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Fair Value (Tables)

6 Months Ended

Jun. 30, 2024

Schedule of Fair Value Measurements on a Recurring Basis by Asset Class and Level of Input

The following tables present our fair value measurements on a recurring basis by asset class and level of input as of:


	June 30, 2024
(in thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities:




Corporate debt securities (1)	$	612,049	$	0	$	603,506	$	8,543
Collateralized debt obligations	111,857		0		111,857		0
Commercial mortgage-backed securities	123,013		0		97,793		25,220
Residential mortgage-backed securities	127,991		0		127,991		0
Other debt securities	24,449		0		24,449		0
U.S. Treasury	1,025		0		1,025		0
Total available-for-sale securities	1,000,384		0		966,621		33,763
Equity securities:
Financial services sector	65,321		1,537		58,350		5,434
Utilities sector	5,543		0		5,543		0
Energy sector	3,689		0		3,689		0
Consumer sector	3,885		0		2,321		1,564
Technology sector	1,500		0		0		1,500
Industrial sector	190		0		190		0

Total equity securities	80,128		1,537		70,093		8,498

Total	$	1,080,512	$	1,537	$	1,036,714	$	42,261

(1)This includes $6.1 million of securities lent under a securities lending agreement.


	December 31, 2023
(in thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities:




Corporate debt securities	$	588,688	$	0	$	584,182	$	4,506
Collateralized debt obligations	112,468		0		112,468		0
Commercial mortgage-backed securities	102,720		0		91,726		10,994
Residential mortgage-backed securities	140,055		0		138,521		1,534
Other debt securities	17,310		0		17,310		0

Total available-for-sale securities	961,241		0		944,207		17,034
Equity securities:
Financial services sector	69,900		816		63,750		5,334
Utilities sector	5,810		0		5,810		0
Energy sector	3,901		0		3,901		0
Consumer sector	3,915		0		2,415		1,500
Technology sector	500		0		0		500
Industrial sector	180		0		180		0
Communications sector	47		47		0		0
Total equity securities	84,253		863		76,056		7,334
Total	$	1,045,494	$	863	$	1,020,263	$	24,368

Schedule of Roll Forward of Level 3 Fair Value Measurements on a Recurring Basis

Level 3 Assets – 2024 Quarterly Change:



(in thousands)	Beginning balance at March 31, 2024		Included in earnings(1)		Included in other comprehensive income (loss)		Purchases		Sales		Transfers into Level 3(2)		Transfers out of Level 3(2)		Ending balance at June 30, 2024
Available-for-sale securities:
Corporate debt securities	$	3,908	$	22	$	(20)	$	4,496	$	(521)	$	2,202	$	(1,544)	$	8,543

Commercial mortgage-backed securities	14,577		(415)		125		210		(5)		11,643		(915)		25,220


Total available-for-sale securities	18,485		(393)		105		4,706		(526)		13,845		(2,459)		33,763
Equity securities	7,968		61		—		1,019		(84)		520		(986)		8,498
Total Level 3 securities	$	26,453	$	(332)	$	105	$	5,725	$	(610)	$	14,365	$	(3,445)	$	42,261

Level 3 Assets – 2024 Year-to-Date Change:


(in thousands)	Beginning balance at December 31, 2023		Included in earnings(1)		Included in other comprehensive income (loss)		Purchases		Sales		Transfers into Level 3(2)		Transfers out of Level 3(2)		Ending balance at June 30, 2024
Available-for-sale securities:
Corporate debt securities	$	4,506	$	25	$	21	$	4,839	$	(823)	$	3,824	$	(3,849)	$	8,543

Commercial mortgage-backed securities	10,994		(669)		219		1,805		(5)		17,648		(4,772)		25,220
Residential mortgage- backed securities	1,534		(5)		(24)		0		(40)		0		(1,465)		0

Total available-for-sale securities	17,034		(649)		216		6,644		(868)		21,472		(10,086)		33,763
Equity securities	7,334		147		—		2,019		(84)		544		(1,462)		8,498
Total Level 3 securities	$	24,368	$	(502)	$	216	$	8,663	$	(952)	$	22,016	$	(11,548)	$	42,261

Level 3 Assets – 2023 Quarterly Change:



(in thousands)	Beginning balance at March 31, 2023		Included in earnings(1)		Included in other comprehensive income (loss)		Purchases		Sales		Transfers into Level 3(2)		Transfers out of Level 3(2)		Ending balance at June 30, 2023
Available-for-sale securities:
Corporate debt securities	$	4,503	$	14	$	37	$	779	$	(100)	$	1,655	$	(1,765)	$	5,123

Commercial mortgage-backed securities	6,415		(169)		(117)		866		(185)		329		(606)		6,533
Residential mortgage- backed securities	33		0		0		0		(21)		0		0		12

Total available-for-sale securities	10,951		(155)		(80)		1,645		(306)		1,984		(2,371)		11,668
Equity securities	4,699		31		—		0		0		0		0		4,730
Total Level 3 securities	$	15,650	$	(124)	$	(80)	$	1,645	$	(306)	$	1,984	$	(2,371)	$	16,398

Level 3 Assets – 2023 Year-to-Date Change:


(in thousands)	Beginning balance at December 31, 2022		Included in earnings(1)		Included in other comprehensive income (loss)		Purchases		Sales		Transfers into Level 3(2)		Transfers out of Level 3(2)		Ending balance at June 30, 2023
Available-for-sale securities:
Corporate debt securities	$	3,686	$	(14)	$	122	$	1,532	$	(745)	$	3,153	$	(2,611)	$	5,123

Commercial mortgage-backed securities	10,910		(360)		100		1,455		(185)		466		(5,853)		6,533
Residential mortgage-backed securities	4,184		(5)		96		0		(108)		33		(4,188)		12

Total available-for-sale securities	18,780		(379)		318		2,987		(1,038)		3,652		(12,652)		11,668
Equity securities	3,779		(7)		—		958		0		0		0		4,730
Total Level 3 securities	$	22,559	$	(386)	$	318	$	3,945	$	(1,038)	$	3,652	$	(12,652)	$	16,398

(1)These amounts are reported as net investment income and net realized and unrealized investment gains (losses) for each of the periods presented above.

(2)Transfers into and/or (out) of Level 3 are primarily attributable to the availability of market observable information and the re-evaluation of the observability of pricing inputs.

Schedule of Financial Instruments Not Carried at Fair Value

The following table presents the carrying values and fair values of financial instruments categorized as Level 3 in the fair value hierarchy that are recorded at carrying value as of:


	June 30, 2024				December 31, 2023
(in thousands)	Carrying value		Fair value		Carrying value		Fair value
Agent loans, net	$	66,280	$	60,361	$	67,787	$	66,445
Other loans receivable, net (1)	10,968		10,968		10,713		10,713


Held-to-maturity securities, net (2)	4,833		4,833		—		—

(1) The current and long-term portions of other loans receivable are included in the line items "Prepaid expenses and other current assets" and "Other assets, net", respectively, in the Statements of Financial Position.

(2) Held-to-maturity securities are included in the line item "Other assets, net" in the Statement of Financial Position.

- 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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