Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurement Inputs and Valuation Techniques

The following table sets forth the range and weighted average, weighted by relative fair value, of the spread as of March 31, 2023:

	March 31, 2023
High	9.50	%
Low	2.05	%
Weighted average	5.85	%

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables set forth the Company’s investments within the fair value hierarchy at March 31, 2023 and December 31, 2022:

March 31, 2023
($ in thousands)	Level 1		Level 2		Level 3		Total
Fixed maturity securities, available-for-sale:
U.S. government securities	$	44,918	$	—	$	—	$	44,918
Corporate securities and miscellaneous	—		262,434		—		262,434
Municipal securities	—		67,339		—		67,339
Residential mortgage-backed securities	—		133,890		—		133,890
Commercial mortgage-backed securities	—		52,182		—		52,182
Asset-backed securities	—		112,374		—		112,374
Total fixed maturity securities, available-for-sale	44,918		628,219		—		673,137
Fixed maturity securities, held-to-maturity:
Asset-backed securities	—		—		44,492		44,492
Total fixed maturity securities, held-to-maturity	—		—		44,492		44,492
Common stocks:
Consumer discretionary	1,965		—		—		1,965
Consumer staples	13,116		—		—		13,116
Energy	2,947		—		—		2,947
Finance	19,088		—		—		19,088
Industrial	11,244		—		—		11,244
Information technology	2,912		—		—		2,912
Materials	3,253		—		—		3,253
Other	2,292		—		—		2,292
Total common stocks	56,817		—		—		56,817
Preferred stocks:
Consumer staples			473		—		473
Finance			3,979		—		3,979
Industrial	—		1,135		—		1,135
Other	—		735		—		735
Total preferred stocks	—		6,322		—		6,322
Mutual funds:
Fixed income	5,191		—		—		5,191
Equity	51,615		—		—		51,615
Commodity	520		—		—		520
Total mutual funds	57,326		—		—		57,326
Total equity securities	114,143		6,322		—		120,465
Mortgage loans	—		—		42,335		42,335
Short-term investments	287,351		—		—		287,351
Total investments	$	446,412	$	634,541	$	86,827	$	1,167,780

December 31, 2022
($ in thousands)	Level 1		Level 2		Level 3		Total
Fixed maturity securities, available-for-sale:
U.S. government securities	$	48,541	$	—	$	—	$	48,541
Corporate securities and miscellaneous	—		235,129		—		235,129
Municipal securities	—		57,727		—		57,727
Residential mortgage-backed securities	—		119,856		—		119,856
Commercial mortgage-backed securities	—		36,495		—		36,495
Asset-backed securities	—		109,824		—		109,824
Total fixed maturity securities, available-for-sale	48,541		559,031		—		607,572
Fixed maturity securities, held-to-maturity:
Asset-backed securities	—		—		46,771		46,771
Total fixed maturity securities, held-to-maturity:	—		—		46,771		46,771
Common stocks:
Consumer discretionary	1,948		—		—		1,948
Consumer staples	12,036		—		—		12,036
Energy	3,241		—		—		3,241
Finance	22,636		—		—		22,636
Industrial	9,452		—		—		9,452
Information technology	2,284		—		—		2,284
Materials	2,820		—		—		2,820
Other	1,579		—		—		1,579
Total common stocks	55,996		—		—		55,996
Preferred stocks:
Consumer staples	—		117		—		117
Finance	—		7,085		—		7,085
Industrial	—		1,020		—		1,020
Other	—		549		—		549
Total preferred stocks	—		8,771		—		8,771
Mutual funds:
Fixed income	5,068		—		—		5,068
Equity	49,773		—		—		49,773
Commodity	561		—		—		561
Total mutual funds	55,402		—		—		55,402
Total equity securities	111,398		8,771		—		120,169
Mortgage loans	—		—		52,842		52,842
Short-term investments	121,158		—		—		121,158
Total investments	$	281,097	$	567,802	$	99,613	$	948,512

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following table sets forth the changes in the fair value of instruments carried at fair value with a Level 3 measurement during the three months ended March 31, 2023:

($ in thousands)	Mortgage Loans
Balance at December 31, 2022	$	52,842
Total gains for the period recognized in net investment gains (losses)	$	22
Issuances	$	892
Settlements	(11,421)
Balance at March 31, 2023	$	42,335
Total losses for the period recognized in net investment gains (losses) attributable to the change in unrealized gains or losses relating to assets held as of period end	$	(14)

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following table sets forth the changes in the fair value of instruments carried at fair value with a Level 3 measurement during the three months ended March 31, 2023:

($ in thousands)	Mortgage Loans
Balance at December 31, 2022	$	52,842
Total gains for the period recognized in net investment gains (losses)	$	22
Issuances	$	892
Settlements	(11,421)
Balance at March 31, 2023	$	42,335
Total losses for the period recognized in net investment gains (losses) attributable to the change in unrealized gains or losses relating to assets held as of period end	$	(14)

Summary of Subordinated Debt

The following table sets forth the Company’s carrying and fair values of notes payable and subordinated debt as of March 31, 2023 and December 31, 2022:

	March 31, 2023				December 31, 2022
($ in thousands)	Carrying Value		Fair Value		Carrying Value		Fair Value
Notes Payable
Term loan, due December 31, 2024	$	—	$	—	$	50,000	$	50,000
Revolving credit facility	50,000		50,000		—		—
Notes payable	$	50,000	$	50,000	$	50,000	$	50,000
Subordinated Debt
Junior subordinated interest debentures	$	59,149	$	59,794	$	59,137	$	59,794
Unsecured subordinated notes	19,480		18,622		19,472		18,934
Subordinated debt, net of debt issuance costs	$	78,629	$	78,416	$	78,609	$	78,728