XML 53 R38.htm IDEA: XBRL DOCUMENT v3.25.4
Fair Value (Tables)
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Values of Financial Instruments

The estimated fair values of the financial instruments were as follows:

 

 

 

December 31, 2025

 

 

December 31, 2024

 

 

 

Carrying

 

 

Fair

 

 

Carrying

 

 

Fair

 

(in millions)

 

Value

 

 

Value

 

 

Value

 

 

Value

 

Financial Assets carried at:

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value through Accumulated Other Comprehensive Loss:

 

 

 

 

 

 

 

 

 

 

 

 

Fixed maturities

 

$

9,536.5

 

 

$

9,536.5

 

 

$

8,542.2

 

 

$

8,542.2

 

Fair Value through Net Income:

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities

 

 

184.8

 

 

 

184.8

 

 

 

157.7

 

 

 

157.7

 

Other investments

 

 

80.9

 

 

 

80.9

 

 

 

86.9

 

 

 

86.9

 

Amortized Cost/Cost:

 

 

 

 

 

 

 

 

 

 

 

 

Other investments

 

 

282.8

 

 

 

274.5

 

 

 

343.7

 

 

 

324.2

 

Cash and cash equivalents

 

 

1,122.7

 

 

 

1,122.7

 

 

 

435.5

 

 

 

435.5

 

Total financial instruments

 

$

11,207.7

 

 

$

11,199.4

 

 

$

9,566.0

 

 

$

9,546.5

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Liabilities carried at:

 

 

 

 

 

 

 

 

 

 

 

 

Amortized Cost:

 

 

 

 

 

 

 

 

 

 

 

 

Debt

 

$

1,218.3

 

 

$

1,206.6

 

 

$

784.1

 

 

$

744.4

 
Fair Value, Investment Assets Measured on Recurring Basis

The following tables provide, for each hierarchy level, the Company’s investment assets that were measured at fair value on a recurring basis.

 

 

DECEMBER 31, 2025

 

(in millions)

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Fixed maturities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and government agencies

 

$

455.5

 

 

$

331.1

 

 

$

124.4

 

 

$

—

 

Foreign governments

 

 

2.7

 

 

 

—

 

 

 

2.7

 

 

 

—

 

Municipals

 

 

847.7

 

 

 

—

 

 

 

840.3

 

 

 

7.4

 

Corporates

 

 

4,253.5

 

 

 

—

 

 

 

4,253.5

 

 

 

—

 

Residential mortgage-backed, U.S. agency backed

 

 

1,903.2

 

 

 

—

 

 

 

1,903.2

 

 

 

—

 

Residential mortgage-backed, non-agency

 

 

518.6

 

 

 

—

 

 

 

518.6

 

 

 

—

 

Commercial mortgage-backed

 

 

589.9

 

 

 

—

 

 

 

585.0

 

 

 

4.9

 

Other asset-backed

 

 

965.4

 

 

 

—

 

 

 

965.4

 

 

 

—

 

Total fixed maturities

 

 

9,536.5

 

 

 

331.1

 

 

 

9,193.1

 

 

 

12.3

 

Equity securities

 

 

184.8

 

 

 

164.3

 

 

 

—

 

 

 

20.5

 

Other investments

 

 

16.8

 

 

 

—

 

 

 

13.4

 

 

 

3.4

 

Total investment assets at fair value

 

$

9,738.1

 

 

$

495.4

 

 

$

9,206.5

 

 

$

36.2

 

 

 

 

DECEMBER 31, 2024

 

(in millions)

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Fixed maturities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and government agencies

 

$

494.2

 

 

$

363.9

 

 

$

130.3

 

 

$

—

 

Foreign governments

 

 

1.9

 

 

 

—

 

 

 

1.9

 

 

 

—

 

Municipals

 

 

893.8

 

 

 

—

 

 

 

886.2

 

 

 

7.6

 

Corporates

 

 

3,805.9

 

 

 

—

 

 

 

3,805.9

 

 

 

—

 

Residential mortgage-backed, U.S. agency backed

 

 

1,790.7

 

 

 

—

 

 

 

1,790.7

 

 

 

—

 

Residential mortgage-backed, non-agency

 

 

333.4

 

 

 

—

 

 

 

333.4

 

 

 

—

 

Commercial mortgage-backed

 

 

522.2

 

 

 

—

 

 

 

516.3

 

 

 

5.9

 

Other asset-backed

 

 

700.1

 

 

 

—

 

 

 

700.1

 

 

 

—

 

Total fixed maturities

 

 

8,542.2

 

 

 

363.9

 

 

 

8,164.8

 

 

 

13.5

 

Equity securities

 

 

157.7

 

 

 

136.9

 

 

 

—

 

 

 

20.8

 

Other investments

 

 

3.9

 

 

 

—

 

 

 

—

 

 

 

3.9

 

Total investment assets at fair value

 

$

8,703.8

 

 

$

500.8

 

 

$

8,164.8

 

 

$

38.2

 
Estimated Fair Values of Financial Instruments Not Carried at Fair Value

The following tables provide, for each hierarchy level, the Company’s estimated fair values of financial instruments that were not carried at fair value.

 

 

DECEMBER 31, 2025

 

(in millions)

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,122.7

 

 

$

1,122.7

 

 

$

—

 

 

$

—

 

Other investments

 

 

274.5

 

 

 

—

 

 

 

6.1

 

 

 

268.4

 

Total financial instruments

 

$

1,397.2

 

 

$

1,122.7

 

 

$

6.1

 

 

$

268.4

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Debt

 

$

1,206.6

 

 

$

—

 

 

$

1,206.6

 

 

$

—

 

 

 

 

DECEMBER 31, 2024

 

(in millions)

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

435.5

 

 

$

435.5

 

 

$

—

 

 

$

—

 

Other investments

 

 

324.2

 

 

 

—

 

 

 

6.1

 

 

 

318.1

 

Total financial instruments

 

$

759.7

 

 

$

435.5

 

 

$

6.1

 

 

$

318.1

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Debt

 

$

744.4

 

 

$

—

 

 

$

744.4

 

 

$

—

 

 
Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3)

The following tables provide a reconciliation for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3).

YEAR ENDED DECEMBER 31, 2025

 

Fixed Maturities

 

 

 

 

 

 

 

(in millions)

 

Municipals

 

 

Corporates

 

 

Commercial
mortgage-
backed

 

 

Total

 

 

Equities
and
Other

 

 

Total
Assets

 

Balance at beginning of year

 

$

7.6

 

 

$

—

 

 

$

5.9

 

 

$

13.5

 

 

$

24.7

 

 

$

38.2

 

Total gains:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in net realized and unrealized
investment gains (losses)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0.5

 

 

 

0.5

 

Included in other comprehensive income -
changes in net unrealized gains on
investment securities

 

 

0.3

 

 

 

—

 

 

 

0.3

 

 

 

0.6

 

 

 

—

 

 

 

0.6

 

Settlements

 

 

(0.5

)

 

 

—

 

 

 

(1.3

)

 

 

(1.8

)

 

 

(1.3

)

 

 

(3.1

)

Balance at end of year

 

$

7.4

 

 

$

—

 

 

$

4.9

 

 

$

12.3

 

 

$

23.9

 

 

$

36.2

 

Changes in net unrealized gains for the
period included in other comprehensive
income for assets held at the
end of the year

 

$

0.3

 

 

$

—

 

 

$

0.3

 

 

$

0.6

 

 

$

—

 

 

$

0.6

 

 

YEAR ENDED DECEMBER 31, 2024

 

Fixed Maturities

 

 

 

 

 

 

 

(in millions)

 

Municipals

 

 

Corporates

 

 

Commercial
mortgage-
backed

 

 

Total

 

 

Equities
and
Other

 

 

Total
Assets

 

Balance at beginning of year

 

$

8.6

 

 

$

0.1

 

 

$

7.0

 

 

$

15.7

 

 

$

11.4

 

 

$

27.1

 

Transfers out of Level 3

 

 

—

 

 

 

(0.1

)

 

 

—

 

 

 

(0.1

)

 

 

—

 

 

 

(0.1

)

Total gains (losses):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in net realized and unrealized
investment gains (losses)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0.6

 

 

 

0.6

 

Included in other comprehensive income
- changes in net unrealized gains
on investment securities

 

 

—

 

 

 

—

 

 

 

(0.5

)

 

 

(0.5

)

 

 

—

 

 

 

(0.5

)

Purchases and sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Addition

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

14.2

 

 

 

14.2

 

Settlements

 

 

(1.0

)

 

 

—

 

 

 

(0.6

)

 

 

(1.6

)

 

 

(1.5

)

 

 

(3.1

)

Balance at end of year

 

$

7.6

 

 

$

—

 

 

$

5.9

 

 

$

13.5

 

 

$

24.7

 

 

$

38.2

 

Changes in net unrealized gains for the
period included in other comprehensive
income for assets held at the
end of the year

 

$

—

 

 

$

—

 

 

$

(0.5

)

 

$

(0.5

)

 

$

—

 

 

$

(0.5

)
There were no securities transferred between Level 2 and Level 3, d
Schedule of Additional Information About Significant Unobservable Inputs Used in Fair Valuations of Level 3

The following table provides quantitative information about the significant unobservable inputs used by the Company in the fair value measurements of Level 3 assets. A valuation of $11.7 million for an equity security based on a dealer quote for which there was a lack of transparency as to inputs used to develop the valuation has been excluded.

DECEMBER 31

 

2025

 

2024

 

 

Valuation

 

Significant

 

Fair

 

 

Range

 

Fair

 

 

Range

(in millions)

 

Technique

 

Unobservable Inputs

 

Value

 

 

(Wtd Average)

 

Value

 

 

(Wtd Average)

Fixed maturities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Municipals

 

Discounted

 

Discount for:

 

$

7.4

 

 

 

 

$

7.6

 

 

 

 

cash flow

 

   Small issue size

 

 

 

 

6.8 - 6.8%

 

 

 

 

6.1 - 6.8% (6.7%)

Commercial
mortgage-backed

 

Discounted
cash flow

 

Discount for:
   Small issue size
   Above-market coupon
   Lease structure

 

 

4.9

 

 

5.0% (5.0%)
―
0.3% (0.3%)

 

 

5.9

 

 

3.0 - 5.0% (4.7%)
0.5% (0.5%)
0.3% (0.3%)

Equity securities

 

Market
comparables

 

Net tangible asset

 

 

1.5

 

 

N/A

 

 

1.4

 

 

N/A

 

 

Internal price based on

 

Discount for:

 

 

7.3

 

 

 

 

7.4

 

 

 

 

financing round

 

Market liquidity

 

 

 

 

27.0% (27.0%)

 

 

 

 

27.0% (27.0%)

Other

 

Discounted
cash flow

 

Discount rate

 

 

3.4

 

 

18.6% (18.6%)

 

 

3.9

 

 

16.6% (16.6%)