Fair Value Measurements |
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| 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:
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:
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).
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