Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2024

Summary of Financial Instruments Measured at Fair Value on Recurring Basis

The following tables present the categorization for our financial instruments measured at fair value on a recurring basis at September 30, 2024 and December 31, 2023:


September 30, 2024			Fair Value Measurements
Description	Total		Level 1		Level 2		Level 3
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	$	31,347	$	31,347	$	—	$	—
U.S. government agency	91,601		—		91,601		—
States, municipalities and political subdivisions
General obligations
Midwest	22,126		—		22,126		—
Northeast	7,095		—		7,095		—
South	24,586		—		24,586		—
West	35,887		—		35,887		—
Special revenue
Midwest	54,963		—		54,963		—
Northeast	30,342		—		30,342		—
South	94,225		—		94,225		—
West	52,810		—		52,810		—
Foreign bonds	23,500		—		23,500		—
Public utilities	123,853		—		123,853		—
Corporate bonds
Energy	42,227		—		42,227		—
Industrials	59,291		—		59,291		—
Consumer goods and services	110,523		—		110,523		—
Health care	39,868		—		39,868		—
Technology, media and telecommunications	85,053		—		85,053		—
Financial services	229,792		—		229,792		—
Mortgage-backed securities	340,655		—		340,655		—
Collateralized mortgage obligations
Government National Mortgage Association	128,753		—		128,753		—
Federal Home Loan Mortgage Corporation	56,342		—		56,342		—
Federal National Mortgage Association	40,823		—		40,823		—
Asset-backed securities	127,129		—		126,853		276

Total Available-for-Sale Fixed Maturities	$	1,852,791	$	31,347	$	1,821,168	$	276












































Short-Term Investments	$	100	$	100	$	—	$	—
Money Market Accounts	$	105,901	$	105,901	$	—	$	—
Corporate-Owned Life Insurance	$	13,135	$	—	$	13,135	$	—
Total Assets Measured at Fair Value	$	1,971,927	$	137,348	$	1,834,303	$	276


December 31, 2023			Fair Value Measurements
Description	Total		Level 1		Level 2		Level 3
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	$	50,861	$	—	$	50,861	$	—
U.S. government agency	94,493		—		94,493		—
States, municipalities and political subdivisions
General obligations
Midwest	52,707		—		52,707		—
Northeast	11,380		—		11,380		—
South	54,207		—		54,207		—
West	77,426		—		77,426		—
Special revenue
Midwest	100,981		—		100,981		—
Northeast	52,227		—		52,227		—
South	164,266		—		164,266		—
West	101,565		—		101,565		—
Foreign bonds	19,172		—		19,172		—
Public utilities	140,467		—		140,467		—
Corporate bonds
Energy	43,473		—		43,473		—
Industrials	70,548		—		70,548		—
Consumer goods and services	95,921		—		95,921		—
Health care	33,472		—		33,472		—
Technology, media and telecommunications	81,788		—		81,788		—
Financial services	145,691		—		140,799		4,892
Mortgage-backed securities	21,483		—		21,483		—
Collateralized mortgage obligations
Government National Mortgage Association	153,206		—		153,206		—
Federal Home Loan Mortgage Corporation	71,685		—		66,862		4,823
Federal National Mortgage Association	45,653		—		45,653		—
Asset-backed securities	3,831		—		2,962		869

Total Available-for-Sale Fixed Maturities	$	1,686,503	$	—	$	1,675,919	$	10,584

































EQUITY SECURITIES
Common stocks
Public utilities	$	3,993	$	3,993	$	—	$	—
Energy	9,477		9,477		—		—
Industrials	14,164		14,164		—		—
Consumer goods and services	11,385		11,385		—		—
Health care	2,060		2,060		—		—
Technology, media and telecommunications	6,405		6,405		—		—
Financial services	7,535		7,535		—		—


Total Equity Securities	$	55,019	$	55,019	$	—	$	—
Short-Term Investments	$	100	$	100	$	—	$	—
Money Market Accounts	$	20,333	$	20,333	$	—	$	—
Corporate-Owned Life Insurance	$	11,913	$	—	$	11,913	$	—
Total Assets Measured at Fair Value	$	1,773,868	$	75,452	$	1,687,832	$	10,584

Summary of Financial Instruments Not Carried at Fair Value on Recurring Basis

The fair value of financial instruments that are not carried at fair value on a recurring basis in the financial statements at September 30, 2024 and December 31, 2023 are summarized below:


September 30, 2024
Description	Fair Value Total		Level 1		Level 2		Level 3		Net Asset Value
Financial assets:
Cash and cash equivalents	$	91,470	$	91,470	$	—	$	—	$	—
Other Long Term Investments	$	101,480	$	—	$	1,277	$	—	$	100,203
Mortgage Loans	$	39,771	$	—	$	—	$	39,771	$	—
Total Financial assets not accounted for at fair value	$	232,721	$	91,470	$	1,277	$	39,771	$	100,203

Long Term Debt	$	113,745	$	—	$	113,745	$	—	$	—
Total Financial liabilities not accounted for at fair value	$	113,745	$	—	$	113,745	$	—	$	—


December 31, 2023
Description	Fair Value Total		Level 1		Level 2		Level 3		Net Asset Value
Financial assets:
Cash and cash equivalents	$	81,713	$	81,713	$	—	$	—	$	—
Other Long Term Investments	$	99,507	$	—	$	1,249	$	—	$	98,258
Mortgage Loans	$	42,632	$	—	$	—	$	42,632	$	—
Total Financial assets not accounted for at fair value	$	223,852	$	81,713	$	1,249	$	42,632	$	98,258

Long Term Debt	$	38,413	$	—	$	38,413	$	—	$	—
Total Financial liabilities not accounted for at fair value	$	38,413	$	—	$	38,413	$	—	$	—

Summary of Quantitative Information About Level 3 Fair Value Measurements

The following table provides quantitative information about our Level 3 securities at September 30, 2024:

Quantitative Information about Level 3 Fair Value Measurements

Fair Value at

Valuation Technique(s)

Unobservable inputs

Range of weighted average significant unobservable inputs

September 30, 2024

Fixed Maturities asset-backed securities

276

Book Value

Probability of default

0% - 100%

Summary of Changes in Fair Value of Level 3 Securities

The following table provides a summary of the changes in fair value of our Level 3 securities for the three-month period ended September 30, 2024:


	Corporate bonds		Asset-backed securities		Total
Beginning Balance - July 1, 2024	$	—	$	276	$	276
Realized gains (losses)	—		—		—
Net unrealized gains (losses)(1)	—		—		—





Ending Balance - September 30, 2024	$	—	$	276	$	276

(1) Net unrealized gains (losses) are recorded as a component of comprehensive income in the line item "Change in net unrealized gain (loss) on investments."

The following table provides a summary of the changes in fair value of our Level 3 securities for the nine-month period ended September 30, 2024:


	Corporate bonds		Asset-backed securities		Total
Beginning Balance - January 1, 2024	$	4,892	$	5,692	$	10,584
Realized gains (losses)	—		—		—
Net unrealized gains (losses)(1)	—		(593)		(593)




Transfers out	(4,892)		(4,823)		(9,715)
Ending Balance - September 30, 2024	$	—	$	276	$	276

(1) Net unrealized gains (losses) are recorded as a component of comprehensive income in the line item "Change in net unrealized gain (loss) on investments."

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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