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Fair Value Measurements
 3 Months Ended
Mar. 31, 2023
Fair Value Disclosures [Abstract]  
Fair Value Disclosures [Text Block] FAIR VALUE MEASUREMENTS Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  We hold AFS fixed maturity securities, which are carried at fair value with changes in fair value reported through other comprehensive income (loss). We also report our equity
securities and certain other long-term investments at fair value with changes in fair value reported through the consolidated statements of operations.

Fair value measurements are generally based upon observable and unobservable inputs.  Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our view of market assumptions in the absence of observable market information. We utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs.  All assets and liabilities carried at fair value are required to be classified and disclosed in one of the following three categories:

•Level 1 - Quoted prices for identical instruments in active markets.
•Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs or whose significant value drivers are observable.
•Level 3 - Instruments whose significant value drivers are unobservable.

Level 1 primarily consists of financial instruments whose value is based on quoted market prices such as U.S. Treasury securities and actively traded mutual fund and stock investments.

Level 2 includes those financial instruments that are valued by independent pricing services or broker quotes.  These pricing models are primarily industry-standard models that consider various inputs, such as interest rates, credit spreads and foreign exchange rates for the underlying financial instruments.  All significant inputs are observable or derived from observable information in the marketplace or are supported by observable levels at which transactions are executed in the marketplace.  Financial instruments in this category primarily include corporate securities, U.S. Government-sponsored enterprise securities, securities issued by states and political subdivisions and certain mortgage and asset-backed securities.

Level 3 is comprised of financial instruments whose fair value is estimated based on non-binding broker prices utilizing significant inputs not based on or corroborated by readily available market information.  We have no investments in this category.
The following tables set forth our assets that are measured at fair value on a recurring basis as of the dates indicated.

March 31, 2023Level 1Level 2Level 3Total
Fair Value
(In thousands)
Financial Assets
Fixed maturity securities available-for-sale:    
U.S. Treasury and U.S. Government-sponsored enterprises$5,925 3,763 — 9,688 
States and political subdivisions— 308,580 — 308,580 
Corporate47 758,927 — 758,974 
Commercial mortgage-backed— 168 — 168 
Residential mortgage-backed— 102,903 — 102,903 
Asset-backed— 49,277 — 49,277 
Foreign governments— 101 — 101 
Total fixed maturity securities available-for-sale5,972 1,223,719 — 1,229,691 
Equity securities:    
Stock mutual funds2,683 — — 2,683 
Bond mutual funds4,409 — — 4,409 
Common stock924 — — 924 
Non-redeemable preferred stock9 — — 9 
Non-redeemable preferred stock fund3,874 — — 3,874 
Total equity securities11,899 — — 11,899 
Other long-term investments (1)
— — — 71,990 
Total financial assets$17,871 1,223,719 — 1,313,580 
(1) In accordance with Subtopic 820-10, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient are not classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheets.
December 31, 2022Level 1Level 2Level 3Total
Fair Value
(In thousands)
Financial Assets
Fixed maturity securities available-for-sale:    
U.S. Treasury and U.S. Government-sponsored enterprises$9,568 3,710 — 13,278 
States and political subdivisions— 307,358 — 307,358 
Corporate44 715,601 — 715,645 
Commercial mortgage-backed— 169 — 169 
Residential mortgage-backed— 99,826 — 99,826 
Asset-backed— 43,242 — 43,242 
Foreign governments— 101 — 101 
Total fixed maturity securities available-for-sale9,612 1,170,007 — 1,179,619 
Equity securities:    
Stock mutual funds2,615 — — 2,615 
Bond mutual funds4,337 — — 4,337 
Common stock857 — — 857 
Non-redeemable preferred stock8 — — 8 
Non-redeemable preferred stock fund3,773 — — 3,773 
Total equity securities11,590 — — 11,590 
Other long-term investments (1)
— — — 66,846 
Total financial assets$21,202 1,170,007 — 1,258,055 
(1) In accordance with Subtopic 820-10, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient are not classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheets.
 
FINANCIAL INSTRUMENTS VALUATION

FINANCIAL INSTRUMENTS CARRIED AT FAIR VALUE

Fixed maturity securities, available-for-sale.  At March 31, 2023, fixed maturity securities, valued using a third-party pricing source, totaled $1.2 billion for Level 2 assets and comprised 93.2% of total reported fair value of our financial assets.  The Level 1 and Level 2 valuations are reviewed and updated quarterly through testing by comparisons to separate pricing models, other third-party pricing services, and back tested to recent trades.  In addition, we obtain information annually relative to the third-party pricing models and review model parameters for reasonableness.  There were no Level 3 assets at March 31, 2023.  As of March 31, 2023, there were no material changes to the valuation methods or assumptions used to determine fair values, and no broker or third-party prices were changed from the values received.

Equity securities.  Our equity securities are classified as Level 1 assets as their fair values are based upon quoted market prices.

Limited partnerships. The Company considers the net asset value ("NAV") to represent the value of the investment fund and is measured by the total value of assets minus the total value of liabilities. The following table includes information related to our investments in limited partnerships that calculate NAV per share. For these investments, which are measured at fair value on a recurring basis, we use the NAV per share to measure fair value. The Company recognized net investment related losses of $0.6 million and $0.8 million on limited partnerships held for
the three months ended March 31, 2023 and March 31, 2022, respectively. These investments are included in other long-term investments on the consolidated balance sheets.

March 31, 2023December 31, 2022
(In thousands, except years)Fair Value
 Using NAV Per Share		Unfunded Commit-
ments		Range
(In years)		Fair Value
 Using NAV Per Share		Unfunded Commit-
ments		Range
(In years)
Description
Limited partnerships
Middle marketInvestments in privately-originated, performing senior secured debt primarily in North America-based companies$33,643 3,452 4$33,234 6,011 5
Global equity fundInvestments in common stocks of U.S., international developed and emerging markets with a focus on long-term capital growth9,329 — 09,037 — 0
Late-stage growthInvestments in private late-stage, established companies seeking capital to accelerate growth prior to an IPO or sale18,315 17,172 
5 to 7
16,892 18,444 
5 to 7
InfrastructureInvestments in climate infrastructure assets, focusing on renewable power generation in wind and solar energy10,703 14,926 
10 to 12
7,683 4,107 11
Total limited partnerships$71,990 35,550 $66,846 28,562 

The majority of our limited partnership investments are not redeemable because distributions from the funds will be received when the underlying investments of the funds are liquidated. The life spans indicated above may be shortened or extended at the fund manager's discretion, typically in one or two-year increments. The global equity fund is redeemable monthly.

FINANCIAL INSTRUMENTS NOT CARRIED AT FAIR VALUE

Estimates of fair values are made at a specific point in time, based on relevant market prices and information about the financial instruments.  The estimated fair values of financial instruments presented below are not necessarily indicative of the amounts the Company might realize in actual market transactions.

The carrying amount and fair value for the financial assets and liabilities on the consolidated financial statements not otherwise disclosed for the periods indicated were as follows:

 March 31, 2023December 31, 2022
(In thousands)Carrying
Value		Fair
Value		Carrying
Value		Fair
Value
Financial Assets:    
Policy loans$78,659 78,659 78,773 78,773 
Residential mortgage loan47 48 49 50 
Cash and cash equivalents18,924 18,924 22,973 22,973 
Financial Liabilities:    
Annuity - investment contracts67,799 62,968 67,344 61,701 
Policy loans. Policy loans had a weighted average annual interest rate of 7.7% at both March 31, 2023 and December 31, 2022 and no specified maturity dates. The aggregate fair value of policy loans approximates the carrying value reflected on the consolidated balance sheets. Policy loans are an integral part of the life insurance policies we have in force, cannot be valued separately and are not marketable. Therefore, the fair value of policy loans approximates the carrying value and policy loans are considered Level 3 assets in the fair value hierarchy.

Residential mortgage loan. The mortgage loan is secured principally by a residential property. The interest rate for this loan was approximately 7.0% at both March 31, 2023 and December 31, 2022. At March 31, 2023, the remaining loan matures in five years.  Management estimated the fair value using an annual interest rate of 6.25% at March 31, 2023. Our mortgage loan is considered Level 3 assets in the fair value hierarchy and is included in other long-term investments on the consolidated balance sheet.

Cash and cash equivalents. The fair value of cash and cash equivalents approximates carrying value and are characterized as Level 1 assets in the fair value hierarchy.

Annuity liabilities. The fair value of the Company's liabilities under annuity contract policies, which are considered Level 3 liabilities, was estimated at March 31, 2023 and December 31, 2022 using discounted cash flows based upon spot rates adjusted for various risk adjustments ranging from 4.18% to 4.41% and 4.74% to 5.09%, respectively. The fair value of liabilities under all insurance contracts are taken into consideration in the overall management of interest rate risk, which seeks to minimize exposure to changing interest rates through the matching of investment maturities with amounts due under insurance contracts.

Other long-term investments. Financial instruments included in other long-term investments are classified in various levels of the fair value hierarchy. The following table summarizes the carrying amounts of these investments.

Carrying Value
(In thousands)
March 31, 2023December 31, 2022
Other long-term investments:
Limited partnerships$71,990 69,294 
FHLB common stock195 193 
Mortgage loans47 49 
All other investments22 22 
Total other long-term investments$72,254 69,558 

We carried no limited partnership investments at cost at March 31, 2023 while $2.4 million were carried at cost at December 31, 2022.
We are a member of the Federal Home Loan Bank ("FHLB") of Dallas and such membership requires members to own stock in the FHLB. Our FHLB stock is carried at amortized cost, which approximates fair value.