Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2016

Fair value measurements for items measured at fair value

Fair value measurements for assets measured at fair value included the following as of March 31, 2016 and December 31, 2015:

March 31, 2016

(In thousands)	Total Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	148,528	$	51,448	$	97,080	$	—
Obligations of U.S. states and political subdivisions	1,913,130		—		1,911,938		1,192
Corporate debt securities	1,854,207		—		1,854,207		—
Asset-backed securities	110,328		—		110,328		—
Residential mortgage-backed securities	250,641		—		250,641		—
Commercial mortgage-backed securities	220,696		—		220,696		—
Collateralized loan obligations	60,384		—		60,384		—
Total debt securities	4,557,914		51,448		4,505,274		1,192
Equity securities ⁽¹⁾	6,289		2,868		—		3,421
Total investment portfolio	$	4,564,203	$	54,316	$	4,505,274	$	4,613
Real estate acquired ⁽²⁾	$	12,849	$	—	$	—	$	12,849

December 31, 2015

(In thousands)	Total Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	160,584	$	46,197	$	114,387	$	—
Obligations of U.S. states and political subdivisions	1,792,527		—		1,791,299		1,228
Corporate debt securities	2,004,763		—		2,004,763		—
Asset-backed securities	116,617		—		116,617		—
Residential mortgage-backed securities	257,648		—		257,648		—
Commercial mortgage-backed securities	233,491		—		233,491		—
Collateralized loan obligations	60,200		—		60,200		—
Debt securities issued by foreign sovereign governments	31,731		31,731		—		—
Total debt securities	4,657,561		77,928		4,578,405		1,228
Equity securities ⁽¹⁾	5,645		2,790		—		2,855
Total investment portfolio	$	4,663,206	$	80,718	$	4,578,405	$	4,083
Real estate acquired ⁽²⁾	$	12,149	$	—	$	—	$	12,149


⁽¹⁾	Equity securities in Level 3 are carried at cost, which approximates fair value.


⁽²⁾	Real estate acquired through claim settlement, which is held for sale, is reported in Other assets on the consolidated balance sheets.

Reconciliation of beginning and ending balance for assets and liabilities measured at fair value with significant unobservable inputs (level 3)

For assets measured at fair value using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances for the three months ended March 31, 2016 and 2015 is shown in the following tables. There were no transfers into or out of Level 3 in those periods and there were no losses included in earnings for those periods attributable to the change in unrealized losses on assets still held at the end of the applicable period.



(In thousands)	Debt Securities			Equity Securities			Total Investments			Real Estate Acquired
Balance at December 31, 2015	$	1,228		$	2,855		$	4,083		$	12,149
Total realized/unrealized gains (losses):
Included in earnings and reported as losses incurred, net	—			—			—			(293		)
Purchases	—			3,091			3,091			12,267
Sales	(36		)	(2,525		)	(2,561		)	(11,274		)
Balance at March 31, 2016	$	1,192		$	3,421		$	4,613		$	12,849



(In thousands)	Debt Securities			Equity Securities		Total Investments			Real Estate Acquired
Balance at December 31, 2014	$	1,846		$	321	$	2,167		$	12,658
Total realized/unrealized gains (losses):
Included in earnings and reported as losses incurred, net	—			—		—			(503		)
Purchases	7			—		7			10,797
Sales	(62		)	—		(62		)	(12,055		)
Balance at March 31, 2015	$	1,791		$	321	$	2,112		$	10,897

Carrying value and fair value of debt



March 31, 2016
(In thousands)	Carrying Value		Fair Value
Financial liabilities:
FHLB Advance due 2023	$	155,000	$	156,831
Convertible Senior Notes due 2017	194,319		203,771
Convertible Senior Notes due 2020	491,305		630,310
Convertible Junior Subordinated Debentures due 2063	256,872		292,754
Total Debt	$	1,097,496	$	1,283,666



December 31, 2015
(In thousands)	Carrying Value		Fair Value
Financial liabilities:

Convertible Senior Notes due 2017	$	331,546	$	345,616
Convertible Senior Notes due 2020	490,755		701,955
Convertible Junior Subordinated Debentures due 2063	389,522		455,067
Total Debt	$	1,211,823	$	1,502,638