DISCLOSURES ABOUT THE FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2015

Summary of carrying amount and estimated fair value of financial instruments

The carrying amount and the estimated fair value of the Company’s financial instruments is summarized below.



December 31, 2015	Carrying amount		Estimated fair value
($ in thousands)	Carrying amount		Estimated fair value
Assets:
Fixed maturity securities available-for-sale:
U.S. treasury	$	12,589	$	12,589
U.S. government-sponsored agencies	202,666		202,666
Obligations of states and political subdivisions	344,359		344,359
Commercial mortgage-backed	46,108		46,108
Residential mortgage-backed	88,543		88,543
Other asset-backed	17,844		17,844
Corporate	448,916		448,916
Total fixed maturity securities available-for-sale	1,161,025		1,161,025

Equity securities available-for-sale:
Common stocks:
Financial services	33,955		33,955
Information technology	28,102		28,102
Healthcare	25,894		25,894
Consumer staples	18,200		18,200
Consumer discretionary	18,923		18,923
Energy	21,068		21,068
Industrials	20,416		20,416
Other	20,683		20,683
Non-redeemable preferred stocks	19,002		19,002
Total equity securities available-for-sale	206,243		206,243

Short-term investments	38,599		38,599

Liabilities:
Surplus notes	25,000		10,823



December 31, 2014	Carrying amount		Estimated fair value
($ in thousands)	Carrying amount		Estimated fair value
Assets:
Fixed maturity securities available-for-sale:
U.S. treasury	$	9,703	$	9,703
U.S. government-sponsored agencies	215,616		215,616
Obligations of states and political subdivisions	326,058		326,058
Commercial mortgage-backed	46,762		46,762
Residential mortgage-backed	97,953		97,953
Other asset-backed	16,005		16,005
Corporate	415,402		415,402
Total fixed maturity securities available-for-sale	1,127,499		1,127,499

Equity securities available-for-sale:
Common stocks:
Financial services	34,379		34,379
Information technology	26,865		26,865
Healthcare	26,852		26,852
Consumer staples	16,694		16,694
Consumer discretionary	22,691		22,691
Energy	22,863		22,863
Industrials	18,221		18,221
Other	16,056		16,056
Non-redeemable preferred stocks	12,415		12,415
Total equity securities available-for-sale	197,036		197,036

Short-term investments	53,262		53,262

Liabilities:
Surplus notes	25,000		12,308

Summary of assets and liabilities measured on recurring and non-recurring basis

Presented in the tables below are the estimated fair values of the Company’s financial instruments as of December 31, 2015 and 2014.



December 31, 2015			Fair value measurements using
($ in thousands)	Total		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Financial instruments reported at fair value on recurring basis:
Assets:
Fixed maturity securities available-for-sale:
U.S. treasury	$	12,589	$	—	$	12,589	$	—
U.S. government-sponsored agencies	202,666		—		202,666		—
Obligations of states and political subdivisions	344,359		—		344,359		—
Commercial mortgage-backed	46,108		—		46,108		—
Residential mortgage-backed	88,543		—		88,543		—
Other asset-backed	17,844		—		17,844		—
Corporate	448,916		—		447,587		1,329
Total fixed maturity securities available-for-sale	1,161,025		—		1,159,696		1,329

Equity securities available-for-sale:
Common stocks:
Financial services	33,955		33,952		—		3
Information technology	28,102		28,102		—		—
Healthcare	25,894		25,894		—		—
Consumer staples	18,200		18,200		—		—
Consumer discretionary	18,923		18,923		—		—
Energy	21,068		21,068		—		—
Industrials	20,416		20,416		—		—
Other	20,683		20,683		—		—
Non-redeemable preferred stocks	19,002		11,706		7,296		—
Total equity securities available-for-sale	206,243		198,944		7,296		3

Short-term investments	38,599		38,599		—		—

Financial instruments not reported at fair value:
Liabilities:
Surplus notes	10,823		—		—		10,823



December 31, 2014			Fair value measurements using
($ in thousands)	Total		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Financial instruments reported at fair value on recurring basis:
Assets:
Fixed maturity securities available-for-sale:
U.S. treasury	$	9,703	$	—	$	9,703	$	—
U.S. government-sponsored agencies	215,616		—		215,616		—
Obligations of states and political subdivisions	326,058		—		326,058		—
Commercial mortgage-backed	46,762		—		46,762		—
Residential mortgage-backed	97,953		—		97,953		—
Other asset-backed	16,005		—		16,005		—
Corporate	415,402		—		413,740		1,662
Total fixed maturity securities available-for-sale	1,127,499		—		1,125,837		1,662

Equity securities available-for-sale:
Common stocks:
Financial services	34,379		34,376		—		3
Information technology	26,865		26,865		—		—
Healthcare	26,852		26,852		—		—
Consumer staples	16,694		16,694		—		—
Consumer discretionary	22,691		22,691		—		—
Energy	22,863		22,863		—		—
Industrials	18,221		18,221		—		—
Other	16,056		16,056		—		—
Non-redeemable preferred stocks	12,415		7,745		4,670		—
Total equity securities available-for-sale	197,036		192,363		4,670		3

Short-term investments	53,262		53,262		—		—

Financial instruments not reported at fair value:
Liabilities:
Surplus notes	12,308		—		—		12,308

Reconciliation of assets measured at fair value on recurring basis using significant unobservable inputs

Presented in the table below is a reconciliation of the assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2015 and 2014. Any unrealized gains or losses on these securities are recognized in other comprehensive income. Any gains or losses from settlements, disposals or impairments of these securities are reported as realized investment gains or losses in net income.



	Fair value measurements using significant unobservable (Level 3) inputs
($ in thousands)	Fixed maturity securities available-for-sale, corporate			Equity securities available-for-sale, financial services		Total
Balance at December 31, 2013	$	1,976		$	3	$	1,979
Settlements	(322		)	—		(322		)
Unrealized gains (losses) included in other comprehensive income (loss)	8			—		8
Balance at December 31, 2014	1,662			3		1,665
Settlements	(327		)	—		(327		)
Unrealized gains (losses) included in other comprehensive income (loss)	(6		)	—		(6		)
Balance at December 31, 2015	$	1,329		$	3	$	1,332