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Fair Value Measurement (Tables)

3 Months Ended

Mar. 31, 2017

Fair Value Disclosures [Abstract]

Assets and liabilities measured at fair value

Fair values of assets measured at fair value on a recurring basis as of March 31, 2017 and December 31, 2016 are shown in the following tables. Where applicable, the tables also indicate the fair value hierarchy of the valuation techniques utilized to determine those fair values. For some assets, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. When this is the case, the asset is categorized based on the level of the most significant input to the fair value measurement. Assessments of the significance of a particular input to the fair value measurement require judgment and consideration of factors specific to the assets being valued.

	March 31, 2017
	Fair Value Measurements Using												Total
(In thousands)	Level 1				Level 2				Level 3				Fair Value
Assets:
Fixed maturities, available for sale
U.S. Treasury obligations	$	—			$	148,211			$	—			$	148,211
U.S. Government-sponsored enterprise obligations	—				28,701				—				28,701
State and municipal bonds	—				770,061				—				770,061
Corporate debt, multiple observable inputs	2,395				1,284,664				—				1,287,059
Corporate debt, limited observable inputs	—				—				18,914				18,914
Residential mortgage-backed securities	—				207,906				—				207,906
Agency commercial mortgage-backed securities	—				12,688				—				12,688
Other commercial mortgage-backed securities	—				19,697				—				19,697
Other asset-backed securities	—				108,190				3,002				111,192
Equity securities
Financial	84,052				—				—				84,052
Utilities/Energy	51,304				—				—				51,304
Consumer oriented	60,686				—				—				60,686
Industrial	52,497				—				—				52,497
Bond funds	92,753				—				—				92,753
All other	49,914				—				—				49,914
Short-term investments	277,494				2,847				—				280,341
Other investments	1,270				27,805				903				29,978
Total assets categorized within the fair value hierarchy	$	672,365			$	2,610,770			$	22,819			3,305,954
LP/LLC interests carried at NAV which approximates fair value. These interests, reported as a part of Investment in unconsolidated subsidiaries, are not categorized within the fair value hierarchy.													199,696
Total assets at fair value													$	3,505,650

	December 31, 2016
	Fair Value Measurements Using												Total
(In thousands)	Level 1				Level 2				Level 3				Fair Value
Assets:
Fixed maturities, available for sale
U.S. Treasury obligations	$	—			$	146,539			$	—			$	146,539
U.S. Government-sponsored enterprise obligations	—				30,235				—				30,235
State and municipal bonds	—				800,463				—				800,463
Corporate debt, multiple observable inputs	2,339				1,261,842				—				1,264,181
Corporate debt, limited observable inputs	—				—				14,810				14,810
Residential mortgage-backed securities	—				217,906				—				217,906
Agency commercial mortgage-backed securities	—				12,783				—				12,783
Other commercial mortgage-backed securities	—				19,611				—				19,611
Other asset-backed securities	—				103,871				3,007				106,878
Equity securities
Financial	81,749				—				—				81,749
Utilities/Energy	52,869				—				—				52,869
Consumer oriented	61,284				—				—				61,284
Industrial	54,265				—				—				54,265
Bond funds	79,843				10,159				—				90,002
All other	27,181				19,924				—				47,105
Short-term investments	437,580				4,504				—				442,084
Other investments	1,956				29,542				3				31,501
Total assets categorized within the fair value hierarchy	$	799,066			$	2,657,379			$	17,820			3,474,265
LP/LLC interests carried at NAV which approximates fair value. These interests, reported as a part of Investment in unconsolidated subsidiaries, are not categorized within the fair value hierarchy.													204,719
Total assets at fair value													$	3,678,984

Summary of quantitative information about Level 3 fair value measurements

Quantitative Information Regarding Level 3 Valuations

		Fair Value at
(In thousands)		March 31, 2017		December 31, 2016		Valuation Technique		Unobservable Input		Range (Weighted Average)
Assets:
Corporate debt, limited observable inputs		$18,914		$14,810		Market Comparable Securities		Comparability Adjustment		0% - 5% (2.5%)
						Discounted Cash Flows		Comparability Adjustment		0% - 5% (2.5%)
Other asset-backed securities		$3,002		$3,007		Market Comparable Securities		Comparability Adjustment		0% - 5% (2.5%)
						Discounted Cash Flows		Comparability Adjustment		0% - 5% (2.5%)
Other investments		$903		$3		Discounted Cash Flows		Comparability Adjustment		0% - 10% (5%)

Summary of changes in the fair value of assets measured at fair value

The following tables (the Level 3 Tables) present summary information regarding changes in the fair value of assets measured at fair value using Level 3 inputs.

	March 31, 2017
	Level 3 Fair Value Measurements – Assets
(In thousands)	Corporate Debt				Asset-backed Securities				All other investments				Total
Balance December 31, 2016	$	14,810			$	3,007			$	3			$	17,820
Total gains (losses) realized and unrealized:
Included in earnings, as a part of:
Net investment income	(39		)		—				—				(39		)
Net realized investment gains (losses)	13				—				—				13
Included in other comprehensive income	(208		)		(5		)		2				(211		)
Purchases	7,048				—				—				7,048
Sales	(1,712		)		—				—				(1,712		)
Transfers in	—				—				898				898
Transfers out	(998		)		—				—				(998		)
Balance March 31, 2017	$	18,914			$	3,002			$	903			$	22,819
Change in unrealized gains (losses) included in earnings for the above period for Level 3 assets held at period-end	$	—			$	—			$	—			$	—

	March 31, 2016
	Level 3 Fair Value Measurements – Assets
(In thousands)	Corporate Debt				Asset-backed Securities				All other investments				Total
Balance December 31, 2015	$	14,500			$	757			$	—			$	15,257
Total gains (losses) realized and unrealized:
Included in earnings, as a part of:
Net investment income	(14		)		—				(1		)		(15		)
Net realized investment gains (losses)	(75		)		—				—				(75		)
Included in other comprehensive income	(75		)		(2		)		(1		)		(78		)
Purchases	—				3,500				1,560				5,060
Sales	(681		)		(167		)		—				(848		)
Transfers in	—				—				—				—
Transfers out	(6		)		—				—				(6		)
Balance March 31, 2016	$	13,649			$	4,088			$	1,558			$	19,295
Change in unrealized gains (losses) included in earnings for the above period for Level 3 assets held at period-end	$	—			$	—			$	—			$	—

Investments in Limited liability companies and limited partnerships

Investments in unconsolidated subsidiaries at both March 31, 2017 and December 31, 2016 included interests in investment fund LPs/LLCs that measure fund assets at fair value on a recurring basis and that provide a NAV for the interest. The carrying value of these interests is based on the NAV provided and was considered to approximate the fair value of the interests. In accordance with GAAP, the fair value of these investments was not classified within the fair value hierarchy. Additional information regarding these investments is as follows:

	Unfunded Commitments		Fair Value
(In thousands)	March 31, 2017		March 31, 2017				December 31, 2016
Investments in LPs/LLCs:
Private debt funds (1)	$11,972		$	51,307			$	55,637
Long equity fund (2)	None		6,770				6,268
Long/short equity funds (3)	None		29,944				28,926
Non-public equity funds (4)	$55,334		86,506				89,691
Multi-strategy fund of funds (5)	None		8,668				8,448
Structured credit fund (6)	None		4,466				4,273
Long/short commodities fund (7)	None		12,035				11,476
			$	199,696			$	204,719

⁽¹⁾  The investment is comprised of interests in two unrelated LP funds that are structured to provide interest distributions primarily through diversified portfolios of private debt instruments. One LP allows redemption by special consent; the other does not permit redemption. Income and capital are to be periodically distributed at the discretion of the LPs over an anticipated time frame that spans from three to eight years.

⁽²⁾  The fund is a LP that holds long equities of public international companies. Redemptions are allowed at the end of any calendar month with a prior notice requirement of 15 days and are paid within 10 days of the end of the calendar month of the redemption request.

⁽³⁾  The investment is comprised of interests in multiple unrelated LP funds. The funds hold primarily long and short North American equities and target absolute returns using strategies designed to take advantage of market opportunities. The funds generally permit quarterly or semi-annual capital redemptions subject to notice requirements of 30 to 90 days. For some funds, redemptions above specified thresholds (lowest threshold is 90%) may be only partially payable until after a fund audit is completed and are then payable within 30 days.

⁽⁴⁾  The investment is comprised of interests in multiple unrelated LP funds, each structured to provide capital appreciation through diversified investments in private equity, which can include investments in buyout, venture capital, mezzanine debt, distressed debt, and other private equity-oriented LPs. Two of the LPs allow redemption by terms set forth in the LP agreements; the others do not permit redemption. Income and capital are to be periodically distributed at the discretion of the LP over time frames that are anticipated to span up to nine years.

⁽⁵⁾  This fund is a LLC structured to build and manage low volatility, multi-manager portfolios that have little or no correlation to the broader fixed income and equity security markets. Redemptions are not permitted but offers to repurchase units of the LLC may be extended periodically.

⁽⁶⁾  This fund is a LP seeking to obtain superior risk-adjusted absolute returns by acquiring and actively managing a diversified portfolio of debt securities, including bonds, loans and other asset-backed instruments. Redemptions are allowed at any quarter-end with a prior notice requirement of 90 days.

⁽⁷⁾  This fund is a LLC invested across a broad range of commodities and focuses primarily on market neutral, relative value strategies, seeking to generate absolute returns with low correlation to broad commodity, equity and fixed income markets. Following an initial one year lock-up period, redemptions are allowed with a prior notice requirement of 30 days and are payable within 30 days.

Financial instruments not measured at fair value

The following table provides the estimated fair value of our financial instruments that, in accordance with GAAP for the type of investment, are measured using a methodology other than fair value. All fair values provided fall within the Level 3 fair value category.

	March 31, 2017								December 31, 2016
(In thousands)	Carrying Value				Fair Value				Carrying Value				Fair Value
Financial assets:
BOLI	$	60,589			$	60,589			$	60,134			$	60,134
Other investments	$	50,598			$	62,061			$	50,391			$	58,757
Other assets	$	29,196			$	29,072			$	29,111			$	28,960
Financial liabilities:
Senior notes due 2023	$	250,000			$	274,315			$	250,000			$	270,898
Revolving Credit Agreement	$	200,000			$	200,000			$	200,000			$	200,000
Other liabilities	$	17,855			$	17,855			$	17,033			$	17,011

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- Definition

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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