
As of September 30, 2023 (in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Fixed maturity securities, available-for-sale, at fair value:
Government obligations	$	2,199	$	—	$	(6)	$	2,193
General obligations of U.S. states, territories and political subdivisions	9,452		—		(260)		9,192
Special revenue issuer obligations of U.S. states, territories and political subdivisions	26,886		3		(527)		26,362
Corporate debt securities	27,229		250		(586)		26,893
Total	$	65,766	$	253	$	(1,379)	$	64,640


As of December 31, 2022 (in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Fixed maturity securities, available-for-sale, at fair value:
Government obligations	$	4,329	$	—	$	(7)	$	4,322
General obligations of U.S. states, territories and political subdivisions	8,561		21		(36)		8,546
Special revenue issuer obligations of U.S. states, territories and political subdivisions	30,123		106		(219)		30,010
Corporate debt securities	10,762		417		(68)		11,111
Total	$	53,775	$	544	$	(330)	$	53,989


	Available-for-Sale
(in thousands)	Amortized Cost		Estimated Fair Value
Due in one year or less	$	16,207	$	16,282
Due one year through five years	26,465		25,963
Due five years through ten years	15,473		15,022
Due after ten years	7,621		7,373
Total	$	65,766	$	64,640

The following table presents the gross unrealized losses on fixed maturity securities and the estimated fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous loss position at September 30, 2023 and December 31, 2022:


	Less than 12 Months				12 Months or Longer				Total
As of September 30, 2023 (in thousands)	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
Government obligations	$	2	$	(6)	$	—	$	—	$	2	$	(6)
General obligations of U.S. states, territories and political subdivisions	9,094		(256)		98		(4)		9,192		(260)
Special revenue issuer obligations of U.S. states, territories and political subdivisions	15,800		(263)		4,385		(264)		20,185		(527)
Corporate debt securities	18,677		(577)		491		(9)		19,168		(586)
Total	$	43,573	$	(1,102)	$	4,974	$	(277)	$	48,547	$	(1,379)


	Less than 12 Months				12 Months or Longer				Total
As of December 31, 2022 (in thousands)	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
Government obligations	$	4,322	$	(7)	$	—	$	—	$	4,322	$	(7)
General obligations of U.S. states, territories and political subdivisions	3,221		(36)		—		—		3,221		(36)
Special revenue issuer obligations of U.S. states, territories and political subdivisions	12,568		(216)		1,100		(3)		13,668		(219)
Corporate debt securities	6,498		(68)		—		—		6,498		(68)
Total	$	26,609	$	(327)	$	1,100	$	(3)	$	27,709	$	(330)

Management evaluates available-for-sale fixed maturity securities in unrealized loss positions to determine whether the impairment is due to credit-related factors or noncredit-related factors. The decline in estimated fair value of the fixed maturity securities can be attributed primarily to changes in market interest rates and changes in credit spreads over Treasury securities.

Factors considered in determining whether a loss is credit-related include the financial condition and prospects of the issuer (including credit ratings and analyst reports) and macro-economic changes. A total of 98 and 51 fixed maturity securities had unrealized losses at September 30, 2023 and December 31, 2022, respectively. The Company does not intend to sell any of these securities and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost. The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. The Company believes that the unrealized losses detailed in the previous table are due to noncredit-related factors, including changes in market interest rates and other market conditions, and therefore the unrealized loss is recorded in accumulated other comprehensive (loss) income.

Reviews of the values of fixed maturity securities are inherently uncertain and the value of the investment may not fully recover, or may decline in future periods, resulting in a realized loss. The Company recorded impairment charges related to fixed maturity securities totaling $96 thousand and $208 thousand for the three- and nine-month periods ended September 30, 2023, respectively, and $35 thousand and $162 thousand for the three- and nine-month periods ended September 30, 2022, respectively. Expenses related to impairments are recorded in net investment (losses) gains in the unaudited Consolidated Statements of Operations when recognized.


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2023		2022		2023		2022
Gross realized gains from securities:
Common stocks	$	1,749	$	2,564	$	15,449	$	7,120
Total	$	1,749	$	2,564	$	15,449	$	7,120
Gross realized losses from securities:
Corporate debt securities	$	—	$	(58)	$	—	$	(104)
Common stocks	(77)		(20)		(400)		(209)
Write-down of securities	(96)		(35)		(208)		(162)
Total	$	(173)	$	(113)	$	(608)	$	(475)
Net realized gains from securities	$	1,576	$	2,451	$	14,841	$	6,645
Gross realized gains (losses) on other investments:
Gains on other investments	$	5	$	30	$	5	$	30
Losses on other investments	(4)		—		(120)		(409)
Total	$	1	$	30	$	(115)	$	(379)
Net realized investment gains	$	1,577	$	2,481	$	14,726	$	6,266
Changes in the estimated fair value of equity security investments	$	(2,392)	$	(4,635)	$	(14,006)	$	(22,722)
Net investment (losses) gains	$	(815)	$	(2,154)	$	720	$	(16,456)

The Company holds investments in variable interest entities ("VIEs") that are not consolidated in the Company's financial statements as the Company is not the primary beneficiary. These entities are considered VIEs as the equity investors at risk, including the Company, do not have the power over the activities that most significantly impact the economic performance of the entities; this power resides with a third-party general partner or managing member that cannot be removed except for cause and no participation rights exist. The following table sets forth details about the Company's variable interest investments in VIEs, which are structured either as limited partnerships ("LPs") or limited liability companies ("LLCs"), as of September 30, 2023:


(in thousands)	Balance Sheet Classification	Carrying Value		Estimated Fair Value		Maximum Potential Loss (a)
Real estate LLCs or LPs	Other investments	$	4,346	$	4,762	$	5,658
Small business investment LPs	Other investments	9,298		10,914		13,080
Total		$	13,644	$	15,676	$	18,738


(a)						Maximum potential loss is calculated as the total investment in the LLC or LP, including any capital commitments that may have not yet been called. The Company is not exposed to any loss beyond the total commitment of its investment.

The Financial Accounting Standards Board ("FASB") has established a valuation hierarchy for disclosure of the inputs used to measure estimated fair value of financial assets and liabilities, such as securities. This hierarchy categorizes the inputs into three broad levels as follows. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on the Company’s own assumptions intended to represent market participant assumptions used to measure assets and liabilities at fair value.

A financial instrument’s classification within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement – consequently, if there are multiple significant valuation inputs that are categorized in different levels of the hierarchy, the instrument’s hierarchy level is the lowest level (with Level 3 being the lowest level) within which any significant input falls.

The Level 2 category includes fixed maturity securities such as corporate debt securities, U.S. government obligations, and obligations of U.S. states, territories, and political subdivisions. Estimated fair value is principally based on market values obtained from a third-party pricing service. Factors that are used in determining estimated fair market value include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. The Company receives one quote per security from a third-party pricing service, although as discussed below, the Company does consult other pricing resources when confirming that the prices it obtains reflect the fair values of the instruments in accordance with GAAP. Generally, quotes obtained from the pricing service for instruments classified as Level 2 are not adjusted and are not binding. As of September 30, 2023 and December 31, 2022, the Company did not adjust any Level 2 fair values.

A number of the Company’s investment grade corporate debt securities are frequently traded in active markets, and trading prices are consequently available for these securities. However, these securities are classified as Level 2 because the pricing service from which the Company has obtained estimated fair values for these instruments uses valuation models that use observable market inputs in addition to trading prices. Substantially all of the input assumptions used in the service’s model are observable in the marketplace or can be derived or supported by observable market data.

In the measurement of the estimated fair value of certain financial instruments, other valuation techniques were utilized if quoted market prices were not available. These derived fair value estimates are significantly affected by the assumptions used. Additionally, certain financial instruments, including those related to insurance contracts, pension and other postretirement benefits, and equity method investments are excluded from the scope of disclosures.

The measurement alternative method requires investments without readily determinable fair values to be recorded at cost, less impairments, and plus or minus any changes resulting from observable price changes. The Company monitors any events or changes in circumstances that may have had a significant adverse effect on the fair value of these investments and makes any necessary adjustments.

Notes receivable are recorded at amortized cost and are included in prepaid expenses and other receivables in the unaudited Consolidated Balance Sheets. The amortized cost is the amount at which a receivable is originated and adjusted for applicable accrued interest, accretion, or amortization of premium, discount, and net deferred fees or costs, collection of cash, writeoffs, foreign exchange, and fair value hedge accounting adjustments. The Company monitors any events or changes in circumstances that may have had a significant adverse effect on the fair value of these investments and makes any necessary adjustments.


As of September 30, 2023 (in thousands)	Level 1		Level 2 *		Level 3		Total
Fixed maturity securities:
Obligations of U.S. states, territories and political subdivisions	$	2,193	$	35,554	$	—	$	37,747
Corporate debt securities	—		26,893		—		26,893
Total	$	2,193	$	62,447	$	—	$	64,640


As of December 31, 2022 (in thousands)	Level 1		Level 2 *		Level 3		Total
Fixed maturity securities:
Obligations of U.S. states, territories and political subdivisions	$	4,322	$	38,556	$	—	$	42,878
Corporate debt securities	—		11,111		—		11,111
Total	$	4,322	$	49,667	$	—	$	53,989


As of September 30, 2023 (in thousands)	Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	30,411	$	—	$	—	$	30,411
Accrued interest and dividends	1,111		—		—		1,111
Equity securities, at fair value:
Common stocks	31,831		—		—		31,831
Short-term investments:
Money market funds and U.S. Treasury bills	103,959		—		—		103,959
Total	$	167,312	$	—	$	—	$	167,312


As of December 31, 2022 (in thousands)	Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	35,311	$	—	$	—	$	35,311
Accrued interest and dividends	872		—		—		872
Equity securities, at fair value:
Common stocks	51,691		—		—		51,691
Short-term investments:
Money market funds and U.S. Treasury bills	103,649		—		—		103,649
Total	$	191,523	$	—	$	—	$	191,523

To help ensure that estimated fair value determinations are consistent with GAAP, prices from our pricing services go through multiple review processes to ensure appropriate pricing. Pricing procedures and inputs used to price each security include, but are not limited to, the following: unadjusted quoted market prices for identical securities such as stock market closing prices; non-binding quoted prices for identical securities in markets that are not active; interest rates; yield curves observable at commonly quoted intervals; volatility; prepayment speeds; loss severity; credit risks; and default rates. The Company reviews the procedures and inputs used by its pricing services, and verifies a sample of the services’ quotes by comparing them to values obtained from other pricing resources. In the event the Company disagrees with a price provided by its pricing services, the respective service reevaluates the price to corroborate the market information and then reviews inputs to the evaluation in light of potentially new market data.

Certain equity investments under the measurement alternative and notes receivable are measured at estimated fair value on a non-recurring basis and are reviewed for impairment quarterly. If any such investment is determined to be impaired, an impairment charge is recorded against such investment and reflected in the unaudited Consolidated Statements of Operations. There were no impairments of such investments made during the nine-month period ended September 30, 2023 or the twelve-month period ended December 31, 2022. The following table presents assets measured at fair value on a non-recurring basis as of September 30, 2023 and December 31, 2022:


As of September 30, 2023 (in thousands)	Level 1		Level 2		Level 3		Total
Financial assets:
Equity investments in unconsolidated affiliates, measurement alternative	$	—	$	—	$	9,478	$	9,478
Notes receivable	—		—		2,339		2,339
Total	$	—	$	—	$	11,817	$	11,817