Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2014

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

At September 30, 2014, assets and liabilities measured at fair value on a recurring basis are summarized below:


	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
	(in thousands)
Financial instruments carried at fair value, classified as a part of:
Other investments	$	—	$	—	$	11,228	$	11,228
Securities available for sale—equity:
Domestic common stock		3,598		—		—		3,598
Securities available for sale—fixed maturity:
States and political subdivisions		—		156,789		—		156,789
Corporate bonds		—		152,670		—		152,670
U.S. agency-based mortgage-backed securities		—		7,819		—		7,819

Total securities available for sale—fixed maturity		—		317,278		—		317,278

Total available for sale	$	3,598	$	317,278	$	11,228	$	332,104

At December 31, 2013, assets and liabilities measured at fair value on a recurring basis are summarized below:


	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
	(in thousands)
Financial instruments carried at fair value, classified as part of:
Other investments	$	—	$	—	$	10,591	$	10,591
Securities available for sale—equity
Domestic common stock		9,302		—		—		9,302
Securities available for sale—fixed maturity
States and political subdivisions		—		150,375		—		150,375
Corporate bonds		—		80,428		—		80,428
U.S. agency-based mortgage-backed securities		—		7,074		—		7,074

Total available for sale—fixed maturity		—	$	237,877	$	—	$	237,877

Total available for sale	$	9,302	$	237,877	$	10,591	$	257,770

Schedule of Assets and Liabilities Measured at Amortized Cost

At September 30, 2014, assets and liabilities measured at amortized cost are summarized below:


	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
	(in thousands)
Securities held-to-maturity—fixed maturity
States and political subdivisions	$	—	$	395,927	$	—	$	395,927
Corporate bonds		—		145,273		—		145,273
Commercial mortgage-backed securities		—		50,028		—		50,028
U.S. agency-based mortgage-backed securities		—		19,747		—		19,747
U.S. Treasury securities		11,718		—		—		11,718
Asset-backed securities		—		3,090		—		3,090

Total held-to-maturity	$	11,718	$	614,065	$	—	$	625,783

At December 31, 2013, assets and liabilities measured at amortized cost are summarized below:


	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
	(in thousands)
Securities held-to-maturity—fixed maturity
States and political subdivisions	$	—	$	399,155	$	—	$	399,155
Corporate bonds		—		68,243		—		68,243
Commercial mortgage-backed securities		—		54,244		—		54,244
U.S. agency-based mortgage-backed securities		—		23,565		—		23,565
U.S. Treasury securities		6,602		—		—		6,602
Obligations of U.S. Government agencies		—		5,914		—		5,914
Asset-backed securities		—		3,456		—		3,456

Total held-to-maturity	$	6,602	$	554,577	$	—	$	561,179

Summary of Carrying Values and Corresponding Fair Values for Financial Instruments

The following table summarizes the carrying values and corresponding fair values for financial instruments:


	As of September 30, 2014				As of December 31, 2013
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(in thousands)
Assets:
Fixed maturity securities—held-to-maturity	$	599,087	$	625,783	$	536,583	$	561,179
Fixed maturity securities—available-for-sale		317,278		317,278		237,877		237,877
Equity securities		3,598		3,598		9,302		9,302
Cash and cash equivalents		118,544		118,544		123,077		123,077
Short-term investments		42,411		42,411		84,422		84,422
Other investments		11,228		11,228		10,591		10,591

Summary of Changes in Fair Value of Assets Measured at Fair value

The following table presents summary information regarding changes in the fair value of assets measured at fair value using Level 3 input.


	September 30, 2014		December 31, 2013
	(in thousands)
Beginning balance	$	10,591	$	—
Purchases		—		10,000
Total unrealized gains		637		591

Ending balance	$	11,228	$	10,591

- 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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- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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