Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Fair Value, by Balance Sheet Grouping

Assets measured at fair value on a recurring basis are as follows:

	March 31, 2020
	Level 1		Level 2		Level 3		Total
Available-for-sale debt securities:
U.S. Treasury	$	61,054	$	—	$	—	$	61,054
Federal agencies	3,921		—		—		3,921
States and political subdivision bonds	—		298,533		3,100		301,633
Foreign government	—		1,724		—		1,724
Corporate bonds	—		1,914,951		8,482		1,923,433
Residential mortgage-backed securities	—		1,249,306		—		1,249,306
Commercial mortgage-backed securities	—		611,369		—		611,369
Asset-backed securities	—		47,906		—		47,906
Structured securities	—		181,908		—		181,908
Total available-for-sale debt securities	64,975		4,305,697		11,582		4,382,254
Short-term investments	50,262		20,499		—		70,761
Other investments	3,829		—		3,832		7,661
Total	$	119,066	$	4,326,196	$	15,414	$	4,460,676
NGHC	$	84,817	$	4,026,924	$	15,414	$	4,127,155
Reciprocal Exchanges	34,249		299,272		—		333,521
Total	$	119,066	$	4,326,196	$	15,414	$	4,460,676

	December 31, 2019
	Level 1		Level 2		Level 3		Total
Available-for-sale debt securities:
U.S. Treasury	$	67,006	$	—	$	—	$	67,006
Federal agencies	3,915		—		—		3,915
States and political subdivision bonds	—		298,582		3,100		301,682
Foreign government	—		1,802		—		1,802
Corporate bonds	—		1,908,235		8,328		1,916,563
Residential mortgage-backed securities	—		1,277,460		—		1,277,460
Commercial mortgage-backed securities	—		612,193		—		612,193
Asset-backed securities	—		75,611		—		75,611
Structured securities	—		220,126		—		220,126
Total available-for-sale debt securities	70,921		4,394,009		11,428		4,476,358
Short-term investments	59,953		7,400		—		67,353
Other investments	4,881		—		4,484		9,365
Total	$	135,755	$	4,401,409	$	15,912	$	4,553,076
NGHC	$	116,602	$	4,091,068	$	15,912	$	4,223,582
Reciprocal Exchanges	19,153		310,341		—		329,494
Total	$	135,755	$	4,401,409	$	15,912	$	4,553,076

Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation

The following tables provide a reconciliation of recurring fair value measurements of the Level 3 financial assets:

	States and political subdivision bonds		Corporate bonds		Other investments		Total
Balance as of January 1, 2020	$	3,100	$	8,328	$	4,484	$	15,912
Total gains (losses) for the period:
Included in earnings	—		—		(375)		(375)
Included in other comprehensive income	—		154		—		154
Sales	—		—		(277)		(277)
Balance as of March 31, 2020	$	3,100	$	8,482	$	3,832	$	15,414
Change in unrealized gains (losses) for the period included in net income for assets held at the end of the reporting period	$	—	$	—	$	(375)	$	(375)
Change in unrealized gains (losses) for the period included in other comprehensive income for assets held at the end of the reporting period	$	—	$	154	$	—	$	154

	States and political subdivision bonds		Corporate bonds		Other investments		Total
Balance as of January 1, 2019	$	3,596	$	11,767	$	7,593	$	22,956
Total gains (losses) for the period:
Included in earnings	—		—		(405)		(405)
Included in other comprehensive income	64		67		—		131
Balance as of March 31, 2019	$	3,660	$	11,834	$	7,188	$	22,682
Change in unrealized gains (losses) for the period included in net income for assets held at the end of the reporting period	$	—	$	—	$	(405)	$	(405)
Change in unrealized gains (losses) for the period included in other comprehensive income for assets held at the end of the reporting period	$	64	$	67	$	—	$	131

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments

The following table presents the carrying amount and estimated fair value of debt not carried at fair value, excluding finance lease and other liabilities, as well as the input level used to determine the fair value:

		March 31, 2020				December 31, 2019
	Input Level	Carrying amount		Fair value		Carrying amount		Fair value
7.625% Notes	Level 2	$	96,950	$	83,880	$	96,928	$	103,560
6.75% Notes	Level 3	347,252		361,628		347,091		371,366
Subordinated Debentures	Level 3	72,168		72,118		72,168		72,103
2019 Credit Agreement	Level 3	140,000		141,227		140,000		148,272