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Investments
 9 Months Ended
Sep. 30, 2024
Investments, Debt and Equity Securities [Abstract]  
Investments
2. Investments
The amortized cost and fair value of fixed maturities securities and short-term investments are as follows (in millions):
September 30, 2024
Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Fixed maturities available-for-sale:
U.S. government and agencies$17.5 $0.2 $(0.1)$17.6 
States and other territories8.1 — (0.2)7.9 
Corporate securities133.6 2.3 (0.6)135.3 
Foreign securities0.9 — — 0.9 
Residential mortgage-backed securities19.1 0.2 (1.0)18.3 
Commercial mortgage-backed securities7.5 — (0.3)7.2 
Asset backed securities14.6 0.1 (0.1)14.6 
Total fixed maturities available-for-sale201.3 2.8 (2.3)201.8 
Short-term investments:
U.S. government and agencies105.0 — — 105.0 
Commercial paper17.1 — — 17.1 
Corporate securities30.3 0.1 — 30.4 
Total short-term investments152.4 0.1 — 152.5 
Total$353.7 $2.9 $(2.3)$354.3 
December 31, 2023
Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Fixed maturities available-for-sale:
U.S. government and agencies$18.6 $— $(0.2)$18.4 
States and other territories9.3 — (0.4)8.9 
Corporate securities91.3 1.1 (1.3)91.1 
Foreign securities0.9 — — 0.9 
Residential mortgage-backed securities20.7 0.1 (1.3)19.5 
Commercial mortgage-backed securities7.7 — (0.6)7.1 
Asset backed securities16.1 — (0.3)15.8 
Total fixed maturities available-for-sale164.6 1.2 (4.1)161.7 
Short-term investments:
U.S. government and agencies137.7 — — 137.7 
Commercial paper34.5 — — 34.5 
Corporate securities14.9 — — 14.9 
Total short-term investments187.1 — — 187.1 
Total$351.7 $1.2 $(4.1)$348.8 
The following tables present the gross unrealized losses and related fair values for the Company’s investments in available-for-sale debt securities and short-term investments, grouped by duration of time in a continuous unrealized loss position as of September 30, 2024, and December 31, 2023 (in millions):

September 30, 2024
Less than 12 months12 months or moreTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Fixed maturities available-for-sale:
U.S. government and agencies$1.2 $— $2.4 $(0.1)$3.7 $(0.1)
States and other territories— — 5.5 (0.2)5.5 (0.2)
Corporate securities9.3 (0.1)30.4 (0.5)39.6 (0.6)
Foreign securities0.9 — 0.9 — 
Residential mortgage-backed securities— — 10.8 (1.0)10.8 (1.0)
Commercial mortgage-backed securities— — 4.1 (0.3)4.1 (0.3)
Asset backed securities— — 5.8 (0.1)5.8 (0.1)
Short-term investments:
U.S. government and agencies— — — — — — 
Commercial paper2.3 — — — 2.3 — 
Corporate securities7.5 — — — 7.5 — 
Total $20.3 $(0.1)$59.9 $(2.2)$80.2 $(2.3)
December 31, 2023
Less than 12 months12 months or moreTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Fixed maturities available-for-sale:
U.S. government and agencies$4.3 $— $10.5 $(0.2)$14.8 $(0.2)
States and other territories1.5 — 7.4 (0.4)8.9 (0.4)
Corporate securities5.7 — 37.4 (1.3)43.1 (1.3)
Foreign securities— — 0.9 — 0.9 — 
Residential mortgage-backed securities— — 11.6 (1.3)11.6 (1.3)
Commercial mortgage-backed securities0.4 — 5.8 (0.6)6.2 (0.6)
Asset backed securities1.6 — 8.2 (0.3)9.8 (0.3)
Short-term investments:
U.S. government and agencies137.7 — — — 137.7 — 
Commercial paper34.5 — — — 34.5 — 
Corporate securities
14.9 — — — 14.9 — 
Total$200.6 $— $81.8 $(4.1)$282.4 $(4.1)
The Company has determined that unrealized losses as of September 30, 2024 and December 31, 2023 resulted from the interest rate environment, rather than a deterioration of the creditworthiness of the issuers. Therefore, an allowance for credit losses was not necessary as it is more likely than not that the Company will not be required to sell the investments before the recovery of the amortized cost basis or until maturity. As of September 30, 2024, none of the Company’s fixed maturity portfolio was unrated or rated below investment grade.
The amortized cost and fair value of fixed maturities securities by contractual maturity are as follows (in millions):
September 30, 2024
Amortized CostFair Value
Due to mature:
One year or less$30.0 $29.7 
After one year through five years108.1 108.6 
After five years17.9 18.9 
After ten years4.1 4.5 
Residential mortgage-backed securities19.1 18.3 
Commercial mortgage-backed securities7.5 7.2 
Asset backed securities14.6 14.6 
Total fixed maturities available-for-sale$201.3 $201.8 
Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.
Net realized gains and losses on fixed maturity securities were insignificant for the three and nine months ended September 30, 2024 and 2023, respectively.
The Company’s net investment income is comprised of the following (in millions):
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Interest on cash and cash equivalents$2.3 $2.2 $7.3 $4.7 
Fixed maturities income1.9 1.5 5.6 4.1 
Short-term investment income2.1 2.1 5.6 8.1 
Total gross investment income6.3 5.8 18.5 16.9 
Investment expenses(0.1)(0.1)(0.3)(0.4)
Net investment income$6.2 $5.7 $18.2 $16.5 
Pursuant to certain regulatory requirements, the Company is required to hold assets on deposit with various state insurance departments for the benefit of policyholders. These special deposits are included in cash and cash equivalents, fixed maturities, or short-term investments on the condensed consolidated balance sheets. The carrying value of securities on deposit with state regulatory authorities total $9.3 million and $12.9 million as of September 30, 2024 and December 31, 2023, respectively.