v3.26.1
Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The financial assets in our investment portfolio are primarily measured at fair value as disclosed on the Consolidated Balance Sheets. The following table presents the carrying amounts and fair values of our financial liabilities as of June 30, 2026, and December 31, 2025:

June 30, 2026December 31, 2025
($ in thousands)Carrying AmountFair ValueCarrying AmountFair Value
Financial Liabilities
Long-term debt:
7.25% Senior Notes
$49,939 56,471 49,936 56,973 
6.70% Senior Notes
99,631 107,389 99,617 110,244 
5.90% Senior Notes
399,921 414,623 399,917 419,869 
5.375% Senior Notes
294,795 276,511 294,737 277,541 
3.03% borrowings from FHLBI
60,000 59,685 60,000 59,625 
Subtotal long-term debt904,286 914,679 904,207 924,252 
Unamortized debt issuance costs(5,559)(5,904)
Finance lease obligations2,232 3,570 
Total long-term debt$900,959 901,873 


For discussion regarding fair value techniques of our financial instruments, refer to Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2025 Annual Report.
The following tables provide quantitative disclosures of our financial assets that were measured and recorded at fair value at June 30, 2026, and December 31, 2025:

June 30, 2026 Fair Value Measurements Using
($ in thousands)Assets
 Measured at
 Fair Value		Quoted Prices in
Active Markets for
Identical Assets/
Liabilities (Level 1)		Significant Other
 Observable
Inputs
 (Level 2)		Significant Unobservable
 Inputs
 (Level 3)
Description    
Measured on a recurring basis:    
AFS fixed income securities:
U.S. government and government agencies$159,693 32,801 126,892 — 
Foreign government16,170 — 16,170 — 
Obligations of states and political subdivisions542,687 — 535,278 7,409 
Corporate securities3,641,976 — 3,265,812 376,164 
CLO and other ABS2,615,374 — 2,263,614 351,760 
RMBS2,284,699 — 2,244,820 39,879 
CMBS649,154 — 648,820 334 
Total AFS fixed income securities9,909,753 32,801 9,101,406 775,546 
Equity securities:
Common stock1
411,283 114,156 858 — 
Preferred stock1,823 1,823 — — 
Total equity securities413,106 115,979 858 — 
Short-term investments378,879 358,715 20,164 — 
Total assets measured at fair value$10,701,738 507,495 9,122,428 775,546 

December 31, 2025 Fair Value Measurements Using
($ in thousands)Assets
 Measured at
 Fair Value		Quoted Prices in
 Active Markets for
Identical Assets/Liabilities
(Level 1)		Significant
Other Observable Inputs
(Level 2)		Significant Unobservable
Inputs
 (Level 3)
Description    
Measured on a recurring basis:    
AFS fixed income securities:
U.S. government and government agencies$163,207 39,472 123,735 — 
Foreign government10,002 — 10,002 — 
Obligations of states and political subdivisions549,957 — 542,548 7,409 
Corporate securities3,404,164 — 3,035,053 369,111 
CLO and other ABS2,550,286 — 1,985,197 565,089 
RMBS2,075,933 — 2,075,933 — 
CMBS703,627 — 703,292 335 
Total AFS fixed income securities9,457,176 39,472 8,475,760 941,944 
Equity securities:
Common stock1
382,577 107,125 653 — 
Preferred stock1,839 1,839 — — 
Total equity securities384,416 108,964 653 — 
Short-term investments648,542 637,751 10,791 — 
Total assets measured at fair value$10,490,134 786,187 8,487,204 941,944 
1Investments amounting to $296.3 million at June 30, 2026, and $274.8 million at December 31, 2025, were measured at fair value using the net asset value per share (or its practical expedient) and have not been classified in the fair value hierarchy. These investments are subject to restrictions on redemption, and the timing of liquidations of the underlying assets is unknown at each reporting period. The fair value amounts in this table are intended to permit reconciliation of the fair value hierarchy to total assets measured at fair value.
The following tables provide a summary of Level 3 changes in Six Months 2026 and Six Months 2025:

June 30, 2026
($ in thousands)Obligations of States and Political SubdivisionsCorporate SecuritiesCLO and Other ABSRMBSCMBSTotal
Fair value, December 31, 2025
$7,409 369,111 565,089 — 335 941,944 
Total net gains (losses) for the period included in:
Other comprehensive income (loss) ("OCI")(4)(3,481)(4,615)(520)4 (8,616)
   Net realized and unrealized gains (losses)2 (302)(138)— — (438)
Net investment income earned— 72 39 (29)(1)81 
Purchases— 94,568 121,369 40,464 — 256,401 
Sales— — — — — — 
Issuances— — — — — — 
Settlements(64)(44,754)(55,099)(36)(4)(99,957)
Transfers into Level 32,771 123,563 70,687 — — 197,021 
Transfers out of Level 3(2,705)(162,613)(345,572)— — (510,890)
Fair value, June 30, 2026
$7,409 376,164 351,760 39,879 334 775,546 
Change in unrealized gains (losses) for the period included in earnings for assets held at period end2 (315)(51)— — (364)
Change in unrealized gains (losses) for the period included in OCI for assets held at period end(4)(3,745)(4,134)(520)5 (8,398)

June 30, 2025
($ in thousands)Obligations of States and Political SubdivisionsCorporate SecuritiesCLO and Other ABSCMBSCommon StockTotal
Fair value, December 31, 2024
$7,426 242,679 367,994 340 808 619,247 
Total net gains (losses) for the period included in:
OCI59 3,874 228 (2)— 4,159 
   Net realized and unrealized gains (losses)117 141 21 — 655 934 
Net investment income earned— 23 28 5 — 56 
Purchases— 12,684 62,211 — — 74,895 
Sales— — — — — — 
Issuances— — — — — — 
Settlements(72)(9,156)(31,732)(4)(1,463)(42,427)
Transfers into Level 3— 17,576 85,788 — — 103,364 
Transfers out of Level 3— — (3,501)— — (3,501)
Fair value, June 30, 2025
$7,530 267,821 481,037 339 — 756,727 
Change in unrealized gains (losses) for the period included in earnings for assets held at period end117 140 21 — — 278 
Change in unrealized gains (losses) for the period included in OCI for assets held at period end59 3,877 (452)(2)— 3,482 

During Six Months 2026, we transferred securities with a fair value of $510.9 million from Level 3 to Level 2 in the fair value hierarchy. These investments were primarily corporate securities, CLOs and other ABS that were transferred on June 30, 2026 as we transitioned to a matrix-pricing methodology that provides sufficient observable inputs to support Level 2 classification and eliminates the prior need to rely on significant unobservable inputs in determining fair value.
The following tables present quantitative information about the significant unobservable inputs used in the fair value measurements of Level 3 assets at June 30, 2026, and December 31, 2025:

June 30, 2026
($ in thousands)Assets Measured at Fair ValueValuation TechniquesUnobservable InputsRange Weighted Average
Internal valuations:
CLO and other ABS68,112 
Discounted Cash Flow
Illiquidity Spread
2.0% - 19.6%
8.3%
Total internal valuations68,112 
Other1
707,434 
Total Level 3 securities$775,546 

December 31, 2025
($ in thousands)Assets Measured at Fair ValueValuation TechniquesUnobservable InputsRangeWeighted Average
Internal valuations:
Corporate securities$175,433 Discounted Cash FlowIlliquidity Spread
(4.4)% - 5.3%
1.9%
CLO and other ABS295,307 Discounted Cash FlowIlliquidity Spread
(1.8)% - 19.6%
2.3%
Total internal valuations470,740 
Other1
471,204 
Total Level 3 securities$941,944 
1Other is comprised of broker quotes or other third-party pricing for which there is a lack of transparency into the inputs used to develop the valuations. The quantitative details of these unobservable inputs are neither provided to us, nor reasonably available to us, and therefore are not included in the tables above.

For the securities in the tables above valued using a discounted cash flow analysis, we apply an illiquidity spread in determining fair value. An increase in this assumption would result in a lower fair value measurement.

The following tables provide quantitative information about our financial assets and liabilities that were not measured at fair value, but were disclosed as such at June 30, 2026, and December 31, 2025:

June 30, 2026 Fair Value Measurements Using
($ in thousands)Assets/
Liabilities
Disclosed at
Fair Value		Quoted Prices in
 Active Markets for
 Identical Assets/
Liabilities
(Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Financial Assets    
HTM:    
Corporate securities$19,540 — 19,540 — 
Total HTM fixed income securities19,540 — 19,540 — 
CMLs$267,408 — — 267,408 
Financial Liabilities    
Long-term debt:
7.25% Senior Notes
$56,471 — 56,471 — 
6.70% Senior Notes
107,389 — 107,389 — 
5.90% Senior Notes
414,623 — 414,623 — 
5.375% Senior Notes
276,511 — 276,511 — 
3.03% borrowings from FHLBI
59,685 — 59,685 — 
Total long-term debt$914,679 — 914,679 — 
December 31, 2025 Fair Value Measurements Using
($ in thousands)Assets/
Liabilities
Disclosed at
Fair Value		Quoted Prices in
 Active Markets for
 Identical Assets/
Liabilities
(Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Financial Assets    
HTM:    
Corporate securities$23,939 — 23,939 — 
Total HTM fixed income securities23,939 — 23,939 — 
CMLs$274,895 — — 274,895 
Financial Liabilities    
Long-term debt:
7.25% Senior Notes
$56,973 — 56,973 — 
6.70% Senior Notes
110,244 — 110,244 — 
5.90% Senior Notes
419,869 — 419,869 — 
5.375% Senior Notes
277,541 — 277,541 — 
3.03% borrowings from FHLBI
59,625 — 59,625 — 
Total long-term debt$924,252 — 924,252 —