Fair Value (Tables)

6 Months Ended

Jun. 30, 2023

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: 

	June 30, 2023
(in thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities:
Corporate debt securities	$	569,111	$	0	$	563,988	$	5,123
Collateralized debt obligations	106,921		0		106,921		0
Commercial mortgage-backed securities	70,970		0		64,437		6,533
Residential mortgage-backed securities	158,375		0		158,363		12
Other debt securities	15,575		0		15,575		0
Total available-for-sale securities	920,952		0		909,284		11,668
Equity securities:
Financial services sector	62,475		826		57,419		4,230
Utilities sector	7,408		0		7,408		0
Energy sector	4,113		0		4,113		0
Consumer sector	2,561		0		2,561		0
Technology sector	500		0		0		500
Industrial sector	163		0		163		0
Total equity securities	77,220		826		71,664		4,730
Total	$	998,172	$	826	$	980,948	$	16,398

	December 31, 2022
(in thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities:
Corporate debt securities	$	553,382	$	0	$	549,696	$	3,686
Collateralized debt obligations	102,537		0		102,537		0
Commercial mortgage-backed securities	66,054		0		55,144		10,910
Residential mortgage-backed securities	150,415		0		146,231		4,184
Other debt securities	22,273		0		22,273		0
Total available-for-sale securities	894,661		0		875,881		18,780
Equity securities:
Financial services sector	61,084		0		57,305		3,779
Utilities sector	5,708		0		5,708		0
Energy sector	3,576		0		3,576		0
Consumer sector	1,854		0		1,854		0
Communications sector	338		0		338		0
Total equity securities	72,560		0		68,781		3,779
Total	$	967,221	$	0	$	944,662	$	22,559

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

Level 3 Assets – 2023 Quarterly Change:

(in thousands)	Beginning balance at March 31, 2023		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 June 30, 2023
Available-for-sale securities:
Corporate debt securities	$	4,503	$	14	$	37	$	779	$	(100)	$	1,655	$	(1,765)	$	5,123
Commercial mortgage-backed securities	6,415		(169)		(117)		866		(185)		329		(606)		6,533
Residential mortgage-backed securities	33		0		0		0		(21)		0		0		12
Total available-for-sale securities	10,951		(155)		(80)		1,645		(306)		1,984		(2,371)		11,668
Equity securities	4,699		31		0		0		0		0		0		4,730
Total Level 3 securities	$	15,650	$	(124)	$	(80)	$	1,645	$	(306)	$	1,984	$	(2,371)	$	16,398

Level 3 Assets – 2023 Year-to-Date Change:

(in thousands)	Beginning balance at December 31, 2022		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 June 30, 2023
Available-for-sale securities:
Corporate debt securities	$	3,686	$	(14)	$	122	$	1,532	$	(745)	$	3,153	$	(2,611)	$	5,123
Commercial mortgage-backed securities	10,910		(360)		100		1,455		(185)		466		(5,853)		6,533
Residential mortgage-backed securities	4,184		(5)		96		0		(108)		33		(4,188)		12
Total available-for-sale securities	18,780		(379)		318		2,987		(1,038)		3,652		(12,652)		11,668
Equity securities	3,779		(7)		0		958		0		0		0		4,730
Total Level 3 securities	$	22,559	$	(386)	$	318	$	3,945	$	(1,038)	$	3,652	$	(12,652)	$	16,398

Level 3 Assets – 2022 Quarterly Change:

(in thousands)	Beginning balance at March 31, 2022		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 June 30, 2022
Available-for-sale securities:
Corporate debt securities	$	10,927	$	(8)	$	(334)	$	950	$	(2,611)	$	2,225	$	(5,040)	$	6,109
Commercial mortgage-backed securities	10,597		(588)		181		0		(2,665)		2,875		(1,529)		8,871
Residential mortgage-backed securities	212		(1)		2		4,887		(91)		37,540		0		42,549
Total available-for-sale securities	21,736		(597)		(151)		5,837		(5,367)		42,640		(6,569)		57,529
Equity securities	2,017		(151)		0		0		0		0		0		1,866
Total Level 3 securities	$	23,753	$	(748)	$	(151)	$	5,837	$	(5,367)	$	42,640	$	(6,569)	$	59,395

Level 3 Assets – 2022 Year-to-Date Change:

(in thousands)	Beginning balance at December 31, 2021		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 June 30, 2022
Available-for-sale securities:
Corporate debt securities	$	5,256	$	5	$	(389)	$	4,934	$	(3,119)	$	5,774	$	(6,352)	$	6,109
Commercial mortgage-backed securities	15,728		(704)		(658)		0		(3,165)		4,335		(6,665)		8,871
Residential mortgage-backed securities	8,814		24		(334)		4,887		(2,846)		37,540		(5,536)		42,549
Total available-for-sale securities	29,798		(675)		(1,381)		9,821		(9,130)		47,649		(18,553)		57,529
Equity securities	2,083		(217)		0		0		0		0		0		1,866
Total Level 3 securities	$	31,881	$	(892)	$	(1,381)	$	9,821	$	(9,130)	$	47,649	$	(18,553)	$	59,395

(1)These amounts are reported as net investment income and net realized and unrealized 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:

	June 30, 2023				December 31, 2022
(in thousands)	Carrying value		Fair value		Carrying value		Fair value
Agent loans (1)	$	68,903	$	60,249	$	69,476	$	62,954

(1)The discount rate used to calculate fair value at June 30, 2023 is reflective of an increase in the BB+ financial yield curve from December 31, 2022.