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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Schedule of Carrying Values and Estimated Fair Values of Financial Liabilities

						September 30, 2023												December 31, 2022
($ in thousands)						Carrying Amount						Fair Value						Carrying Amount						Fair Value
Financial Liabilities
Long-term debt:
7.25% Senior Notes						$	49,925					50,293						49,921						51,705
6.70% Senior Notes						99,559						98,175						99,542						99,264
5.375% Senior Notes						294,497						254,421						294,424						258,459
3.03% borrowings from FHLBI						60,000						56,580						60,000						57,175
Subtotal long-term debt						503,981						459,469						503,887						466,603
Unamortized debt issuance costs						(2,759)												(2,929)
Finance lease obligations						3,369												3,718
Total long-term debt						$	504,591											504,676

Schedule of Quantitative Disclosures of Our Financial Assets That Were Measured At Fair Value

September 30, 2023												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						$	226,729					67,185						159,544						—
Foreign government						9,316						—						9,316						—
Obligations of states and political subdivisions						614,751						—						608,108						6,643
Corporate securities						2,440,135						—						2,179,656						260,479
CLO and other ABS						1,713,715						—						1,503,308						210,407
RMBS						1,384,459						—						1,384,459						—
CMBS						637,999						—						637,655						344
Total AFS fixed income securities						7,027,104						67,185						6,482,046						477,873
Equity securities:
Common stock1						123,942						19,041						—						933
Preferred stock						1,676						1,676						—						—
Total equity securities						125,618						20,717						—						933
Short-term investments						315,026						303,193						11,833						—
Total assets measured at fair value						$	7,467,748					391,095						6,493,879						478,806

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

1Investments amounting to $104.0 million at September 30, 2023, and $103.6 million at December 31, 2022, 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

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

September 30, 2023
($ in thousands)									Obligations of States and Political Subdivisions						Corporate Securities						CLO and Other ABS												CMBS						Common Stock						Total
Fair value, December 31, 2022									$	6,661					187,980						153,342												375						897						349,255
Total net gains (losses) for the period included in:
Other comprehensive income (loss) ("OCI")									(80)						(517)						(2,433)												35						—						(2,995)
Net realized and unrealized gains (losses)									62						289						(110)												—						(157)						84
Net investment income earned									—						359						(12)												(264)						—						83
Purchases									—						77,567						60,015												—						—						137,582
Sales									—						—						—												—						—						—
Issuances									—						—						—												—						—						—
Settlements									—						(7,437)						(4,343)												(24)						—						(11,804)
Transfers into Level 3									—						2,238						14,148												2,848						193						19,427
Transfers out of Level 3									—						—						(10,200)												(2,626)						—						(12,826)
Fair value, September 30, 2023									$	6,643					260,479						210,407												344						933						478,806
Change in unrealized gains (losses) for the period included in earnings for assets held at period end									62						289						(110)												—						(157)						84
Change in unrealized gains (losses) for the period included in OCI for assets held at period end									(80)						(528)						(2,433)												35						—						(3,006)

September 30, 2022
($ in thousands)			Obligation of state and Political Subdivisions						Corporate Securities						CLO and Other ABS						RMBS						CMBS						Total
Fair value, December 31, 2021			$	7,745					114,127						124,909						245						4,256						251,282
Total net gains (losses) for the period included in:
OCI			(879)						(23,847)						(11,436)						(17)						(477)						(36,656)
Net realized and unrealized gains (losses)			(155)						(2,345)						(771)						—						(7)						(3,278)
Net investment income earned			—						49						127						—						46						222
Purchases			—						74,327						44,167						—						—						118,494
Sales			—						—						—						—						—						—
Issuances			—						—						—						—						—						—
Settlements			—						(8,663)						(6,678)						(11)						(15)						(15,367)
Transfers into Level 3			—						19,214						—						—						—						19,214
Transfers out of Level 3			—						(7,038)						(24,646)						(217)						(3,430)						(35,331)
Fair value, September 30, 2022			$	6,711					165,824						125,672						—						373						298,580
Change in unrealized gains (losses) for the period included in earnings for assets held at period end			(155)						(2,330)						(771)						—						(7)						(3,263)
Change in unrealized gains (losses) for the period included in OCI for assets held at period end			(879)						(23,852)						(11,395)						(17)						(477)						(36,620)

Fair Value Measurement Inputs and Valuation Techniques

September 30, 2023

($ in thousands)

Assets Measured at Fair Value

Valuation Techniques

Unobservable Inputs

Range

Weighted Average

Internal valuations:

Corporate securities

$

121,401

Discounted Cash Flow

Illiquidity Spread

(4.4)% - 5.3%

2.1%

CLO and other ABS

98,801

Discounted Cash Flow

Illiquidity Spread

0.01% - 19.6%

2.6%

Total internal valuations

220,202

Other1

258,604

Total Level 3 securities

$

478,806

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

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 are 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

September 30, 2023												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:
Corporate securities						$	21,892					—						21,892						—
Total HTM fixed income securities						21,892						—						21,892						—
CMLs						$	171,386					—						—						171,386
Financial Liabilities
Long-term debt:
7.25% Senior Notes						$	50,293					—						50,293						—
6.70% Senior Notes						98,175						—						98,175						—
5.375% Senior Notes						254,421						—						254,421						—
3.03% borrowings from FHLBI						56,580						—						56,580						—
Total long-term debt						$	459,469					—						459,469						—

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						—

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Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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