Fair Value (Tables)

12 Months Ended

Dec. 31, 2018

Fair Value Measurements by Level for Assets Measured at Fair Value on 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, 2018:

Description	Total		Level 1		Level 2		Level 3
Fixed income securities:
Agency collateralized mortgage obligations	$	10,687	$	–	$	10,687	$	–
Agency mortgage-backed securities		37,385		–		37,385		–
Asset-backed securities		64,422		–		64,422		–
Bank loans		9,750		–		9,750		–
Certificates of deposit		2,835		2,835		–		–
Collateralized mortgage obligations		5,423		–		5,423		–
Corporate securities		186,651		–		186,651		–
Options embedded in convertible securities		3,799		–		3,799		–
Mortgage-backed securities		38,540		–		38,540		–
Municipal obligations		29,155		–		29,155		–
Non-U.S. government obligations		25,180		–		25,180		–
U.S. government obligations		178,818		–		178,818		–
Total fixed income securities		592,645		2,835		589,810		–
Equity securities:
Consumer		17,945		17,945		–		–
Energy		3,179		3,179		–		–
Financial		25,253		25,253		–		–
Industrial		6,920		6,920		–		–
Technology		2,303		2,303		–		–
Funds (e.g. mutual funds, closed end funds, ETFs)		5,489		5,489		–		–
Other		5,333		5,333		–		–
Total equity securities		66,422		66,422		–		–
Short-term		1,000		1,000		–		–
Cash equivalents		156,855		–		156,855		–
Total	$	816,922	$	70,257	$	746,665	$	–

As of December 31, 2017:

Description	Total		Level 1		Level 2		Level 3
Fixed income securities:
Agency collateralized mortgage obligations	$	16,586	$	–	$	16,586	$	–
Agency mortgage-backed securities		27,075		–		27,075		–
Asset-backed securities		43,469		–		43,469		–
Bank loans		19,488		–		19,488		–
Certificates of deposit		3,135		3,135		–		–
Collateralized mortgage obligations		6,492		–		6,492		–
Corporate securities		193,058		–		193,058		–
Options embedded in convertible securities		5,291		–		5,291		–
Mortgage-backed securities		24,204		–		24,204		–
Municipal obligations		96,650		–		96,650		–
Non-U.S. government obligations		37,394		–		37,394		–
U.S. government obligations		49,011		–		49,011		–
Total fixed income securities		521,853		3,135		518,718		–
Equity securities:
Consumer		46,578		46,578		–		–
Energy		10,278		10,278		–		–
Financial		45,470		45,470		–		–
Industrial		25,402		25,402		–		–
Technology		13,061		13,061		–		–
Funds (e.g. mutual funds, closed end funds, ETFs)		50,291		45,276		5,015		–
Other		10,683		10,683		–		–
Total equity securities		201,763		196,748		5,015		–
Short-term		1,000		1,000		–		–
Cash equivalents		59,173		–		59,173		–
Total	$	783,789	$	200,883	$	582,906	$	–

Reconciliation of Beginning and Ending Balances of Assets Measured at Fair Value on 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 years ended December 31:

	2018		2017
Beginning of period balance	$	–	$	25,218
Total gains or losses (realized) included in income		–		406
Purchases		–		81
Settlements		–		(9,123	)
Transfers into Level 3		–		144
Transfers out of Level 3		–		(16,726	)
End of period balance	$	–	$	–

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 December 31, 2018 and 2017 is as follows:

2018:	Carrying		Fair Value
	Value		Level 1		Level 2		Level 3		Total
Assets:
Limited partnerships	$	55,044	$	–	$	–	$	55,044	$	55,044
Commercial mortgage loans		6,672		–		–		6,672		6,672
Liabilities:
Short-term borrowings		20,000		–		20,000		–		20,000

2017:
Assets:
Limited partnerships	$	70,806	$	–	$	–	$	70,806	$	70,806
Commercial mortgage loans		–		–		–		–		–
Liabilities:
Short-term borrowings		20,000		–		20,000		–		20,000