
Category	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value

Equity Securities:
Preferred stocks	$	9,750,322	$	-	$	(2,765,627)	$	6,984,695
Fixed income exchange traded funds	3,711,232		-		(724,432)		2,986,800
FHLBNY common stock	85,100		-		-		85,100
Total	$	13,546,654	$	-	$	(3,490,059)	$	10,056,595


	June 30, 2026						December 31, 2025
Category	Cost		Gross Unrealized Gains		Estimated Fair Value		Cost		Gross Unrealized Gains		Estimated Fair Value

Other Investments:
Hedge fund	$	1,987,040	$	2,293,482	$	4,280,522	$	1,987,040	$	2,565,338	$	4,552,378

The cost or amortized cost and estimated fair value of, and unrealized gross gains and losses on, investments in held-to-maturity fixed-maturity securities as of June 30, 2026 and December 31, 2025 are summarized as follows:


	June 30, 2026

	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses				Estimated Fair Value		Net Unrealized Losses
Category					Less than 12 Months		More than 12 Months

Held-to-Maturity Securities:
U.S. Treasury securities	$	1,229,652	$	-	$	(5,009)	$	(30,717)	$	1,193,926	$	(35,726)

Exchange traded debt	304,111		-		-		(67,861)		236,250		(67,861)
Corporate and other bonds industrial and miscellaneous	4,505,928		-		-		(870,763)		3,635,165		(870,763)
Total	$	6,039,691	$	-	$	(5,009)	$	(969,341)	$	5,065,341	$	(974,350)


	December 31, 2025
	Cost or Amortized Cost		Gross Unrealized Gains						Estimated Fair Value		Net Unrealized Losses
					Gross Unrealized Losses
Category					Less than 12 Months		More than 12 Months

Held-to-Maturity Securities:
U.S. Treasury securities	$	1,229,490	$	-	$	(3,070)	$	(22,083)	$	1,204,337	$	(25,153)

Exchange traded debt	304,111		-		-		(62,111)		242,000		(62,111)
Corporate and other bonds industrial and miscellaneous	4,508,747		-		-		(817,817)		3,690,930		(817,817)
Total	$	6,042,348	$	-	$	(3,070)	$	(902,011)	$	5,137,267	$	(905,081)

A summary of the amortized cost and estimated fair value of the Company’s investments in held-to-maturity securities by contractual maturity as of June 30, 2026 and December 31, 2025 is shown below:


	June 30, 2026				December 31, 2025
Remaining Time to Maturity	Cost or Amortized Cost		Estimated Fair Value		Cost or Amortized Cost		Estimated Fair Value

Less than one year	$	499,772	$	494,655	$	-	$	-
One to five years	1,570,465		1,522,172		2,063,366		2,029,462
Five to ten years	-		-		-		-
More than 10 years	3,969,454		3,048,514		3,978,982		3,107,805
Total	$	6,039,691	$	5,065,341	$	6,042,348	$	5,137,267


	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025
Income:
Fixed-maturity securities	$	3,392,166	$	2,130,385	$	6,663,141	$	4,061,683
Equity securities	123,682		123,203		247,213		246,638
Cash and cash equivalents	27,357		103,147		78,333		143,808

Total	3,543,205		2,356,735		6,988,687		4,452,129
Expenses:
Investment expenses	114,476		56,468		222,377		103,266
Net investment income	$	3,428,729	$	2,300,267	$	6,766,310	$	4,348,863


	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025
Realized Gains (Losses)

Fixed-maturity securities:
Gross realized gains	$	401	$	54	$	1,743	$	842
Gross realized losses	(202,729)		(4,132)		(206,994)		(6,646)
Net realized losses	(202,328)		(4,078)		(205,251)		(5,804)








Unrealized Gains (Losses)

Equity Securities:
Gross gains	-		-		-		-
Gross losses	(81,100)		(95,176)		(297,895)		(288,506)
	(81,100)		(95,176)		(297,895)		(288,506)

Other Investments:
Gross gains	523,773		645,705		-		702,782
Gross losses	-		-		(271,856)		-
	523,773		645,705		(271,856)		702,782

Net unrealized gains (losses)	442,673		550,529		(569,751)		414,276

Net gains (losses) on investments	$	240,345	$	546,451	$	(775,002)	$	408,472

For available-for-sale fixed maturity securities, a credit loss exists if the present value of cash flows expected to be collected is less than the amortized cost basis. The allowance for credit losses related to available-for-sale fixed maturity securities is the difference between the present value of cash flows expected to be collected and the amortized cost basis, limited by the amount that the fair value is less than the amortized cost basis. The Company considers all available evidence when determining whether an investment requires a credit loss write-down or allowance to be recorded, which is recognized in net income (loss) through an allowance for credit losses. Any remaining decline in fair value represents the noncredit portion of the impairment, which is recognized in other comprehensive (loss) income, net of tax.

The Company did not identify any available-for-sale securities as of June 30, 2026 and December 31, 2025 which presented a risk of loss due to credit deterioration of the security.

At June 30, 2026 and December 31, 2025, there were 273 and 125 fixed-maturity securities, respectively, that accounted for the gross unrealized losses. The Company determined that none of the unrealized losses were deemed to be credit losses for its portfolio of investments for the six months ended June 30, 2026 and 2025. Significant factors influencing the Company’s determination that unrealized losses were temporary included credit quality considerations, the magnitude of the unrealized losses in relation to each security’s cost, the nature of the investment and interest rate environment factors, and management’s intent and ability to hold the investment for a period of time sufficient to allow for an anticipated recovery of estimated fair value to the Company’s cost basis.


	June 30, 2026
	Less than 12 months					12 months or more					Total
Category	Estimated Fair Value		Unrealized Losses		No. of Positions Held	Estimated Fair Value		Unrealized Losses		No. of Positions Held	Estimated Fair Value		Unrealized Losses

Available-for-Sale Securities:

U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	1,487,815	$	(10,291)	2	$	-	$	-	-	$	1,487,815	$	(10,291)
Political subdivisions of States, Territories and Possessions	-		-		-	13,863,574		(2,582,468)		12	13,863,574		(2,582,468)
Corporate and other bonds industrial and miscellaneous	103,239,199		(1,112,828)		117	30,041,135		(2,658,148)		33	133,280,334		(3,770,976)
Residential mortgage and other asset backed securities	69,019,763		(733,952)		79	25,776,802		(4,432,896)		30	94,796,565		(5,166,848)
Total fixed-maturity securities	$	173,746,777	$	(1,857,071)	198	$	69,681,511	$	(9,673,512)	75	$	243,428,288	$	(11,530,583)


	December 31, 2025
	Less than 12 months					12 months or more					Total
Category	Estimated Fair Value		Unrealized Losses		No. of Positions Held	Estimated Fair Value		Unrealized Losses		No. of Positions Held	Estimated Fair Value		Unrealized Losses

Available-for-Sale Securities:

Political subdivisions of States, Territories and Possessions	$	-	$	-	-	$	13,926,802	$	(2,534,725)	12	$	13,926,802	$	(2,534,725)
Corporate and other bonds industrial and miscellaneous	21,525,673		(118,901)		24	34,677,856		(2,540,470)		38	56,203,529		(2,659,371)
Residential mortgage and other asset backed securities	18,055,734		(62,968)		20	29,673,084		(4,477,673)		31	47,728,818		(4,540,641)
Total fixed-maturity securities	$	39,581,407	$	(181,869)	44	$	78,277,742	$	(9,552,868)	81	$	117,859,149	$	(9,734,737)