INVESTMENTSThe amortized cost and fair value of short-term investments and available-for-sale fixed maturity securities at December 31, 2023 and 2022 are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2023 | | Amortized Cost | | Allowance for Expected Credit Losses | | Gross Unrealized Gains | | Gross Unrealized Losses | | Fair Value | | (dollars in millions) | | Fixed maturities: | | | | | | | | | | | U.S. Treasury securities and agencies | $ | 14.6 | | | $ | — | | | $ | 0.1 | | | $ | (0.1) | | | $ | 14.6 | | | Municipal securities | 24.8 | | | — | | | 0.1 | | | (0.8) | | | 24.1 | | | Corporate debt securities | 66.3 | | | — | | | 0.2 | | | (1.3) | | | 65.2 | | | Residential mortgage-backed securities | 12.0 | | | — | | | 0.1 | | | (0.2) | | | 11.9 | | | Commercial mortgage-backed securities | 30.4 | | | — | | | 0.1 | | | (0.7) | | | 29.8 | | | Other debt obligations | 20.3 | | | — | | | 0.1 | | | (0.1) | | | 20.3 | | | Total fixed maturities | 168.4 | | | — | | | 0.7 | | | (3.2) | | | 165.9 | | | Short-term investments | 0.9 | | | — | | | — | | | — | | | 0.9 | | | Total | $ | 169.3 | | | $ | — | | | $ | 0.7 | | | $ | (3.2) | | | $ | 166.8 | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2022 | | Amortized Cost | | Allowance for Expected Credit Losses | | Gross Unrealized Gains | | Gross Unrealized Losses | | Fair Value | | (dollars in millions) | | Fixed maturities: | | | | | | | | | | | U.S. Treasury securities and agencies | $ | 11.3 | | | $ | — | | | $ | — | | | $ | (0.3) | | | $ | 11.0 | | | Municipal securities | 21.4 | | | — | | | — | | | (1.2) | | | 20.2 | | | Corporate debt securities | 60.5 | | | — | | | — | | | (2.7) | | | 57.8 | | | Residential mortgage-backed securities | 5.5 | | | — | | | — | | | (0.3) | | | 5.2 | | | Commercial mortgage-backed securities | 24.4 | | | — | | | — | | | (1.2) | | | 23.2 | | | Other debt obligations | 11.1 | | | — | | | 0.1 | | | (0.2) | | | 11.0 | | | Total fixed maturities | 134.2 | | | — | | | 0.1 | | | (5.9) | | | 128.4 | | | Short-term investments | 0.4 | | | — | | | — | | | — | | | 0.4 | | | Total | $ | 134.6 | | | $ | — | | | $ | 0.1 | | | $ | (5.9) | | | $ | 128.8 | |
Management reviewed the available-for-sale fixed maturity securities at each balance sheet date to consider whether it was necessary to recognize a credit loss as of December 31, 2023 and 2022. We do not intend to sell the investments and it is not more likely than not that we will be required to sell the security before recovery. Management concluded that the available-for-sale fixed maturity securities’ unrealized losses were due to non-credit related factors and, therefore, there was no allowance for credit loss as of December 31, 2023 and 2022. The following tables reflect the gross unrealized losses and fair value of short-term investments and available-for-sale fixed maturity securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2023 and 2022: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2023 | | Less than 12 Months | | 12 Months or More | | Total | | Fair Value | | Unrealized
Loss | | Fair Value | | Unrealized
Loss | | Fair Value | | Unrealized
Loss | | (dollars in millions) | | Fixed maturities: | | | | | | | | | | | | | U.S. Treasury securities and agencies | $ | 1.7 | | | $ | — | | | $ | 2.4 | | | $ | (0.1) | | | $ | 4.1 | | | $ | (0.1) | | | Municipal securities | 3.1 | | | — | | | 15.1 | | | (0.8) | | | 18.2 | | | (0.8) | | | Corporate debt securities | 13.4 | | | — | | | 35.1 | | | (1.3) | | | 48.5 | | | (1.3) | | | Residential mortgage-backed securities | 4.1 | | | — | | | 1.9 | | | (0.2) | | | 6.0 | | | (0.2) | | | Commercial mortgage-backed securities | 9.1 | | | (0.1) | | | 13.4 | | | (0.6) | | | 22.5 | | | (0.7) | | | Other debt obligations | 4.4 | | | — | | | 4.4 | | | (0.1) | | | 8.8 | | | (0.1) | | | Total fixed maturities | 35.8 | | | (0.1) | | | 72.3 | | | (3.1) | | | 108.1 | | | (3.2) | | | Short-term investments | 0.3 | | | — | | | — | | | — | | | 0.3 | | | — | | | Total | $ | 36.1 | | | $ | (0.1) | | | $ | 72.3 | | | $ | (3.1) | | | $ | 108.4 | | | $ | (3.2) | | | | | | | | | | | | | | | 2022 | | Less than 12 Months | | 12 Months or More | | Total | | Fair Value | | Unrealized
Loss | | Fair Value | | Unrealized
Loss | | Fair Value | | Unrealized
Loss | | (dollars in millions) | | Fixed maturities: | | | | | | | | | | | | | U.S. Treasury securities and agencies | $ | 6.9 | | $ | — | | $ | (0.1) | | | $ | 4.1 | | | $ | (0.2) | | | $ | 11.0 | | | $ | (0.3) | | | Municipal securities | 11.5 | | | (0.5) | | | 8.2 | | | (0.7) | | | 19.7 | | | (1.2) | | | Corporate debt securities | 45.3 | | | (1.6) | | | 11.5 | | | (1.1) | | | 56.8 | | | (2.7) | | | Residential mortgage-backed securities | 2.2 | | | — | | | 1.9 | | | (0.3) | | | 4.1 | | | (0.3) | | | Commercial mortgage-backed securities | 18.3 | | | (0.8) | | | 4.6 | | | (0.4) | | | 22.9 | | | (1.2) | | | Other debt obligations | 6.8 | | | (0.2) | | | — | | | — | | | 6.8 | | | (0.2) | | | Total fixed maturities | 91.0 | | | (3.2) | | | 30.3 | | | (2.7) | | | 121.3 | | | (5.9) | | | Short-term investments | 0.1 | | | — | | | — | | | — | | | 0.1 | | | — | | | Total | $ | 91.1 | | | $ | (3.2) | | | $ | 30.3 | | | $ | (2.7) | | | $ | 121.4 | | | $ | (5.9) | |
Other Investments As of December 31, 2023 and 2022, other investments related to our private equity investments were $4.4 million. We recognized zero, $1.2 million and zero of realized gains in December 31, 2023, 2022 and 2021, respectively. We recorded the sale of one of our private equity investments within net realized gains on investments in our consolidated statements of operations and comprehensive loss. There were no impairment losses recognized on private equity investments for the years ended December 31, 2023, 2022 and 2021. The following table reflects the gross and net realized gains and losses on short-term investments, available-for-sale fixed maturities and other investments that have been included in the consolidated statements of operations and comprehensive loss for the years ended December 31, 2023, 2022 and 2021: | | | | | | | | | | | | | | | | | | | | | For the Years Ended December 31, | | 2023 | | 2022 | | 2021 | | | | (dollars in millions) | | | | Realized gains on investments | $ | — | | | $ | 1.2 | | | $ | 2.5 | | | | | Realized losses on investments | — | | | (0.7) | | | (0.1) | | | | | Net realized gains on investments | $ | — | | | $ | 0.5 | | | $ | 2.4 | | | |
The following table sets forth the amortized cost and fair value of short-term investments and available-for-sale fixed maturity securities by contractual maturity at December 31, 2023: | | | | | | | | | | | | | 2023 | | Amortized Cost | | Fair Value | | (dollars in millions) | | Due in one year or less | $ | 25.7 | | | $ | 25.4 | | | Due after one year through five years | 110.4 | | | 108.7 | | | Due five years through 10 years | 16.5 | | | 16.5 | | | Due after 10 years | 16.7 | | | 16.2 | | | Total | $ | 169.3 | | | $ | 166.8 | |
The following table sets forth the components of net investment income for the years ended December 31, 2023, 2022 and 2021: | | | | | | | | | | | | | | | | | | | | | For the Years Ended December 31, | | 2023 | | 2022 | | 2021 | | | | (dollars in millions) | | | | Interest on bonds | $ | 4.8 | | | $ | 2.4 | | | $ | 2.4 | | | | | Interest on deposits and cash equivalents | 28.0 | | | 5.7 | | | 1.1 | | | | Other investments(1) | — | | | — | | | 3.8 | | | | | Total | 32.8 | | | 8.1 | | | 7.3 | | | | | Investment expense | (2.6) | | | (1.9) | | | (2.3) | | | | | Net investment income | $ | 30.2 | | | $ | 6.2 | | | $ | 5.0 | | | |
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(1) Unrealized gains resulting from observable price changes related to our private equity investments. The following tables summarize the credit ratings of short-term investments and available-for-sale fixed maturity securities at December 31, 2023 and 2022: | | | | | | | | | | | | | | | | | | | December 31, 2023 | | Amortized Cost | | Fair Value | | % of Total
Fair Value | | S&P Global rating or equivalent | (dollars in millions) | | AAA | $ | 53.0 | | | $ | 52.1 | | | 31.2 | % | | AA+, AA, AA-, A-1 | 59.4 | | | 58.8 | | | 35.3 | | | A+, A, A- | 42.1 | | | 41.2 | | | 24.7 | | | BBB+, BBB, BBB- | 14.8 | | | 14.7 | | | 8.8 | | | Total | $ | 169.3 | | | $ | 166.8 | | | 100.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2022 | | Amortized Cost | | Fair Value | | % of Total
Fair Value | | S&P Global rating or equivalent | (dollars in millions) | | AAA | $ | 62.5 | | | $ | 59.9 | | | 46.5 | % | | AA+, AA, AA-, A-1 | 19.9 | | | 19.1 | | 14.8 | | | A+, A, A- | 38.4 | | | 36.5 | | 28.3 | | | BBB+, BBB, BBB- | 13.8 | | | 13.3 | | 10.4 | | | Total | $ | 134.6 | | | $ | 128.8 | | | 100.0 | % |
Pursuant to certain regulatory requirements, we are required to hold assets on deposit with various state insurance departments for the benefit of policyholders. These special deposits are included in available-for-sale fixed maturity securities on the consolidated balance sheets. As of December 31, 2023 and 2022, these required deposits had an amortized cost of $9.5 million and $11.7 million, respectively, and fair value of $9.4 million and $11.3 million, respectively.
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