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Fair Value of Financial Instruments (Tables) | 3 Months Ended
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Mar. 31, 2021
Fair Value Disclosures [Abstract] |
Summary of 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, 2021 and December 31, 2020 is as follows:
| March 31, 2021 |  | December 31, 2020
| Fair Value |  | Carrying Value |  | Fair Value |  | Carrying Value
Assets |  |  |  |  |  |  |
Investments |  |  |  |  |  |  |
Fixed maturities: |  |  |  |  |  |  |
Available-for-sale securities | $ | 1,816,939 |  |  | $ | 1,816,765 |  |  | $ | 1,825,443 |  |  | $ | 1,825,438 |
Equity securities | 193,263 |  |  | 193,263 |  |  | 206,685 |  |  | 206,685 |
Mortgage loans | 48,129 |  |  | 47,494 |  |  | 48,932 |  |  | 47,614 |
Other long-term investments | 77,816 |  |  | 77,816 |  |  | 69,305 |  |  | 69,305 |
Short-term investments | 804 |  |  | 804 |  |  | 175 |  |  | 175 |
Cash and cash equivalents | 71,514 |  |  | 71,514 |  |  | 87,948 |  |  | 87,948 |
Corporate-owned life insurance | 9,188 |  |  | 9,188 |  |  | 8,557 |  |  | 8,557 |
Liabilities |  |  |  |  |  |  |
Long Term Debt | 46,683 |  |  | 50,000 |  |  | 50,000 |  |  | 50,000 |
Summary of 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, 2021 and December 31, 2020:
March 31, 2021 |  |  | Fair Value Measurements
Description | Total |  | Level 1 |  | Level 2 |  | Level 3
AVAILABLE-FOR-SALE |  |  |  |  |  |  |
Fixed maturities: |  |  |  |  |  |  |
Bonds |  |  |  |  |  |  |
U.S. Treasury | $ | 70,092 |  |  | $ | — |  |  | $ | 70,092 |  |  | $ | — |
U.S. government agency | 88,157 |  |  | — |  |  | 88,157 |  |  | — |
States, municipalities and political subdivisions |  |  |  |  |  |  |
General obligations |  |  |  |  |  |  |
Midwest | 71,529 |  |  | — |  |  | 71,529 |  |  | — |
Northeast | 30,099 |  |  | — |  |  | 30,099 |  |  | — |
South | 99,188 |  |  | — |  |  | 99,188 |  |  | — |
West | 103,501 |  |  | — |  |  | 103,501 |  |  | — |
Special revenue |  |  |  |  |  |  |
Midwest | 131,658 |  |  | — |  |  | 131,658 |  |  | — |
Northeast | 60,165 |  |  | — |  |  | 60,165 |  |  | — |
South | 226,730 |  |  | — |  |  | 226,730 |  |  | — |
West | 140,086 |  |  | — |  |  | 140,086 |  |  | — |
Foreign bonds | 27,409 |  |  | — |  |  | 27,409 |  |  | — |
Public utilities | 100,133 |  |  | — |  |  | 100,133 |  |  | — |
Corporate bonds |  |  |  |  |  |  |
Energy | 26,407 |  |  | — |  |  | 26,407 |  |  | — |
Industrials | 55,581 |  |  | — |  |  | 55,581 |  |  | — |
Consumer goods and services | 68,505 |  |  | — |  |  | 68,505 |  |  | — |
Health care | 28,499 |  |  | — |  |  | 28,499 |  |  | — |
Technology, media and telecommunications | 67,934 |  |  | — |  |  | 67,934 |  |  | — |
Financial services | 106,019 |  |  | — |  |  | 105,869 |  |  | 150 |
Mortgage-backed securities | 26,300 |  |  | — |  |  | 26,300 |  |  | — |
Collateralized mortgage obligations |  |  |  |  |  |  |
Government national mortgage association | 86,644 |  |  | — |  |  | 86,644 |  |  | — |
Federal home loan mortgage corporation | 139,532 |  |  | — |  |  | 139,532 |  |  | — |
Federal national mortgage association | 61,923 |  |  | — |  |  | 61,923 |  |  | — |
Asset-backed securities | 848 |  |  | — |  |  | — |  |  | 848 |
Total Available-for-Sale Fixed Maturities | $ | 1,816,939 |  |  | $ | — |  |  | $ | 1,815,941 |  |  | $ | 998 |
EQUITY SECURITIES |  |  |  |  |  |  |
Common stocks |  |  |  |  |  |  |
Public utilities | $ | 16,695 |  |  | $ | 16,695 |  |  | $ | — |  |  | $ | — |
Energy | 8,194 |  |  | 8,194 |  |  | — |  |  | — |
Industrials | 38,430 |  |  | 38,430 |  |  | — |  |  | — |
Consumer goods and services | 40,056 |  |  | 40,056 |  |  | — |  |  | — |
Health care | 18,316 |  |  | 18,316 |  |  | — |  |  | — |
Technology, media and telecommunications | 17,749 |  |  | 17,749 |  |  | — |  |  | — |
Financial services | 53,228 |  |  | 53,228 |  |  | — |  |  | — |
Nonredeemable preferred stocks | 595 |  |  | — |  |  | — |  |  | 595 |
Total Equity Securities | $ | 193,263 |  |  | $ | 192,668 |  |  | $ | — |  |  | $ | 595 |
Short-Term Investments | $ | 804 |  |  | $ | 804 |  |  | $ | — |  |  | $ | — |
Money Market Accounts | $ | 41,378 |  |  | $ | 41,378 |  |  | $ | — |  |  | $ | — |
Corporate-Owned Life Insurance | $ | 9,188 |  |  | $ | — |  |  | $ | 9,188 |  |  | $ | — |
Total Assets Measured at Fair Value | $ | 2,061,572 |  |  | $ | 234,850 |  |  | $ | 1,825,129 |  |  | $ | 1,593 |
December 31, 2020 |  |  | Fair Value Measurements
Description | Total |  | Level 1 |  | Level 2 |  | Level 3
AVAILABLE-FOR-SALE |  |  |  |  |  |  |
Fixed maturities: |  |  |  |  |  |  |
Bonds |  |  |  |  |  |  |
U.S. Treasury | $ | 149,938 |  |  | $ | — |  |  | $ | 149,938 |  |  | $ | — |
U.S. government agency | 64,518 |  |  | — |  |  | 64,518 |  |  | — |
States, municipalities and political subdivisions |  |  |  |  |  |  |
General obligations |  |  |  |  |  |  |
Midwest | 81,980 |  |  | — |  |  | 81,980 |  |  | — |
Northeast | 30,450 |  |  | — |  |  | 30,450 |  |  | — |
South | 109,970 |  |  | — |  |  | 109,970 |  |  | — |
West | 110,021 |  |  | — |  |  | 110,021 |  |  | — |
Special revenue |  |  |  |  |  |  |
Midwest | 125,098 |  |  | — |  |  | 125,098 |  |  | — |
Northeast | 61,076 |  |  | — |  |  | 61,076 |  |  | — |
South | 226,706 |  |  | — |  |  | 226,706 |  |  | — |
West | 139,399 |  |  | — |  |  | 139,399 |  |  | — |
Foreign bonds | 29,602 |  |  | — |  |  | 29,602 |  |  | — |
Public utilities | 83,502 |  |  | — |  |  | 83,502 |  |  | — |
Corporate bonds |  |  |  |  |  |  |
Energy | 25,336 |  |  | — |  |  | 25,336 |  |  | — |
Industrials | 43,257 |  |  | — |  |  | 43,257 |  |  | — |
Consumer goods and services | 50,567 |  |  | — |  |  | 50,567 |  |  | — |
Health care | 7,576 |  |  | — |  |  | 7,576 |  |  | — |
Technology, media and telecommunications | 41,636 |  |  | — |  |  | 41,636 |  |  | — |
Financial services | 101,031 |  |  | — |  |  | 100,781 |  |  | 250 |
Mortgage-backed securities | 20,577 |  |  | — |  |  | 20,577 |  |  | — |
Collateralized mortgage obligations |  |  |  |  |  |  |
Government national mortgage association | 86,152 |  |  | — |  |  | 86,152 |  |  | — |
Federal home loan mortgage corporation | 152,843 |  |  | — |  |  | 152,843 |  |  | — |
Federal national mortgage association | 83,282 |  |  | — |  |  | 83,282 |  |  | — |
Asset-backed securities | 926 |  |  | — |  |  | — |  |  | 926 |
Total Available-for-Sale Fixed Maturities | $ | 1,825,443 |  |  | $ | — |  |  | $ | 1,824,267 |  |  | $ | 1,176 |
EQUITY SECURITIES |  |  |  |  |  |  |
Common stocks |  |  |  |  |  |  |
Public utilities | $ | 16,320 |  |  | $ | 16,320 |  |  | $ | — |  |  | $ | — |
Energy | 9,918 |  |  | 9,918 |  |  | — |  |  | — |
Industrials | 36,556 |  |  | 36,556 |  |  | — |  |  | — |
Consumer goods and services | 32,061 |  |  | 32,061 |  |  | — |  |  | — |
Health care | 24,549 |  |  | 24,549 |  |  | — |  |  | — |
Technology, media and telecommunications | 17,109 |  |  | 17,109 |  |  | — |  |  | — |
Financial services | 69,577 |  |  | 69,577 |  |  | — |  |  | — |
Nonredeemable preferred stocks | 595 |  |  | — |  |  | — |  |  | 595 |
Total Equity Securities | $ | 206,685 |  |  | $ | 206,090 |  |  | $ | — |  |  | $ | 595 |
Short-Term Investments | $ | 175 |  |  | $ | 175 |  |  | $ | — |  |  | $ | — |
Money Market Accounts | $ | 24,790 |  |  | $ | 24,790 |  |  | $ | — |  |  | $ | — |
Corporate-Owned Life Insurance | $ | 8,557 |  |  | $ | — |  |  | $ | 8,557 |  |  | $ | — |
Total Assets Measured at Fair Value | $ | 2,065,650 |  |  | $ | 231,055 |  |  | $ | 1,832,824 |  |  | $ | 1,771 |
Summary of Quantitative Information About Level 3 Fair Value Measurements | The following table provides a quantitative information about our Level 3 securities at March 31, 2021:
Quantitative Information about Level 3 Fair Value Measurements
|  | Fair Value at |  | Valuation Technique(s) |  | Unobservable inputs |  | Range of weighted average significant unobservable inputs
|  | March 31, 2021 |  |  |
Corporate bonds - financial services |  | $ | 150 |  |  | Fair value equals cost |  | NA |  | NA
Fixed Maturities asset-backed securities |  | 848 |  |  | Discounted cash flow |  | Probability of default |  | 4% - 6%
Nonredeemable preferred stocks |  | 595 |  |  | Discounted cash flow |  | Multiplier |  | 3x - 4x
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, 2021:
|  |  |  |  |  |  | Corporate bonds |  | Asset-backed securities |  | Equities |  | Total
Balance at January 1, 2021 |  |  |  |  |  |  | $ | 250 |  |  | $ | 926 |  |  | $ | 595 |  |  | $ | 1,771 |
Net unrealized gains (losses)(1) |  |  |  |  |  |  | — |  |  | (78) |  |  | — |  |  | (78) |
Transfers out |  |  |  |  |  |  | (100) |  |  | — |  |  | — |  |  | (100) |
Balance at March 31, 2021 |  |  |  |  |  |  | $ | 150 |  |  | $ | 848 |  |  | $ | 595 |  |  | $ | 1,593 |
(1) Net unrealized gains (losses) are recorded as a component of comprehensive income.
Summary of 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, 2021 and December 31, 2020:
Commercial Mortgage Loans
| March 31, 2021 |  | December 31, 2020
Loan-to-value | Carrying Value |  | Carrying Value
Less than 65% | $ | 30,253 |  |  | $ | 30,361 |
65%-75% | 17,317 |  |  | 17,329 |
Total amortized cost | $ | 47,570 |  |  | $ | 47,690 |
Allowance for mortgage loan losses | (76) |  |  | (76) |
Mortgage loans, net | $ | 47,494 |  |  | $ | 47,614 |
Mortgage Loans by Region
| March 31, 2021 |  | December 31, 2020
| Carrying Value |  | Percent of Total |  | Carrying Value |  | Percent of Total
East North Central | $ | 3,245 |  |  | 6.8 | % |  | $ | 3,245 |  |  | 6.8 | %
Southern Atlantic | 9,709 |  |  | 20.4 |  |  | 9,752 |  |  | 20.5 |
East South Central | 8,155 |  |  | 17.1 |  |  | 8,197 |  |  | 17.2 |
New England | 6,588 |  |  | 13.8 |  |  | 6,588 |  |  | 13.8 |
Middle Atlantic | 14,900 |  |  | 31.4 |  |  | 14,936 |  |  | 31.2 |
Mountain | 2,227 |  |  | 4.7 |  |  | 2,227 |  |  | 4.7 |
West North Central | 2,746 |  |  | 5.8 |  |  | 2,745 |  |  | 5.8 |
Total mortgage loans at amortized cost | $ | 47,570 |  |  | 100.0 | % |  | $ | 47,690 |  |  | 100.0 | %
Mortgage Loans by Property Type
| March 31, 2021 |  | December 31, 2020
| Carrying Value |  | Percent of Total |  | Carrying Value |  | Percent of Total
Commercial |  |  |  |  |  |  |
Multifamily | $ | 17,025 |  |  | 35.7 | % |  | $ | 17,038 |  |  | 35.7 | %
Office | 11,790 |  |  | 24.8 |  |  | 11,861 |  |  | 24.9 |
Industrial | 10,124 |  |  | 21.3 |  |  | 10,124 |  |  | 21.2 |
Retail | 2,227 |  |  | 4.7 |  |  | 2,227 |  |  | 4.7 |
Mixed use/Other | 6,404 |  |  | 13.5 |  |  | 6,440 |  |  | 13.5 |
Total mortgage loans at amortized cost | $ | 47,570 |  |  | 100.0 | % |  | $ | 47,690 |  |  | 100.0 | %
Summary of Amortized Cost Basis by Year of Origination and Credit Quality Indicator |
Amortized Cost Basis by Year of Origination and Credit Quality Indicator
|  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | Total
Commercial mortgage loans: |  |  |  |  |  |  |  |  |  |
Risk Rating: |  |  |  |  |  |  |  |  |  |
1-2 internal grade |  | $ | — |  |  | $ | 5,524 |  |  | $ | 8,380 |  |  | $ | 18,582 |  |  | $ | 32,486 |
3-4 internal grade |  | — |  |  | — |  |  | 8,496 |  |  | 6,588 |  |  | 15,084 |
5 internal grade |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
6 internal grade |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
7 internal grade |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total commercial mortgage loans |  | $ | — |  |  | $ | 5,524 |  |  | $ | 16,876 |  |  | $ | 25,170 |  |  | $ | 47,570 |
Current-period write-offs |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Current-period recoveries |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Current-period net write-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Summary of Rollforward of Allowance for Mortgage Loan Losses | As of March 31, 2021, the Company had an allowance for mortgage loan losses of $76, summarized in the following rollforward:
Rollforward of allowance for mortgage loan losses:
|  | As of
|  | March 31, 2021
Beginning balance, January 1, 2021 |  | $ | 76 |
Current-period provision for expected credit losses |  | — |
Ending balance of the allowance for mortgage loan losses, March 31, 2021 |  | $ | 76 |

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- Definition Tabular disclosure of financing receivables by credit quality indicator. The credit quality indicator is a statistic about the credit quality of financing receivables. Examples include, but not limited to, consumer credit risk scores, credit-rating-agency ratings, an entity's internal credit risk grades, loan-to-value ratios, collateral, collection experience and other internal metrics. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 20 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=121599337&loc=SL82919230-210447 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=121611835&loc=SL6953659-111524 + Details
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