Net realized and unrealized (losses) gains

6 Months Ended

Jun. 30, 2024

Investments, Debt and Equity Securities [Abstract]

Net realized and unrealized (losses) gains

Investments in debt and equity securities. As of June 30, 2024 and December 31, 2023, the net unrealized investment gains relating to investments in equity securities held were $17.8 million and $11.2 million, respectively (refer to Note 5).

The amortized costs and fair values of investments in debt securities are as follows:

	June 30, 2024		December 31, 2023
	Amortized costs	Fair values	Amortized costs	Fair values
	($000 omitted)
Municipal	18,117	17,860	22,201	22,031
Corporate	227,427	215,470	242,656	231,474
Foreign	326,999	316,952	332,723	323,391
U.S. Treasury Bonds	35,153	34,303	33,714	33,340
	607,696	584,585	631,294	610,236

Foreign debt securities consist of Canadian government, provincial and corporate bonds, United Kingdom treasury and corporate bonds, and Mexican government bonds.

Gross unrealized gains and losses on investments in debt securities are as follows:

	June 30, 2024		December 31, 2023
	Gains	Losses	Gains	Losses
	($000 omitted)
Municipal	2	259	—	170
Corporate	417	12,374	764	11,946
Foreign	740	10,787	1,765	11,097
U.S. Treasury Bonds	3	853	106	480
	1,162	24,273	2,635	23,693

Debt securities as of June 30, 2024 mature, according to their contractual terms, as follows (actual maturities may differ due to call or prepayment rights):

	Amortized costs	Fair values
	($000 omitted)
In one year or less	72,579	75,528
After one year through five years	325,691	311,733
After five years through ten years	197,013	186,303
After ten years	12,413	11,021
	607,696	584,585

Gross unrealized losses on investments in debt securities and the fair values of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2024, were:

	Less than 12 months		More than 12 months		Total
	Losses	Fair values	Losses	Fair values	Losses	Fair values
	($000 omitted)
Municipal	31	1,422	228	14,186	259	15,608
Corporate	136	10,580	12,238	188,316	12,374	198,896
Foreign	1,032	67,940	9,755	186,773	10,787	254,713
U.S. Treasury Bonds	139	10,540	714	23,113	853	33,653
	1,338	90,482	22,935	412,388	24,273	502,870

The number of specific debt investment holdings held in an unrealized loss position as of June 30, 2024 was 334. Of these securities, 278 were in unrealized loss positions for more than 12 months. Total gross unrealized investment losses at June 30, 2024 slightly increased compared to December 31, 2023, primarily due to the continuing high interest rate environment which started in late 2022. Since the Company does not intend to sell and will more likely than not maintain each investment security until its maturity or anticipated recovery in value, and no significant credit risk is deemed to exist, these investments are not considered as credit-impaired. The Company believes its investment portfolio is diversified and expects no material loss to result from the failure to perform by issuers of the debt securities it holds. Investments made by the Company are not collateralized.

Gross unrealized losses on investments in debt securities and the fair values of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2023, were:

	Less than 12 months		More than 12 months		Total
	Losses	Fair values	Losses	Fair values	Losses	Fair values
	($000 omitted)
Municipal	50	13,022	120	8,383	170	21,405
Corporate	68	4,808	11,878	208,971	11,946	213,779
Foreign	472	31,918	10,625	216,135	11,097	248,053
U.S. Treasury Bonds	327	20,895	153	4,815	480	25,710
	917	70,643	22,776	438,304	23,693	508,947

Net realized and unrealized (losses) gains. Realized and unrealized gains and losses are detailed as follows:

	Three Months Ended   June 30,		Six Months Ended   June 30,
	2024	2023	2024	2023
	($000 omitted)
Realized gains	116	278	218	339
Realized losses	(89)	(3,430)	(380)	(4,177)
Net unrealized investment (losses) gains recognized on equity securities still held	(541)	2,047	6,686	955
	(514)	(1,105)	6,524	(2,883)

Realized losses during the second quarter and first six months of 2023 included a $3.2 million contingent receivable loss adjustment related to a previous disposition of a business.

Investment gains and losses recognized related to investments in equity securities are as follows:

	Three Months Ended   June 30,		Six Months Ended   June 30,
	2024	2023	2024	2023
	($000 omitted)
Net investment (losses) gains recognized on equity securities during the period	(541)	1,988	6,693	232
Less: Net realized (losses) gains on equity securities sold during the period	—	(59)	7	(723)
Net unrealized investment (losses) gains recognized on equity securities still held	(541)	2,047	6,686	955

Proceeds from sales of investments in securities are as follows: 

	Three Months Ended   June 30,		Six Months Ended   June 30,
	2024	2023	2024	2023
	($000 omitted)
Proceeds from sales of debt securities	1	7,433	20,768	14,879
Proceeds from sales of equity securities	96	5,283	203	24,609
Total proceeds from sales of investments in securities	97	12,716	20,971	39,488