Fair value is determined based on the exchange price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date.

The Company is required to use an established hierarchy for fair value measurements based upon the inputs to the valuation and degree to which they are observable or not observable in the market. The three levels in the hierarchy are as follows:

The highest priority is assigned to Level 1 inputs and the lowest priority to Level 3 inputs. At June 30, 2026 and December 31, 2025, there were no transfers in or out of Level 1, 2, and 3.

The following table presents information about the Company’s assets measured at fair value on a recurring basis. The Company assesses the levels for the investments at each measurement date, and transfers between levels are recognized on the actual date of the event or change in circumstances that caused the transfer in accordance with the Company’s accounting policy regarding the recognitions of transfers between levels of the fair value hierarchy.

The tables below present the balances of the Company’s invested assets measured at fair value on a recurring basis:


June 30, 2026	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets:	(in thousands)
Cash and cash equivalents	$	587,597	$	587,597	$	—	$	—
Restricted cash		13,782		13,782		—		—
Total assets:	$	601,379	$	601,379	$	—	$	—
Debt Securities Available-for-sale
U.S. government and agency securities	$	130,310	$	—	$	130,310	$	—
States, municipalities and political subdivisions		345,557		—		345,557		—
Corporate bonds		248,314		—		248,314		—
Mortgage-backed securities		74,432		—		74,432		—
Asset-backed securities		967		—		967		—
Other		2,330		—		2,330		—
Total debt securities	$	801,910	$	—	$	801,910	$	—
Equity Securities
Common stock		816		816		—		—
Total debt securities and equity securities	$	802,726	$	816	$	801,910	$	—


December 31, 2025	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets:	(in thousands)
Cash and cash equivalents	$	559,274	$	559,274	$	—	$	—
Restricted cash		13,307		13,307		—		—
Total assets:	$	572,581	$	572,581	$	—	$	—
Debt Securities Available-for-sale
U.S. government and agency securities	$	90,184	$	—	$	90,184	$	—
States, municipalities and political subdivisions		335,482		—		335,482		—
Corporate bonds		225,722		—		225,722		—
Mortgage-backed securities		57,600		—		57,600		—
Asset-backed securities		1,169		—		1,169		—
Other		3,080		—		3,080		—
Total debt securities	$	713,237	$	—	$	713,237	$	—
Equity Securities
Common stock		1,064		1,064		—		—
Total debt securities and equity securities	$	714,301	$	1,064	$	713,237	$	—

The carrying value of premium receivables, accounts payable, accrued expense, revolving loans and borrowings under the Company’s senior secured credit facility approximate their fair value. The rate at which revolving loans and borrowings under the Company’s senior secured credit facility bear interest resets periodically at market interest rates.

Assets and liabilities that are measured at fair value on a non-recurring basis include intangible assets which are recognized at fair value during the period in which an acquisition is completed, from updated estimates and assumptions during the measurement period, or when they are considered to be impaired. For the three and six months ended June 30, 2026, there were no assets or liabilities that were measured at fair value on a non-recurring basis.

Certain of the Company's investments, in accordance with GAAP for the type of investment, are measured using methodologies other than fair value.