v3.25.2
FAIR VALUE OF FINANCIAL INSTRUMENTS
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE OF FINANCIAL INSTRUMENTS FAIR VALUE OF FINANCIAL INSTRUMENTS
The following tables provide information about our financial assets measured and reported at fair value as of June 30, 2025 and December 31, 2024:

June 30, 2025
Level 1Level 2Level 3Total
Fair Value
(dollars in millions)
Assets
Fixed maturities:
U.S. Treasury securities$48.0 $— $— $48.0 
Municipal securities— 22.3 — 22.3 
Corporate debt securities— 122.6 — 122.6 
Asset-backed securities— 126.3 — 126.3 
Total fixed maturities48.0 271.2 — 319.2 
Short-term investments3.5 — — 3.5 
Cash equivalents349.5 — — 349.5 
Total assets at fair value $401.0 $271.2 $— $672.2 
December 31, 2024
Level 1Level 2Level 3Total
Fair Value
(dollars in millions)
Assets
Fixed maturities:
U.S. Treasury securities and agencies$46.2 $— $— $46.2 
Municipal securities— 23.5 — 23.5 
Corporate debt securities— 105.7 — 105.7 
Asset-backed securities— 116.6 — 116.6 
Total fixed maturities46.2 245.8 — 292.0 
Short-term investments11.8 3.0 — 14.8 
Cash equivalents342.4 — — 342.4 
Total assets at fair value $400.4 $248.8 $— $649.2 
We estimate the fair value of all our different classes of Level 2 fixed maturities and short-term investments by using quoted prices from a combination of an independent pricing vendor or broker/dealer, pricing models, quoted prices of securities with similar characteristics or discounted cash flows. All significant inputs were observable in the active markets.
Fair Value of Long-Term Debt
The carrying amount of long-term debt is recorded at the unpaid balance, net of discount and debt issuance costs. The fair value of outstanding long-term debt is classified within Level 2 of the fair value hierarchy. The fair value is based on a model referencing observable interest rates and spreads to project and discount cash flows to present value. As of June 30, 2025 and December 31, 2024, the carrying amounts and fair values of these financial instruments were as follows:

Carrying Amount
as of
June 30, 2025
Estimated Fair Value as of June 30, 2025
Carrying Amount
as of
December 31, 2024
Estimated Fair Value as of December 31, 2024
(dollars in millions)
Long-term debt$200.1 $204.6 $200.1 $204.9 
The carrying amounts of other short-term financial instruments approximates their fair value due to their short-term nature.