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Fair Value of Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2020
Fair Value Disclosures [Abstract]  
Summary of Company's fair value hierarchy measured at recurring basis
The following table presents the Company's fair value hierarchy for those assets and liabilities measured and carried at fair value on a recurring basis. During the nine months ended September 30, 2020 and 2019, there were no transfers between Level 1 and Level 2. At September 30, 2020, Level 3 invested assets comprised 5.0% of the Company’s total investment portfolio at fair value.
($ in thousands) Fair Value Measurements at
 CarryingFairReporting Date Using
 AmountValueLevel 1Level 2Level 3
September 30, 2020
Financial Assets
Investments
Fixed maturity securities
U.S. Government and federally
sponsored agency obligations:
Mortgage-backed securities$702,862 $702,862 $— $690,663 $12,199 
Other, including U.S. Treasury securities384,137 384,137 18,446 365,691 — 
Municipal bonds1,816,501 1,816,501 — 1,750,830 65,671 
Foreign government bonds44,787 44,787 — 44,787 — 
Corporate bonds1,983,483 1,983,483 14,076 1,848,222 121,185 
Other asset-backed securities1,236,788 1,236,788 — 1,108,189 128,599 
Total fixed maturity securities6,168,558 6,168,558 32,522 5,808,382 327,654 
Equity securities102,303 102,303 36,274 65,941 88 
Short-term investments254,309 254,309 250,206 4,103 — 
Other investments30,245 30,245 — 30,245 — 
Totals$6,555,415 $6,555,415 $319,002 $5,908,671 $327,742 
Separate Account (variable annuity) assets (1)
$2,488,528 $2,488,528 $2,488,528 $— $— 
Financial Liabilities
Investment contract and policy reserves,
 embedded derivatives
$1,703 $1,703 $— $1,703 $— 
Other policyholder funds, embedded derivatives$98,070 $98,070 $— $— $98,070 
December 31, 2019
Financial Assets
Investments
Fixed maturity securities
U.S. Government and federally
sponsored agency obligations:
Mortgage-backed securities$724,319 $724,319 $— $711,004 $13,315 
Other, including U.S. Treasury securities458,868 458,868 17,699 441,169 — 
Municipal bonds
1,686,203 1,686,203 — 1,641,912 44,291 
Foreign government bonds
45,370 45,370 — 45,370 — 
Corporate bonds
1,581,424 1,581,424 14,470 1,463,002 103,952 
Other asset-backed securities
1,295,492 1,295,492 — 1,161,979 133,513 
Total fixed maturity securities
5,791,676 5,791,676 32,169 5,464,436 295,071 
Equity securities101,864 101,864 49,834 51,923 107 
Short-term investments172,667 172,667 172,667 — — 
Other investments25,997 25,997 — 25,997 — 
Totals
$6,092,204 $6,092,204 $254,670 $5,542,356 $295,178 
Separate Account (variable annuity) assets (1)
$2,490,469 $2,490,469 $2,490,469 $— $— 
Financial Liabilities     
Investment contract and policy reserves,
 embedded derivatives
$1,314 $1,314 $— $1,314 $— 
Other policyholder funds, embedded derivatives$93,733 $93,733 $— $— $93,733 
(1)    Separate Account (variable annuity) liabilities are equal to the estimated fair value of the Separate Account (variable annuity) assets.
Table for reconciliations for all Level 3 assets measured at fair value on a recurring basis
The reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) was as follows:
($ in thousands)Financial Assets
Financial
Liabilities (1)
Municipal
Bonds		Corporate
Bonds
Other
Mortgage-
Backed
Securities(2)
Total
Fixed
Maturity
Securities		Equity
Securities		Total
Beginning balance, July 1, 2020$73,171 $126,292 $200,146 $399,609 $115 $399,724 $93,619 
Transfers into Level 3 (3)
6,209 6,798 8,663 21,670 — 21,670 — 
Transfers out of Level 3 (3)
(16,708)(12,511)(70,950)(100,169)— (100,169)— 
Total gains or losses
Net investment gains (losses)
 included in net income related
 to financial assets
— — (238)(238)(27)(265)— 
Net investment (gains) losses
 included in net income related
 to financial liabilities
— — — — — — 4,406 
Net unrealized investment gains
(losses) included in OCI
3,150 551 6,321 10,022 — 10,022 — 
Purchases— — — — — — — 
Issuances— — — — — — 1,951 
Sales— — — — — — — 
Settlements— — — — — — — 
Paydowns, maturities and distributions(151)55 (3,144)(3,240)— (3,240)(1,906)
Ending balance, September 30, 2020$65,671 $121,185 $140,798 $327,654 $88 $327,742 $98,070 
Beginning balance, January 1, 2020$44,291 $103,952 $146,828 $295,071 $107 $295,178 $93,733 
Transfers into Level 3 (3)
80,686 39,601 95,377 215,664 — 215,664 — 
Transfers out of Level 3 (3)
(62,625)(26,699)(77,335)(166,659)— (166,659)— 
Total gains or losses
Net investment gains (losses)
 included in net income related
 to financial assets
— — (238)(238)(19)(257)— 
Net investment (gains) losses
 included in net income related
 to financial liabilities
— — — — — — 5,330 
Net unrealized investment gains
(losses) included in OCI
3,962 378 (14,780)(10,440)— (10,440)— 
Purchases— 6,875 1,890 8,765 — 8,765 — 
Issuances— — — — — — 5,818 
Sales— — — — — — — 
Settlements— — — — — — — 
Paydowns, maturities and distributions(643)(2,922)(10,944)(14,509)— (14,509)(6,811)
Ending balance, September 30, 2020$65,671 $121,185 $140,798 $327,654 $88 $327,742 $98,070 
(1)Represents embedded derivatives, all related to the Company's fixed indexed annuity products, reported in Other policyholder funds in the Company's Consolidated Balance Sheets.
(2)Includes U.S. Government and federally sponsored agency obligations for mortgage-backed securities and other mortgage-backed securities.
(3)Transfers into and out of Level 3 during the three and nine months ended September 30, 2020 were attributable to changes in the availability of observable market information for individual fixed maturity securities. The Company's policy is to recognize transfers into and out of the levels as having occurred at the end of the reporting period in which the transfers were determined.
($ in thousands)Financial Assets
Financial
Liabilities (1)
Municipal
Bonds		Corporate
Bonds
Other
Mortgage-
Backed
Securities (2)
Total
Fixed
Maturity
Securities		Equity
Securities		Total
Beginning balance, July 1, 2019$46,984 $79,222 $128,438 $254,644 $69 $254,713 $85,961 
Transfers into Level 3 (3)
— 18,916 21,004 39,920 1 39,921 — 
Transfers out of Level 3 (3)
— (2,822)(449)(3,271)— (3,271)— 
Total gains or losses
Net investment gains (losses)
 included in net income related
 to financial assets
— — — — 46 46 — 
Net investment (gains) losses
 included in net income related
 to financial liabilities
— — — — — — 3,661 
Net unrealized investment gains
 (losses) included in OCI
842 1,744 397 2,983 — 2,983 — 
Purchases— — — — — — — 
Issuances— — — — — — 2,033 
Sales— — — — — — — 
Settlements— — — — — — — 
Paydowns, maturities and distributions(121)(387)(2,685)(3,193)— (3,193)(2,557)
Ending balance, September 30, 2019$47,705 $96,673 $146,705 $291,083 $116 $291,199 $89,098 
Beginning balance, January 1, 2019$47,531 $80,742 $120,211 $248,484 $5 $248,489 $78,700 
Transfers into Level 3 (3)
— 24,798 42,938 67,736 65 67,801 — 
Transfers out of Level 3 (3)
— (7,698)(449)(8,147)— (8,147)— 
Total gains or losses
Net investment gains (losses)
 included in net income related
 to financial assets
— — — — 46 46 — 
Net investment (gains) losses
 included in net income related
 to financial liabilities
— — — — — — 8,366 
Net unrealized investment gains
 (losses) included in OCI
649 6,254 3,052 9,955 — 9,955 — 
Purchases— 1,566 — 1,566 — 1,566 — 
Issuances— — — — — — 7,482 
Sales— — (607)(607)— (607)— 
Settlements— — — — — — — 
Paydowns, maturities and distributions(475)(8,989)(18,440)(27,904)— (27,904)(5,450)
Ending balance, September 30, 2019$47,705 $96,673 $146,705 $291,083 $116 $291,199 $89,098 
(1)    Represents embedded derivatives, all related to the Company's fixed indexed annuity products, reported in Other policyholder funds in the Company's Consolidated Balance Sheets.
(2)    Includes U.S. Government and federally sponsored agency obligations for mortgage-backed securities and other mortgage-backed securities.
(3)    Transfers into and out of Level 3 during the three and nine months ended September 30, 2019 were attributable to changes in the availability of observable market information for individual fixed maturity securities. The Company's policy is to recognize transfers into and out of the levels as having occurred at the end of the reporting period in which the transfers were determined.
Quantitative Information about Level 3 Fair Value Measurements
The following table provides quantitative information about the significant unobservable inputs for recurring fair value measurements categorized within Level 3.
($ in thousands)
Financial
Assets		Fair Value at
September 30, 2020		Valuation Technique(s)Unobservable Inputs
Range
(Weighted Average)
and Single Point Best Estimate (1)
Municipal bonds$65,671 discounted cash flow
I spread (2)
578 bps
Corporate bonds121,185 discounted cash flow
N spread (3)
320 - 818 bps
market comparableoption adjusted spread12.54%
Other asset-backed securities128,599 vendor pricehaircut
3.00% - 5.00%
discounted cash flowconstant prepayment rate20.00%
discounted cash flow
T spread (4)
235 - 800 bps
discounted cash flow
PDI interest margin (5)
7.13%
discounted cash flow
SBL interest margin (6)
4.50%
Government mortgage-backed securities12,199 vendor pricehaircut
3.00% - 5.00%
Equity securities88 Black Scholesequity value
low - $43.27; high - $44.53
($ in thousands)
Financial
Liabilities		Fair Value at
September 30, 2020		Valuation Technique(s)Unobservable Inputs
Range
(Weighted Average)
and Single Point Best Estimate (1)
Derivatives
embedded in
fixed indexed annuity products		$98,070 discounted cash flowlapse rate5.25%
mortality multiplier (7)
61.00%
      option budget 
1.00% - 2.50%
non-performance adjustment (8)
5.00%
(1)    When a range of unobservable inputs is not readily available, the Company uses a single point best estimate.
(2)    "I spread" is the interpolated weighted average life point on the "on the run" (OTR) point of the curve.
(3)    "N spread" is the interpolated weighted average life point on the swap curve.
(4)    "T spread" is a specific point on the OTR curve.
(5)    "PDI" stands for private debt investment.
(6)    "SBL" stands for broadly syndicated loans.
(7)    Mortality multiplier is applied to the Annuity 2000 table.
(8)    Determined as a percentage of a risk-free rate.
Summary of fair value assets and liabilities measured on nonrecurring basis
The Company has various other financial assets and financial liabilities used in the normal course of business that are not carried at fair value, but for which fair value disclosure is required. These financial assets and financial liabilities are further described in Part II - Item 8, Note 4 in the Company's Annual Report on Form 10-K for the year ended December 31, 2019. The following table presents the carrying value, fair value and fair value hierarchy of these financial assets and financial liabilities.
($ in thousands)Fair Value Measurements at
CarryingFairReporting Date Using
AmountValueLevel 1Level 2Level 3
September 30, 2020
Financial Assets
Investments
Other investments$168,500 $172,303 $— $— $172,303 
Deposit asset on reinsurance2,402,539 2,925,672 — — 2,925,672 
Financial Liabilities
Investment contract and policy reserves,
fixed annuity contracts
4,812,911 4,720,941 — — 4,720,941 
Investment contract and policy reserves,
account values on life contracts
97,522 102,290 — — 102,290 
Other policyholder funds646,424 646,424 — 590,687 55,737 
Short-term debt135,000 135,000 — — 135,000 
Long-term debt302,247 331,829 — 331,829 — 
December 31, 2019
Financial Assets
Investments
Other investments$163,312 $167,185 $— $— $167,185 
Deposit asset on reinsurance2,346,166 2,634,012 — — 2,634,012 
Financial Liabilities     
Investment contract and policy reserves,
fixed annuity contracts
4,675,774 4,609,880 — — 4,609,880 
Investment contract and policy reserves,
account values on life contracts
93,465 98,332 — — 98,332 
Other policyholder funds 553,550 553,550 — 495,812 57,738 
Short-term debt135,000 135,000 — — 135,000 
Long-term debt298,025 322,678 — 322,678 —