Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Summary of Assets and Liabilities Measured at Fair Value

The following tables present the Company’s assets and liabilities measured at fair value, classified by the valuation hierarchy as of September 30, 2024 and December 31, 2023 (dollars in thousands):

	September 30, 2024
	Fair Value Measurements
	Total		Level 1		Level 2		Level 3
Assets:
Debt Securities:
U.S. Government	$	5,344	$	—	$	5,344	$	—
State and local government		19,924		—		19,924		—
Corporate debt		31,187		—		31,187		—
Asset-backed securities		32,678		—		32,678		—
Mortgage-backed securities		21,176		—		21,176		—
Commercial mortgage-backed securities		2,218		—		2,218		—
Collateralized mortgage obligations		2,634		—		2,634		—
Total debt securities		115,161		—		115,161		—
Equity Securities		331		111		220		—
Short-term investments		21,255		21,255		—		—
Total marketable investments measured at fair value	$	136,747	$	21,366	$	115,381	$	—
Investments measured at NAV:
Investments in limited partnerships		1,294
Total investments measured at fair value	$	138,041
Contingent considerations from CIS sale		12,924		—		—		12,924
Total assets measured at fair value	$	150,965
Liabilities:
Senior unsecured notes *	$	13,300	$	—	$	13,300	$	—
Total Liabilities (non-recurring fair value measure)	$	13,300	$	—	$	13,300	$	—

* Carried at face value of debt net of unamortized debt issuance costs on the consolidated balance sheets

	December 31, 2023
	Fair Value Measurements
	Total		Level 1		Level 2		Level 3
Assets:
Debt Securities:
U.S. Government	$	5,247	$	—	$	5,247	$	—
State and local government		20,464		—		20,464		—
Corporate debt		30,495		—		30,495		—
Asset-backed securities		37,752		—		37,752		—
Mortgage-backed securities		22,127		—		22,127		—
Commercial mortgage-backed securities		3,244		—		3,244		—
Collateralized mortgage obligations		2,784		—		2,784		—
Total debt securities		122,113		—		122,113		—
Equity securities		896		139		757		—
Short-term investments		20,838		20,838		—		—
Total marketable investments measured at fair value	$	143,847	$	20,977	$	122,870	$	—
Investments measured at NAV:
Investments in limited partnerships		1,458
Total investments measured at fair value	$	145,305
Liabilities:
Senior unsecured notes *	$	11,791	$	—	$	11,791	$	—
Subordinated notes *		9,965		—		—		9,965
Total Liabilities (non-recurring fair value measure)	$	21,756	$	—	$	11,791	$	9,965

* Carried at face value of debt net of unamortized debt issuance costs on the consolidated balance sheets

Summary of Key Assumptions

Key assumptions in the analysis included the following as of September 30, 2024:

	Contingent Consideration
Discount rate		13.2	%
Gross revenue risk adjustment		4.2	%
Gross revenue volatility		17.5	%
Weighted average risk-free rate		3.9	%
Weighted average cost of capital		12.0	%

Rollforward of Level 3 Assets and Liabilities Held at Fair Value

The Company's policy on recognizing transfers between hierarchies is applied at the end of each reporting period. The tables below show a rollforward of Level 3 assets and liabilities held at fair value during the three and nine months ended September 30, 2024 (dollars in thousands):

	Balance as of June 30, 2024		Additions into Level 3		Change in Fair Value		Balance as of September 30, 2024
Contingent considerations		—	$	12,924	$	—	$	12,924
Total recurring Level 3 assets		—	$	12,924	$	—	$	12,924
	Balance as of December 31, 2023		Additions into Level 3		Change in Fair Value		Balance as of September 30, 2024
Contingent considerations		—	$	12,924	$	—	$	12,924
Total recurring Level 3 assets		—	$	12,924	$	—	$	12,924