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Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 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 December 31, 2023 and 2022 is as follows:


	December 31, 2023				December 31, 2022
	Fair Value		Carrying Value		Fair Value		Carrying Value
Assets
Investments
Fixed maturities:

Available-for-sale securities	$	1,686,503	$	1,686,502	$	1,551,339	$	1,551,336

Equity securities	55,019		55,019		169,106		169,106


Mortgage loans	42,632		45,366		35,302		37,898

Other long-term investments	99,507		99,507		86,276		86,276
Short-term investments	100		100		275		275
Cash and cash equivalents	102,046		102,046		96,650		96,650
Corporate-owned life insurance	11,913		11,913		10,588		10,588
Liabilities



Long term debt	38,413		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 and financial instruments not recorded at fair value on a recurring basis. The tables include financial instruments at December 31, 2023 and 2022:


			Fair Value Measurements
Description	December 31, 2023		Level 1		Level 2		Level 3
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	$	50,861	$	—	$	50,861	$	—
U.S. government agency	94,493		—		94,493		—
States, municipalities and political subdivisions
General obligations
Midwest	52,707		—		52,707		—
Northeast	11,380		—		11,380		—
South	54,207		—		54,207		—
West	77,426		—		77,426		—
Special revenue
Midwest	100,981		—		100,981		—
Northeast	52,227		—		52,227		—
South	164,266		—		164,266		—
West	101,565		—		101,565		—
Foreign bonds	19,172		—		19,172		—
Public utilities	140,467		—		140,467		—
Corporate bonds
Energy	43,473		—		43,473		—
Industrials	70,548		—		70,548		—
Consumer goods and services	95,921		—		95,921		—
Health care	33,472		—		33,472		—
Technology, media and telecommunications	81,788		—		81,788		—
Financial services	145,691		—		140,799		4,892
Mortgage-backed securities	21,483		—		21,483		—
Collateralized mortgage obligations
Government national mortgage association	153,206		—		153,206		—
Federal home loan mortgage corporation	71,685		—		66,862		4,823
Federal national mortgage association	45,653		—		45,653		—
Asset-backed securities	3,831		—		2,962		869

Total Available-for-Sale Fixed Maturities	$	1,686,503	$	—	$	1,675,919	$	10,584
































EQUITY SECURITIES
Public utilities	3,993		3,993		—		—
Energy	9,477		9,477		—		—
Industrials	14,164		14,164		—		—
Consumer goods and services	11,385		11,385		—		—
Health care	2,060		2,060		—		—
Technology, media and telecommunications	6,405		6,405		—		—


Financial services	7,535		7,535		—		—

Total Equity Securities	$	55,019	$	55,019	$	—	$	—
Short-Term Investments	$	100	$	100	$	—	$	—
Money Market Accounts	$	20,333	$	20,333	$	—	$	—
COLI	$	11,913	$	—	$	11,913	$	—
Total Assets Measured at Fair Value	$	1,773,868	$	75,452	$	1,687,832	$	10,584


			Fair Value Measurements
Description	December 31, 2022		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
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		—		—
Financial Services	28,213		28,213		—		—
Technology, media and telecommunications	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 Fair Value Measurements, Nonrecurring

The fair value of financial financial instruments that are not carried at fair value on a recurring basis in the financial statements at December 31, 2023 are summarized below:


Description	Fair Value Total		Level 1		Level 2		Level 3		Net Asset Value
Financial assets:
Cash and cash equivalents	$	81,713	$	81,713	$	—	$	—	$	—
Other Long Term Investments	$	99,507	$	—	$	1,249	$	—	$	98,258
Mortgage Loans	$	42,632	$	—	$	—	$	42,632	$	—
Total Financial assets not accounted for at fair value	$	223,852	$	81,713	$	1,249	$	42,632	$	98,258

Long Term Debt	$	38,413	$	—	$	38,413	$	—	$	—
Total Financial liabilities not accounted for at fair value	$	38,413	$	—	$	38,413	$	—	$	—

The fair value of financial financial instruments that are not carried at fair value on a recurring basis in the financial statements at December 31, 2022 are summarized below:


Description	Fair Value Total		Level 1		Level 2		Level 3		Net Asset Value
Financial assets:
Cash and cash equivalents	$	65,361	$	65,361	$	—	$	—	$	—
Other Long Term Investments	$	86,276	$	—	$	—	$	—	$	86,276
Mortgage Loans	$	35,302	$	—	$	—	$	35,302	$	—
Total Financial assets not accounted for at fair value	$	186,939	$	65,361	$	—	$	35,302	$	86,276

Long Term Debt	$	36,168	$	—	$	36,168	$	—	$	—
Total Financial liabilities not accounted for at fair value	$	36,168	$	—	$	36,168	$	—	$	—

Summary of Quantitative Information About Level 3 Fair Value Measurements

The following table provides a quantitative information about our Level 3 securities at December 31, 2023.

Quantitative Information about Level 3 Fair Value Measurements

Fair Value at

Valuation Technique(s)

Unobservable inputs

Range of weighted average significant unobservable inputs

December 31, 2023

Fixed Maturities corporate

4,892

Third Party Valuation

Offered Quotes

$90 - $100

Fixed Maturities asset-backed securities

869

Discounted cash flow

Probability of default

4% - 6%

Fixed Maturities Federal Home Loan Mortgage Corporation

4,823

Third Party Valuation

Offered Quotes

$45 - $55

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 2023:


	Corporate bonds		Asset-backed securities		Equities		Total
Beginning Balance - January 1, 2023	$	5,675	$	801	$	—	$	6,476
Realized gains (loss) (1)	—		—		—		—
Unrealized gains (losses) (1)	(783)		68		—		(715)
Purchases	—		—		—		—
Disposals	—		—		—		—
Amortization	—		—		—		—
Transfers in	—		4,823		—		4,823
Transfers out	—		—		—		—
Ending Balance - December 31, 2023	$	4,892	$	5,692	$	—	$	10,584

(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 2022:


	Corporate bonds		Asset-backed securities		Equities		Total
Beginning Balance - 01/01/2022	$	150	$	925	$	595	$	1,670
Realized gains (losses) (1)	—		—		(595)		(595)
Unrealized gains (losses) (1)	—		(124)		—		(124)
Purchases	—		—		—		—
Disposals	(150)		—		—		(150)
Transfers in	5,675		—		—		5,675
Transfers out	—		—		—		—
Ending Balance - 12/31/2022	$	5,675	$	801	$	—	$	6,476

(1) 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 December 31, 2023 and 2022:


Commercial Mortgage Loans
Loan-to-value	December 31, 2023		December 31, 2022

Less than 65%	$	36,762	29,231
65%-75%	8,659		8,716

Total amortized cost	$	45,421	$	37,947
Valuation allowance	(55)		(49)
Total mortgage loans	$	45,366	$	37,898


Mortgage Loans by Region
	December 31, 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	17,217		37.9		9,397		24.7
East South Central	7,526		16.6		7,783		20.5
New England	6,588		14.5		6,588		17.4
Middle Atlantic	5,979		13.2		6,139		16.2
Mountain	1,992		4.4		1,992		5.2
West North Central	2,874		6.3		2,803		7.4
Total mortgage loans at amortized cost	$	45,421	100.0	%	$	37,947	100.0	%


Mortgage Loans by Property Type
	December 31, 2023				December 31, 2022
	Carrying Value		Percent of Total		Carrying Value		Percent of Total
Commercial
Multifamily	$	8,507	18.7	%	$	8,493	22.4	%
Office	10,950		24.1		11,267		29.7
Industrial	9,985		22.0		10,056		26.5
Retail	10,000		22.0		1,992		5.2
Mixed use/Other	5,979		13.2		6,139		16.2
Total mortgage loans at amortized cost	$	45,421	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	$	8,135	$	100	$	5,263	$	7,866	$	17,469	$	38,833
3-4 internal grade	—		—		—		—		6,588		6,588
5 internal grade	—		—		—		—		—		—
6 internal grade	—		—		—		—		—		—
7 internal grade	—		—		—		—		—		—
Total commercial mortgage loans	$	8,135	$	100	$	5,263	$	7,866	$	24,057	$	45,421
Current-period write-offs	—		—		—		—		—		—
Current-period recoveries	—		—		—		—		—		—
Current-period net write-offs	$	—	$	—	$	—	$	—	$	—	$	—

Summary of Rollforward of Allowance for Mortgage Loan Losses

As of December 31, 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
	December 31, 2023
Beginning balance, January 1, 2023	$	49
Current-period provision for expected credit losses	6


Ending balance of the allowance for mortgage loan losses, December 31, 2023	$	55