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Fair Value Measurements (Tables)
9 Months Ended
Sep. 30, 2015
Fair Value Disclosures [Abstract]  
Fair Value of Assets Measured on Recurring Basis

The following table presents the fair values of the Company’s assets, measured on a recurring basis, as of September 30, 2015 and December 31, 2014:

 

(in thousands)

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

September 30, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury bonds

 

$

112,805

 

 

$

 

 

$

112,805

 

 

$

 

Municipal bonds

 

 

692,988

 

 

 

 

 

 

692,988

 

 

 

 

Foreign bonds

 

 

181,310

 

 

 

 

 

 

181,310

 

 

 

 

Governmental agency bonds

 

 

421,337

 

 

 

 

 

 

421,337

 

 

 

 

Governmental agency mortgage-backed securities

 

 

2,077,417

 

 

 

 

 

 

2,077,417

 

 

 

 

Corporate debt securities

 

 

788,259

 

 

 

 

 

 

779,901

 

 

 

8,358

 

 

 

 

4,274,116

 

 

 

 

 

 

4,265,758

 

 

 

8,358

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stocks

 

 

15,645

 

 

 

15,645

 

 

 

 

 

 

 

Common stocks

 

 

296,390

 

 

 

296,390

 

 

 

 

 

 

 

 

 

 

312,035

 

 

 

312,035

 

 

 

 

 

 

 

Total assets

 

$

4,586,151

 

 

$

312,035

 

 

$

4,265,758

 

 

$

8,358

 

 

(in thousands)

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

December 31, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury bonds

 

$

64,982

 

 

$

 

 

$

64,982

 

 

$

 

Municipal bonds

 

 

587,677

 

 

 

 

 

 

587,677

 

 

 

 

Foreign bonds

 

 

196,750

 

 

 

 

 

 

196,750

 

 

 

 

Governmental agency bonds

 

 

197,874

 

 

 

 

 

 

197,874

 

 

 

 

Governmental agency mortgage-backed securities

 

 

1,812,162

 

 

 

 

 

 

1,812,162

 

 

 

 

Non-agency mortgage-backed securities

 

 

16,538

 

 

 

 

 

 

 

 

 

16,538

 

Corporate debt securities

 

 

574,269

 

 

 

 

 

 

574,269

 

 

 

 

 

 

 

3,450,252

 

 

 

 

 

 

3,433,714

 

 

 

16,538

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stocks

 

 

15,525

 

 

 

15,525

 

 

 

 

 

 

 

Common stocks

 

 

386,887

 

 

 

386,887

 

 

 

 

 

 

 

 

 

 

402,412

 

 

 

402,412

 

 

 

 

 

 

 

Total assets

 

$

3,852,664

 

 

$

402,412

 

 

$

3,433,714

 

 

$

16,538

 

 

Summary of Changes in Fair Value of Level 3 Assets Measured on Recurring Basis

The following table presents a summary of the changes in the fair values of Level 3 assets measured on a recurring basis for the three months ended September 30, 2015 and 2014:

(in thousands)

 

September 30,

2015

 

 

 

September 30,

2014

 

 

Corporate

debt

securities

 

 

 

 

Non-agency

mortgage-backed

securities

 

Fair value at beginning of period

$

11,358

 

 

 

$

17,994

 

Transfers into Level 3

 

1,921

 

 

 

 

 

Transfers out of Level 3

 

(4,011

)

 

 

 

 

Net realized and unrealized gains (losses):

 

 

 

 

 

 

 

 

Included in earnings:

 

 

 

 

 

 

 

 

Net realized investment losses

 

(2

)

 

 

 

 

Included in other comprehensive income (loss)

 

(40

)

 

 

 

252

 

Purchases

 

1,698

 

 

 

 

 

Sales

 

(92

)

 

 

 

 

Settlements

 

(2,474

)

 

 

 

(695

)

Fair value at end of period

$

8,358

 

 

 

$

17,551

 

The following table presents a summary of the changes in the fair values of Level 3 assets measured on a recurring basis for the nine months ended September 30, 2015 and 2014:

(in thousands)

 

September 30, 2015

 

 

 

September 30, 2014

 

 

Corporate

debt

securities

 

 

 

Non-agency

mortgage-backed

securities

 

 

 

Total

 

 

 

Non-agency

mortgage-backed

securities

 

Fair value at beginning of period

$

 

 

$

16,538

 

 

$

16,538

 

 

$

19,022

 

Net realized and unrealized gains (losses):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net realized investment gains (losses)

 

1

 

 

 

(1,015

)

 

 

(1,014

)

 

 

 

Net other-than-temporary impairment losses

 

 

 

 

 

 

 

 

 

 

(1,033

)

Included in other comprehensive income (loss)

 

6

 

 

 

(589

)

 

 

(583

)

 

 

941

 

Purchases

 

8,831

 

 

 

 

 

 

8,831

 

 

 

 

Sales

 

(427

)

 

 

(14,934

)

 

 

(15,361

)

 

 

 

Settlements

 

(53

)

 

 

 

 

 

(53

)

 

 

(1,379

)

Fair value at end of period

$

8,358

 

 

$

 

 

$

8,358

 

 

$

17,551

 

Unrealized gains (losses) included in earnings for the period relating to Level 3 assets that were still held at the end of the period:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net other-than-temporary impairment losses

$

 

 

$

 

 

$

 

 

$

(1,033

)

 

Carrying Amounts and Estimated Fair Values of Financial Instruments Not Measured at Fair Value

The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments not measured at fair value as of September 30, 2015 and December 31, 2014:

 

 

 

Carrying

 

Estimated fair value

 

(in thousands)

 

 

Amount

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

September 30, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

894,430

 

$

894,430

 

 

$

894,430

 

 

$

 

 

$

 

Deposits with banks

 

$

16,388

 

$

16,444

 

 

$

547

 

 

$

15,897

 

 

$

 

Notes receivable, net

 

$

6,026

 

$

4,440

 

 

$

 

 

$

 

 

$

4,440

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

$

2,621,209

 

$

2,621,209

 

 

$

2,621,209

 

 

$

 

 

$

 

Notes and contracts payable

 

$

584,952

 

$

596,894

 

 

$

 

 

$

590,673

 

 

$

6,221

 

 

 

 

Carrying

 

Estimated fair value

 

(in thousands)

 

 

Amount

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

December 31, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,190,080

 

$

1,190,080

 

 

$

1,190,080

 

 

$

 

 

$

 

Deposits with banks

 

$

21,445

 

$

21,540

 

 

$

4,068

 

 

$

17,472

 

 

$

 

Notes receivable, net

 

$

6,130

 

$

3,930

 

 

$

 

 

$

 

 

$

3,930

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

$

2,332,714

 

$

2,332,714

 

 

$

2,332,714

 

 

$

 

 

$

 

Notes and contracts payable

 

$

587,337

 

$

595,087

 

 

$

 

 

$

588,542

 

 

$

6,545