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Fair Value Measurement
 12 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
Fair Value Measurement
4. Fair Value Measurement
The following table summarizes the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis (in millions):
December 31, 2023
Level 1Level 2Level 3Total
Financial assets:
Cash, cash equivalents, and restricted cash$195.1 $— $— $195.1 
Fixed maturities available-for-sale:
U.S. government and agencies18.4 — — 18.4 
States and other territories— 8.9 — 8.9 
Corporate securities— 91.1 — 91.1 
Foreign securities— 0.9 — 0.9 
Residential mortgage-backed securities— 19.5 — 19.5 
Commercial mortgage-backed securities— 7.1 — 7.1 
Asset backed securities— 15.8 — 15.8 
Total fixed maturities available-for-sale18.4 143.3 — 161.7 
Short-term investments
U.S. government and agencies137.7 — — 137.7 
Commercial paper— 34.5 — 34.5 
Corporate securities— 14.9 — 14.9 
Total short-term investments137.7 49.4 — 187.1 
Total financial assets$351.2 $192.7 $— $543.9 
Financial liabilities:
Contingent consideration liability$— $— $13.6 $13.6 
Public warrants0.1 — — 0.1 
Private placement warrants— 0.1 — 0.1 
Total financial liabilities$0.1 $0.1 $13.6 $13.8 
December 31, 2022
Level 1Level 2Level 3Total
Financial assets:
Cash, cash equivalents, and restricted cash$244.5 $— $— $244.5 
Fixed maturities available-for-sale:
U.S. government and agencies21.1 — — 21.1 
States and other territories— 8.3 — 8.3 
Corporate securities— 52.5 — 52.5 
Foreign securities— 0.8 — 0.8 
Residential mortgage-backed securities— 18.9 — 18.9 
Commercial mortgage-backed securities— 5.8 — 5.8 
Asset backed securities— 13.7 — 13.7 
Total fixed maturities available-for-sale21.1 100.0 — 121.1 
Short-term investments
U.S. government and agencies128.9 — — 128.9 
Commercial paper— 146.5 — 146.5 
Corporate securities— 49.4 — 49.4 
Total short-term investments128.9 195.9 — 324.8 
Total financial assets$394.5 $295.9 $— $690.4 
Financial liabilities:
Contingent consideration liability$— $— $11.9 $11.9 
Public warrants0.2 — — 0.2 
Private placement warrants— 0.1 — 0.1 
Total financial liabilities$0.2 $0.1 $11.9 $12.2 
The Company’s policy is to recognize transfers into and transfers out of fair value hierarchy levels at the end of each reporting period. There were no transfers between levels in the fair value hierarchy during the years ended December 31, 2023 and December 31, 2022.
Contingent Consideration
The contingent consideration, relating to the Company’s 2019 acquisition of North American Advantage Insurance Services, LLC is re-valued to fair value at the end of each reporting period using the present value of future payments based on an estimate of revenue and customer renewals of the acquiree. North American Advantage Insurance Services, LLC’s ultimate parent company was Lennar Corporation, a related party of the Company. There is no limit to the maximum potential contingent consideration as the consideration is based on acquired customer retention. The table below presents the changes in the contingent consideration liability valued using Level 3 inputs (in millions):
20232022
Balance as of January 1,$11.9 $11.6 
Payments of contingent consideration(4.3)(3.8)
Changes in fair value6.0 4.1 
Balance as of December 31,$13.6 $11.9 
Warrant Liability
The public and private warrants are measured at fair value on a recurring basis at the end of each reporting period within accrued expenses and other liabilities in the consolidated balance sheet.
The Public Warrant Liability is classified as a Level 1 fair value measurement due to the use of an observable market quote in an active market. The Private Placement Warrants are classified as Level 2 fair value measurement Level 2 fair value measurement.
The following table presents the changes in the fair value of the warrant liability (Public Warrants and Private Placement Warrants) (in millions):
20232022
Balance as of January 1,$0.3 $4.3 
Changes in fair value(0.1)(4.0)
December 31,$0.2 $0.3