Derivative Financial Instruments

12 Months Ended

Dec. 31, 2023

General Discussion of Derivative Instruments and Hedging Activities [Abstract]

Derivative Financial Instruments

Derivative Financial Instruments

The Company is exposed to certain risks relating to its ongoing business operations. The primary risks managed by using derivative instruments are equity price risk and interest rate risk. Equity contracts (options sold) on various equity securities are intended to manage the price risk associated with forecasted purchases or sales of such securities. From time to time, the Company also enters into derivative contracts to enhance returns on its investment portfolio.

The following tables present the location and amounts of derivative fair values in the consolidated balance sheets and derivative gains in the consolidated statements of operations:

	Liability Derivatives
	December 31, 2023		December 31, 2022
	(Amounts in thousands)
Options sold - Other liabilities	$	1,955	$	162
Total derivatives	$	1,955	$	162

	Gains Recognized in Income
	Year Ended December 31,
	2023		2022		2021
	(Amounts in thousands)
Options sold - Net realized investment gains (losses)	$	8,586	$	5,887	$	3,045
Total	$	8,586	$	5,887	$	3,045

Most options sold consist of covered calls. The Company writes covered calls on underlying equity positions held as an enhanced income strategy that is permitted for the Company’s insurance subsidiaries under statutory regulations. The Company manages the risk associated with covered calls through strict capital limitations and asset diversification throughout various industries. For additional disclosures regarding equity contracts, see Note 4. Fair Value Measurements for additional disclosures regarding options sold.