| Fair value hierarchy of financial assets and financial liabilities measured on a recurring basis |
At June 30, 2019 and December 31, 2018, we classified our financial instruments measured at fair value on a recurring basis in the following valuation hierarchy: | | | | | | | | | | | | | | | | | | | | | | June 30, 2019 | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Fair Value Based on NAV Practical Expedient | | Total Fair Value | AFS fixed maturities | | | | | | | | | | | U.S. treasury bonds | | $ | 367,103 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 367,103 |
| U.S. agency bonds – mortgage-backed | | — |
| | 956,397 |
| | — |
| | — |
| | 956,397 |
| U.S. agency bonds – other | | — |
| | 51,878 |
| | — |
| | — |
| | 51,878 |
| Non-U.S. government and supranational bonds | | — |
| | 29,336 |
| | — |
| | — |
| | 29,336 |
| Asset-backed securities | | — |
| | 221,066 |
| | — |
| | — |
| | 221,066 |
| Corporate bonds | | — |
| | 1,332,727 |
| | — |
| | — |
| | 1,332,727 |
| Municipal bonds | | — |
| | 13,091 |
| | — |
| | — |
| | 13,091 |
| Other investments | | — |
| | — |
| | 25,173 |
| | 3,258 |
| | 28,431 |
| Total | | $ | 367,103 |
| | $ | 2,604,495 |
| | $ | 25,173 |
| | $ | 3,258 |
| | $ | 3,000,029 |
| As a percentage of total assets | | 8.0 | % | | 56.6 | % | | 0.5 | % | | 0.1 | % | | 65.2 | % |
| | | | | | | | | | | | | | | | | | | | | | December 31, 2018 | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Fair Value Based on NAV Practical Expedient | | Total Fair Value | AFS fixed maturities | | | | | | | | | | | U.S. treasury bonds | | $ | 139,072 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 139,072 |
| U.S. agency bonds – mortgage-backed | | — |
| | 1,453,134 |
| | — |
| | — |
| | 1,453,134 |
| U.S. agency bonds – other | | — |
| | 129,233 |
| | — |
| | — |
| | 129,233 |
| Non-U.S. government and supranational bonds | | — |
| | 10,072 |
| | — |
| | — |
| | 10,072 |
| Asset-backed securities | | — |
| | 215,082 |
| | — |
| | — |
| | 215,082 |
| Corporate bonds | | — |
| | 1,104,975 |
| | — |
| | — |
| | 1,104,975 |
| Other investments | | — |
| | — |
| | 19,883 |
| | 3,833 |
| | 23,716 |
| Total | | $ | 139,072 |
| | $ | 2,912,496 |
| | $ | 19,883 |
| | $ | 3,833 |
| | $ | 3,075,284 |
| As a percentage of total assets | | 2.6 | % | | 55.1 | % | | 0.4 | % | | 0.1 | % | | 58.2 | % |
|
| Carrying values and fair values of financial instruments not measured at fair value |
The following table presents the fair value and carrying value or principal amount of the financial instruments not measured at fair value: | | | | | | | | | | | | | | | | | | | | June 30, 2019 | | December 31, 2018 | Financial Assets | | Carrying Value | | Fair Value | | Carrying Value | | Fair Value | HTM – corporate bonds | | $ | — |
| | $ | — |
| | $ | 957,845 |
| | $ | 940,727 |
| HTM – municipal bonds | | — |
| | — |
| | 57,836 |
| | 57,285 |
| Total financial assets | | $ | — |
| | $ | — |
| | $ | 1,015,681 |
| | $ | 998,012 |
| | | | | | | | | | Financial Liabilities | | | | | | | | | Senior Notes - MHLA – 6.625% | | $ | 110,000 |
| | $ | 70,400 |
| | $ | 110,000 |
| | $ | 75,240 |
| Senior Notes - MHNC – 7.75% | | 152,500 |
| | 129,503 |
| | 152,500 |
| | 143,960 |
| Total financial liabilities | | $ | 262,500 |
| | $ | 199,903 |
| | $ | 262,500 |
| | $ | 219,200 |
|
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