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 September 30, 2024 and December 31, 2023 are summarized as follows:


	September 30, 2024
	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)	$	5,999,188	$	-	$	-	$	(2,128)	$	5,997,060	$	(2,128)

Political subdivisions of States, Territories and Possessions	16,499,862		-		-		(2,610,572)		13,889,290		(2,610,572)

Corporate and other bonds industrial and miscellaneous	107,655,225		31,957		(49,276)		(3,854,059)		103,783,847		(3,871,378)

Residential mortgage and other asset backed securities (2)	46,749,976		135,681		(136)		(5,097,373)		41,788,148		(4,961,828)
Total fixed-maturity securities	$	176,904,251	$	167,638	$	(49,412)	$	(11,564,132)	$	165,458,345	$	(11,445,906)


	December 31, 2023
	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)	$	20,954,764	$	1,799	$	(17,373)	$	-	$	20,939,190	$	(15,574)

Political subdivisions of States, Territories and Possessions	16,607,713		-		-		(3,209,161)		13,398,552		(3,209,161)

Corporate and other bonds industrial and miscellaneous	75,993,042		-		-		(5,885,296)		70,107,746		(5,885,296)

Residential mortgage and other asset backed securities (2)	50,905,423		113,761		(2,144)		(6,541,731)		44,475,309		(6,430,114)
Total fixed-maturity securities	$	164,460,942	$	115,560	$	(19,517)	$	(15,636,188)	$	148,920,797	$	(15,540,145)

(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 September 30, 2024 and December 31, 2023, the amount of required collateral was approximately $5,731,000 and $6,999,000, respectively. As of September 30, 2024 and December 31, 2023, the estimated fair value of the U.S. Treasury securities used as eligible collateral was approximately $5,997,000 and $11,960,000, respectively.

(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 September 30, 2024 and December 31, 2023, the estimated fair value of the eligible investments was approximately $10,944,000 and $11,412,000, respectively. KICO will retain all rights regarding all securities if pledged as collateral. As of September 30, 2024 and December 31, 2023 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 September 30, 2024 and December 31, 2023 is shown below:


	September 30, 2024				December 31, 2023
Remaining Time to Maturity	Cost or Amortized Cost		Estimated Fair Value		Cost or Amortized Cost		Estimated Fair Value

Less than one year	$	22,025,067	$	21,941,045	$	34,729,120	$	34,461,172
One to five years	60,622,550		59,664,158		31,803,338		30,416,618
Five to ten years	34,666,169		31,548,462		31,596,410		27,330,377
More than 10 years	12,840,489		10,516,532		15,426,651		12,237,321
Residential mortgage and other asset backed securities	46,749,976		41,788,148		50,905,423		44,475,309
Total	$	176,904,251	$	165,458,345	$	164,460,942	$	148,920,797


	September 30, 2024
Category	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value

Equity Securities:
Preferred stocks	$	9,750,322	$	-	$	(1,639,894)	$	8,110,428
Fixed income exchange traded funds	3,711,232		-		(607,432)		3,103,800
FHLBNY common stock	66,000		-		-		66,000
Total	$	13,527,554	$	—	$	(2,247,326)	$	11,280,228


	December 31, 2023
Category	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value

Equity Securities:
Preferred stocks	$	13,583,942	$	-	$	(2,870,027)	$	10,713,915
Fixed income exchange traded funds	3,711,232				(669,232)		3,042,000
Mutual funds	622,209		314,816		-		937,025
FHLBNY common stock	69,400		-		-		69,400
Total	$	17,986,783	$	314,816	$	(3,539,259)	$	14,762,340


	September 30, 2024						December 31, 2023
Category	Cost		Gross Gains		Estimated Fair Value		Cost		Gross Gains		Estimated Fair Value

Other Investments:
Hedge fund	$	1,987,040	$	2,312,138	$	4,299,178	$	1,987,040	$	1,910,110	$	3,897,150

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 September 30, 2024 and December 31, 2023 are summarized as follows:


	September 30, 2024

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

Held-to-Maturity Securities:
U.S. Treasury securities	$	1,229,091	$	20,900	$	(4,474)	$	(9,604)	$	1,235,913	$	6,822

Political subdivisions of States, Territories and Possessions	499,581		269		-		-		499,850		269

Exchange traded debt	304,111		-		-		(63,411)		240,700		(63,411)

Corporate and other bonds industrial and miscellaneous	5,015,879		-		-		(713,374)		4,302,505		(713,374)
Total	$	7,048,662	$	21,169	$	(4,474)	$	(786,389)	$	6,278,968	$	(769,694)


	December 31, 2023
	Cost or Amortized Cost		Gross Unrealized Gains						Estimated Fair Value		Net Unrealized Gains/ (Losses)
					Gross Unrealized Losses
Category					Less than 12 Months		More than 12 Months

Held-to-Maturity Securities:
U.S. Treasury securities	$	1,228,860	$	15,045	$	(6,914)	$	(18,163)	$	1,218,828	$	(10,032)

Political subdivisions of States, Territories and Possessions	499,170		890		-		-		500,060		890

Exchange traded debt	304,111		-		-		(70,111)		234,000		(70,111)

Corporate and other bonds industrial and miscellaneous	5,020,400		-		-		(867,140)		4,153,260		(867,140)
Total	$	7,052,541	$	15,935	$	(6,914)	$	(955,414)	$	6,106,148	$	(946,393)

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 September 30, 2024 and December 31, 2023 is shown below:


	September 30, 2024				December 31, 2023
Remaining Time to Maturity	Cost or Amortized Cost		Estimated Fair Value		Cost or Amortized Cost		Estimated Fair Value

Less than one year	$	499,581	$	499,850	$	-	$	-
One to five years	622,309		608,231		1,121,288		1,097,101
Five to ten years	1,424,371		1,350,945		1,414,911		1,270,770
More than 10 years	4,502,401		3,819,942		4,516,342		3,738,277
Total	$	7,048,662	$	6,278,968	$	7,052,541	$	6,106,148


	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Income:
Fixed-maturity securities	$	1,172,023	$	1,245,353	$	3,511,243	$	3,982,573
Equity securities	144,950		187,018		467,588		540,788
Cash and cash equivalents	385,809		98,763		1,074,000		171,015
Other	-		-		39,227		-
Total	1,702,782		1,531,134		5,092,058		4,694,376
Expenses:
Investment expenses	53,109		86,774		174,929		257,168
Net investment income	$	1,649,673	$	1,444,360	$	4,917,129	$	4,437,208

Proceeds from the sale or maturity of fixed-maturity securities available-for-sale were $113,854,152 and $33,453,349 for the nine months ended September 30, 2024 and 2023, respectively.


	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Realized Gains (Losses)

Fixed-maturity securities:
Gross realized gains	$	157	$	263	$	962	$	1,207
Gross realized losses	(4,096)		(4,444)		(12,430)		(18,408)
	(3,939)		(4,181)		(11,468)		(17,201)

Equity securities:
Gross realized gains	369,877		-		374,997		-
Gross realized losses	-		-		(423,367)		-
	369,877		-		(48,370)		-

Net realized gains (losses)	365,938		(4,181)		(59,838)		(17,201)

Unrealized Gains (Losses)

Equity Securities:
Gross gains	669,059		-		1,291,933		173,178
Gross losses	(314,816)		(483,967)		(314,816)		-
	354,243		(483,967)		977,117		173,178

Other Investments:
Gross gains	106,341		-		402,028		441,666
Gross losses	-		(336,222)		-		-
	106,341		(336,222)		402,028		441,666

Net unrealized gains (losses)	460,584		(820,189)		1,379,145		614,844

Net gains (losses) on investments	$	826,522	$	(824,370)	$	1,319,307	$	597,643

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 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 income (loss).

The Company did not identify any available-for-sale securities as of September 30, 2024 and December 31, 2023 which presented a risk of loss due to credit deterioration of the security.

As of September 30, 2024 and December 31, 2023, there were 142 and 140 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 nine months ended September 30, 2024 and 2023. 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.


	September 30, 2024
	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	$	-	$	-	-	$	5,997,060	(2,128)		1	$	5,997,060	$	(2,128)

Political subdivisions of States, Territories and Possessions	-		-		-	13,889,291		(2,610,572)		12	13,889,291		(2,610,572)

Corporate and other bonds industrial and miscellaneous	17,557,547		(49,276)		18	63,278,931		(3,854,059)		74	80,836,478		(3,903,335)

Residential mortgage and other asset backed securities	8,405		(136)		1	37,008,025		(5,097,373)		36	37,016,430		(5,097,509)

Total fixed-maturity securities	$	17,565,952	$	(49,412)	19	$	120,173,307	$	(11,564,132)	123	$	137,739,259	$	(11,613,544)


	December 31, 2023
	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	$	5,974,440	$	(17,373)	1	$	-	-		-	$	5,974,440	$	(17,373)

Political subdivisions of States, Territories and Possessions	-		-		-	13,398,552		(3,209,161)		13	13,398,552		(3,209,161)

Corporate and other bonds industrial and miscellaneous	-		-		-	70,107,746		(5,885,296)		85	70,107,746		(5,885,296)

Residential mortgage and other asset backed securities	88,988		(2,144)		4	38,675,604		(6,541,731)		37	38,764,592		(6,543,875)

Total fixed-maturity securities	$	6,063,428	$	(19,517)	5	$	122,181,902	$	(15,636,188)	135	$	128,245,330	$	(15,655,705)