Commitments and Contingencies
Leases
At December 31, 2025, the Company's operating leases have remaining terms of one to seven years, with options to extend up to five years with no termination provision. The Company's finance leases have an option to terminate after one year. As of February 28, 2025, the Company no longer had finance leases for automobiles.
Components of lease expense were as follows:
| | | | | | | | | | | | | | | | |
| | Years Ended December 31, |
| | 2025 | | 2024 | | |
| | (in millions) |
| Operating lease expense | | $ | 1.1 | | | $ | 1.1 | | | |
| Finance lease expense | | — | | | 0.1 | | | |
| Total lease expense | | $ | 1.1 | | | $ | 1.2 | | | |
As of December 31, 2025, the weighted average remaining lease terms for operating leases were 5.9 years, and the associated weighted average discount rate was 4.5%.
Maturities of lease liabilities were as follows:
| | | | | | | | | | | | | | |
| Year | | Operating Leases | | Finance Leases |
| | (in millions) |
| 2026 | | $ | 0.8 | | | $ | — | |
| 2027 | | 0.8 | | | — | |
| 2028 | | 0.8 | | | — | |
| 2029 | | 0.5 | | | — | |
| 2030 | | 1.6 | | | — | |
| Thereafter | | — | | | — | |
| Total lease payments | | 4.5 | | | — | |
| Less: imputed interest | | (0.6) | | | — | |
| Total | | $ | 3.9 | | | $ | — | |
Supplemental balance sheet information related to leases was as follows:
| | | | | | | | | | | | | | |
| | As of December 31, |
| | 2025 | | 2024 |
| | (in millions) |
| Operating leases: | | | | |
| Operating lease right-of-use asset | | $ | 3.7 | | | 3.7 | |
| Operating lease liability | | 3.9 | | | 4.2 | |
| Finance leases: | | | | |
| Property and equipment, gross | | — | | | 0.4 | |
| Accumulated depreciation | | — | | | (0.3) | |
| Property and equipment, net | | — | | | 0.1 | |
| Other liabilities | | $ | — | | | $ | 0.1 | |
Supplemental cash flow information related to leases was as follows:
| | | | | | | | | | | | | | | | |
| | Years Ended December 31, |
| | 2025 | | 2024 | | |
| | (in millions) |
| Cash paid for amounts included in the measurement of lease liabilities: | | | | | | |
| Operating cash flows used for operating leases | | $ | 1.1 | | | $ | 1.1 | | | |
| Financing cash flows used for finance leases | | — | | | 0.1 | | | |
Contingencies Surrounding Insurance Assessments
Each of the states where the Company's insurance subsidiaries are licensed to transact business require property and casualty insurers that underwrite business within the respective state to pay various insurance assessments. The Company accrues a liability for estimated insurance assessments as direct premiums are written, losses are recorded, or as other events occur,
depending on the relevant laws and regulations of a particular state. The Company defers such costs to the extent they are associated with unearned premium and recognizes them as an expense as such premiums are earned. The Company had an accrued liability for guaranty fund assessments, second injury funds assessments, and other insurance assessments totaling $11.6 million and $12.2 million as of December 31, 2025 and 2024, respectively. These liabilities are generally expected to be paid over periods from less than one year to, in some instances, the duration of the outstanding claims, based on the individual state's laws and regulations. The Company also recorded an asset of $13.2 million and $11.2 million as of December 31, 2025 and 2024, respectively, for remitted estimated policy charges anticipated to be recouped from policyholders. This asset also includes state assessments that may be recovered through a reduction in future premium taxes. These assets are expected to be realized over one to ten year periods in accordance with their type and each individual state's laws and regulations.
Unfunded Investment Commitments
As of December 31, 2025 and 2024, the Company had unfunded commitments of $11.3 million and $15.6 million, respectively, to invest into private equity limited partnerships. See Note 4.