v3.26.1
Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Three levels of inputs are used to measure fair value of financial instruments: (1) Level 1: quoted price (unadjusted) in active markets for identical assets, (2) Level 2: inputs to the valuation methodology include
quoted prices for similar assets and liabilities in active markets and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the instrument and (3) Level 3: inputs to the valuation methodology are unobservable for the asset or liability.
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date.
To measure fair value, the Company obtains prices for its investment securities from independent pricing services and other observable market inputs through third-party service providers. When quoted market prices for identical securities in active markets are not available, the Company uses observable inputs such as quoted prices of similar securities and evaluated pricing. The values for all fixed-maturity securities (consisting of U.S. Treasury securities and corporate securities) and equity securities generally incorporate significant Level 2 inputs using the market approach and income approach valuation techniques. The Company did not have any instruments classified within Level 3 measured at fair value on a recurring basis as of June 30, 2026 and December 31, 2025. There have been no changes in the Company’s use of valuation techniques since commencement of operations.
The Company reviews fair value prices obtained through third-party service providers for reasonableness and monitors changes in unrealized gains and losses. The Company has not historically adjusted security prices. The Company obtains an understanding of the methods, models and inputs used by the independent pricing services, and controls are in place to validate that prices provided represent fair values. The Company’s control process includes, but is not limited to, initial and ongoing evaluation of the methodologies used, a review of specific securities and an assessment for proper classification within the fair value hierarchy and obtaining and reviewing internal control reports for relevant third-party service providers involved in the pricing process.
Financial instruments measured at fair value on a recurring basis as of June 30, 2026 and December 31, 2025, are summarized below by level within the fair value hierarchy.
Fair Value Measurements Using
Level 1Level 2Level 3Total
June 30, 2026(in thousands)
Assets
Fixed-maturity securities, available-for-sale:
U.S. Treasury securities and obligations guaranteed by the U.S. Government$— $9,246 $— $9,246 
Corporate— 602,068 — 602,068 
Total fixed-maturity securities, available-for-sale— 611,314 — 611,314 
Equity securities (1)
— 1,613 — 1,613 
Total assets$— $612,927 $— $612,927 
(1) Included in other invested assets in the condensed consolidated balance sheets.
Fair Value Measurements Using
Level 1Level 2Level 3Total
December 31, 2025(in thousands)
Assets
Fixed-maturity securities, available-for-sale:
U.S. Treasury securities and obligations guaranteed by the U.S. Government$— $2,117 $— $2,117 
Corporate— 556,311 — 556,311 
Total fixed-maturity securities, available-for-sale— 558,428 — 558,428 
Total assets$— $558,428 $— $558,428 
There were no transfers between Level 1 and Level 2 for the three and six months ended June 30, 2026 and 2025. The Company recognizes transfers between levels at the beginning of the reporting period.
The fair values of cash and cash equivalents and short-term investments approximate their carrying values due to their short-term maturities. Investments measured using net asset value (“NAV”) as a practical expedient are not classified within the fair value hierarchy and are described in Note 4, Investments – Utility & Infrastructure Investments.
There were no transfers into or out of Level 3 during the three and six months ended June 30, 2026 and 2025.
The Company did not have any material assets or liabilities measured at fair value on a nonrecurring basis as of June 30, 2026 and December 31, 2025.