v3.26.1
Fair Value Measurement
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurement
3. Fair Value Measurement
When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, the Company considers the principal or most advantageous market in which the Company would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as risks inherent in valuation techniques, transfer restrictions, and credit risk. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:
•Level 1 — Quoted prices in active markets for identical assets or liabilities that are publicly accessible at the measurement date.
•Level 2 — Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
•Level 3 — Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability.
The following table summarizes the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis:

March 31, 2026
Level 1Level 2Level 3Total
(in millions)
Financial assets:
Cash, cash equivalents, and restricted cash$304.8 $— $— $304.8 
Fixed maturities available-for-sale:
U.S. government and agencies87.0 — — 87.0 
States and other territories— 7.3 — 7.3 
Corporate securities— 145.9 — 145.9 
Residential mortgage-backed securities— 36.1 — 36.1 
Commercial mortgage-backed securities— 4.0 — 4.0 
Asset backed securities— 18.4 — 18.4 
Total fixed maturities available-for-sale87.0 211.7 — 298.7 
Short-term investments
U.S. government and agencies87.0 — — 87.0 
Corporate securities— 38.2 — 38.2 
Total short-term investments87.0 38.2 — 125.2 
Total financial assets$478.8 $249.9 $— $728.7 
December 31, 2025
Level 1Level 2Level 3Total
(in millions)
Financial assets:
Cash, cash equivalents, and restricted cash$250.1 $— $— $250.1 
Fixed maturities available-for-sale:
U.S. government and agencies75.7 — — 75.7 
States and other territories— 8.2 — 8.2 
Corporate securities— 146.4 — 146.4 
Residential mortgage-backed securities— 37.7 — 37.7 
Commercial mortgage-backed securities— 5.0 — 5.0 
Asset backed securities— 20.4 — 20.4 
Total fixed maturities available-for-sale75.7 217.7 — 293.4 
Short-term investments
U.S. government and agencies103.5 — — 103.5 
Corporate securities— 49.0 — 49.0 
Total short-term investments103.5 49.0 — 152.5 
Total financial assets$429.3 $266.7 $— $696.0 
The Company’s policy is to recognize transfers into and transfers out of fair value hierarchy levels at the end of each reporting period. There were no transfers between levels in the fair value hierarchy during the three months ended March 31, 2026.
Non-Recurring Fair Value Measurements
The Company has a 19.2% ownership stake in First Connect Insurance Services (“First Connect”), a non-public company. The Company estimates the fair value on a non-recurring basis using the fair value of First Connect’s common stock, as applicable. Because of the nature of the unobservable inputs, the Company classifies this retained interest as Level 3 in the fair value hierarchy. The fair value of the Company’s investment was $4.5 million as of March 31, 2026 and December 31, 2025, included in Other Assets on the unaudited interim condensed consolidated balance sheets.