Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2019

Fair Value Disclosures [Abstract]

Carrying Value and Estimated Fair Value of Financial Instruments

A summary of the carrying value and estimated fair value of our financial instruments at June 30, 2019 and December 31, 2018 is as follows:

	June 30, 2019				December 31, 2018
	Fair Value		Carrying Value		Fair Value		Carrying Value
Assets
Investments
Fixed maturities:
Available-for-sale securities	$	1,703,319	$	1,703,319	$	1,749,488	$	1,749,488
Trading securities	17,143		17,143		13,240		13,240
Equity securities	283,178		283,178		248,361		248,361
Mortgage loans	38,018		36,374		26,021		25,782
Other long-term investments	47,772		47,772		37,077		37,077
Short-term investments	175		175		175		175
Cash and cash equivalents	148,784		148,784		64,454		64,454
Corporate-owned life insurance	5,976		5,976		4,907		4,907

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 June 30, 2019 and December 31, 2018:

June 30, 2019			Fair Value Measurements
Description	Total		Level 1		Level 2		Level 3
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	$	29,072	$	—	$	29,072	$	—
U.S. government agency	140,050		—		140,050		—
States, municipalities and political subdivisions
General obligations
Midwest	89,370		—		89,370		—
Northeast	32,324		—		32,324		—
South	115,975		—		115,975		—
West	109,893		—		109,893		—
Special revenue
Midwest	144,438		—		144,438		—
Northeast	64,701		—		64,701		—
South	236,566		—		236,566		—
West	147,317		—		147,317		—
Foreign bonds	5,117		—		5,117		—
Public utilities	64,718		—		64,718		—
Corporate bonds
Energy	27,773		—		27,773		—
Industrials	55,162		—		55,162		—
Consumer goods and services	49,889		—		49,889		—
Health care	14,567		—		14,567		—
Technology, media and telecommunications	27,128		—		27,128		—
Financial services	94,663		—		94,413		250
Mortgage-backed securities	7,094		—		7,094		—
Collateralized mortgage obligations
Government national mortgage association	78,466		—		78,466		—
Federal home loan mortgage corporation	111,463		—		111,463		—
Federal national mortgage association	53,965		—		53,965		—
Asset-backed securities	3,608		—		2,864		744
Total Available-for-Sale Fixed Maturities	$	1,703,319	$	—	$	1,702,325	$	994
TRADING
Fixed maturities:
Bonds
U.S. Treasury	$	749	$	—	$	749	$	—
Corporate bonds
Industrials	398		—		398		—
Consumer goods and services	1,905		—		1,905		—
Health care	5,164		—		5,164		—

Technology, media and telecommunications	3,065		—		3,065		—
Financial services	2,006		—		2,006		—
Redeemable preferred stocks	3,856		3,856		—		—
Total Trading Securities	$	17,143	$	3,856	$	13,287	$	—
EQUITY SECURITIES
Common stocks
Public utilities	$	15,665	$	15,665	$	—	$	—
Energy	13,784		13,784		—		—
Industrials	59,931		59,931		—		—
Consumer goods and services	27,494		27,494		—		—
Health care	25,378		25,378		—		—
Technology, media and telecommunications	16,776		16,776		—		—
Financial services	118,779		118,779		—		—
Nonredeemable preferred stocks	5,371		4,776		—		595
Total Equity Securities	$	283,178	$	282,583	$	—	$	595
Short-Term Investments	$	175	$	175	$	—	$	—
Money Market Accounts	$	17,739	$	17,739	$	—	$	—
Corporate-Owned Life Insurance	$	5,976	$	—	$	5,976	$	—
Total Assets Measured at Fair Value	$	2,027,530	$	304,353	$	1,721,588	$	1,589

December 31, 2018			Fair Value Measurements
Description	Total		Level 1		Level 2		Level 3
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	$	27,418	$	—	$	27,418	$	—
U.S. government agency	214,682		—		214,682		—
States, municipalities and political subdivisions
General obligations
Midwest	95,212		—		95,212		—
Northeast	37,655		—		37,655		—
South	113,911		—		113,911		—
West	107,841		—		107,841		—
Special revenue
Midwest	140,764		—		140,764		—
Northeast	61,948		—		61,948		—
South	235,809		—		235,809		—
West	142,920		—		142,920		—
Foreign bonds	9,716		—		9,716		—
Public utilities	56,059		—		56,059		—
Corporate bonds
Energy	28,648		—		28,648		—
Industrials	53,085		—		53,085		—
Consumer goods and services	53,646		—		53,646		—
Health care	16,658		—		16,658		—
Technology, media and telecommunications	26,176		—		26,176		—
Financial services	79,349		—		79,099		250
Mortgage-backed securities	7,424		—		7,424		—
Collateralized mortgage obligations
Government national mortgage association	76,701		—		76,701		—
Federal home loan mortgage corporation	107,623		—		107,623		—
Federal national mortgage association	52,748		—		52,748		—
Asset-backed securities	3,495		—		2,829		666
Total Available-for-Sale Fixed Maturities	$	1,749,488	$	—	$	1,748,572	$	916
TRADING
Fixed maturities:
Bonds
Corporate bonds
Industrials	$	397	$	—	$	397	$	—
Consumer goods and services	1,599		—		1,599		—
Health care	3,236		—		3,236		—
Technology, media and telecommunications	3,028		—		3,028		—
Financial services	2,231		—		2,231		—

Redeemable preferred stocks	2,749		2,749		—		—
Total Trading Securities	$	13,240	$	2,749	$	10,491	—
EQUITY SECURITIES
Common Stocks
Public utilities	$	15,949	$	15,949	$	—	$	—
Energy	10,975		10,975		—		—
Industrials	53,536		53,536		—		—
Consumer goods and services	24,465		24,465		—		—
Health care	22,286		22,286		—		—
Technology, media and telecommunications	13,944		13,944		—		—
Financial services	101,555		101,555		—		—
Nonredeemable preferred stocks	5,651		5,056		—		595
Total Equity Securities	$	248,361	$	247,766	$	—	$	595
Short-Term Investments	$	175	$	175	$	—	$	—
Money Market Accounts	$	3,275	$	3,275	$	—	$	—
Corporate-Owned Life Insurance	$	4,907	$	—	$	4,907	$	—
Total Assets Measured at Fair Value	$	2,019,446	$	253,965	$	1,763,970	$	1,511

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 June 30, 2019:

	Corporate bonds		Asset-backed securities		Equities		Total
Balance at March 31, 2019	$	250	$	701	$	595	$	1,546
Net unrealized gains(1)	—		43		—		43
Balance at June 30, 2019	$	250	$	744	$	595	$	1,589

(1) Net unrealized gains are recorded as a component of comprehensive income.

The following table provides a summary of the changes in fair value of our Level 3 securities for the six-month period ended June 30, 2019:

	Corporate bonds		Asset-backed securities		Equities		Total
Balance at January 1, 2019	$	250	$	666	$	595	$	1,511
Net unrealized gains(1)	—		78		—		78
Balance at June 30, 2019	$	250	$	744	$	595	$	1,589

(1) Net unrealized gains are recorded as a component of comprehensive income.

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 June 30, 2019 and December 31, 2018:

Commercial Mortgage Loans
	June 30, 2019			December 31, 2018
Loan-to-value	Carrying Value			Carrying Value
Less than 65%	$	27,940		$	25,828
65%-75%	8,496			—
Total amortized cost	$	36,436		$	25,828
Valuation allowance	(62		)	(46		)
Total mortgage loans	$	36,374		$	25,782

Mortgage Loans by Region
	June 30, 2019				December 31, 2018
	Carrying Value		Percent of Total		Carrying Value		Percent of Total
East North Central	$	3,245	8.9	%	$	3,244	12.6	%
Southern Atlantic	6,652		18.3		6,652		25.8
East South Central	4,899		13.4		4,975		19.3
New England	6,588		18.1		6,588		25.4
Middle Atlantic	12,825		35.2		4,369		16.9
Mountain	2,227		6.1		—		—
Total mortgage loans at amortized cost	$	36,436	100.0	%	$	25,828	100.0	%

Mortgage Loans by Property Type
	June 30, 2019				December 31, 2018
	Carrying Value		Percent of Total		Carrying Value		Percent of Total
Commercial
Multifamily	$	3,245	8.9	%	$	3,244	12.6	%
Office	11,551		31.7		11,627		45.0
Retail	2,227		6.1		—		—
Mixed use/Other	19,413		53.3		10,957		42.4
Total mortgage loans at amortized cost	$	36,436	100.0	%	$	25,828	100.0	%