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.