Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2023

Schedule of Assets Measured for at Fair Value on Recurring Basis

The following tables set forth by level within the fair value hierarchy the Company’s assets measured at fair value on a recurring basis as of the dates presented (in thousands):


	Fair Value Measurements
	As of June 30, 2023
	Level 1		Level 2		Level 3		Total
Available-For-Sale Debt Securities:
U.S. government obligations and agencies	$	—	$	25,817	$	—	$	25,817
Corporate bonds	—		705,984		—		705,984
Mortgage-backed and asset-backed securities	—		295,862		—		295,862
Municipal bonds	—		14,887		—		14,887
Redeemable preferred stock	—		8,958		—		8,958
Equity Securities:
Common stock	12,273		—		—		12,273
Mutual funds	63,298		—		—		63,298
Total assets accounted for at fair value	$	75,571	$	1,051,508	$	—	$	1,127,079


	Fair Value Measurements
	As of December 31, 2022
	Level 1		Level 2		Level 3		Total
Available-For-Sale Debt Securities:
U.S. government obligations and agencies	$	—	$	11,664	$	—	$	11,664
Corporate bonds	—		695,061		—		695,061
Mortgage-backed and asset-backed securities	—		287,607		—		287,607
Municipal bonds	—		12,371		—		12,371
Redeemable preferred stock	—		7,923		—		7,923
Equity Securities:
Common stock	15,313		—		—		15,313
Mutual funds	70,156		—		—		70,156

Total assets accounted for at fair value	$	85,469	$	1,014,626	$	—	$	1,100,095

Schedule of Carrying Value and Estimated Fair Values of Financial Instruments not Carried at Fair Value

The following table summarizes the carrying value and estimated fair values of the Company’s financial instruments not carried at fair value as of the dates presented (in thousands):


	As of June 30, 2023				As of December 31, 2022
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Liabilities (debt):
Surplus note (1)	$	4,779	$	4,497	$	5,515	$	5,126
5.625% Senior unsecured notes (2)	100,000		97,365		100,000		100,350
Total debt	$	104,779	$	101,862	$	105,515	$	105,476

(1) The fair value of the surplus note was determined by management from the expected cash flows discounted using the interest rate quoted by the holder. The SBA is the holder of the surplus note and the quoted interest rate is below prevailing rates quoted by private lending institutions. However, as the Company’s use of funds from the surplus note is limited by the terms of the agreement, the Company has determined the interest rate quoted by the SBA to be appropriate for the purpose of establishing the fair value of the note (Level 3).

(2) The fair value of the senior unsecured notes was determined based on pricing from quoted prices for similar assets in active markets and was included as Level 2.