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Fair Value Measurements
 9 Months Ended
Sep. 30, 2024
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 fair values of our financial liabilities as of September 30, 2024, and December 31, 2023:

September 30, 2024December 31, 2023
($ in thousands)Carrying AmountFair ValueCarrying AmountFair Value
Financial Liabilities
Long-term debt:
7.25% Senior Notes
$49,929 54,828 49,926 53,047 
6.70% Senior Notes
99,584 106,814 99,565 104,039 
5.375% Senior Notes
294,600 296,608 294,523 288,787 
3.03% borrowings from FHLBI
60,000 59,060 60,000 57,932 
Subtotal long-term debt504,113 517,310 504,014 503,805 
Unamortized debt issuance costs(2,544)(2,704)
Finance lease obligations6,668 2,636 
Total long-term debt$508,237 503,946 
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 2023 Annual Report.

The following tables provide quantitative disclosures of our financial assets that were measured and recorded at fair value at September 30, 2024, and December 31, 2023:

September 30, 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$125,402 36,523 88,879 — 
Foreign government9,662 — 9,662 — 
Obligations of states and political subdivisions492,856 — 485,125 7,731 
Corporate securities3,026,785 — 2,777,246 249,539 
CLO and other ABS1,946,393 — 1,638,175 308,218 
RMBS1,740,009 — 1,740,009 — 
CMBS747,494 — 747,132 362 
Total AFS fixed income securities8,088,601 36,523 7,486,228 565,850 
Equity securities:
Common stock1
203,733 34,578 — 875 
Preferred stock1,901 1,901 — — 
Total equity securities205,634 36,479 — 875 
Short-term investments561,032 512,553 48,479 — 
Total assets measured at fair value$8,855,267 585,555 7,534,707 566,725 

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 government9,803 — 9,803 — 
Obligations of states and political subdivisions585,965 — 578,131 7,834 
Corporate securities2,711,239 — 2,413,907 297,332 
CLO and other ABS1,834,827 — 1,589,514 245,313 
RMBS1,477,483 — 1,477,483 — 
CMBS674,845 — 674,489 356 
Total AFS fixed income securities7,499,197 34,056 6,914,306 550,835 
Equity securities:
Common stock1
185,339 20,582 — 854 
Preferred stock1,816 1,816 — — 
Total equity securities187,155 22,398 — 854 
Short-term investments309,317 308,512 805 — 
Total assets measured at fair value$7,995,669 364,966 6,915,111 551,689 
1Investments amounting to $168.3 million at September 30, 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.
The following tables provide a summary of Level 3 changes in Nine Months 2024 and Nine Months 2023:

September 30, 2024
($ in thousands)Obligations of States and Political SubdivisionsCorporate SecuritiesCLO and Other ABSRMBSCMBSCommon StockTotal
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")25 13,716 4,058 77 15 — 17,891 
   Net realized and unrealized gains (losses)(60)556 (242)— — 21 275 
Net investment income earned— (443)191 1 (2)— (253)
Purchases— 22,611 98,789 4,888 — — 126,288 
Sales— — — — — — — 
Issuances— — — — — — — 
Settlements(68)(22,005)(28,560)(255)(7)— (50,895)
Transfers into Level 3— 28,896 19,671 — — — 48,567 
Transfers out of Level 3— (91,124)(31,002)(4,711)— — (126,837)
Fair value, September 30, 2024
$7,731 249,539 308,218 — 362 875 566,725 
Change in unrealized gains (losses) for the period included in earnings for assets held at period end(60)568 (242)— — 213 479 
Change in unrealized gains (losses) for the period included in OCI for assets held at period end25 13,305 4,636 77 15 — 18,058 

September 30, 2023
($ in thousands)Obligation of state and Political SubdivisionsCorporate SecuritiesCLO and Other ABSCMBSCommon StockTotal
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(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 end62 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)

The following tables present quantitative information about the significant unobservable inputs used in the fair value measurements of Level 3 assets at September 30, 2024, and December 31, 2023:

September 30, 2024
($ in thousands)Assets Measured at Fair ValueValuation TechniquesUnobservable InputsRange Weighted Average
Internal valuations:
Corporate securities$154,935 
Discounted Cash Flow
Illiquidity Spread
(4.4)% - 5.3%
1.7%
CLO and other ABS198,748 
Discounted Cash Flow
Illiquidity Spread
(0.97)% - 19.6%
2.3%
Total internal valuations353,683 
Other1
213,042 
Total Level 3 securities$566,725 
December 31, 2023
($ in thousands)Assets Measured at Fair ValueValuation TechniquesUnobservable InputsRangeWeighted Average
Internal valuations:
Corporate securities$135,524 Discounted Cash FlowIlliquidity Spread
(4.4)% - 5.3%
1.9%
CLO and other ABS127,210 Discounted Cash FlowIlliquidity Spread
0.01% - 19.6%
2.4%
Total internal valuations262,734 
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.

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 about our financial assets and liabilities that were not measured at fair value, but were disclosed as such at September 30, 2024, and December 31, 2023:

September 30, 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$21,440 — 21,440 — 
Total HTM fixed income securities21,440 — 21,440 — 
CMLs$218,599 — — 218,599 
Financial Liabilities    
Long-term debt:
7.25% Senior Notes
$54,828 — 54,828 — 
6.70% Senior Notes
106,814 — 106,814 — 
5.375% Senior Notes
296,608 — 296,608 — 
3.03% borrowings from FHLBI
59,060 — 59,060 — 
Total long-term debt$517,310 — 517,310 — 

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 securities21,923 — 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 —