v3.25.1
Fair Value Measurements
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements
5.
Fair Value Measurements
The tables below presents information about the Company’s financial assets measured at fair value on a recurring basis:
 
    
March 31, 2025
  
    
Total
     
Level 1
     
Level 2
     
Level 3
  
U.S. Treasury and U.S. government agencies
    $ 56,480      $ 56,480      $ —       $ —   
Corporate debt securities
      129,568        20,413        109,155        —   
Asset-backed securities
      20,184        —         20,184        —   
Short-term investments
            
  
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 206,232      $ 76,893      $ 129,339      $ —   
  
 
 
     
 
 
     
 
 
     
 
 
  
 
    
December 31, 2024
  
    
Total
     
Level 1
     
Level 2
     
Level 3
  
U.S. Treasury and U.S. government agencies
    $ 75,234      $ 75,234      $ —       $ —   
Corporate debt securities
      108,790        28,222        80,568        —   
Asset-backed securities
      30,021        —         30,021        —   
  
 
 
     
 
 
     
 
 
     
 
 
  
Total
   
$
214,045
 
   
$
103,456
 
   
$
110,589
 
   
$
— 
 
  
 
 
     
 
 
     
 
 
     
 
 
  
 
 
The Company has no assets carried at fair value in the Level 3 category.
The Company classifies U.S. Treasury bonds and government agencies, short-term investments, and some corporate debt securities within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. Corporate debt securities and asset-backed securities categorized as Level 2 were valued using a market approach. Valuations were based upon quoted prices for similar assets in active markets, quoted prices for identical or similar assets in inactive markets, or valuations based on models where the significant inputs are observable (e.g., interest rates, yield curves, prepayment speeds, default rates, loss severities) or can be corroborated by observable market data.
During the three months ended March 31, 2025, the Company had no event or circumstance change that would cause an instrument to be transferred between levels.
The following table summarizes the carrying value and estimated fair value of the Company’s financial instruments not carried at fair value as of the date presented:
 
    
March 31, 2025
     
December 31, 2024
  
    
Carrying
Value
     
Estimated

Fair Value
     
Carrying
Value
     
Estimated
Fair Value
  
Long-term debt:
            
Surplus note
    $ 926      $ 784      $ 1,029      $ 885  
The Company’s long-term debt represents a surplus note and fair value was determined by management from the expected cash flows discounted using the interest rate quoted by the holder. The Florida State Board of Administration (“FSBA”) is the holder of the surplus note, and the quoted interest rate is equivalent to the
10-year
Constant Maturity Treasury Rate, adjusted quarterly. The Company’s use of funds from the surplus note is limited by the terms of the agreement, therefore, the Company has determined the interest rate quoted by the FSBA to be appropriate for purposes of establishing the fair value of the surplus note (Level 3).