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Fair Value Measurements (Tables) | 12 Months Ended
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Dec. 31, 2019
Fair Value Disclosures [Abstract] |
Fair value measurements for items measured at fair value | Assets carried at fair value included those listed, by hierarchy level, in the following tables as of December 31, 2019 and 2018:
Assets carried at fair value by hierarchy level as of December 31, 2019
Table | 6.1a |  |  |  |  |  |  |  |
(In thousands) |  | 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 |  | $ | 196,203 |  |  | $ | 34,240 |  |  | $ | 161,963 |  |  | $ | — |
Obligations of U.S. states and political subdivisions |  | 1,653,865 |  |  | — |  |  | 1,653,865 |  |  | — |
Corporate debt securities |  | 2,785,122 |  |  | — |  |  | 2,785,122 |  |  | — |
ABS |  | 229,664 |  |  | — |  |  | 229,664 |  |  | — |
RMBS |  | 268,586 |  |  | — |  |  | 268,586 |  |  | — |
CMBS |  | 278,986 |  |  | — |  |  | 278,986 |  |  | — |
CLOs |  | 325,466 |  |  | — |  |  | 325,466 |  |  | — |
Total fixed income securities |  | 5,737,892 |  |  | 34,240 |  |  | 5,703,652 |  |  | — |
Equity securities |  | 17,328 |  |  | 17,328 |  |  | — |  |  | — |
Other (1) |  | 164,693 |  |  | 164,693 |  |  | — |  |  | — |
Real estate acquired (2) |  | 7,252 |  |  | — |  |  | — |  |  | 7,252 |
Total |  | $ | 5,927,165 |  |  | $ | 216,261 |  |  | $ | 5,703,652 |  |  | $ | 7,252 |
Assets carried at fair value by hierarchy level as of December 31, 2018
Table | 6.1b |  |  |  |  |  |  |  |
(In thousands) |  | 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 |  | $ | 167,176 |  |  | $ | 42,264 |  |  | $ | 124,912 |  |  | $ | — |
Obligations of U.S. states and political subdivisions |  | 1,720,100 |  |  | — |  |  | 1,720,087 |  |  | 13 |
Corporate debt securities |  | 2,400,762 |  |  | — |  |  | 2,400,762 |  |  | — |
ABS |  | 112,033 |  |  | — |  |  | 112,033 |  |  | — |
RMBS |  | 178,961 |  |  | — |  |  | 178,961 |  |  | — |
CMBS |  | 267,660 |  |  | — |  |  | 267,660 |  |  | — |
CLOs |  | 305,295 |  |  | — |  |  | 305,295 |  |  | — |
Total fixed income securities |  | 5,151,987 |  |  | 42,264 |  |  | 5,109,710 |  |  | 13 |
Equity securities (3) |  | 3,932 |  |  | 3,932 |  |  | — |  |  | — |
Other (1) |  | 96,403 |  |  | 96,403 |  |  | — |  |  | — |
Real estate acquired (2) |  | 14,535 |  |  | — |  |  | — |  |  | 14,535 |
Total |  | $ | 5,266,857 |  |  | $ | 142,599 |  |  | $ | 5,109,710 |  |  | $ | 14,548 |
(1) | Consists of money market funds included in "Cash and Cash Equivalents" and "Restricted Cash and Cash Equivalents" on the consolidated balance sheet.
(2) | Real estate acquired through claim settlement, which is held for sale, is reported in "Other assets" on the consolidated balance sheets.
(3) See "Reconciliation 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 and liabilities measured at fair value using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances for the years ended December 31, 2019, 2018, and 2017 is shown in tables 6.2a, 6.2b and 6.2c below. 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, the FHLB stock was included in our Level 3 equity securities. As shown in table 6.2b below, for the year ended December 31, 2018, we have transferred the 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 December 31, 2018. There were no transfers into or out of Level 3 for the years ending December 31, 2019 and 2017. There were no losses included in earnings for the years ended December 31, 2019, 2018, and 2017 attributable to the change in unrealized losses on assets still held at the end of each applicable year.
Fair value roll-forward for financial instruments classified as Level 3 for the year ended December 31, 2019
Table | 6.2a |  |  |  |  |  |  |  |
(In thousands) |  | Debt Securities |  | Equity Securities |  | Total Investments |  | Real Estate Acquired
Balance at December 31, 2018 |  | $ | 13 |  |  | $ | — |  |  | $ | 13 |  |  | $ | 14,535 |
Total realized/unrealized gains (losses): |  |  |  |  |  |  |  |
Included in earnings and reported as losses incurred, net |  | — |  |  | — |  |  | — |  |  | (476 | )
Acquisitions |  | — |  |  | — |  |  | — |  |  | 24,204 |
Sales |  | (13 | ) |  | — |  |  | (13 | ) |  | (31,011 | )
Balance at December 31, 2019 |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 7,252 |
Fair value roll-forward for financial instruments classified as Level 3 for the year ended December 31, 2018
Table | 6.2b |  |  |  |  |  |  |  |
(In thousands) |  | Debt Securities |  | Equity Securities |  | Total Investments |  | Real Estate Acquired
Balance at December 31, 2017 |  | $ | 271 |  |  | $ | 4,268 |  |  | $ | 4,539 |  |  | $ | 12,713 |
Reclassification for adoption of new accounting standard |  | — |  |  | (3,100 | ) |  | (3,100 | ) |  |
Total realized/unrealized 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 |  | — |  |  | — |  |  | — |  |  | (1,995 | )
Acquisitions |  | — |  |  | — |  |  | — |  |  | 33,912 |
Sales |  | (258 | ) |  | (4,831 | ) |  | (5,089 | ) |  | (30,095 | )
Balance at December 31, 2018 |  | $ | 13 |  |  | $ | — |  |  | $ | 13 |  |  | $ | 14,535 |
Fair value roll-forward for financial instruments classified as Level 3 for the year ended December 31, 2017
Table | 6.2c |  |  |  |  |  |  |  |
(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/unrealized gains (losses): |  |  |  |  |  |  |  |
Included in earnings and reported as losses incurred, net |  | — |  |  | — |  |  | — |  |  | (1,315 | )
Acquisitions |  | — |  |  | — |  |  | — |  |  | 34,749 |
Sales |  | (420 | ) |  | — |  |  | (420 | ) |  | (32,469 | )
Balance at December 31, 2017 |  | $ | 271 |  |  | $ | 4,268 |  |  | $ | 4,539 |  |  | $ | 12,713 |
Schedule of carrying value and fair value of financial liabilities measured on a recurring basis | Table 6.3 compares the carrying value and fair value of our financial liabilities disclosed, but not carried, at fair value as of December 31, 2019 and 2018.
Financial liabilities not carried at fair value
Table | 6.3 |  |  |  |  |  |  |  |
|  | December 31, 2019 |  | December 31, 2018
(In thousands) |  | Carrying Value |  | Fair Value |  | Carrying Value |  | Fair Value
Financial assets |  |  |  |  |  |  |  |
Other invested assets |  | $ | 3,100 |  |  | $ | 3,100 |  |  | $ | 3,100 |  |  | $ | 3,100 |
Financial liabilities |  |  |  |  |  |  |  |
FHLB Advance |  | $ | 155,000 |  |  | $ | 156,422 |  |  | $ | 155,000 |  |  | $ | 150,551 |
5.75% Notes |  | 420,867 |  |  | 471,827 |  |  | 419,713 |  |  | 425,791 |
9% Debentures |  | 256,872 |  |  | 346,289 |  |  | 256,872 |  |  | 338,069 |
Total financial liabilities |  | $ | 832,739 |  |  | $ | 974,538 |  |  | $ | 831,585 |  |  | $ | 914,411 |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
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