Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2026

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables include a list of assets and liabilities that are measured at fair value by hierarchy level as of the dates indicated.


Assets and liabilities carried at fair value by hierarchy level


	March 31, 2026
(In thousands)	Level I		Level II		Level III		Total


Investments
Fixed maturities available for sale
U.S. government and agency securities	$	301,263	$	1,365	$	—	$	302,628
State and municipal obligations		—		241,390		—		241,390
Corporate bonds and notes		—		3,069,538		—		3,069,538
RMBS		—		1,276,783		—		1,276,783
CMBS		—		283,975		—		283,975
CLO		—		549,811		—		549,811
Other ABS		—		509,695		—		509,695
Mortgage insurance-linked notes (1)		—		47,572		—		47,572
Other		—		1,119		—		1,119
Total fixed maturities available for sale		301,263		5,981,248		—		6,282,511

Fixed maturities trading securities
State and municipal obligations		—		25,981		—		25,981
Corporate bonds and notes		—		15,128		—		15,128
CMBS		—		5,181		—		5,181
Total fixed maturities trading securities		—		46,290		—		46,290

Equity securities		17,596		3,312		4,046		24,954

Other invested assets (2) (3)		51,847		—		7,185		59,032

Short-term investments
U.S. government and agency securities		51,351		—		—		51,351
Money market instruments		533,730		—		—		533,730
Corporate bonds and notes		—		26,662		—		26,662
Other ABS		—		6,555		—		6,555
Other investments (4)		479		5,648		—		6,127
Total short-term investments		585,560		38,865		—		624,425
Total investments at fair value (3)		956,266		6,069,715		11,231		7,037,212

Other
Loaned securities (5)
Corporate bonds and notes		—		66,412		—		66,412
Equity securities		32,200		—		—		32,200
Total assets at fair value (3)	$	988,466	$	6,136,127	$	11,231	$	7,135,824

Liabilities
Derivative liabilities	$	—	$	—	$	203	$	203
Total liabilities at fair value	$	—	$	—	$	203	$	203

(1)

Includes mortgage insurance-linked notes purchased by Radian Group in connection with the Mortgage XOL Program. See Note 8 for more information.

(2)

Consists primarily of Lloyd’s overseas deposits, which are deposits held to provide security for the payment of policyholder claims in certain overseas jurisdictions. See Note 7 for additional information about our Lloyd’s overseas deposits.

(3)

Does not include other invested assets of $3 million that are primarily invested in limited partnership investments valued using the net asset value as a practical expedient.

(4)

Primarily consists of commercial paper.

(5)

Securities loaned to third-party borrowers under securities lending agreements are classified as other assets on our condensed consolidated balance sheets. See Note 7 for more information on our securities lending agreements.


Assets and liabilities carried at fair value by hierarchy level


	December 31, 2025
(In thousands)	Level I		Level II		Level III		Total


Investments
Fixed maturities available for sale
U.S. government and agency securities	$	115,189	$	1,524	$	—	$	116,713
State and municipal obligations		—		167,126		—		167,126
Corporate bonds and notes		—		1,957,005		—		1,957,005
RMBS		—		884,258		—		884,258
CMBS		—		241,444		—		241,444
CLO		—		376,847		—		376,847
Other ABS		—		481,718		—		481,718
Mortgage insurance-linked notes (1)		—		45,689		—		45,689
Other		—		1,116		—		1,116
Total fixed maturities available for sale		115,189		4,156,727		—		4,271,916

Fixed maturities trading securities
State and municipal obligations		—		35,912		—		35,912
Corporate bonds and notes		—		24,791		—		24,791
CMBS		—		4,958		—		4,958
Total fixed maturities trading securities		—		65,661		—		65,661

Equity securities		29,630		2,956		4,046		36,632
Other invested assets (2) (3)		—		—		7,089		7,089

Short-term investments
U.S. government and agency securities		354,905		74,817		—		429,722
Money market instruments		219,384		—		—		219,384
Corporate bonds and notes		—		11,729		—		11,729
Other ABS		—		2,447		—		2,447
Other investments (4)		—		939,711		—		939,711
Total short-term investments		574,289		1,028,704		—		1,602,993
Total investments at fair value (3)		719,108		5,254,048		11,135		5,984,291

Other
Loaned securities (5)
U.S. government and agency securities		64,830		—		—		64,830
Corporate bonds and notes		—		54,155		—		54,155
Equity securities		22,893		—		—		22,893
Total assets at fair value (3)	$	806,831	$	5,308,203	$	11,135	$	6,126,169
Liabilities
Derivative liabilities	$	—	$	—	$	478	$	478
Total liabilities at fair value	$	—	$	—	$	478	$	478

(1)

Includes mortgage insurance-linked notes purchased by Radian Group in connection with the Mortgage XOL Program. See Note 8 for more information.

(2)

Consists primarily of interests in private debt and equity investments.

(3)

Does not include other invested assets of $3 million that are primarily invested in limited partnership investments valued using the net asset value as a practical expedient.

(4)

Consists of commercial paper.

(5)

Schedule of Liabilities Not Carried at Fair Value

The carrying value and estimated fair value of other selected assets and liabilities not carried at fair value on our condensed consolidated balance sheets are as follows as of the dates indicated.


Financial instruments not carried at fair value


	March 31, 2026				December 31, 2025

(In thousands)	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value


Company-owned life insurance	$	101,841	$	101,841	$	102,323	$	102,323
Short-term borrowings
Short-term senior notes		448,864		449,992		—		—
Short-term FHLB advances		45,866		45,880		33,320		33,339
Long-term borrowings
Long-term senior notes		619,710		645,712		1,067,908		1,107,215
Revolving credit facility		150,000		150,000		—		—
Long-term FHLB advances		4,236		4,242		7,887		7,905