Fair Values of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2014

Summary of Carrying Values and Corresponding Fair Values for Financial Instruments

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


	December 31,
	2014				2013
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(in thousands)
Assets:
Fixed maturity securities—held to maturity	$	639,631	$	664,371	$	536,583	$	561,179
Fixed maturity securities—available for sale		331,242		331,242		237,877		237,877
Equity securities		28		28		9,302		9,302
Cash and cash equivalents		90,956		90,956		123,077		123,077
Short-term investments		33,684		33,684		84,422		84,422
Other investments		11,748		11,748		10,591		10,591

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

Assets and liabilities measured at fair value on a recurring basis as of December 31, 2014 and 2013 are as follows:


	December 31, 2014
	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	$	—	$	—	$	11,748	$	11,748
Securities available for sale—equity:
Domestic common stock		28		—		—		28
Securities available for sale—fixed maturity:
States and political subdivisions		—		157,374		—		157,374
U.S. agency-based mortgage-backed securities		—		8,498		—		8,498
Corporate bonds		—		165,370		—		165,370

Total available for sale—fixed maturity	$	—	$	331,242	$	—	$	331,242

Total available for sale	$	28	$	331,242	$	11,748	$	343,018


	December 31, 2013
	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
U.S. agency-based mortgage-backed securities		—		7,074		—		7,074
Corporate bonds		—		80,428		—		80,428

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

Assets and liabilities measured at amortized cost as of December 31, 2014 and 2013 are as follows:


	December 31, 2014
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
	(in thousands)
Securities held-to-maturity—fixed maturity:
States and political subdivisions	$	—	$	405,665	$	—	$	405,665
Corporate bonds		—		176,734		—		176,734
Commercial mortgage-backed securities		—		48,529		—		48,529
U.S. agency-based mortgage-backed securities		—		18,672		—		18,672
U.S. Treasury securities		11,792		—		—		11,792
Asset-backed securities		—		2,979		—		2,979

Total held-to-maturity	$	11,792	$	652,579	$	—	$	664,371


	December 31, 2013
	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 the 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 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.


	December 31, 2014		December 31, 2013
	(in thousands)
Balance at beginning of year	$	10,591	$	—
Purchases		—		10,000
Total gains unrealized (included in earnings as part of net investment income)		1,157		591

Balance at end of year	$	11,748	$	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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