Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2022

Schedule of Assets Measured for at Fair Value on Recurring Basis

The following tables set forth by level within the fair value hierarchy the Company’s assets measured at fair value on a recurring basis as of the dates presented (in thousands):


	Fair Value Measurements
	September 30, 2022
	Level 1		Level 2		Level 3		Total
Available-For-Sale Debt Securities:
U.S. government obligations and agencies	$	—	$	11,598	$	—	$	11,598
Corporate bonds	—		675,363		—		675,363
Mortgage-backed and asset-backed securities	—		289,733		—		289,733
Municipal bonds	—		12,438		—		12,438
Redeemable preferred stock	—		7,651		—		7,651
Equity Securities:
Common stock	19,746		—		—		19,746
Mutual funds	62,641		—		—		62,641
Total assets accounted for at fair value	$	82,387	$	996,783	$	—	$	1,079,170


	Fair Value Measurements
	December 31, 2021
	Level 1		Level 2		Level 3		Total
Available-For-Sale Debt Securities:
U.S. government obligations and agencies	$	—	$	26,806	$	—	$	26,806
Corporate bonds	—		673,805		—		673,805
Mortgage-backed and asset-backed securities	—		316,118		—		316,118
Municipal bonds	—		14,574		—		14,574
Redeemable preferred stock	—		9,152		—		9,152
Equity Securities:
Common stock	3,683		—		—		3,683
Mutual funds	43,651		—		—		43,651

Total assets accounted for at fair value	$	47,334	$	1,040,455	$	—	$	1,087,789

Schedule of Carrying Value and Estimated Fair Values of Financial Instruments not Carried at Fair Value

The following table summarizes the carrying value and estimated fair values of the Company’s financial instruments not carried at fair value as of the dates presented (in thousands):


	September 30, 2022				December 31, 2021
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Liabilities (debt):
Surplus note (1)	$	5,882	$	5,516	$	6,985	$	6,723
5.625% Senior unsecured notes (2)	100,000		99,042		100,000		99,464
Total debt	$	105,882	$	104,558	$	106,985	$	106,187

(1) The fair value of the surplus note was determined by management from the expected cash flows discounted using the interest rate quoted by the holder. The SBA is the holder of the surplus note and the quoted interest rate is below prevailing rates quoted by private lending institutions. However, as the Company’s use of funds from the surplus note is limited by the terms of the agreement, the Company has determined the interest rate quoted by the SBA to be appropriate for purposes of establishing the fair value of the note (Level 3).

(2) The fair value of the senior unsecured notes was determined based on pricing from quoted prices for similar assets in active markets and was included as Level 2.