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Equity Securities | 9 Months Ended
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Sep. 30, 2021
Investments Debt And Equity Securities [Abstract] |
Equity Securities | Note 5 – Equity Securities Investments in equity securities, by classification, are summarized as follows:
(in thousands) |  | September 30, 2021 |  |  | December 31, 2020 |
Marketable equity securities |  | $ | 760,758 |  |  | $ | 464,126 |
Non-marketable equity securities |  |  | 379,548 |  |  |  | 217,104 |
Equity method investments |  |  | 69,373 |  |  |  | 68,781 |
|  | $ | 1,209,679 |  |  | $ | 750,011 |
See Note 1 Basis of Condensed Consolidated Financial Statements for further discussion of the balance sheet reclassifications of non-marketable equity securities and equity method investments to equity securities. Investments in marketable equity securities are summarized as follows:
(in thousands) |  | Cost |  |  | Estimated fair value |
September 30, 2021 |  |  |  |  |  |  |  |
Preferred stocks |  | $ | 16,810 |  |  | $ | 16,944 |
Common stocks (1) |  |  | 443,137 |  |  |  | 743,814 |
|  | $ | 459,947 |  |  | $ | 760,758 |
December 31, 2020 |  |  |  |  |  |  |  |
Preferred stocks |  | $ | 22,163 |  |  | $ | 19,479 |
Common stocks |  |  | 354,157 |  |  |  | 444,647 |
|  | $ | 376,320 |  |  | $ | 464,126 |
| (1) | Includes Offerpad Solutions Inc. with a cost of $85.0 million and estimated fair value of $280.3 million. See below for further discussion about the Company’s investment in Offerpad Solutions Inc.
Net losses (realized and unrealized) of $16.1 million and net gains (realized and unrealized) of $27.2 million were recognized for the three and nine months ended September 30, 2021, respectively, as a result of changes in the fair values of marketable equity securities. Included in net gains during the three and nine months ended September 30, 2021 were net unrealized losses of $16.7 million and net unrealized gains $25.5 million, respectively, related to marketable equity securities still held at September 30, 2021. Net gains (realized and unrealized) of $26.0 million and $2.6 million were recognized for the three and nine months ended September 30, 2020, respectively, as a result of changes in the fair values of marketable equity securities. Included in net gains during the three and nine months ended September 30, 2020 were net unrealized gains of $26.1 million and $2.4 million, respectively, related to marketable equity securities still held at September 30, 2020. Net gains (realized and unrealized) are recognized in net realized investment gains/losses on the condensed consolidated statements of income. Investments in non-marketable equity securities are summarized as follows:
(in thousands) |  | Cost |  |  |  | Unrealized gains |  |  | Carrying amount |
September 30, 2021 |  | $ | 198,155 |  |  | $ | 181,393 |  |  | $ | 379,548 |
December 31, 2020 |  | $ | 200,858 |  |  | $ | 16,246 |  |  | $ | 217,104 |
A substantial majority of the Company’s investments in non-marketable equity securities are in private venture-stage companies that operate in the real estate industry and related industries, many of which offer technology-enabled products and services. On September 1, 2021, Offerpad, Inc., a leading tech-enabled real estate solutions platform in which the Company maintains an ownership interest, and Supernova Partners Acquisition Company, Inc., a publicly traded special purpose acquisition company, completed their previously announced merger and combined to form Offerpad Solutions Inc. (“Offerpad”), a publicly traded company. The fair value of the Company’s investment in Offerpad as of September 30, 2021 was $280.3 million, which resulted in the Company recognizing an unrealized gain of $195.3 million for the three and nine months ended September 30, 2021. Effective September 1, 2021, the Company’s investment in Offerpad is classified within its marketable equity securities portfolio. Included in investments in private venture-stage companies at September 30, 2021 are the Company’s investments in Orchard Technologies, Inc. with a cost and carrying amount of $41.0 million and $106.3 million, respectively, and Side, Inc. with a cost and carrying amount of $10.1 million and $73.8 million, respectively. Unrealized gains of $79.4 million and $165.1 million were recognized during the three and nine months ended September 30, 2021, respectively, related to investments in private venture-stage companies for which transactions resulted in observable price changes. All such gains recognized during the nine months ended September 30, 2021 related to securities still held at September 30, 2021. Unrealized gains recognized on investments in private venture-stage companies for the three and nine months ended September 30, 2020 were $9.3 million. Net gains (realized and unrealized) are recognized in net realized investment gains/losses on the condensed consolidated statements of income.

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