XML 22 R11.htm IDEA: XBRL DOCUMENT v3.22.2.2
Financial instruments and fair value measurements
9 Months Ended
Sep. 30, 2022
Financial instruments and fair value measurements  
Financial instruments and fair value measurements

Note 5—Financial instruments and fair value measurements

The following table sets forth the Company’s assets that were measured at fair value as of September 30, 2022, by level within the fair value hierarchy:

    

Level 1

    

Level 2

    

Level 3

    

Total

Cash equivalents

$

106,716

$

106,716

U.S. Treasury

 

90,016

 

 

 

90,016

Corporate bonds

 

 

193,920

 

 

193,920

Total

$

196,732

$

193,920

$

$

390,652

The following table sets forth the Company’s assets that were measured at fair value as of December 31, 2021, by level within the fair value hierarchy:

    

Level 1

    

Level 2

    

Level 3

    

Total

Cash equivalents

$

52,882

$

52,882

U.S. Treasury

 

79,752

 

 

 

79,752

Corporate bonds

 

 

222,596

 

 

222,596

Total

$

132,634

$

222,596

$

$

355,230

There were no transfers between levels during the period ended September 30, 2022. The Company uses the services of its investment manager, which uses widely accepted models for assumptions in valuing securities with inputs from major third-party data providers.

The Company classifies all of its investments in fixed maturity debt securities as available-for-sale and, accordingly, are carried at estimated fair value.

The amortized cost, gross unrealized gains and losses, and fair value of investments in fixed maturity securities are as follows as of September 30, 2022:

    

    

Gross 

    

Gross

    

Unrealized

 Unrealized 

Amortized Cost

 Gains

Losses

Fair Value

U.S. Treasury

$

91,913

$

$

(1,897)

$

90,016

Corporate bonds

 

195,548

 

 

(1,628)

 

193,920

Total

$

287,461

$

$

(3,524)

$

283,936

The amortized cost, gross unrealized gains and losses, and fair value of investments in fixed maturity securities are as follows as of December 31, 2021:

    

Gross 

    

Gross 

    

Unrealized

Unrealized

    

Amortized Cost

 Gains

 Losses

Fair Value

U.S. Treasury

$

80,052

$

$

(300)

$

79,752

Corporate bonds

 

222,898

 

 

(302)

 

222,596

Total

$

302,950

$

$

(602)

$

302,348

The following table provides the maturities of our fixed maturity available-for-sale securities:

     

September 30, 2022

     

December 31, 2021

Less than one year

$

244,509

$

166,434

One to five years

 

39,427

 

135,914

$

283,936

$

302,348

The Company has evaluated the unrealized losses on the fixed maturity securities and determined that they are not attributable to credit risk factors. For fixed maturity securities, losses in fair value are viewed as temporary if the fixed maturity security can be held to maturity and it is reasonable to assume that the issuer will be able to service the debt, both as to principal and interest.