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Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2019
Fair Value Disclosures [Abstract]  
Schedule of assets measured at fair value on a recurring basis
Assets measured at fair value on a recurring basis as of December 31, 2019 are summarized below:
 
Fair Value Measurements Using
Quoted Prices
in Active
Markets for
Identical Assets
Level 1
 
Significant
Other
Observable
Inputs
Level 2
 
Significant
Unobservable
Inputs
Level 3
 
Total
 
 
 
 
 
 
 
 
(in thousands)
Fixed maturity securities, available-for-sale:

 

 

 

State and municipal
$

 
$
167,101

 
$

 
$
167,101

Residential mortgage-backed

 
264,146

 

 
264,146

Corporate

 
632,221

 

 
632,221

Commercial mortgage and asset-backed

 
252,457

 


 
252,457

U.S. Treasury securities and obligations guaranteed by the U.S. government
115,173

 
494

 

 
115,667

Redeemable preferred stock

 
2,034

 

 
2,034

Total fixed maturity securities, available-for-sale
$
115,173

 
$
1,318,453

 
$

 
$
1,433,626

Equity securities:
 
 
 
 
Preferred stock
$

 
$
62,747

 
$

 
$
62,747

Common stock
14,669

 
3,276

 
43

 
17,988

Total equity securities
$
14,669

 
$
66,023

 
$
43

 
$
80,735

Short-term investments
$

 
$
156,925

 
$

 
$
156,925

Assets measured at fair value on a recurring basis as of December 31, 2018 are summarized below:
Fair Value Measurements Using
Quoted Prices
in Active
Markets for
Identical Assets
Level 1
 
Significant
Other
Observable
Inputs
Level 2
 
Significant
Unobservable
Inputs
Level 3
 
Total

(in thousands)
 
 
Fixed maturity securities, available-for-sale:

 

 

 

State and municipal
$

 
$
149,295

 
$

 
$
149,295

Residential mortgage-backed

 
204,109

 

 
204,109

Corporate

 
524,768

 

 
524,768

Commercial mortgage and asset-backed

 
192,797

 
4,228

 
197,025

U.S. Treasury securities and obligations guaranteed by the U.S. government
106,651

 
542

 

 
107,193

Redeemable preferred stock

 
1,812

 

 
1,812

Total fixed maturity securities, available-for-sale
$
106,651

 
$
1,073,323

 
$
4,228

 
$
1,184,202

Equity securities:
 
 
 
 
Preferred stock
$

 
$
60,740

 
$

 
$
60,740

Common stock
16,674

 
757

 
214

 
17,645

Total equity securities
$
16,674

 
$
61,497

 
$
214

 
$
78,385

Short-term investments
$
1,250

 
$
80,716

 
$

 
$
81,966


Schedule of fair value on a recurring basis using significant unobservable inputs (Level 3)
A reconciliation of the beginning and ending balances of available-for-sale fixed maturity securities and equity securities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) is shown below:
Year Ended December 31,
2019
 
2018
 
2017
(in thousands)
Beginning balance
$
4,442

 
$
4,680

 
$
5,000

Transfers in to Level 3
3,010

 

 

Transfers out of Level 3
(7,238
)
 

 

Purchases


 
214

 

Sales

 

 

Maturities and calls


 
(452
)
 
(320
)
Amortization of discount

 

 

Total gains or losses (realized/unrealized):
 
 
 
 
 
Included in earnings
(171
)
 

 

Included in other comprehensive income

 

 

Ending balance
$
43

 
$
4,442

 
$
4,680


Schedule of assets measured at fair value on a nonrecurring basis
Assets measured at fair value on a nonrecurring basis are summarized below:
Fair Value Measurements Using
Quoted Prices
in Active
Markets for
Identical Assets
Level 1
 
Significant
Other
Observable
Inputs
Level 2
 
Significant
Unobservable
Inputs
Level 3
 
Total
(in thousands)
December 31, 2019

 

 

 

Bank loan participations held-for-investment
$

 
$

 
$
6,949

 
$
6,949

December 31, 2018
 
 
 
 
 
 
 
Bank loan participations held-for-investment
$

 
$

 
$

 
$


Schedule of carrying value and fair value
The carrying values and fair values of financial instruments are summarized below:
December 31,
2019
 
2018
Carrying
Value
 
Fair
Value
 
Carrying
Value
 
Fair
Value
(in thousands)
Assets

 

 

 

Fixed maturity securities, available-for-sale
$
1,433,626

 
$
1,433,626

 
$
1,184,202

 
$
1,184,202

Equity securities
80,735

 
80,735

 
78,385

 
78,385

Bank loan participations held-for-investment
260,864

 
252,423

 
260,972

 
250,697

Cash and cash equivalents
206,912

 
206,912

 
172,457

 
172,457

Restricted cash equivalents
1,199,164

 
1,199,164

 

 

Short-term investments
156,925

 
156,925

 
81,966

 
81,966

Other invested assets – notes receivable
13,250

 
18,756

 
13,250

 
18,687

Liabilities
 
 
 
 

 

Senior debt
158,300

 
158,043

 
118,300

 
118,317

Junior subordinated debt
104,055

 
122,193

 
104,055

 
117,057