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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 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 December 31, 2023
	Level 1		Level 2		Level 3		Total
Available-For-Sale Debt Securities:
U.S. government obligations and agencies	$	—	$	23,258	$	—	$	23,258
Corporate bonds	—		715,714		—		715,714
Mortgage-backed and asset-backed securities	—		303,146		—		303,146
Municipal bonds	—		14,039		—		14,039
Redeemable preferred stock	—		8,173		—		8,173
Equity Securities:
Common stock	15,438		—		—		15,438
Mutual funds	65,057		—		—		65,057
Investment in Private Equity Limited Partnership	—		—		10,434		10,434
Total assets accounted for at fair value	$	80,495	$	1,064,330	$	10,434	$	1,155,259


	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
Investment in Private Equity Limited Partnership	—		—		—		—

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

Summary of Fair Value Measurement Inputs and Valuation Techniques

The following table summarizes quantitative information related to the significant unobservable inputs for Level 3 investments, which were carried at fair value as of the dates presented (in thousands):

As of December 31, 2023

Range

Fair Value

Valuation Methodology

Unobservable Input

Weighted Average Mean

Minimum

Maximum

Assets:

Investment in Private Equity Limited Partnership

10,434

Market Approach

Trailing Twelve Month EBITDA Multiple

5.3x

As of December 31, 2022 (1)

Range

Fair Value

Valuation Methodology

Unobservable Input

Weighted Average Mean

Minimum

Maximum

Assets:

Investment in Private Equity Limited Partnership

—

Market Approach

Trailing Twelve Month EBITDA Multiple

n/a

(1) The Company made the initial investment in the private equity limited partnership in 2023, resulting in no balances or data being applicable as of December 31, 2022.

These estimates may be subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision.

Summary 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 December 31,
	2023				2022
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Liabilities (debt):
Surplus note (1)	$	4,044	$	3,783	$	5,515	$	5,126
5.625% Senior unsecured notes (2)	100,000		98,953		100,000		100,350
Total debt	$	104,044	$	102,736	$	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 purposes of establishing the fair value of the note (Level 2).

(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.