XML 45 R24.htm IDEA: XBRL DOCUMENT

Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2023

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 September 30, 2023 and December 31, 2022 is as follows:


	September 30, 2023				December 31, 2022
	Fair Value		Carrying Value		Fair Value		Carrying Value
Assets
Investments
Fixed maturities:
Available-for-sale securities	$	1,638,638	$	1,638,512	$	1,551,339	$	1,551,336

Equity securities	51,217		51,217		169,106		169,106
Mortgage loans	42,280		45,534		35,302		37,898
Other long-term investments	93,836		93,836		86,276		86,276
Short-term investments	—		—		275		275
Cash and cash equivalents	69,150		69,150		96,650		96,650
Corporate-owned life insurance	11,000		11,000		10,588		10,588
Liabilities
Long Term Debt	34,456		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 September 30, 2023 and December 31, 2022:


September 30, 2023			Fair Value Measurements
Description	Total		Level 1		Level 2		Level 3
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	$	66,873	$	—	$	66,873	$	—
U.S. government agency	91,898		—		91,898		—
States, municipalities and political subdivisions
General obligations
Midwest	56,881		—		56,881		—
Northeast	10,999		—		10,999		—
South	53,134		—		53,134		—
West	75,326		—		75,326		—
Special revenue
Midwest	96,878		—		96,878		—
Northeast	50,552		—		50,552		—
South	159,500		—		159,500		—
West	100,516		—		100,516		—
Foreign bonds	18,336		—		18,336		—
Public utilities	127,417		—		127,417		—
Corporate bonds
Energy	41,600		—		41,600		—
Industrials	65,968		—		65,968		—
Consumer goods and services	88,506		—		88,506		—
Health care	31,537		—		31,537		—
Technology, media and telecommunications	80,248		—		80,248		—
Financial services	133,162		—		128,462		4,700
Mortgage-backed securities	21,007		—		21,007		—
Collateralized mortgage obligations
Government national mortgage association	146,670		—		146,670		—
Federal home loan mortgage corporation	71,849		—		71,849		—
Federal national mortgage association	45,887		—		45,887		—
Asset-backed securities	3,894		—		3,095		799

Total Available-for-Sale Fixed Maturities	$	1,638,638	$	—	$	1,633,139	$	5,499

































EQUITY SECURITIES
Common stocks
Public utilities	$	3,703	$	3,703	$	—	$	—
Energy	9,536		9,536		—		—
Industrials	13,023		13,023		—		—
Consumer goods and services	11,127		11,127		—		—
Health care	1,959		1,959		—		—


Technology, media and telecommunications	5,612		5,612		—		—
Financial services	6,257		6,257		—		—

Total Equity Securities	$	51,217	$	51,217	$	—	$	—
Short-Term Investments	$	—	$	—	$	—	$	—
Money Market Accounts	$	13,977	$	13,977	$	—	$	—
Corporate-Owned Life Insurance	$	11,000	$	—	$	11,000	$	—
Total Assets Measured at Fair Value	$	1,714,832	$	65,194	$	1,644,139	$	5,499


December 31, 2022			Fair Value Measurements
Description	Total		Level 1		Level 2		Level 3
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	$	14,675	$	—	$	14,675	$	—
U.S. government agency	84,406		—		84,406		—
States, municipalities and political subdivisions
General obligations
Midwest	61,113		—		61,113		—
Northeast	15,463		—		15,463		—
South	63,981		—		63,981		—
West	86,545		—		86,545		—
Special revenue
Midwest	102,266		—		102,266		—
Northeast	54,220		—		54,220		—
South	180,857		—		180,857		—
West	112,212		—		112,212		—
Foreign bonds	31,649		—		31,649		—
Public utilities	125,411		—		125,411		—
Corporate bonds
Energy	33,209		—		33,209		—
Industrials	52,842		—		52,842		—
Consumer goods and services	89,941		—		89,941		—
Health care	27,592		—		27,592		—
Technology, media and telecommunications	59,940		—		59,940		—
Financial services	124,292		—		118,617		5,675
Mortgage-backed securities	17,700		—		17,700		—
Collateralized mortgage obligations
Government national mortgage association	84,548		—		84,548		—
Federal home loan mortgage corporation	78,838		—		78,838		—
Federal national mortgage association	45,386		—		45,386		—
Asset-backed securities	4,253		—		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	$	—	$	—
Energy	19,743		19,743		—		—
Industrials	27,163		27,163		—		—
Consumer goods and services	43,139		43,139		—		—
Health care	7,981		7,981		—		—
Technology, media and telecommunications	28,213		28,213		—		—
Financial services	28,021		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 September 30, 2023:

Quantitative Information about Level 3 Fair Value Measurements

Fair Value at

Valuation Technique(s)

Unobservable inputs

Range of weighted average significant unobservable inputs

September 30, 2023

Fixed Maturities corporate

4,700

Third-party valuation

Offered quotes

90.0% - 100.0%

Fixed Maturities asset-backed securities

799

Discounted cash flow

Probability 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 September 30, 2023:


	Corporate bonds		Asset-backed securities		Total
Beginning Balance - July 1, 2023	$	4,765	$	837	$	5,602

Net unrealized gains (losses)(1)	(65)		(38)		(103)





Ending Balance - September 30, 2023	$	4,700	$	799	$	5,499

(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 nine-month period ended September 30, 2023:


	Corporate bonds		Asset-backed securities		Total
Beginning Balance - January 1, 2023	$	5,675	$	801	$	6,476

Net unrealized gains (losses)(1)	(975)		(2)		(977)





Ending Balance - September 30, 2023	$	4,700	$	799	$	5,499

(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 September 30, 2023 and December 31, 2022:


Commercial Mortgage Loans
	September 30, 2023		December 31, 2022
Loan-to-value	Carrying Value		Carrying Value
Less than 65%	$	36,883	$	29,231
65%-75%	8,706		8,716
Total amortized cost	$	45,589	$	37,947
Allowance for mortgage loan losses	(55)		(49)
Mortgage loans, net	$	45,534	$	37,898


Mortgage Loans by Region
	September 30, 2023				December 31, 2022
	Carrying Value		Percent of Total		Carrying Value		Percent of Total
East North Central	$	3,245	7.1	%	$	3,245	8.6	%
Southern Atlantic	17,265		37.8		9,397		24.7
East South Central	7,591		16.7		7,783		20.5
New England	6,588		14.5		6,588		17.4
Middle Atlantic	6,020		13.2		6,139		16.2
Mountain	1,992		4.4		1,992		5.2
West North Central	2,888		6.3		2,803		7.4
Total mortgage loans at amortized cost	$	45,589	100.0	%	$	37,947	100.0	%


Mortgage Loans by Property Type
	September 30, 2023				December 31, 2022
	Carrying Value		Percent of Total		Carrying Value		Percent of Total
Commercial
Multifamily	$	8,536	18.7	%	$	8,493	22.4	%
Office	11,030		24.3		11,267		29.7
Industrial	10,003		21.9		10,056		26.5
Retail	10,000		21.9		1,992		5.2
Mixed use/Other	6,020		13.2		6,139		16.2
Total mortgage loans at amortized cost	$	45,589	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
	2023		2022		2020		2019		2018		Total
Commercial mortgage loans:
Risk Rating:
1-2 internal grade	$	8,136	$	100	5,292		$	7,897	$	17,576	$	39,001
3-4 internal grade	—		—		—		—		6,588		6,588
5 internal grade	—		—		—		—		—		—
6 internal grade	—		—		—		—		—		—
7 internal grade	—		—		—		—		—		—
Total commercial mortgage loans	$	8,136	$	100	$	5,292	$	7,897	$	24,164	$	45,589
Current-period write-offs	—		—		—		—		—		—
Current-period recoveries	—		—		—		—		—		—
Current-period net write-offs	$	—	$	—	$	—	$	—	$	—	$	—

Summary of Rollforward of Allowance for Mortgage Loan Losses

As of September 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
	September 30, 2023
Beginning balance, January 1, 2023	$	49
Current-period provision for expected credit losses	6


Ending balance of the allowance for mortgage loan losses, September 30, 2023	$	55