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Note 5 - Fair Value of Financial Instruments - Level 1 (Notes) | 12 Months Ended
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Dec. 31, 2020
Fair Value Disclosures [Abstract] |
Fair Value Disclosures [Text Block] | Fair Value of Financial Instruments The following tables include a list of assets that are measured at fair value by hierarchy level as of December 31, 2020 and 2019.
(In thousands) |  | Level I |  | Level II |  | Level III |  | Total |
Assets at fair value as of December 31, 2020 |  |  |  |  |  |  |  |  |
Investments: |  |  |  |  |  |  |  |  |
Fixed-maturities available for sale: |  |  |  |  |  |  |  |  |
U.S. government and agency securities |  | $ | 140,034 |  |  | $ | 29,189 |  |  | $ | — |  |  | $ | 169,223 |  |
State and municipal obligations |  | — |  |  | 165,271 |  |  | — |  |  | 165,271 |  |
Corporate bonds and notes |  | — |  |  | 3,047,189 |  |  | — |  |  | 3,047,189 |  |
RMBS |  | — |  |  | 833,939 |  |  | — |  |  | 833,939 |  |
CMBS |  | — |  |  | 681,265 |  |  | — |  |  | 681,265 |  |
CLO |  | — |  |  | 568,558 |  |  | — |  |  | 568,558 |  |
Other ABS |  | — |  |  | 252,457 |  |  | — |  |  | 252,457 |  |
Foreign government and agency securities |  | — |  |  | 5,438 |  |  | — |  |  | 5,438 |  |
Total fixed-maturities available for sale |  | 140,034 |  |  | 5,583,306 |  |  | — |  |  | 5,723,340 |  |
Trading securities: |  |  |  |  |  |  |  |  |
State and municipal obligations |  | — |  |  | 120,449 |  |  | — |  |  | 120,449 |  |
Corporate bonds and notes |  | — |  |  | 123,142 |  |  | — |  |  | 123,142 |  |
RMBS |  | — |  |  | 13,000 |  |  | — |  |  | 13,000 |  |
CMBS |  | — |  |  | 34,294 |  |  | — |  |  | 34,294 |  |
Total trading securities |  | — |  |  | 290,885 |  |  | — |  |  | 290,885 |  |
Equity securities |  | 142,761 |  |  | 8,479 |  |  | — |  |  | 151,240 |  |
Short-term investments: |  |  |  |  |  |  |  |  |
State and municipal obligations |  | — |  |  | 21,819 |  |  | — |  |  | 21,819 |  |
Money market instruments |  | 268,900 |  |  | — |  |  | — |  |  | 268,900 |  |
Corporate bonds and notes |  | — |  |  | 30,495 |  |  | — |  |  | 30,495 |  |
Other ABS |  | — |  |  | 219 |  |  | — |  |  | 219 |  |
Other investments (1) |  | — |  |  | 296,571 |  |  | — |  |  | 296,571 |  |
Total short-term investments |  | 268,900 |  |  | 349,104 |  |  | — |  |  | 618,004 |  |
Other invested assets (2) |  | — |  |  | — |  |  | 3,000 |  |  | 3,000 |  |
Total investments at fair value (2) |  | 551,695 |  |  | 6,231,774 |  |  | 3,000 |  |  | 6,786,469 |  |
Other: |  |  |  |  |  |  |  |  |
Embedded derivatives (3) |  | — |  |  | — |  |  | 5,513 |  |  | 5,513 |  |
Loaned securities: (4) |  |  |  |  |  |  |  |  |
U.S. government and agency securities |  | 4,876 |  |  | — |  |  | — |  |  | 4,876 |  |
Corporate bonds and notes |  | — |  |  | 31,324 |  |  | — |  |  | 31,324 |  |
Equity securities |  | 21,299 |  |  | — |  |  | — |  |  | 21,299 |  |
Total assets at fair value (2) |  | $ | 577,870 |  |  | $ | 6,263,098 |  |  | $ | 8,513 |  |  | $ | 6,849,481 |  |
(1)Comprising short-term certificates of deposit and commercial paper. (2)Does not include other invested assets of $2.0 million that are primarily invested in limited partnership investments valued using the net asset value as a practical expedient. (3)Embedded derivatives related to our Excess-of-Loss Program are classified as other assets in our consolidated balance sheets. See Note 8 for more information about our reinsurance programs. (4)Securities loaned to third-party borrowers under securities lending agreements are classified as other assets in our consolidated balance sheets. See Note 6 for more information.
(In thousands) |  | Level I |  | Level II |  | Level III |  | Total |
Assets at fair value as of December 31, 2019 |  |  |  |  |  |  |  |  |
Investments: |  |  |  |  |  |  |  |  |
Fixed-maturities available for sale: |  |  |  |  |  |  |  |  |
U.S. government and agency securities |  | $ | 143,884 |  |  | $ | 35,700 |  |  | $ | — |  |  | $ | 179,584 |  |
State and municipal obligations |  | — |  |  | 119,994 |  |  | — |  |  | 119,994 |  |
Corporate bonds and notes |  | — |  |  | 2,237,611 |  |  | — |  |  | 2,237,611 |  |
RMBS |  | — |  |  | 779,354 |  |  | — |  |  | 779,354 |  |
CMBS |  | — |  |  | 588,420 |  |  | — |  |  | 588,420 |  |
CLO |  | — |  |  | 462,561 |  |  | — |  |  | 462,561 |  |
Other ABS |  | — |  |  | 316,163 |  |  | — |  |  | 316,163 |  |
Foreign government and agency securities |  | — |  |  | 5,224 |  |  | — |  |  | 5,224 |  |
Total fixed-maturities available for sale |  | 143,884 |  |  | 4,545,027 |  |  | — |  |  | 4,688,911 |  |
Trading securities: |  |  |  |  |  |  |  |  |
State and municipal obligations |  | — |  |  | 118,949 |  |  | — |  |  | 118,949 |  |
Corporate bonds and notes |  | — |  |  | 147,232 |  |  | — |  |  | 147,232 |  |
RMBS |  | — |  |  | 16,180 |  |  | — |  |  | 16,180 |  |
CMBS |  | — |  |  | 34,789 |  |  | — |  |  | 34,789 |  |
Total trading securities |  | — |  |  | 317,150 |  |  | — |  |  | 317,150 |  |
Equity securities |  | 124,009 |  |  | 6,212 |  |  | — |  |  | 130,221 |  |
Short-term investments: |  |  |  |  |  |  |  |  |
U.S. government and agency securities |  | 127,152 |  |  | — |  |  | — |  |  | 127,152 |  |
State and municipal obligations |  | — |  |  | 21,475 |  |  | — |  |  | 21,475 |  |
Money market instruments |  | 202,461 |  |  | — |  |  | — |  |  | 202,461 |  |
Corporate bonds and notes |  | — |  |  | 20,298 |  |  | — |  |  | 20,298 |  |
Other investments (1) |  | — |  |  | 147,007 |  |  | — |  |  | 147,007 |  |
Total short-term investments |  | 329,613 |  |  | 188,780 |  |  | — |  |  | 518,393 |  |
Other invested assets (2) |  | — |  |  | — |  |  | 1,500 |  |  | 1,500 |  |
Total investments at fair value (2) |  | 597,506 |  |  | 5,057,169 |  |  | 1,500 |  |  | 5,656,175 |  |
Other: |  |  |  |  |  |  |  |  |
Embedded derivatives (3) |  | — |  |  | — |  |  | 383 |  |  | 383 |  |
Loaned securities: (4) |  |  |  |  |  |  |  |  |
U.S. government and agency securities |  | 35,309 |  |  | — |  |  | — |  |  | 35,309 |  |
Corporate bonds and notes |  | — |  |  | 3,669 |  |  | — |  |  | 3,669 |  |
Equity securities |  | 27,464 |  |  | — |  |  | — |  |  | 27,464 |  |
Total assets at fair value (2) |  | $ | 660,279 |  |  | $ | 5,060,838 |  |  | $ | 1,883 |  |  | $ | 5,723,000 |  |
(1)Comprising short-term certificates of deposit and commercial paper. (2)Does not include other invested assets of $2.6 million that are primarily invested in limited partnership investments valued using the net asset value as a practical expedient. (3)Embedded derivatives related to our Excess-of-Loss Program are classified as other assets in our consolidated balance sheets. See Note 8 for more information about our reinsurance programs. (4)Securities loaned to third-party borrowers under securities lending agreements are classified as other assets in our consolidated balance sheets. See Note 6 for more information. There were no transfers to or from Level III for the years ended December 31, 2020 and 2019. Activity related to Level III assets and liabilities (including realized and unrealized gains and losses, purchases, sales, issuances, settlements and transfers) was immaterial for the years ended December 31, 2020 and 2019. Valuation Methodologies for Assets Measured at Fair Value The following are descriptions of our valuation methodologies for financial assets measured at fair value. We are responsible for the determination of the value of all investments carried at fair value and the supporting methodologies and assumptions. To assist us in this responsibility, we utilize independent third-party valuation service providers to gather, analyze and interpret market information and estimate fair values based upon relevant methodologies and assumptions for various asset classes and individual securities. We perform monthly quantitative and qualitative analyses on the prices received from third parties to determine whether the prices are reasonable estimates of fair value. Our analysis includes: (i) a review of the methodology used by third-party pricing services; (ii) a comparison of pricing services’ valuations to other independent sources; (iii) a review of month-to-month price fluctuations; and (iv) a comparison of actual purchase and sale transactions with valuations received from third parties. These processes are designed to ensure that our investment values are accurately recorded, that the data inputs and valuation techniques utilized are appropriate and consistently applied and that the assumptions are reasonable and consistent with the objective of determining fair value. U.S. Government and Agency Securities. The fair value of U.S. government and agency securities is estimated using observed market transactions, including broker-dealer quotes and actual trade activity as a basis for valuation. U.S. government and agency securities are categorized in either Level I or Level II of the fair value hierarchy. State and Municipal Obligations. The fair value of state and municipal obligations is estimated using recent transaction activity, including market observations. Valuation models are used, which incorporate bond structure, yield curve, credit spreads and other factors. These securities are generally categorized in Level II of the fair value hierarchy or in Level III when market-based transaction activity is unavailable. Money Market Instruments. The fair value of money market instruments is based on daily prices, which are published and available to all potential investors and market participants. As such, these securities are categorized in Level I of the fair value hierarchy. Corporate Bonds and Notes. The fair value of corporate bonds and notes is estimated using recent transaction activity, including market observations. Spread models are used that incorporate issuer and structure characteristics, such as credit risk and early redemption features, where applicable. These securities are generally categorized in Level II of the fair value hierarchy or in Level III when market-based transaction activity is unavailable. RMBS, CMBS, CLO and Other ABS. The fair value of these instruments is estimated based on prices of comparable securities and spreads and observable prepayment speeds. These securities are generally categorized in Level II of the fair value hierarchy or in Level III when market-based transaction activity is unavailable. The fair value of any Level III securities is generally estimated by discounting estimated future cash flows. Foreign Government and Agency Securities. The fair value of foreign government and agency securities is estimated using observed market yields used to create a maturity curve and observed credit spreads from market makers and broker-dealers. These securities are categorized in Level II of the fair value hierarchy. Equity Securities. The fair value of these securities is generally estimated using observable market data in active markets or bid prices from market makers and broker-dealers. Generally, these securities are categorized in Level I or II of the fair value hierarchy, as observable market data are readily available. From time to time, certain equity securities may be categorized in Level III of the fair value hierarchy due to a lack of market-based transaction data or the use of model-based valuations. Other Investments. These securities primarily consist of commercial paper and short-term certificates of deposit, which are categorized in Level II of the fair value hierarchy. The fair value of these investments is estimated using market data for comparable instruments of similar maturity and average yield. Other Invested Assets. These other invested assets represent a promissory note receivable. The estimated fair value approximates its cost due to the short-term nature of the note. Embedded Derivatives. The estimated fair value related to our embedded derivatives generally reflects the present value impact of the variation in investment income on the assets held by the reinsurance trusts and the contractual reference rate used to calculate the reinsurance premiums we will pay. Other Fair Value Disclosure The carrying value and estimated fair value of other selected liabilities not carried at fair value in our consolidated balance sheets were as follows as of the dates indicated.
|  | December 31, 2020 |  | December 31, 2019
(In thousands) |  | Carrying Amount |  | Estimated Fair Value |  | Carrying Amount |  | Estimated Fair Value
Liabilities: |  |  |  |  |  |  |  |
Senior notes |  | $ | 1,405,674 |  |  | $ | 1,563,503 |  |  | $ | 887,110 |  |  | $ | 949,500 |
FHLB advances |  | 176,483 |  |  | 179,578 |  |  | 134,875 |  |  | 135,997 |
The fair value of our senior notes is estimated based on the quoted market prices. The fair value of our FHLB advances is estimated based on expected cash flows for similar borrowings. These liabilities are categorized in Level II of the fair value hierarchy. See Note 12 for further information about these borrowings.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
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