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