XML 46 R14.htm IDEA: XBRL DOCUMENT v3.20.4
Fair Value Measurements
 12 Months Ended
Dec. 31, 2020
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The financial assets in our investment portfolio are primarily measured 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 December 31, 2020 and 2019:
 December 31, 2020December 31, 2019
($ in thousands)Carrying AmountFair ValueCarrying AmountFair Value
Financial Liabilities    
Long-term debt:
7.25% Senior Notes$49,914 66,148 49,910 66,365 
6.70% Senior Notes99,499 127,886 99,480 123,104 
5.375% Senior Notes294,241 383,669 294,157 357,025 
1.61% Borrowings from FHLBNY25,000 25,182 25,000 24,901 
1.56% Borrowings from FHLBNY25,000 25,198 25,000 24,875 
3.03% Borrowings from FHLBI60,000 67,513 60,000 63,002 
   Subtotal long-term debt553,654 695,596 553,547 659,272 
   Unamortized debt issuance costs(3,419)(3,687)
 Finance lease obligations508 737 
Total long-term debt$550,743 $550,597 

For discussion regarding the fair value techniques of our financial instruments, refer to Note 2. "Summary of Significant Accounting Policies" of 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, 2020 and 2019:
December 31, 2020 Fair Value Measurements Using
($ in thousands)Assets Measured at Fair ValueQuoted Prices in Active Markets for Identical Assets/ Liabilities
(Level 1)		Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs
(Level 3)
Description    
Measured on a recurring basis:    
AFS fixed income securities:
U.S. government and government agencies$116,140 40,960 75,180 — 
Foreign government18,366 — 18,366 — 
Obligations of states and political subdivisions1,247,137 — 1,244,243 2,894 
Corporate securities2,328,052 — 2,257,352 70,700 
CLO and other ABS1,026,551 — 970,176 56,375 
RMBS1,051,788 — 1,051,788 — 
CMBS667,894 — 667,894 — 
Total AFS fixed income securities6,455,928 40,960 6,284,999 129,969 
Equity securities:
Common stock1
308,632 261,846 — — 
Preferred stock1,735 1,735 — — 
Total equity securities310,367 263,581 — — 
Short-term investments409,852 405,400 4,452 — 
Total assets measured at fair value$7,176,147 709,941 6,289,451 129,969 
 
December 31, 2019 Fair Value Measurements Using
($ in thousands)Assets Measured at Fair ValueQuoted Prices in Active Markets for Identical Assets/ Liabilities
(Level 1)		Significant Other Observable Inputs (Level 2)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 government18,542 — 18,542 — 
Obligations of states and political subdivisions1,230,090 — 1,230,090 — 
Corporate securities1,947,477 — 1,930,426 17,051 
CLO and other ABS793,012 3,635 772,343 17,034 
RMBS1,451,969 — 1,451,969 — 
CMBS538,344 — 538,344 — 
Total AFS fixed income securities6,095,620 44,718 6,016,817 34,085 
Equity securities:
Common stock1
69,900 32,145 — — 
Preferred stock3,037 3,037 — — 
Total equity securities72,937 35,182 — — 
Short-term investments282,490 265,306 17,184 — 
Total assets measured at fair value$6,451,047 345,206 6,034,001 34,085 
1Investments amounting to $46.8 million and $37.8 million at December 31, 2020 and December 31, 2019, 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. These investments are not redeemable and the timing of liquidations of the underlying assets is unknown at each reporting period. 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 2020:
2020
($ in thousands)Obligations of states and political subdivisionsCorporate SecuritiesCLO and Other ABSTotal
Fair value, December 31, 2019$— 17,051 17,034 34,085 
Total net (losses) gains for the period included in:   
OCI4 (785)1,883 1,102 
Net realized and unrealized (losses) gains— (1,046)(237)(1,283)
Net investment income earned— 21 6 27 
Purchases— 46,150 25,785 71,935 
Sales— — — — 
Issuances— — — — 
Settlements— (283)(2,638)(2,921)
Transfers into Level 32,890 9,592 31,520 44,002 
Transfers out of Level 3— — (16,978)(16,978)
Fair value, December 31, 2020$2,894 70,700 56,375 129,969 
Change in unrealized (losses) gains for the period included in earnings for assets held at period end— (1,046)(237)(1,283)
Change in unrealized gains (losses) for the period included in OCI for assets held at period end4 (785)1,883 1,102 
2019
($ in thousands)Corporate SecuritiesCLO and Other ABSTotal
Fair value, December 31, 2018— 7,409 7,409 
Total net (losses) gains for the period included in:
OCI(118)(261)(379)
Net realized and unrealized (losses) gains— — — 
Net investment income earned— 245 245 
Purchases— 21,282 21,282 
Sales— — — 
Issuances— — — 
Settlements— (279)(279)
Transfers into Level 317,169 18,853 36,022 
Transfers out of Level 3— (30,215)(30,215)
Fair value, December 31, 201917,051 17,034 34,085 
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 not measured, but were disclosed at fair value at December 31, 2020 and 2019:
December 31, 2020Fair 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$4,795 — 4,795 — 
Corporate securities13,206 — 13,206 — 
Total HTM fixed income securities$18,001 — 18,001 — 
CMLs$47,289 — — 47,289 
Financial Liabilities
Long-term debt:
7.25% Senior Notes$66,148 — 66,148 — 
6.70% Senior Notes127,886 — 127,886 — 
5.375% Senior Notes383,669 — 383,669 — 
1.61% Borrowings from FHLBNY25,182 — 25,182 — 
1.56% Borrowings from FHLBNY25,198 — 25,198 — 
3.03% Borrowings from FHLBI67,513 — 67,513 — 
Total long-term debt$695,596 — 695,596 — 
December 31, 2019Fair Value Measurements Using
($ 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 securities17,054 — 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 Notes123,104 — 123,104 — 
5.375% Senior Notes357,025 — 357,025 — 
1.61% Borrowings from FHLBNY24,901 — 24,901 — 
1.56% Borrowings from FHLBNY24,875 — 24,875 — 
3.03% Borrowings from FHLBI63,002 — 63,002 — 
Total long-term debt$659,272 — 659,272 —