Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2013

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

At September 30, 2013, assets and liabilities measured at fair value on a recurring basis are summarized below:

	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
	(in thousands)
Financial instruments carried at fair value, classified as a part of:
Other investments	$	—	$	—	$	10,271	$	10,271
Securities available for sale—equity:
Domestic common stock		12,260		—		—		12,260
Securities available for sale—fixed maturity:
States and political subdivisions		—		130,558		—		130,558
Corporate bonds		—		64,102		—		64,102
U.S. agency-based mortgage-backed securities		—		8,041		—		8,041
Total securities available for sale—fixed maturity		—		202,701		—		202,701
Total available for sale	$	12,260	$	202,701	$	10,271	$	225,232

At December 31, 2012, assets and liabilities measured at fair value on a recurring basis are summarized below:

	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
	(in thousands)
Securities available for sale—equity
Domestic common stock	$	6,766	$	—	$	—	$	6,766
Securities available for sale—fixed maturity
States and political subdivisions		—		98,242		—		98,242
Corporate bonds		—		39,810		—		39,810
U.S. agency-based mortgage-backed securities		—		11,087		—		11,087
Total available for sale—fixed maturity		—	$	149,139	$	—	$	149,139
Total available for sale	$	6,766	$	149,139	$	—	$	155,905

Schedule of Assets and Liabilities Measured at Amortized Cost

At September 30, 2013, assets and liabilities measured at amortized cost are summarized below:

	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
	(in thousands)
Securities held-to-maturity—fixed maturity
States and political subdivisions	$	—	$	407,582	$	—	$	407,582
Corporate bonds		—		72,072		—		72,072
Commercial mortgage-backed securities		—		55,275		—		55,275
U.S. agency-based mortgage-backed securities		—		25,842		—		25,842
U.S. Treasury securities and obligations of U.S. Government agencies		6,640		6,012		—		12,652
Asset-backed securities		—		3,566		—		3,566
Total held-to-maturity	$	6,640	$	570,349	$	—	$	576,989

At December 31, 2012, assets and liabilities measured at amortized cost are summarized below:

	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
	(in thousands)
Securities held-to-maturity—fixed maturity
States and political subdivisions	$	—	$	431,968	$	—	$	431,968
Corporate bonds		—		84,377		—		84,377
Commercial mortgage-backed securities		—		57,962		—		57,962
U.S. agency-based mortgage-backed securities		—		36,042		—		36,042
U.S. Treasury securities and obligations of U.S. Government agencies		6,174		6,581		—		12,755
Asset-backed securities		—		4,245		—		4,245
Total held-to-maturity	$	6,174	$	621,175	$	—	$	627,349

Summary of Carrying Values and Corresponding Fair Values for Financial Instruments

The following table summarizes the carrying values and corresponding fair values for financial instruments:

	As of September 30, 2013				As of December 31, 2012
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(in thousands)
Assets:
Fixed maturity securities—held-to-maturity	$	550,153	$	576,989	$	583,287	$	627,349
Fixed maturity securities—available-for-sale		202,701		202,701		149,139		149,139
Equity securities		12,260		12,260		6,766		6,766
Cash and cash equivalents		116,778		116,778		92,676		92,676
Short-term Investments		86,131		86,131		68,924		68,924
Other Investments		10,271		10,271		—		—

Summary of Changes in Fair Value of Assets Measured at Fair Value

The following table presents summary information regarding changes in the fair value of assets measured at fair value using Level 3 input.

	September 30, 2013
	(in thousands)
Balance at January 1, 2013	$	—
Purchases		10,000
Total gains unrealized (Included in earnings as part of net investment income)		271
Balance at September 30, 2013	$	10,271