v3.26.1
Equity Holdings
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Equity Holdings

Note 5. Equity Holdings

 

As of March 31, 2026 and December 31, 2025, the Company’s equity holdings consisted of the following ($ in thousands):

 

   March 31, 2026   December 31, 2025 
   Carrying Amount   Economic Interest   Carrying Amount   Economic Interest 
Equity Method Holdings                    
Saltire Capital Ltd.  $14,865    23.8%  $14,670    23.8%
Devondale Holdings LLC   1,783    40.0%   -      
                     
Cost Method Holding                    
USFM Corporation   500         -      
Total  $17,148        $14,670      

 

Loss on equity holdings for the three months ended March 31, 2026 and March 31, 2025 were as follows (in thousands):

 

   March 31, 2026   March 31, 2025 
   Three Months Ended 
   March 31, 2026   March 31, 2025 
Realized gain on common stock holdings  $-   $770 
Unrealized loss in value on common stock holdings   -    (1,472)
Gain (loss) on equity method holdings   32    (5,765)
Other   -    48 
Net gain (loss) on equity holdings and other holdings  $32   $(6,419)

 

During the three months ended March 31, 2026, the Company recorded an equity method gain on the shares of Saltire of $32 thousand. During the three months ended March 31, 2025, the Company recorded an equity method loss on the shares of Saltire of $1.5 million. The remainder of the net loss on equity holdings and other holdings for the three months ended March 31, 2025 related to holdings distributed to the CVR Trust in August 2025.

 

Equity Method Holdings

 

Saltire

 

As of March 31, 2026, the Company held approximately 23.8% of the outstanding common shares of Saltire. Based on quoted market prices, the market value of the Company’s ownership in common shares of Saltire was $6.9 million at March 31, 2026.

 

Devondale Holdings LLC

 

As discussed in Note 4, the Company entered into an agreement for the sale of its reinsurance business to Devondale. As a result of the transaction, the Company received a 40% equity interest in Devondale.

 

Cost Method Holding without Readily Determinable Fair Value

 

In addition to our equity method holdings, other holdings which do not have a readily determinable fair value are accounted for at their cost, subject to any adjustment from time to time due to impairment or observable price changes in orderly transactions. When the Company observes an orderly transaction of an investee’s identical or similar equity securities, the Company adjusts the carrying value based on the observable price as of the transaction date. Any profit distributions the Company receives on these holdings are included in Gain (loss) on equity holdings.

 

During the quarter ended March 31, 2026, the Company entered into a subscription agreement with USFM Corporation (“USFM”) pursuant to which the Company purchased 7,500 common shares of USFM at a total cost of $0.5 million. USFM, a private entity, is a mineral exploration company. Management is not aware of any issuances of identical or similar equities after the Company’s purchase of USFM’s common stock and through March 31, 2026.

 

 

Impairment

 

For equity securities without readily determinable fair values, impairment is determined via a qualitative assessment which considers indicators to evaluate whether the holding is impaired. Some of these indicators include a significant deterioration in the earnings performance or asset quality of the investee, a significant adverse change in regulatory, economic or general market conditions in which the investee operates, or doubt over an investee’s ability to continue as a going concern. If the holding is deemed to be impaired after conducting this analysis, management would estimate the fair value of the holding to determine the amount of impairment loss.

 

For equity method holdings, evidence of a loss in value might include a series of operating losses of an investee, the absence of an ability to recover the carrying amount of the holding, or a deterioration in the value of the investee’s underlying assets. If these, or other indicators, lead to the conclusion that there is a decrease in the value of the holding that is other than temporary, the Company would recognize that decrease in value even though the decrease may be in excess of what would otherwise be recognized under the equity method of accounting.

 

The risks and uncertainties inherent in the assessment methodology used to determine impairment include, but may not be limited to, the following:

 

  ● the opinions of professional appraisers could be incorrect;
     
  ● the past operating performance and cash flows generated from the investee’s operations may not reflect their future performance; and
     
  ● the estimated fair values for holdings for which observable market prices are not available are inherently imprecise.

 

The Company did not record an impairment on its holdings during the three months ended March 31, 2026.