Fair Value (Tables)

3 Months Ended

Mar. 31, 2017

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

The following tables summarize fair value measurements by level for assets measured at fair value on a recurring basis:

As of March 31, 2017:

Description	Total		Level 1		Level 2		Level 3

Fixed maturities:
Agency collateralized mortgage obligations	$	7,446	$	-	$	7,446	$	-
Agency mortgage-backed securities		10,693		-		10,693		-
Asset-backed securities		48,241		-		40,980		7,261
Bank loans		9,144		-		-		9,144
Certificates of deposit		3,119		3,119		-		-
Collateralized mortgage obligations		6,119		-		5,225		894
Corporate securities		177,294		20,025		156,477		792
Options embedded in convertible securities		5,015		-		5,015		-
Mortgage-backed securities		24,019		-		21,772		2,247
Municipal obligations		128,882		-		128,769		113
Non-U.S. government obligations		21,428		-		21,428		-
U.S. government obligations		67,402		-		67,402		-
Total fixed maturities		508,802		23,144		465,207		20,451
Equity securities:
Consumer		41,624		41,624		-		-
Energy		11,025		11,025		-		-
Financial		35,109		35,109		-		-
Industrial		24,147		23,139		1,008		-
Technology		9,518		9,518		-		-
Mutual fund		7,311		3,646		3,665		-
Other		6,780		6,780		-		-
Total equity securities		135,514		130,841		4,673		-
Short term		1,500		1,500		-		-
Cash equivalents		50,719		-		50,719		-
Total	$	696,535	$	155,485	$	520,599	$	20,451

As of December 31, 2016:

Description	Total		Level 1		Level 2		Level 3

Fixed maturities:
Agency collateralized mortgage obligations	$	6,171	$	-	$	6,171	$	-
Agency mortgage-backed securities		4,770		-		4,770		-
Asset-backed securities		45,183		-		37,919		7,264
Bank loans		10,349		-		-		10,349
Certificates of deposit		3,117		3,117		-		-
Collateralized mortgage obligations		9,104		-		6,409		2,695
Corporate securities		137,932		-		135,794		2,138
Options embedded in convertible securities		4,751		-		4,751		-
Mortgage-backed securities		24,571		-		22,206		2,365
Municipal obligations		129,335		-		129,190		145
Non-U.S. government obligations		24,681		-		24,419		262
U.S. government obligations		91,940		-		91,940		-
Total fixed maturities		491,904		3,117		463,569		25,218
Equity securities:
Consumer		32,576		32,576		-		-
Energy		12,842		12,842		-		-
Financial		31,186		30,943		243		-
Industrial		21,145		20,262		883		-
Technology		8,858		8,858		-		-
Mutual fund		6,995		-		6,995		-
Other		6,343		6,343		-		-
Total equity securities		119,945		111,824		8,121		-
Short term		1,500		1,500		-		-
Cash equivalents		59,683		-		59,683		-
Total	$	673,032	$	116,441	$	531,373	$	25,218

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:

	2017			2016
Beginning of period balance	$	25,218		$	16,793
Total gains or losses (realized or unrealized)
included in income		261			(175	)
Purchases		1,069			-
Settlements		(5,602	)		(316	)
Transfers into Level 3		113			-
Transfers out of Level 3		(608	)		-
End of period balance	$	20,451		$	16,302

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 condensed consolidated balance sheets at March 31, 2017 and December 31, 2016 are as follows:

	Carrying		Fair Value
	Value		Level 1		Level 2		Level 3		Total

March 31, 2017
Assets: Limited partnerships	$	65,739	$	-	$	-	$	65,739	$	65,739
Liabilities: Short-term borrowings		20,000		-		20,000		-		20,000

December 31, 2016
Assets: Limited partnerships		76,469		-		-		76,469		76,469
Liabilities: Short-term borrowings		20,000		-		20,000		-		20,000