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Fair Value Of Financial Instruments | 9 Months Ended
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Sep. 30, 2025
Fair Value Disclosures [Abstract] |
Fair Value Of Financial Instruments | Fair Value Measurements The Company’s fixed maturity available for sale securities, equity securities and its arbitrage trading account securities are carried at fair value. Fair value is defined as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” The Company utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels, as follows: Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 - Quoted prices for similar assets or valuations based on inputs that are observable. Level 3 - Estimates of fair value based on internal pricing methodologies using unobservable inputs. Unobservable inputs are only used to measure fair value to the extent that observable inputs are not available. Substantially all of the Company’s fixed maturity securities were priced by independent pricing services. The prices provided by the independent pricing services are estimated based on observable market data in active markets utilizing pricing models and processes, which may include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, sector groupings, matrix pricing and reference data. The pricing services may prioritize inputs differently on any given day for any security based on market conditions, and not all inputs are available for each security evaluation on any given day. The pricing services used by the Company have indicated that they will only produce an estimate of fair value if objectively verifiable information is available. The determination of whether markets are active or inactive is based upon the volume and level of activity for a particular asset class. The Company reviews the prices provided by pricing services for reasonableness and periodically performs independent price tests of a sample of securities to ensure proper valuation. If prices from independent pricing services are not available for fixed maturity securities, the Company estimates the fair value. For Level 2 securities, the Company utilizes pricing models and processes which may include benchmark yields, sector groupings, matrix pricing, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, bids, offers and reference data. Where broker quotes are used, the Company generally requests two or more quotes and sets a price within the range of quotes received based on its assessment of the credibility of the quote and its own evaluation of the security. The Company generally does not adjust quotes received from brokers. For securities traded only in private negotiations, the Company determines fair value based primarily on the cost of such securities, which is adjusted to reflect prices of recent placements of securities of the same issuer, financial projections, credit quality and business developments of the issuer and other relevant information. For Level 3 securities, the Company generally uses a discounted cash flow model to estimate the fair value of fixed maturity securities. The cash flow models are based upon assumptions as to prevailing credit spreads, interest rate and interest rate volatility, time to maturity and subordination levels. Projected cash flows are discounted at rates that are adjusted to reflect illiquidity, where appropriate. The following tables present the assets and liabilities measured at fair value on a recurring basis as of September 30, 2025 and December 31, 2024 by level:
(In thousands) | Total |  | Level 1 |  | Level 2 |  | Level 3
September 30, 2025 |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |
Fixed maturity securities available for sale: |  |  |  |  |  |  |
U.S. government and government agency | $ | 3,478,237 |  |  | $ | — |  |  | $ | 3,478,237 |  |  | $ | — |
State and municipal | 1,974,136 |  |  | — |  |  | 1,974,136 |  |  | — |
Mortgage-backed | 4,969,446 |  |  | — |  |  | 4,969,446 |  |  | — |
Asset-backed | 3,831,174 |  |  | — |  |  | 3,831,174 |  |  | — |
Corporate | 8,740,772 |  |  | — |  |  | 8,720,753 |  |  | 20,019 |
Foreign government | 1,923,864 |  |  | — |  |  | 1,923,864 |  |  | — |
Total fixed maturity securities available for sale | 24,917,629 |  |  | — |  |  | 24,897,610 |  |  | 20,019 |
Equity securities: |  |  |  |  |  |  |
Common stocks | 721,950 |  |  | 718,999 |  |  | 842 |  |  | 2,109 |
Preferred stocks | 660,482 |  |  | — |  |  | 651,808 |  |  | 8,674 |
Total equity securities | 1,382,432 |  |  | 718,999 |  |  | 652,650 |  |  | 10,783 |
Arbitrage trading account | 1,070,304 |  |  | 881,153 |  |  | 189,038 |  |  | 113 |
Total | $ | 27,370,365 |  |  | $ | 1,600,152 |  |  | $ | 25,739,298 |  |  | $ | 30,915 |
Liabilities: |  |  |  |  |  |  |
Trading account securities sold but not yet purchased | $ | 34,509 |  |  | $ | 34,509 |  |  | $ | — |  |  | $ | — |
December 31, 2024 |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |
Fixed maturity securities available for sale: |  |  |  |  |  |  |
U.S. government and government agency | $ | 2,235,341 |  |  | $ | — |  |  | $ | 2,235,341 |  |  | $ | — |
State and municipal | 2,294,644 |  |  | — |  |  | 2,294,644 |  |  | — |
Mortgage-backed | 3,765,490 |  |  | — |  |  | 3,765,490 |  |  | — |
Asset-backed | 3,885,012 |  |  | — |  |  | 3,885,012 |  |  | — |
Corporate | 8,417,641 |  |  | — |  |  | 8,397,974 |  |  | 19,667 |
Foreign government | 1,755,325 |  |  | — |  |  | 1,755,325 |  |  | — |
Total fixed maturity securities available for sale | 22,353,453 |  |  | — |  |  | 22,333,786 |  |  | 19,667 |
Equity securities: |  |  |  |  |  |  |
Common stocks | 760,167 |  |  | 757,115 |  |  | 1,011 |  |  | 2,041 |
Preferred stocks | 443,621 |  |  | — |  |  | 439,947 |  |  | 3,674 |
Total equity securities | 1,203,788 |  |  | 757,115 |  |  | 440,958 |  |  | 5,715 |
Arbitrage trading account | 1,122,599 |  |  | 1,062,459 |  |  | 56,630 |  |  | 3,510 |
Total | $ | 24,679,840 |  |  | $ | 1,819,574 |  |  | $ | 22,831,374 |  |  | $ | 28,892 |
Liabilities: |  |  |  |  |  |  |
Trading account securities sold but not yet purchased | $ | 73,358 |  |  | $ | 73,358 |  |  | $ | — |  |  | $ | — |
The following tables summarize changes in Level 3 assets and liabilities for the nine months ended September 30, 2025 and for the year ended December 31, 2024:
Gains (Losses) Included In:
(In thousands) | Beginning Balance |  | (Losses) Earnings |  | Other Comprehensive Income (Losses) |  | Impairments |  | Purchases |  | Sales |  | Paydowns / Maturities |  | Transfers In / (Out) |  | Ending Balance
Nine Months Ended September 30, 2025 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturities securities available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate | $ | 19,667 |  |  | $ | — |  |  | $ | 352 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 20,019 |
Total | 19,667 |  |  | — |  |  | 352 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 20,019 |
Equity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common stocks | 2,041 |  |  | 194 |  |  | — |  |  | — |  |  | — |  |  | (126) |  |  | — |  |  | — |  |  | 2,109 |
Preferred stocks | 3,674 |  |  | — |  |  | — |  |  | — |  |  | 6,160 |  |  | (1,160) |  |  | — |  |  | — |  |  | 8,674 |
Total | 5,715 |  |  | 194 |  |  | — |  |  | — |  |  | 6,160 |  |  | (1,286) |  |  | — |  |  | — |  |  | 10,783 |
Arbitrage trading account | 3,510 |  |  | (3,398) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | 113 |
Total | $ | 28,892 |  |  | $ | (3,204) |  |  | $ | 352 |  |  | $ | — |  |  | $ | 6,160 |  |  | $ | (1,286) |  |  | $ | — |  |  | $ | 1 |  |  | $ | 30,915 |
Year Ended December 31, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturities securities available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate | $ | — |  |  | $ | — |  |  | $ | (333) |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 20,000 |  |  | $ | 19,667 |
Total | — |  |  | — |  |  | (333) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 20,000 |  |  | 19,667 |
Equity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common stocks | 1,558 |  |  | 611 |  |  | — |  |  | — |  |  | — |  |  | (128) |  |  | — |  |  | — |  |  | 2,041 |
Preferred stocks | 3,695 |  |  | 36 |  |  | — |  |  | — |  |  | — |  |  | (57) |  |  | — |  |  | — |  |  | 3,674 |
Total | 5,253 |  |  | 647 |  |  | — |  |  | — |  |  | — |  |  | (185) |  |  | — |  |  | — |  |  | 5,715 |
Arbitrage trading account | 3,772 |  |  | (261) |  |  | — |  |  | — |  |  | — |  |  | (38) |  |  | — |  |  | 37 |  |  | 3,510 |
Total | $ | 9,025 |  |  | $ | 386 |  |  | $ | (333) |  |  | $ | — |  |  | $ | — |  |  | $ | (223) |  |  | $ | — |  |  | $ | 20,037 |  |  | $ | 28,892 |
For the nine months ended September 30, 2025, and the year ended December 31, 2024, one security was transferred into Level 3 from Level 2 given there were no available quoted prices or observable inputs. Fair Value of Financial Instruments The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments:
| September 30, 2025 |  | December 31, 2024
(In thousands) | Carrying Value |  | Fair Value |  | Carrying Value |  | Fair Value
Assets: |  |  |  |  |  |  |
Fixed maturity securities | $ | 24,947,949 |  |  | $ | 24,949,094 |  |  | $ | 22,397,865 |  |  | $ | 22,399,426 |
Equity securities | 1,382,432 |  |  | 1,382,432 |  |  | 1,203,788 |  |  | 1,203,788 |
Arbitrage trading account | 1,070,304 |  |  | 1,070,304 |  |  | 1,122,599 |  |  | 1,122,599 |
Loans receivable | 326,855 |  |  | 327,102 |  |  | 405,453 |  |  | 405,248 |
Cash and cash equivalents | 2,404,019 |  |  | 2,404,019 |  |  | 1,974,747 |  |  | 1,974,747 |
Trading account receivables from brokers and clearing organizations | 113,330 |  |  | 113,330 |  |  | 60,327 |  |  | 60,327 |
Liabilities: |  |  |  |  |  |  |
Due to broker | 130,723 |  |  | 130,723 |  |  | 70,483 |  |  | 70,483 |
Trading account securities sold but not yet purchased | 34,509 |  |  | 34,509 |  |  | 73,358 |  |  | 73,358 |
Senior notes and other debt | 1,829,511 |  |  | 1,482,612 |  |  | 1,831,158 |  |  | 1,425,852 |
Subordinated debentures | 1,010,347 |  |  | 834,836 |  |  | 1,009,808 |  |  | 805,864 |
The estimated fair values of the Company’s fixed maturity securities, equity securities and arbitrage trading account securities are based on various valuation techniques that rely on fair value measurements as described in Note 15. The fair value of loans receivable are estimated by using current institutional purchaser yield requirements for loans with similar credit characteristics, which is considered a Level 2 input. The fair value of the senior notes and other debt and the subordinated debentures is based on spreads for similar securities, which is considered a Level 2 input.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 3: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
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