v3.26.1
Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
    The Company’s fixed maturity available for sale securities, equity securities and its arbitrage trading account securities are carried at fair value. Fair value is defined as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” The Company utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels, as follows:
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.
Level 2 - Quoted prices for similar assets or valuations based on inputs that are observable.
Level 3 - Estimates of fair value based on internal pricing methodologies using unobservable inputs. Unobservable inputs are only used to measure fair value to the extent that observable inputs are not available.
    Substantially all of the Company’s fixed maturity securities were priced by independent pricing services (generally one
U.S. pricing service plus additional pricing services with respect to a limited number of foreign securities held by the Company). The prices provided by the independent pricing services are estimated based on observable market data in active markets utilizing pricing models and processes, which may include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, sector groupings, matrix pricing and reference data. The pricing services may prioritize inputs differently on any given day for any security based on market conditions, and not all inputs are available for each security evaluation on any given day. The pricing services used by the Company have indicated that they will only produce an estimate of fair value if objectively verifiable information is available. The determination of whether markets are active or inactive is based upon the volume and level of activity for a particular asset class. The Company reviews the prices provided by pricing services for reasonableness and periodically performs independent price tests of a sample of securities to ensure proper valuation.
    If prices from independent pricing services are not available for fixed maturity securities, the Company estimates the fair value. For Level 2 securities, the Company utilizes pricing models and processes which may include benchmark yields, sector groupings, matrix pricing, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, bids, offers and reference data. Where broker quotes are used, the Company generally requests two or more quotes and sets a price within the range of quotes received based on its assessment of the credibility of the quote and its own evaluation of the security. The Company generally does not adjust quotes received from brokers. For securities traded only in private negotiations, the Company determines fair value based primarily on the cost of such securities, which is adjusted to reflect prices of recent placements of securities of the same issuer, financial projections, credit quality and business developments of the issuer and other relevant information.
    For Level 3 securities, the Company generally uses a discounted cash flow model to estimate the fair value of fixed maturity securities. The cash flow models are based upon assumptions as to prevailing credit spreads, interest rate and interest rate volatility, time to maturity and subordination levels. Projected cash flows are discounted at rates that are adjusted to reflect illiquidity, where appropriate.
    
    The following tables present the assets and liabilities measured at fair value on a recurring basis as of June 30, 2026 and December 31, 2025 by level:
(In thousands)TotalLevel 1Level 2Level 3
June 30, 2026
Assets:
Fixed maturity securities available for sale:
U.S. government and government agency$4,402,996 $— $4,402,996 $— 
State and municipal1,642,356 — 1,642,356 — 
Mortgage-backed4,483,852 — 4,483,852 — 
Asset-backed4,076,528 — 4,076,528 — 
Corporate9,278,095 — 9,258,311 19,784 
Foreign government2,000,182 — 2,000,182 — 
Total fixed maturity securities available for sale25,884,009 — 25,864,225 19,784 
Equity securities:
Common stocks883,940 880,946 925 2,069 
Preferred stocks618,297 — 609,622 8,675 
Total equity securities1,502,237 880,946 610,547 10,744 
Arbitrage trading account1,292,382 1,199,119 93,150 113 
Total$28,678,628 $2,080,065 $26,567,922 $30,641 
Liabilities:
Trading account securities sold but not yet purchased$6,576 $6,576 $— $— 
December 31, 2025
Assets:
Fixed maturity securities available for sale:
U.S. government and government agency$3,998,038 $— $3,998,038 $— 
State and municipal1,837,194 — 1,837,194 — 
Mortgage-backed4,808,478 — 4,808,478 — 
Asset-backed3,810,346 — 3,810,346 — 
Corporate8,687,411 — 8,667,410 20,001 
Foreign government1,875,589 — 1,875,589 — 
Total fixed maturity securities available for sale25,017,056 — 24,997,055 20,001 
Equity securities:
Common stocks742,113 739,186 786 2,141 
Preferred stocks616,088 — 607,414 8,674 
Total equity securities1,358,201 739,186 608,200 10,815 
Arbitrage trading account1,221,103 1,139,447 81,543 113 
Total$27,596,360 $1,878,633 $25,686,798 $30,929 
Liabilities:
Trading account securities sold but not yet purchased$66,285 $66,285 $— $— 
    The following tables summarize changes in Level 3 assets and liabilities for the six months ended June 30, 2026 and for the year ended December 31, 2025:
(Losses) Gains Included In:
(In thousands)Beginning
Balance		(Losses) Earnings Other
Comprehensive (Losses) Income 		PurchasesSalesTransfers In / (Out)Ending
Balance
Six Months Ended June 30, 2026
Assets:
Fixed maturity securities available for sale:
Corporate$20,001 $— $(217)$— $— $— $19,784 
Total20,001 — (217)— — — 19,784 
Equity securities:
Common stocks2,141 (72)— — — — 2,069 
Preferred stocks8,674 — — — 1 — 8,675 
Total10,815 (72)— — 1 — 10,744 
Arbitrage trading account113 — — — — — 113 
Total$30,929 $(72)$(217)$— $1 $— $30,641 
Year Ended December 31, 2025
Assets:
Fixed maturity securities available for sale:
Corporate$19,667 $— $334 $— $— $— $20,001 
Total19,667 — 334 — — — 20,001 
Equity securities:
Common stocks2,041 226 — — (126)— 2,141 
Preferred stocks3,674 — — 6,160 (1,160)— 8,674 
Total5,715 226 — 6,160 (1,286)— 10,815 
Arbitrage trading account3,510 1,745 — — (5,143)1 113 
Total$28,892 $1,971 $334 $6,160 $(6,429)$1 $30,929 
    For the six months ended June 30, 2026, there were no securities transferred into or out of Level 3. For the year ended December 31, 2025, one security within the arbitrage trading account portfolio was transferred into Level 3 from Level 2 given there were no available quoted prices or observable inputs.
Fair Value of Financial Instruments
    The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments:
  June 30, 2026December 31, 2025
(In thousands)Carrying ValueFair ValueCarrying ValueFair Value
Assets:
Fixed maturity securities$25,899,992 $25,900,428 $25,047,662 $25,048,534 
Equity securities1,502,237 1,502,237 1,358,201 1,358,201 
Arbitrage trading account1,292,382 1,292,382 1,221,103 1,221,103 
Loans receivable265,644 265,644 418,913 419,074 
Cash and cash equivalents2,606,530 2,606,530 2,539,938 2,539,938 
Trading account receivables from brokers and clearing organizations3,139 3,139 11,669 11,669 
     Due from broker— — 629 629 
Liabilities:
Due to broker176,693 176,693 — — 
Trading account securities sold but not yet purchased6,576 6,576 66,285 66,285 
Senior notes and other debt1,829,445 1,447,266 1,829,198 1,440,055 
Subordinated debentures1,010,887 713,744 1,010,527 760,400 
    The estimated fair values of the Company’s fixed maturity securities, equity securities and arbitrage trading account securities are based on various valuation techniques that rely on fair value measurements as described in Note 15. The fair value of loans receivable is estimated by using current institutional purchaser yield requirements for loans with similar credit characteristics, which is considered a Level 2 input. The fair value of the senior notes and other debt and the subordinated debentures is based on spreads for similar securities, which is considered a Level 2 input.