Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2025

Fair Value Disclosures [Abstract]

Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis

The estimated fair value and hierarchy classifications for assets and liabilities that are measured at fair value on a recurring basis were as follows:


		June 30, 2025
		Level 1				Level 2				Level 3				Total
		(In thousands)
Fair value assets:
Available-for-sale fixed-maturity securities:
U.S. government and agencies		$	-			$	9,669			$	-			$	9,669
Foreign government			-				182,436				-				182,436
States and political subdivisions			-				112,800				-				112,800
Corporates			3,720				1,915,287				-				1,919,007
Mortgage- and asset-backed securities:
Residential mortgage-backed securities			-				572,666				-				572,666
Commercial mortgage-backed securities			-				97,549				-				97,549
Other asset-backed securities			-				202,581				-				202,581
Total available-for-sale fixed-maturity securities			3,720				3,092,988				-				3,096,708
Equity securities			24,867				-				-				24,867
Trading securities			-				2,969				-				2,969
Cash and cash equivalents			621,198				-				-				621,198
Separate accounts			-				2,318,492				-				2,318,492
Total fair value assets		$	649,785			$	5,414,449			$	-			$	6,064,234
Fair value liabilities:
Separate accounts		$	-			$	2,318,492			$	-			$	2,318,492
Total fair value liabilities		$	-			$	2,318,492			$	-			$	2,318,492


		December 31, 2024
		Level 1				Level 2				Level 3				Total
		(In thousands)
Fair value assets:
Available-for-sale fixed-maturity securities:
U.S. government and agencies		$	-			$	9,503			$	-			$	9,503
Foreign government			-				166,424				-				166,424
States and political subdivisions			-				113,569				-				113,569
Corporates			3,787				1,821,321				-				1,825,108
Mortgage-and asset-backed securities:
Residential mortgage-backed securities			-				486,557				-				486,557
Commercial mortgage-backed securities			-				99,445				-				99,445
Other asset-backed securities			-				245,520				-				245,520
Total available-for-sale fixed-maturity securities			3,787				2,942,339				-				2,946,126
Equity securities			24,598				1,003				1,543				27,144
Trading securities			-				3,011				-				3,011
Cash and cash equivalents			687,821				-				-				687,821
Separate accounts			-				2,209,287				-				2,209,287
Total fair value assets		$	716,206			$	5,155,640			$	1,543			$	5,873,389
Fair value liabilities:
Separate accounts		$	-			$	2,209,287			$	-			$	2,209,287
Total fair value liabilities		$	-			$	2,209,287			$	-			$	2,209,287

Roll forward of Level 3 Assets Measured on Recurring Basis

The roll-forward of the Level 3 assets measured at fair value on a recurring basis was as follows:


		Three months ended June 30,								Six months ended June 30, (1)
		2025				2024				2025				2024
		(In thousands)
Level 3 assets, beginning of period		$	1,601			$	1,631			$	1,543			$	2,144
Net unrealized gains (losses) included in other comprehensive income (loss)			-				35				-				39
Investment gains (losses) and accretion (amortization) recognized in earnings			(772	)			(28	)			(714	)			(41	)
Purchases			-				8,815				-				8,815
Settlements			(829	)			-				(829	)			-
Transfers out of Level 3			-				-				-				(504	)
Level 3 assets, end of period		$	-			$	10,453			$	-			$	10,453

(1)

Transfers of investments that enter and exit Level 3 in different quarters within the same fiscal year are not eliminated until the full year amounts are presented.

Carrying Values and Estimated Fair Values of Financial Instruments

The carrying values and estimated fair values of our financial instruments were as follows:


		June 30, 2025								December 31, 2024
		Carrying value				Estimated fair value				Carrying value				Estimated fair value
		(In thousands)
Assets:
Fixed-maturity securities (available-for-sale)		$	3,096,708			$	3,096,708			$	2,946,126			$	2,946,126
Fixed-maturity security (held-to-maturity) (1)			1,258,800				1,225,532				1,303,880				1,227,428
Equity securities			24,867				24,867				27,144				27,144
Trading securities			2,969				2,969				3,011				3,011
Policy loans (1)			43,727				43,727				40,884				40,884
Deposit asset underlying 10% coinsurance agreement (1)			146,266				146,266				158,913				158,913
Separate accounts			2,318,492				2,318,492				2,209,287				2,209,287
Liabilities:
Note payable (2)(3)		$	594,913			$	530,488			$	594,512			$	513,862
Surplus note (1)(2)			1,258,508				1,222,148				1,303,556				1,225,708
Separate accounts			2,318,492				2,318,492				2,209,287				2,209,287

(1)

Classified as a Level 3 fair value measurement.

(2)

Carrying value amounts shown are net of unamortized issuance costs.

(3)

Classified as a Level 2 fair value measurement.

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References + Details