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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments

						December 31, 2022												December 31, 2021
($ in thousands)						Carrying Amount						Fair Value						Carrying Amount						Fair Value
Financial Liabilities
Long-term debt:
7.25% Senior Notes						$	49,921					51,705						49,917						63,719
6.70% Senior Notes						99,542						99,264						99,520						127,574
5.375% Senior Notes						294,424						258,459						294,330						395,652
3.03% Borrowings from FHLBI						60,000						57,175						60,000						64,126
Subtotal long-term debt						503,887						466,603						503,767						651,071
Unamortized debt issuance costs						(2,929)												(3,167)
Finance lease obligations						3,718												5,450
Total long-term debt						$	504,676											$	506,050

Schedule of Quantitative Disclosures of our Financial Assets that were Measured at Fair Value

December 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						$	189,239					109,240						79,999						—
Foreign government						9,608						—						9,608						—
Obligations of states and political subdivisions						918,018						—						911,357						6,661
Corporate securities						2,335,025						—						2,147,045						187,980
CLO and other ABS						1,485,973						—						1,332,631						153,342
RMBS						1,059,832						—						1,059,832						—
CMBS						614,412						—						614,037						375
Total AFS fixed income securities						6,612,107						109,240						6,154,509						348,358
Equity securities:
Common stock1						160,355						55,846						—						897
Preferred stock						1,645						1,645						—						—
Total equity securities						162,000						57,491						—						897
Short-term investments						440,456						418,199						22,257						—
Total assets measured at fair value						$	7,214,563					584,930						6,176,766						349,255

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 government						15,860						—						15,860						—
Obligations of states and political subdivisions						1,189,308						—						1,181,563						7,745
Corporate securities						2,573,603						—						2,459,476						114,127
CLO and other ABS						1,350,814						—						1,225,905						124,909
RMBS						776,252						—						776,007						245
CMBS						673,681						—						669,425						4,256
Total AFS fixed income securities						6,709,976						60,615						6,398,079						251,282
Equity securities:
Common stock1						333,449						249,846						—						—
Preferred stock						2,088						2,088						—						—
Total equity securities						335,537						251,934						—						—
Short-term investments						447,863						442,723						5,140						—
Total assets measured at fair value						$	7,493,376					755,272						6,403,219						251,282

1Investments amounting to $103.6 million and $83.6 million at December 31, 2022 and December 31, 2021, 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.

Schedule of Summary of the Changes in Fair Value of Securities Using Level 3 Inputs

2022
($ in thousands)						Obligations of states and political subdivisions												Corporate Securities						CLO and Other ABS						RMBS						CMBS						Common Stock												Total
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						(985)												(23,624)						(11,287)						(17)						(481)						—												(36,394)
Net realized and unrealized investment (losses) gains						(99)												(2,414)						(876)						—						—						—												(3,389)
Net investment income earned						—												68						229						—						45						—												342
Purchases						—												99,868						100,406						—						—						—												200,274
Sales						—												—						—						—						—						—												—
Issuances						—												—						—						—						—						—												—
Settlements						—												(10,148)						(12,361)						(11)						(15)						—												(22,535)
Transfers into Level 3						—												19,214						502						—						—						897												20,613
Transfers out of Level 3						—												(9,111)						(48,180)						(217)						(3,430)						—												(60,938)
Fair value, December 31, 2022						$	6,661											187,980						153,342						—						375						897												349,255
Change in unrealized losses for the period included in earnings for assets held at period end						(99)												(2,399)						(876)						—						—						—												(3,374)
Change in unrealized losses for the period included in OCI for assets held at period end						(985)												(23,630)						(11,246)						(17)						(481)						—												(36,359)

2021
($ in thousands)						Obligations of states and political subdivisions						Corporate Securities						CLO and Other ABS						RMBS						CMBS						Total
Fair value, December 31, 2020						$	2,894					70,700						56,375						—						—						129,969
Total net (losses) gains for the period included in:
OCI						(239)						1,636						(520)						—						(196)						681
Net realized and unrealized investment (losses) gains						(11)						(50)						(214)						—						5						(270)
Net investment income earned						—						27						16						—						19						62
Purchases						—						64,813						76,731						249						98						141,891
Sales						—						—						—						—						—						—
Issuances						—						—						—						—						—						—
Settlements						—						(544)						(5,161)						(4)						(52)						(5,761)
Transfers into Level 3						5,101						981						11,344						—						4,382						21,808
Transfers out of Level 3						—						(23,436)						(13,662)						—						—						(37,098)
Fair value, December 31, 2021						$	7,745					114,127						124,909						245						4,256						251,282
Change in unrealized (losses) gains for the period included in earnings for assets held at period end						(11)						(50)						(214)						—						5						(270)
Change in unrealized (losses) gains for the period included in OCI for assets held at period end						(239)						1,636						(520)						—						(196)						681

Fair Value Measurement Inputs and Valuation Techniques

December 31, 2022

($ in thousands)

Assets Measured at Fair Value

Valuation Techniques

Unobservable Inputs

Range

Weighted Average

Internal valuations:

Corporate securities

$

81,867

Discounted Cash Flow

Illiquidity Spread

(4.4)% - 5.3%

1.3%

CLO and other ABS

59,452

Discounted Cash Flow

Illiquidity Spread

0.01% - 19.6%

2.5%

Total internal valuations

141,319

Other1

207,936

Total Level 3 securities

$

349,255

December 31, 2021

($ in thousands)

Assets Measured at Fair Value

Valuation Techniques

Unobservable Inputs

Range

Weighted Average

Internal valuations:

Corporate securities

$

54,135

Discounted Cash Flow

Illiquidity Spread

0.3% - 3.0%

(1.2)%

CLO and other ABS

34,903

Discounted Cash Flow

Illiquidity Spread

0.7% - 8.0%

(2.1)%

Total internal valuations

89,038

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 into 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.

Schedule of Quantitative Information of our Financial Assets and Liabilities that were Disclosed at Fair Value

December 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						$	3,405					—						3,405						—
Corporate securities						26,432						—						26,432						—
Total HTM fixed income securities						$	29,837					—						29,837						—
CMLs						$	139,243					—						—						139,243
Financial Liabilities
Long-term debt:
7.25% Senior Notes						$	51,705					—						51,705						—
6.70% Senior Notes						99,264						—						99,264						—
5.375% Senior Notes						258,459						—						258,459						—
3.03% Borrowings from FHLBI						57,175						—						57,175						—
Total long-term debt						$	466,603					—						466,603						—

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 securities						25,884						—						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 Notes						127,574						—						127,574						—
5.375% Senior Notes						395,652						—						395,652						—
3.03% Borrowings from FHLBI						64,126						—						64,126						—
Total long-term debt						$	651,071					—						651,071						—

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