Summary of Assets and Liabilities Measured At Fair Value on Recurring Basis |
Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): | | | | | | | | | | | | | | | | | | September 30, 2017 | | | | Fair Value Measurement Using: | | Total | | Level 1 | | Level 2 | | Level 3 | Assets | | | | | | | | | Fixed maturity securities | | | | | | | | | U.S. Government and government agencies | | $ | 15,713 |
| | $ | 5,115 |
| | $ | 10,598 |
| | $ | — |
| States, municipalities and political subdivisions | | 392,958 |
| | — |
| | 387,066 |
| | 5,892 |
| Foreign government | | 5,912 |
| | — |
| | 5,912 |
| | — |
| Residential mortgage-backed securities | | 110,841 |
| | — |
| | 93,060 |
| | 17,781 |
| Commercial mortgage-backed securities | | 31,099 |
| | — |
| | 18,797 |
| | 12,302 |
| Asset-backed securities | | 127,988 |
| | — |
| | 14,823 |
| | 113,165 |
| Corporate and other | | 652,126 |
| | 2,148 |
| | 618,480 |
| | 31,498 |
| Total fixed maturity securities | | 1,336,637 |
| | 7,263 |
| | 1,148,736 |
| | 180,638 |
| Equity securities | | | | | | | | | Common stocks | | 10,562 |
| | 8,192 |
| | — |
| | 2,370 |
| Perpetual preferred stocks | | 38,484 |
| | 9,858 |
| | 22,525 |
| | 6,101 |
| Total equity securities | | 49,046 |
| | 18,050 |
| | 22,525 |
| | 8,471 |
| Derivatives | | 2,164 |
| | — |
| | — |
| | 2,164 |
| Common stocks - fair value option | | 7,056 |
| | 7,056 |
| | — |
| | — |
| Total assets accounted for at fair value | | $ | 1,394,903 |
| | $ | 32,369 |
| | $ | 1,171,261 |
| | $ | 191,273 |
|
| | | | | | | | | | | | | | | | | | Liabilities | | | | | | | | | Warrant liability | | $ | 3,091 |
| | $ | — |
| | $ | — |
| | $ | 3,091 |
| Contingent liability | | 5,409 |
| | — |
| | — |
| | 5,409 |
| Other | | 1,326 |
| | — |
| | — |
| | 1,326 |
| Total liabilities accounted for at fair value | | $ | 9,826 |
| | $ | — |
| | $ | — |
| | $ | 9,826 |
|
| | | | | | | | | | | | | | | | | | December 31, 2016 | | | | Fair Value Measurement Using: | | Total | | Level 1 | | Level 2 | | Level 3 | Assets | | | | | | | | | Fixed maturity securities | | | | | | | | | U.S. Government and government agencies | | $ | 15,950 |
| | $ | 5,140 |
| | $ | 10,778 |
| | $ | 32 |
| States, municipalities and political subdivisions | | 375,077 |
| | — |
| | 369,387 |
| | 5,690 |
| Foreign government | | 5,978 |
| | — |
| | 5,978 |
| | — |
| Residential mortgage-backed securities | | 138,196 |
| | — |
| | 82,242 |
| | 55,954 |
| Commercial mortgage-backed securities | | 49,053 |
| | — |
| | 6,035 |
| | 43,018 |
| Asset-backed securities | | 77,665 |
| | — |
| | 4,448 |
| | 73,217 |
| Corporate and other | | 617,039 |
| | 2,020 |
| | 594,653 |
| | 20,366 |
| Total fixed maturity securities | | 1,278,958 |
| | 7,160 |
| | 1,073,521 |
| | 198,277 |
| Equity securities | | | | | | | | | Common stocks | | 14,865 |
| | 10,290 |
| | — |
| | 4,575 |
| Perpetual preferred stocks | | 36,654 |
| | 9,312 |
| | 27,342 |
| | — |
| Total equity securities | | 51,519 |
| | 19,602 |
| | 27,342 |
| | 4,575 |
| Derivatives | | 3,813 |
| | — |
| | — |
| | 3,813 |
| Total assets accounted for at fair value | | $ | 1,334,290 |
| | $ | 26,762 |
| | $ | 1,100,863 |
| | $ | 206,665 |
|
| | | | | | | | | | | | | | | | | | Liabilities | | | | | | | | | Warrant liability | | $ | 4,058 |
| | $ | — |
| | $ | — |
| | $ | 4,058 |
| Contingent liability | | 11,411 |
| | — |
| | — |
| | 11,411 |
| Other | | 816 |
| | — |
| | — |
| | 816 |
| Total liabilities accounted for at fair value | | $ | 16,285 |
| | $ | — |
| | $ | — |
| | $ | 16,285 |
|
|
Schedule of Changes in Balances of Level 3 Financial Assets at Fair Value |
The following tables summarize changes to the Company’s financial instruments carried at fair value and classified within Level 3 of the fair value hierarchy for the three and nine months ended September 30, 2017 and 2016, respectively (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total realized/unrealized gains (losses) included in | | | | | | | | | | | Balance at June 30, 2017 | Net earnings (loss) | Other comp. income (loss) | Purchases and issuances | Sales and settlements | Transfer to Level 3 | | Transfer out of Level 3 | | Balance at September 30, 2017 | Assets | | | | | | | | | | | | | | | | | Fixed maturity securities | | | | | | | | | | | | | | | | | States, municipalities and political subdivisions | | $ | 7,511 |
| | $ | (3 | ) | | $ | (100 | ) | | $ | 116 |
| | $ | — |
| | $ | — |
| | $ | (1,632 | ) | | $ | 5,892 |
| Residential mortgage-backed securities | | 18,486 |
| | 21 |
| | 22 |
| | — |
| | (921 | ) | | 1,041 |
| | (868 | ) | | 17,781 |
| Commercial mortgage-backed securities | | 3,754 |
| | (4 | ) | | 1 |
| | — |
| | (69 | ) | | 8,620 |
| | — |
| | 12,302 |
| Asset-backed securities | | 119,598 |
| | 97 |
| | 572 |
| | 15,780 |
| | (23,947 | ) | | 1,065 |
| | — |
| | 113,165 |
| Corporate and other | | 20,539 |
| | (5 | ) | | (1,202 | ) | | 4,310 |
| | (15 | ) | | 9,294 |
| | (1,423 | ) | | 31,498 |
| Total fixed maturity securities | | 169,888 |
|
| 106 |
|
| (707 | ) |
| 20,206 |
|
| (24,952 | ) |
| 20,020 |
|
| (3,923 | ) |
| 180,638 |
| Equity securities | | | | | | | | | | | | | | | | | Common stocks | | 2,090 |
| | — |
| | — |
| | — |
| | — |
| | 280 |
| | — |
| | 2,370 |
| Perpetual preferred stocks | | — |
| | — |
| | — |
| | — |
| | — |
| | 6,101 |
| | — |
| | 6,101 |
| Total equity securities | | 2,090 |
| | — |
| | — |
| | — |
| | — |
| | 6,381 |
| | — |
| | 8,471 |
| Derivatives | | 2,155 |
| | 9 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 2,164 |
| Total financial assets | | $ | 174,133 |
| | $ | 115 |
| | $ | (707 | ) | | $ | 20,206 |
| | $ | (24,952 | ) | | $ | 26,401 |
| | $ | (3,923 | ) | | $ | 191,273 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total realized/unrealized (gains) losses included in | | | | | | | | | | | | Balance at June 30, 2017 | Net (earnings) loss | Other comp. (income) loss | Purchases and issuances | Sales and settlements | | Transfer to Level 3 | | Transfer out of Level 3 | | Balance at September 30, 2017 | Liabilities | | | | | | | | | | | | | | | | | Warrant liability | | $ | 4,091 |
| | $ | (1,000 | ) | | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 3,091 |
| Contingent liability | | 11,730 |
| | (6,321 | ) | | — |
| | — |
| | — |
| | — |
| | — |
| | 5,409 |
| Other | | 1,042 |
| | 284 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 1,326 |
| Total financial liabilities | | $ | 16,863 |
| | $ | (7,037 | ) | | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 9,826 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total realized/unrealized gains (losses) included in | | | | | | | | | | | Balance at December 31, 2016 | Net earnings (loss) | Other comp. income (loss) | Purchases and issuances | Sales and settlements | Transfer to Level 3 | | Transfer out of Level 3 | | Balance at September 30, 2017 | Assets | | | | | | | | | | | | | | | | | Fixed maturity securities | | | | | | | | | | | | | | | | | U.S. Government and government agencies | | $ | 32 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | (17 | ) | | $ | — |
| | $ | (15 | ) | | $ | — |
| States, municipalities and political subdivisions | | 5,690 |
| | (2 | ) | | (144 | ) | | 344 |
| | — |
| | 1,636 |
| | (1,632 | ) | | 5,892 |
| Residential mortgage-backed securities | | 55,954 |
| | (720 | ) | | 901 |
| | 3,465 |
| | (7,283 | ) | | 3,203 |
| | (37,739 | ) | | 17,781 |
| Commercial mortgage-backed securities | | 43,018 |
| | 111 |
| | 76 |
| | — |
| | (10,083 | ) | | 8,620 |
| | (29,440 | ) | | 12,302 |
| Asset-backed securities | | 73,217 |
| | 1,147 |
| | 880 |
| | 97,051 |
| | (48,461 | ) | | 1,065 |
| | (11,734 | ) | | 113,165 |
| Corporate and other | | 20,366 |
| | (3,329 | ) | | 3,670 |
| | 12,244 |
| | (4,133 | ) | | 10,606 |
| | (7,926 | ) | | 31,498 |
| Total fixed maturity securities | | 198,277 |
| | (2,793 | ) | | 5,383 |
| | 113,104 |
| | (69,977 | ) | | 25,130 |
| | (88,486 | ) | | 180,638 |
| Equity securities | | | | | | | | | | | | | | | | | Common stocks | | 4,576 |
| | (2,842 | ) | | 356 |
| | — |
| | — |
| | 280 |
| | — |
| | 2,370 |
| Perpetual preferred stocks | | — |
| | — |
| | — |
| | — |
| | — |
| | 6,101 |
| | — |
| | 6,101 |
| Total equity securities | | 4,576 |
| | (2,842 | ) | | 356 |
| | — |
| | — |
| | 6,381 |
| | — |
| | 8,471 |
| Derivatives | | 3,813 |
| | (1,649 | ) | | — |
| | — |
| | — |
| | — |
| | — |
| | 2,164 |
| Total financial assets | | $ | 206,666 |
| | $ | (7,284 | ) | | $ | 5,739 |
| | $ | 113,104 |
| | $ | (69,977 | ) | | $ | 31,511 |
| | $ | (88,486 | ) | | $ | 191,273 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total realized/unrealized (gains) losses included in | | | | | | | | | | | | Balance at December 31, 2016 | Net (earnings) loss | Other comp. (income) loss | Purchases and issuances | Sales and settlements | | Transfer to Level 3 | | Transfer out of Level 3 | | Balance at September 30, 2017 | Liabilities | | | | | | | | | | | | | | | | | Warrant liability | | $ | 4,058 |
| | $ | (967 | ) | | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 3,091 |
| Contingent liability | | 11,411 |
| | (6,002 | ) | | — |
| | — |
| | — |
| | — |
| | — |
| | 5,409 |
| Other | | 816 |
| | 510 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 1,326 |
| Total financial liabilities | | $ | 16,285 |
| | $ | (6,459 | ) | | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 9,826 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total realized/unrealized gains (losses) included in | | | | | | | | | | | | Balance at June 30, 2016 | Net earnings (loss) | Other comp. income (loss) | Purchases and issuances | Sales and settlements | Transfer to Level 3 | Transfer out of Level 3 | Balance at September 30, 2016 | Assets | | | | | | | | | | | | | | | | | Fixed maturity securities | | | | | | | | | | | | | | | | | U.S. Government and government agencies | | $ | 58 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | (26 | ) | | $ | — |
| | $ | — |
| | $ | 32 |
| States, municipalities and political subdivisions | | 5,864 |
| | 102 |
| | 3 |
| | — |
| | — |
| | — |
| | — |
| | 5,969 |
| Residential mortgage-backed securities | | 62,289 |
| | (422 | ) | | 525 |
| | — |
| | (2,973 | ) | | 8,686 |
| | (8,105 | ) | | 60,000 |
| Commercial mortgage-backed securities | | 57,563 |
| | (269 | ) | | (19 | ) | | — |
| | (7,378 | ) | | 2,629 |
| | (2,247 | ) | | 50,279 |
| Asset-backed securities | | 54,217 |
| | 85 |
| | 1,454 |
| | 10,337 |
| | (720 | ) | | 1,387 |
| | (16 | ) | | 66,744 |
| Corporate and other | | 16,661 |
| | (108 | ) | | 550 |
| | 7,899 |
| | (1,145 | ) | | — |
| | (2,969 | ) | | 20,888 |
| Total fixed maturity securities | | 196,652 |
| | (612 | ) | | 2,513 |
| | 18,236 |
| | (12,242 | ) | | 12,702 |
| | (13,337 | ) | | 203,912 |
| Equity securities | | | | | | | | | | | | | | | | — |
| Common stocks | | 4,826 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 4,826 |
| Total equity securities | | 4,826 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 4,826 |
| Derivatives | | 5,318 |
| | (94 | ) | | (694 | ) | | 230 |
| | (48 | ) | | — |
| | — |
| | 4,712 |
| Contingent asset | | 2,813 |
| | (89 | ) | | — |
| | — |
| | — |
| | — |
| | — |
| | 2,724 |
| Total financial assets | | $ | 209,609 |
| | $ | (795 | ) | | $ | 1,819 |
| | $ | 18,466 |
| | $ | (12,290 | ) | | $ | 12,702 |
| | $ | (13,337 | ) | | $ | 216,174 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total realized/unrealized (gains) losses included in | | | | | | | | | | | | Balance at June 30, 2016 | Net (earnings) loss | Other comp. (income) loss | Purchases and issuances | Sales and settlements | Transfer to Level 3 | Transfer out of Level 3 | Balance at September 30, 2016 | Liabilities | | | | | | | | | | | | | | | | | Warrant liability | | $ | 2,772 |
| | $ | 739 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 3,511 |
| Contingent liability | | 2,218 |
| | (1,470 | ) | | — |
| | — |
| | — |
| | — |
| | — |
| | 748 |
| Other | | — |
| | — |
| | — |
| | 1,490 |
| | — |
| | — |
| | — |
| | 1,490 |
| Total financial liabilities | | $ | 4,990 |
|
| $ | (731 | ) |
| $ | — |
|
| $ | 1,490 |
|
| $ | — |
|
| $ | — |
|
| $ | — |
|
| $ | 5,749 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total realized/unrealized gains (losses) included in | | | | | | | | | | | | Balance at December 31, 2015 | Net earnings (loss) | Other comp. income (loss) | Purchases and issuances | Sales and settlements | Transfer to Level 3 | Transfer out of Level 3 | Balance at September 30, 2016 | Assets | | | | | | | | | | | | | | | | | Fixed maturity securities | | | | | | | | | | | | | | | | | U.S. Government and government agencies | | $ | 73 |
| | $ | — |
| | $ | 2 |
| | $ | — |
| | $ | (43 | ) | | $ | — |
| | $ | — |
| | $ | 32 |
| States, municipalities and political subdivisions | | 5,659 |
| | 302 |
| | 8 |
| | — |
| | — |
| | — |
| | — |
| | 5,969 |
| Residential mortgage-backed securities | | 79,019 |
| | (2,105 | ) | | 910 |
| | — |
| | (10,988 | ) | | 16,569 |
| | (23,405 | ) | | 60,000 |
| Commercial mortgage-backed securities | | 60,525 |
| | (760 | ) | | 920 |
| | — |
| | (12,394 | ) | | 9,779 |
| | (7,791 | ) | | 50,279 |
| Asset-backed securities | | 27,653 |
| | 140 |
| | 2,176 |
| | 43,405 |
| | (14,742 | ) | | 13,808 |
| | (5,696 | ) | | 66,744 |
| Corporate and other | | 13,944 |
| | 50 |
| | 479 |
| | 8,499 |
| | (1,206 | ) | | 2,091 |
| | (2,969 | ) | | 20,888 |
| Total fixed maturity securities | | 186,873 |
| | (2,373 | ) |
| 4,495 |
|
| 51,904 |
|
| (39,373 | ) |
| 42,247 |
|
| (39,861 | ) |
| 203,912 |
| Equity securities | | | | | | | | | | | | | | | | — |
| Common stocks | | 4,932 |
| | — |
| | (106 | ) | | — |
| | — |
| | — |
| | — |
| | 4,826 |
| Total equity securities | | 4,932 |
| | — |
|
| (106 | ) |
| — |
|
| — |
|
| — |
|
| — |
|
| 4,826 |
| Derivatives | | 4,211 |
| | (1,119 | ) | | 1,438 |
| | 230 |
| | (48 | ) | | — |
| | — |
| | 4,712 |
| Contingent asset | | — |
| | (268 | ) | | — |
| | 2,992 |
| | — |
| | — |
| | — |
| | 2,724 |
| Total financial assets | | $ | 196,016 |
| | $ | (3,760 | ) |
| $ | 5,827 |
|
| $ | 55,126 |
|
| $ | (39,421 | ) |
| $ | 42,247 |
|
| $ | (39,861 | ) |
| $ | 216,174 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total realized/unrealized (gains) losses included in | | | | | | | | | | | | Balance at December 31, 2015 | Net (earnings) loss | Other comp. (income) loss | Purchases and issuances | Sales and settlements | Transfer to Level 3 | Transfer out of Level 3 | Balance at September 30, 2016 | Liabilities | | | | | | | | | | | | | | | | | Warrant liability | | $ | 4,332 |
| | $ | (821 | ) | | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 3,511 |
| Contingent liability | | — |
| | (1,841 | ) | | — |
| | 2,589 |
| | — |
| | — |
| | — |
| | 748 |
| Other | | — |
| | — |
| | — |
| | 1,490 |
| | — |
| | — |
| | — |
| | 1,490 |
| Total financial liabilities | | $ | 4,332 |
| | $ | (2,662 | ) | | $ | — |
| | $ | 4,079 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 5,749 |
|
|
Schedule of Financial Instruments Measured at Fair Value on Nonrecurring Basis |
The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments, which were not measured at fair value on a recurring basis. The table excludes carrying amounts for cash, accounts receivable, costs and recognized earnings in excess of billings, accounts payable, accrued expenses, billings in excess of costs and recognized earnings, and other current assets and liabilities approximate fair value due to relatively short periods to maturity (in thousands): | | | | | | | | | | | | | | | | | | | | | | September 30, 2017 | | | | | | Fair Value Measurement Using: | | Carrying Value | | Estimated Fair Value | | Level 1 | | Level 2 | | Level 3 | Assets | | | | | | | | | | | Mortgage loans | | $ | 26,427 |
| | $ | 26,428 |
| | $ | — |
| | $ | — |
| | $ | 26,428 |
| Policy loans | | 18,038 |
| | 18,038 |
| | — |
| | 18,038 |
| | — |
| Other invested assets | | 5,581 |
| | 3,617 |
| | — |
| | — |
| | 3,617 |
| Total assets not accounted for at fair value | | $ | 50,046 |
| | $ | 48,083 |
| | $ | — |
| | $ | 18,038 |
| | $ | 30,045 |
| Liabilities | | | | | | | | | | | Annuity benefits accumulated (1) | | $ | 245,054 |
| | $ | 242,153 |
| | $ | — |
| | $ | — |
| | $ | 242,153 |
| Long-term obligations (2) | | 447,624 |
| | 455,432 |
| | — |
| | 455,432 |
| | — |
| Total liabilities not accounted for at fair value | | $ | 692,678 |
| | $ | 697,585 |
| | $ | — |
| | $ | 455,432 |
| | $ | 242,153 |
|
| | | | | | | | | | | | | | | | | | | | | | December 31, 2016 | | | | | | Fair Value Measurement Using: | | Carrying Value | | Estimated Fair Value | | Level 1 | | Level 2 | | Level 3 | Assets | | | | | | | | | | | Mortgage loans | | $ | 16,831 |
| | $ | 16,832 |
| | $ | — |
| | $ | — |
| | $ | 16,832 |
| Policy loans | | 18,247 |
| | 18,247 |
| | — |
| | 18,247 |
| | — |
| Other invested assets | | 5,719 |
| | 4,597 |
| | — |
| | — |
| | 4,597 |
| Total assets not accounted for at fair value | | $ | 40,797 |
| | $ | 39,676 |
| | $ | — |
| | $ | 18,247 |
| | $ | 21,429 |
| Liabilities | | | | | | | | | | | Annuity benefits accumulated (1) | | $ | 251,270 |
| | $ | 249,372 |
| | $ | — |
| | $ | — |
| | $ | 249,372 |
| Long-term obligations (2) | | 378,780 |
| | 376,081 |
| | — |
| | 376,081 |
| | — |
| Total liabilities not accounted for at fair value | | $ | 630,050 |
| | $ | 625,453 |
| | $ | — |
| | $ | 376,081 |
| | $ | 249,372 |
|
(1) Excludes life contingent annuities in the payout phase. (2) Excludes certain lease obligations accounted for under ASC 840, Leases.
|