| Fair value by hierarchy |
The following tables present, for each of the fair value hierarchy levels, our assets and liabilities for which we report fair value on a recurring basis ($ in thousands): | | | | | | | | | | | | | | | | | | Fair Value | March 31, 2018 | Level 1 | | Level 2 | | Level 3 | | Total | Cash and cash equivalents | $ | 88,793 |
| | $ | 0 |
| | $ | 0 |
| | $ | 88,793 |
| Fixed maturity securities: | | | | | | | | U.S. government | 124,757 |
| | 0 |
| | 0 |
| | 124,757 |
| State and municipal | 0 |
| | 296,048 |
| | 766 |
| | 296,814 |
| Mortgage-backed securities: |
| | | | | | | Residential | 0 |
| | 365,007 |
| | 0 |
| | 365,007 |
| Commercial | 0 |
| | 59,204 |
| | 2,857 |
| | 62,061 |
| Total mortgage-backed securities | 0 |
| | 424,211 |
| | 2,857 |
| | 427,068 |
| Asset-backed securities | 0 |
| | 110,836 |
| | 17,647 |
| | 128,484 |
| Corporates | 0 |
| | 520,698 |
| | 109 |
| | 520,807 |
| Total fixed maturities | 124,757 |
| | 1,351,794 |
| | 21,379 |
| | 1,497,930 |
| Equity securities | 90,498 |
| | 0 |
| | 0 |
| | 90,498 |
| Short-term investments | 0 |
| | 0 |
| | 0 |
| | 0 |
| Total cash and investments | $ | 304,048 |
| | $ | 1,351,794 |
| | $ | 21,379 |
| | $ | 1,677,221 |
| Percentage of total cash and investments | 18.1 | % | | 80.6 | % | | 1.3 | % | | 100.0 | % | | | | | | | | | December 31, 2017 | | | | | | | | Cash and cash equivalents | $ | 107,589 |
| | $ | 0 |
| | $ | 0 |
| | $ | 107,589 |
| Fixed maturity securities: | | | | | | | | U.S. government | 60,528 |
| | 0 |
| | 0 |
| | 60,528 |
| State and municipal | 0 |
| | 490,724 |
| | 3,488 |
| | 494,211 |
| Mortgage-backed securities: | | | | | | | | Residential | 0 |
| | 350,992 |
| | 0 |
| | 350,992 |
| Commercial | 0 |
| | 30,569 |
| | 0 |
| | 30,569 |
| Total mortgage-backed securities | 0 |
| | 381,561 |
| | 0 |
| | 381,561 |
| Asset-backed securities | 0 |
| | 62,266 |
| | 152 |
| | 62,418 |
| Corporates | 0 |
| | 442,281 |
| | 108 |
| | 442,390 |
| Total fixed maturities | 60,528 |
| | 1,376,832 |
| | 3,748 |
| | 1,441,107 |
| Equity securities | 96,004 |
| | 0 |
| | 0 |
| | 96,004 |
| Short-term investments | 0 |
| | 2,541 |
| | 0 |
| | 2,541 |
| Total cash and investments | $ | 264,121 |
| | $ | 1,379,373 |
| | $ | 3,748 |
| | $ | 1,647,242 |
| Percentage of total cash and investments | 16.0 | % | | 83.7 | % | | 0.2 | % | | 100.0 | % |
|
| Fair value level 3 reconciliation |
The following tables present the progression in the Level 3 fair value category ($ in thousands): | | | | | | | | | | | | | | | | | | | | | Three months ended March 31, 2018 | State and Municipal | | Mortgage- Backed Securities | | Asset-Backed Securities | | Corporates | | Total | Balance at beginning of period | $ | 3,488 |
| | $ | 0 |
| | $ | 152 |
| | $ | 108 |
| | $ | 3,748 |
| Total (losses) gains, unrealized or realized | | | | | | | | | | Included in net earnings | (10 | ) | | 0 |
| | (0 | ) | | (0 | ) | | (10 | ) | Included in other comprehensive income | 3 |
| | 10 |
| | 27 |
| | 1 |
| | 41 |
| Purchases | 0 |
| | 2,847 |
| | 17,729 |
| | 0 |
| | 20,576 |
| Sales | (3,360 | ) | | 0 |
| | 0 |
| | 0 |
| | (3,360 | ) | Settlements | 0 |
| | 0 |
| | (261 | ) | | 0 |
| | (261 | ) | Transfers in | 645 |
| | 0 |
| | 0 |
| | 0 |
| | 645 |
| Balance at end of period | $ | 766 |
| | $ | 2,857 |
| | $ | 17,647 |
| | $ | 109 |
| | $ | 21,379 |
| | | | | | | | | | | Three months ended March 31, 2017 | | | | | | | | | | Balance at beginning of period | $ | 3,860 |
| | $ | 0 |
| | $ | 412 |
| | $ | 666 |
| | $ | 4,938 |
| Total (losses) gains, unrealized or realized | | | | | | | | | | Included in net earnings | (31 | ) | | 0 |
| | 0 |
| | 1 |
| | (30 | ) | Included in other comprehensive income | 15 |
| | 0 |
| | 1 |
| | (22 | ) | | (6 | ) | Purchases | 0 |
| | 0 |
| | 4,259 |
| | 2,000 |
| | 6,259 |
| Sales | (694 | ) | | 0 |
| | 0 |
| | 0 |
| | (694 | ) | Settlements | 0 |
| | 0 |
| | (88 | ) | | (92 | ) | | (180 | ) | Transfers in | 329 |
| | 0 |
| | 0 |
| | 0 |
| | 329 |
| Balance at end of period | $ | 3,479 |
| | $ | 0 |
| | $ | 4,584 |
| | $ | 2,553 |
| | $ | 10,616 |
|
|
| Carrying Value and Estimated Fair Value |
The following table presents the carrying value and estimated fair value of our financial instruments ($ in thousands): | | | | | | | | | | | | | | | | | | March 31, 2018 | | December 31, 2017 | | Carrying Value | | Fair Value | | Carrying Value | | Fair Value | Assets: | | | | | | | | Cash and cash equivalents | $ | 88,793 |
| | $ | 88,793 |
| | $ | 107,589 |
| | $ | 107,589 |
| Available-for-sale securities: | | | | | | | | Fixed maturities | 1,497,930 |
| | 1,497,930 |
| | 1,441,107 |
| | 1,441,107 |
| Equity securities | 90,498 |
| | 90,498 |
| | 96,004 |
| | 96,004 |
| Short-term investments | 0 |
| | 0 |
| | 2,541 |
| | 2,541 |
| Total cash and investments | $ | 1,677,221 |
| | $ | 1,677,221 |
| | $ | 1,647,242 |
| | $ | 1,647,242 |
| Liabilities: | | | | | | | | Long-term debt | $ | 273,865 |
| | $ | 286,330 |
| | $ | 273,809 |
| | $ | 290,824 |
|
|