XML 16 R14.htm IDEA: XBRL DOCUMENT
v3.20.1

Fair Value Measurements | 3 Months Ended
--- | ---
Mar. 31, 2020
Fair Value Disclosures [Abstract] |
Fair Value Measurements | Fair Value Measurements We primarily measure the financial assets in our investment portfolio at fair value as disclosed on the Consolidated Balance Sheets. The following table presents the carrying amounts and estimated fair values of our financial liabilities as of March 31, 2020 and December 31, 2019:
|  | March 31, 2020 |  | December 31, 2019
($ in thousands) |  | Carrying Amount |  | Fair Value |  | Carrying Amount |  | Fair Value
Financial Liabilities |  |  |  |  |  |  |  |
Short-term debt: |  |  |  |  |  |  |  |
0.78% Borrowings from FHLBNY |  | $ | 100,000 |  |  | 100,096 |  |  | — |  |  | — |
0.68% Borrowings from FHLBNY |  | 85,000 |  |  | 85,039 |  |  | — |  |  | — |
0.58% Borrowings from FHLBI |  | 67,000 |  |  | 67,006 |  |  | — |  |  | — |
2.244% Line of Credit 1 |  | 50,000 |  |  | — |  |  | — |  |  | — |
Total short-term debt |  | 302,000 |  |  | 252,141 |  |  | — |  |  | — |
Long-term debt: |  |  |  |  |  |  |  |
7.25% Senior Notes |  | 49,911 |  |  | 61,134 |  |  | 49,910 |  |  | 66,365 |
6.70% Senior Notes |  | 99,485 |  |  | 118,561 |  |  | 99,480 |  |  | 123,104 |
5.375% Senior Notes |  | 294,177 |  |  | 316,400 |  |  | 294,157 |  |  | 357,025 |
1.61% borrowings from FHLBNY |  | 25,000 |  |  | 25,261 |  |  | 25,000 |  |  | 24,901 |
1.56% borrowings from FHLBNY |  | 25,000 |  |  | 25,260 |  |  | 25,000 |  |  | 24,875 |
3.03% borrowings from FHLBI |  | 60,000 |  |  | 65,404 |  |  | 60,000 |  |  | 63,002 |
Subtotal long-term debt |  | 553,573 |  |  | 612,020 |  |  | 553,547 |  |  | 659,272 |
Unamortized debt issuance costs |  | (3,618 | ) |  |  |  | (3,687 | ) |  |
Finance lease obligations |  | 622 |  |  |  |  | 737 |  |  |
Total long-term debt |  | $ | 550,577 |  |  |  |  | 550,597 |  |  |
1 Total short-term debt includes our $50 million line of credit borrowing. As there is no scheduled or definitive repayment plan for this borrowing as of March 31, 2020, the fair value cannot be calculated and the borrowing is not classified in the fair value hierarchy table below. For more information about these new short-term borrowings, refer to Note 5. "Indebtedness" above. For a discussion of the fair value hierarchy and techniques used to value our financial assets and liabilities, refer to Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2019 Annual Report. The following tables provide quantitative disclosures of our financial assets that were measured and recorded at fair value at March 31, 2020, and December 31, 2019:
March 31, 2020 |  |  |  | Fair Value Measurements Using
($ 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 |  | $ | 142,237 |  |  | 44,093 |  |  | 98,144 |  |  | — |
Foreign government |  | 12,886 |  |  | — |  |  | 12,886 |  |  | — |
Obligations of states and political subdivisions |  | 1,197,213 |  |  | — |  |  | 1,194,323 |  |  | 2,890 |
Corporate securities |  | 1,909,504 |  |  | — |  |  | 1,885,319 |  |  | 24,185 |
CLO and other ABS |  | 722,261 |  |  | — |  |  | 685,889 |  |  | 36,372 |
RMBS |  | 1,430,226 |  |  | — |  |  | 1,430,226 |  |  | — |
CMBS |  | 531,033 |  |  | — |  |  | 531,033 |  |  | — |
Total AFS fixed income securities |  | 5,945,360 |  |  | 44,093 |  |  | 5,837,820 |  |  | 63,447 |
Equity securities: |  |  |  |  |  |  |  |
Common stock 1 |  | 98,410 |  |  | 59,175 |  |  | — |  |  | — |
Preferred stock |  | 1,579 |  |  | 1,579 |  |  | — |  |  | — |
Total equity securities |  | 99,989 |  |  | 60,754 |  |  | — |  |  | — |
Short-term investments |  | 517,558 |  |  | 504,243 |  |  | 13,315 |  |  | — |
Total assets measured at fair value |  | $ | 6,562,907 |  |  | 609,090 |  |  | 5,851,135 |  |  | 63,447 |
December 31, 2019 |  |  |  | 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 |  | $ | 116,186 |  |  | 41,083 |  |  | 75,103 |  |  | — |
Foreign government |  | 18,542 |  |  | — |  |  | 18,542 |  |  | — |
Obligations of states and political subdivisions |  | 1,230,090 |  |  | — |  |  | 1,230,090 |  |  | — |
Corporate securities |  | 1,947,477 |  |  | — |  |  | 1,930,426 |  |  | 17,051 |
CLO and other ABS |  | 793,012 |  |  | 3,635 |  |  | 772,343 |  |  | 17,034 |
RMBS |  | 1,451,969 |  |  | — |  |  | 1,451,969 |  |  | — |
CMBS |  | 538,344 |  |  | — |  |  | 538,344 |  |  | — |
Total AFS fixed income securities |  | 6,095,620 |  |  | 44,718 |  |  | 6,016,817 |  |  | 34,085 |
Equity securities: |  |  |  |  |  |  |  |
Common stock 1 |  | 69,900 |  |  | 32,145 |  |  | — |  |  | — |
Preferred stock |  | 3,037 |  |  | 3,037 |  |  | — |  |  | — |
Total equity securities |  | 72,937 |  |  | 35,182 |  |  | — |  |  | — |
Short-term investments |  | 282,490 |  |  | 265,306 |  |  | 17,184 |  |  | — |
Total assets measured at fair value |  | $ | 6,451,047 |  |  | 345,206 |  |  | 6,034,001 |  |  | 34,085 |
1 Investments amounting to $39.2 million at March 31, 2020, and $37.8 million at December 31, 2019, were measured at fair value using net asset value per share (or its practical expedient) and are not classified in the fair value hierarchy. These investments are not redeemable and the timing of liquidations of the underlying assets is unknown at each reporting period disclosed above. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to total assets measured at fair value. The following table provides a summary of Level 3 changes in First Quarter 2020 and First Quarter 2019:
March 31, 2020 |  |  |  |  |  |  |  |
($ in thousands) |  | Obligations of states and political subdivisions |  | Corporate Securities |  | CLO and Other ABS |  | Total
Fair value, December 31, 2019 |  | — |  |  | 17,051 |  |  | 17,034 |  |  | 34,085 |
Total net (losses) gains for the period included in: |  |  |  |  |  |  |  |
OCI |  | — |  |  | 1 |  |  | (1,756 | ) |  | (1,755 | )
Net realized and unrealized (losses) gains |  | — |  |  | (61 | ) |  | (214 | ) |  | (275 | )
Purchases |  | — |  |  | 3,002 |  |  | 4,831 |  |  | 7,833 |
Sales |  | — |  |  | — |  |  | — |  |  | — |
Issuances |  | — |  |  | — |  |  | — |  |  | — |
Settlements |  | — |  |  | — |  |  | — |  |  | — |
Transfers into Level 3 |  | 2,890 |  |  | 4,192 |  |  | 20,107 |  |  | 27,189 |
Transfers out of Level 3 |  | — |  |  | — |  |  | (3,630 | ) |  | (3,630 | )
Fair value, March 31, 2020 |  | 2,890 |  |  | 24,185 |  |  | 36,372 |  |  | 63,447 |
Change in unrealized (losses) gains for the period included in earnings for assets held at period end |  | — |  |  | (61 | ) |  | (214 | ) |  | (275 | )
Change in unrealized gains (losses) for the period included in other comprehensive income for assets held at period end |  | — |  |  | 1 |  |  | (1,756 | ) |  | (1,755 | )
March 31, 2019 |  |  |  |  |  |
($ in thousands) |  | Corporate Securities |  | CLO and Other ABS |  | Total
Fair value, December 31, 2018 |  | — |  |  | 7,409 |  |  | 7,409 |
Total net (losses) gains for the period included in: |  |  |  |  |  |
OCI |  | — |  |  | (225 | ) |  | (225 | )
Net realized and unrealized (losses) gains |  | — |  |  | — |  |  | — |
Purchases |  | — |  |  | 12,434 |  |  | 12,434 |
Sales |  | — |  |  | — |  |  | — |
Issuances |  | — |  |  | — |  |  | — |
Settlements |  | — |  |  | — |  |  | — |
Transfers into Level 3 |  | 16,419 |  |  | 11,674 |  |  | 28,093 |
Transfers out of Level 3 |  | — |  |  | — |  |  | — |
Fair value, March 31, 2019 |  | 16,419 |  |  | 31,292 |  |  | 47,711 |
Change in unrealized gains (losses) for the period included in earnings for assets held at period end |  | — |  |  | — |  |  | — |
The following tables provide quantitative information regarding our financial assets and liabilities that were disclosed at fair value at March 31, 2020, and December 31, 2019:
March 31, 2020 |  |  |  | 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 |  | $ | 4,871 |  |  | — |  |  | 4,871 |  |  | — |
Corporate securities |  | 17,050 |  |  | — |  |  | 17,050 |  |  | — |
Total HTM fixed income securities |  | $ | 21,921 |  |  | — |  |  | 21,921 |  |  | — |
CMLs |  | 13,856 |  |  | — |  |  | — |  |  | 13,856 |
Financial Liabilities |  |  |  |  |  |  |  |  |  |  |  |
Short-term debt: |  |  |  |  |  |  |  |
0.78% Borrowings from FHLBNY |  | 100,096 |  |  | — |  |  | 100,096 |  |  | — |
0.68% Borrowings from FHLBNY |  | 85,039 |  |  | — |  |  | 85,039 |  |  | — |
0.58% Borrowings from FHLBI |  | 67,006 |  |  | — |  |  | 67,006 |  |  | — |
Total short-term debt |  | 252,141 |  |  | — |  |  | 252,141 |  |  | — |
Long-term debt: |  |  |  |  |  |  |  |
7.25% Senior Notes |  | $ | 61,134 |  |  | — |  |  | 61,134 |  |  | — |
6.70% Senior Notes |  | 118,561 |  |  | — |  |  | 118,561 |  |  | — |
5.375% Senior Notes |  | 316,400 |  |  | — |  |  | 316,400 |  |  | — |
1.61% borrowings from FHLBNY |  | 25,261 |  |  | — |  |  | 25,261 |  |  | — |
1.56% borrowings from FHLBNY |  | 25,260 |  |  | — |  |  | 25,260 |  |  | — |
3.03% borrowings from FHLBI |  | 65,404 |  |  | — |  |  | 65,404 |  |  | — |
Total long-term debt |  | $ | 612,020 |  |  | — |  |  | 612,020 |  |  | — |
December 31, 2019 |  |  |  | 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 |  | $ | 4,921 |  |  | — |  |  | 4,921 |  |  | — |
Corporate securities |  | 17,054 |  |  | — |  |  | 17,054 |  |  | — |
Total HTM fixed income securities |  | $ | 21,975 |  |  | — |  |  | 21,975 |  |  | — |
Financial Liabilities |  |  |  |  |  |  |  |  |
Long-term debt: |  |  |  |  |  |  |  |
7.25% Senior Notes |  | $ | 66,365 |  |  | — |  |  | 66,365 |  |  | — |
6.70% Senior Notes |  | 123,104 |  |  | — |  |  | 123,104 |  |  | — |
5.375% Senior Notes |  | 357,025 |  |  | — |  |  | 357,025 |  |  | — |
1.61% borrowings from FHLBNY |  | 24,901 |  |  | — |  |  | 24,901 |  |  | — |
1.56% borrowings from FHLBNY |  | 24,875 |  |  | — |  |  | 24,875 |  |  | — |
3.03% borrowings from FHLBI |  | 63,002 |  |  | — |  |  | 63,002 |  |  | — |
Total long-term debt |  | $ | 659,272 |  |  | — |  |  | 659,272 |  |  | — |

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