XML 36 R22.htm IDEA: XBRL DOCUMENT v3.22.1
Fair Value of Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2022
Fair Value Disclosures [Abstract]  
Summary of Carrying Value and Estimated Fair Value of Financial Instruments
A summary of the carrying value and estimated fair value of our financial instruments at March 31, 2022 and December 31, 2021 is as follows:
 March 31, 2022December 31, 2021
Fair ValueCarrying ValueFair ValueCarrying Value
Assets    
Investments    
Fixed maturities:
Available-for-sale securities$1,651,468 $1,651,468 $1,719,790 $1,719,785 
Equity securities194,230 194,230 213,401 213,401 
Mortgage loans46,998 46,976 48,815 47,130 
Other long-term investments84,007 84,007 84,090 84,090 
Short-term investments275 275 275 275 
Cash and cash equivalents109,522 109,522 132,104 132,104 
Corporate-owned life insurance10,934 10,934 10,755 10,755 
Liabilities
Long Term Debt42,598 50,000 46,047 50,000 
Summary of 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 March 31, 2022 and December 31, 2021:

March 31, 2022Fair Value Measurements
DescriptionTotalLevel 1Level 2Level 3
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury$40,398 $— $40,398 $— 
U.S. government agency70,958 — 70,958 — 
States, municipalities and political subdivisions
General obligations
Midwest71,194 — 71,194 — 
Northeast22,184 — 22,184 — 
South69,014 — 69,014 — 
West95,037 — 95,037 — 
Special revenue
Midwest114,541 — 114,541 — 
Northeast56,311 — 56,311 — 
South202,413 — 202,413 — 
West126,617 — 126,617 — 
Foreign bonds33,906 — 33,906 — 
Public utilities114,666 — 114,666 — 
Corporate bonds
Energy38,697 — 38,697 — 
Industrials52,376 — 52,376 — 
Consumer goods and services74,066 — 74,066 — 
Health care25,976 — 25,976 — 
Technology, media and telecommunications60,170 — 60,170 — 
Financial services118,603 — 118,453 150 
Mortgage-backed securities22,018 — 22,018 — 
Collateralized mortgage obligations
Government national mortgage association98,002 — 98,002 — 
Federal home loan mortgage corporation99,971 — 99,971 — 
Federal national mortgage association43,461 — 43,461 — 
Asset-backed securities889 — — 889 
Total Available-for-Sale Fixed Maturities$1,651,468 $— $1,650,429 $1,039 
EQUITY SECURITIES
Common stocks
Public utilities$18,193 $18,193 $— $— 
Energy19,158 19,158 — — 
Industrials27,880 27,880 — — 
Consumer goods and services47,603 47,603 — — 
Health care9,284 9,284 — — 
Technology, media and telecommunications37,394 37,394 — — 
Financial services34,718 34,718 — — 
Total Equity Securities$194,230 $194,230 $— $— 
Short-Term Investments$275 $275 $— $— 
Money Market Accounts$42,926 $42,926 $— $— 
Corporate-Owned Life Insurance$10,934 $— $10,934 $— 
Total Assets Measured at Fair Value$1,899,833 $237,431 $1,661,363 $1,039 



December 31, 2021Fair Value Measurements
DescriptionTotalLevel 1Level 2Level 3
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury$41,923 $— $41,923 $— 
U.S. government agency61,667 — 61,667 — 
States, municipalities and political subdivisions
General obligations
Midwest74,346 — 74,346 — 
Northeast22,762 — 22,762 — 
South94,044 — 94,044 — 
West99,078 — 99,078 — 
Special revenue
Midwest122,289 — 122,289 — 
Northeast59,732 — 59,732 — 
South215,670 — 215,670 — 
West134,649 — 134,649 — 
Foreign bonds30,906 — 30,906 — 
Public utilities107,493 — 107,493 — 
Corporate bonds
Energy32,681 — 32,681 — 
Industrials57,171 — 57,171 — 
Consumer goods and services72,844 — 72,844 — 
Health care27,429 — 27,429 — 
Technology, media and telecommunications57,497 — 57,497 — 
Financial services102,615 — 102,465 150 
Mortgage-backed securities25,013 — 25,013 — 
Collateralized mortgage obligations
Government national mortgage association110,518 — 110,518 — 
Federal home loan mortgage corporation119,989 — 119,989 — 
Federal national mortgage association48,549 — 48,549 — 
Asset-backed securities925 — — 925 
Total Available-for-Sale Fixed Maturities$1,719,790 $— $1,718,715 $1,075 
EQUITY SECURITIES
Common stocks
Public utilities$17,940 $17,940 $— $— 
Energy13,593 13,593 — — 
Industrials31,400 31,400 — — 
Consumer goods and services56,233 56,233 — — 
Health care13,845 13,845 — — 
Technology, media and telecommunications33,973 33,973 — — 
Financial services45,822 45,822 — — 
Nonredeemable preferred stocks595 — — 595 
Total Equity Securities$213,401 $212,806 $— $595 
Short-Term Investments$275 $275 $— $— 
Money Market Accounts$43,351 $43,351 $— $— 
Corporate-Owned Life Insurance$10,755 $— $10,755 $— 
Total Assets Measured at Fair Value$1,987,572 $256,432 $1,729,470 $1,670 
Summary of Quantitative Information About Level 3 Fair Value Measurements
The following table provides a quantitative information about our Level 3 securities at March 31, 2022:
Quantitative Information about Level 3 Fair Value Measurements
Fair Value atValuation Technique(s)Unobservable inputsRange of weighted average significant unobservable inputs
March 31, 2022
Corporate bonds - financial services$150 Fair value equals costNANA
Fixed Maturities asset-backed securities889 Discounted cash flowProbability of default
4% - 6%
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 March 31, 2022:

Corporate bondsAsset-backed securitiesEquitiesTotal
Balance at January 1, 2022$150 $925 $595 $1,670 
Realized gains (losses)— — (595)(595)
Net unrealized gains (losses)(1)
— (36)— (36)
Balance at March 31, 2022$150 $889 $— $1,039 
(1) Net unrealized gains (losses) are recorded as a component of comprehensive income.
Summary of 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 March 31, 2022 and December 31, 2021:
Commercial Mortgage Loans
March 31, 2022December 31, 2021
Loan-to-valueCarrying ValueCarrying Value
Less than 65%$29,811 $29,924 
65%-75%17,231 17,277 
Total amortized cost$47,042 $47,201 
Allowance for mortgage loan losses(66)(71)
Mortgage loans, net$46,976 $47,130 
Mortgage Loans by Region
March 31, 2022December 31, 2021
Carrying ValuePercent of TotalCarrying ValuePercent of Total
East North Central$3,245 6.9 %$3,245 6.9 %
Southern Atlantic9,533 20.3 9,578 20.3 
East South Central7,968 16.9 8,028 17.0 
New England6,588 14.0 6,588 14.0 
Middle Atlantic14,740 31.4 14,789 31.3 
Mountain2,227 4.7 2,227 4.7 
West North Central2,741 5.8 2,746 5.8 
Total mortgage loans at amortized cost$47,042 100.0 %$47,201 100.0 %
Mortgage Loans by Property Type
March 31, 2022December 31, 2021
Carrying ValuePercent of TotalCarrying ValuePercent of Total
Commercial   
Multifamily$16,956 36.0 %$16,986 36.0 %
Office11,496 24.5 11,571 24.5 
Industrial
10,108 21.5 10,124 21.5 
Retail
2,227 4.7 2,227 4.7 
Mixed use/Other
6,255 13.3 6,293 13.3 
Total mortgage loans at amortized cost$47,042 100.0 %$47,201 100.0 %
Summary of Amortized Cost Basis by Year of Origination and Credit Quality Indicator
Amortized Cost Basis by Year of Origination and Credit Quality Indicator
202020192018Total
Commercial mortgage loans:
Risk Rating:
1-2 internal grade$5,462 $8,314 $18,193 $31,969 
3-4 internal grade— 8,485 6,588 15,073 
5 internal grade— — — — 
6 internal grade— — — — 
7 internal grade— — — — 
Total commercial mortgage loans$5,462 $16,799 $24,781 $47,042 
Current-period write-offs— — — — 
Current-period recoveries— — — — 
Current-period net write-offs$— $— $— $— 
Summary of Rollforward of Allowance for Mortgage Loan Losses As of March 31, 2022, the Company had an allowance for mortgage loan losses of $66, summarized in the following rollforward:
Rollforward of allowance for mortgage loan losses:
As of
March 31, 2022
Beginning balance, January 1, 2022$71 
Current-period provision for expected credit losses(5)
Ending balance of the allowance for mortgage loan losses, March 31, 2022
$66