v3.26.1
Fair Value Measurements
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is determined based on a fair value hierarchy that prioritizes the use of observable inputs over the use of unobservable inputs and requires the use of observable inputs when available. The Company utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels, as follows:
•Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities.
•Level 2: Significant other observable inputs other than Level 1 inputs, such as quoted prices in active markets for similar assets or liabilities, quoted prices in inactive markets for identical assets or liabilities, or other inputs that are directly or indirectly observable through market-corroborated inputs, such as interest rates, yield curves, prepayment speeds, default rates, or loss severities.
•Level 3: Significant unobservable inputs used to measure fair value to the extent that relevant observable inputs are not available, and that reflect the Company’s best estimate of what hypothetical market participants would use to determine a transaction price for the asset or liability at the measurement date.
The Company’s investments in fixed maturity securities, all of which are classified as available for sale, are carried at fair value. All of the Company’s fixed maturity securities investments were priced by independent pricing services. The prices provided by the independent pricing services are estimated based on observable market data in active markets utilizing pricing models and processes, which may include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, sector groupings, matrix pricing and reference data. Under certain circumstances, if a vendor price is unavailable, a price may be obtained from a broker. The pricing services may prioritize inputs differently on any given day for any security based on market conditions, and not all inputs are available for each security evaluation on any given day. The pricing services used by the Company have indicated that they will only produce an estimate of fair value if objectively verifiable information is available. The determination of whether markets are active or inactive is based upon the volume and level of activity for a particular asset class.
The fair values of short-term investments approximate their carrying values due to their short-term maturity.
The following table presents the Company’s investments measured at fair value by level:
As of March 31, 2026Level 1Level 2Level 3Total
($ in thousands)
Fixed maturity securities
U.S. government and government agency$55,168 $17,644 $— $72,812 
State and municipal— 147,431 — 147,431 
Commercial mortgage-backed securities— 170,809 — 170,809 
Residential mortgage-backed securities— 348,865 — 348,865 
Asset-backed securities— 190,133 — 190,133 
Corporate— 590,300 — 590,300 
Total fixed maturity securities
55,168 1,465,182 — 1,520,350 
Short-term investments— 4,976 — 4,976 
Total investments
$55,168 $1,470,158 $— $1,525,326 
As of December 31, 2025Level 1Level 2Level 3Total
($ in thousands)
Fixed maturity securities
U.S. government and government agency$80,368 $— $— $80,368 
State and municipal— 129,278 — 129,278 
Commercial mortgage-backed securities— 171,322 — 171,322 
Residential mortgage-backed securities— 318,561 — 318,561 
Asset-backed securities— 169,004 — 169,004 
Corporate— 502,473 — 502,473 
Total fixed maturity securities
80,368 1,290,638 — 1,371,006 
Short-term investments— — — — 
Total investments
$80,368 $1,290,638 $— $1,371,006