XML 41 R12.htm IDEA: XBRL DOCUMENT v3.25.1
Fair Value Measurements
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Fair value is the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The valuation technique used by the Company to estimate the fair value of its financial instruments is the market approach, which uses prices and other relevant information generated by market transactions involving identical or comparable assets.
The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the assets or liabilities fall within different levels of the hierarchy, the classification is based on the lowest level input that is significant to the fair value measurement of the asset or liability. Classification of assets and liabilities within the hierarchy considers the markets in which the assets and liabilities are traded, including during periods of market disruption, and the reliability and transparency of the assumptions used to determine fair value. The hierarchy requires the use of observable market data when available. The levels of the hierarchy and those investments included in each are as follows:
Level 1—Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities traded in active markets. Included are those investments traded on an active exchange, such as the Nasdaq Global Select Market, U.S. Treasury securities and obligations of U.S. government agencies, together with corporate debt securities that are generally investment grade.
Level 2—Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and market-corroborated inputs. Municipal and corporate bonds, and residential mortgage-backed securities, that are traded in less active markets are classified as Level 2. These securities are valued using market price quotations for recently executed transactions.
Level 3—Inputs to the valuation methodology are unobservable for the asset or liability and are significant to the fair value measurement. Material assumptions and factors considered in pricing investment securities and other assets may include appraisals, projected cash flows, market clearing activity or liquidity circumstances in the security or similar securities that may have occurred since the prior pricing period.
The availability of observable inputs varies and is affected by a wide variety of factors. When the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires significantly more judgment. The degree of judgment exercised by management in determining fair value is greatest for investments categorized as Level 3. For investments in this category, the Company considers prices and inputs that are current as of the measurement date. In periods of market dislocation, as characterized by current market conditions, the ability to observe prices and inputs may be reduced for many instruments. This condition could cause a security to be reclassified between levels.
The following table presents information about the Company’s investments that are measured at fair value on a recurring basis at December 31, 2024 and 2023 indicating the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:
 December 31, 2024
 Level 1 Level 2 Level 3Total
Fixed-maturity securities available-for-sale    
U.S. Treasury securities and obligations of U.S. government corporations and agencies$— $- $- $— 
     
Political subdivisions of States, Territories and Possessions- 20,873,097 - 20,873,097 
     
Corporate and other bonds industrial and miscellaneous106,792,378 - - 106,792,378 
     
Residential mortgage and other asset backed securities- 59,227,963 - 59,227,963 
Total fixed maturities106,792,378 80,101,060 - 186,893,438 
Equity securities 10,296,505 - - 10,296,505 
Total investments$117,088,883 $80,101,060 $- $197,189,943 
 December 31, 2023
 Level 1 Level 2 Level 3Total
   
Fixed-maturity securities available-for-sale    
U.S. Treasury securities and obligations of U.S. government corporations and agencies$20,939,190 $- $- $20,939,190 
     
Political subdivisions of States, Territories and Possessions- 13,398,552 - 13,398,552 
     
Corporate and other bonds industrial and miscellaneous70,107,746 - - 70,107,746 
Residential mortgage and other asset backed securities- 44,475,309 - 44,475,309 
Total fixed maturities91,046,936 57,873,861 - 148,920,797 
Equity securities 14,762,340 - - 14,762,340 
Total investments$105,809,276 $57,873,861 $- $163,683,137 
The following table sets forth the Company’s investment in a hedge fund measured at Net Asset Value (“NAV”) per share as of December 31, 2024 and 2023. The Company measures this investment at fair value on a recurring basis. Fair value using NAV per share is as follows as of the dates indicated:
Category December 31, 2024December 31, 2023
 
Other Investments
Hedge fund$4,380,656 $3,897,150 
The hedge fund investment is generally redeemable with at least 45 days prior written notice. The hedge fund investment is accounted for as a limited partnership by the Company. Income is earned based upon the Company’s allocated share of the partnership's changes in unrealized gains and losses to its partners. Such amounts have been recorded in the accompanying consolidated statements of operations and comprehensive income (loss) within net gains on investments. The Company has no capital call commitments related to Other Investments.
There were no fair value measurements as of December 31, 2024 and 2023 on a non-recurring basis.