Fair Value (Tables)

9 Months Ended

Sep. 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 September 30, 2017:

Description	Total		Level 1		Level 2		Level 3

Fixed maturities:
Agency collateralized mortgage obligations	$	11,017	$	-	$	11,017	$	-
Agency mortgage-backed securities		19,712		-		19,712		-
Asset-backed securities		50,030		-		50,030		-
Bank loans		24,986		-		24,986		-
Certificates of deposit		3,138		3,138		-		-
Collateralized mortgage obligations		7,055		-		7,055		-
Corporate securities		160,716		-		160,558		158
Options embedded in convertible securities		5,078		-		5,078		-
Mortgage-backed securities		20,643		-		20,413		230
Municipal obligations		102,805		-		102,805		-
Non-U.S. government obligations		32,942		-		32,942		-
U.S. government obligations		51,484		-		51,484		-
Total fixed maturities		489,606		3,138		486,080		388
Equity securities:
Consumer		41,912		41,912		-		-
Energy		8,168		8,168		-		-
Financial		46,167		46,167		-		-
Industrial		23,971		23,971		-		-
Technology		11,826		11,826		-		-
Mutual fund		53,528		53,528		-		-
Other		8,595		8,595		-		-
Total equity securities		194,167		194,167		-		-
Short-term		1,000		1,000		-		-
Cash equivalents		64,153		-		64,153		-
Total	$	748,926	$	198,305	$	550,233	$	388

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 nine months ended September 30, 2017 and for the year ended December 31, 2016:

	2017			2016
Beginning of period balance	$	25,218		$	16,793
Total gains (realized or unrealized)
included in income		316			1,846
Purchases		81			5,540
Settlements		(8,950	)		(8,791	)
Transfers into Level 3		144			10,202
Transfers out of Level 3		(16,421	)		(372	)
End of period balance	$	388		$	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 September 30, 2017 and December 31, 2016 are as follows:

	Carrying		Fair Value
	Value		Level 1		Level 2		Level 3		Total

September 30, 2017
Assets: Limited partnerships	$	69,568	$	-	$	-	$	69,568	$	69,568
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