Fair Value (Tables)

9 Months Ended

Sep. 30, 2016

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

The following tables summarize fair value measurements by level for assets measured at fair value on a recurring basis:

As of September 30, 2016:

Description	Total		Level 1		Level 2		Level 3
Fixed maturities:
U.S. government obligations	$	96,573	$	-	$	96,573	$	-
Residential mortgage-backed securities		5,608		-		3,874		1,734
Commercial mortgage-backed securities		29,809		-		28,418		1,391
State and municipal obligations		131,697		-		131,697		-
Corporate securities		194,033		-		178,588		15,445
Options embedded in convertible securities		3,644		-		3,644		-
Foreign government obligations		24,773		-		24,493		280
Total fixed maturities		486,137		-		467,287		18,850
Equity securities:
Financial institutions		20,251		20,251		-		-
Industrial & miscellaneous		114,203		114,203		-		-
Total equity securities		134,454		134,454		-		-
Short-term		1,500		1,500		-		-
Cash equivalents		62,812		-		62,812		-
	$	684,903	$	135,954	$	530,099	$	18,850

As of December 31, 2015:

Description	Total		Level 1		Level 2		Level 3
Fixed maturities:
U.S. government obligations	$	103,245	$	-	$	103,245	$	-
Residential mortgage-backed securities		4,776		-		4,776		-
Commercial mortgage-backed securities		30,595		-		29,226		1,369
State and municipal obligations		110,578		-		110,578		-
Corporate securities		161,630		-		146,488		15,142
Options embedded in convertible securities		2,395		-		2,395		-
Foreign government obligations		23,965		-		23,683		282
Total fixed maturities		437,184		-		420,391		16,793
Equity securities:
Financial institutions		21,694		21,694		-		-
Industrial & miscellaneous		123,804		123,804		-		-
Total equity securities		145,498		145,498		-		-
Short-term		2,220		2,220		-		-
Cash equivalents		69,517		-		69,517		-
	$	654,419	$	147,718	$	489,908	$	16,793

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, 2016 and for the year ended December 31, 2015:

	2016			2015
Beginning of period balance	$	16,793		$	12,208
Total gains or losses (realized or unrealized)
included in income		(2,270	)		(104	)
Purchases		3,124			2,284
Settlements		(5,290	)		(8,068	)
Transfers into Level 3		6,869			11,586
Transfers out of Level 3		(376	)		(1,113	)
End of period balance	$	18,850		$	16,793

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, 2016 and December 31, 2015 are as follows:

	Carrying		Fair Value
	Value		Level 1		Level 2		Level 3		Total

September 30, 2016
Assets: Limited partnerships	$	77,197	$	-	$	-	$	77,197	$	77,197
Liabilities: Short-term borrowings		20,000		-		20,000		-		20,000

December 31, 2015
Assets: Limited partnerships		75,458		-		-		75,458		75,458
Liabilities: Short-term borrowings		20,000		-		20,000		-		20,000