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Investments (Tables)

9 Months Ended

Sep. 30, 2024

Investments

Gross unrealized gains and losses on investments in securities

As of September 30, 2024

Cost or

Allowance for

Gross Unrealized

Estimated

Amortized

Expected Credit

Fair

Cost

Losses

Gains

Losses (3)

Value

U.S. Treasury securities

$

2,418

$

—

$

32

$

(70)

$

2,380

Obligations of states and political subdivisions

25,703

—

247

(1,875)

24,075

Residential mortgage-backed securities (1)

295,286

—

3,994

(17,437)

281,843

Commercial mortgage-backed securities

141,528

—

303

(9,510)

132,321

Other asset-backed securities

71,195

—

371

(1,682)

69,884

Corporate and other securities

605,196

(1,545)

5,758

(20,928)

588,481

Subtotal, fixed maturity securities

1,141,326

(1,545)

10,705

(51,502)

1,098,984

Short-term investments

19,729

—

—

—

19,729

Equity securities (2)

195,247

—

35,696

(4,603)

226,340

Other invested assets (4)

157,883

—

—

—

157,883

Totals

$

1,514,185

$

(1,545)

$

46,401

$

(56,105)

$

1,502,936


		As of December 31, 2023

		Cost or			Allowance for			Gross Unrealized						Estimated
		Amortized			Expected Credit									Fair
		Cost			Losses			Gains			Losses (3)			Value
U.S. Treasury securities		$	2,420		$	—		$	15		$	(115)		$	2,320
Obligations of states and political subdivisions			38,682			—			262			(2,421)			36,523
Residential mortgage-backed securities (1)			267,271			—			1,945			(21,979)			247,237
Commercial mortgage-backed securities			153,923			—			200			(14,273)			139,850
Other asset-backed securities			64,043			—			217			(2,927)			61,333
Corporate and other securities			594,343			(1,208)			3,785			(32,038)			564,882
Subtotal, fixed maturity securities			1,120,682			(1,208)			6,424			(73,753)			1,052,145
Equity securities (2)			221,809			—			25,707			(9,494)			238,022
Other invested assets (4)			133,946			—			—			—			133,946
Totals		$	1,476,437		$	(1,208)		$	32,131		$	(83,247)		$	1,424,113

(1)

Residential mortgage-backed securities consist primarily of obligations of U.S. Government agencies including collateralized mortgage obligations issued, guaranteed and/or insured by the following issuers: Government National Mortgage Association (GNMA), Federal Home Loan Mortgage Corporation (FHLMC), Federal National Mortgage Association (FNMA) and the Federal Home Loan Bank (FHLB).

(2)	Equity securities include common stock, preferred stock, mutual funds and interests in mutual funds held to fund the Company’s executive deferred compensation plan.

(3)	The Company’s investment portfolio includes 785 and 861 securities in an unrealized loss position at September 30, 2024 and December 31, 2023, respectively.

(4)	Other invested assets are accounted for under the equity method which approximates fair value.

Amortized cost and the estimated fair value of fixed maturity securities, by maturity


		As of September 30, 2024
		Amortized			Estimated
		Cost			Fair Value
Due in one year or less		$	44,751		$	43,500
Due after one year through five years			319,878			310,448
Due after five years through ten years			248,510			241,713
Due after ten years through twenty years			19,843			18,903
Due after twenty years			335			372
Asset-backed securities			508,009			484,048
Totals		$	1,141,326		$	1,098,984

Gross realized gains and losses on sales of investments


		Three Months Ended September 30,						Nine Months Ended September 30,
		2024			2023			2024			2023
Gross realized gains
Fixed maturity securities		$	213		$	436		$	519		$	1,275
Equity securities			2,855			1,869			9,117			5,235
Gross realized losses
Fixed maturity securities			(1,130)			(1,338)			(1,824)			(2,260)
Equity securities			(624)			(697)			(3,291)			(3,139)
Net realized gains on investments		$	1,314		$	270		$	4,521		$	1,111

Gross unrealized losses included in the Company's investment portfolio and the fair value of those securities

As of September 30, 2024

Less than 12 Months

12 Months or More

Total

Estimated

Unrealized

Estimated

Unrealized

Estimated

Unrealized

Fair Value

Losses

Fair Value

Losses

Fair Value

Losses

U.S. Treasury securities

$

—

$

—

$

1,750

$

70

$

1,750

$

70

Obligations of states and political subdivisions

647

28

19,683

1,847

20,330

1,875

Residential mortgage-backed securities

5,558

125

175,230

17,312

180,788

17,437

Commercial mortgage-backed securities

—

—

126,289

9,510

126,289

9,510

Other asset-backed securities

6,857

161

23,019

1,521

29,876

1,682

Corporate and other securities

64,528

290

315,184

20,638

379,712

20,928

Subtotal, fixed maturity securities

77,590

604

661,155

50,898

738,745

51,502

Equity securities

15,442

969

23,235

3,634

38,677

4,603

Total temporarily impaired securities

$

93,032

$

1,573

$

684,390

$

54,532

$

777,422

$

56,105


		As of December 31, 2023
		Less than 12 Months						12 Months or More						Total
		Estimated			Unrealized			Estimated			Unrealized			Estimated			Unrealized
		Fair Value			Losses			Fair Value			Losses			Fair Value			Losses
U.S. Treasury securities		$	—		$	—		$	1,708		$	115		$	1,708		$	115
Obligations of states and political subdivisions			403			17			28,893			2,404			29,296			2,421
Residential mortgage-backed securities			11,248			167			182,794			21,812			194,042			21,979
Commercial mortgage-backed securities			4,067			108			130,493			14,165			134,560			14,273
Other asset-backed securities			5,973			224			46,600			2,703			52,573			2,927
Corporate and other securities			39,453			1,338			369,163			30,700			408,616			32,038
Subtotal, fixed maturity securities			61,144			1,854			759,651			71,899			820,795			73,753
Equity securities			34,272			3,079			45,797			6,415			80,069			9,494
Total temporarily impaired securities		$	95,416		$	4,933		$	805,448		$	78,314		$	900,864		$	83,247

Reconciliation of beginning and ending balances of allowance for expected credit losses on fixed maturities classified as available for sale



		Three Months Ended September 30,						Nine Months Ended September 30,
			2024			2023		2024			2023
Beginning of period		$	1,387		$	1,635		$	1,208		$	678
Credit losses on securities with no previously recorded credit losses			510			195			551			912
Net increases (decreases) in allowance on previously impaired securities			40			(77)			192			245
Reduction due to sales			(392)			(522)			(406)			(604)
Writeoffs charged against allowance			—			—			—			—
Recoveries of amounts previously written off			—			—			—			—
Ending balance of period		$	1,545		$	1,231		$	1,545		$	1,231

Components of net investment income


		Three Months Ended September 30,						Nine Months Ended September 30,
		2024			2023			2024			2023
Interest on fixed maturity securities		$	10,831		$	12,101		$	34,933		$	35,805
Dividends on equity securities			1,487			1,562			4,634			4,656
Equity in earnings of other invested assets			644			1,425			3,701			3,705
Interest on other assets			86			69			247			134
Total investment income			13,048			15,157			43,515			44,300
Investment expenses			838			1,152			2,574			2,805
Net investment income		$	12,210		$	14,005		$	40,941		$	41,495

Fair value measurements for investments

As of September 30, 2024

Total

Level 1 Inputs

Level 2 Inputs

Level 3 Inputs

U.S. Treasury securities

$

2,380

$

—

$

2,380

$

—

Obligations of states and political subdivisions

24,075

—

24,075

—

Residential mortgage-backed securities

281,843

—

281,843

—

Commercial mortgage-backed securities

132,321

—

132,321

—

Other asset-backed securities

69,884

—

69,884

—

Corporate and other securities

588,481

—

588,481

—

Short-term investments

19,729

—

19,729

—

Equity securities

194,385

192,265

—

2,120

Total investment securities

$

1,313,098

$

192,265

$

1,118,713

$

2,120


		As of December 31, 2023
		Total			Level 1 Inputs			Level 2 Inputs			Level 3 Inputs
U.S. Treasury securities		$	2,320		$	—		$	2,320		$	—
Obligations of states and political subdivisions			36,523			—			36,523			—
Residential mortgage-backed securities			247,237			—			247,237			—
Commercial mortgage-backed securities			139,850			—			139,850			—
Other asset-backed securities			61,333			—			61,333			—
Corporate and other securities			564,882			—			564,882			—
Equity securities			204,849			202,763			—			2,086
Total investment securities		$	1,256,994		$	202,763		$	1,052,145		$	2,086

Changes in the Company's Level 3 fair value securities


		Three Months Ended September 30,						Nine Months Ended September 30,
		2024			2023			2024			2023
		Level 3			Level 3			Level 3			Level 3
		Fair Value			Fair Value			Fair Value			Fair Value
		Securities			Securities			Securities			Securities
Balance at beginning of period		$	2,120		$	2,292		$	2,086		$	2,255
Net gains and losses included in earnings			—			—			—			—
Net gains included in other comprehensive income			—			—			—			—
Purchases			—			—			372			680
Sales			—			(206)			(338)			(849)
Transfers into Level 3			—			—			—			—
Transfers out of Level 3			—			—			—			—
Balance at end of period		$	2,120		$	2,086		$	2,120		$	2,086
Amount of total losses included in earnings attributable to the change in unrealized losses related to assets still held at end of period		$	—		$	—		$	—		$	—

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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