Fair Value (Tables)

3 Months Ended

Mar. 31, 2016

Fair value measurements by level for assets measured at fair value on a recurring basis

Assets and liabilities recorded at fair value in the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The following tables summarize fair value measurements by level for assets measured at fair value on a recurring basis:

As of March 31, 2016:

Description	Total		Level 1		Level 2		Level 3
Fixed maturities:
U.S. government obligations	$	128,428	$	-	$	128,428	$	-
Residential mortgage-backed securities		4,534		-		4,534		-
Commercial mortgage-backed securities		32,374		-		30,967		1,407
State and municipal obligations		111,882		-		111,882		-
Corporate securities		166,188		-		151,589		14,599
Options embedded in convertible securities		2,205		-		2,205		-
Foreign government obligations		25,372		-		25,076		296
Total fixed maturities		470,983		-		454,681		16,302
Equity securities:
Financial institutions		23,150		23,150		-		-
Industrial & miscellaneous		114,893		114,893		-		-
Total equity securities		138,043		138,043		-		-
Short-term		2,215		2,215		-		-
Cash equivalents		42,311		-		42,311		-
	$	653,552	$	140,258	$	496,992	$	16,302

As of December 31, 2015:

Description	Total		Level 1		Level 2		Level 3
Fixed maturities:
U.S. government obligations	$	103,245	$	-	$	103,245	$	-
Residential mortgage-backed securities		4,776		-		4,776		-
Commercial mortgage-backed securities		30,595		-		29,226		1,369
State and municipal obligations		110,578		-		110,578		-
Corporate securities		161,630		-		146,488		15,142
Options embedded in convertible securities		2,395		-		2,395		-
Foreign government obligations		23,965		-		23,683		282
Total fixed maturities		437,184		-		420,391		16,793
Equity securities:
Financial institutions		21,694		21,694		-		-
Industrial & miscellaneous		123,804		123,804		-		-
Total equity securities		145,498		145,498		-		-
Short-term		2,220		2,220		-		-
Cash equivalents		69,517		-		69,517		-
	$	654,419	$	147,718	$	489,908	$	16,793

Reconciliation of beginning and ending balances of assets measured at fair value on a recurring basis using level 3 inputs

A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using Level 3 inputs is as follows for the three months ended March 31, 2016 and for the year ended December 31, 2015:

	2016			2015
Beginning of period balance	$	16,793		$	12,208
Total gains or losses (realized or unrealized)
included in income		(175	)		(104	)
Purchases		-			2,284
Settlements		(316	)		(8,068	)
Transfers into level 3		-			11,586
Transfers out of level 3		-			(1,113	)
End of period balance	$	16,302		$	16,793

Summary of the carrying value and fair value by level of financial instruments

A summary of the carrying value and fair value by level of financial instruments not recorded at fair value on the Company's consolidated balance sheets at March 31, 2016 and December 31, 2015 are as follows:

	Carrying		Fair Value
	Value		Level 1		Level 2		Level 3		Total

March 31, 2016
Assets: Limited partnerships	$	73,279	$	-	$	-	$	73,279	$	73,279
Liabilities: Short-term borrowings		20,000		-		20,000		-		20,000

December 31, 2015
Assets: Limited partnerships		75,458		-		-		75,458		75,458
Liabilities: Short-term borrowings		20,000		-		20,000		-		20,000