Note 17. Fair Value Measurements

Certain assets and liabilities are recorded at fair value on the consolidated balance sheets and are measured and classified based upon a three-tiered approach to valuation. Financial assets and liabilities are recorded at fair value and are classified and disclosed in one of the following three categories:

Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2 – Quoted prices for identical or similar financial instruments in markets that are not considered to be active, or similar financial instruments for which all significant inputs are observable, either directly or indirectly, or inputs other than quoted prices that are observable, or inputs that are derived principally from or corroborated by observable market data through correlation or other means; and

Level 3 – Prices or valuations that require inputs that are both significant to the fair value measurement and are unobservable. These reflect management’s assumptions about the assumptions a market participant would use in pricing the asset or liability.

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

Fair values of investments available-for-sale are based on quoted market prices, dealer quotes or discounted cash flows.

Fair values of derivatives are based on pricing valuation models which include broker quotes.

The following tables represent the financial assets and liabilities on the consolidated balance sheets as of March 31, 2026 and March 31, 2025, that are measured at fair value on a recurring basis and the level within the fair value hierarchy.

As of March 31, 2026

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

 

 

 

 

(In thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Fixed maturities - available for sale

$

 

2,417,912

 

$

 

 

$

 

2,417,912

 

$

 

 

Preferred stock

 

 

5,887

 

 

 

5,887

 

 

 

 

 

 

 

Common stock

 

 

9,089

 

 

 

9,089

 

 

 

 

 

 

 

Derivatives

 

 

28,961

 

 

 

26,512

 

 

 

2,449

 

 

 

 

Total

$

 

2,461,849

 

$

 

41,488

 

$

 

2,420,361

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives

$

 

17,886

 

$

 

17,630

 

$

 

256

 

$

 

 

Embedded derivatives

 

 

8,937

 

 

 

 

 

 

 

 

 

8,937

 

Market risk benefits

 

 

12,113

 

 

 

 

 

 

 

 

 

12,113

 

Total

$

 

38,936

 

$

 

17,630

 

$

 

256

 

$

 

21,050

 

 

 

As of March 31, 2025

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(In thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Fixed maturities - available for sale

$

 

2,479,498

 

$

 

 

$

 

2,479,498

 

$

 

 

Preferred stock

 

 

22,136

 

 

 

22,136

 

 

 

 

 

 

 

Common stock

 

 

43,413

 

 

 

43,413

 

 

 

 

 

 

 

Derivatives

 

 

13,200

 

 

 

8,819

 

 

 

4,381

 

 

 

 

Total

$

 

2,558,247

 

$

 

74,368

 

$

 

2,483,879

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives

$

 

777

 

$

 

 

$

 

777

 

$

 

 

Embedded derivatives

 

 

8,693

 

 

 

 

 

 

 

 

 

8,693

 

Market risk benefits

 

 

13,432

 

 

 

 

 

 

 

 

 

13,432

 

Total

$

 

22,902

 

$

 

 

$

 

777

 

$

 

22,125

 

 

 

 

 

 

 

 

 

 

 

 

 

 

We estimate the fair value for financial instruments not carried at fair value using the same methods and assumptions as those we carry at fair value. The financial instruments presented below are reported at carrying value on the consolidated balance sheets.

Cash equivalents were $830.4 million and $700.0 million as of March 31, 2026 and March 31, 2025, respectively. Fair values of cash equivalents approximate carrying value due to the short period of time to maturity.

Fair values of mortgage loans and notes on real estate are based on quoted market prices, dealer quotes or discounted cash flows. Fair values of trade receivables approximate their recorded value.

Our financial instruments that are exposed to concentrations of credit risk consist primarily of temporary cash investments, trade receivables and notes receivable. Limited credit risk exists on trade receivables due to the diversity of our customer base and their dispersion across broad geographic markets. We place our temporary cash investments with financial institutions and limit the amount of credit exposure to any one financial institution.

We have mortgage loans, which potentially expose us to credit risk. The portfolio of loans is principally collateralized by self-storage facilities and commercial properties. We have not experienced any material losses related to the loans from individual or groups of loans in any particular industry or geographic area. The estimated fair values were determined using the discounted cash flow method and using interest rates currently offered for similar loans to borrowers with similar credit ratings.

The carrying and fair value of interest sensitive contract liabilities below includes fixed indexed and traditional fixed annuities without mortality or morbidity risks, funding agreements and payout annuities without life contingencies. The embedded derivatives within fixed indexed annuities without mortality or morbidity risks are excluded, as they are carried at fair value. The valuation of the investment contracts is based on discounted cash flow methodologies using significant unobservable inputs. The estimated fair value is determined using currently credited market interest rates.

Other investments are substantially current or bear reasonable interest rates. As a result, the carrying values of these financial instruments approximate fair value.

The following tables represent our financial instruments not carried at fair value on the consolidated balance sheets and corresponding placement in the fair value hierarchy:

 

 

 

Fair Value Hierarchy

 

 

 

Carrying

 

 

 

 

 

 

 

 

 

 

 

Total

 

As of March 31, 2026

 

Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Fair Value

 

 

 

(In thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade receivables, net

$

 

128,110

 

$

 

 

$

 

 

$

 

128,110

 

$

 

128,110

 

Mortgage loans, net

 

 

667,169

 

 

 

 

 

 

 

 

 

664,968

 

 

 

664,968

 

Policy loans

 

 

12,633

 

 

 

 

 

 

 

 

 

12,633

 

 

 

12,633

 

Total

$

 

807,912

 

$

 

 

$

 

 

$

 

805,711

 

$

 

805,711

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes, loans and finance leases payable

$

 

8,124,949

 

$

 

 

$

 

7,363,642

 

$

 

 

$

 

7,363,642

 

Liabilities from investment contracts

 

 

2,348,608

 

 

 

 

 

 

 

 

 

2,314,586

 

 

 

2,314,586

 

Total

$

 

10,473,557

 

$

 

 

$

 

7,363,642

 

$

 

2,314,586

 

$

 

9,678,228

 

 

Historical Timeline

Fiscal YearFiled
2026May 27, 2026Showing above
2025May 29, 2025
2024May 30, 2024
2023Jun 2, 2023
2022May 25, 2022
2021May 26, 2021
2020May 27, 2020
2019May 29, 2019
2018May 30, 2018
2017May 24, 2017
2016May 25, 2016

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.