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Fair Value Measurements (Tables) | 9 Months Ended
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Sep. 30, 2018
Fair Value Disclosures [Abstract] |
Fair value measurements for items measured at fair value | Assets measured at fair value, by hierarchy level, as of September 30, 2018 and December 31, 2017 are shown in tables 8.1a and 8.1b below. The fair value of the assets is estimated using the process described above, and more fully in Note 3 - “Significant Accounting Policies” of the notes to the consolidated financial statements in our 2017 Annual Report on Form 10-K.
| Table | 8.1a |  |  |  |  |  |  |  |
Fair value hierarchy - current year |  |  | September 30, 2018
(In thousands) |  | Total Fair Value |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
| U.S. Treasury securities and obligations of U.S. government corporations and agencies |  | $ | 176,216 |  |  | $ | 29,584 |  |  | $ | 146,632 |  |  | $ | — |
| Obligations of U.S. states and political subdivisions |  | 1,734,606 |  |  | — |  |  | 1,734,529 |  |  | 77 |
| Corporate debt securities |  | 2,255,065 |  |  | — |  |  | 2,255,065 |  |  | — |
| ABS |  | 70,935 |  |  | — |  |  | 70,935 |  |  | — |
| RMBS |  | 154,963 |  |  | — |  |  | 154,963 |  |  | — |
| CMBS |  | 270,220 |  |  | — |  |  | 270,220 |  |  | — |
| CLOs |  | 307,607 |  |  | — |  |  | 307,607 |  |  | — |
| Total fixed income securities |  | 4,969,612 |  |  | 29,584 |  |  | 4,939,951 |  |  | 77 |
| Equity securities |  | 7,720 |  |  | 2,889 |  |  | — |  |  | 4,831 |
| Total investments at fair value |  | $ | 4,977,332 |  |  | $ | 32,473 |  |  | $ | 4,939,951 |  |  | $ | 4,908 |
| Real estate acquired (1) |  | $ | 12,339 |  |  | $ | — |  |  | $ | — |  |  | $ | 12,339 |
| Table | 8.1b |  |  |  |  |  |  |  |
Fair value hierarchy - prior year-end |  |  | December 31, 2017
(In thousands) |  | Total Fair Value |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
| U.S. Treasury securities and obligations of U.S. government corporations and agencies |  | $ | 178,846 |  |  | $ | 81,598 |  |  | $ | 97,248 |  |  | $ | — |
| Obligations of U.S. states and political subdivisions |  | 2,152,524 |  |  | — |  |  | 2,152,253 |  |  | 271 |
| Corporate debt securities |  | 2,066,838 |  |  | — |  |  | 2,066,838 |  |  | — |
| ABS |  | 4,923 |  |  | — |  |  | 4,923 |  |  | — |
| RMBS |  | 181,849 |  |  | — |  |  | 181,849 |  |  | — |
| CMBS |  | 297,312 |  |  | — |  |  | 297,312 |  |  | — |
| CLOs |  | 101,023 |  |  | — |  |  | 101,023 |  |  | — |
| Total fixed income securities |  | 4,983,315 |  |  | 81,598 |  |  | 4,901,446 |  |  | 271 |
| Equity securities (2) |  | 7,246 |  |  | 2,978 |  |  | — |  |  | 4,268 |
| Total investments at fair value |  | $ | 4,990,561 |  |  | $ | 84,576 |  |  | $ | 4,901,446 |  |  | $ | 4,539 |
| Real estate acquired (1) |  | $ | 12,713 |  |  | $ | — |  |  | $ | — |  |  | $ | 12,713 |
(1) | Real estate acquired through claim settlement, which is held for sale, is reported in Other assets on the consolidated balance sheets.
(2) | Equity securities in Level 3 are carried at cost, which approximates fair value. See “Reconciliations of Level 3 assets” below for information regarding a change in presentation of amounts previously included in Level 3 Equity securities.
Reconciliation of beginning and ending balance for assets and liabilities measured at fair value with significant unobservable inputs (level 3) | For assets measured at fair value using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances for the three and nine months ended September 30, 2018 and 2017 is shown in tables 8.2a and 8.2b and 8.3a and 8.3b below. As described in Note 2 - “New Accounting Pronouncements,” under updated guidance regarding the Recognition and Measurement of Financial Assets and Financial Liabilities which became effective on January 1, 2018, our investment in FHLB stock is no longer presented with equity securities. Prior to the updated guidance, our FHLB stock was included in our Level 3 equity securities. As shown in table 8.3a below, for the nine months ended September 30, 2018, we have transferred our FHLB stock out of Level 3 assets, and it is carried at cost, which approximates fair value, on our consolidated balance sheet in “Other invested assets” as of September 30, 2018. There were no losses included in earnings for those periods attributable to the change in unrealized losses on assets still held at the end of the applicable period.
| Table | 8.2a |  |  |  |  |  |  |  |
Development of assets and liabilities classified within level 3 - current year quarter |  |  | Three Months Ended September 30, 2018
(In thousands) |  | Debt Securities |  | Equity Securities |  | Total Investments |  | Real Estate Acquired
Balance at June 30, 2018 |  | $ | 192 |  |  | $ | 1,168 |  |  | $ | 1,360 |  |  | $ | 13,321 |
Total realized gains (losses): |  |  |  |  |  |  |  |  |  |  |  |
| Included in earnings and reported as net realized investment gains |  | — |  |  | 3,663 |  |  | 3,663 |  |  | — |
| Included in earnings and reported as losses incurred, net |  | — |  |  | — |  |  | — |  |  | (450 | )
| Purchases |  | — |  |  | — |  |  | — |  |  | 7,979 |
| Sales |  | (115 | ) |  | — |  |  | (115 | ) |  | (8,511 | )
| Balance at September 30, 2018 |  | $ | 77 |  |  | $ | 4,831 |  |  | $ | 4,908 |  |  | $ | 12,339 |
| Table | 8.2b |  |  |  |  |  |  |  |
Development of assets and liabilities classified within level 3 - prior year quarter |  |  | Three Months Ended September 30, 2017
(In thousands) |  | Debt Securities |  | Equity Securities |  | Total Investments |  | Real Estate Acquired
Balance at June 30, 2017 |  | $ | 577 |  |  | $ | 4,268 |  |  | $ | 4,845 |  |  | $ | 10,271 |
Total realized gains (losses): |  |  |  |  |  |  |  |  |  |  |  |
| Included in earnings and reported as losses incurred, net |  | — |  |  | — |  |  | — |  |  | (592 | )
| Purchases |  | — |  |  | — |  |  | — |  |  | 8,881 |
| Sales |  | (197 | ) |  | — |  |  | (197 | ) |  | (6,832 | )
| Balance at September 30, 2017 |  | $ | 380 |  |  | $ | 4,268 |  |  | $ | 4,648 |  |  | $ | 11,728 |
| Table | 8.3a |  |  |  |  |  |  |  |
Development of assets and liabilities classified within level 3 - current year to date |  |  | Nine Months Ended September 30, 2018
(In thousands) |  | Debt Securities |  | Equity Securities |  | Total Investments |  | Real Estate Acquired
Balance at December 31, 2017 |  | $ | 271 |  |  | $ | 4,268 |  |  | $ | 4,539 |  |  | $ | 12,713 |
Transfers out of Level 3 |  | — |  |  | (3,100 | ) |  | (3,100 | ) |  | — |
| Total realized gains (losses): |  |  |  |  |  |  |  |  |  |  |  |
| Included in earnings and reported as net realized investment gains |  | — |  |  | 3,663 |  |  | 3,663 |  |  | — |
| Included in earnings and reported as losses incurred, net |  | — |  |  | — |  |  | — |  |  | (1,104 | )
| Purchases |  | — |  |  | — |  |  | — |  |  | 24,742 |
| Sales |  | (194 | ) |  | — |  |  | (194 | ) |  | (24,012 | )
| Balance at September 30, 2018 |  | $ | 77 |  |  | $ | 4,831 |  |  | $ | 4,908 |  |  | $ | 12,339 |
| Table | 8.3b |  |  |  |  |  |  |  |
Development of assets and liabilities classified within level 3 - prior year to date |  |  | Nine Months Ended September 30, 2017
(In thousands) |  | Debt Securities |  | Equity Securities |  | Total Investments |  | Real Estate Acquired
Balance at December 31, 2016 |  | $ | 691 |  |  | $ | 4,268 |  |  | $ | 4,959 |  |  | $ | 11,748 |
Total realized gains (losses): |  |  |  |  |  |  |  |  |  |  |  |
| Included in earnings and reported as losses incurred, net |  | — |  |  | — |  |  | — |  |  | (818 | )
| Purchases |  | — |  |  | — |  |  | — |  |  | 26,985 |
| Sales |  | (311 | ) |  | — |  |  | (311 | ) |  | (26,187 | )
| Balance at September 30, 2017 |  | $ | 380 |  |  | $ | 4,268 |  |  | $ | 4,648 |  |  | $ | 11,728 |
Carrying value and fair value of debt | Table 8.4 presents the carrying value and fair value of our financial liabilities disclosed, but not carried, at fair value at September 30, 2018 and December 31, 2017. The fair values of our 5.75% Senior Notes and 9% Convertible Junior Subordinated Debentures were based on observable market prices. The fair value of the FHLB Advance was estimated using cash flows discounted at current incremental borrowing rates for similar borrowing arrangements. In all cases the fair values of the financial liabilities below are categorized as Level 2.
| Table | 8.4 |  |  |  |  |  |  |  |
Fair value measurements - liabilities |  |  | September 30, 2018 |  | December 31, 2017
(In thousands) |  | Carrying Value |  | Fair Value |  | Carrying Value |  | Fair Value
FHLB Advance |  | $ | 155,000 |  |  | $ | 148,288 |  |  | $ | 155,000 |  |  | $ | 152,124 |
| 5.75% Senior Notes |  | 419,425 |  |  | 445,430 |  |  | 418,560 |  |  | 465,473 |
| 9% Convertible Junior Subordinated Debentures |  | 256,872 |  |  | 347,458 |  |  | 256,872 |  |  | 353,507 |
| Total financial liabilities |  | $ | 831,297 |  |  | $ | 941,176 |  |  | $ | 830,432 |  |  | $ | 971,104 |

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- Definition Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19190-110258 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19279-110258 + Details
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- Definition Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=77997519&loc=d3e13476-108611 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=77997519&loc=d3e13467-108611 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 45 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=75026489&loc=d3e13220-108610 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=75031198&loc=d3e14172-108612 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=77997519&loc=d3e13433-108611 + Details
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