Fair Value Measurements

Our financial assets are measured at fair value as disclosed on the Consolidated Balance Sheets. The fair values of our long-term debt are provided in this footnote and the related carry values have changed by less than 1% during First Quarter 2018. During First Quarter 2018, we borrowed $55 million from the FHLBNY. This borrowing, with a fair value and carry value of $55 million, was outstanding at March 31, 2018 and repaid on April 18, 2018. For a discussion of the fair value and hierarchy of the techniques used to value our financial assets and liabilities, refer to Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2017 Annual Report.

The following tables provide quantitative disclosures of our financial assets that were measured and recorded at fair value at March 31, 2018 and December 31, 2017:



March 31, 2018			Fair Value Measurements Using
($ in thousands)	Assets Measured at Fair Value		Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1)¹	Significant Other Observable Inputs (Level 2)¹	Significant Unobservable Inputs (Level 3)
Description
Measured on a recurring basis:
AFS fixed income securities:
U.S. government and government agencies	$	50,949	22,584	28,365	—
Foreign government	18,200		—	18,200	—
Obligations of states and political subdivisions	1,318,160		—	1,318,160	—
Corporate securities	1,621,722		—	1,621,722	—
CLO and other ABS	794,483		—	794,483	—
CMBS	426,583		—	426,583	—
RMBS	911,540		—	911,540	—
Total AFS fixed income securities	5,141,637		22,584	5,119,053	—
Equity securities:
Common stock²	164,370		139,398	—	—
Preferred stock	4,472		4,472	—	—
Total equity securities	168,842		143,870	—	—
Short-term investments	182,980		181,983	997	—
Total assets measured at fair value	$	5,493,459	348,437	5,120,050	—



December 31, 2017			Fair Value Measurements Using
($ in thousands)	Assets Measured at Fair Value		Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1)¹	Significant Other Observable Inputs (Level 2)¹	Significant Unobservable Inputs (Level 3)
Description
Measured on a recurring basis:
AFS fixed income securities:
U.S. government and government agencies	$	49,740	24,652	25,088	—
Foreign government	18,555		—	18,555	—
Obligations of states and political subdivisions	1,582,970		—	1,582,970	—
Corporate securities	1,617,468		—	1,617,468	—
CLO and other ABS	795,458		—	795,458	—
CMBS	383,449		—	376,895	6,554
RMBS	714,882		—	714,882	—
Total AFS fixed income securities	5,162,522		24,652	5,131,316	6,554
AFS equity securities:
Common stock²	167,757		138,640	—	5,398
Preferred stock	14,948		14,948	—	—
Total AFS equity securities	182,705		153,588	—	5,398
Total AFS securities	5,345,227		178,240	5,131,316	11,952
Short-term investments	165,555		165,555	—	—
Total assets measured at fair value	$	5,510,782	343,795	5,131,316	11,952


¹	There were no transfers of securities between Level 1 and Level 2.

Investments amounting to $25.0 million at March 31, 2018, and $23.7 million at December 31, 2017, were measured at fair value using the net asset value per share (or its practical expedient) and have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to total assets measured at fair value.

There were no changes in the fair value of securities measured using Level 3 prices in First Quarter 2017. The following table provides a summary of Level 3 changes in First Quarter 2018:



March 31, 2018
($ in thousands)	CMBS			Common Stock
Fair value, December 31, 2017	$	6,554		5,398
Total net (losses) gains for the period included in:
OCI	—			—
Net income	—			—
Purchases	—			—
Sales	—			—
Issuances	—			—
Settlements	—			—
Transfers into Level 3	—			—
Transfers out of Level 3	(6,554		)	(5,398	)
Fair value, March 31, 2018	$	—		—

The following tables provide quantitative information regarding our financial assets and liabilities that were disclosed at fair value at March 31, 2018 and December 31, 2017:



March 31, 2018			Fair Value Measurements Using
($ in thousands)	Assets/ Liabilities Disclosed at Fair Value		Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Financial Assets
HTM:
Obligations of states and political subdivisions	$	25,950	—	25,950	—
Corporate securities	17,313		—	11,609	5,704
Total HTM fixed income securities	$	43,263	—	37,559	5,704

Financial Liabilities
Short-term debt:
1.98% Borrowings from FHLBNY	$	55,000	—	55,000	—
Total short-term debt	$	55,000	—	55,000	—

Long-term debt:
7.25% Senior Notes	$	59,785	—	59,785	—
6.70% Senior Notes	113,472		—	113,472	—
5.875% Senior Notes	186,332		186,332	—	—
1.61% borrowings from FHLBNY	23,991		—	23,991	—
1.56% borrowings from FHLBNY	23,926		—	23,926	—
3.03% borrowings from FHLBI	59,211		—	59,211	—
Total long-term debt	$	466,717	186,332	280,385	—



December 31, 2017			Fair Value Measurements Using
($ in thousands)	Assets/ Liabilities Disclosed at Fair Value		Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Financial Assets
HTM:
Obligations of states and political subdivisions	$	26,261	—	26,261	—
Corporate securities	17,839		—	12,306	5,533
Total HTM fixed income securities	$	44,100	—	38,567	5,533

Financial Liabilities
Long-term debt:
7.25% Senior Notes	$	61,391	—	61,391	—
6.70% Senior Notes	116,597		—	116,597	—
5.875% Senior Notes	186,332		186,332	—	—
1.61% borrowings from FHLBNY	24,270		—	24,270	—
1.56% borrowings from FHLBNY	24,210		—	24,210	—
3.03% borrowings from FHLBI	60,334		—	60,334	—
Total long-term debt	$	473,134	186,332	286,802	—