Fair Value (Tables)

6 Months Ended

Jun. 30, 2017

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 June 30, 2017:

Description	Total		Level 1		Level 2		Level 3

Fixed maturities:
Agency collateralized mortgage obligations	$	7,927	$	-	$	7,927	$	-
Agency mortgage-backed securities		15,852		-		15,852		-
Asset-backed securities		41,543		-		37,748		3,795
Bank loans		21,557		-		-		21,557
Certificates of deposit		3,127		3,127		-		-
Collateralized mortgage obligations		6,590		-		5,593		997
Corporate securities		146,521		-		145,695		826
Options embedded in convertible securities		5,153		-		5,153		-
Mortgage-backed securities		23,962		-		22,141		1,821
Municipal obligations		112,717		-		112,503		214
Non-U.S. government obligations		27,095		3,261		23,834		-
U.S. government obligations		56,971		-		56,971		-
Total fixed maturities		469,015		6,388		433,417		29,210
Equity securities:
Consumer		43,293		43,293		-		-
Energy		7,630		7,630		-		-
Financial		43,169		43,169		-		-
Industrial		29,069		28,093		976		-
Technology		9,507		9,507		-		-
Mutual fund		48,492		48,492		-		-
Other		6,757		6,757		-		-
Total equity securities		187,917		186,941		976		-
Short term		1,500		1,500		-		-
Cash equivalents		77,298		-		77,298		-
Total	$	735,730	$	194,829	$	511,691	$	29,210

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

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, 2017 and for the year ended December 31, 2016:

	2017			2016
Beginning of period balance	$	25,218		$	16,793
Total gains or losses (realized or unrealized)
included in income		443			1,846
Purchases		16,857			5,540
Settlements		(12,847	)		(8,791	)
Transfers into Level 3		148			10,202
Transfers out of Level 3		(609	)		(372	)
End of period balance	$	29,210		$	25,218

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 condensed consolidated balance sheets at June 30, 2017 and December 31, 2016 are as follows:

	Carrying		Fair Value
	Value		Level 1		Level 2		Level 3		Total

June 30, 2017
Assets: Limited partnerships	$	67,087	$	-	$	-	$	67,087	$	67,087
Liabilities: Short-term borrowings		20,000		-		20,000		-		20,000

December 31, 2016
Assets: Limited partnerships		76,469		-		-		76,469		76,469
Liabilities: Short-term borrowings		20,000		-		20,000		-		20,000