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Fair Value Measurements
 3 Months Ended
Mar. 31, 2022
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 March 31, 2022, and December 31, 2021:

March 31, 2022December 31, 2021
($ in thousands)Carrying AmountFair ValueCarrying AmountFair Value
Financial Liabilities
Long-term debt:
7.25% Senior Notes$49,919 59,828 49,917 63,719 
6.70% Senior Notes99,525 116,980 99,520 127,574 
5.375% Senior Notes294,353 332,644 294,330 395,652 
3.03% borrowings from FHLBI60,000 60,747 60,000 64,126 
Subtotal long-term debt503,797 570,199 503,767 651,071 
Unamortized debt issuance costs(3,106)(3,167)
Finance lease obligations4,875 5,450 
Total long-term debt$505,566 506,050 
For discussion regarding the fair value techniques of our financial instruments, refer to Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2021 Annual Report.

The following tables provide quantitative disclosures of our financial assets that were measured and recorded at fair value at March 31, 2022, and December 31, 2021:

March 31, 2022 Fair Value Measurements Using
($ in thousands)Assets
 Measured 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)
Description    
Measured on a recurring basis:    
AFS fixed income securities:
U.S. government and government agencies$127,093 31,671 95,422 — 
Foreign government16,703 — 16,703 — 
Obligations of states and political subdivisions1,125,431 — 1,118,186 7,245 
Corporate securities2,387,740 — 2,264,938 122,802 
CLO and other ABS1,417,214 — 1,286,296 130,918 
RMBS877,959 — 877,959 — 
CMBS646,682 — 646,243 439 
Total AFS fixed income securities6,598,822 31,671 6,305,747 261,404 
Equity securities:
Common stock1
342,572 246,178 — — 
Preferred stock2,011 2,011 — — 
Total equity securities344,583 248,189 — — 
Short-term investments256,712 250,938 5,774 — 
Total assets measured at fair value$7,200,117 530,798 6,311,521 261,404 

December 31, 2021 Fair Value Measurements Using
($ in thousands)Assets
 Measured 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)
Description    
Measured on a recurring basis:    
AFS fixed income securities:
U.S. government and government agencies$130,458 60,615 69,843 — 
Foreign government15,860 — 15,860 — 
Obligations of states and political subdivisions1,189,308 — 1,181,563 7,745 
Corporate securities2,573,603 — 2,459,476 114,127 
CLO and other ABS1,350,814 — 1,225,905 124,909 
RMBS776,252 — 776,007 245 
CMBS673,681 — 669,425 4,256 
Total AFS fixed income securities6,709,976 60,615 6,398,079 251,282 
Equity securities:
Common stock1
333,449 249,846 — — 
Preferred stock2,088 2,088 — — 
Total equity securities335,537 251,934 — — 
Short-term investments447,863 442,723 5,140 — 
Total assets measured at fair value$7,493,376 755,272 6,403,219 251,282 
1Investments amounting to $96.4 million at March 31, 2022, and $83.6 million at December 31, 2021, 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 in this table are intended to permit reconciliation of the fair value hierarchy to total assets measured at fair value.
The following tables provide a summary of the changes in the fair value of securities measured using Level 3 inputs and related quantitative information for the periods indicated:

Quarter ended March 31, 2022
($ in thousands)Obligations of States and Political SubdivisionsCorporate SecuritiesCLO and Other ABSRMBSCMBSTotal
Fair value, December 31, 2021
$7,745 114,127 124,909 245 4,256 251,282 
Total net (losses) gains for the period included in:
OCI(343)(6,529)(4,335)(17)(415)(11,639)
   Net realized and unrealized (losses) gains(157)(1,809)(472)— (7)(2,445)
Net investment income earned— 4 15 — 47 66 
Purchases— 2,964 27,033 — — 29,997 
Sales— — — — — — 
Issuances— — — — — — 
Settlements— (69)(136)(11)(11)(227)
Transfers into Level 3— 17,055 — — — 17,055 
Transfers out of Level 3— (2,941)(16,096)(217)(3,431)(22,685)
Fair value, March 31, 2022
$7,245 122,802 130,918 — 439 261,404 
Change in unrealized losses for the period included in earnings for assets held at period end(157)(1,809)(472)— (7)(2,445)
Change in unrealized gains for the period included in OCI for assets held at period end(343)(6,529)(4,335)(17)(415)(11,639)

Quarter ended March 31, 2021
($ in thousands)Obligation of state and Political SubdivisionsCorporate SecuritiesCLO and Other ABSTotal
Fair value, December 31, 2020
$2,894 70,700 56,375 129,969 
Total net (losses) gains for the period included in:
OCI(99)(2,388)(1,116)(3,603)
Net realized and unrealized (losses) gains— (91)(143)(234)
Net investment income earned— 1 3 4 
Purchases— 21,100 10,672 31,772 
Sales— — — — 
Issuances— — — — 
Settlements— — (412)(412)
Transfers into Level 35,101 — — 5,101 
Transfers out of Level 3— — (490)(490)
Fair value, March 31, 2021
$7,896 89,322 64,889 162,107 
Change in unrealized (losses) gains for the period included in earnings for assets held at period end— (91)(143)(234)
Change in unrealized gains (losses) for the period included in OCI for assets held at period end(99)(2,388)(1,116)(3,603)

The following tables present quantitative information about the significant unobservable inputs utilized in the fair value measurements of Level 3 assets at March 31, 2022 and December 31, 2021:

March 31, 2022
($ in thousands)Assets Measured at Fair ValueValuation TechniquesUnobservable InputsRange
(Weighted Average)
Internal valuations:
Corporate securities$56,510 Discounted Cash FlowIlliquidity Spread
(4.4)% - 5.3% (1.1)%
CLO and other ABS46,816 Discounted Cash FlowIlliquidity Spread
0.01% - 8.0% (1.9)%
Total internal valuations103,326 
Other1
158,078 
Total Level 3 securities$261,404 
December 31, 2021
($ in thousands)Assets Measured at Fair ValueValuation TechniquesUnobservable InputsRange
(Weighted Average)
Internal valuations:
Corporate securities$54,135 Discounted Cash FlowIlliquidity Spread
0.3% - 3.0% (1.2)%
CLO and other ABS34,903 Discounted Cash FlowIlliquidity Spread
0.7% - 8.0% (2.1)%
Total internal valuations89,038 
Other1
162,244 
Total Level 3 securities$251,282 
1Other is comprised of broker quotes or other third-party pricing for which there is a lack of transparency as to the inputs used to develop the valuations. The quantitative details of these unobservable inputs is neither provided to us, nor reasonably available to us, and therefore are not included in the tables above.

For the securities in the tables above valued using a discounted cash flow analysis, we apply an illiquidity spread in our determination of fair value. An increase in this assumption would result in a lower fair value measurement.

The following tables provide quantitative information regarding our financial assets and liabilities that were not measured, but were disclosed at fair value at March 31, 2022, and December 31, 2021:

March 31, 2022 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$3,502 — 3,502 — 
Corporate securities29,123 — 29,123 — 
Total HTM fixed income securities$32,625 — 32,625 — 
CMLs$113,106 — — 113,106 
Financial Liabilities    
Long-term debt:
7.25% Senior Notes$59,828 — 59,828 — 
6.70% Senior Notes116,980 — 116,980 — 
5.375% Senior Notes332,644 — 332,644 — 
3.03% borrowings from FHLBI60,747 — 60,747 — 
Total long-term debt$570,199 — 570,199 — 

December 31, 2021 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$3,576 — 3,576 — 
Corporate securities25,884 — 25,884 — 
Total HTM fixed income securities$29,460 — 29,460 — 
CMLs$97,598 — — 97,598 
Financial Liabilities    
Long-term debt:
7.25% Senior Notes$63,719 — 63,719 — 
6.70% Senior Notes127,574 — 127,574 — 
5.375% Senior Notes395,652 — 395,652 — 
3.03% borrowings from FHLBI64,126 — 64,126 — 
Total long-term debt$651,071 — 651,071 —