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Fair Value Measurements | 3 Months Ended
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Mar. 31, 2025
Fair Value Disclosures [Abstract] |
Fair Value Measurements | Fair Value Measurements The financial assets in our investment portfolio are primarily measured at fair value as disclosed on the Consolidated Balance Sheets. The following table presents the carrying amounts and fair values of our financial liabilities as of March 31, 2025, and December 31, 2024:
|  | March 31, 2025 |  | December 31, 2024
($ in thousands) |  | Carrying Amount |  | Fair Value |  | Carrying Amount |  | Fair Value
Financial Liabilities |  |  |  |  |  |  |  |
Long-term debt: |  |  |  |  |  |  |  |
7.25% Senior Notes |  | $ | 49,932 |  |  | 55,396 |  |  | 49,931 |  |  | 54,657 |
5.90% Senior Notes |  | 399,912 |  |  | 402,291 |  |  | — |  |  | — |
6.70% Senior Notes |  | 99,597 |  |  | 104,846 |  |  | 99,590 |  |  | 103,057 |
5.375% Senior Notes |  | 294,654 |  |  | 273,711 |  |  | 294,627 |  |  | 273,464 |
3.03% borrowings from FHLBI |  | 60,000 |  |  | 59,003 |  |  | 60,000 |  |  | 58,516 |
Subtotal long-term debt |  | 904,095 |  |  | 895,247 |  |  | 504,148 |  |  | 489,694 |
Unamortized debt issuance costs |  | (6,444) |  |  |  |  | (2,492) |  |  |
Finance lease obligations |  | 5,581 |  |  |  |  | 6,282 |  |  |
Total long-term debt |  | $ | 903,232 |  |  |  |  | 507,938 |  |  |
For discussion regarding the fair value techniques of our financial instruments, refer to Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2024 Annual Report. The following tables provide quantitative disclosures of our financial assets that were measured and recorded at fair value at March 31, 2025, and December 31, 2024:
March 31, 2025 |  |  |  | Fair Value Measurements Using
($ in thousands) |  | Assets Measured at Fair Value |  | Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Description |  |  |  |  |  |  |  |
Measured on a recurring basis: |  |  |  |  |  |  |  |
AFS fixed income securities: |  |  |  |  |  |  |  |
U.S. government and government agencies |  | $ | 134,475 |  |  | 38,061 |  |  | 96,414 |  |  | — |
Foreign government |  | 10,388 |  |  | — |  |  | 10,388 |  |  | — |
Obligations of states and political subdivisions |  | 432,950 |  |  | — |  |  | 425,344 |  |  | 7,606 |
Corporate securities |  | 3,237,221 |  |  | — |  |  | 2,996,304 |  |  | 240,917 |
CLO and other ABS |  | 2,197,185 |  |  | — |  |  | 1,784,383 |  |  | 412,802 |
RMBS |  | 1,852,079 |  |  | — |  |  | 1,852,079 |  |  | — |
CMBS |  | 740,877 |  |  | — |  |  | 740,532 |  |  | 345 |
Total AFS fixed income securities |  | 8,605,175 |  |  | 38,061 |  |  | 7,905,444 |  |  | 661,670 |
Equity securities: |  |  |  |  |  |  |  |
Common stock 1 |  | 264,650 |  |  | 67,602 |  |  | — |  |  | 841 |
Preferred stock |  | 1,821 |  |  | 1,821 |  |  | — |  |  | — |
Total equity securities |  | 266,471 |  |  | 69,423 |  |  | — |  |  | 841 |
Short-term investments |  | 631,090 |  |  | 630,818 |  |  | 272 |  |  | — |
Total assets measured at fair value |  | $ | 9,502,736 |  |  | 738,302 |  |  | 7,905,716 |  |  | 662,511 |
December 31, 2024 |  |  |  | Fair Value Measurements Using
($ in thousands) |  | Assets Measured at Fair Value |  | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Description |  |  |  |  |  |  |  |
Measured on a recurring basis: |  |  |  |  |  |  |  |
AFS fixed income securities: |  |  |  |  |  |  |  |
U.S. government and government agencies |  | $ | 120,155 |  |  | 35,518 |  |  | 84,637 |  |  | — |
Foreign government |  | 9,302 |  |  | — |  |  | 9,302 |  |  | — |
Obligations of states and political subdivisions |  | 451,230 |  |  | — |  |  | 443,804 |  |  | 7,426 |
Corporate securities |  | 3,068,180 |  |  | — |  |  | 2,825,501 |  |  | 242,679 |
CLO and other ABS |  | 2,033,149 |  |  | — |  |  | 1,665,155 |  |  | 367,994 |
RMBS |  | 1,692,358 |  |  | — |  |  | 1,692,358 |  |  | — |
CMBS |  | 752,960 |  |  | — |  |  | 752,620 |  |  | 340 |
Total AFS fixed income securities |  | 8,127,334 |  |  | 35,518 |  |  | 7,473,377 |  |  | 618,439 |
Equity securities: |  |  |  |  |  |  |  |
Common stock 1 |  | 211,767 |  |  | 41,445 |  |  | — |  |  | 808 |
Preferred stock |  | 1,834 |  |  | 1,834 |  |  | — |  |  | — |
Total equity securities |  | 213,601 |  |  | 43,279 |  |  | — |  |  | 808 |
Short-term investments |  | 509,318 |  |  | 474,225 |  |  | 35,093 |  |  | — |
Total assets measured at fair value |  | $ | 8,850,253 |  |  | 553,022 |  |  | 7,508,470 |  |  | 619,247 |
1 Investments amounting to $196.2 million at March 31, 2025, and $169.5 million at December 31, 2024, were measured at fair value using the net asset value per share (or its practical expedient) and have not been classified in the fair value hierarchy. These investments are not redeemable and the timing of liquidations of the underlying assets is unknown at each reporting period. The fair value amounts in this table are intended to permit reconciliation of the fair value hierarchy to total assets measured at fair value. The following tables provide a summary of Level 3 changes in First Quarter 2025 and First Quarter 2024:
March 31, 2025 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
($ in thousands) |  |  | Obligations of States and Political Subdivisions |  | Corporate Securities |  | CLO and Other ABS |  |  |  | CMBS |  | Common Stock |  | Total
Fair value, December 31, 2024 |  |  | $ | 7,426 |  |  | 242,679 |  |  | 367,994 |  |  |  |  | 340 |  |  | 808 |  |  | 619,247 |
Total net gains (losses) for the period included in: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other comprehensive income (loss) ("OCI") |  |  | 91 |  |  | 2,109 |  |  | (1,710) |  |  |  |  | 3 |  |  | — |  |  | 493 |
Net realized and unrealized gains (losses) |  |  | 89 |  |  | 101 |  |  | (92) |  |  |  |  | — |  |  | 33 |  |  | 131 |
Net investment income earned |  |  | — |  |  | 12 |  |  | (43) |  |  |  |  | 5 |  |  | — |  |  | (26) |
Purchases |  |  | — |  |  | 1,908 |  |  | 30,454 |  |  |  |  | — |  |  | — |  |  | 32,362 |
Sales |  |  | — |  |  | — |  |  | — |  |  |  |  | — |  |  | — |  |  | — |
Issuances |  |  | — |  |  | — |  |  | — |  |  |  |  | — |  |  | — |  |  | — |
Settlements |  |  | — |  |  | (5,892) |  |  | (7,080) |  |  |  |  | (3) |  |  | — |  |  | (12,975) |
Transfers into Level 3 |  |  | — |  |  | — |  |  | 23,279 |  |  |  |  | — |  |  | — |  |  | 23,279 |
Transfers out of Level 3 |  |  | — |  |  | — |  |  | — |  |  |  |  | — |  |  | — |  |  | — |
Fair value, March 31, 2025 |  |  | $ | 7,606 |  |  | 240,917 |  |  | 412,802 |  |  |  |  | 345 |  |  | 841 |  |  | 662,511 |
Change in unrealized gains (losses) for the period included in earnings for assets held at period end |  |  | 89 |  |  | 101 |  |  | (92) |  |  |  |  | — |  |  | 33 |  |  | 131 |
Change in unrealized gains (losses) for the period included in OCI for assets held at period end |  |  | 91 |  |  | 2,149 |  |  | (1,710) |  |  |  |  | 3 |  |  | — |  |  | 533 |
March 31, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |
($ in thousands) | Obligation of state and Political Subdivisions |  | Corporate Securities |  | CLO and Other ABS |  |  |  | CMBS |  | Common Stock |  | Total
Fair value, December 31, 2023 | $ | 7,834 |  |  | 297,332 |  |  | 245,313 |  |  |  |  | 356 |  |  | 854 |  |  | 551,689 |
Total net gains (losses) for the period included in: |  |  |  |  |  |  |  |  |  |  |  |  |
OCI | (86) |  |  | (376) |  |  | 399 |  |  |  |  | 3 |  |  | — |  |  | (60) |
Net realized and unrealized gains (losses) | (1) |  |  | 140 |  |  | 57 |  |  |  |  | — |  |  | 213 |  |  | 409 |
Net investment income earned | — |  |  | 280 |  |  | (1) |  |  |  |  | (1) |  |  | — |  |  | 278 |
Purchases | — |  |  | 1,152 |  |  | 14,658 |  |  |  |  | — |  |  | — |  |  | 15,810 |
Sales | — |  |  | — |  |  | — |  |  |  |  | — |  |  | — |  |  | — |
Issuances | — |  |  | — |  |  | — |  |  |  |  | — |  |  | — |  |  | — |
Settlements | — |  |  | (2,870) |  |  | (1,173) |  |  |  |  | (3) |  |  | — |  |  | (4,046) |
Transfers into Level 3 | — |  |  | 20,065 |  |  | 19,537 |  |  |  |  | — |  |  | — |  |  | 39,602 |
Transfers out of Level 3 | — |  |  | (28,227) |  |  | (18,693) |  |  |  |  | — |  |  | — |  |  | (46,920) |
Fair value, March 31, 2024 | $ | 7,747 |  |  | 287,496 |  |  | 260,097 |  |  |  |  | 355 |  |  | 1,067 |  |  | 556,762 |
Change in unrealized gains (losses) for the period included in earnings for assets held at period end | (1) |  |  | 140 |  |  | 57 |  |  |  |  | — |  |  | 213 |  |  | 409 |
Change in unrealized gains (losses) for the period included in OCI for assets held at period end | (86) |  |  | (376) |  |  | 399 |  |  |  |  | 3 |  |  | — |  |  | (60) |
The following tables present quantitative information about the significant unobservable inputs used in the fair value measurements of Level 3 assets at March 31, 2025, and December 31, 2024:
March 31, 2025 |  |  |  |  |  |  |  |  |  |
($ in thousands) |  | Assets Measured at Fair Value |  | Valuation Techniques |  | Unobservable Inputs |  | Range |  | Weighted Average
Internal valuations: |  |  |  |  |  |  |  |  |  |
Corporate securities |  | $ | 147,340 |  |  | Discounted Cash Flow |  | Illiquidity Spread |  | (4.4)% - 5.3% |  | 1.8%
CLO and other ABS |  | 231,805 |  |  | Discounted Cash Flow |  | Illiquidity Spread |  | (0.97)% - 19.6% |  | 2.2%
Total internal valuations |  | 379,145 |  |  |  |  |  |  |  |  |
Other 1 |  | 283,366 |  |  |  |  |  |  |  |  |
Total Level 3 securities |  | $ | 662,511 |  |  |  |  |  |  |  |  |
December 31, 2024 |  |  |  |  |  |  |  |  |  |
($ in thousands) |  | Assets Measured at Fair Value |  | Valuation Techniques |  | Unobservable Inputs |  | Range |  | Weighted Average
Internal valuations: |  |  |  |  |  |  |  |  |  |
Corporate securities |  | $ | 147,294 |  |  | Discounted Cash Flow |  | Illiquidity Spread |  | (4.4)% - 5.3% |  | 1.7%
CLO and other ABS |  | 249,506 |  |  | Discounted Cash Flow |  | Illiquidity Spread |  | (0.97)% - 19.6% |  | 1.9%
Total internal valuations |  | 396,800 |  |  |  |  |  |  |  |  |
Other 1 |  | 222,447 |  |  |  |  |  |  |  |  |
Total Level 3 securities |  | $ | 619,247 |  |  |  |  |  |  |  |  |
1 Other is comprised of broker quotes or other third-party pricing for which there is a lack of transparency into the inputs used to develop the valuations. The quantitative details of these unobservable inputs are neither provided to us, nor reasonably available to us, and therefore are not included in the tables above. For the securities in the tables above valued using a discounted cash flow analysis, we apply an illiquidity spread in determining fair value. An increase in this assumption would result in a lower fair value measurement. The following tables provide quantitative information about our financial assets and liabilities that were not measured at fair value, but were disclosed as such at March 31, 2025, and December 31, 2024:
March 31, 2025 |  |  |  | Fair Value Measurements Using
($ in thousands) |  | Assets/ Liabilities Disclosed at Fair Value |  | Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Financial Assets |  |  |  |  |  |  |  |
HTM: |  |  |  |  |  |  |  |
Corporate securities |  | $ | 24,800 |  |  | — |  |  | 24,800 |  |  | — |
Total HTM fixed income securities |  | 24,800 |  |  | — |  |  | 24,800 |  |  | — |
CMLs |  | $ | 251,498 |  |  | — |  |  | — |  |  | 251,498 |
Financial Liabilities |  |  |  |  |  |  |  |
Long-term debt: |  |  |  |  |  |  |  |
7.25% Senior Notes |  | $ | 55,396 |  |  | — |  |  | 55,396 |  |  | — |
5.90% Senior Notes |  | 402,291 |  |  | — |  |  | 402,291 |  |  | — |
6.70% Senior Notes |  | 104,846 |  |  | — |  |  | 104,846 |  |  | — |
5.375% Senior Notes |  | 273,711 |  |  | — |  |  | 273,711 |  |  | — |
3.03% borrowings from FHLBI |  | 59,003 |  |  | — |  |  | 59,003 |  |  | — |
Total long-term debt |  | $ | 895,247 |  |  | — |  |  | 895,247 |  |  | — |
December 31, 2024 |  |  |  | Fair Value Measurements Using
($ in thousands) |  | Assets/ Liabilities Disclosed at Fair Value |  | Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Financial Assets |  |  |  |  |  |  |  |
HTM: |  |  |  |  |  |  |  |
Corporate securities |  | $ | 24,735 |  |  | — |  |  | 24,735 |  |  | — |
Total HTM fixed income securities |  | 24,735 |  |  | — |  |  | 24,735 |  |  | — |
CMLs |  | $ | 224,842 |  |  | — |  |  | — |  |  | 224,842 |
Financial Liabilities |  |  |  |  |  |  |  |
Long-term debt: |  |  |  |  |  |  |  |
7.25% Senior Notes |  | $ | 54,657 |  |  | — |  |  | 54,657 |  |  | — |
6.70% Senior Notes |  | 103,057 |  |  | — |  |  | 103,057 |  |  | — |
5.375% Senior Notes |  | 273,464 |  |  | — |  |  | 273,464 |  |  | — |
3.03% borrowings from FHLBI |  | 58,516 |  |  | — |  |  | 58,516 |  |  | — |
Total long-term debt |  | $ | 489,694 |  |  | — |  |  | 489,694 |  |  | — |

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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/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 2: 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 3: 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 4: 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 5: 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 6: 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 7: 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 8: 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 9: 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 10: 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 11: 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 12: 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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