v3.26.3
Surplus Note
 9 Months Ended
Sep. 30, 2026
Debt Disclosure [Abstract]  
Surplus Note
8. Surplus Note
The Company issued a surplus note on June 2, 2025 in the amount of $50.0 million with a fixed interest rate of 9.5% for a term of 15 years. The surplus note is callable by the Company in 7 years from the issuance date. Interest on the outstanding principal is payable on September 1 and March 1 every year. Payment of principal and interest requires regulatory approval before such payment may be made. The Company paid $4.8 million in interest for the nine months ended September 30, 2026.
September 30, 2026
December 31, 2025
(in millions)
Surplus note$50.0 $50.0 
Less: unamortized debt issuance costs(2.1)(2.1)
Total surplus note, net
$47.9 $47.9 
The Company’s surplus note is recorded at its carrying value net of unamortized debt issuance costs. The estimated fair value of the surplus note as of September 30, 2026 was $46.9 million, and is classified as Level 3 within the fair value hierarchy. The surplus note’s fair value is estimated using a discounted cash flow technique with a rate constructed of a duration-matched risk-free anchor plus credit and illiquidity spread.