tig-20220630
false2022Q20001801754--12-3133.3333.3333.3333.3333.3333.3300018017542022-01-012022-06-3000018017542022-08-04xbrli:shares00018017542022-06-30iso4217:USD00018017542021-12-31iso4217:USDxbrli:shares00018017542022-04-012022-06-3000018017542021-04-012021-06-3000018017542021-01-012021-06-300001801754us-gaap:CommonStockMember2022-03-310001801754us-gaap:AdditionalPaidInCapitalMember2022-03-310001801754us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310001801754us-gaap:RetainedEarningsMember2022-03-3100018017542022-03-310001801754us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-300001801754us-gaap:CommonStockMember2022-04-012022-06-300001801754us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-012022-06-300001801754us-gaap:RetainedEarningsMember2022-04-012022-06-300001801754us-gaap:CommonStockMember2022-06-300001801754us-gaap:AdditionalPaidInCapitalMember2022-06-300001801754us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300001801754us-gaap:RetainedEarningsMember2022-06-300001801754us-gaap:CommonStockMember2021-03-310001801754us-gaap:AdditionalPaidInCapitalMember2021-03-310001801754us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310001801754us-gaap:RetainedEarningsMember2021-03-3100018017542021-03-310001801754us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300001801754us-gaap:CommonStockMember2021-04-012021-06-300001801754us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300001801754us-gaap:RetainedEarningsMember2021-04-012021-06-300001801754us-gaap:CommonStockMember2021-06-300001801754us-gaap:AdditionalPaidInCapitalMember2021-06-300001801754us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300001801754us-gaap:RetainedEarningsMember2021-06-3000018017542021-06-300001801754us-gaap:CommonStockMember2021-12-310001801754us-gaap:AdditionalPaidInCapitalMember2021-12-310001801754us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001801754us-gaap:RetainedEarningsMember2021-12-310001801754us-gaap:AdditionalPaidInCapitalMember2022-01-012022-06-300001801754us-gaap:CommonStockMember2022-01-012022-06-300001801754us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-06-300001801754us-gaap:RetainedEarningsMember2022-01-012022-06-300001801754us-gaap:CommonStockMember2020-12-310001801754us-gaap:AdditionalPaidInCapitalMember2020-12-310001801754us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001801754us-gaap:RetainedEarningsMember2020-12-3100018017542020-12-310001801754us-gaap:AdditionalPaidInCapitalMember2021-01-012021-06-300001801754us-gaap:CommonStockMember2021-01-012021-06-300001801754us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-06-300001801754us-gaap:RetainedEarningsMember2021-01-012021-06-300001801754tig:WesternIntegratedCareLLCMember2021-07-06xbrli:pure0001801754tig:WesternIntegratedCareLLCMember2021-07-062021-07-060001801754us-gaap:USGovernmentDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2022-06-300001801754us-gaap:USGovernmentDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2022-06-300001801754us-gaap:USGovernmentDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2022-06-300001801754us-gaap:USGovernmentDebtSecuritiesMember2022-06-300001801754us-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2022-06-300001801754us-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2022-06-300001801754us-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2022-06-300001801754us-gaap:ForeignGovernmentDebtSecuritiesMember2022-06-300001801754tig:StatesTerritoriesAndPossessionsDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2022-06-300001801754tig:StatesTerritoriesAndPossessionsDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2022-06-300001801754tig:StatesTerritoriesAndPossessionsDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2022-06-300001801754tig:StatesTerritoriesAndPossessionsDebtSecuritiesMember2022-06-300001801754tig:PoliticalSubdivisionsOfStatesTerritoriesAndPossessionsDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2022-06-300001801754tig:PoliticalSubdivisionsOfStatesTerritoriesAndPossessionsDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2022-06-300001801754tig:PoliticalSubdivisionsOfStatesTerritoriesAndPossessionsDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2022-06-300001801754tig:PoliticalSubdivisionsOfStatesTerritoriesAndPossessionsDebtSecuritiesMember2022-06-300001801754tig:SpecialRevenueAndSpecialAssessmentObligationsDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2022-06-300001801754tig:SpecialRevenueAndSpecialAssessmentObligationsDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2022-06-300001801754tig:SpecialRevenueAndSpecialAssessmentObligationsDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2022-06-300001801754tig:SpecialRevenueAndSpecialAssessmentObligationsDebtSecuritiesMember2022-06-300001801754tig:IndustrialAndPublicUtilitiesDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2022-06-300001801754us-gaap:FairValueInputsLevel2Membertig:IndustrialAndPublicUtilitiesDebtSecuritiesMember2022-06-300001801754tig:IndustrialAndPublicUtilitiesDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2022-06-300001801754tig:IndustrialAndPublicUtilitiesDebtSecuritiesMember2022-06-300001801754us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel1Member2022-06-300001801754us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel2Member2022-06-300001801754us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel3Member2022-06-300001801754us-gaap:CommercialMortgageBackedSecuritiesMember2022-06-300001801754us-gaap:ResidentialMortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel1Member2022-06-300001801754us-gaap:FairValueInputsLevel2Memberus-gaap:ResidentialMortgageBackedSecuritiesMember2022-06-300001801754us-gaap:ResidentialMortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel3Member2022-06-300001801754us-gaap:ResidentialMortgageBackedSecuritiesMember2022-06-300001801754us-gaap:OtherDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2022-06-300001801754us-gaap:FairValueInputsLevel2Memberus-gaap:OtherDebtSecuritiesMember2022-06-300001801754us-gaap:OtherDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2022-06-300001801754us-gaap:OtherDebtSecuritiesMember2022-06-300001801754us-gaap:FairValueInputsLevel1Member2022-06-300001801754us-gaap:FairValueInputsLevel2Member2022-06-300001801754us-gaap:FairValueInputsLevel3Member2022-06-300001801754us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel1Member2022-06-300001801754us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel2Member2022-06-300001801754us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel3Member2022-06-300001801754us-gaap:EquitySecuritiesMember2022-06-300001801754tig:AvailableForSaleAndEquitySecuritiesMemberus-gaap:FairValueInputsLevel1Member2022-06-300001801754us-gaap:FairValueInputsLevel2Membertig:AvailableForSaleAndEquitySecuritiesMember2022-06-300001801754us-gaap:FairValueInputsLevel3Membertig:AvailableForSaleAndEquitySecuritiesMember2022-06-300001801754tig:AvailableForSaleAndEquitySecuritiesMember2022-06-300001801754us-gaap:RevolvingCreditFacilityMemberus-gaap:FairValueInputsLevel1Member2022-06-300001801754us-gaap:FairValueInputsLevel2Memberus-gaap:RevolvingCreditFacilityMember2022-06-300001801754us-gaap:RevolvingCreditFacilityMemberus-gaap:FairValueInputsLevel3Member2022-06-300001801754us-gaap:RevolvingCreditFacilityMember2022-06-300001801754us-gaap:USGovernmentDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2021-12-310001801754us-gaap:USGovernmentDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2021-12-310001801754us-gaap:USGovernmentDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2021-12-310001801754us-gaap:USGovernmentDebtSecuritiesMember2021-12-310001801754us-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2021-12-310001801754us-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2021-12-310001801754us-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2021-12-310001801754us-gaap:ForeignGovernmentDebtSecuritiesMember2021-12-310001801754tig:StatesTerritoriesAndPossessionsDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2021-12-310001801754tig:StatesTerritoriesAndPossessionsDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2021-12-310001801754tig:StatesTerritoriesAndPossessionsDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2021-12-310001801754tig:StatesTerritoriesAndPossessionsDebtSecuritiesMember2021-12-310001801754tig:PoliticalSubdivisionsOfStatesTerritoriesAndPossessionsDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2021-12-310001801754tig:PoliticalSubdivisionsOfStatesTerritoriesAndPossessionsDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2021-12-310001801754tig:PoliticalSubdivisionsOfStatesTerritoriesAndPossessionsDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2021-12-310001801754tig:PoliticalSubdivisionsOfStatesTerritoriesAndPossessionsDebtSecuritiesMember2021-12-310001801754tig:SpecialRevenueAndSpecialAssessmentObligationsDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2021-12-310001801754tig:SpecialRevenueAndSpecialAssessmentObligationsDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2021-12-310001801754tig:SpecialRevenueAndSpecialAssessmentObligationsDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2021-12-310001801754tig:SpecialRevenueAndSpecialAssessmentObligationsDebtSecuritiesMember2021-12-310001801754tig:IndustrialAndPublicUtilitiesDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2021-12-310001801754us-gaap:FairValueInputsLevel2Membertig:IndustrialAndPublicUtilitiesDebtSecuritiesMember2021-12-310001801754tig:IndustrialAndPublicUtilitiesDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2021-12-310001801754tig:IndustrialAndPublicUtilitiesDebtSecuritiesMember2021-12-310001801754us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel1Member2021-12-310001801754us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel2Member2021-12-310001801754us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel3Member2021-12-310001801754us-gaap:CommercialMortgageBackedSecuritiesMember2021-12-310001801754us-gaap:ResidentialMortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel1Member2021-12-310001801754us-gaap:FairValueInputsLevel2Memberus-gaap:ResidentialMortgageBackedSecuritiesMember2021-12-310001801754us-gaap:ResidentialMortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel3Member2021-12-310001801754us-gaap:ResidentialMortgageBackedSecuritiesMember2021-12-310001801754us-gaap:OtherDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2021-12-310001801754us-gaap:FairValueInputsLevel2Memberus-gaap:OtherDebtSecuritiesMember2021-12-310001801754us-gaap:OtherDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2021-12-310001801754us-gaap:OtherDebtSecuritiesMember2021-12-310001801754tig:HybridSecuritiesMemberus-gaap:FairValueInputsLevel1Member2021-12-310001801754tig:HybridSecuritiesMemberus-gaap:FairValueInputsLevel2Member2021-12-310001801754tig:HybridSecuritiesMemberus-gaap:FairValueInputsLevel3Member2021-12-310001801754tig:HybridSecuritiesMember2021-12-310001801754us-gaap:FairValueInputsLevel1Member2021-12-310001801754us-gaap:FairValueInputsLevel2Member2021-12-310001801754us-gaap:FairValueInputsLevel3Member2021-12-310001801754us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel1Member2021-12-310001801754us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel2Member2021-12-310001801754us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel3Member2021-12-310001801754us-gaap:EquitySecuritiesMember2021-12-310001801754tig:AvailableForSaleAndEquitySecuritiesMemberus-gaap:FairValueInputsLevel1Member2021-12-310001801754us-gaap:FairValueInputsLevel2Membertig:AvailableForSaleAndEquitySecuritiesMember2021-12-310001801754us-gaap:FairValueInputsLevel3Membertig:AvailableForSaleAndEquitySecuritiesMember2021-12-310001801754tig:AvailableForSaleAndEquitySecuritiesMember2021-12-310001801754us-gaap:RevolvingCreditFacilityMemberus-gaap:FairValueInputsLevel1Member2021-12-310001801754us-gaap:FairValueInputsLevel2Memberus-gaap:RevolvingCreditFacilityMember2021-12-310001801754us-gaap:RevolvingCreditFacilityMemberus-gaap:FairValueInputsLevel3Member2021-12-310001801754us-gaap:RevolvingCreditFacilityMember2021-12-310001801754tig:HybridSecuritiesMember2022-06-300001801754us-gaap:FixedMaturitiesMember2022-04-012022-06-300001801754us-gaap:FixedMaturitiesMember2021-04-012021-06-300001801754us-gaap:FixedMaturitiesMember2022-01-012022-06-300001801754us-gaap:FixedMaturitiesMember2021-01-012021-06-300001801754us-gaap:EmbeddedDerivativeFinancialInstrumentsMember2022-04-012022-06-300001801754us-gaap:EmbeddedDerivativeFinancialInstrumentsMember2021-04-012021-06-300001801754us-gaap:EmbeddedDerivativeFinancialInstrumentsMember2022-01-012022-06-300001801754us-gaap:EmbeddedDerivativeFinancialInstrumentsMember2021-01-012021-06-300001801754us-gaap:EquitySecuritiesMember2022-04-012022-06-300001801754us-gaap:EquitySecuritiesMember2021-04-012021-06-300001801754us-gaap:EquitySecuritiesMember2022-01-012022-06-300001801754us-gaap:EquitySecuritiesMember2021-01-012021-06-300001801754tig:EquitySecuritiesUnrealizedLossMember2022-04-012022-06-300001801754tig:EquitySecuritiesUnrealizedLossMember2021-04-012021-06-300001801754tig:EquitySecuritiesUnrealizedLossMember2022-01-012022-06-300001801754tig:EquitySecuritiesUnrealizedLossMember2021-01-012021-06-300001801754us-gaap:ShortTermInvestmentsMember2022-04-012022-06-300001801754us-gaap:ShortTermInvestmentsMember2021-04-012021-06-300001801754us-gaap:ShortTermInvestmentsMember2022-01-012022-06-300001801754us-gaap:ShortTermInvestmentsMember2021-01-012021-06-300001801754us-gaap:InvestmentIncomeMember2022-04-012022-06-300001801754us-gaap:InvestmentIncomeMember2022-01-012022-06-300001801754us-gaap:InvestmentIncomeMember2021-04-012021-06-300001801754us-gaap:InvestmentIncomeMember2021-01-012021-06-300001801754tig:TreanIntermediariesMember2020-01-030001801754tig:TreanIntermediariesMember2020-01-020001801754tig:TreanIntermediariesMember2020-01-032020-01-030001801754tig:TreanIntermediariesMember2021-07-012021-09-300001801754tig:TreanIntermediariesMember2022-04-012022-06-300001801754tig:TreanIntermediariesMember2021-04-012021-06-300001801754tig:TreanIntermediariesMember2022-01-012022-06-300001801754tig:TreanIntermediariesMember2021-01-012021-06-300001801754tig:SecuredCreditFacilityMember2022-06-300001801754tig:SecuredCreditFacilityMember2021-12-310001801754tig:AmendedAndRestatedCreditAgreementMembertig:SecuredCreditFacilityMember2020-07-162020-07-160001801754tig:TermLoanMembertig:SecuredCreditFacilityMember2020-07-160001801754tig:AmendedAndRestatedCreditAgreementMembertig:SecuredCreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2020-07-160001801754tig:AmendedAndRestatedCreditAgreementMembertig:SecuredCreditFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMember2020-07-162020-07-160001801754tig:AmendedAndRestatedCreditAgreementMembertig:SecuredCreditFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMember2022-06-302022-06-300001801754tig:AmendedAndRestatedCreditAgreementMembertig:SecuredCreditFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMember2021-12-312021-12-310001801754tig:AmendedAndRestatedCreditAgreementMembertig:SecuredCreditFacilityMembersrt:MinimumMember2022-01-012022-06-300001801754srt:MaximumMembertig:AmendedAndRestatedCreditAgreementMembertig:SecuredCreditFacilityMember2022-01-012022-06-300001801754tig:SecuredCreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2022-04-012022-06-300001801754tig:SecuredCreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2021-04-012021-06-300001801754tig:SecuredCreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2022-01-012022-06-300001801754tig:SecuredCreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2021-01-012021-06-300001801754tig:BrokerageMember2022-04-012022-06-300001801754tig:BrokerageMember2021-04-012021-06-300001801754tig:BrokerageMember2022-01-012022-06-300001801754tig:BrokerageMember2021-01-012021-06-300001801754tig:ManagingGeneralAgentFeesMember2022-04-012022-06-300001801754tig:ManagingGeneralAgentFeesMember2021-04-012021-06-300001801754tig:ManagingGeneralAgentFeesMember2022-01-012022-06-300001801754tig:ManagingGeneralAgentFeesMember2021-01-012021-06-300001801754tig:ThirdPartyAdministratorFeesMember2022-04-012022-06-300001801754tig:ThirdPartyAdministratorFeesMember2021-04-012021-06-300001801754tig:ThirdPartyAdministratorFeesMember2022-01-012022-06-300001801754tig:ThirdPartyAdministratorFeesMember2021-01-012021-06-300001801754tig:ConsultingAndOtherFeeBasedRevenueMember2022-04-012022-06-300001801754tig:ConsultingAndOtherFeeBasedRevenueMember2021-04-012021-06-300001801754tig:ConsultingAndOtherFeeBasedRevenueMember2022-01-012022-06-300001801754tig:ConsultingAndOtherFeeBasedRevenueMember2021-01-012021-06-300001801754srt:MinimumMember2022-06-300001801754srt:MaximumMember2022-06-300001801754us-gaap:RestrictedStockUnitsRSUMember2022-04-012022-06-300001801754us-gaap:RestrictedStockUnitsRSUMember2021-04-012021-06-300001801754us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-06-300001801754us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-06-300001801754us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-04-012022-06-300001801754us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-04-012021-06-300001801754us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-01-012022-06-300001801754us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-01-012021-06-300001801754tig:A2020OmnibusIncentivePlanMember2022-06-300001801754us-gaap:EmployeeStockOptionMember2022-04-012022-06-300001801754us-gaap:EmployeeStockOptionMember2021-04-012021-06-300001801754us-gaap:EmployeeStockOptionMember2022-01-012022-06-300001801754us-gaap:EmployeeStockOptionMember2021-01-012021-06-300001801754us-gaap:EmployeeStockOptionMemberus-gaap:ShareBasedPaymentArrangementEmployeeMember2022-01-012022-06-300001801754us-gaap:EmployeeStockOptionMember2022-06-300001801754us-gaap:RestrictedStockUnitsRSUMember2022-04-012022-06-300001801754us-gaap:RestrictedStockUnitsRSUMember2021-04-012021-06-300001801754us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-06-300001801754us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-06-300001801754us-gaap:RestrictedStockUnitsRSUMember2022-06-300001801754tig:PerformanceStockUnitsMember2022-01-012022-06-300001801754us-gaap:ShareBasedCompensationAwardTrancheOneMembertig:PerformanceStockUnitsMembersrt:MinimumMember2022-06-300001801754srt:MaximumMembertig:ShareBasedPaymentArrangementTrancheFourMembertig:PerformanceStockUnitsMember2022-06-300001801754us-gaap:ShareBasedCompensationAwardTrancheTwoMembertig:PerformanceStockUnitsMembersrt:MinimumMember2022-06-300001801754tig:MarketBasedStockUnitsMSUsMember2022-01-012022-06-300001801754us-gaap:ShareBasedCompensationAwardTrancheTwoMembertig:MarketBasedStockUnitsMSUsMember2022-01-012022-06-300001801754tig:ShareBasedPaymentArrangementTrancheFourMembertig:MarketBasedStockUnitsMSUsMember2022-01-012022-06-300001801754us-gaap:ShareBasedCompensationAwardTrancheOneMembertig:MarketBasedStockUnitsMSUsMember2022-01-012022-06-300001801754us-gaap:ShareBasedCompensationAwardTrancheOneMembertig:MarketBasedStockUnitsMSUsMember2021-01-012021-12-310001801754us-gaap:ShareBasedCompensationAwardTrancheTwoMembertig:MarketBasedStockUnitsMSUsMember2021-01-012021-12-310001801754us-gaap:ShareBasedCompensationAwardTrancheThreeMembertig:MarketBasedStockUnitsMSUsMember2022-01-012022-06-300001801754us-gaap:ShareBasedCompensationAwardTrancheThreeMembertig:MarketBasedStockUnitsMSUsMember2021-01-012021-12-310001801754tig:ShareBasedPaymentArrangementTrancheFourMembertig:MarketBasedStockUnitsMSUsMember2021-01-012021-12-310001801754us-gaap:RestrictedStockUnitsRSUMember2021-12-310001801754tig:MarketBasedStockUnitsMSUsMember2021-12-310001801754tig:PerformanceStockUnitsPSUsMember2021-12-310001801754tig:MarketBasedStockUnitsMSUsMember2022-01-012022-06-300001801754tig:PerformanceStockUnitsPSUsMember2022-01-012022-06-300001801754us-gaap:RestrictedStockUnitsRSUMember2022-06-300001801754tig:MarketBasedStockUnitsMSUsMember2022-06-300001801754tig:PerformanceStockUnitsPSUsMember2022-06-300001801754us-gaap:ShareBasedCompensationAwardTrancheThreeMemberus-gaap:EmployeeStockOptionMemberus-gaap:ShareBasedPaymentArrangementEmployeeMember2022-01-012022-06-300001801754us-gaap:ShareBasedCompensationAwardTrancheTwoMemberus-gaap:EmployeeStockOptionMemberus-gaap:ShareBasedPaymentArrangementEmployeeMember2022-01-012022-06-300001801754us-gaap:ShareBasedCompensationAwardTrancheOneMemberus-gaap:EmployeeStockOptionMemberus-gaap:ShareBasedPaymentArrangementEmployeeMember2022-01-012022-06-300001801754us-gaap:ShareBasedCompensationAwardTrancheOneMemberus-gaap:RestrictedStockUnitsRSUMember2022-01-012022-06-300001801754us-gaap:ShareBasedCompensationAwardTrancheThreeMemberus-gaap:RestrictedStockUnitsRSUMember2022-01-012022-06-300001801754us-gaap:ShareBasedCompensationAwardTrancheTwoMemberus-gaap:RestrictedStockUnitsRSUMember2022-01-012022-06-30
Table of Contents
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2022
OR
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ___________ to ___________

Commission file number: 001-39392

TREAN INSURANCE GROUP, INC.
(Exact name of registrant as specified in its charter)
Delaware 84-4512647
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
150 Lake Street West
Wayzata, MN 55391
(Address of principal executive offices and zip code)
 (952) 974-2200
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par value per shareTIGThe Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes     No 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes ☒    No 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," a "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filerNon-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.      
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).    Yes     No  
As of August 4, 2022, there were 51,202,136 shares of the registrant's common stock outstanding.


Table of Contents
TREAN INSURANCE GROUP, INC.
TABLE OF CONTENTS
Page

2


Table of Contents
PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Trean Insurance Group, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands, except share and per share data)
June 30, 2022December 31, 2021
Assets(unaudited)
Fixed maturities, at fair value (amortized cost of $499,544 and $465,459, respectively)
$466,819 $471,061 
Equity securities, at fair value (cost $34,248 and $984, respectively)
30,698 969 
Total investments497,517 472,030 
Cash and cash equivalents100,716 129,577 
Restricted cash299 407 
Accrued investment income2,736 2,344 
Premiums and other receivables153,822 141,920 
Income taxes receivable969 460 
Reinsurance recoverable388,801 377,241 
Prepaid reinsurance premiums115,459 129,411 
Deferred policy acquisition cost, net16,195 13,344 
Property and equipment, net7,590 7,632 
Right of use asset3,807 4,530 
Goodwill142,347 142,347 
Intangible assets, net70,116 73,114 
Other assets10,906 8,658 
Total assets$1,511,280 $1,503,015 
Liabilities
Unpaid loss and loss adjustment expenses$577,686 $544,320 
Unearned premiums219,949 219,940 
Funds held under reinsurance agreements200,338 199,410 
Reinsurance premiums payable45,250 45,130 
Accounts payable and accrued expenses23,601 29,448 
Lease liability4,178 4,976 
Deferred tax liability539 7,520 
Debt29,621 30,362 
Total liabilities1,101,162 1,081,106 
Commitments and contingencies
Stockholders' equity
Common stock, $0.01 par value per share (600,000,000 authorized; 51,202,136 and 51,176,887 issued and outstanding as of June 30, 2022 and December 31, 2021, respectively)
512 512 
Additional paid-in capital289,174 288,623 
Retained earnings146,221 128,390 
Accumulated other comprehensive income (loss)(25,789)4,384 
Total stockholders' equity410,118 421,909 
Total liabilities and stockholders' equity$1,511,280 $1,503,015 

See accompanying notes to the condensed consolidated financial statements.
3

Table of Contents
Trean Insurance Group, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(in thousands, except share and per share data)
(unaudited)
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Revenues
Gross written premiums$154,189 $156,551 $315,592 $303,281 
Decrease (increase) in gross unearned premiums2,953 (17,927)89 (36,358)
Gross earned premiums157,142 138,624 315,681 266,923 
Ceded earned premiums(91,132)(90,681)(185,494)(177,846)
Net earned premiums66,010 47,943 130,187 89,077 
Net investment income (loss)(391)2,103 2,185 4,375 
Net realized gains1,349 10 302 23 
Other revenue1,804 1,229 5,005 5,884 
Total revenue68,772 51,285 137,679 99,359 
Expenses
Losses and loss adjustment expenses40,887 29,725 80,080 54,606 
General and administrative expenses21,679 15,267 39,979 27,158 
Other expenses268 845 268 845 
Intangible asset amortization1,500 1,413 2,999 2,827 
Noncash stock compensation403 419 559 630 
Interest expense467 425 875 852 
Total expenses65,204 48,094 124,760 86,918 
Gains (losses) on embedded derivatives3,356 (686)9,592 1,990 
Other income24 35 47 156 
Income before taxes6,948 2,540 22,558 14,587 
Income tax expense1,457 414 4,727 3,019 
Net income$5,491 $2,126 $17,831 $11,568 
Earnings per share:
Basic$0.11 $0.04 $0.35 $0.23 
Diluted$0.11 $0.04 $0.35 $0.23 
Weighted average shares outstanding:
Basic51,197,111 51,152,979 51,187,509 51,150,881 
Diluted51,197,533 51,166,587 51,187,720 51,173,204 
See accompanying notes to the condensed consolidated financial statements.
4

Table of Contents
Trean Insurance Group, Inc. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Income (Loss)
(in thousands)
(unaudited)
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Net income$5,491 $2,126 $17,831 $11,568 
Other comprehensive gain (loss), net of tax:
Unrealized investment gains (losses):
Unrealized investment gains (losses) arising during the period(15,470)2,325 (39,274)(6,251)
Income tax expense (benefit)(3,254)488 (8,247)(1,313)
Unrealized investment gains (losses), net of tax(12,216)1,837 (31,027)(4,938)
Less reclassification adjustments to:
Net realized investment gains (losses) included in net realized gains (losses)(54)10 (1,081)23 
Income tax expense (benefit)(11)2 (227)5 
Total reclassifications included in net income, net of tax(43)8 (854)18 
Other comprehensive income (loss)(12,173)1,829 (30,173)(4,956)
Total comprehensive income (loss)$(6,682)$3,955 $(12,342)$6,612 
See accompanying notes to the condensed consolidated financial statements.
5

Table of Contents
Trean Insurance Group, Inc. and Subsidiaries
Condensed Consolidated Statements of Stockholders' Equity
For the Three and Six Months Ended June 30, 2022 and 2021
(in thousands, except share and unit data)
(unaudited)

Common StockAdditional Paid in CapitalAccumulated Other Comprehensive Income (Loss)Retained EarningsTotal Stockholders' Equity
SharesAmount
Balance at March 31, 202251,192,196 $512 $288,771 $(13,616)$140,730 $416,397 
Stock compensation expense— — 403 — — 403 
Common stock issued pursuant to equity compensation awards9,940   — —  
Other comprehensive loss— — — (12,173)— (12,173)
Net income— — — — 5,491 5,491 
Balance at June 30, 202251,202,136 $512 $289,174 $(25,789)$146,221 $410,118 

Balance at March 31, 202151,148,782 $511 $287,321 $6,641 $118,502 $412,975 
Stock compensation expense— — 419 — — 419 
Common stock issuances pursuant to equity compensation awards, net of shares repurchased8,222 — (6)— — (6)
Other comprehensive income— — — 1,829 — 1,829 
Net income— — — — 2,126 2,126 
Balance at June 30, 202151,157,004 $511 $287,734 $8,470 $120,628 $417,343 

Balance at December 31, 202151,176,887 $512 $288,623 $4,384 $128,390 $421,909 
Stock compensation expense— — 559 — — 559 
Common stock issuances pursuant to equity compensation awards, net of shares repurchased25,249 — (8)— — (8)
Other comprehensive loss— — — (30,173)— (30,173)
Net income— — — — 17,831 17,831 
Balance at June 30, 202251,202,136 $512 $289,174 $(25,789)$146,221 $410,118 

Balance at December 31, 202051,148,782 $511 $287,110 $13,426 $109,060 $410,107 
Stock compensation expense— — 630 — — 630 
Common stock issuances pursuant to equity compensation awards, net of shares repurchased8,222 — (6)— — (6)
Other comprehensive loss— — — (4,956)— (4,956)
Net income— — — — 11,568 11,568 
Balance at June 30, 202151,157,004 $511 $287,734 $8,470 $120,628 $417,343 
See accompanying notes to the condensed consolidated financial statements.
6

Table of Contents
Trean Insurance Group, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Six Months Ended June 30,
20222021
Operating activities
Net income$17,831 $11,568 
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization3,380 3,374 
Stock compensation559 630 
Unrealized gains on embedded derivatives(11,036)(3,189)
Net losses on investments(302)(23)
Unrealized losses on equity securities3,441  
Bond amortization and accretion824 1,174 
Deferred income taxes1,040 (781)
Deferred financing costs84 84 
Changes in operating assets and liabilities:
Accrued investment income(392)129 
Premiums and other receivables(11,902)(22,714)
Reinsurance recoverable on paid and unpaid losses(11,560)(18,730)
Prepaid reinsurance premiums13,952 (13,033)
Right of use asset723 959 
Other assets(5,101)(6,623)
Unpaid loss and loss adjustment expenses33,366 44,742 
Unearned premiums8 36,401 
Funds held under reinsurance agreements11,963 3,080 
Reinsurance premiums payable120 (5,388)
Accounts payable and accrued expenses(5,616)(4,011)
Lease liability(798)(1,038)
Income taxes payable and receivable(509)(3,791)
Net cash provided by operating activities40,075 22,820 
Investing activities
Payments for capital expenditures(339)(73)
Proceeds from sale of equity method investment 232 
Purchase of investments, available for sale(156,514)(104,183)
Proceeds from investments sold, matured or repaid88,641 38,425 
Net cash used in investing activities(68,212)(65,599)
Financing activities
Shares redeemed for payroll taxes(7)(6)
Principal payments on debt(825)(619)
Net cash used in financing activities(832)(625)
Net decrease in cash, cash equivalents and restricted cash(28,969)(43,404)
Cash, cash equivalents and restricted cash – beginning of period
129,984 157,234 
Cash, cash equivalents and restricted cash – end of period
$101,015 $113,830 
See accompanying notes to the condensed consolidated financial statements.
7

Table of Contents
Trean Insurance Group, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Disaggregation of cash and restricted cash:June 30, 2022December 31, 2021
Cash and cash equivalents$100,716 $129,577 
Restricted cash299 407 
Total cash, cash equivalents and restricted cash$101,015 $129,984 


Six Months Ended June 30,
Supplemental disclosure of cash flow information:20222021
Cash paid during the year for:
Interest$791 $768 
Income taxes4,368 7,548 
Non-cash investing and financing activity:
Right-of-use assets obtained in exchange for new operating lease liabilities281 31 
Non-cash transfer of investments to settle funds held for reinsurance 13,562 
Non-cash transfer of investments to settle amounts held for others in accounts payable 26,211 
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases1,257 1,217 

See accompanying notes to the condensed consolidated financial statements.
8

Table of Contents
Notes to the Condensed Consolidated Financial Statements

Note 1. Business and Basis of Presentation
Trean Insurance Group, Inc. (together with its wholly owned subsidiaries, the "Company") provides products and services to the specialty insurance market. Historically, the Company has focused on specialty casualty markets management believes are under-served and where the Company’s expertise allows the Company to achieve higher rates, such as niche workers' compensation markets and small- to medium-sized specialty casualty insurance programs. The Company underwrites specialty-casualty insurance products both through programs where the Company partners with other organizations ("Program Partners"), and also through Company owned managing general agencies ("Owned MGAs"). The Company also provides Program Partners with a variety of services, including issuing carrier services, claims administration, and reinsurance brokerage from which the Company generates fee-based revenues.

The Company's wholly owned subsidiaries include: (i) Benchmark Holding Company, a property and casualty insurance holding company, which owns Benchmark Insurance Company ("Benchmark"), a property and casualty insurance company domiciled in the state of Kansas, American Liberty Insurance Company ("ALIC"), a property and casualty insurance company domiciled in the state of Utah, 7710 Insurance Company ("7710"), a property and casualty insurance company domiciled in the state of South Carolina and Benchmark Specialty Insurance Company ("BSIC"), a property and casualty insurance company domiciled in the state of Arkansas; (ii) Trean Compstar Holdings, LLC, a limited liability company created originally for the purchase of Compstar Insurance Services LLC, a California-based general agency; and (iii) Trean Corporation ("Trean Corp"), a reinsurance intermediary manager and a managing general agent, which consists of the following wholly owned subsidiaries: (a) Trean Reinsurance Services, LLC ("TRS"), a reinsurance intermediary broker; Benchmark Administrators LLC (BIC Admin"), a claims third-party administrator; (b) Western Integrated Care, LLC ("WIC"), a managed care organization; and (c) Westcap Insurance Services, LLC ("Westcap"), a managing general agent based in California.

The accompanying condensed consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to the Quarterly Report on Form 10-Q under the Securities Exchange Act of 1934, as amended. Accordingly, they do not contain all of the information included in the Company's annual consolidated financial statements and notes. In the opinion of management, all adjustments (consisting of normal, recurring adjustments) necessary for a fair presentation of the Company’s condensed consolidated financial position and results of operations for the periods presented have been included. Although management believes the disclosures and information presented are adequate, these interim condensed consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2021 (the "2021 Form 10-K"). Operating results for the three and six months ended June 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022.
Use of estimates

While preparing the condensed consolidated financial statements, the Company has made certain estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the condensed consolidated financial statements, as well as reported amounts of revenue and expenses during the reporting period. Accordingly, actual results could differ from those estimates. Reported amounts that require extensive use of estimates include the reserves for unpaid losses and loss adjustment expenses ("LAE"), reinsurance recoverables, investments, goodwill, and other intangible assets. Except for the captions on the condensed consolidated balance sheets and condensed consolidated statements of comprehensive income, generally, the term loss(es) is used to collectively refer to both losses and LAE.

Accounting pronouncements

Recently adopted policies

In January 2020, the Financial Accounting Standards Board ("FASB") issued ASU No. 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivative and Hedging (Topic 815) - Clarifying the Interactions between Topic 321, Topic 323 and Topic 815 (ASU 2020-01). This update addresses the accounting for certain equity securities upon the application or discontinuation of the equity method of accounting. Further, the update addresses scope considerations for forward contracts and purchased options on certain securities. ASU 2020-01 is effective for annual periods beginning after December 15, 2021, including interim periods thereafter. The Company adopted
9

Table of Contents
this standard effective January 1, 2022. Adoption of this standard did not have a material impact on the condensed consolidated financial statements.

Pending policies

The Company completed its initial public offering in July 2020, and is an emerging growth company as defined under federal securities laws. As such, the Company has elected to adopt pending accounting policies under the dates required for private companies. Therefore, the dates included within this section reflect the effective dates for the adoption of new accounting policies required by private companies.

In March 2020, the FASB issued ASU No. 2020-03, Codification Improvements to Financial Instruments (ASU 2020-03). This update represents changes to clarify and improve the codification to allow for easier application by eliminating inconsistencies and providing clarification on items such as (i) the application of fair value option disclosures; (ii) the accounting for fees related to modifications of debt; and (iii) aligning the contractual term of a net investment in a lease in accordance with ASC Topic 326, Financial Instruments - Credit Losses, and the lease term determined in accordance with ASC Topic 842, Leases. The Company adopted items (i) and (ii) effective January 1, 2020 and will adopt item (iii) on January 1, 2023. Adoption of this standard has not had, and is not expected to have, a material impact on the condensed consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments (ASU 2016-13). This update requires financial assets measured at amortized cost to be presented at the net amount expected to be collected by means of an allowance for credit losses that runs through net income. Additionally, credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses, with the amount of the allowance limited to the amount by which the fair value is below the amortized cost. ASU 2016-13 is effective for annual periods beginning after December 15, 2022, including interim periods within those fiscal years. The Company will adopt this standard effective January 1, 2023. The Company is currently evaluating the impact of this standard on the condensed consolidated financial statements.

Note 2. Acquisitions
Western Integrated Care

Effective July 6, 2021, Trean Corp acquired 100% ownership of WIC for a total purchase price of $5,500, which includes $1,500 that is contingent on WIC's future earnings, as defined in the agreement. WIC is a managed care organization that offers services to workers' compensation insurers to enable employees who are injured on the job to access qualified medical treatment. The Company recorded $1,501 of goodwill and intangible assets of $3,624 associated with the business combination.

Note 3. Fair Value Measurements

The Company’s financial instruments include assets and liabilities carried at fair value. The inputs to valuation techniques used to measure fair value are prioritized into a three level hierarchy. The fair value hierarchy is as follows:

Level 1: Fair values primarily based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

Level 2: Fair values primarily based on observable inputs, other than quoted prices included in Level 1, or based on prices for similar assets and liabilities.

Level 3: Fair values primarily based on valuations derived when one or more of the significant inputs are unobservable. With little or no observable market, the determination of fair value uses considerable judgment and represents the Company’s best estimate of an amount that could be realized in a market exchange for the asset or liability.

The Company classifies the financial asset or liability by level based upon the lowest level input that is significant to the determination of the fair value. The following tables present the estimated fair value of the Company’s significant financial instruments.

10

Table of Contents
June 30, 2022
Level 1Level 2Level 3Total
Fixed maturities:
U.S. government and government securities$51,678 $ $ $51,678 
Foreign governments 392  392 
States, territories and possessions 10,274  10,274 
Political subdivisions of states territories and possessions 35,925  35,925 
Special revenue and special assessment obligations 99,528  99,528 
Industrial and public utilities 102,514  102,514 
Commercial mortgage-backed securities 98,807  98,807 
Residential mortgage-backed securities 19,087  19,087 
Other loan-backed securities 43,830  43,830 
Total fixed maturities51,678 415,141  466,819 
Equity securities12,490 18,208  30,698 
Total investments$64,168 $433,349 $ $497,517 
Embedded derivatives on funds held under reinsurance agreements$(1,422)$(9,342)$ $(10,764)
Debt 30,112  30,112 


December 31, 2021
Level 1Level 2Level 3Total
Fixed maturities:
U.S. government and government securities$2,392 $39,042 $ $41,434 
Foreign governments 2,490  2,490 
States, territories and possessions 10,766  10,766 
Political subdivisions of states, territories and possessions 40,002  40,002 
Special revenue and special assessment obligations 95,991  95,991 
Industrial and public utilities 103,257  103,257 
Commercial mortgage-backed securities 118,218  118,218 
Residential mortgage-backed securities 17,368  17,368 
Other loan-backed securities 41,425  41,425 
Hybrid securities 110  110 
Total fixed maturities2,392 468,669  471,061 
Equity securities 969  969 
Total investments$2,392 $469,638 $ $472,030 
Embedded derivatives on funds held under reinsurance agreements$(4)$275 $ $271 
Debt 30,938  30,938 

Fixed maturities and equity securities: The Company, through its third-party pricing service provider, uses a variety of sources to estimate the fair value of investments such as Refinitiv (formerly Reuters), PricingDirect, ICE Data Services, and for equities, Bloomberg or S&P Capital IQ Pro. Equity securities are generally valued at the closing price on the exchange on
11

Table of Contents
which they are primarily traded as provided by a third-party pricing service. Fixed income securities are generally valued at an evaluated bid as provided by a third-party pricing service. Securities and other assets generally valued using third-party pricing services may also be valued at broker/dealer indications. Values obtained from third-party pricing services can utilize several market data sources for inputs such as transaction data, yield, quality, coupon rate, maturity, issue type, trading characteristics, and other market activity. To validate the reasonableness of the prices, the Company performs various qualitative and quantitative procedures such as analysis of recent trading activity, analytical review of fair values and an evaluation of the underlying pricing methodologies. Based on these procedures, the Company did not adjust the prices or quotes from the third-party pricing service.

Embedded derivatives: The Company enters into funds held contracts under reinsurance agreements, which create embedded derivatives on the underlying investments. These embedded derivatives are valued based upon the unrealized gain or loss position of the funds held portfolio, which is determined consistent with other investments using third-party pricing services. To validate the reasonableness of the quoted prices, the Company performs various qualitative and quantitative procedures such as analysis of recent activity, analytical review of fair values and an evaluation of the underlying pricing methodologies. Based on these procedures, the Company did not adjust the prices or quotes from the third-party pricing service.

Debt: The Company holds debt related to its secured credit facility. The Company has determined that the remaining balance of the debt reflected its fair value as this would represent the total amount to repay the debt.

Note 4. Investments
Fixed income securities include bonds, asset-backed securities, and redeemable preferred securities. Fixed income securities, which may be sold prior to their contractual maturity, are designated as available-for-sale and are carried at fair value. Equity securities primarily include common stocks, mutual funds, and non-redeemable preferred stocks, which are carried at fair value.

The cost or amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of the Company's fixed maturities investments are as follows:

June 30, 2022
Cost or
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair Value
Fixed maturities:
U.S. government and government securities$53,592 $ $(1,914)$51,678 
Foreign governments400  (8)392 
States, territories and possessions11,102 22 (850)10,274 
Political subdivisions of states, territories and possessions39,098 77 (3,250)35,925 
Special revenue and special assessment obligations107,939 241 (8,652)99,528 
Industrial and public utilities106,575 98 (4,159)102,514 
Commercial mortgage-backed securities110,538 49 (11,780)98,807 
Residential mortgage-backed securities20,076  (989)19,087 
Other loan-backed securities44,880 2 (1,052)43,830 
Hybrid securities5,344  (560)4,784 
Total fixed maturities available for sale$499,544 $489 $(33,214)$466,819 


12

Table of Contents
December 31, 2021
Cost or
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair Value
Fixed maturities:
U.S. government and government securities$41,490 $113 $(169)$41,434 
Foreign governments2,500  (10)2,490 
States, territories and possessions10,593 189 (16)10,766 
Political subdivisions of states, territories and possessions39,170 975 (143)40,002 
Special revenue and special assessment obligations93,664 2,920 (593)95,991 
Industrial and public utilities100,774 2,835 (352)103,257 
Commercial mortgage-backed securities119,378 591 (1,751)118,218 
Residential mortgage-backed securities16,549 843 (24)17,368 
Other loan-backed securities41,236 248 (59)41,425 
Hybrid securities105 5  110 
Total fixed maturities available for sale$465,459 $8,719 $(3,117)$471,061 


The following table illustrates the Company’s gross unrealized losses and fair value of fixed maturities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position:

June 30, 2022
Less Than 12 Months12 Months or MoreTotal
Fair ValueUnrealized LossFair ValueUnrealized LossFair ValueUnrealized Loss
Fixed maturities:
U.S. government and government securities$50,142 $(1,826)$1,536 $(88)$51,678 $(1,914)
Foreign governments392 (8)  392 (8)
States, territories and possessions7,811 (767)242 (83)8,053 (850)
Political subdivisions of states, territories and possessions26,849 (3,220)269 (30)27,118 (3,250)
Special revenue and special assessment obligations73,580 (7,989)3,614 (663)77,194 (8,652)
Industrial and public utilities72,164 (3,800)3,039 (359)75,203 (4,159)
Commercial mortgage-backed securities58,330 (5,634)36,500 (6,146)94,830 (11,780)
Residential mortgage-backed securities19,088 (989)  19,088 (989)
Other loan-backed securities35,611 (847)4,233 (205)39,844 (1,052)
Total fixed maturities$