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Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

Carrying Value and Estimated Fair Value of Financial Instruments

A summary of the carrying value and estimated fair value of our financial instruments at March 31, 2019 and December 31, 2018 is as follows:

	March 31, 2019								December 31, 2018
	Fair Value				Carrying Value				Fair Value				Carrying Value
Assets
Investments
Fixed maturities:
Available-for-sale securities	$	1,730,563			$	1,730,563			$	1,749,488			$	1,749,488
Trading securities	16,409				16,409				13,240				13,240
Equity securities	269,843				269,843				248,361				248,361
Mortgage loans	34,856				34,209				26,021				25,782
Other long-term investments	40,929				40,929				37,077				37,077
Short-term investments	175				175				175				175
Cash and cash equivalents	95,536				95,536				64,454				64,454
Corporate-owned life insurance	5,708				5,708				4,907				4,907

Financial Instruments Measured at Fair Value on Recurring Basis

The following tables present the categorization for our financial instruments measured at fair value on a recurring basis. The table includes financial instruments at March 31, 2019 and December 31, 2018:

March 31, 2019					Fair Value Measurements
Description	Total				Level 1				Level 2				Level 3
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	$	26,691			$	—			$	26,691			$	—
U.S. government agency	189,541				—				189,541				—
States, municipalities and political subdivisions
General obligations
Midwest	88,679				—				88,679				—
Northeast	32,132				—				32,132				—
South	115,780				—				115,780				—
West	109,867				—				109,867				—
Special revenue
Midwest	143,129				—				143,129				—
Northeast	63,321				—				63,321				—
South	232,936				—				232,936				—
West	145,342				—				145,342				—
Foreign bonds	5,047				—				5,047				—
Public utilities	63,208				—				63,208				—
Corporate bonds
Energy	28,653				—				28,653				—
Industrials	54,278				—				54,278				—
Consumer goods and services	48,799				—				48,799				—
Health care	14,266				—				14,266				—
Technology, media and telecommunications	26,220				—				26,220				—
Financial services	92,573				—				92,323				250
Mortgage-backed securities	7,315				—				7,315				—
Collateralized mortgage obligations
Government national mortgage association	77,388				—				77,388				—
Federal home loan mortgage corporation	108,709				—				108,709				—
Federal national mortgage association	53,153				—				53,153				—
Asset-backed securities	3,536				—				2,835				701
Total Available-for-Sale Fixed Maturities	$	1,730,563			$	—			$	1,729,612			$	951
TRADING
Fixed maturities:
Bonds
U.S. Treasury	$	746			$	—			$	746			$	—
Corporate bonds
Industrials	399				—				399				—
Consumer goods and services	1,822				—				1,822				—
Health care	4,809				—				4,809				—

Technology, media and telecommunications	3,320				—				3,320				—
Financial services	1,840				—				1,840				—
Redeemable preferred stocks	3,473				3,473				—				—
Total Trading Securities	$	16,409			$	3,473			$	12,936			$	—
EQUITY SECURITIES
Common stocks
Public utilities	$	15,330			$	15,330			$	—			$	—
Energy	12,412				12,412				—				—
Industrials	61,773				61,773				—				—
Consumer goods and services	26,860				26,860				—				—
Health care	24,234				24,234				—				—
Technology, media and telecommunications	16,370				16,370				—				—
Financial services	108,216				108,216				—				—
Nonredeemable preferred stocks	4,648				4,053				—				595
Total Equity Securities	$	269,843			$	269,248			$	—			$	595
Short-Term Investments	$	175			$	175			$	—			$	—
Money Market Accounts	$	10,039			$	10,039			$	—			$	—
Corporate-Owned Life Insurance	$	5,708			$	—			$	5,708			$	—
Total Assets Measured at Fair Value	$	2,032,737			$	282,935			$	1,748,256			$	1,546

December 31, 2018					Fair Value Measurements
Description	Total				Level 1				Level 2				Level 3
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	$	27,418			$	—			$	27,418			$	—
U.S. government agency	214,682				—				214,682				—
States, municipalities and political subdivisions
General obligations
Midwest	95,212				—				95,212				—
Northeast	37,655				—				37,655				—
South	113,911				—				113,911				—
West	107,841				—				107,841				—
Special revenue
Midwest	140,764				—				140,764				—
Northeast	61,948				—				61,948				—
South	235,809				—				235,809				—
West	142,920				—				142,920				—
Foreign bonds	9,716				—				9,716				—
Public utilities	56,059				—				56,059				—
Corporate bonds
Energy	28,648				—				28,648				—
Industrials	53,085				—				53,085				—
Consumer goods and services	53,646				—				53,646				—
Health care	16,658				—				16,658				—
Technology, media and telecommunications	26,176				—				26,176				—
Financial services	79,349				—				79,099				250
Mortgage-backed securities	7,424				—				7,424				—
Collateralized mortgage obligations
Government national mortgage association	76,701				—				76,701				—
Federal home loan mortgage corporation	107,623				—				107,623				—
Federal national mortgage association	52,748				—				52,748				—
Asset-backed securities	3,495				—				2,829				666
Total Available-for-Sale Fixed Maturities	$	1,749,488			$	—			$	1,748,572			$	916
TRADING
Fixed maturities:
Bonds
Corporate bonds
Industrials	$	397			$	—			$	397			$	—
Consumer goods and services	1,599				—				1,599				—
Health care	3,236				—				3,236				—
Technology, media and telecommunications	3,028				—				3,028				—
Financial services	2,231				—				2,231				—

Redeemable preferred stocks	2,749				2,749				—				—
Total Trading Securities	$	13,240			$	2,749			$	10,491			—
EQUITY SECURITIES
Common Stocks
Public utilities	$	15,949			$	15,949			$	—			$	—
Energy	10,975				10,975				—				—
Industrials	53,536				53,536				—				—
Consumer goods and services	24,465				24,465				—				—
Health care	22,286				22,286				—				—
Technology, media and telecommunications	13,944				13,944				—				—
Financial services	101,555				101,555				—				—
Nonredeemable preferred stocks	5,651				5,056				—				595
Total Equity Securities	$	248,361			$	247,766			$	—			$	595
Short-Term Investments	$	175			$	175			$	—			$	—
Money Market Accounts	$	3,275			$	3,275			$	—			$	—
Corporate-Owned Life Insurance	$	4,907			$	—			$	4,907			$	—
Total Assets Measured at Fair Value	$	2,019,446			$	253,965			$	1,763,970			$	1,511

Changes in Fair Value of Level 3 Securities

The following table provides a summary of the changes in fair value of our Level 3 securities for the three-month period ended March 31, 2019:

	Corporate bonds				Asset-backed securities				Equities				Total
Balance at January 1, 2019	$	250			$	666			$	595			$	1,511
Net unrealized gains(1)	—				35				—				35
Balance at March 31, 2019	$	250			$	701			$	595			$	1,546

(1) Net unrealized gains are recorded as a component of comprehensive income.

Carrying Value of Commercial Mortgage Loans by Loan-to-Value Ratio

The following tables present the carrying value of our commercial mortgage loans and additional information at March 31, 2019 and December 31, 2018:

Commercial Mortgage Loans
	March 31, 2019				December 31, 2018
Loan-to-value	Carrying Value				Carrying Value
Less than 65%	$	25,775			$	25,828
65%-75%	8,496				—
Total amortized cost	$	34,271			$	25,828
Valuation allowance	(62		)		(46		)
Total mortgage loans	$	34,209			$	25,782

Mortgage Loans by Region
	March 31, 2019							December 31, 2018
	Carrying Value				Percent of Total			Carrying Value				Percent of Total
East North Central	$	3,245			9.5	%		$	3,244			12.6	%
Southern Atlantic	6,652				19.4			6,652				25.8
East South Central	4,937				14.4			4,975				19.3
New England	6,588				19.2			6,588				25.4
Middle Atlantic	12,849				37.5			4,369				16.9
Total mortgage loans at amortized cost	$	34,271			100.0	%		$	25,828			100.0	%

Mortgage Loans by Property Type
	March 31, 2019							December 31, 2018
	Carrying Value				Percent of Total			Carrying Value				Percent of Total
Commercial
Multifamily	$	3,245			9.5	%		$	3,244			12.6	%
Office	11,589				33.8			11,627				45.0
Mixed use/Other	19,437				56.7			10,957				42.4
Total mortgage loans at amortized cost	$	34,271			100.0	%		$	25,828			100.0	%

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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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