Fair Value

9 Months Ended

Sep. 30, 2025

Fair Value Disclosures [Abstract]

Fair Value

Fair Value

Financial instruments carried at fair value

Our available-for-sale and equity securities are recorded at fair value, which is the price that would be received to sell the asset in an orderly transaction between willing market participants as of the measurement date.

Valuation techniques used to derive the fair value of our available-for-sale and equity securities are based upon observable and unobservable inputs.  Observable inputs reflect market data obtained from independent sources.  Unobservable inputs reflect our own assumptions regarding fair market value for these securities.  Financial instruments are categorized based upon the following characteristics or inputs to the valuation techniques:

•Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.

•Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

•Level 3 – Unobservable inputs for the asset or liability.

Estimates of fair values for our investment portfolio are obtained primarily from a nationally recognized pricing service.  Our Level 1 securities are valued using an exchange traded price provided by the pricing service. Pricing service valuations for Level 2 securities include multiple verifiable, observable inputs including benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data.  Pricing service valuations for Level 3 securities are based upon proprietary models and are used when observable inputs are not available or in illiquid markets.

Although virtually all of our prices are obtained from third party sources, we also perform internal pricing reviews, including evaluating the methodology and inputs used to ensure that we determine the proper classification level of the financial instrument and reviewing securities with price changes that vary significantly from current market conditions or independent price sources.  Price variances are investigated and corroborated by market data and transaction volumes. We have reviewed the pricing methodologies of our pricing service as well as other observable inputs and believe that the prices adequately consider market activity in determining fair value. 

In limited circumstances we adjust the price received from the pricing service when, in our judgment, a better reflection of fair value is available based upon corroborating information and our knowledge and monitoring of market conditions such as a disparity in price of comparable securities and/or non-binding broker quotes.  In other circumstances, certain securities are internally priced because prices are not provided by the pricing service.

When a price from the pricing service is not available, values are determined by obtaining broker/dealer quotes and/or market comparables. When available, we obtain multiple quotes for the same security. The ultimate value for these securities is determined based upon our best estimate of fair value using corroborating market information. As of September 30, 2025, nearly all of our available-for-sale and equity securities were priced using a third party pricing service.

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

	September 30, 2025
(in thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities:
Corporate debt securities	$	673,086	$	0	$	670,031	$	3,055
Collateralized debt obligations	90,551		0		90,551		0
Commercial mortgage-backed securities	122,211		0		104,445		17,766
Residential mortgage-backed securities	141,166		0		139,882		1,284
Other debt securities	31,449		0		31,449		0
U.S. Treasury	7,370		0		7,370		0
Total available-for-sale securities (1)	1,065,833		0		1,043,728		22,105
Equity securities:
Financial services sector	60,425		2,122		52,798		5,505
Utilities sector	3,534		0		3,534		0
Energy sector	1,988		0		1,988		0
Consumer sector	4,558		0		1,397		3,161
Technology sector	3,224		0		0		3,224
Communications sector	963		0		963		0
Total equity securities (2)	74,692		2,122		60,680		11,890
Total	$	1,140,525	$	2,122	$	1,104,408	$	33,995

(1)This includes $35.9 million of securities lent under a securities lending agreement.

(2)This includes $20.3 million of securities lent under a securities lending agreement.

	December 31, 2024
(in thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities:
Corporate debt securities	$	643,943	$	0	$	637,675	$	6,268
Collateralized debt obligations	114,127		0		114,127		0
Commercial mortgage-backed securities	124,982		0		100,893		24,089
Residential mortgage-backed securities	133,812		0		133,812		0
Other debt securities	26,751		0		26,751		0
Total available-for-sale securities (1)	1,043,615		0		1,013,258		30,357
Equity securities:
Financial services sector	69,930		1,052		65,378		3,500
Utilities sector	5,629		0		5,629		0
Energy sector	4,117		0		4,117		0
Consumer sector	3,341		54		1,787		1,500
Technology sector	1,974		0		0		1,974
Communications sector	900		0		900		0
Total equity securities	85,891		1,106		77,811		6,974
Total	$	1,129,506	$	1,106	$	1,091,069	$	37,331

(1)     This includes $7.3 million of securities lent under a securities lending agreement.

We review the fair value hierarchy classifications each reporting period. Transfers between hierarchy levels may occur due to changes in available market observable inputs.

Level 3 Assets – 2025 Quarterly Change:

(in thousands)	Beginning balance at June 30, 2025		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 September 30, 2025
Available-for-sale securities:
Corporate debt securities	$	6,176	$	21	$	45	$	0	$	(1,252)	$	1,139	$	(3,074)	$	3,055
Commercial mortgage-backed securities	16,434		(226)		99		0		(347)		5,331		(3,525)		17,766
Residential mortgage- backed securities	0		0		0		0		0		1,284		0		1,284
Total available-for-sale securities	22,610		(205)		144		0		(1,599)		7,754		(6,599)		22,105
Equity securities	10,640		0		—		1,250		0		0		0		11,890
Total Level 3 securities	$	33,250	$	(205)	$	144	$	1,250	$	(1,599)	$	7,754	$	(6,599)	$	33,995

Level 3 Assets – 2025 Year-to-Date Change:

(in thousands)	Beginning balance at December 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 September 30, 2025
Available-for-sale securities:
Corporate debt securities	$	6,268	$	51	$	12	$	3,085	$	(2,044)	$	4,615	$	(8,932)	$	3,055
Collateralized debt obligations	0		(4)		0		700		(696)		0		0		0
Commercial mortgage-backed securities	24,089		(848)		503		1,997		(2,734)		16,403		(21,644)		17,766
Residential mortgage-backed securities	0		0		0		0		(18)		2,207		(905)		1,284
Total available-for-sale securities	30,357		(801)		515		5,782		(5,492)		23,225		(31,481)		22,105
Equity securities	6,974		646		—		4,750		0		18		(498)		11,890
Total Level 3 securities	$	37,331	$	(155)	$	515	$	10,532	$	(5,492)	$	23,243	$	(31,979)	$	33,995

Level 3 Assets – 2024 Quarterly Change:

(in thousands)	Beginning balance at June 30, 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 September 30, 2024
Available-for-sale securities:
Corporate debt securities	$	8,543	$	(166)	$	45	$	865	$	(392)	$	1,142	$	(6,396)	$	3,641
Commercial mortgage-backed securities	25,220		(408)		670		1,102		(28)		1,312		(12,108)		15,760
Total available-for-sale securities	33,763		(574)		715		1,967		(420)		2,454		(18,504)		19,401
Equity securities	8,498		517		—		0		0		0		(2,056)		6,959
Total Level 3 securities	$	42,261	$	(57)	$	715	$	1,967	$	(420)	$	2,454	$	(20,560)	$	26,360

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 September 30, 2024
Available-for-sale securities:
Corporate debt securities	$	4,506	$	(141)	$	66	$	5,704	$	(1,215)	$	4,966	$	(10,245)	$	3,641
Commercial mortgage-backed securities	10,994		(1,077)		889		2,907		(33)		18,960		(16,880)		15,760
Residential mortgage-backed securities	1,534		(5)		(24)		0		(40)		0		(1,465)		0
Total available-for-sale securities	17,034		(1,223)		931		8,611		(1,288)		23,926		(28,590)		19,401
Equity securities	7,334		664		—		2,019		(84)		544		(3,518)		6,959
Total Level 3 securities	$	24,368	$	(559)	$	931	$	10,630	$	(1,372)	$	24,470	$	(32,108)	$	26,360

(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.

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:

	September 30, 2025				December 31, 2024
(in thousands)	Carrying value		Fair value		Carrying value		Fair value
Agent loans, net (1)	$	109,131	$	104,110	$	92,731	$	90,713
Other loans receivable, net (2)	16,069		13,187		11,555		11,555
Held-to-maturity securities, net (3)	4,833		4,876		4,833		4,934

(1)    The current portion of agent loans is included in the line item "Prepaid expenses and other current assets, net" in the Consolidated Statements of Financial Position.

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

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