v3.25.1
Disclosures About Fair Value of Financial Instruments
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Disclosures about Fair Value of Financial Instruments Disclosures About Fair Value of Financial Instruments
Cash. The carrying amount approximates fair value.
Investment securities, mortgage loan and private loan investments, and short-term investments. See Note 3, “Investments,” for additional information.
Premiums receivable and reinsurance recoverables on paid losses. The carrying value of current receivables and reinsurance recoverables on paid losses approximates fair value due to short-term nature.
Debt. At March 31, 2025 and December 31, 2024, the fair value of our debt instruments is determined using both Level 1 and Level 2 inputs, as previously defined in Note 3, “Investments.”
We receive fair value prices for similar financial instruments being traded in active markets. These prices are determined using observable market information such as publicly traded quoted prices, and trading prices for similar financial instruments actively being traded in the current market. We have reviewed the processes used by third-party providers for pricing these instruments and have determined that they result in fair values consistent with GAAP requirements. In addition, we review these prices for reasonableness, and have not adjusted any prices received from the third-party providers as of March 31, 2025 and December 31, 2024. A description of the valuation techniques we use to measure these liabilities at fair value is as follows:
Senior Unsecured Fixed Rate Notes Level 1:
•Our senior unsecured fixed rate notes are valued using Level 1 inputs. For these securities, we obtain fair value measurements from a third-party pricing service using quoted prices (unadjusted) in active markets at the reporting date.
Junior Subordinated Debentures Level 2:
•Our trust preferred debentures and subordinated debentures are typically valued using Level 2 inputs. For these securities, we obtain fair value measurements using quoted prices for similar securities being traded in active markets at the reporting date, as our specific debt instruments are less frequently traded.
A summary of our financial instruments whose carrying value did not equal fair value is shown below:
March 31, 2025December 31, 2024
(in millions)Carrying
Amount		Fair
Value		Carrying
Amount		Fair
Value
Junior subordinated debentures:
Trust preferred debentures$162.3 $162.8 $162.0 $163.9 
Subordinated debentures81.4 81.3 81.2 81.3 
Total junior subordinated debentures243.7 244.1 243.2 245.2 
Senior unsecured fixed rate notes129.0 119.1 128.8 128.6 
$372.7 $363.2 $372.0 $373.8 
Based on an analysis of the inputs, our financial instruments measured at fair value for disclosure purposes have been categorized as follows:
Fair Value Measurements at Reporting Date
(in millions)March 31, 2025Level 1Level 2Level 3
Junior subordinated debentures:
Trust preferred debentures$162.8 $— $162.8 $— 
Subordinated debentures81.3 — 81.3 — 
Total junior subordinated debentures244.1 — 244.1 — 
Senior unsecured fixed rate notes119.1 119.1 — — 
$363.2 $119.1 $244.1 $— 

Fair Value Measurements at Reporting Date
(in millions)December 31, 2024Level 1Level 2Level 3
Junior subordinated debentures:
Trust preferred debentures$163.9 $— $163.9 $— 
Subordinated debentures81.3 — 81.3 — 
Total junior subordinated debentures245.2 — 245.2 — 
Senior unsecured fixed rate notes128.6 128.6 — — 
$373.8 $128.6 $245.2 $—