Fair Value (Tables)

9 Months Ended

Sep. 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 September 30, 2015:

Description	Total		Level 1		Level 2		Level 3
Fixed maturities:
U.S. government obligations	$	110,095	$	-	$	110,095	$	-
Residential mortgage-backed securities		5,116		-		5,116		-
Commercial mortgage-backed securities		29,601		-		29,131		470
State and municipal obligations		114,304		-		114,304		-
Corporate securities		160,087		-		154,436		5,651
Options embedded in convertible securities		2,207		-		2,207		-
Foreign government obligations		21,209		-		20,925		284
Total fixed maturities		442,619		-		436,214		6,405
Equity securities:
Financial institutions		20,161		20,161		-		-
Industrial & miscellaneous		122,353		122,353		-		-
Total equity securities		142,514		142,514		-		-
Short-term		2,220		2,220		-		-
Cash equivalents		59,882		-		59,882		-
	$	647,235	$	144,734	$	496,096	$	6,405

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 nine months ended September 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		47			-
Purchases		2,163			-
Settlements		(8,027	)		-
Transfers into level 3		995			12,208
Transfers out of level 3		(981	)		-
End of period balance	$	6,405		$	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 September 30, 2015 and December 31, 2014 are as follows:

	Carrying		Fair Value
	Value		Level 1		Level 2		Level 3		Total

September 30, 2015
Assets: Limited partnerships	$	74,702	$	-	$	-	$	74,702	$	74,702
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