FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2019

Carrying Value and Estimated Fair Value of Financial Instruments

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



	December 31, 2019				December 31, 2018
	Fair Value		Carrying Value		Fair Value		Carrying Value
Assets
Investments
Fixed maturities:
Available-for-sale securities	$	1,719,607	$	1,719,607	$	1,749,488	$	1,749,488
Trading securities	15,256		15,256		13,240		13,240
Equity securities:	299,203		299,203		248,361		248,361
Mortgage loans	43,992		42,448		26,021		25,782
Other long-term investments	78,410		78,410		37,077		37,077
Short-term investments	175		175		175		175
Cash and cash equivalents	120,722		120,722		64,454		64,454
Corporate-owned life insurance	6,777		6,777		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 tables include financial instruments at December 31, 2019 and 2018:



			Fair Value Measurements
Description	December 31, 2019		Level 1		Level 2		Level 3
AVAILABLE-FOR-SALE
Fixed maturities
Bonds
U.S. Treasury	$	69,491	$	—	$	69,491	$	—
U.S. government agency	100,202		—		100,202		—
States, municipalities and political subdivisions
General obligations
Midwest	88,594		—		88,594		—
Northeast	31,270		—		31,270		—
South	115,203		—		115,203		—
West	110,317		—		110,317		—
Special revenue
Midwest	139,892		—		139,892		—
Northeast	61,543		—		61,543		—
South	234,666		—		234,666		—
West	144,844		—		144,844		—
Foreign bonds	5,117		—		5,117		—
Public utilities	63,651		—		63,651		—
Corporate bonds
Energy	30,124		—		30,124		—
Industrials	54,015		—		54,015		—
Consumer goods and services	49,466		—		49,466		—
Health care	9,480		—		9,480		—
Technology, media and telecommunications	27,670		—		27,670		—
Financial services	100,253		—		100,003		250
Mortgage-backed securities	6,356		—		6,356		—
Collateralized mortgage obligations
Government national mortgage association	80,356		—		80,356		—
Federal home loan mortgage corporation	124,502		—		124,502		—
Federal national mortgage association	71,845		—		71,845		—
Asset-backed securities	750		—		—		750
Total Available-For-Sale Fixed Maturities	$	1,719,607	$	—	$	1,718,607	$	1,000
TRADING
Fixed maturities
Bonds
Corporate bonds
Consumer goods and services	$	2,276	$	—	$	2,276	$	—
Health care	4,701		—		4,701		—
Technology, media and telecommunications	1,732		—		1,732		—
Financial services	2,460		—		2,460		—
Redeemable preferred stocks	4,087		4,087		—		—
Total Trading Securities	$	15,256	$	4,087	$	11,169	$	—
Equity securities
Public utilities	16,295		16,295		—		—
Energy	14,639		14,639		—		—
Industrials	57,330		57,330		—		—
Consumer goods and services	29,935		29,935		—		—
Health care	27,285		27,285		—		—
Technology, Media & Telecommunications	19,265		19,265		—		—
Financial Services	127,780		127,780		—		—
Nonredeemable preferred stocks	6,674		6,079		—		595



Total Equity Securities	$	299,203	$	298,608	$	—	$	595
Short-Term Investments	$	175	$	175	$	—	$	—
Money Market Accounts	$	9,334	$	9,334	$	—	$	—
Corporate-Owned Life Insurance	$	6,777	$	—	$	6,777	$	—
Total Assets Measured at Fair Value	$	2,050,352	$	312,204	$	1,736,553	$	1,595



			Fair Value Measurements
Description	December 31, 2018		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
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		—		—
Financial Services	101,555		101,555		—		—



Technology, media and telecommunications	13,944		13,944		—		—
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

Summary of 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 2019:



	Corporate bonds			Asset-backed securities		Equities		Total
Balance at January 1, 2019	$	250		$	666	$	595	$	1,511
Unrealized gains (losses) ⁽¹⁾	—			84		—		84
Purchases	100			—		—		100
Disposals	(100		)	—		—		(100		)
Balance at December 31, 2019	$	250		$	750	$	595	$	1,595

(1) Unrealized gains (losses) 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 2018:



	Corporate bonds		Asset-backed securities		Equities			Total
Balance at January 1, 2018	$	100	$	647	$	882		$	1,629
Unrealized gains (losses) ⁽¹⁾	—		19		(287		)	(268		)
Purchases	150		—		—			150
Balance at December 31, 2018	$	250	$	666	$	595		$	1,511

Schedule of Commercial Mortgage Loans

The following tables present the carrying value of our commercial mortgage loans and additional information at December 31, 2019 and 2018:



Commercial Mortgage Loans
Loan-to-value	December 31, 2019			December 31, 2018
Less than 65%	$	34,024		25,828
65%-75%	8,496			—
Greater than 75%	—			—
Total amortized cost	$	42,520		$	25,828
Valuation allowance	(72		)	(46		)
Total mortgage loans	$	42,448		$	25,782



Mortgage Loans by Region
	December 31, 2019				December 31, 2018
	Carrying Value		Percent of Total		Carrying Value		Percent of Total
East North Central	$	3,245	7.6	%	$	3,244	12.6	%
Southern Atlantic	7,026		16.5		6,652		25.8
East South Central	8,358		19.7		4,975		19.3
New England	6,588		15.5		6,588		25.4
Middle Atlantic	15,076		35.5		4,369		16.9
Mountain	2,227		5.2		—		—
Total mortgage loans at amortized cost	$	42,520	100.0	%	$	25,828	100.0	%



Mortgage Loans by Property Type
	December 31, 2019				December 31, 2018
	Carrying Value		Percent of Total		Carrying Value		Percent of Total
Commercial
Multifamily	$	11,741	27.6	%	$	3,244	12.6	%
Office	11,848		27.9		11,627		45.0
Retail	2,227		5.2		—		—
Mixed use/Other	16,704		39.3		10,957		42.4
Total mortgage loans at amortized cost	$	42,520	100.0	%	$	25,828	100.0	%