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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Schedule of Carrying Values and Estimated Fair Values of Financial Liabilities

The following table presents the carrying amounts and fair values of our financial liabilities as of March 31, 2024, and December 31, 2023:

						March 31, 2024												December 31, 2023
($ in thousands)						Carrying Amount						Fair Value						Carrying Amount						Fair Value
Financial Liabilities
Long-term debt:
7.25% Senior Notes						$	49,927					51,137						49,926						53,047
6.70% Senior Notes						99,571						101,666						99,565						104,039
5.375% Senior Notes						294,548						286,927						294,523						288,787
3.03% borrowings from FHLBI						60,000						57,568						60,000						57,932
Subtotal long-term debt						504,046						497,298						504,014						503,805
Unamortized debt issuance costs						(2,650)												(2,704)
Finance lease obligations						1,909												2,636
Total long-term debt						$	503,305											503,946

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables provide quantitative disclosures of our financial assets that were measured and recorded at fair value at March 31, 2024, and December 31, 2023:

March 31, 2024												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						$	141,826					33,530						108,296						—
Foreign government						9,229						—						9,229						—
Obligations of states and political subdivisions						538,986						—						531,239						7,747
Corporate securities						2,795,050						—						2,507,554						287,496
CLO and other ABS						1,897,085						—						1,636,988						260,097
RMBS						1,511,959						—						1,511,959						—
CMBS						689,369						—						689,014						355
Total AFS fixed income securities						7,583,504						33,530						6,994,279						555,695
Equity securities:
Common stock1						192,510						36,333						—						1,067
Preferred stock						1,810						1,810						—						—
Total equity securities						194,320						38,143						—						1,067
Short-term investments						247,883						246,904						979						—
Total assets measured at fair value						$	8,025,707					318,577						6,995,258						556,762

December 31, 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						$	205,035					34,056						170,979						—
Foreign government						9,803						—						9,803						—
Obligations of states and political subdivisions						585,965						—						578,131						7,834
Corporate securities						2,711,239						—						2,413,907						297,332
CLO and other ABS						1,834,827						—						1,589,514						245,313
RMBS						1,477,483						—						1,477,483						—
CMBS						674,845						—						674,489						356
Total AFS fixed income securities						7,499,197						34,056						6,914,306						550,835
Equity securities:
Common stock1						185,339						20,582						—						854
Preferred stock						1,816						1,816						—						—
Total equity securities						187,155						22,398						—						854
Short-term investments						309,317						308,512						805						—
Total assets measured at fair value						$	7,995,669					364,966						6,915,111						551,689

1Investments amounting to $155.1 million at March 31, 2024, and $163.9 million at December 31, 2023, 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

The following tables provide a summary of Level 3 changes in First Quarter 2024 and First Quarter 2023:

March 31, 2024
($ in thousands)									Obligations of States and Political Subdivisions						Corporate Securities						CLO and Other ABS												CMBS						Common Stock						Total
Fair value, December 31, 2023									$	7,834					297,332						245,313												356						854						551,689
Total net gains (losses) for the period included in:
Other comprehensive income (loss) ("OCI")									(86)						(376)						399												3						—						(60)
Net realized and unrealized gains (losses)									(1)						140						57												—						213						409
Net investment income earned									—						280						(1)												(1)						—						278
Purchases									—						1,152						14,658												—						—						15,810
Sales									—						—						—												—						—						—
Issuances									—						—						—												—						—						—
Settlements									—						(2,870)						(1,173)												(3)						—						(4,046)
Transfers into Level 3									—						20,065						19,537												—						—						39,602
Transfers out of Level 3									—						(28,227)						(18,693)												—						—						(46,920)
Fair value, March 31, 2024									$	7,747					287,496						260,097												355						1,067						556,762
Change in unrealized gains (losses) for the period included in earnings for assets held at period end									(1)						140						57												—						213						409
Change in unrealized gains (losses) for the period included in OCI for assets held at period end									(86)						(376)						399												3						—						(60)

March 31, 2023
($ in thousands)			Obligation of state 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:
OCI			152						2,405						696												17						—						3,270
Net realized and unrealized gains (losses)			61						72						(73)												—						(269)						(209)
Net investment income earned			—						12						(32)												(1)						—						(21)
Purchases			—						24,799						13,403												—						—						38,202
Sales			—						—						—												—						—						—
Issuances			—						—						—												—						—						—
Settlements			—						(4,044)						(1,192)												(3)						—						(5,239)
Transfers into Level 3			—						361						14,148												2,848						—						17,357
Transfers out of Level 3			—						—						(534)												—						—						(534)
Fair value, March 31, 2023			$	6,874					211,585						179,758												3,236						628						402,081
Change in unrealized gains (losses) for the period included in earnings for assets held at period end			61						72						(73)												—						(269)						(209)
Change in unrealized gains (losses) for the period included in OCI for assets held at period end			152						2,405						696												17						—						3,270

Schedule of Fair Value Measurement Inputs and Valuation Techniques

The following tables present quantitative information about the significant unobservable inputs used in the fair value measurements of Level 3 assets at March 31, 2024, and December 31, 2023:

March 31, 2024

($ in thousands)

Assets Measured at Fair Value

Valuation Techniques

Unobservable Inputs

Range

Weighted Average

Internal valuations:

Corporate securities

$

155,633

Discounted Cash Flow

Illiquidity Spread

(4.4)% - 5.3%

1.8%

CLO and other ABS

155,287

Discounted Cash Flow

Illiquidity Spread

0.01% - 19.6%

2.4%

Total internal valuations

310,920

Other1

245,842

Total Level 3 securities

$

556,762

December 31, 2023

($ in thousands)

Assets Measured at Fair Value

Valuation Techniques

Unobservable Inputs

Range

Weighted Average

Internal valuations:

Corporate securities

$

135,524

Discounted Cash Flow

Illiquidity Spread

(4.4)% - 5.3%

1.9%

CLO and other ABS

127,210

Discounted Cash Flow

Illiquidity Spread

0.01% - 19.6%

2.4%

Total internal valuations

262,734

Other1

288,955

Total Level 3 securities

$

551,689

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 Financial Assets and Liabilities, Disclosed at Fair Value

The following tables provide quantitative information about our financial assets and liabilities that were not measured at fair value, but were disclosed as such at March 31, 2024, and December 31, 2023:

March 31, 2024												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						$	19,183					—						19,183						—
Total HTM fixed income securities						19,183						—						19,183						—
CMLs						$	197,807					—						—						197,807
Financial Liabilities
Long-term debt:
7.25% Senior Notes						$	51,137					—						51,137						—
6.70% Senior Notes						101,666						—						101,666						—
5.375% Senior Notes						286,927						—						286,927						—
3.03% borrowings from FHLBI						57,568						—						57,568						—
Total long-term debt						$	497,298					—						497,298						—

December 31, 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						21,923						—						21,923						—
Total HTM fixed income securities						$	21,923					—						21,923						—
CMLs						$	178,913					—						—						178,913
Financial Liabilities
Long-term debt:
7.25% Senior Notes						$	53,047					—						53,047						—
6.70% Senior Notes						104,039						—						104,039						—
5.375% Senior Notes						288,787						—						288,787						—
3.03% borrowings from FHLBI						57,932						—						57,932						—
Total long-term debt						$	503,805					—						503,805						—

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Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

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