XML 45 R24.htm IDEA: XBRL DOCUMENT v3.23.2
Fair Value of Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2023
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 June 30, 2023 and December 31, 2022 is as follows:
 June 30, 2023December 31, 2022
Fair ValueCarrying ValueFair ValueCarrying Value
Assets    
Investments    
Fixed maturities:
Available-for-sale securities$1,568,383 $1,568,382 $1,551,339 $1,551,336 
Equity securities129,625 129,625 169,106 169,106 
Mortgage loans43,078 45,701 35,302 37,898 
Other long-term investments91,663 91,663 86,276 86,276 
Short-term investments250 250 275 275 
Cash and cash equivalents79,704 79,704 96,650 96,650 
Corporate-owned life insurance11,354 11,354 10,588 10,588 
Liabilities
Long Term Debt37,050 50,000 36,168 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 June 30, 2023 and December 31, 2022:

June 30, 2023Fair Value Measurements
DescriptionTotalLevel 1Level 2Level 3
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury$21,564 $— $21,564 $— 
U.S. government agency81,245 — 81,245 — 
States, municipalities and political subdivisions
General obligations
Midwest58,483 — 58,483 — 
Northeast11,398 — 11,398 — 
South54,761 — 54,761 — 
West83,034 — 83,034 — 
Special revenue
Midwest102,133 — 102,133 — 
Northeast51,953 — 51,953 — 
South165,566 — 165,566 — 
West104,313 — 104,313 — 
Foreign bonds36,773 — 36,773 — 
Public utilities128,304 — 128,304 — 
Corporate bonds
Energy41,343 — 41,343 — 
Industrials58,613 — 58,613 — 
Consumer goods and services90,522 — 90,522 — 
Health care32,813 — 32,813 — 
Technology, media and telecommunications65,365 — 65,365 — 
Financial services126,393 — 121,628 4,765 
Mortgage-backed securities22,673 — 22,673 — 
Collateralized mortgage obligations
Government national mortgage association100,521 — 100,521 — 
Federal home loan mortgage corporation77,160 — 77,160 — 
Federal national mortgage association49,326 — 49,326 — 
Asset-backed securities4,127 — 3,290 837 
Total Available-for-Sale Fixed Maturities$1,568,383 $— $1,562,781 $5,602 
EQUITY SECURITIES
Common stocks
Public utilities$7,788 $7,788 $— $— 
Energy16,997 16,997 — — 
Industrials28,689 28,689 — — 
Consumer goods and services33,314 33,314 — — 
Health care8,199 8,199 — — 
Technology, media and telecommunications18,079 18,079 — — 
Financial services16,559 16,559 — — 
Total Equity Securities$129,625 $129,625 $— $— 
Short-Term Investments$250 $250 $— $— 
Money Market Accounts$23,813 $23,813 $— $— 
Corporate-Owned Life Insurance$11,354 $— $11,354 $— 
Total Assets Measured at Fair Value$1,733,425 $153,688 $1,574,135 $5,602 



December 31, 2022Fair Value Measurements
DescriptionTotalLevel 1Level 2Level 3
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury$14,675 $— $14,675 $— 
U.S. government agency84,406 — 84,406 — 
States, municipalities and political subdivisions
General obligations
Midwest61,113 — 61,113 — 
Northeast15,463 — 15,463 — 
South63,981 — 63,981 — 
West86,545 — 86,545 — 
Special revenue
Midwest102,266 — 102,266 — 
Northeast54,220 — 54,220 — 
South180,857 — 180,857 — 
West112,212 — 112,212 — 
Foreign bonds31,649 — 31,649 — 
Public utilities125,411 — 125,411 — 
Corporate bonds
Energy33,209 — 33,209 — 
Industrials52,842 — 52,842 — 
Consumer goods and services89,941 — 89,941 — 
Health care27,592 — 27,592 — 
Technology, media and telecommunications59,940 — 59,940 — 
Financial services124,292 — 118,617 5,675 
Mortgage-backed securities17,700 — 17,700 — 
Collateralized mortgage obligations
Government national mortgage association84,548 — 84,548 — 
Federal home loan mortgage corporation78,838 — 78,838 — 
Federal national mortgage association45,386 — 45,386 — 
Asset-backed securities4,253 — 3,452 801 
Total Available-for-Sale Fixed Maturities$1,551,339 $— $1,544,863 $6,476 
EQUITY SECURITIES
Common stocks
Public utilities$14,846 $14,846 $— $— 
Energy19,743 19,743 — — 
Industrials27,163 27,163 — — 
Consumer goods and services43,139 43,139 — — 
Health care7,981 7,981 — — 
Technology, media and telecommunications28,213 28,213 — — 
Financial services28,021 28,021 — — 
Total Equity Securities$169,106 $169,106 $— $— 
Short-Term Investments$275 $275 $— $— 
Money Market Accounts$31,289 $31,289 $— $— 
Corporate-Owned Life Insurance$10,588 $— $10,588 $— 
Total Assets Measured at Fair Value$1,762,597 $200,670 $1,555,451 $6,476 
Summary of Quantitative Information About Level 3 Fair Value Measurements
The following table provides quantitative information about our Level 3 securities at June 30, 2023:
Quantitative Information about Level 3 Fair Value Measurements
Fair Value atValuation Technique(s)Unobservable inputsRange of weighted average significant unobservable inputs
June 30, 2023
Fixed Maturities corporate$4,765 Discounted cash flowDiscount Rates
3.5% - 7.5%
Fixed Maturities asset-backed securities837 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 June 30, 2023:

Corporate bonds Asset-backed securitiesTotal
Beginning Balance - April 1, 2023$5,413 $851 $6,264 
Net unrealized gains (losses)(1)
(648)(14)(662)
Ending Balance - June 30, 2023$4,765  $837 $5,602 
(1) Net 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 the six-month period ended June 30, 2023:

Corporate bondsAsset-backed securitiesTotal
Beginning Balance - January 1, 2023$5,675 $801 $6,476 
Net unrealized gains (losses)(1)
(910)36 (874)
Ending Balance - June 30, 2023$4,765 $837 $5,602 
(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 June 30, 2023 and December 31, 2022:
Commercial Mortgage Loans
June 30, 2023December 31, 2022
Loan-to-valueCarrying ValueCarrying Value
Less than 65%$37,003 $29,231 
65%-75%8,753 8,716 
Total amortized cost$45,756 $37,947 
Allowance for mortgage loan losses(55)(49)
Mortgage loans, net$45,701 $37,898 
Mortgage Loans by Region
June 30, 2023December 31, 2022
Carrying ValuePercent of TotalCarrying ValuePercent of Total
East North Central$3,245 7.1 %$3,245 8.6 %
Southern Atlantic17,312 37.9 9,397 24.7 
East South Central7,656 16.7 7,783 20.5 
New England6,588 14.4 6,588 17.4 
Middle Atlantic6,060 13.2 6,139 16.2 
Mountain1,992 4.4 1,992 5.2 
West North Central2,903 6.3 2,803 7.4 
Total mortgage loans at amortized cost$45,756 100.0 %$37,947 100.0 %
Mortgage Loans by Property Type
June 30, 2023December 31, 2022
Carrying ValuePercent of TotalCarrying ValuePercent of Total
Commercial   
Multifamily$8,565 18.7 %$8,493 22.4 %
Office11,110 24.3 11,267 29.7 
Industrial
10,021 21.9 10,056 26.5 
Retail
10,000 21.9 1,992 5.2 
Mixed use/Other
6,060 13.2 6,139 16.2 
Total mortgage loans at amortized cost$45,756 100.0 %$37,947 100.0 %
Summary of Amortized Cost Basis by Year of Origination and Credit Quality Indicator
Amortized Cost Basis by Year of Origination and Credit Quality Indicator
20232022202020192018Total
Commercial mortgage loans:
Risk Rating:
1-2 internal grade$8,136 $101 5,321 $7,928 $17,682 $39,168 
3-4 internal grade— — — — 6,588 6,588 
5 internal grade— — — — — — 
6 internal grade— — — — — — 
7 internal grade— — — — — — 
Total commercial mortgage loans$8,136 $101 $5,321 $7,928 $24,270 $45,756 
Current-period write-offs— — — — — — 
Current-period recoveries— — — — — — 
Current-period net write-offs$— $— $— $— $— $— 
Summary of Rollforward of Allowance for Mortgage Loan Losses As of June 30, 2023, the Company had an allowance for mortgage loan losses of $55, summarized in the following rollforward:
Rollforward of allowance for mortgage loan losses:
As of
June 30, 2023
Beginning balance, January 1, 2023$49 
Current-period provision for expected credit losses6 
Ending balance of the allowance for mortgage loan losses, June 30, 2023
$55