Note 5 - Fair Value of Financial Instruments Level 3 (Tables)

12 Months Ended

Dec. 31, 2018

Assets & Liabilities Measured at Fair Value by Hierarchy Level

The following is a list of assets that are measured at fair value by hierarchy level as of December 31, 2018:



	December 31, 2018
(In thousands)	Level I		Level II		Total
Assets at Fair Value
Investment Portfolio:
U.S. government and agency securities	$	199,302	$	28,412	$	227,714
State and municipal obligations	—		324,742		324,742
Money market instruments	95,132		—		95,132
Corporate bonds and notes	—		2,564,068		2,564,068
RMBS	—		353,224		353,224
CMBS	—		591,393		591,393
Other ABS	—		705,468		705,468
Equity securities	136,662		3,958		140,620
Other investments (1)	—		175,113		175,113
Total Investments at Fair Value (2)	431,096		4,746,378		5,177,474		(3)
Total Assets at Fair Value (4)	$	431,096	$	4,746,378	$	5,177,474	(3)

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(1)	Comprising short-term certificates of deposit and commercial paper.


(2)	Does not include certain other invested assets of $3.4 million that is primarily invested in limited partnership investments valued using the net asset value as a practical expedient. Includes cash collateral held under securities lending agreements of $11.7 million that is reinvested in money market instruments.


(3)	Includes $27.9 million of securities loaned to third-party Borrowers under securities lending agreements, classified as other assets in our consolidated balance sheets. See Note 6 for more information.


(4)	Does not include the fair value of an immaterial embedded derivative, which we have accounted for separately as a freestanding derivative and classified in other assets in our consolidated balance sheet. See Note 8 for more information.

The following is a list of those assets that are measured at fair value by hierarchy level as of December 31, 2017:



	December 31, 2017
(In thousands)	Level I		Level II		Total
Assets at Fair Value
Investment Portfolio:
U.S. government and agency securities	$	124,969	$	8,023	$	132,992
State and municipal obligations	—		386,111		386,111
Money market instruments	213,357		—		213,357
Corporate bonds and notes	—		2,304,017		2,304,017
RMBS	—		216,749		216,749
CMBS	—		503,955		503,955
Other ABS	—		676,158		676,158
Foreign government and agency securities	—		36,448		36,448
Equity securities	175,205		860		176,065
Other investments (1)	—		25,720		25,720
Total Investments at Fair Value (2)	513,531		4,158,041		4,671,572		(3	)
Total Assets at Fair Value	$	513,531	$	4,158,041	$	4,671,572	(3	)

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(1)	Comprising short-term certificates of deposit and commercial paper.


(2)	Does not include certain other invested assets of $0.3 million, primarily invested in limited partnerships, accounted for as cost-method investments and not measured at fair value. Includes cash collateral held under securities lending agreements of $19.4 million reinvested in money market instruments.

(3)

Includes $28.0 million of securities loaned to third-party Borrowers under securities lending agreements, classified as other assets in our consolidated balance sheets. See Note 6 for more information.

Fair Value, by Balance Sheet Grouping [Table Text Block]

The carrying value and estimated fair value of other selected assets and liabilities not carried at fair value in our consolidated balance sheets were as follows as of the dates indicated:



	December 31, 2018				December 31, 2017
(In thousands)	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Assets:
Other invested assets (1)	$	—	$	—	$	334	$	3,226
Liabilities:
Senior notes	1,030,348		1,007,687		1,027,074		1,093,934

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(1)

As a result of implementing the update to the standard for the accounting of financial instruments effective January 1, 2018, other invested assets, primarily consisting of investments in limited partnerships, are no longer carried at amortized cost, and instead are valued in our consolidated balance sheets using the net asset value as a practical expedient to estimate fair value.