Fair Value (Tables)

12 Months Ended

Dec. 31, 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 December 31, 2016:

Description	Total		Level 1		Level 2		Level 3

Fixed maturities:
Agency collateralized mortgage obligations	$	6,171	$	-	$	6,171	$	-
Agency mortgage-backed securities		4,770		-		4,770		-
Asset-backed securities		45,183		-		37,919		7,264
Bank loans		10,349		-		-		10,349
Certificates of deposit		3,117		3,117		-		-
Collateralized mortgage obligations		9,104		-		6,409		2,695
Corporate securities		137,932		-		135,794		2,138
Options embedded in convertible securities		4,751		-		4,751		-
Mortgage-backed securities		24,571		-		22,206		2,365
Municipal obligations		129,335		-		129,190		145
Non-U.S. government obligations		24,681		-		24,419		262
U.S. government obligations		91,940		-		91,940		-
Total fixed maturities		491,904		3,117		463,569		25,218
Equity securities:
Consumer		32,576		32,576		-		-
Energy		12,842		12,842		-		-
Financial		31,186		30,943		243		-
Industrial		21,145		20,262		883		-
Technology		8,858		8,858		-		-
Mutual fund		6,995		-		6,995		-
Other		6,343		6,343		-		-
Total equity securities		119,945		111,824		8,121		-
Short term		1,500		1,500		-		-
Cash equivalents		59,683		-		59,683		-
Total	$	673,032	$	116,441	$	531,373	$	25,218

As of December 31, 2015:

Description	Total		Level 1		Level 2		Level 3

Fixed maturities:
Agency collateralized mortgage obligations	$	-	$	-	$	-	$	-
Agency mortgage-backed securities		3,157		-		3,157		-
Asset-backed securities		44,309		-		37,235		7,074
Bank loans		5,060		-		-		5,060
Certificates of deposit		3,230		-		3,230		-
Collateralized mortgage obligations		9,257		-		9,257		-
Corporate securities		108,116		-		105,108		3,008
Options embedded in convertible securities		2,395		-		2,395		-
Mortgage-backed securities		23,892		-		22,523		1,369
Municipal obligations		110,578		-		110,578		-
Non-U.S. government obligations		23,945		-		23,663		282
U.S. government obligations		103,245		-		103,245		-
Total fixed maturities		437,184		-		420,391		16,793
Equity securities:
Consumer		46,541		46,541		-		-
Energy		8,635		8,635		-		-
Financial		35,686		34,431		1,255		-
Industrial		24,841		24,274		567		-
Technology		11,596		11,596		-		-
Mutual fund		9,983		-		9,983		-
Other		8,216		8,216		-		-
Total equity securities		145,498		133,693		11,805		-
Short term		2,220		2,220		-		-
Cash equivalents		69,517		-		69,517		-
Total	$	654,419	$	135,913	$	501,713	$	16,793

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

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 years ended December 31:

	2016			2015
Beginning of period balance	$	16,793		$	12,208
Total gains or losses (realized)
included in income		1,846			(104	)
Purchases		5,540			2,284
Settlements		(8,791	)		(8,068	)
Transfers into Level 3		10,202			11,586
Transfers out of Level 3		(372	)		(1,113	)
End of period balance	$	25,218		$	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 sheet at December 31, 2016 and 2015 is as follows:

2016:	Carrying		Fair Value
	Value		Level 1			Level 2		Level 3		Total
Assets:
Limited partnerships	$	76,469		$	-	$	-	$	76,469	$	76,469

Liabilities:
Short-term borrowings		20,000			-		20,000		-		20,000

2015:
Assets:
Limited partnerships	$	75,458		$	-	$	-	$	75,458	$	75,458

Liabilities:
Short-term borrowings		20,000			-		20,000		-		20,000