Fair Value Measurements

3 Months Ended

Mar. 31, 2014

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 4 — Fair Value Measurements

The Company records and discloses certain financial assets at their estimated fair value but does not elect the fair value option for its long-term debt. 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.

The following table presents information about the Company’s financial assets measured at estimated fair value on a recurring basis and the estimated fair value of long-term debt that is reflected in the financial statements at carrying value. The table indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as of March 31, 2014 and December 31, 2013:

	Fair Value Measurements Using
	(Level 1)		(Level 2)		(Level 3)		Total
As of March 31, 2014
Financial Assets:
Cash and cash equivalents	$	296,576	$	—	$	—	$	296,576
Fixed-maturity securities:
U.S. Treasury and U.S. government agencies		3,611		842		—		4,453
Corporate bonds		29,837		935		—		30,772
Commercial mortgage-backed securities		—		11,278		—		11,278
State, municipalities, and political subdivisions		—		83,045		—		83,045
Redeemable preferred stock		3,565		—		—		3,565
Total fixed-maturity securities		37,013		96,100		—		133,113
Equity securities		22,872		—		—		22,872
Total available-for-sale securities		59,885		96,100		—		155,985
Total	$	356,461	$	96,100	$	—	$	452,561
Financial Liabilities:
Long-term debt:
8% Senior notes	$	—	$	43,438	$	—	$	43,438
3.875% Convertible senior notes		—		—		87,238		87,238
Total long-term debt	$	—	$	43,438	$	87,238	$	130,676
	Fair Value Measurements Using
	(Level 1)		(Level 2)		(Level 3)		Total
As of December 31, 2013
Financial Assets:
Cash and cash equivalents	$	293,398	$	—	$	—	$	293,398
Fixed-maturity securities:
U.S. Treasury and U.S. government agencies		3,520		1,044		—		4,564
Corporate bonds		24,476		928		—		25,404
Commercial mortgage-backed securities		—		11,332		—		11,332
State, municipalities, and political subdivisions		—		70,451		—		70,451
Redeemable preferred stock		400		—		—		400
Total fixed-maturity securities		28,396		83,755		—		112,151
Equity securities		17,649		—		—		17,649
Total available-for-sale securities		46,045		83,755		—		129,800
Total	$	339,443	$	83,755	$	—	$	423,198
Financial Liabilities:
Long-term debt:
8% Senior notes	$	—	$	43,390	$	—	$	43,390
3.875% Convertible senior notes		—		—		86,630		86,630
Total long-term debt	$	—	$	43,390	$	86,630	$	130,020

There were no transfers between Level 1, 2 or 3 during the three months ended March 31, 2014. During the year ended December 31, 2013, $10,684 of municipal bonds was transferred into Level 2 from Level 1.