XML 43 R15.htm IDEA: XBRL DOCUMENT v3.10.0.1

Fair Value Measurements

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

The following table presents the carrying amounts and estimated fair values of our financial instruments as of December 31, 2018 and 2017:

		December 31, 2018							December 31, 2017
($ in thousands)		Carrying Amount				Fair Value			Carrying Amount			Fair Value
Financial Assets
Fixed income securities:
HTM		$	37,110			38,317			42,129			44,100
AFS		5,273,100				5,273,100			5,162,522			5,162,522
Equity securities		147,639				147,639			182,705			182,705
Short-term investments		323,864				323,864			165,555			165,555
Long-term debt:
7.25% Senior Notes		49,907				57,032			49,904			61,391
6.70% Senior Notes		99,462				107,075			99,446			116,597
5.875% Senior Notes		185,000				177,230			185,000			186,332
1.61% Borrowings from FHLBNY		25,000				24,218			25,000			24,270
1.56% Borrowings from FHLBNY		25,000				24,162			25,000			24,210
3.03% Borrowings from FHLBI		60,000				58,905			60,000			60,334
Subtotal long-term debt		444,369				448,622			444,350			473,134
Unamortized debt issuance costs		(4,829		)					(5,234	)
Total long-term debt		$	439,540						439,116

For discussion regarding the fair value techniques of our financial instruments, refer to Note 2. "Summary of Significant Accounting Policies" in this Form 10-K.

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

December 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		$	121,310			78,381			42,929			—
Foreign government		23,131				—			23,131			—
Obligations of states and political subdivisions		1,138,469				—			1,138,469			—
Corporate securities		1,617,408				—			1,617,408			—
CLO and other ABS		717,362				—			709,953			7,409
CMBS		527,078				—			527,078			—
RMBS		1,128,342				—			1,128,342			—
Total AFS fixed income securities		5,273,100				78,381			5,187,310			7,409
Equity securities:
Common stock2		144,727				107,397			—			—
Preferred stock		2,912				2,912			—			—
Total equity securities		147,639				110,309			—			—
Short-term investments		323,864				321,370			2,494			—
Total assets measured at fair value		$	5,744,603			510,060			5,189,804			7,409

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 stock		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

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

²In accordance with ASU 2015-07, investments amounting to $37.3 million and $23.7 million at December 31, 2018 and December 31, 2017, respectively, 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.

The following table provides a summary of the changes in the fair value of securities measured using Level 3 inputs and related quantitative information during 2018:

2018
($ in thousands)		CMBS				CLO and Other ABS			Common Stock			Total
Fair value, December 31, 2017		$	6,554			—			5,398			11,952
Total net (losses) gains for the period included in:
OCI		—				—			—			—
Net income		—				—			—			—
Purchases		—				7,409			—			7,409
Sales		—				—			—			—
Issuances		—				—			—			—
Settlements		—				—			—			—
Transfers into Level 3		—				—			—			—
Transfers out of Level 3		(6,554		)		—			(5,398	)		(11,952	)
Fair value, December 31, 2018		$	—			7,409			—			7,409

The following tables provide quantitative information regarding our financial assets and liabilities that were not measured, but were disclosed at fair value at December 31, 2018 and 2017:

December 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		$	17,969			—			17,969			—
Corporate securities		20,348				—			20,348			—
Total HTM fixed income securities		$	38,317			—			38,317			—
Financial Liabilities
Long-term debt:
7.25% Senior Notes		$	57,032			—			57,032			—
6.70% Senior Notes		107,075				—			107,075			—
5.875% Senior Notes		177,230				177,230			—			—
1.61% Borrowings from FHLBNY		24,218				—			24,218			—
1.56% Borrowings from FHLBNY		24,162				—			24,162			—
3.03% Borrowings from FHLBI		58,905				—			58,905			—
Total long-term debt		$	448,622			177,230			271,392			—

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			—

X

- References

No definition available.

+ Details

Name:	us-gaap_FairValueDisclosuresAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- 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://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-URI http://asc.fasb.org/topic&trid=2155941

+ Details

Name:	us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration