Fair Value (Tables)

12 Months Ended

Dec. 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 December 31, 2017:

Description	Total		Level 1		Level 2		Level 3

Fixed maturities:
Agency collateralized mortgage obligations	$	16,586	$	-	$	16,586	$	-
Agency mortgage-backed securities		27,075		-		27,075		-
Asset-backed securities		43,469		-		43,469		-
Bank loans		19,488		-		19,488		-
Certificates of deposit		3,135		3,135		-		-
Collateralized mortgage obligations		6,492		-		6,492		-
Corporate securities		193,058		-		193,058		-
Options embedded in convertible securities		5,291		-		5,291		-
Mortgage-backed securities		24,204		-		24,204		-
Municipal obligations		96,650		-		96,650		-
Non-U.S. government obligations		37,394		-		37,394		-
U.S. government obligations		49,011		-		49,011		-
Total fixed maturities		521,853		3,135		518,718		-
Equity securities:
Consumer		46,578		46,578		-		-
Energy		10,278		10,278		-		-
Financial		45,470		45,470		-		-
Industrial		25,402		25,402		-		-
Technology		13,061		13,061		-		-
Funds (e.g. mutual funds, closed end funds, ETFs)		50,291		45,276		5,015		-
Other		10,683		10,683		-		-
Total equity securities		201,763		196,748		5,015		-
Short term		1,000		1,000		-		-
Cash equivalents		59,173		-		59,173		-
Total	$	783,789	$	200,883	$	582,906	$	-

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		-		-
Funds (e.g. mutual funds, closed end funds, ETFs)		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 years ended December 31:

	2017			2016
Beginning of period balance	$	25,218		$	16,793
Total gains or losses (realized)
included in income		406			1,846
Purchases		81			5,540
Settlements		(9,123	)		(8,791	)
Transfers into Level 3		144			10,202
Transfers out of Level 3		(16,726	)		(372	)
End of period balance	$	-		$	25,218

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 sheet at December 31, 2017 and 2016 is as follows:

2017:	Carrying		Fair Value
	Value		Level 1		Level 2		Level 3		Total
Assets:
Limited partnerships	$	70,806	$	-	$	-	$	70,806	$	70,806

Liabilities:
Short-term borrowings		20,000		-		20,000		-		20,000

2016:
Assets:
Limited partnerships	$	76,469	$	-	$	-	$	76,469	$	76,469

Liabilities:
Short-term borrowings		20,000		-		20,000		-		20,000