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Investments
 12 Months Ended
Dec. 31, 2024
Investments [Abstract]  
Investments
Note 2.
Investments


The following tables set forth the estimated fair value, gross unrealized gains, gross unrealized losses, allowance for credit losses and cost or amortized cost of the Company’s investments in fixed maturities and equity securities, aggregated by type and industry, as of December 31, 2024 and December 31, 2023.

Fixed maturities were comprised of the following:
    2024  

 
Estimated
Fair Value
    
Gross
Unrealized
Gains
    
Gross
Unrealized
Losses
    
Allowance
for
Credit
Losses
    
Amortized
Cost
  
Fixed maturities:
                              
Bonds:
                              
U.S. Treasury securities and obligations of U.S. Government agencies and authorities
  
$
22,251
    
$
24
    
$
2,144
     $ —    
$
24,371
  
Loan backed and structured securities
     22,290       17       2,457       —       24,730  
Obligations of states and political subdivisions
    
7,623
      
9
      
1,517
       —      
9,131
  
Corporate securities:
                                        
Utilities and telecom
    
24,623
      
108
      
3,206
       —      
27,721
  
Financial services
    
59,564
      
563
      
4,768
       —      
63,769
  
Other business – diversified
    
34,117
      
160
      
3,919
       —      
37,876
  
Other consumer – diversified
    
41,957
      
33
      
6,585
       —      
48,509
  
Total corporate securities
    
160,261
      
864
      
18,478
       —      
177,875
  
Redeemable preferred stocks:
                                        
Other consumer – diversified
    
187
      
—
      
5
       —      
192
  
Total redeemable preferred stocks
    
187
      
—
      
5
       —      
192
  
Total fixed maturities
  
$
212,612
    
$
914
    
$
24,601
     $ —    
$
236,299
  

    2023
  

 
Estimated
Fair Value
    
Gross
Unrealized
Gains
    
Gross
Unrealized
Losses
    
Allowance
for
Credit
Losses
    
Amortized
Cost
  
Fixed maturities:
                              
Bonds:
                              
U.S. Treasury securities and obligations of U.S. Government agencies and authorities
  
$
22,849
    
$
51
    
$
1,951
     $ —    
$
24,749
  
Loan backed and structures securities
     27,210       12       2,993       —       30,191  
Obligations of states and political subdivisions
    
8,106
      
15
      
1,424
       —      
9,515
  
Corporate securities:
            
                         
Utilities and telecom
    
21,309
      
143
      
2,582
       —      
23,748
  
Financial services
    
59,584
      
560
      
4,931
       —      
63,955
  
Other business – diversified
    
34,386
      
403
      
2,940
       —      
36,923
  
Other consumer – diversified
    
44,570
      
87
      
4,870
       —      
49,353
  
Total corporate securities
    
159,849
      
1,193
      
15,323
       —      
173,979
  
Redeemable preferred stocks:
            
                         
Other consumer – diversified
    
205
      
13
      
—
       —      
192
  
Total redeemable preferred stocks
    
205
      
13
      
—
       —      
192
  
Total fixed maturities
  
$
218,219
    
$
1,284
    
$
21,691
     $ —    
$
238,626
  


Bonds having an amortized cost of $15,065 and $14,647 and included in the tables above were on deposit with insurance regulatory authorities at December 31, 2024 and 2023, respectively, in accordance with statutory requirements. In addition, the Company maintains cash and cash equivalents on deposit with insurance regulatory authorities of $226 at December 31, 2024 and 2023. Additionally, bonds having an amortized cost of $9,209 and $9,584 and included in the tables above were pledged as collateral to FHLB at December 31, 2024 and 2023, respectively.

   
2024
 
   
Estimated
Fair Value
    
Gross
Unrealized
Gains
    
Gross
Unrealized
Losses
    
Cost
  
Equity securities:
                        
Common and non-redeemable preferred stocks:
                        
Financial services
    
1,149
      
843
      
—
      
306
  
Communications
    
6,751
     
2,118
      
—
      
4,633
  
Total equity securities
  
$
7,900
    
$
2,961
    
$
—
    
$
4,939
  

   
2023
 
   
Estimated
Fair Value
    
Gross
Unrealized
Gains
    
Gross
Unrealized
Losses
    
Cost
  
Equity securities:
                        
Common and non-redeemable preferred stocks:
                        
Financial services
    
924
      
621
      
—
      
303
  
Communications
    
8,489
      
3,856
      
—
      
4,633
  
Total equity securities
  
$
9,413
    
$
4,477
    
$
—
    
$
4,936
  


The carrying value and amortized cost of the Company’s investments in fixed maturities at December 31, 2024 and 2023 by contractual maturity were as follows. Actual maturities may differ from contractual maturities because issuers may call or prepay obligations with or without call or prepayment penalties.

   
2024
    
2023
  
   
Carrying
Value
    
Amortized
Cost
    
Carrying
Value
    
Amortized
Cost
  
Due in one year or less
  
$
7,484
    
$
7,497
    
$
1,715
    
$
1,750
  
Due after one year through five years
    
62,722
      
64,703
      
60,423
      
62,423
  
Due after five years through ten years
    
32,820
      
35,552
      
33,596
      
36,752
  
Due after ten years
    
80,199
      
95,466
      
86,857
      
97,984
  
Asset backed securities
    
29,387
      
33,081
      
35,628
      
39,717
  
Totals
  
$
212,612
    
$
236,299
    
$
218,219
    
$
238,626
  


The following tables present the Company’s unrealized loss aging for securities by type and length of time the security was in a continuous unrealized loss position as of December 31, 2024 and 2023.
   
2024
  
   
Less than 12 months
    
12 months or longer
    
Total
  
   
Fair
Value
    
Unrealized
Losses
    
Fair
Value
    
Unrealized
Losses
    
Fair
Value
    
Unrealized
Losses
  
U.S. Treasury securities and obligations of U.S. Government agencies and authorities
  
$
3,753
    
$
33
    
$
16,136
    
$
2,111
    
$
19,889
    
$
2,144
  
Loan backed and structured securities
     1,010       5       16,069       2,452       17,079       2,457  
Obligations of states and political subdivisions
     —       —       5,839       1,517       5,839       1,517  
Corporate securities
    
18,510
      
755
      
125,930
      
17,723
      
144,440
      
18,478
  
Redeemable preferred stocks
     188       5       —       —       188       5  
Total temporarily impaired securities
  
$
23,461
    
$
798
    
$
163,974
    
$
23,803
    
$
187,435
    
$
24,601
  

 
2023
  
 
Less than 12 months
  
12 months or longer
  
Total
  
 
Fair
Value
  
Unrealized
Losses
  
Fair
Value
  
Unrealized
Losses
  
Fair
Value
  
Unrealized
Losses
  
U.S. Treasury securities and obligations of U.S. Government agencies and authorities
  
$
4,197
    
$
17
    
$
15,639
    
$
1,934
    
$
19,836
    
$
1,951
  
Loan backed and structured securities
    997       20       23,837       2,973       24,834       2,993  
Obligations of states and political subdivisions
    1,145       3       5,936       1,421       7,081       1,424  
Corporate securities
    
539
      
13
      
138,283
      
15,310
      
138,822
      
15,323
  
Total temporarily impaired securities
  
$
6,878
    
$
53
    
$
183,695
    
$
21,638
    
$
190,573
    
$
21,691
  


Analysis of Securities in Unrealized Loss Positions



As of December 31, 2024 and 2023, there were 213 and 222 securities, respectively, in an unrealized loss position which primarily included certain of the Company’s investments in fixed maturities within the utilities and telecom, financial services, other diversified business and other diversified consumer sectors. The unrealized losses on the Company’s fixed maturity securities investments have been primarily related to general market changes in interest rates and/or the levels of credit spreads rather than specific concerns with the issuer’s ability to pay interest and repay principal.

For any of its fixed maturity securities with significant declines in fair value, the Company performs detailed analyses to identify whether the drivers of the declines are due to general market drivers, such as the recent increases in interest rates, or due to credit-related factors. Identifying the drivers of the declines in fair value helps to align and allocate the Company’s resources to securities with real credit-related concerns that could impact the ultimate collection of principal and interest. For any significant declines in fair value determined to be non-interest rate or market related, the Company performs a more focused review of the related issuers’ specific credit profile.

For corporate issuers, the Company evaluates their assets, business profile including industry dynamics and competitive positioning, financial statements and other available financial data. For non-corporate issuers, the Company analyzes all reasonably available sources of credit support, including issuer-specific factors. The Company utilizes information available in the public domain and, for certain private placement issuers, from consultations with the issuers directly. The Company also considers ratings from Nationally Recognized Statistical Rating Organizations, as well as the specific characteristics of the security it owns including seniority in the issuer’s capital structure, covenant protections, or other relevant features. From these reviews, the Company evaluates the issuers’ continued ability to service the Company’s investment through payment of interest and principal.

Assuming no credit-related factors develop, unrealized gains and losses on fixed maturity securities are expected to diminish as investments near maturity. Based on its credit analysis, the Company believes that the issuers of its fixed maturity investments in the sectors shown in the table above have the ability to service their obligations to the Company. In addition, the Company does not intend to sell the 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, which may be at maturity.


However, from time to time the Company identifies certain available-for-sale fixed maturity securities where the amortized cost basis exceeds the present value of the cash flows expected to be collected due to credit related factors and as a result, a credit allowance will be estimated.  The Company had no ACL on its available-for-sale fixed maturities as of December 31, 2024 and 2023.


Investment income was earned from the following sources:
   
2024
    
2023
  
Fixed maturities
  
$
9,520
    
$
9,333
  
Equity securities
    
335
      
332
  
Other
    
191
      
646
  
     
10,046
      
10,311
  
Investment expenses
    
255
      
253
  
Net investment income
  
$
9,791
    
$
10,058
  


A summary of realized investment gains (losses) follows:
    2024  

 
Fixed
Maturities
    
Equity
Securities
    
Other
Invested Assets
     Total  
Gains
  
$
19
    
$
—
    
$
1,193
    
$
1,212
  
Losses
    
(2
)
    
—
      
—
      
(2
)
Realized investment gains, net
  
$
17
    
$
—
    
$
1,193
    
$
1,210
  

    2023  
   
Fixed
Maturities
    
Equity
Securities
    
Other
Invested Assets
     Total  
Gains
  
$
70
    
$
—
    
$
—
    
$
70
  
Losses
    
—
      
—
      
—
      
—
  
Realized investment gains, net
  
$
70
    
$
—
    
$
—
    
$
70
  


Proceeds from the sales of available-for-sale fixed maturities were as follows:
   
2024
    
2023
  
Sales proceeds
  
$
—
    
$
5,035
  
Gross gains
    
—
      
70
  
Gross losses
    
—
      
—
  


Proceeds from the sales of equity securities were as follows:
   
2024
    
2023
  
Sales proceeds
  
$
—
    
$
2
  
Gross gains
    
—
      
—
  
Gross losses
    
—
      
—
  


Proceeds from the sales of other invested assets were as follows:
   
2024
   
2023
 
Sales proceeds
  
$
2,510
    
$
—
  
Gross gains
    
1,193
      
—
  
Gross losses
    
—
      
—



Sales of available-for-sale securities in 2024 and 2023 were primarily a result of improving the overall risk versus return profile of the portfolio. In addition, the Company sold its interest in a certain limited liability company held as other invested assets to a third-party in 2024.


The following table presents the portion of unrealized gains (losses) related to equity securities still held for the years ended December 31, 2024 and 2023.
   
2024
    
2023
  
Net realized and unrealized losses recognized during the period on equity securities
  
$
(1,516
)
  
$
(2,177
)
Less: Net realized gains recognized during the period on equity securities sold during the period
    
—
      
—
  
Unrealized losses on equity securities, net
  
$
(1,516
)
  
$
(2,177
)


The Company’s bond portfolio included 99% investment grade securities, as defined by the NAIC, at December 31, 2024 and 2023.
Variable Interest Entities

The Company holds passive interests in a number of entities that are considered to be variable interest entities (“VIEs”) under GAAP guidance. The Company’s VIE interests principally consist of interests in limited partnerships and limited liability companies formed for the purpose of achieving diversified equity returns. The Company’s VIE interests, carried as a part of other invested assets, totaled $6,616 and $6,381 at December 31, 2024 and 2023, respectively. The Company’s VIE interests, carried as a part of investment in unconsolidated trusts, totaled $1,238 at December 31, 2024 and 2023.

The Company does not have power over the activities that most significantly impact the economic performance of these VIEs and thus is not the primary beneficiary. Therefore, the Company has not consolidated these VIEs. The Company’s involvement with each VIE is limited to its direct ownership interest in the VIE. The Company has no arrangements with any of the VIEs to provide other financial support to or on behalf of the VIE. The Company’s maximum loss exposure relative to these investments was limited to the carrying value of the Company’s investment in the VIEs, which amount to $7,854 and $7,619, at December 31, 2024 and 2023, respectively. As of December 31, 2024 and 2023, the Company had outstanding commitments totaling $2,200 and $4,518, respectively, whereby the Company is committed to fund these investments and may be called by the partnership during the commitment period to fund the purchase of new investments and partnership expenses. The reduction in the Company’s outstanding commitments was a result of an additional investment of $2,318 in the partnership.