v3.25.4
Fair Value Measurements
 12 Months Ended
Dec. 31, 2025
Fair Value Measurements [Abstract]  
Fair Value Measurements
5 - Fair Value Measurements

We account for financial assets using a framework that establishes a hierarchy that ranks the quality and reliability of inputs, or assumptions, used in the determination of fair value, and we classify financial assets and liabilities carried at fair value in one of the following three categories:

Level 1 - quoted prices in active markets for identical assets and liabilities;

Level 2 - directly or indirectly observable inputs other than Level 1 quoted prices; and

Level 3 - unobservable inputs not corroborated by market data.

For investments that have quoted market prices in active markets, we use the quoted market price as fair value and include these investments in Level 1 of the fair value hierarchy. We classify publicly traded equity securities as Level 1. When quoted market prices in active markets are not available, we base fair values on quoted market prices of comparable instruments or price estimates we obtain from independent pricing services. We classify our fixed maturity investments and non-publicly traded equity securities as Level 2. Our fixed maturity investments consist of U.S. Treasury securities and obligations of U.S. government corporations and agencies, obligations of states and political subdivisions, corporate securities and mortgage-backed securities.
At December 31, 2025, we received two estimates per security from the pricing services, and we priced substantially all of our Level 1 and Level 2 investments using those prices. In our review of the estimates the pricing services provided at December 31, 2025, we did not identify any material discrepancies, and we did not make any adjustments to the estimates the pricing services provided.

We present our cash and short-term investments at estimated fair value. The carrying values in our balance sheet for premium receivables, reinsurance receivables related to paid losses and loss expenses and reinsurance balances payable approximate their fair values. The carrying amounts reported in the balance sheet for our borrowings under lines of credit approximate their fair values. We classify these items as Level 3.

We evaluate our assets and liabilities on a regular basis to determine the appropriate level at which to classify them for each reporting period. Based on our review of the methodology and summary of inputs the pricing services use, we have concluded that our Level 1 and Level 2 investments were classified properly at December 31, 2025 and 2024.

The following table presents our fair value measurements for our investments in available-for-sale fixed maturity and equity securities at December 31, 2025:

   
Fair Value Measurements Using
  
   
Fair Value
    
Quoted Prices in
Active Markets
for Identical
Assets (Level 1)
    
Significant Other
Observable
Inputs (Level 2)
    
Significant
Unobservable
Inputs (Level 3)
  
U.S. Treasury securities and obligations of U.S. government corporations and agencies
  
$
24,329,398
    
$
—
    
$
24,329,398
    
$
—
  
Obligations of states and political subdivisions
    
48,550,717
      
—
      
48,550,717
      
—
  
Corporate securities
    
130,924,461
      
—
      
130,924,461
      
—
  
Mortgage-backed securities
    
436,918,199
      
—
      
436,918,199
      
—
  
Equity securities
    
44,370,358
      
42,233,030
      
2,137,328
      
—
  
Total investments in the fair value hierarchy
  
$
685,093,133
    
$
42,233,030
    
$
642,860,103
    
$
—
  

The following table presents our fair value measurements for our investments in available-for-sale fixed maturity and equity securities at December 31, 2024:

   
Fair Value Measurements Using
  
   
Fair Value
    
Quoted Prices in
Active Markets
for Identical
Assets (Level 1)
    
Significant Other
Observable
Inputs (Level 2)
    
Significant
Unobservable
Inputs (Level 3)
  
U.S. Treasury securities and obligations of U.S. government corporations and agencies
  
$
83,792,635
    
$
—
    
$
83,792,635
    
$
—
  
Obligations of states and political subdivisions
    
37,404,420
      
—
      
37,404,420
      
—
  
Corporate securities
    
202,931,696
      
—
      
202,931,696
      
—
  
Mortgage-backed securities
    
293,763,111
      
—
      
293,763,111
      
—
  
Equity securities
    
36,807,810
      
34,707,981
      
2,099,829
      
—
  
Total investments in the fair value hierarchy
  
$
654,699,672
    
$
34,707,981
    
$
619,991,691
    
$
—