Fair Value Measurements

3 Months Ended

Mar. 31, 2013

Fair Value Measurements [Abstract]

Fair Value Measurements

Note 6 — Fair Value Measurements

The Company records and discloses certain financial assets at their estimated fair value. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels as follows:

Level 1	–	Unadjusted quoted prices in active markets for identical assets or liabilities.
Level 2	–	Other inputs that are observable for the asset and liability, either directly or indirectly.
Level 3	–	Inputs that are unobservable.

Long-term debt:

Long-term debt represents the Company’s 8.00% senior notes due 2020. The senior notes were initially sold to the public in January 2013 and trade on the New York Stock Exchange. The fair value is based on the closing market price.

The following table presents information about the Company’s financial assets and liabilities measured at estimated fair value on a recurring basis as of March 31, 2013 and December 31, 2012, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value (in thousands):

	Fair Value Measurements Using
	(Level 1)		(Level 2)		(Level 3)		Total
As of March 31, 2013
Cash and cash equivalents	$	279,327		—		—		279,327
Fixed-maturity securities:
U.S. Treasury and U.S. government agencies		582		1,176		—		1,758
Corporate bonds		11,117		—		—		11,117
Commercial mortgage-backed securities		—		10,741		—		10,741
State, municipalities, and political subdivisions		10,664		—		—		10,664
Redeemable preferred stock		837		—		—		837
Total fixed-maturity securities		23,200		11,917		—		35,117
Equity securities		9,944		—		—		9,944
Total available-for-sale securities		33,144		11,917		—		45,061
Total	$	312,471		11,917		—		324,388
Long-term debt	$	43,470		—		—		43,470

	Fair Value Measurements Using
	(Level 1)		(Level 2)		(Level 3)		Total
As of December 31, 2012
Cash and cash equivalents	$	230,214		—		—		230,214
Fixed-maturity securities:
U.S. Treasury and U.S. government agencies		583		864		—		1,447
Corporate bonds		10,860		—		—		10,860
Commercial mortgage-backed securities		—		11,644		—		11,644
State, municipalities, and political subdivisions		11,066		—		—		11,066
Redeemable preferred stock		936		—		—		936
Total fixed-maturity securities		23,445		12,508		—		35,953
Equity securities		8,876		—		—		8,876
Total available-for-sale securities		32,321		12,508		—		44,829
Total	$	262,535		12,508		—		275,043

There were no transfers between Level 1, 2 or 3 during the three months ended March 31, 2013 or during the year ended December 31, 2012.