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Fair Value of Financial Instruments (Tables)

3 Months Ended

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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Tabular disclosure of allowance for credit loss on financing receivable.

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