Fair Value (Tables)

6 Months Ended

Jun. 30, 2015

Fair value measurements by level for assets measured at fair value on a recurring basis

Assets and liabilities recorded at fair value in the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The following tables summarize fair value measurements by level for assets measured at fair value on a recurring basis:

As of June 30, 2015:

Description	Total		Level 1		Level 2		Level 3
Fixed maturities:
U.S. government obligations	$	119,957	$	-	$	119,957	$	-
Residential mortgage-backed securities		5,676		-		5,676		-
Commercial mortgage-backed securities		32,695		-		31,149		1,546
State and municipal obligations		109,020		-		109,020		-
Corporate securities		144,157		-		138,569		5,588
Options embedded in convertible securities		2,683		-		2,683		-
Foreign government obligations		22,094		-		22,094		-
Total fixed maturities		436,282		-		429,148		7,134
Equity securities:
Financial institutions		25,324		25,324		-		-
Industrial & miscellaneous		147,312		147,312		-		-
Total equity securities		172,636		172,636		-		-
Short-term		2,219		2,219		-		-
Cash equivalents		53,395		-		53,395		-
	$	664,532	$	174,855	$	482,543	$	7,134

As of December 31, 2014:

Description	Total		Level 1		Level 2		Level 3
Fixed maturities:
U.S. government obligations	$	101,094	$	-	$	101,094	$	-
Residential mortgage-backed securities		6,066		-		6,066		-
Commercial mortgage-backed securities		36,440		-		36,440		-
State and municipal obligations		113,777		-		113,777		-
Corporate securities		164,068		-		151,860		12,208
Options embedded in convertible securities		2,898		-		2,898		-
Foreign government obligations		27,466		-		27,466		-
Total fixed maturities		451,809		-		439,601		12,208
Equity securities:
Financial institutions		25,343		25,343		-		-
Industrial & miscellaneous		136,764		136,764		-		-
Total equity securities		162,107		162,107		-		-
Short-term		2,966		2,966		-		-
Cash equivalents		59,309		-		59,309		-
	$	676,191	$	165,073	$	498,910	$	12,208

Reconciliation of beginning and ending balances of assets measured at fair value on a recurring basis using level 3 inputs

A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using Level 3 inputs is as follows for the six months ended June 30, 2015 and for the year ended December 31, 2014:

	2015			2014
Beginning of period balance	$	12,208		$	-
Total gains or losses (realized or unrealized)
included in income		59			-
Purchases		2,123			-
Settlements		(7,282	)		-
Transfers into level 3		26			12,208
End of period balance	$	7,134		$	12,208

Summary of the carrying value and fair value by level of financial instruments

A summary of the carrying value and fair value by level of financial instruments not recorded at fair value on the Company's consolidated balance sheets at June 30, 2015 and December 31, 2014 are as follows:

	Carrying		Fair Value
	Value		Level 1		Level 2		Level 3		Total

June 30, 2015
Assets: Limited partnerships	$	81,171	$	-	$	-	$	81,171	$	81,171
Liabilities: Short-term borrowings		20,000		-		20,000		-		20,000

December 31, 2014
Assets: Limited partnerships		81,230		-		-		81,230		81,230
Liabilities: Short-term borrowings		20,000		-		20,000		-		20,000