v3.26.1
Fair Value Measurements
6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The tables below present information about the Company’s financial assets measured at fair value on a recurring
basis:
June 30, 2026
Total
Level 1
Level 2
Level 3
U.S. Treasury and U.S. government agencies
$30,670
$30,670
$
$
Corporate debt securities
181,991
181,991
Asset-backed securities
133,766
133,766
Short-term investments
4,738
4,738
Total
$351,165
$30,670
$320,495
$
December 31, 2025
Total
Level 1
Level 2
Level 3
U.S. Treasury and U.S. government agencies
$30,722
$30,722
$
$
Corporate debt securities
206,799
206,799
Asset-backed securities
92,968
92,968
Short-term investments
18,121
18,121
Total
$348,610
$30,722
$317,888
$
The Company had no assets carried at fair value in the Level 3 category as of June 30, 2026 and December 31, 2025.
The Company classifies U.S. Treasury bonds and government agencies within Level 1 of the fair value hierarchy
because they are valued based on quoted market prices in active markets. Corporate debt securities, short-term
investments, and asset-backed securities categorized as Level 2 were valued using a market approach. Valuations
were based upon quoted prices for similar assets in active markets, quoted prices for identical or similar assets in
inactive markets, or valuations based on models where the significant inputs are observable (e.g., interest rates, yield
curves, prepayment speeds, default rates, loss severities) or can be corroborated by observable market data.
During the three months ended June 30, 2026, the Company had no event or circumstance change that would cause
an instrument to be transferred between levels.
The following table summarizes the carrying value and estimated fair value of the Company’s financial instruments
not carried at fair value as of the date presented:
June 30, 2026
December 31, 2025
Carrying
Value
Estimated
Fair Value
Carrying
Value
Estimated
Fair Value
Long-term debt:
Surplus note
$412
$401
$618
$499
The Company’s long-term debt represents a surplus note. Fair value was determined by management based on the
expected cash flows discounted using the interest rate specified in the surplus note agreement with the Florida State
Board of Administration (“FSBA”). The interest rate is not obtained from an external market source but is defined
within the agreement as a rate equivalent to the 10-year Constant Maturity Treasury Rate, adjusted quarterly in
accordance with the terms of the agreement. The Company’s use of funds from the surplus note is limited by the
terms of the agreement. The Company has concluded that the contractual interest rate quoted by the FSBA to be
appropriate for purposes of establishing the fair value of the surplus note (Level 3).