Fair Value (Tables)

12 Months Ended

Dec. 31, 2020

Fair Value Disclosures [Abstract]

Schedule of Fair Value Measurements on a Recurring Basis by Asset Class and Level of Input

The following tables present our fair value measurements on a recurring basis by asset class and level of input as of:

	December 31, 2020
(in thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities:
Corporate debt securities	$	566,425	$	1,281	$	559,319	$	5,825
Residential mortgage-backed securities	112,179		0		111,242		937
Commercial mortgage-backed securities	120,201		0		100,739		19,462
Collateralized debt obligations	110,447		0		110,447		0
Other debt securities	18,984		0		18,984		0
Total available-for-sale securities	928,236		1,281		900,731		26,224
Equity securities - nonredeemable preferred and common stock:
Financial services sector	76,575		24,981		51,594		0
Utilities sector	8,742		3,957		4,785		0
Consumer sector	3,068		576		2,492		0
Communications sector	2,699		2,699		0		0
Energy sector	2,206		676		1,530		0
Industrial sector	800		800		0		0
Total equity securities	94,090		33,689		60,401		0
Total	$	1,022,326	$	34,970	$	961,132	$	26,224

	December 31, 2019
(in thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities:
Corporate debt securities	$	454,880	$	2,683	$	443,873	$	8,324
Residential mortgage-backed securities	125,343		0		125,343		0
Commercial mortgage-backed securities	67,541		0		64,220		3,321
Collateralized debt obligations	77,856		0		77,856		0
Other debt securities	5,081		0		5,081		0
Total available-for-sale securities	730,701		2,683		716,373		11,645
Equity securities - nonredeemable preferred and common stock:
Financial services sector	53,513		14,927		38,586		0
Utilities sector	6,818		3,190		3,628		0
Communications sector	3,433		3,433		0		0
Energy sector	1,881		0		1,881		0
Industrial sector	980		0		980		0
Consumer sector	508		0		508		0
Total equity securities	67,133		21,550		45,583		0
Total	$	797,834	$	24,233	$	761,956	$	11,645

Schedule of Roll Forward of Level 3 Fair Value Measurements on a Recurring Basis

Level 3 Assets – Year-to-Date Change:

(in thousands)	Beginning balance at December 31, 2019		Included in earnings(1)		Included in other comprehensive income		Purchases		Sales		Transfers into Level 3(2)		Transfers out of Level 3(2)		Ending balance at December 31, 2020
Available-for-sale securities:
Corporate debt securities	$	8,324	$	(2)	$	(156)	$	7,180	$	(1,405)	$	10,526	$	(18,642)	$	5,825
Residential mortgage-backed securities	0		(19)		(48)		287		(1,539)		11,496		(9,240)		937
Commercial mortgage-backed securities	3,321		(183)		913		12,281		(2,334)		39,591		(34,127)		19,462
Collateralized debt obligations	0		0		3		247		0		0		(250)		0
Total available-for-sale securities	11,645		(204)		712		19,995		(5,278)		61,613		(62,259)		26,224
Nonredeemable preferred stock	0		151		0		2,836		0		0		(2,987)		0
Total Level 3 securities	$	11,645	$	(53)	$	712	$	22,831	$	(5,278)	$	61,613	$	(65,246)	$	26,224

Level 3 Assets – Year-to-Date Change:

(in thousands)	Beginning balance at December 31, 2018		Included in earnings(1)		Included in other comprehensive income		Purchases		Sales		Transfers into Level 3(2)		Transfers out of Level 3(2)		Ending balance at December 31, 2019
Available-for-sale securities:
Corporate debt securities	$	12,577	$	10	$	146	$	2,020	$	(7,415)	$	11,542	$	(10,556)	$	8,324
Residential mortgage-backed securities	0		4		15		921		(32)		0		(908)		0
Commercial mortgage-backed securities	0		(9)		(21)		478		(1,068)		7,281		(3,340)		3,321
Collateralized debt obligations	0		0		1		2,300		0		0		(2,301)		0
Total Level 3 available-for-sale securities	$	12,577	$	5	$	141	$	5,719	$	(8,515)	$	18,823	$	(17,105)	$	11,645

(1)    These amounts are reported as net investment income and net realized investment gains (losses) for each of the periods presented above.

(2)    Transfers into and/or (out) of Level 3 are primarily attributable to the availability of market observable information and the re-evaluation of the observability of pricing inputs.

Schedule of Financial Instruments Not Carried at Fair Value

The following table presents the carrying values and fair values of financial instruments categorized as Level 3 in the fair value hierarchy that are recorded at carrying value as of:

	December 31, 2020				December 31, 2019
(in thousands)	Carrying Value		Fair Value		Carrying Value		Fair Value
Agent loans (1)	$	69,212	$	73,854	$	67,696	$	71,602
Long-term borrowings (2)	96,113		113,054		98,080		101,888

(1)The discount rate used to calculate fair value at December 31, 2020 is reflective of an increase in the BB+ financial yield curve due to the market volatility resulting from the COVID-19 pandemic.

(2)The discount rate used to calculate fair value at December 31, 2020 is reflective of a decline in U.S. Treasury bond yields due to the market volatility resulting from the COVID-19 pandemic.