Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2026

Schedule of Carrying Values and Estimated Fair Values of Financial Liabilities

The following table presents the carrying amounts and fair values of our financial liabilities as of September 30, 2026, and December 31, 2025:


	September 30, 2026			December 31, 2025
($ in thousands)	Carrying Amount		Fair Value	Carrying Amount	Fair Value
Financial Liabilities






Long-term debt:
7.25% Senior Notes	$	49,940	52,934	49,936	56,973
6.70% Senior Notes	99,638		101,158	99,617	110,244
5.90% Senior Notes	399,923		389,612	399,917	419,869

5.375% Senior Notes	294,824		251,315	294,737	277,541
3.03% borrowings from FHLBI	60,000		59,816	60,000	59,625
Subtotal long-term debt	904,325		854,835	904,207	924,252
Unamortized debt issuance costs	(5,389)			(5,904)
Finance lease obligations	2,583			3,570
Total long-term debt	$	901,519		901,873

Schedule of Fair Value of Financial Assets

The following tables provide quantitative disclosures of our financial assets that were measured and recorded at fair value at September 30, 2026, and December 31, 2025:


September 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	$	182,116	31,760	150,356	—
Foreign government	15,363		—	15,363	—
Obligations of states and political subdivisions	491,915		—	484,610	7,305
Corporate securities	3,753,825		—	3,375,427	378,398
CLO and other ABS	2,505,402		—	2,108,273	397,129
RMBS	2,253,193		—	2,253,193	—
CMBS	608,244		—	607,914	330
Total AFS fixed income securities	9,810,058		31,760	8,995,136	783,162
Equity securities:
Common stock1	357,530		103,019	772	—
Preferred stock	1,604		1,604	—	—
Total equity securities	359,134		104,623	772	—
Short-term investments	391,710		381,645	10,065	—
Total assets measured at fair value	$	10,560,902	518,028	9,005,973	783,162


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 government	10,002		—	10,002	—
Obligations of states and political subdivisions	549,957		—	542,548	7,409
Corporate securities	3,404,164		—	3,035,053	369,111
CLO and other ABS	2,550,286		—	1,985,197	565,089
RMBS	2,075,933		—	2,075,933	—
CMBS	703,627		—	703,292	335
Total AFS fixed income securities	9,457,176		39,472	8,475,760	941,944
Equity securities:
Common stock1	382,577		107,125	653	—
Preferred stock	1,839		1,839	—	—
Total equity securities	384,416		108,964	653	—
Short-term investments	648,542		637,751	10,791	—
Total assets measured at fair value	$	10,490,134	786,187	8,487,204	941,944

1Investments amounting to $253.7 million at September 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.

Schedule of Summary of the Changes in Fair Value of Securities Using Level 3 Inputs

The following tables provide a summary of Level 3 changes in Nine Months 2026 and Nine Months 2025:


September 30, 2026
($ in thousands)	Obligations of States and Political Subdivisions		Corporate Securities	CLO and Other ABS	RMBS	CMBS	Total
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”)	(113)		(12,254)	(9,974)	(3,187)	5	(25,523)
Net realized and unrealized investment gains (losses)	7		(785)	32	—	—	(746)
Net investment income earned	—		80	85	(147)	(2)	16
Purchases	—		126,614	155,324	40,464	—	322,402
Sales	—		—	—	—	—	—
Issuances	—		—	—	—	—	—
Settlements	(64)		(46,811)	(56,183)	(1,566)	(8)	(104,632)
Transfers into Level 3	2,771		127,675	100,971	—	—	231,417
Transfers out of Level 3	(2,705)		(185,232)	(358,215)	(35,564)	—	(581,716)
Fair value, September 30, 2026	$	7,305	378,398	397,129	—	330	783,162

Change in unrealized gains (losses) for the period included in earnings for assets held at period end	7		(799)	118	—	—	(674)
Change in unrealized gains (losses) for the period included in OCI for assets held at period end	(113)		(12,518)	(9,493)	(3,187)	5	(25,306)


September 30, 2025
($ in thousands)	Obligations of States and Political Subdivisions		Corporate Securities	CLO and Other ABS	RMBS	CMBS	Common Stock	Total
Fair value, December 31, 2024	$	7,426	242,679	367,994	—	340	808	619,247
Total net gains (losses) for the period included in:
OCI	132		7,164	1,894	8	—	—	9,198
Net realized and unrealized investment gains (losses)	144		286	39	—	—	655	1,124
Net investment income earned	—		35	48	(1)	4	—	86
Purchases	—		61,531	115,903	5,555	—	—	182,989
Sales	—		—	—	—	—	—	—
Issuances	—		—	—	—	—	—	—
Settlements	(72)		(13,704)	(35,827)	(79)	(7)	(1,463)	(51,152)
Transfers into Level 3	—		19,571	85,788	—	—	—	105,359
Transfers out of Level 3	—		(295)	(39,803)	—	—	—	(40,098)
Fair value, September 30, 2025	$	7,630	317,267	496,036	5,483	337	—	826,753

Change in unrealized gains (losses) for the period included in earnings for assets held at period end	144		285	39	—	—	—	468
Change in unrealized gains (losses) for the period included in OCI for assets held at period end	132		7,169	1,214	8	—	—	8,523

Schedule of Fair Value Measurement Inputs and Valuation Techniques

The following tables present quantitative information about the significant unobservable inputs used in the fair value measurements of Level 3 assets at September 30, 2026, and December 31, 2025:

September 30, 2026

($ in thousands)

Assets Measured at Fair Value

Valuation Techniques

Unobservable Inputs

Range

Weighted Average

Internal valuations:

CLO and other ABS

75,907

Discounted Cash Flow

Illiquidity Spread

2.0% - 19.6%

8.1%

Total internal valuations

75,907

Other1

707,255

Total Level 3 securities

783,162

December 31, 2025

($ in thousands)

Assets Measured at Fair Value

Valuation Techniques

Unobservable Inputs

Range

Weighted Average

Internal valuations:

Corporate securities

175,433

Discounted Cash Flow

Illiquidity Spread

(4.4)% - 5.3%

1.9%

CLO and other ABS

295,307

Discounted Cash Flow

Illiquidity Spread

(1.8)% - 19.6%

2.3%

Total internal valuations

470,740

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.

Schedule of Quantitative Information of Financial Assets and Liabilities, Disclosed at Fair Value

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 September 30, 2026, and December 31, 2025:


September 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	$	20,984	—	20,984	—


Total HTM fixed income securities	20,984		—	20,984	—

CMLs	$	279,076	—	—	279,076

Financial Liabilities











Long-term debt:
7.25% Senior Notes	$	52,934	—	52,934	—
6.70% Senior Notes	101,158		—	101,158	—
5.90% Senior Notes	389,612		—	389,612	—
5.375% Senior Notes	251,315		—	251,315	—
3.03% borrowings from FHLBI	59,816		—	59,816	—
Total long-term debt	$	854,835	—	854,835	—


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 securities	23,939		—	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	—

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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