v3.26.3
Fair Value
 9 Months Ended
Sep. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Fair Value
 
Financial instruments carried at fair value
Our available-for-sale and equity securities are recorded at fair value, which is the price that would be received to sell the asset in an orderly transaction between willing market participants as of the measurement date.
 
Valuation techniques used to derive the fair value of our available-for-sale and equity securities are based upon observable and unobservable inputs.  Observable inputs reflect market data obtained from independent sources.  Unobservable inputs reflect our own assumptions regarding fair market value for these securities.  Financial instruments are categorized based upon the following characteristics or inputs to the valuation techniques:

•Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.

•Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

•Level 3 – Unobservable inputs for the asset or liability.
 
Estimates of fair values for our investment portfolio are obtained primarily from a nationally recognized pricing service.  Our Level 1 securities are valued using an exchange traded price provided by the pricing service. Pricing service valuations for Level 2 securities include multiple verifiable, observable inputs including benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data.  Pricing service valuations for Level 3 securities are based upon proprietary models and are used when observable inputs are not available or in illiquid markets.
 
Although virtually all of our prices are obtained from third party sources, we also perform internal pricing reviews, including evaluating the methodology and inputs used to ensure that we determine the proper classification level of the financial instrument and reviewing securities with price changes that vary significantly from current market conditions or independent price sources.  Price variances are investigated and corroborated by market data and transaction volumes. We have reviewed the pricing methodologies of our pricing service as well as other observable inputs and believe that the prices adequately consider market activity in determining fair value. 

In limited circumstances we adjust the price received from the pricing service when, in our judgment, a better reflection of fair value is available based upon corroborating information and our knowledge and monitoring of market conditions such as a disparity in price of comparable securities and/or non-binding broker quotes.  In other circumstances, certain securities are internally priced because prices are not provided by the pricing service.
 
When a price from the pricing service is not available, values are determined by obtaining broker/dealer quotes and/or market comparables. When available, we obtain multiple quotes for the same security. The ultimate value for these securities is determined based upon our best estimate of fair value using corroborating market information. As of September 30, 2026, nearly all of our available-for-sale and equity securities were priced using a third party pricing service.
The following tables present our fair value measurements on a recurring and nonrecurring basis by asset class and level of input as of: 
September 30, 2026
(in thousands)TotalLevel 1Level 2Level 3
Recurring fair value measurements:
Available-for-sale securities:
Corporate debt securities$761,885 $1,275 $760,256 $354 
Collateralized debt obligations243,276 0 243,276 0 
Commercial mortgage-backed securities156,230 0 132,348 23,882 
Residential mortgage-backed securities208,027 0 205,468 2,559 
Other debt securities41,131 0 41,131 0 
U.S. Treasury840 0 840 0 
Total available-for-sale securities (1)
1,411,389 1,275 1,383,319 26,795 
Equity securities:
Exchange-traded funds79,803 79,803 0 0 
Non-redeemable preferred stocks:
   Financial services sector 62,370 510 61,843 17 
   Utilities sector545 0 545 0 
   Energy sector 3,530 0 3,530 0 
   Consumer sector2,887 0 2,881 6 
   Technology sector26 0 0 26 
   Communications sector1,440 0 1,440 0 
   Total non-redeemable preferred stocks (2)
70,798 510 70,239 49 
Total equity securities150,601 80,313 70,239 49 
Total recurring fair value measurements$1,561,990 $81,588 $1,453,558 $26,844 
Nonrecurring fair value measurements-equity securities (3)
$4,521 $0 $0 $4,521 

(1)This includes $42.3 million of securities lent under a securities lending agreement.
(2)This includes $14.1 million of securities lent under a securities lending agreement.
(3)This excludes $11.7 million of equity securities without readily determinable fair values that were not remeasured at fair value during the reporting period.
December 31, 2025
(in thousands)TotalLevel 1Level 2Level 3
Recurring fair value measurements:
Available-for-sale securities:
Corporate debt securities$844,479 $998 $839,542 $3,939 
Collateralized debt obligations133,267 0 133,267 0 
Commercial mortgage-backed securities140,541 0 117,520 23,021 
Residential mortgage-backed securities187,226 0 186,432 794 
Other debt securities35,152 0 35,152 0 
U.S. Treasury24,163 0 24,163 0 
Total available-for-sale securities (1)
1,364,828 998 1,336,076 27,754 
Equity securities:
Non-redeemable preferred stocks:
   Financial services sector (2)
69,114 2,593 66,350 171 
   Utilities sector3,696 0 3,696 0 
   Energy sector2,713 0 2,713 0 
   Consumer sector (2)
2,403 0 2,393 10 
   Technology sector (2)
0 0 0 0 
   Communications sector953 0 953 0 
  Total non-redeemable preferred stocks (3)
78,879 2,593 76,105 181 
Total equity securities 78,879 2,593 76,105 181 
Total recurring fair value measurements (2)
$1,443,707 $3,591 $1,412,181 $27,935 
Nonrecurring fair value measurements-equity securities (2)
$3,161 $0 $0 $3,161 

(1)     This includes $44.4 million of securities lent under a securities lending agreement.
(2)    Prior-period amounts have been revised to separately present nonrecurring fair value measurements and to exclude $8.7 million of equity securities without readily determinable fair values that were not remeasured at fair value during the reporting period. These revisions are not material and the impact was limited to our financial statement footnote disclosures.
(3)    This includes $20.1 million of securities lent under a securities lending agreement.

Equity securities without readily determinable fair values
We hold investments in privately held companies with carrying amounts of $16.2 million at September 30, 2026 and $11.9 million at December 31, 2025 that do not have readily determinable fair values and are accounted for using the measurement alternative described within Note 2, "Significant Accounting Policies". Included in the tables above are investments that were remeasured at fair value on a nonrecurring basis using prices from recent financing transactions at various dates during the nine months ended September 30, 2026 and the year ended December 31, 2025. The nonrecurring fair value measurements include only those investments remeasured during the respective periods and reflect fair value as of the applicable remeasurement dates rather than as of September 30, 2026 and December 31, 2025, respectively. During the nine months ended September 30, 2026 and the year ended December 31, 2025, upward adjustments resulting from observable price changes totaled $0.9 million and $0.7 million, respectively. Cumulative upward adjustments were $2.0 million at September 30, 2026 and $1.1 million at December 31, 2025. No impairments or downward adjustments have been recognized.
We review the fair value hierarchy classifications of recurring fair value measurements each reporting period. Transfers between hierarchy levels may occur due to changes in available market observable inputs.

Level 3 Assets – 2026 Quarterly Change:

(in thousands) 		Beginning balance at June 30, 2026
Included in earnings(1)
Included
in other
comprehensive
income (loss)		PurchasesSales
Transfers into
Level 3(2)
Transfers out of Level 3(2)
Ending balance at September 30, 2026
Available-for-sale securities:
Corporate debt securities$478 $(31)$12 $2 $(107)$0 $0 $354 
Commercial mortgage-backed securities 12,962 36 (466)2,763 (2)12,248 (3,659)23,882 
Residential mortgage-backed securities1,095 (1)(51)0 (40)2,015 (459)2,559 
Total available-for-sale securities14,535 4 (505)2,765 (149)14,263 (4,118)26,795 
Equity securities (3)
135 8 — 0 (94)0 0 49 
Total Level 3 securities$14,670 $12 $(505)$2,765 $(243)$14,263 $(4,118)$26,844 

Level 3 Assets – 2026 Year-to-Date Change:
(in thousands)Beginning balance at December 31, 2025
Included in earnings(1)
Included
in other
comprehensive
income (loss)		PurchasesSales
Transfers into
Level 3(2)
Transfers out of Level 3(2)
Ending balance at September 30, 2026
Available-for-sale securities:
Corporate debt securities$3,939 $(130)$(8)$818 $(4,321)$1,023 $(967)$354 
Commercial mortgage-backed securities23,021 (863)(472)2,763 (1,278)22,783 (22,072)23,882 
Residential mortgage-backed securities794 (1)(65)0 (78)3,248 (1,339)2,559 
Total available-for-sale securities27,754 (994)(545)3,581 (5,677)27,054 (24,378)26,795 
Equity securities (3)
181 (21)— 0 (138)27 0 49 
Total Level 3 securities$27,935 $(1,015)$(545)$3,581 $(5,815)$27,081 $(24,378)$26,844 

Level 3 Assets – 2025 Quarterly Change:
(in thousands)Beginning balance at June 30, 2025
Included in earnings(1)
Included
in other
comprehensive
income (loss)		PurchasesSales
Transfers into
Level 3(2)
Transfers out of Level 3(2)
Ending balance at September 30, 2025
Available-for-sale securities:
Corporate debt securities$6,176 $21 $45 $0 $(1,252)$1,139 $(3,074)$3,055 
Commercial mortgage-backed securities16,434 (226)99 0 (347)5,331 (3,525)17,766 
Residential mortgage-backed securities0 0 0 0 0 1,284 0 1,284 
Total available-for-sale securities22,610 (205)144 0 (1,599)7,754 (6,599)22,105 
Equity securities (3)
6 0 — 0 0 0 0 6 
Total Level 3 securities$22,616 $(205)$144 $0 $(1,599)$7,754 $(6,599)$22,111 
Level 3 Assets – 2025 Year-to-Date Change:
(in thousands)Beginning balance at December 31, 2024
Included in earnings(1)
Included
in other
comprehensive
income (loss)		PurchasesSales
Transfers into
Level 3(2)
Transfers out of Level 3(2)
Ending balance at September 30, 2025
Available-for-sale securities:
Corporate debt securities$6,268 $51 $12 $3,085 $(2,044)$4,615 $(8,932)$3,055 
Collateralized debt obligations0 (4)0 700 (696)0 0 0 
Commercial mortgage-backed securities24,089 (848)503 1,997 (2,734)16,403 (21,644)17,766 
Residential mortgage-backed securities0 0 0 0 (18)2,207 (905)1,284 
Total available-for-sale securities30,357 (801)515 5,782 (5,492)23,225 (31,481)22,105 
Equity securities (3)
500 (14)— 0 0 18 (498)6 
Total Level 3 securities$30,857 $(815)$515 $5,782 $(5,492)$23,243 $(31,979)$22,111 
(1)These amounts are reported as net investment income and net realized and unrealized investment gains (losses) for each of the periods presented above.
(2)Transfers into and/or (out) of Level 3 are primarily attributable to the availability of market observable information and the re-evaluation of the observability of pricing inputs.
(3)Prior-period amounts have been revised to exclude equity securities without readily determinable fair values. These revisions are not material and the impact was limited to our financial statement footnote disclosures.


Financial instruments not carried at fair value
The following table presents the carrying values and fair values of financial instruments categorized as Level 3 in the fair value hierarchy that are recorded at carrying value as of:
September 30, 2026December 31, 2025
(in thousands)Carrying valueFair valueCarrying valueFair value
Agent loans, net (1)
$118,738 $107,835 $109,331 $113,850 
Other loans receivable, net (2)
20,146 16,176 15,491 12,509 
Held-to-maturity securities, net (3)
4,833 4,261 4,833 4,863 
(1)    The current portion of agent loans is included in the line item "Prepaid expenses and other current assets, net" in the Consolidated Statements of Financial Position.
(2)    The current and long-term portions of other loans receivable are included in the line items "Prepaid expenses and other current assets, net" and "Other assets, net", respectively, in the Consolidated Statements of Financial Position.
(3)    Held-to-maturity securities are included in the line item "Other assets, net" in the Consolidated Statements of Financial Position.