Fair Value (Tables)

9 Months Ended

Sep. 30, 2014

Presentation of Carrying Values and Fair Values of Certain of Company's Financial Instruments

The carrying values and fair values of certain of the Company’s financial instruments were as follows (in thousands).

	September 30, 2014				December 31, 2013
	Carrying Value		Fair Value		Carrying Value		Fair Value
Assets:
Investments, available-for-sale	$	121,513	$	121,513	$	130,248	$	130,248
Other investments		9,922		9,922		7,513		7,513
Liabilities:
Debentures payable		40,330		19,507		40,301		15,006

Presentation of Fair-Value Measurements for Each Major Category of Assets Measured on Recurring Basis

The following tables present the fair-value measurements for each major category of assets that are measured on a recurring basis (in thousands).

			Fair Value Measurements Using
September 30, 2014	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Fixed maturities, available-for-sale:
U.S. government and agencies	$	4,287	$	4,287	$	-	$	-
State		731		-		731		-
Political subdivisions		508		-		508		-
Revenue and assessment		12,519		-		12,519		-
Corporate bonds		76,426		-		76,426		-
Collateralized mortgage obligations:
Agency backed		7,071		-		7,071		-
Non-agency backed – residential		4,358		-		4,358		-
Non-agency backed – commercial		3,121		-		3,121		-
Total fixed maturities, available-for-sale		109,021		4,287		104,734		-
Preferred stock, available-for-sale		1,721		1,721		-		-
Mutual funds, available-for-sale		10,771		10,771		-		-
Total investments, available-for-sale		121,513		16,779		104,734		-
Other investments		9,922		-		-		9,922
Cash and cash equivalents		96,496		96,496		-		-
Total	$	227,931	$	113,275	$	104,734	$	9,922

			Fair Value Measurements Using
December 31, 2013	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Fixed maturities, available-for-sale:
U.S. government and agencies	$	12,485	$	12,485	$	—	$	—
State		736		—		736		—
Political subdivisions		612		—		612		—
Revenue and assessment		14,658		—		14,658		—
Corporate bonds		73,325		—		73,325		—
Collateralized mortgage obligations:
Agency backed		7,514		—		7,514		—
Non-agency backed – residential		4,660		—		4,660		—
Non-agency backed – commercial		3,943		—		3,943		—
Total fixed maturities, available-for-sale		117,933		12,485		105,448		—
Preferred stock available-for-sale		1,578		1,578		—		—
Mutual funds, available-for-sale		10,737		10,737		—		—
Total investments, available-for-sale		130,248		24,800		105,448		—
Other investments		7,513		—		—		7,513
Cash and cash equivalents		72,033		72,033		—		—
Total	$	209,794	$	96,833	$	105,448	$	7,513

Quantitative Disclosure for Assets Classified as Level 3

The following table represents the quantitative disclosure for those assets classified as Level 3 during the nine months ended September 30, 2014 (in thousands).

		Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Limited partnership interests carried at
	Net Asset Value		Equity Method		Common Stock at Fair Value		Total
Balance at December 31, 2013	$	3,314	$	4,199	$	-	$	7,513
Gains included in net income		117		131		-		248
Investments and capital calls		1,616		-		720		2,336
Distributions received		(175)		-		-		(175)
Transfers into and out of Level 3		-		-		-		-
Balance at September 30, 2014	$	4,872	$	4,330	$	720	$	9,922

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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