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<td style="text-align: left; width: 0.5in;"><b>1.</b></td>
<td style="text-align: justify;"><b>Accounting Policies</b></td>
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<p style="widows: 2; text-transform: none; text-indent: 0px; margin: 0px; font: 10pt 'times new roman', times, serif; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; word-spacing: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b> </b></p>
<p style="text-align: justify; widows: 2; text-transform: none; text-indent: 0px; margin: 0px; font: 10pt 'times new roman', times, serif; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; word-spacing: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b>Organization</b></p>
<p style="text-align: justify; widows: 2; text-transform: none; text-indent: 0px; margin: 0px; font: 10pt 'times new roman', times, serif; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; word-spacing: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b> </b></p>
<p style="text-align: justify; widows: 2; text-transform: none; text-indent: 0.25in; margin: 0px; font: 10pt 'times new roman', times, serif; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; word-spacing: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">James River Group Holdings, Ltd. (referred to as “JRG Holdings” or, with its subsidiaries, the “Company”) is an exempted holding company registered in Bermuda, organized for the purpose of acquiring and managing insurance and reinsurance entities.</p>
<p style="text-align: justify; widows: 2; text-transform: none; text-indent: 0.25in; margin: 0px; font: 10pt 'times new roman', times, serif; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; word-spacing: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="text-align: justify; widows: 2; text-transform: none; text-indent: 0.25in; margin: 0px; font: 10pt 'times new roman', times, serif; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; word-spacing: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The Company owns six insurance companies based in the United States (“U.S.”) focused on specialty insurance niches and a Bermuda-based reinsurance company as described below:</p>
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<td style="width: 18pt;"><font style="font-family: symbol;">·</font></td>
<td style="text-align: justify;">James River Group Holdings UK Limited (“James River UK”) is an insurance holding company formed in 2015 in the United Kingdom (“U.K.”). JRG Holdings contributed James River Group, Inc. (“James River Group”), a U.S. insurance holding company, to James River UK in 2015.</td>
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<td style="width: 17.75pt;"><font style="font-family: symbol;">·</font></td>
<td style="text-align: justify;">James River Group is a Delaware domiciled insurance holding company formed in 2002, which owns all of the Company’s U.S.-based subsidiaries, either directly or indirectly through one of its wholly-owned U.S. subsidiaries. James River Group oversees the Company’s U.S. insurance operations and maintains all of the outstanding debt in the U.S.</td>
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<p style="widows: 2; text-transform: none; text-indent: -0.25in; margin: 0px 0px 0px 40.5pt; font: 10pt 'times new roman', times, serif; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; word-spacing: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
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<td style="width: 18pt;"><font style="font-family: symbol;">·</font></td>
<td style="text-align: justify;">James River Insurance Company (“James River Insurance”) is an Ohio domiciled excess and surplus lines insurance company that, with its wholly-owned insurance subsidiary, James River Casualty Company, is authorized to write business in every state and the District of Columbia.</td>
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<p style="widows: 2; text-transform: none; text-indent: -0.25in; margin: 0px 0px 0px 40.5pt; font: 10pt 'times new roman', times, serif; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; word-spacing: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
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<td style="width: 18pt;"><font style="font-family: symbol;">·</font></td>
<td style="text-align: justify;">Falls Lake National Insurance Company (“Falls Lake National”) is an Ohio domiciled insurance company which wholly owns Stonewood Insurance Company (“Stonewood Insurance”), a North Carolina domiciled company, Falls Lake General Insurance Company, an Ohio domiciled company, and Falls Lake Fire and Casualty Company, a California domiciled company. Falls Lake National began writing specialty admitted fronting and program business in late 2013. Falls Lake Fire and Casualty began operations in 2016.</td>
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<td style="text-align: justify;">Stonewood Insurance is a workers’ compensation insurance company that writes insurance primarily for the residential construction and light manufacturing industries. Stonewood Insurance writes workers’ compensation coverage in North Carolina, Virginia, South Carolina, and Tennessee.</td>
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<p style="widows: 2; text-transform: none; text-indent: -0.25in; margin: 0px 0px 0px 40.5pt; font: 10pt 'times new roman', times, serif; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; word-spacing: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
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<td style="width: 18pt;"><font style="font-family: symbol;">·</font></td>
<td style="text-align: justify;">​JRG Reinsurance Company, Ltd. (“JRG Re”) was formed in 2007 and commenced operations in 2008. JRG Re, a Bermuda domiciled reinsurer, provides non-catastrophe casualty reinsurance to U.S. third parties and to the Company’s U.S.-based insurance subsidiaries.</td>
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<p style="widows: 2; text-transform: none; text-indent: -0.25in; margin: 0px 0px 0px 40.5pt; font: 10pt 'times new roman', times, serif; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; word-spacing: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="text-align: justify; widows: 2; text-transform: none; text-indent: 0px; margin: 0px; font: 10pt 'times new roman', times, serif; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; word-spacing: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b>Basis of Presentation</b></p>
<p style="text-align: justify; widows: 2; text-transform: none; text-indent: 0px; margin: 0px; font: 10pt 'times new roman', times, serif; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; word-spacing: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b> </b></p>
<p style="text-align: justify; widows: 2; text-transform: none; text-indent: 0.25in; margin: 0px; font: 10pt 'times new roman', times, serif; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; word-spacing: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The accompanying condensed consolidated financial statements and notes have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and do not contain all of the information and footnotes required by U.S. GAAP for complete financial statements. The condensed consolidated financial statements include the results of the Company and its subsidiaries from their respective dates of inception or acquisition, as applicable. Readers are urged to review the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 for a more complete description of the Company’s business and accounting policies. In the opinion of management, all adjustments necessary for a fair presentation of the condensed consolidated financial statements have been included. Such adjustments consist only of normal recurring items. Interim results are not necessarily indicative of results of operations for the full year. The consolidated balance sheet as of December 31, 2016 was derived from the Company’s audited annual consolidated financial statements.</p>
<p style="text-align: justify; widows: 2; text-transform: none; text-indent: 0.25in; margin: 0px; font: 10pt 'times new roman', times, serif; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; word-spacing: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="text-align: justify; widows: 2; text-transform: none; text-indent: 0.25in; margin: 0px; font: 10pt 'times new roman', times, serif; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; word-spacing: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Intercompany transactions and balances have been eliminated.</p>
<p style="text-align: justify; widows: 2; text-transform: none; text-indent: 0.25in; margin: 0px; font: 10pt 'times new roman', times, serif; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; word-spacing: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> <b> </b></p>
<p style="text-align: justify; widows: 2; text-transform: none; text-indent: 0px; margin: 0px; font: 10pt 'times new roman', times, serif; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; word-spacing: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b>Estimates and Assumptions</b></p>
<p style="text-align: justify; widows: 2; text-transform: none; text-indent: 0px; margin: 0px; font: 10pt 'times new roman', times, serif; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; word-spacing: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b> </b></p>
<p style="text-align: justify; widows: 2; text-transform: none; text-indent: 0.25in; margin: 0px; font: 10pt 'times new roman', times, serif; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; word-spacing: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying disclosures. Those estimates are inherently subject to change, and actual results may ultimately differ from those estimates.</p>
<p style="text-align: justify; widows: 2; text-transform: none; text-indent: 0.25in; margin: 0px; font: 10pt 'times new roman', times, serif; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; word-spacing: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="text-align: justify; widows: 2; text-transform: none; text-indent: 0px; margin: 0px; font: 10pt 'times new roman', times, serif; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; word-spacing: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b>Variable Interest Entities</b></p>
<p style="text-align: justify; widows: 2; text-transform: none; text-indent: 0px; margin: 0px; font: 10pt 'times new roman', times, serif; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; word-spacing: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b> </b></p>
<p style="text-align: justify; widows: 2; text-transform: none; text-indent: 0.25in; margin: 0px; font: 10pt 'times new roman', times, serif; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; word-spacing: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Entities that do not have sufficient equity at risk to allow the entity to finance its activities without additional financial support or in which the equity investors, as a group, do not have the characteristic of a controlling financial interest are referred to as variable interest entities (“VIE”). A VIE is consolidated by the variable interest holder that is determined to have the controlling financial interest (primary beneficiary) as a result of having both the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company determines whether it is the primary beneficiary of an entity subject to consolidation based on a qualitative assessment of the VIE’s capital structure, contractual terms, nature of the VIE’s operations and purpose, and the Company’s relative exposure to the related risks of the VIE on the date it becomes initially involved in the VIE. The Company reassesses its VIE determination with respect to an entity on an ongoing basis.</p>
<p style="text-align: justify; widows: 2; text-transform: none; text-indent: 0.25in; margin: 0px; font: 10pt 'times new roman', times, serif; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; word-spacing: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="text-align: justify; widows: 2; text-transform: none; text-indent: 0.25in; margin: 0px; font: 10pt 'times new roman', times, serif; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; word-spacing: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The Company holds interests in VIEs through certain equity method investments included in “other invested assets” in the accompanying condensed consolidated balance sheets. The Company has determined that it should not consolidate any of the VIEs as it is not the primary beneficiary in any of the relationships. Although the investments resulted in the Company holding variable interests in the entities, they did not empower the Company to direct the activities that most significantly impact the economic performance of the entities. The Company’s investments related to these VIEs totaled $31.1 million and $27.1 million as of March 31, 2017 and December 31, 2016, respectively, representing the Company’s maximum exposure to loss.</p>
<p style="text-align: justify; widows: 2; text-transform: none; text-indent: 0.25in; margin: 0px; font: 10pt 'times new roman', times, serif; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; word-spacing: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="text-align: justify; widows: 2; text-transform: none; text-indent: 0px; margin: 0px; font: 10pt 'times new roman', times, serif; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; word-spacing: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b>Adopted Accounting Standards</b></p>
<p style="text-align: justify; widows: 2; text-transform: none; text-indent: 0.25in; margin: 0px; font: 10pt 'times new roman', times, serif; white-space: normal; orphans: 2; letter-spacing: normal; color: #231f20; word-spacing: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="text-align: justify; widows: 2; text-transform: none; text-indent: 0.25in; margin: 0px; font: 10pt 'times new roman', times, serif; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; word-spacing: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="color: #231f20;">Effective January 1, 2017, the Company adopted Accounting Standards Update (“ASU”) 2016-09, <em>Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting </em>using the prospective method. The guidance requires that all tax effects related to share-based payments be made through the income statement at the time of settlement as opposed to excess tax benefits being recognized in additional paid-in capital under the previous guidance</font>. The <font style="color: #231f20;">ASU also removes the requirement to delay recognition of a tax benefit until it reduces current taxes payable. Additionally, all tax related cash flows resulting from share-based payments are now reported as operating activities on the statement of cash flows, a change from the previous requirement to present tax benefits as an inflow from financing activities and an outflow from operating activities. For the three months ended March 31, 2016, net cash provided by operating activities increased by $292,000 and net cash used in financing activities was increased by $292,000 for the adoption of ASU 2016-09. The Company has elected to recognize forfeitures as they occur in accordance with ASU 2016-09. The adoption of ASU 2016-09 did not materially impact the Company’s consolidated income statements.</font></p>
<p style="text-align: justify; widows: 2; text-transform: none; text-indent: 0px; margin: 0px; font: 10pt 'times new roman', times, serif; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; word-spacing: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b> </b></p>
<p style="text-align: justify; widows: 2; text-transform: none; text-indent: 0px; margin: 0px; font: 10pt 'times new roman', times, serif; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; word-spacing: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b>Prospective Accounting Standards</b></p>
<p style="text-align: justify; widows: 2; text-transform: none; text-indent: 0px; margin: 0px; font: 10pt 'times new roman', times, serif; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; word-spacing: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b> </b></p>
<p style="text-align: justify; widows: 2; text-transform: none; text-indent: 0.25in; margin: 0px; font: 10pt 'times new roman', times, serif; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; word-spacing: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="color: #231f20;">In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, <i>Revenue from Contracts with Customers (Topic 606)</i>. </font>The guidance applies to all companies that either enter into contracts with customers to transfer goods or services or enter into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards, such as insurance contracts. Under this guidance, a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under the current guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU 2014-09 becomes effective for the Company during the first quarter of 2018 and must be applied retrospectively. The Company is currently evaluating ASU 2014-09 to determine the potential impact that adopting this standard will have on reported fee income. The Company does not believe adoption will have a material impact on its consolidated financial statements.</p>
<p style="text-align: justify; widows: 2; text-transform: none; text-indent: 0px; margin: 0px; font: 10pt 'times new roman', times, serif; white-space: normal; orphans: 2; letter-spacing: normal; color: #231f20; word-spacing: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="text-align: justify; widows: 2; text-transform: none; text-indent: 0.25in; margin: 0px; font: 10pt 'times new roman', times, serif; white-space: normal; orphans: 2; letter-spacing: normal; color: #231f20; word-spacing: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">In January 2016, the FASB issued ASU 2016-01, <i>Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities</i>. Among other things, this ASU will require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. This ASU is effective for interim and annual reporting periods beginning after December 15, 2017. Upon adoption, a cumulative-effect adjustment to the balance sheet will be made as of the beginning of the fiscal year of adoption. The Company has not yet completed the analysis of how adopting this ASU will affect our consolidated financial statements.</p>
<p style="text-align: justify; widows: 2; text-transform: none; text-indent: 0.25in; margin: 0px; font: 10pt 'times new roman', times, serif; white-space: normal; orphans: 2; letter-spacing: normal; color: #231f20; word-spacing: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="text-align: justify; widows: 2; text-transform: none; text-indent: 0.25in; margin: 0px; font: 10pt 'times new roman', times, serif; white-space: normal; orphans: 2; letter-spacing: normal; color: #231f20; word-spacing: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">In February 2016, the FASB issued ASU 2016-02, <i>Leases (Topic 842)</i>. Under current guidance for lessees, leases are only included on the balance sheet if certain criteria, classifying the agreement as a capital lease, are met. This update will require the recognition of a right-of-use asset and a corresponding lease liability, discounted to the present value, for all leases that extend beyond 12 months. This ASU is effective for annual and interim reporting periods beginning after December 15, 2018. Early adoption is permitted. Upon adoption, leases will be recognized and measured at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently evaluating ASU 2016-02 to determine the potential impact that adopting this standard will have on its consolidated financial statements.</p>
<p style="text-align: justify; widows: 2; text-transform: none; text-indent: 0.25in; margin: 0px; font: 10pt 'times new roman', times, serif; white-space: normal; orphans: 2; letter-spacing: normal; color: #231f20; word-spacing: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="text-align: justify; widows: 2; text-transform: none; text-indent: 0.25in; margin: 0px; font: 10pt 'times new roman', times, serif; white-space: normal; orphans: 2; letter-spacing: normal; color: #231f20; word-spacing: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">In June 2016, the FASB issued ASU 2016-13, <i>Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. </i>Current GAAP delays the recognition of credit losses until it is probable a loss has been incurred. The update will require financial assets measured at amortized cost, such as bank loan participations held for investment, to be presented at the net amount expected to be collected by means of an allowance for credit losses that runs through net income. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses, with the amount of the allowance limited to the amount by which fair value is below amortized cost. This ASU is effective for annual and interim reporting periods beginning after December 15, 2019. Upon adoption, this ASU will be applied using the modified-retrospective approach, by which a cumulative-effect adjustment will be made to retained earnings as of the beginning of the first reporting period presented. The Company has not yet completed the analysis of how adopting this ASU will affect Company’s financial statements.</p>
<p style="widows: 2; text-transform: none; text-indent: 0px; margin: 0px; font: 10pt 'times new roman', times, serif; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; word-spacing: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b> </b></p>
<p style="text-align: justify; widows: 2; text-transform: none; text-indent: 0.25in; margin: 0px; font: 10pt 'times new roman', times, serif; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; word-spacing: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">In August 2016, the FASB issued ASU 2016-15, <i>Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments</i> to address the diversity in practice of how certain cash receipts and payments are classified in the statement of cash flows. The update addresses specific issues, including distributions received from equity method investees and the classification of cash receipts and payments that have aspects of more than one class of cash flows. This ASU is effective for annual and interim reporting periods beginning after December 15, 2017. Upon adoption, the update will be applied using the retrospective transition method. The Company has not yet completed the analysis of how adopting this ASU will affect its financial statements, but does not expect a material impact on our statement of cash flows.</p>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0pt; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0">
<tr style="text-align: justify; vertical-align: top;">
<td style="width: 0.5in; text-align: left;"><b>2.</b></td>
<td style="text-align: justify;"><b>Investments</b></td>
</tr>
</table>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b> </b></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The Company’s available-for-sale investments are summarized as follows:</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Cost or <br />Amortized <br />Cost</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Gross <br /> Unrealized <br />Gains</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">Gross <br /> Unrealized <br />Losses</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Fair <br /> Value</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-style: italic; font-weight: bold;" colspan="14" nowrap="nowrap"><font style="font-size: 8pt;">(in thousands)</font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="font-weight: bold;">March 31, 2017</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left;">Fixed maturity securities:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="width: 741px; text-align: left; padding-left: 9pt;">State and municipal</td>
<td style="width: 16px;"> </td>
<td style="width: 16px; text-align: left;">$</td>
<td style="width: 157px; text-align: right;">107,019</td>
<td style="width: 16px; text-align: left;"> </td>
<td style="width: 16px;"> </td>
<td style="width: 16px; text-align: left;">$</td>
<td style="width: 157px; text-align: right;">5,001</td>
<td style="width: 16px; text-align: left;"> </td>
<td style="width: 16px;"> </td>
<td style="width: 16px; text-align: left;">$</td>
<td style="width: 156px; text-align: right;">(811</td>
<td style="width: 15px; text-align: left;">)</td>
<td style="width: 15px;"> </td>
<td style="width: 15px; text-align: left;">$</td>
<td style="width: 156px; text-align: right;">111,209</td>
<td style="width: 15px; text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-left: 9pt;">Residential mortgage-backed</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">145,415</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">1,037</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(2,990</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">143,462</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="padding-left: 9pt;">Corporate</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">379,076</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">4,775</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(3,750</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">380,101</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-left: 9pt;">Commercial mortgage and asset-backed</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">172,092</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">819</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(714</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">172,197</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9pt; padding-left: 0.25in;">Obligations of U.S. government corporations and agencies</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">62,493</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">191</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(130</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">62,554</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9pt; padding-left: 0.25in;">U.S. Treasury securities and obligations guaranteed by the U.S. government</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">70,242</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">105</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(179</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">70,168</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 9pt;">Redeemable preferred stock</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">2,025</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">—</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(29</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">1,996</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left;">Total fixed maturity securities</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">938,362</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">11,928</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(8,603</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">941,687</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-bottom: 1pt;">Equity securities</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">74,531</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">6,240</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(1,304</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">79,467</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-bottom: 2.5pt;">Total investments available-for-sale</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">1,012,893</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">18,168</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">(9,907</td>
<td style="text-align: left; padding-bottom: 2.5pt;">)</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">1,021,154</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="font-weight: bold;">December 31, 2016</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left;">Fixed maturity securities:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-left: 9pt;">State and municipal</td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;">101,793</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;">5,032</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;">(984</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;">105,841</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-left: 9pt;">Residential mortgage-backed</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">152,703</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">1,070</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(2,975</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">150,798</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="padding-left: 9pt;">Corporate</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">379,727</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">4,382</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(5,661</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">378,448</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-left: 9pt;">Commercial mortgage and asset-backed</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">167,967</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">906</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(826</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">168,047</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9pt; padding-left: 0.25in;">Obligations of U.S. government corporations and agencies</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">64,823</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">276</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(85</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">65,014</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9pt; padding-left: 0.25in;">U.S. Treasury securities and obligations guaranteed by the U.S. government</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">71,174</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">131</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(185</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">71,120</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 9pt;">Redeemable preferred stock</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">2,025</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">—</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(216</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">1,809</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left;">Total fixed maturity securities</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">940,212</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">11,797</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(10,932</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">941,077</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-bottom: 1pt;">Equity securities</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">74,553</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">4,503</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(2,655</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">76,401</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-bottom: 2.5pt;">Total investments available-for-sale</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">1,014,765</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">16,300</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">(13,587</td>
<td style="text-align: left; padding-bottom: 2.5pt;">)</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">1,017,478</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
</table>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The amortized cost and fair value of available-for-sale investments in fixed maturity securities at March 31, 2017 are summarized, by contractual maturity, as follows:</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Cost or <br />Amortized <br />Cost</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Fair <br /> Value</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-style: italic; font-weight: bold;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">(in thousands)</font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td> </td>
<td> </td>
<td style="text-align: justify;" colspan="2"> </td>
<td> </td>
<td> </td>
<td style="text-align: justify;" colspan="2"> </td>
<td> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="width: 1147.55px; text-align: left; text-indent: -9.35pt; padding-left: 9.35pt;">One year or less</td>
<td style="width: 16px;"> </td>
<td style="width: 16px; text-align: left;">$</td>
<td style="width: 157px; text-align: right;">98,952</td>
<td style="width: 16px; text-align: left;"> </td>
<td style="width: 16px;"> </td>
<td style="width: 15px; text-align: left;">$</td>
<td style="width: 156px; text-align: right;">99,404</td>
<td style="width: 15px; text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 9.35pt;">After one year through five years</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">232,153</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">233,770</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 9.35pt;">After five years through ten years</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">172,470</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">171,838</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 9.35pt;">After ten years</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">115,255</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">119,020</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 9.35pt;">Residential mortgage-backed</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">145,415</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">143,462</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 9.35pt;">Commercial mortgage and asset-backed</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">172,092</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">172,197</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9.35pt; padding-bottom: 1pt; padding-left: 9.35pt;">Redeemable preferred stock</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">2,025</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">1,996</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-indent: -9.35pt; padding-bottom: 2.5pt; padding-left: 9.35pt;">Total</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">938,362</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">941,687</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
</table>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Actual maturities may differ for some securities because borrowers have the right to call or prepay obligations with or without penalties.</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The following table shows the Company’s gross unrealized losses and fair value for available-for-sale securities aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position:</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">Less Than 12 Months</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">12 Months or More</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">Total</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Fair <br /> Value</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Gross <br /> Unrealized <br />Losses</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Fair <br /> Value</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Gross <br /> Unrealized <br />Losses</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Fair <br /> Value</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Gross <br /> Unrealized <br />Losses</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-style: italic; font-weight: bold;" colspan="22" nowrap="nowrap"><font style="font-size: 8pt;">(in thousands)</font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: -0.1in; padding-left: 0.1in; font-weight: bold;">March 31, 2017</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt;">Fixed maturity securities:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="width: 511.4px; text-align: left; text-indent: -0.1in; padding-left: 16.2pt;">State and municipal</td>
<td style="width: 16px;"> </td>
<td style="width: 16px; text-align: left;">$</td>
<td style="width: 126px; text-align: right;">28,964</td>
<td style="width: 16px; text-align: left;"> </td>
<td style="width: 16px;"> </td>
<td style="width: 16px; text-align: left;">$</td>
<td style="width: 126px; text-align: right;">(811</td>
<td style="width: 16px; text-align: left;">)</td>
<td style="width: 16px;"> </td>
<td style="width: 16px; text-align: left;">$</td>
<td style="width: 126px; text-align: right;">—</td>
<td style="width: 16px; text-align: left;"> </td>
<td style="width: 16px;"> </td>
<td style="width: 16px; text-align: left;">$</td>
<td style="width: 125px; text-align: right;">—</td>
<td style="width: 15px; text-align: left;"> </td>
<td style="width: 15px;"> </td>
<td style="width: 15px; text-align: left;">$</td>
<td style="width: 125px; text-align: right;">28,964</td>
<td style="width: 15px; text-align: left;"> </td>
<td style="width: 15px;"> </td>
<td style="width: 15px; text-align: left;">$</td>
<td style="width: 125px; text-align: right;">(811</td>
<td style="width: 15px; text-align: left;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -0.1in; padding-left: 16.2pt;">Residential mortgage-backed</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">87,741</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(1,545</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">31,113</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(1,445</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">118,854</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(2,990</td>
<td style="text-align: left;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: -0.1in; padding-left: 16.2pt;">Corporate</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">156,461</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(3,519</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">3,402</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(231</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">159,863</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(3,750</td>
<td style="text-align: left;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9pt; padding-left: 0.25in;">Commercial mortgage and asset-backed</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">52,815</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(713</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">4,749</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(1</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">57,564</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(714</td>
<td style="text-align: left;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9pt; padding-left: 0.25in;">Obligations of U.S. government corporations and agencies</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">52,142</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(130</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">—</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">—</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">52,142</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(130</td>
<td style="text-align: left;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9pt; padding-bottom: 1pt; padding-left: 0.25in;">U.S. Treasury securities and obligations guaranteed by the U.S. government</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="text-align: right; padding-bottom: 1pt;">51,941</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="text-align: right; padding-bottom: 1pt;">(179</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="text-align: right; padding-bottom: 1pt;">—</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="text-align: right; padding-bottom: 1pt;">—</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="text-align: right; padding-bottom: 1pt;">51,941</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="text-align: right; padding-bottom: 1pt;">(179</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 9pt;">Redeemable preferred stock</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">1,996</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(29</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">—</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">—</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">1,996</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(29</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt;">Total fixed maturity securities</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">432,060</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(6,926</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">39,264</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(1,677</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">471,324</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(8,603</td>
<td style="text-align: left;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9pt; padding-bottom: 1pt; padding-left: 9pt;">Equity securities</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">9,667</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(161</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">6,999</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(1,143</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">16,666</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(1,304</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9pt; padding-bottom: 2.5pt; padding-left: 9pt;">Total investments available-for-sale</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">441,727</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">(7,087</td>
<td style="text-align: left; padding-bottom: 2.5pt;">)</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">46,263</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">(2,820</td>
<td style="text-align: left; padding-bottom: 2.5pt;">)</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">487,990</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">(9,907</td>
<td style="text-align: left; padding-bottom: 2.5pt;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: -0.1in; padding-left: 0.1in; font-weight: bold;">December 31, 2016</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt;">Fixed maturity securities:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-left: 9pt;">State and municipal</td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;">28,398</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;">(984</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;">—</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;">—</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;">28,398</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;">(984</td>
<td style="text-align: left;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-left: 9pt;">Residential mortgage-backed</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">93,242</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(1,548</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">32,330</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(1,427</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">125,572</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(2,975</td>
<td style="text-align: left;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="padding-left: 9pt;">Corporate</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">199,841</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(4,212</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">8,477</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(1,449</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">208,318</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(5,661</td>
<td style="text-align: left;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9pt; padding-left: 0.25in;">Commercial mortgage and asset-backed</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">47,990</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(799</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">7,195</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(27</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">55,185</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(826</td>
<td style="text-align: left;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9pt; padding-left: 0.25in;">Obligations of U.S. government corporations and agencies</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">50,573</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(85</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">—</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">—</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">50,573</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(85</td>
<td style="text-align: left;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9pt; padding-left: 0.25in;">U.S. Treasury securities and obligations guaranteed by the U.S. government</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">48,989</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(185</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">—</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">—</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">48,989</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(185</td>
<td style="text-align: left;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 9pt;">Redeemable preferred stock</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">1,809</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(216</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">—</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">—</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">1,809</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(216</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left;">Total fixed maturity securities</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">470,842</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(8,029</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">48,002</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(2,903</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">518,844</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(10,932</td>
<td style="text-align: left;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-bottom: 1pt;">Equity securities</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">21,345</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(1,071</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">6,558</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(1,584</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">27,903</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(2,655</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-bottom: 2.5pt;">Total investments available-for-sale</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">492,187</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">(9,100</td>
<td style="text-align: left; padding-bottom: 2.5pt;">)</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">54,560</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">(4,487</td>
<td style="text-align: left; padding-bottom: 2.5pt;">)</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">546,747</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">(13,587</td>
<td style="text-align: left; padding-bottom: 2.5pt;">)</td>
</tr>
</table>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The Company held securities of 156 issuers that were in an unrealized loss position at March 31, 2017 with a total fair value of $488.0 million and gross unrealized losses of $9.9 million. None of the fixed maturity securities with unrealized losses has ever missed, or been delinquent on, a scheduled principal or interest payment.</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">At March 31, 2017, 99.4% of the Company’s fixed maturity security portfolio was rated “BBB-” or better (“investment grade”) by Standard & Poor’s or received an equivalent rating from another nationally recognized rating agency. Fixed maturity securities with ratings below investment grade by Standard & Poor’s or another nationally recognized rating agency at March 31, 2017 had an aggregate fair value of $5.6 million and an aggregate net unrealized gain of $254,000.</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #231f20; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Management concluded that none of the fixed maturity securities with an unrealized loss at March 31, 2017 or December 31, 2016 experienced an other-than-temporary impairment. Management does not intend to sell available-for-sale securities in an unrealized loss position, and it is not “more likely than not” that the Company will be required to sell these securities before a recovery in their value to their amortized cost basis occurs. Management also concluded that none of the equity securities with an unrealized loss at March 31, 2017 or December 31, 2016 experienced an other-than-temporary impairment. Management has evaluated the near-term prospects of these equity securities in relation to the severity and duration of the impairment, and management has the ability and intent to hold these securities until a recovery of their fair value.</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #231f20; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #231f20; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">At March 31, 2017, the Company held a participation in a loan issued by a company that produces and supplies power to Puerto Rico through a power purchase agreement with Puerto Rico Electric Power Authority (“PREPA”), a public corporation and governmental agency of the Commonwealth of Puerto Rico. PREPA’s credit strength and ability to make timely payments has been impacted by the economic conditions in Puerto Rico, thus raising doubt about the company’s ability to meet the debt obligations held by the Company. Management concluded that the loan was impaired. At March 31, 2017, the loan had a carrying value of $1.4 million, unpaid principal of $1.6 million, and an allowance for credit losses of $146,000. At December 31, 2016, the loan had a carrying value of $1.7 million, unpaid principal of $2.0 million, and an allowance for credit losses of $177,000.</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #231f20; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #231f20; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The Company’s bank loan portfolio includes loans to oil and gas companies in the energy sector. The market values of these loans have been impacted by declining energy prices. At March 31, 2017, the Company’s oil and gas exposure in the bank loan portfolio was in four loans with a carrying value of $9.9 million and an unrealized loss of $1.4 million. All of the loans were current at March 31, 2017. Management concluded that two of these loans were impaired as of March 31, 2017. At March 31, 2017, the two impaired loans had a carrying value of $2.0 million, unpaid principal of $2.5 million and an allowance for credit losses of $411,000. At December 31, 2016, one loan was impaired with a carrying value of $1.6 million, unpaid principal of $2.2 million and an allowance for credit losses of $545,000.</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #231f20; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #231f20; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Management also concluded that one non-energy sector loan was impaired at March 31, 2017. The loan had a carrying value of $630,000, unpaid principal of $712,000, and an allowance for credit losses of $82,000. At December 31, 2016, three non-energy sector loans were impaired with a total carrying value of $3.2 million, unpaid principal of $3.5 million, and an allowance for credit losses of $221,000.</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #231f20; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #231f20; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The aggregate allowance for credit losses was $639,000 at March 31, 2017 on impaired loans from four issuers with a total carrying value of $4.0 million and unpaid principal of $4.8 million. At December 31, 2016, the aggregate allowance for credit losses was $943,000 on impaired loans from five issuers with a total carrying value of $6.5 million and unpaid principal of $7.6 million. The aggregate allowance for credit losses on impaired loans was $4.6 million at March 31, 2016 and $4.3 million at December 31, 2015.</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #231f20; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #231f20; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Bank loan participations generally have a credit rating that is below investment grade (i.e. below “BBB-” for Standard & Poor’s) at the date of purchase. These bank loans are primarily senior, secured floating-rate debt rated “BB”, “B”, or “CCC” by Standard & Poor’s or an equivalent rating from another nationally recognized rating agency. These bank loans include assignments of, and participations in, performing and non-performing senior corporate debt generally acquired through primary bank syndications and in secondary markets. Bank loans consist of, but are not limited to, term loans, the funded and unfunded portions of revolving credit loans, and other similar loans and investments. Management believed that it was probable at the time that these loans were acquired that the Company would be able to collect all contractually required payments receivable.</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #231f20; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #231f20; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Generally, the accrual of interest on a bank loan participation is discontinued when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about further collectability of principal or interest. A bank loan participation may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. Generally, bank loan participations are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time, and the ultimate collectability of the total contractual principal and interest is no longer in doubt. Interest received on nonaccrual loans generally is reported as investment income. There were no bank loans on nonaccrual status at March 31, 2017 or December 31, 2016.</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #231f20; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="color: #231f20;">The allowance for credit losses is maintained at a level believed adequate by management to absorb estimated probable credit losses. Management’s periodic evaluation of the adequacy of the allowance is based on consultations and a</font>dvice <font style="color: #231f20;">of the Company’s independent investment manager, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, current economic conditions, and other relevant factors. The Company generally records an allowance equal to the difference between the fair value and the amortized cost of bank loans that it has determined to be impaired as a practical expedient for an estimate of probable future cash flows to be collected on those bank loans. Bank loans are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.</font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #231f20; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #231f20; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The average recorded investment in impaired bank loans was $5.3 million and $5.9 million during the three months ended March 31, 2017 and 2016, respectively. Investment income of $84,000 and $71,000, respectively, was recognized during the time within those periods that the loans were impaired. The Company recorded net realized investment gains of $177,000 and net realized investment losses of $304,000 in the three months ended March 31, 2017 and 2016, respectively, for changes in the fair value of impaired bank loans.</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #231f20; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #231f20; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Changes in unrealized gains or losses on securities held for trading are recorded as trading gains or losses within net investment income. Net investment income for the three months ended March 31, 2017 includes $3,000 of net trading gains, all of which relates to securities still held at March 31, 2017.</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #231f20; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The Company’s realized gains and losses are summarized as follows:</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 1316px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-left: 0.5in; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">Three Months Ended March 31,</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">2017</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">2016</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-style: italic; font-weight: bold;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">(in thousands)</font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 9.35pt;">Fixed maturity securities:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="width: 949.07px; text-align: left; text-indent: -9.35pt; padding-left: 18.7pt;">Gross realized gains</td>
<td style="width: 14px;"> </td>
<td style="width: 14px; text-align: left;">$</td>
<td style="width: 131px; text-align: right;">338</td>
<td style="width: 13px; text-align: left;"> </td>
<td style="width: 13px;"> </td>
<td style="width: 13px; text-align: left;">$</td>
<td style="width: 131px; text-align: right;">842</td>
<td style="width: 13px; text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9.35pt; padding-bottom: 1pt; padding-left: 18.7pt;">Gross realized losses</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(296</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(1</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-indent: -9.35pt; padding-left: 9.35pt;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">42</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">841</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: -9.35pt; padding-left: 9.35pt;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 9.35pt;">Bank loan participations:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 18.7pt;">Gross realized gains</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">1,136</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">60</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9.35pt; padding-bottom: 1pt; padding-left: 18.7pt;">Gross realized losses</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(539</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(352</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: -9.35pt; padding-left: 9.35pt;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">597</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(292</td>
<td style="text-align: left;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-indent: -9.35pt; padding-left: 9.35pt;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 9.35pt;">Equity securities:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 18.7pt;">Gross realized gains</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">409</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9.35pt; padding-bottom: 1pt; padding-left: 18.7pt;">Gross realized losses</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">–</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">–</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-indent: -9.35pt; padding-left: 9.35pt;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">409</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: -9.35pt; padding-left: 9.35pt;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 9.35pt;">Short-term investments and other:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 18.7pt;">Gross realized gains</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9.35pt; padding-bottom: 1pt; padding-left: 18.7pt;">Gross realized losses</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(1</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(2</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: -9.35pt; padding-bottom: 1pt; padding-left: 9.35pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(1</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(2</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-indent: -9.35pt; padding-bottom: 2.5pt; padding-left: 9.35pt;">Total</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">1,047</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">547</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
</table>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b> </b></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Realized investment gains or losses are determined on a specific identification basis.</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The Company invests selectively in private debt and equity opportunities. These investments, which together comprise the Company’s other invested assets, are primarily focused in renewable energy, limited partnerships, and bank holding companies.</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 1504px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-left: 0.25in; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td colspan="2" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td colspan="2" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">Investment Income</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">Carrying Value</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; padding-bottom: 1pt; font-weight: bold;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">Three Months Ended</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">March 31,</font></td>
<td style="font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">December 31,</font></td>
<td style="font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">March 31,</font></td>
<td style="font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">2017</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">2016</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">2017</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">2016</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-style: italic; font-weight: bold;" colspan="14" nowrap="nowrap"><font style="font-size: 8pt;">(in thousands)</font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="width: 722px; text-align: left;">Renewable energy LLCs <i>(a)</i></td>
<td style="width: 16px;"> </td>
<td style="width: 16px; text-align: left;">$</td>
<td style="width: 150px; text-align: right;">31,074</td>
<td style="width: 15px; text-align: left;"> </td>
<td style="width: 15px;"> </td>
<td style="width: 15px; text-align: left;">$</td>
<td style="width: 150px; text-align: right;">27,067</td>
<td style="width: 15px; text-align: left;"> </td>
<td style="width: 15px;"> </td>
<td style="width: 15px; text-align: left;">$</td>
<td style="width: 150px; text-align: right;">5,594</td>
<td style="width: 15px; text-align: left;"> </td>
<td style="width: 15px;"> </td>
<td style="width: 15px; text-align: left;">$</td>
<td style="width: 150px; text-align: right;">681</td>
<td style="width: 15px; text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left;">Renewable energy bridge financing notes (<i>b)</i></td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">244</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left;">Limited partnerships <i>(c)</i></td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">24,071</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">23,852</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">382</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">156</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-bottom: 1pt;">Bank holding companies <i>(d)</i></td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">4,500</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">4,500</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">86</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">86</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-bottom: 2.5pt;">Total other invested assets</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">59,645</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">55,419</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">6,062</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">1,167</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
</table>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.25in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><i> </i></p>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0">
<tr style="vertical-align: top;">
<td style="width: 0px;"></td>
<td style="width: 0.25in;"><i>(a)</i></td>
<td style="text-align: justify;">The Company’s Corporate and Other segment owns equity interests ranging from 2.6% to 32.8% in various LLCs whose principal objective is capital appreciation and income generation from owning and operating renewable energy production facilities (wind and solar). The LLCs are managed by an affiliate of the Company’s largest shareholder and the Company’s Chairman and Chief Executive Officer has invested in certain of these LLCs. The equity method is used to account for the Company’s LLC investments. Income for the LLCs primarily reflects adjustments to the carrying values of investments in renewable energy projects to their determined fair values. The fair value adjustments are included in revenues for the LLCs. Expenses for the LLCs are not significant and are comprised of administrative and interest expenses. The Company received cash distributions from these investments totaling $1.6 million and $1.5 million for the three months ended March 31, 2017 and 2016, respectively.</td>
</tr>
</table>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.25in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0">
<tr style="vertical-align: top;">
<td style="width: 0px;"></td>
<td style="width: 0.25in;"><i>(b)</i></td>
<td style="text-align: justify;"><font style="color: #231f20;">The Company has held investments in bridge financing notes for renewable energy projects. The notes, all with affiliates of the Company’s largest shareholder, generally matured in less than one year and carried primarily variable rates of interest ranging from 7.0% to 15.0%. O</font>riginal discounts and commitment fees received were recognized over the terms of the notes under the effective interest method.</td>
</tr>
</table>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.25in; text-align: justify; color: #231f20; text-transform: none; text-indent: -0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0">
<tr style="vertical-align: top;">
<td style="width: 0px;"></td>
<td style="width: 0.25in;"><i>(c)</i></td>
<td style="text-align: justify;"><font style="color: #231f20;">The Company owns investments in limited partnerships that invest in concentrated portfolios of publicly-traded small cap equities, loans of middle market private equity sponsored companies, and equity tranches of collateralized loan obligations (CLOs). Income f</font>rom the partnerships is recognized under the equity method of accounting. The Company’s Corporate and Other segment held an investment in a limited partnership with a carrying value of $2.7 million at March 31, 2017. The Company recognized investment income of $68,000 and $92,000 on the investment for the three months ended March 31, 2017 and 2016, respectively. The Company’s Excess and Surplus Lines segment holds investments in limited partnerships of $21.4 million at March 31, 2017. Investment income of $314,000 and $64,000 was recognized on the investments for the three months ended March 31, 2017 and 2016, respectively. At March 31, 2017, the Company’s Excess and Surplus Lines segment has an outstanding commitment to invest another $1.0 million in a limited partnership that invests in loans of middle market private equity sponsored companies.</td>
</tr>
</table>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0">
<tr style="vertical-align: top;">
<td style="width: 0px;"></td>
<td style="width: 0.25in;"><font style="font-size: 10pt;"><i>(d)</i></font></td>
<td style="text-align: justify;"><font style="color: #231f20;">The Company holds $4.5 million of subordinated notes issued by a bank holding company. Interest on the notes, which mature on August 12, 2023, is fixed at 7.6% per annum. Interest income on the notes was $86,000 in both three months ended March 31, 2017 and 2016. The Company’s Chairman and Chief Executive Officer was previously the Lead Independent Director of the bank holding company and an investor in the bank holding company. Additionally, one of the Company’s directors was an investor in the bank holding company and is currently a lender to the bank holding company.</font></td>
</tr>
</table>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #231f20; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #231f20; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">At March 31, 2017, the Company held an investment in a collateralized loan obligation (CLO) where one of the underlying loans was issued by the bank holding company. The investment, with a carrying value of $5.0 million at March 31, 2017, is classified as an available-for-sale fixed maturity.</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #231f20; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #231f20; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The Company has held common shares of the bank holding company. Realized investments gains of $409,000 were recognized in the three months ended March 31, 2017 related to shares of the bank holding company. Income of $199,000 was recognized on the shares for the three months ended March 31, 2016.</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #231f20; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #231f20; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The Company holds a $1.0 million certificate of deposit issued by the bank holding company. The certificate of deposit, which matures on December 19, 2017, is carried as a short-term investment. Interest income of $1,000 was recognized on this investment for both the three months ended March 31, 2017 and 2016.</p>
<div>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0pt; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0">
<tr style="text-align: justify; vertical-align: top;">
<td style="width: 0.5in; text-align: left;"><b>3.</b></td>
<td style="text-align: justify;"><b>Goodwill and Intangible Assets</b></td>
</tr>
</table>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b> </b></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">On December 11, 2007, the Company completed an acquisition of James River Group by acquiring 100% of the outstanding shares of James River Group common stock, referred to herein as the “Merger”. The transaction was accounted for under the purchase method of accounting, and goodwill and intangible assets were recognized by the Company as a result of the transaction. Goodwill resulting from the Merger was $181.8 million at March 31, 2017 and December 31, 2016.</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The gross carrying amounts and accumulated amortization for each major specifically identifiable intangible asset class were as follows:</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">March 31, 2017</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">December 31, 2016</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" nowrap="nowrap">
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-size: 8pt;"><b>Life</b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-size: 8pt;"><b>(Years)</b></font></p>
</td>
<td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap">
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-size: 8pt;"><b>Gross</b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-size: 8pt;"><b>Carrying</b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-size: 8pt;"><b>Amount</b></font></p>
</td>
<td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap">
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-size: 8pt;"><b>Accumulated</b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-size: 8pt;"><b>Amortization</b></font></p>
</td>
<td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td
style="text-align: center; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap">
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-size: 8pt;"><b>Gross</b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-size: 8pt;"><b>Carrying</b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-size: 8pt;"><b>Amount</b></font></p>
</td>
<td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap">
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-size: 8pt;"><b>Accumulated</b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-size: 8pt;"><b>Amortization</b></font></p>
</td>
<td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-style: italic; font-weight: bold;" colspan="14" nowrap="nowrap"><font style="font-size: 8pt;">($ in thousands)</font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; font-weight: bold;">Intangible Assets</td>
<td> </td>
<td style="text-align: center;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="width: 734.44px;">Trademarks</td>
<td style="width: 21.11px;"> </td>
<td style="width: 252.22px; text-align: center;">Indefinite</td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;">$</td>
<td style="width: 210px; text-align: right;">22,200</td>
<td style="width: 21.11px; text-align: left;"> </td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;">$</td>
<td style="width: 210px; text-align: right;">–</td>
<td style="width: 21.11px; text-align: left;"> </td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;">$</td>
<td style="width: 210px; text-align: right;">22,200</td>
<td style="width: 21.11px; text-align: left;"> </td>
<td style="width: 21.11px;"> </td>
<td style="width: 20px; text-align: left;">$</td>
<td style="width: 208.88px; text-align: right;">–</td>
<td style="width: 20px; text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-bottom: 1pt;">Insurance licenses and authorities</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: center; padding-bottom: 1pt;">Indefinite</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">9,164</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">–</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">9,164</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">–</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -0.125in; padding-left: 0.125in;">Identifiable intangibles not subject to amortization</td>
<td> </td>
<td style="text-align: center;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">31,364</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">31,364</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td> </td>
<td> </td>
<td style="text-align: center;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td
style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-bottom: 1pt;">Broker relationships</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: center; padding-bottom: 1pt;">24.6</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">11,611</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">4,193</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">11,611</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">4,044</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -0.125in; padding-bottom: 1pt; padding-left: 0.125in;">Identifiable intangible assets subject to amortization</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: center; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">11,611</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">4,193</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">11,611</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">4,044</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: center; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">42,975</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">4,193</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">42,975</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">4,044</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
</table>
</div>
<div>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0pt; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0">
<tr style="text-align: justify; vertical-align: top;">
<td style="width: 0in;"></td>
<td style="width: 0.5in; text-align: left;"><b>4.</b></td>
<td style="text-align: justify;"><b>Earnings Per Share</b></td>
</tr>
</table>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b> </b></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The following represents a reconciliation of the numerator and denominator of the basic and diluted earnings per share computations contained in the condensed consolidated financial statements:</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 95%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Income <br />(Numerator)</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap">
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-size: 8pt;"><b>Weighted-Average</b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-size: 8pt;"><b>Common Shares</b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-size: 8pt;"><b>(Denominator)</b></font></p>
</td>
<td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap">
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-size: 8pt;"><b>Earnings</b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-size: 8pt;"><b>Per Share</b></font></p>
</td>
<td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-style: italic; font-weight: bold;" colspan="10" nowrap="nowrap"><font style="font-size: 8pt;">(in thousands, except per share data)</font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: -9.35pt; padding-left: 9.35pt; font-weight: bold;">Three months ended March 31, 2017</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="width: 1084.2px; text-indent: -9.35pt; padding-left: 9.35pt;">Basic</td>
<td style="width: 20px;"> </td>
<td style="width: 20px; text-align: left;">$</td>
<td style="width: 240px; text-align: right;">18,450</td>
<td style="width: 20px; text-align: left;"> </td>
<td style="width: 20px;"> </td>
<td style="width: 20px; text-align: left;"> </td>
<td style="width: 240px; text-align: right;">29,289,588</td>
<td style="width: 20px; text-align: left;"> </td>
<td style="width: 20px;"> </td>
<td style="width: 18.88px; text-align: left;">$</td>
<td style="width: 238.88px; text-align: right;">0.63</td>
<td style="width: 18.88px; text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: -9.35pt; padding-bottom: 1pt; padding-left: 9.35pt;">Common share equivalents</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">–</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align:
left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">1,037,835</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(0.02</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-indent: -9.35pt; padding-bottom: 2.5pt; padding-left: 9.35pt;">Diluted</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">18,450</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">30,327,423</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">0.61</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-indent: -9.35pt; padding-left: 9.35pt; font-weight: bold;">Three months ended March 31, 2016</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: -9.35pt; padding-left: 9.35pt;">Basic</td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;">12,837</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">28,953,008</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;">0.44</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-indent: -9.35pt; padding-bottom: 1pt; padding-left: 9.35pt;">Common share equivalents</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">–</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">789,244</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(0.01</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: -9.35pt; padding-bottom: 2.5pt; padding-left: 9.35pt;">Diluted</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">12,837</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">29,742,252</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">0.43</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
</table>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<div style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Common share equivalents relate to stock options and restricted share units (“RSU’s”). For the three months ended March 31, 2017, common share equivalents
of 97,755 shares were excluded from the calculations of diluted earnings per share as their effects were anti-dilutive. For the three months ended March 31, 2016, all common share equivalents were dilutive.</div>
</div>
<div>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0pt; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0">
<tr style="text-align: justify; vertical-align: top;">
<td style="width: 0in;"></td>
<td style="width: 0.5in; text-align: left;"><font style="font-family: times new roman,times;" size="2"><b>5.</b></font></td>
<td style="text-align: justify;"><font style="font-family: times new roman,times;" size="2"><b>Reserve for Losses and Loss Adjustment Expenses</b></font></td>
</tr>
</table>
</div>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">The following table provides a reconciliation of the beginning and ending reserve balances for losses and loss adjustment expenses, net of reinsurance, to the gross amounts reported in the condensed consolidated balance sheets:</font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<div>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;">
<td style="text-align: right;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">Three Months Ended <br />March 31,</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">2017</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">2016</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2"> </font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2"> </font></td>
<td style="text-align: center; font-style: italic; font-weight: bold;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">(in thousands)</font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="width: 1540.87px; text-align: left; text-indent: -9.35pt; padding-left: 9.35pt;"><font style="font-family: times new roman,times;" size="2">Reserve for losses and loss adjustment expenses net of reinsurance recoverables at beginning of period</font></td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td style="width: 210px; text-align: right;"><font style="font-family: times new roman,times;" size="2">761,128</font></td>
<td style="width: 21.11px; text-align: left;"> </td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td style="width: 208.88px; text-align: right;"><font style="font-family: times new roman,times;" size="2">653,534</font></td>
<td style="width: 20px; text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 9.35pt;"><font style="font-family: times new roman,times;" size="2">Add: Incurred losses and loss adjustment expenses net of reinsurance:</font></td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 28.05pt;"><font style="font-family: times new roman,times;" size="2">Current year</font></td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"><font style="font-family: times new roman,times;" size="2">108,783</font></td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"><font style="font-family: times new roman,times;" size="2">78,173</font></td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9.35pt; padding-bottom: 1pt; padding-left: 28.05pt;"><font style="font-family: times new roman,times;" size="2">Prior years</font></td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">(3,414</font></td>
<td style="text-align: left; padding-bottom: 1pt;"><font style="font-family: times new roman,times;" size="2">)</font></td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">(4,667</font></td>
<td style="text-align: left; padding-bottom: 1pt;"><font style="font-family: times new roman,times;" size="2">)</font></td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 9.35pt;"><font style="font-family: times new roman,times;" size="2">Total incurred losses and loss and adjustment expenses</font></td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"><font style="font-family: times new roman,times;" size="2">105,369</font></td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"><font style="font-family: times new roman,times;" size="2">73,506</font></td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 9.35pt;"><font style="font-family: times new roman,times;" size="2">Deduct: Loss and loss adjustment expense payments net of reinsurance:</font></td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 28.05pt;"><font style="font-family: times new roman,times;" size="2">Current year</font></td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"><font style="font-family: times new roman,times;" size="2">3,698</font></td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"><font style="font-family: times new roman,times;" size="2">1,944</font></td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9.35pt; padding-bottom: 1pt; padding-left: 28.05pt;"><font style="font-family: times new roman,times;" size="2">Prior years</font></td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">71,018</font></td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">52,508</font></td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9.35pt; padding-bottom: 1pt; padding-left: 9.35pt;"><font style="font-family: times new roman,times;" size="2">Total loss and loss adjustment expense payments</font></td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">74,716</font></td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">54,452</font></td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 9.35pt;"><font style="font-family: times new roman,times;" size="2">Reserve for losses and loss adjustment expenses net of reinsurance recoverables at end of period</font></td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"><font style="font-family: times new roman,times;" size="2">791,781</font></td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"><font style="font-family: times new roman,times;" size="2">672,588</font></td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9.35pt; padding-bottom: 1pt; padding-left: 9.35pt;"><font style="font-family: times new roman,times;" size="2">Add: Reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period</font></td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">188,782</font></td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">141,739</font></td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9.35pt; padding-bottom: 2.5pt; padding-left: 9.35pt;"><font style="font-family: times new roman,times;" size="2">Reserve for losses and loss adjustment expenses gross of reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period</font></td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">980,563</font></td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">814,327</font></td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
</table>
</div>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">  </p>
<div style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">The Company experienced $3.4 million of favorable reserve development in the three months ended March 31, 2017 on the reserve for losses and loss adjustment expenses held at December 31, 2016. This reserve development included $3.2 million of favorable development in the Excess and Surplus Lines segment, primarily from the 2016 and 2014 accident years which were partially offset by unfavorable development in the 2006 accident year. This favorable development occurred because our actuarial studies at March 31, 2017 for the Excess and Surplus Lines </font><font style="font-family: times new roman,times;" size="2">segment indicated that our loss experience on our casualty business continues to be below our initial expected loss ratios. An additional $42,000 of favorable development occurred in the Specialty Admitted Insurance segment, as favorable development in the 2015, 2014 and prior accident years slightly exceeded adverse development in the 2016 accident year. The Company also experienced $145,000 of favorable development for the Casualty Reinsurance segment.</font></div>
<div style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </div>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">The Company experienced $4.7 million of favorable reserve development in the three months ended March 31, 2016 on the reserve for losses and loss adjustment expenses held at December 31, 2015. This reserve development included $4.4 million of favorable development in the Excess and Surplus Lines segment, primarily from the 2013, 2014, and 2015 accident years which were offset partially by unfavorable development in the 2012 accident year. This favorable development occurred because our actuarial studies at March 31, 2016 for the Excess and Surplus Lines segment indicated that our loss experience on our casualty business continues to be below our initial expected loss ratios. An additional $311,000 of favorable development occurred in the Specialty Admitted Insurance segment, as favorable development in the 2012 and 2013 accident years exceeded adverse development in the 2014 accident year. The Company also experienced $37,000 of adverse development for the Casualty Reinsurance segment.</font></p>
<div>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0pt; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0">
<tr style="text-align: justify; vertical-align: top;">
<td style="width: 0in;"></td>
<td style="width: 0.5in; text-align: left;"><b>6.</b></td>
<td style="text-align: justify;"><b>Other Comprehensive Income</b></td>
</tr>
</table>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b> </b></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The following table summarizes the components of comprehensive income:</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">Three Months Ended March 31,</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td style="text-align: center;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">2017</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">2016</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td style="text-align: center;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-style: italic; font-weight: bold;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">(in thousands)</font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td> </td>
<td> </td>
<td style="text-align: right;" colspan="2"> </td>
<td> </td>
<td> </td>
<td style="text-align: right;" colspan="2"> </td>
<td> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="width: 1553.33px; text-align: left;">Unrealized gains arising during the period, before U.S. income taxes</td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;">$</td>
<td style="width: 210px; text-align: right;">5,998</td>
<td style="width: 21.11px; text-align: left;"> </td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;">$</td>
<td style="width: 208.88px; text-align: right;">17,118</td>
<td style="width: 20px; text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-bottom: 1pt;">U.S. income taxes</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(1,636</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(930</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left;">Unrealized gains arising during the period, net of  U.S. income taxes</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">4,362</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">16,188</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left;">Less reclassification adjustment:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align:
left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-left: 13.05pt;">Net realized investment gains</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">450</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">841</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 13.05pt;">U.S. income tax expenses</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(122</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(273</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -13.4pt; padding-bottom: 1pt; padding-left: 13.4pt;">Reclassification adjustment for investment gains realized in net income</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">328</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">568</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-bottom: 2.5pt;">Other comprehensive income</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">4,034</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">15,620</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
</table>
</div>
<div>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b>7.       Contingent Liabilities</b></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b> </b></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The Company is a party to various lawsuits arising in the ordinary course of its operations. The Company believes that the ultimate resolution of these matters will not materially impact its financial position, cash flows, or results of operations.</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<div style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The Company’s reinsurance subsidiary, JRG Re, entered into two letter of credit facilities with banks as security to third-party reinsureds on reinsurance assumed by JRG Re. JRG Re has established custodial accounts to secure these letters of credit. Under a $100.0 million facility, $87.0 million of letters of credit were issued through March 31, 2017 which were secured by deposits of $103.6 million. Under a $102.5 million facility, $45.2 million of letters of credit were issued through March 31, 2017 which were secured by deposits of $63.1 million. JRG Re has also established trust accounts to secure its obligations to selected reinsureds. The total amount deposited in the trust accounts for the benefit of third-party reinsureds was $249.0 million at March 31, 2017.</div>
</div>
<div>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0pt; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0">
<tr style="text-align: justify; vertical-align: top;">
<td style="width: 0in;"></td>
<td style="width: 0.5in; text-align: left;"><b>8.</b></td>
<td style="text-align: justify;"><b>Segment Information</b></td>
</tr>
</table>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b> </b></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 13.5pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The Company has four reportable segments: the Excess and Surplus Lines segment, the Specialty Admitted Insurance segment, the Casualty Reinsurance segment, and the Corporate and Other segment. Segment profit (loss) is measured by underwriting profit (loss), which is generally defined as net earned premiums less loss and loss adjustment expenses and other operating expenses of the operating segments. Fee income and expenses of the Excess and Surplus Lines segment is included in that segment’s underwriting profit. Fee income of $3.8 million and $2.3 million was included in underwriting profit for the three months ended March 31, 2017 and 2016, respectively. Segment results are reported prior to the effects of intercompany reinsurance agreements among the Company’s insurance subsidiaries.</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The following table summarizes the Company’s segment results:</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Excess and<br />Surplus<br />Lines</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Specialty<br />Admitted<br />Insurance</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Casualty<br />Reinsurance</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Corporate<br />and<br />Other</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Total</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-style: italic; font-weight: bold;" colspan="18" nowrap="nowrap"><font style="font-size: 8pt;">(in thousands)</font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="font-weight: bold;">Three Months Ended March 31, 2017</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td
style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="width: 734.44px; text-align: left;">Gross written premiums</td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;">$</td>
<td style="width: 210px; text-align: right;">108,995</td>
<td style="width: 21.11px; text-align: left;"> </td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;">$</td>
<td style="width: 210px; text-align: right;">72,464</td>
<td style="width: 21.11px; text-align: left;"> </td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;">$</td>
<td style="width: 210px; text-align: right;">42,720</td>
<td style="width: 21.11px; text-align: left;"> </td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;">$</td>
<td style="width: 210px; text-align: right;">–</td>
<td style="width: 21.11px; text-align: left;"> </td>
<td style="width: 21.11px;"> </td>
<td style="width: 20px; text-align: left;">$</td>
<td style="width: 208.88px; text-align: right;">224,179</td>
<td style="width: 20px; text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left;">Net earned premiums</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">93,849</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">16,253</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">44,585</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">154,687</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -12.6pt; padding-left: 12.6pt;">Underwriting profit of insurance segments</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">8,800</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">842</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">1,093</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">10,735</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left;">Net investment income</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">3,183</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">636</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">7,124</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">5,790</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">16,733</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left;">Interest expense</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">2,123</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">2,123</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left;">Segment revenues</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">101,090</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">16,924</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">52,146</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">6,242</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">176,402</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left;">Segment goodwill</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">181,831</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">181,831</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left;">Segment assets</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align:
right;">749,617</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">335,806</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">1,211,896</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">114,006</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">2,411,325</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="font-weight: bold;">Three Months Ended March 31, 2016</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="width: 734.44px; text-align: left;">Gross written premiums</td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;">$</td>
<td style="width: 210px; text-align: right;">82,108</td>
<td style="width: 21.11px; text-align: left;"> </td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;">$</td>
<td style="width: 210px; text-align: right;">28,687</td>
<td style="width: 21.11px; text-align: left;"> </td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;">$</td>
<td style="width: 210px; text-align: right;">22,276</td>
<td style="width: 21.11px; text-align: left;"> </td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;">$</td>
<td style="width: 210px; text-align: right;">–</td>
<td style="width: 21.11px; text-align: left;"> </td>
<td style="width: 21.11px;"> </td>
<td style="width: 20px; text-align: left;">$</td>
<td style="width: 208.88px; text-align: right;">133,071</td>
<td style="width: 20px; text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left;">Net earned premiums</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">65,505</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">11,405</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">40,220</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">117,130</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -12.6pt; padding-left: 12.6pt;">Underwriting profit of insurance segments</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">9,204</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">475</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">334</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">10,013</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left;">Net investment income</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">3,286</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">611</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">6,227</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">1,148</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">11,272</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left;">Interest expense</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">2,174</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">2,174</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td
style="text-align: left;">Segment revenues</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">71,790</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">12,047</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">46,308</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">1,184</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">131,329</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left;">Segment goodwill</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">181,831</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">181,831</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left;">Segment assets</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">692,517</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">190,515</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">1,121,576</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">97,469</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">2,102,077</td>
<td style="text-align: left;"> </td>
</tr>
</table>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b> </b></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The following table reconciles the underwriting profit of the operating segments by individual segment to consolidated income before taxes:</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 95%; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-left: 0.25in; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;">
<td style="text-align: center;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">Three Months Ended March 31,</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td style="text-align: center;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">2017</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">2016</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td style="text-align: center;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-style: italic; font-weight: bold;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">(in thousands)</font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left;">Underwriting profit of the insurance segments:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="width: 1322.33px; text-align: left; padding-left: 0.3in;">Excess and Surplus Lines</td>
<td style="width: 20px;"> </td>
<td style="width: 20px; text-align: left;">$</td>
<td style="width: 232.22px; text-align: right;">8,800</td>
<td style="width: 18.88px;
text-align: left;"> </td>
<td style="width: 18.88px;"> </td>
<td style="width: 18.88px; text-align: left;">$</td>
<td style="width: 231.11px; text-align: right;">9,204</td>
<td style="width: 18.88px; text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-left: 0.3in;">Specialty Admitted Insurance</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">842</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">475</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 0.3in;">Casualty Reinsurance</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">1,093</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">334</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left;">Total underwriting profit of insurance segments</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">10,735</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">10,013</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-bottom: 1pt;">Other operating expenses of the Corporate and Other segment</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(6,461</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(5,252</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left;">Underwriting profit</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">4,274</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">4,761</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left;">Net investment income</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">16,733</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">11,272</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left;">Net realized investment gains</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">1,047</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">547</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left;">Amortization of intangible assets</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(149</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(149</td>
<td style="text-align: left;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left;">Other income and expenses</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">200</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">76</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-bottom: 1pt;">Interest expense</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(2,123</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(2,174</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-bottom: 2.5pt;">Income before taxes</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">19,982</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">14,333</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
</table>
</div>
<div>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0pt; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0">
<tr style="text-align: justify; vertical-align: top;">
<td style="width: 0in;"></td>
<td style="width: 0.5in; text-align: left;"><b>9.</b></td>
<td style="text-align: justify;"><b>Other Operating Expenses</b></td>
</tr>
</table>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b> </b></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Other operating expenses consist of the following:</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 95%; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-left: 0.25in; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;">
<td style="text-align: center;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">Three Months Ended March 31,</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td style="text-align: center;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">2017</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">2016</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td style="text-align: center;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-style: italic; font-weight: bold;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">(in thousands)</font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="width: 1327.12px; text-align: justify; text-indent: -0.25in; padding-left: 0.25in;">Amortization of policy acquisition costs</td>
<td style="width: 20px;"> </td>
<td style="width: 20px; text-align: left;">$</td>
<td style="width: 232.22px; text-align: right;">27,638</td>
<td style="width: 18.88px; text-align: left;"> </td>
<td style="width: 18.88px;"> </td>
<td style="width: 18.88px; text-align: left;">$</td>
<td style="width: 231.11px; text-align: right;">23,081</td>
<td style="width: 18.88px; text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: justify; text-indent: -0.25in; padding-left: 0.25in;">Other underwriting expenses of the operating segments</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">14,794</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">12,846</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: justify; padding-bottom: 1pt;">Other operating expenses of the Corporate and Other segment</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">6,461</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">5,252</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-indent: -0.25in; padding-bottom: 2.5pt; padding-left: 0.25in;">Total</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">48,893</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom:
2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">41,179</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
</table>
</div>
<div>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0pt; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0">
<tr style="text-align: justify; vertical-align: top;">
<td style="width: 0in;"></td>
<td style="width: 0.5in; text-align: left;"><b>10.</b></td>
<td style="text-align: justify;"><b>Fair Value Measurements</b></td>
</tr>
</table>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Three levels of inputs are used to measure fair value of financial instruments: (1) Level 1: quoted price (unadjusted) in active markets for identical assets, (2) Level 2: inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the instrument, and (3) Level 3: inputs to the valuation methodology are unobservable for the asset or liability.</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date.</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">To measure fair value, the Company obtains quoted market prices for its investment securities from its outside investment managers. If a quoted market price is not available, the Company uses prices of similar securities. Values for U.S. Treasury and publicly-traded equity securities are generally based on Level 1 inputs which use the market approach valuation technique. The values for all other fixed maturity securities (including state and municipal securities and obligations of U.S. government corporations and agencies) generally incorporate significant</p>
<div style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </div>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Level 2 inputs, and in some cases, Level 3 inputs, using the market approach and income approach valuation techniques. There have been no changes in the Company’s use of valuation techniques since December 31, 2015.</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The Company reviews fair value prices provided by its outside investment managers for reasonableness by comparing the fair values provided by the managers to those provided by its investment custodian. The Company also reviews and monitors changes in unrealized gains and losses. The Company has not historically adjusted security prices. The Company obtains an understanding of the methods, models and inputs used by the investment managers and independent pricing services, and controls are in place to validate that prices provided represent fair values. The Company’s control process includes, but is not limited to, initial and ongoing evaluation of the methodologies used, a review of specific securities and an assessment for proper classification within the fair value hierarchy, and obtaining and reviewing internal control reports for our investment manager that obtains fair values from independent pricing services.</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2;
widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Assets measured at fair value on a recurring basis as of March 31, 2017 are summarized below:</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;">
<td style="text-indent: 0px; padding-left: 0px;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="14" nowrap="nowrap"><font style="font-size: 8pt;">Fair Value Measurements Using</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td style="text-indent: 0px; padding-left: 0px;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Quoted Prices<br />in Active<br />Markets for<br />Identical<br />Assets</font></td>
<td style="font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Significant<br />Other<br />Observable<br />Inputs</font></td>
<td style="font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Significant<br />Unobservable<br />Inputs</font></td>
<td style="font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td style="text-indent: 0px; padding-left: 0px;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Level 1</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Level 2</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Level 3</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Total</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td style="text-indent: 0px; padding-left: 0px;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-style: italic; font-weight: bold;" colspan="14" nowrap="nowrap"><font style="font-size: 8pt;">(in thousands)</font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: 0px; padding-left: 0px;">Available-for-sale securities:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: 0px; padding-left: 0px;">Fixed maturity securities:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td
style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="width: 995.78px; text-align: left; text-indent: 0px; padding-left: 0.125in;">State and municipal</td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;">$</td>
<td style="width: 210px; text-align: right;">–</td>
<td style="width: 21.11px; text-align: left;"> </td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;">$</td>
<td style="width: 210px; text-align: right;">111,209</td>
<td style="width: 21.11px; text-align: left;"> </td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;">$</td>
<td style="width: 210px; text-align: right;">–</td>
<td style="width: 21.11px; text-align: left;"> </td>
<td style="width: 21.11px;"> </td>
<td style="width: 20px; text-align: left;">$</td>
<td style="width: 208.88px; text-align: right;">111,209</td>
<td style="width: 20px; text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: 0px; padding-left: 0.125in;">Residential mortgage-backed</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">143,462</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">143,462</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: 0px; padding-left: 0.125in;">Corporate</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">380,101</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">380,101</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -0.125in; padding-left: 0.25in;">Commercial mortgage and asset-backed</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">167,197</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">5,000</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">172,197</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -0.125in; padding-left: 0.25in;">Obligations of U.S. government corporations and agencies</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">62,554</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">62,554</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -0.125in; padding-left: 0.25in;">U.S. Treasury securities and obligations guaranteed by the U.S. government</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">69,541</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">627</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">70,168</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -0.125in; padding-left: 0.25in;">Redeemable preferred stock</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">–</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">1,996</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">–</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">1,996</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td
style="text-align: left; text-indent: 0px; padding-left: 0px;">Total fixed maturity securities</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">69,541</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">867,146</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">5,000</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">941,687</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: 0px; padding-left: 0px;">Equity securities:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -0.125in; padding-left: 0.25in;">Preferred stock</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">67,104</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">67,104</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -0.125in; padding-left: 0.25in;">Common stock</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">11,629</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">734</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">–</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">12,363</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: 0px; padding-bottom: 1pt; padding-left: 0px;">Total equity securities</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">11,629</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">67,838</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">–</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">79,467</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: 0px; padding-bottom: 2.5pt; padding-left: 0px;">Total available-for-sale securities</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">81,170</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">934,984</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">5,000</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">1,021,154</td>
<td style="text-align: left; padding-bottom:
2.5pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: 0px; padding-left: 0px;">Trading securities:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -0.125in; padding-left: 0.25in;">Fixed maturity securities</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">1,250</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">3,816</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">–</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">5,066</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: 0px; padding-bottom: 2.5pt; padding-left: 0px;">Short-term investments</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">1,000</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">52,361</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">–</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">53,361</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
</table>
<div style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">  </div>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Assets measured at fair value on a recurring basis as of December 31, 2016 are summarized below:</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="14" nowrap="nowrap"><font style="font-size: 8pt;">Fair Value Measurements Using</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Quoted Prices<br />in Active<br />Markets for<br />Identical<br />Assets</font></td>
<td style="font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Significant<br />Other<br />Observable<br />Inputs</font></td>
<td
style="font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Significant<br />Unobservable<br />Inputs</font></td>
<td style="font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Level 1</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Level 2</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Level 3</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Total</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-style: italic; font-weight: bold;" colspan="14" nowrap="nowrap"><font style="font-size: 8pt;">(in thousands)</font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-left: 1pt;">Available-for-sale securities:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-left: 1pt;">Fixed maturity securities:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="width: 983.78px; text-align: left; text-indent: -0.125in; padding-left: 0.25in;">State and municipal</td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;">$</td>
<td style="width: 210px; text-align: right;">–</td>
<td style="width: 21.11px; text-align: left;"> </td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;">$</td>
<td style="width: 210px; text-align: right;">105,841</td>
<td style="width: 21.11px; text-align: left;"> </td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;">$</td>
<td style="width: 210px; text-align: right;">–</td>
<td style="width: 21.11px; text-align: left;"> </td>
<td style="width: 21.11px;"> </td>
<td style="width: 20px; text-align: left;">$</td>
<td style="width: 208.88px; text-align: right;">105,841</td>
<td style="width: 20px; text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -0.125in; padding-left: 0.25in;">Residential mortgage-backed</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">150,798</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">150,798</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -0.125in; padding-left: 0.25in;">Corporate</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">378,448</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align:
right;">378,448</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -0.125in; padding-left: 0.25in;">Commercial mortgage and <br />asset-backed</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">163,047</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">5,000</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">168,047</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -0.125in; padding-left: 0.25in;">Obligations of U.S. government corporations and agencies</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">65,014</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">65,014</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -0.125in; padding-left: 0.25in;">U.S. Treasury securities and obligations guaranteed by the U.S. government</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">70,465</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">655</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">71,120</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -0.125in; padding-left: 0.25in;">Redeemable preferred stock</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">–</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">1,809</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">–</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">1,809</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-left: 1pt;">Total fixed maturity securities</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">70,465</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">865,612</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">5,000</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">941,077</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-left: 1pt;">Equity securities:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -0.125in; padding-left: 0.25in;">Preferred stock</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">64,827</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">64,827</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -0.125in; padding-left: 0.25in;">Common stock</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">10,840</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style:
solid;">734</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">–</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">11,574</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 1pt;">Total equity securities</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">10,840</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">65,561</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">–</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">76,401</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 1pt;">Total available-for-sale securities</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">81,305</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">931,173</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">5,000</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">1,017,478</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-left: 1pt;">Trading securities:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -0.125in; padding-left: 0.25in;">Fixed maturity securities</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">1,250</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">3,813</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">–</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">5,063</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 1pt;">Short-term investments</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">1,100</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black;
border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">49,744</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">–</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">50,844</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
</table>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The beginning and ending balances of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) consist of one available-for-sale fixed maturity security with a fair value of $5.0 million, and there was no activity (purchases, sales, transfers) involving Level 3 securities for the three months ended March 31, 2017 and 2016. A market approach using prices in trades of comparable securities was utilized to determine the fair value for this security at March 31, 2017 and December 31, 2016.</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Transfers out of Level 3 occur when the Company is able to obtain reliable prices from pricing vendors for securities for which the Company was previously unable to obtain reliable prices. Transfers in to Level 3 occur when the Company is unable to obtain reliable prices for securities from pricing vendors and instead must use broker price quotes to value the securities.</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">There were no transfers between Level 1 and Level 2 during the three months ended March 31, 2017 or 2016. The Company recognizes transfers between levels at the beginning of the reporting period.</p>
<div style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </div>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">There were no realized gains or losses included in earnings for the three months ended March 31, 2017 attributable to the change in unrealized gains or losses relating to Level 3 assets valued at fair value on a recurring basis that are still held at March 31, 2017.</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The Company measures certain bank loan participations at fair value on a non-recurring basis during the year as part of the Company’s impairment evaluation when loans are determined by management to be impaired.</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 13.5pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Assets
measured at fair value on a nonrecurring basis are summarized below:</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 13.5pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b> </b></p>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 90%; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-left: 0.25in; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="14" nowrap="nowrap"><font style="font-size: 8pt;">Fair Value Measurements Using</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td style="text-align: center; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap">
<p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-size: 8pt;"><b>Quoted Prices</b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-size: 8pt;"><b>In Active</b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-size: 8pt;"><b>Markets for</b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-size: 8pt;"><b>Identical Assets</b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-size: 8pt;"><b>Level 1</b></font></p>
</td>
<td style="text-align: center; padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap">
<p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-size: 8pt;"><b>Significant</b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-size: 8pt;"><b>Other</b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-size: 8pt;"><b>Observable</b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-size: 8pt;"><b>Inputs</b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-size: 8pt;"><b>Level 2</b></font></p>
</td>
<td style="text-align: center; padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap">
<p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-size: 8pt;"><b>Significant</b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-size: 8pt;"><b>Unobservable</b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-size: 8pt;"><b>Inputs</b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-size: 8pt;"><b>Level 3</b></font></p>
</td>
<td style="text-align: center; padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Total</font></td>
<td style="text-align: center; padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-style: italic; font-weight: bold;" colspan="14" nowrap="nowrap"><font style="font-size: 8pt;">(in thousands)</font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: -9.35pt; padding-left: 9.35pt; font-weight: bold;">March 31, 2017</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align:
left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="width: 874.2px; text-align: left; text-indent: -9.35pt; padding-bottom: 2.5pt; padding-left: 9.35pt;">Bank loan participations held-for-investment</td>
<td style="width: 18.88px; padding-bottom: 2.5pt;"> </td>
<td style="width: 18.88px; text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="width: 185.55px; text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">–</td>
<td style="width: 18.88px; text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="width: 18.88px; padding-bottom: 2.5pt;"> </td>
<td style="width: 18.88px; text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="width: 185.55px; text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">–</td>
<td style="width: 17.77px; text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="width: 17.77px; padding-bottom: 2.5pt;"> </td>
<td style="width: 17.77px; text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="width: 184.44px; text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">2,668</td>
<td style="width: 17.77px; text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="width: 17.77px; padding-bottom: 2.5pt;"> </td>
<td style="width: 17.77px; text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="width: 184.44px; text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">2,668</td>
<td style="width: 17.77px; text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-indent: -9.35pt; padding-left: 9.35pt; font-weight: bold;">December 31, 2016</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9.35pt; padding-bottom: 2.5pt; padding-left: 9.35pt;">Bank loan participations held-for-investment</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">–</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">–</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">4,849</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">4,849</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
</table>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 13.5pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 13.5pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Bank loan participations held-for-investment that were determined to be impaired were written down to their fair value of $2.7 million at March 31, 2017 and $4.8 million at December 31, 2016.</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 13.5pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">In the determination
of the fair value for bank loan participations and certain high yield bonds, the Company’s investment manager endeavors to obtain data from multiple external pricing sources. External pricing sources may include brokers, dealers and price data vendors that provide a composite price based on prices from multiple dealers. Such external pricing sources typically provide valuations for normal institutional size trading units of such securities using methods based on market transactions for comparable securities, and various relationships between securities, as generally recognized by institutional dealers. For investments in which the investment manager determines that only one external pricing source is appropriate or if only one external price is available, the relevant investment is generally recorded at fair value based on such price.</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Investments for which external sources are not available or are determined by the investment manager not to be representative of fair value are recorded at fair value as determined by the Company, with input from its investment managers and valuation specialists as considered necessary. In determining the fair value of such investments, the Company considers one or more of the following factors: type of security held, convertibility or exchangeability of the security, redeemability of the security (including the timing of redemptions), application of industry accepted valuation models, recent trading activity, liquidity, estimates of liquidation value, purchase cost, and prices received for securities with similar terms of the same issuer or similar issuers. At March 31, 2017, there were bank loan participations with an unpaid principal balance of $1.8 million and a carrying value of $1.6 million for which external sources were unavailable to determine fair value. At December 31, 2016, there were bank loan participations with an unpaid principal balance of $2.3 million and a carrying value of $2.0 million for which external sources were unavailable to determine fair value.</p>
<div style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </div>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The carrying values and fair values of financial instruments are summarized below:</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b> </b></p>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 95%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">March 31, 2017</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">December 31, 2016</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Carrying <br />Value</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Fair Value</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Carrying <br />Value</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight:
bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Fair Value</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-style: italic; font-weight: bold;" colspan="14" nowrap="nowrap"><font style="font-size: 8pt;">(in thousands)</font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td> </td>
<td> </td>
<td style="text-align: justify;" colspan="2"> </td>
<td> </td>
<td> </td>
<td style="text-align: justify;" colspan="2"> </td>
<td> </td>
<td> </td>
<td style="text-align: justify;" colspan="2"> </td>
<td> </td>
<td> </td>
<td style="text-align: justify;" colspan="2"> </td>
<td> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: -9.35pt; padding-left: 9.35pt; font-weight: bold;">Assets</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-indent: -9.35pt; padding-left: 9.35pt;">Available-for-sale:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="width: 934.44px; text-align: left; text-indent: -9.35pt; padding-left: 17.5pt;">Fixed maturity securities</td>
<td style="width: 20px;"> </td>
<td style="width: 20px; text-align: left;">$</td>
<td style="width: 200px; text-align: right;">941,687</td>
<td style="width: 20px; text-align: left;"> </td>
<td style="width: 20px;"> </td>
<td style="width: 20px; text-align: left;">$</td>
<td style="width: 200px; text-align: right;">941,687</td>
<td style="width: 20px; text-align: left;"> </td>
<td style="width: 20px;"> </td>
<td style="width: 20px; text-align: left;">$</td>
<td style="width: 200px; text-align: right;">941,077</td>
<td style="width: 20px; text-align: left;"> </td>
<td style="width: 18.88px;"> </td>
<td style="width: 18.88px; text-align: left;">$</td>
<td style="width: 198.88px; text-align: right;">941,077</td>
<td style="width: 18.88px; text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 17.5pt;">Equity securities</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">79,467</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">79,467</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">76,401</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">76,401</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: -9.35pt; padding-left: 9.35pt;">Trading:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 17.5pt;">Fixed maturity securities</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">5,066</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">5,066</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">5,063</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">5,063</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 9.35pt;">Bank loan participations held-for-investment</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">224,224</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">223,676</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">203,526</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">203,123</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 9.35pt;">Cash and cash equivalents</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">94,224</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td
style="text-align: right;">94,224</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">109,784</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">109,784</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 9.35pt;">Short-term investments</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">53,361</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">53,361</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">50,844</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">50,844</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 9.35pt;">Other invested assets – notes receivable</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">4,500</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">5,922</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">4,500</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">6,008</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: -9.35pt; padding-left: 9.35pt;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-indent: -9.35pt; padding-left: 9.35pt; font-weight: bold;">Liabilities</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 9.35pt;">Senior debt</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">88,300</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">84,440</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">88,300</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">85,404</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 9.35pt;">Junior subordinated debt</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">104,055</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">102,681</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">104,055</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">99,397</td>
<td style="text-align: left;"> </td>
</tr>
</table>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The fair values of fixed maturity securities and equity securities have been determined using quoted market prices for securities traded in the public market or prices using bid or closing prices for securities not traded in the public marketplace. The fair values of cash and cash equivalents and short-term investments approximate their carrying values due to their short-term maturity.</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The fair values of other invested assets-notes receivable, senior debt, and junior subordinated debt at March 31, 2017 and December 31, 2016 were determined by calculating the present value of expected future cash flows under the terms of the note agreements or debt agreements, as applicable, discounted at an estimated
market rate of interest at March 31, 2017 and December 31, 2016, respectively.</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<div style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The fair values of bank loan participations held-for-investment, senior debt, and junior subordinated debt at March 31, 2017 and December 31, 2016 were determined using inputs to the valuation methodology that are unobservable (Level 3).</div>
</div>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0pt; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0">
<tr style="text-align: justify; vertical-align: top;">
<td style="width: 0.5in; text-align: left;"><b>11.</b></td>
<td style="text-align: justify;"><b>Capital Stock and Equity Awards</b></td>
</tr>
</table>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b> </b></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The Company issued 86,761 common shares in the first quarter of 2017 with 63,467 new shares related to stock option exercises and 23,294 new shares related to RSUs that vested in the first quarter. The total common shares outstanding increased from 29,257,566 at December 31, 2016 to 29,344,327 at March 31, 2017.</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">On February 14, 2017, the Board of Directors declared a cash dividend of $0.30 per common share. The dividend totaled $8.9 million and was paid on March 31, 2017 to shareholders of record on March 13, 2017. On February 16, 2016, the Board of Directors declared a cash dividend of $0.20 per common share. The dividend totaled $5.8 million and was paid on March 28, 2016 to shareholders of record on March 14, 2016.</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b> </b></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: left; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b><i>Equity Incentive Plans</i></b></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The Company’s shareholders have approved various equity incentive plans, including the Amended and Restated 2009 Equity Incentive Plan (the “Legacy Plan”), the 2014 Long Term Incentive Plan (“2014 LTIP”), and the 2014 Non-Employee Director Incentive Plan (“2014 Director Plan”) (collectively, the “Plans”). All awards issued under the Plans are issued at the discretion of the Board of Directors. Under the Legacy Plan, employees received non-qualified stock options. Options are outstanding under the Legacy Plan; however, no additional awards may be granted under such plan. </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Employees are eligible to receive non-qualified stock options, incentive stock options, share appreciation rights, performance shares, restricted shares, restricted share units (“RSUs”), and other awards under the 2014 LTIP. The maximum number of shares available for issuance under the 2014 LTIP is 3,171,150, and at March 31, 2017, 876,309 shares are available for grant.</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 22.5pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Non-employee directors of the Company are eligible to receive non-qualified stock options, share appreciation rights, performance shares, restricted shares, restricted share units, and other awards under the 2014 Director Plan. The maximum number of shares available for issuance under the 2014 Director Plan is 50,000, and at March 31, 2017, 32,994 shares are available for grant.</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 22.5pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 22.5pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">All options issued under the Legacy Plan vest in the event of a change in control. Generally, awards issued under the 2014 LTIP and 2014 Director Plan vest immediately in the event that an award recipient is terminated without Cause (as defined), and in the case of the 2014 LTIP for Good Reason (as defined) following a Change in Control as defined in the applicable plans.</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The Board of Directors has granted awards under the 2014 LTIP and 2014 Director Plan to the Company’s employees and directors. On February 14, 2017, non-qualified stock options for 195,509 shares were granted with an exercise price of $42.17 per share and a three year vesting period. RSUs for 117,879 shares were also awarded with a fair value on the date of grant of $42.17 per share. On February 16, 2016, non-qualified stock options for 706,203 shares were granted with an exercise price of $32.07 per share and a three year vesting period. RSUs for 58,663 shares were also awarded with a fair value on the date of grant of $32.07 per share. RSUs vest over one to three year periods, depending on the award.</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b><i>Options</i></b></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b><i> </i></b></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The following table summarizes the option activity:</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 95%; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-left: 0.25in; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="14" nowrap="nowrap"><font style="font-size: 8pt;">Three Months Ended March 31,</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">2017</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">2016</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Shares</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Weighted- <br />Average <br />Exercise <br />Price</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Shares</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Weighted- <br />Average <br />Exercise <br />Price</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: -9.35pt; padding-left: 9.35pt;">Outstanding:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="width: 676.34px; text-indent: 0in; padding-left: 11.75pt;">Beginning of period</td>
<td style="width: 15px;"> </td>
<td style="width: 15px; text-align: left;"> </td>
<td style="width: 145px; text-align: right;">2,234,699</td>
<td style="width: 15px; text-align: left;"> </td>
<td style="width: 15px;"> </td>
<td style="width: 14px; text-align: left;">$</td>
<td style="width: 144px; text-align: right;">22.84</td>
<td style="width: 14px; text-align: left;"> </td>
<td style="width: 14px;"> </td>
<td style="width: 14px; text-align: left;"> </td>
<td style="width: 144px; text-align: right;">2,058,085</td>
<td style="width: 14px; text-align: left;"> </td>
<td style="width: 14px;"> </td>
<td style="width: 14px; text-align: left;">$</td>
<td style="width: 144px; text-align: right;">18.11</td>
<td style="width: 14px; text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: 0in; padding-left: 20.75pt;">Granted</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">195,509</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;">42.17</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">706,203</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;">32.07</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-indent: 0in; padding-left: 20.75pt;">Exercised</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(97,211</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;">17.23</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(80,616</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;">16.52</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: 0in; padding-bottom: 1pt; padding-left: 20.75pt;">Forfeited</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(50,062</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; padding-bottom: 1pt;">$</td>
<td style="text-align: right; padding-bottom: 1pt;">27.97</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(3,362</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; padding-bottom: 1pt;">$</td>
<td style="text-align: right; padding-bottom: 1pt;">21.00</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-indent: 0in; padding-bottom: 2.5pt; padding-left: 11.75pt;">End of period</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">2,282,935</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; padding-bottom: 2.5pt;">$</td>
<td style="text-align: right; padding-bottom: 2.5pt;">24.62</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">2,680,310</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; padding-bottom: 2.5pt;">$</td>
<td style="text-align: right; padding-bottom: 2.5pt;">21.83</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: 0in; padding-bottom: 2.5pt; padding-left: 11.75pt;">Exercisable, end of period</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">1,334,756</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; padding-bottom: 2.5pt;">$</td>
<td style="text-align: right; padding-bottom: 2.5pt;">20.47</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">1,165,401</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; padding-bottom: 2.5pt;">$</td>
<td style="text-align: right; padding-bottom: 2.5pt;">16.81</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
</table>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b><i> </i></b><b><i> </i></b></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b><i>RSUs</i></b></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b><i> </i></b></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The following table summarizes the RSU activity for the three months ended March 31, 2017 and 2016:</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 85%; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-left: 0.5in; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;">
<td style="text-indent: 0px; padding-left: 0px;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Shares</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Weighted- <br />Average <br />Grant Date <br />Fair Value</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: 0px; padding-left: 0px; font-weight: bold;">March 31, 2017</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="width: 974px; text-indent: 0px; padding-left: 0px;">Unvested, beginning of period</td>
<td style="width: 14px;"> </td>
<td style="width: 14px; text-align: left;"> </td>
<td style="width: 131px; text-align: right;">196,800</td>
<td style="width: 13px; text-align: left;"> </td>
<td style="width: 13px;"> </td>
<td style="width: 13px; text-align: left;">$</td>
<td style="width: 131px; text-align: right;">24.38</td>
<td style="width: 13px; text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: 0px; padding-left: 0px;">Granted</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">117,879</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;">42.17</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-indent: 0px; padding-left: 0px;">Vested</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(37,485</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;">32.07</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: 0px; padding-bottom: 1pt; padding-left: 0px;">Forfeited</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(19,743</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; padding-bottom: 1pt;">$</td>
<td style="text-align: right; padding-bottom: 1pt;">24.06</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-indent: 0px; padding-bottom: 2.5pt; padding-left: 0px;">Unvested, end of period</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">257,451</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; padding-bottom: 2.5pt;">$</td>
<td style="text-align: right; padding-bottom: 2.5pt;">31.43</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: 0px; padding-left: 0px;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-indent: 0px; padding-left: 0px; font-weight: bold;">March 31, 2016</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: 0px; padding-left: 0px;">Unvested, beginning of period</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">234,922</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;">21.00</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-indent: 0px; padding-bottom: 1pt; padding-left: 0px;">Granted</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">58,663</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; padding-bottom: 1pt;">$</td>
<td style="text-align: right; padding-bottom: 1pt;">32.07</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: 0px; padding-bottom: 2.5pt; padding-left: 0px;">Unvested, end of period</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">293,585</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; padding-bottom: 2.5pt;">$</td>
<td style="text-align: right; padding-bottom: 2.5pt;">23.21</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
</table>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b><i>Compensation Expense</i></b></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Share based compensation expense is recognized on a straight line basis over the vesting period. The amount of expense and related tax benefit is summarized below:</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 85%; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-left: 0.5in; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;">
<td style="text-align: center;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">Three Months Ended March 31,</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td style="text-align: center;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">2017</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">2016</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td style="text-align: center;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-style: italic; font-weight: bold;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">(in thousands)</font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="width: 950px; text-align: justify; text-indent: -0.25in; padding-left: 0.25in;">Share based compensation expense</td>
<td style="width: 14px;"> </td>
<td style="width: 14px; text-align: left;">$</td>
<td style="width: 131px; text-align: right;">1,794</td>
<td style="width: 13px; text-align: left;"> </td>
<td style="width: 13px;"> </td>
<td style="width: 13px; text-align: left;">$</td>
<td style="width: 131px; text-align: right;">1,189</td>
<td style="width: 13px; text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: justify; text-indent: -0.25in; padding-left: 0.25in;">U.S. tax benefit on share based compensation expense</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">469</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">336</td>
<td style="text-align: left;"> </td>
</tr>
</table>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">As of March 31, 2017, the Company had $12.1 million of unrecognized share based compensation expense expected to be charged to earnings over a weighted-average period of 2.2 years. The weighted-average remaining contractual life of the options outstanding and options exercisable was 4.6 years and 3.8 years, respectively.</p>
<div>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0pt; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0">
<tr style="text-align: justify; vertical-align: top;">
<td style="width: 0.5in; text-align: left;"><b>12.</b></td>
<td style="text-align: justify;"><b>Subsequent Events</b></td>
</tr>
</table>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b> </b></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">On May 2, 2017, the Board of Directors declared a cash dividend of $0.30 per common share. The dividend is payable on June 30, 2017 to shareholders of record on June 12, 2017.</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<div style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">On May 2, 2017, the Company’s shareholders approved an amendment to the 2014 LTIP to increase the number of common shares authorized for issuance by 1,000,000, with only 500,000 of such additional shares to be available for issuance as awards that are not share appreciation rights or share option awards.</div>
</div>
<div>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b>Basis of Presentation</b></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b> </b></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The accompanying condensed consolidated financial statements and notes have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and do not contain all of the information and footnotes required by U.S. GAAP for complete financial statements. The condensed consolidated financial statements include the results of the Company and its subsidiaries from their respective dates of inception or acquisition, as applicable. Readers are urged to review the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 for a more complete description of the Company’s business and accounting policies. In the opinion of management, all adjustments necessary for a fair presentation of the condensed consolidated financial statements have been included. Such adjustments consist only of normal recurring items. Interim results are not necessarily indicative of results of operations for the full year. The consolidated balance sheet as of December 31, 2016 was derived from the Company’s audited annual consolidated financial statements.</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<div style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Intercompany transactions and balances have been eliminated.</div>
</div>
<div>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b>Estimates and Assumptions</b></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b> </b></p>
<div style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying disclosures. Those estimates are inherently subject to change, and actual results may ultimately differ from those estimates.</div>
</div>
<div>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b>Variable Interest Entities</b></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b> </b></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Entities that do not have sufficient equity at risk to allow the entity to finance its activities without additional financial support or in which the equity investors, as a group, do not have the characteristic of a controlling financial interest are referred to as variable interest entities (“VIE”). A VIE is consolidated by the variable interest holder that is determined to have the controlling financial interest (primary beneficiary) as a result of having both the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company determines whether it is the primary beneficiary of an entity subject to consolidation based on a qualitative assessment of the VIE’s capital structure, contractual terms, nature of the VIE’s operations and purpose, and the Company’s relative exposure to the related risks of the VIE on the date it becomes initially involved in the VIE. The Company reassesses its VIE determination with respect to an entity on an ongoing basis.</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<div style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The Company holds interests in VIEs through certain equity method investments included in “other invested assets” in the accompanying condensed consolidated balance sheets. The Company has determined that it should not consolidate any of the VIEs as it is not the primary beneficiary in any of the relationships. Although the investments resulted in the Company holding variable interests in the entities, they did not empower the Company to direct the activities that most significantly impact the economic performance of the entities. The Company’s investments related to these VIEs totaled $31.1 million and $27.1 million as of March 31, 2017 and December 31, 2016, respectively, representing the Company’s maximum exposure to loss.</div>
</div>
<div>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b>Prospective Accounting Standards</b></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b> </b></p>
<div style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="color: #231f20;">In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, <i>Revenue from Contracts with Customers (Topic 606)</i>. </font>The guidance applies to all companies that either enter into contracts with customers to transfer goods or services or enter into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards, such as insurance contracts. Under this guidance, a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under the current guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU 2014-09 becomes effective for the Company during the first quarter of 2018 and must be applied retrospectively. The Company is currently evaluating ASU 2014-09 to determine the potential impact that adopting this standard will have on reported fee income. The Company does not believe adoption will have a material impact on its consolidated financial statements.</div>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #231f20; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #231f20; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">In January 2016, the FASB issued ASU 2016-01, <i>Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities</i>. Among other things, this ASU will require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. This ASU is effective for interim and annual reporting periods beginning after December 15, 2017. Upon adoption, a cumulative-effect adjustment to the balance sheet will be made as of the beginning of the fiscal year of adoption. The Company has not yet completed the analysis of how adopting this ASU will affect our consolidated financial statements.</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #231f20; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #231f20; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">In February 2016, the FASB issued ASU 2016-02, <i>Leases (Topic 842)</i>. Under current guidance for lessees, leases are only included on the balance sheet if certain criteria, classifying the agreement as a capital lease, are met. This update will require the recognition of a right-of-use asset and a corresponding lease liability, discounted to the present value, for all leases that extend beyond 12 months. This ASU is effective for annual and interim reporting periods beginning after December 15, 2018. Early adoption is permitted. Upon adoption, leases will be recognized and measured at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently evaluating ASU 2016-02 to determine the potential impact that adopting this standard will have on its consolidated financial statements.</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #231f20; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #231f20; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">In June 2016, the FASB issued ASU 2016-13, <i>Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. </i>Current GAAP delays the recognition of credit losses until it is probable a loss has been incurred. The update will require financial assets measured at amortized cost, such as bank loan participations held for investment, to be presented at the net amount expected to be collected by means of an allowance for credit losses that runs through net income. Credit losses relating to
available-for-sale debt securities will also be recorded through an allowance for credit losses, with the amount of the allowance limited to the amount by which fair value is below amortized cost. This ASU is effective for annual and interim reporting periods beginning after December 15, 2019. Upon adoption, this ASU will be applied using the modified-retrospective approach, by which a cumulative-effect adjustment will be made to retained earnings as of the beginning of the first reporting period presented. The Company has not yet completed the analysis of how adopting this ASU will affect Company’s financial statements.</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b> </b></p>
<div style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">In August 2016, the FASB issued ASU 2016-15, <i>Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments</i> to address the diversity in practice of how certain cash receipts and payments are classified in the statement of cash flows. The update addresses specific issues, including distributions received from equity method investees and the classification of cash receipts and payments that have aspects of more than one class of cash flows. This ASU is effective for annual and interim reporting periods beginning after December 15, 2017. Upon adoption, the update will be applied using the retrospective transition method. The Company has not yet completed the analysis of how adopting this ASU will affect its financial statements, but does not expect a material impact on our statement of cash flows.</div>
</div>
<div>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Cost or <br />Amortized <br />Cost</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Gross <br /> Unrealized <br />Gains</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Gross <br /> Unrealized <br />Losses</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Fair <br /> Value</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-style: italic; font-weight: bold;" colspan="14" nowrap="nowrap"><font style="font-size: 8pt;">(in thousands)</font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="font-weight: bold;">March 31, 2017</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left;">Fixed maturity securities:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="width: 995.78px; text-align: left; padding-left: 9pt;">State and municipal</td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;">$</td>
<td style="width: 210px; text-align: right;">107,019</td>
<td style="width: 21.11px; text-align: left;"> </td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;">$</td>
<td style="width: 210px; text-align: right;">5,001</td>
<td style="width: 21.11px; text-align: left;"> </td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;">$</td>
<td style="width: 210px; text-align: right;">(811</td>
<td style="width: 21.11px; text-align: left;">)</td>
<td style="width: 21.11px;"> </td>
<td style="width: 20px; text-align: left;">$</td>
<td style="width: 208.88px; text-align: right;">111,209</td>
<td style="width: 20px; text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-left: 9pt;">Residential mortgage-backed</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">145,415</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">1,037</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(2,990</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">143,462</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="padding-left: 9pt;">Corporate</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">379,076</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">4,775</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(3,750</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">380,101</td>
<td style="text-align: left;"> </td>
</tr>
<tr
style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-left: 9pt;">Commercial mortgage and asset-backed</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">172,092</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">819</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(714</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">172,197</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9pt; padding-left: 0.25in;">Obligations of U.S. government corporations and agencies</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">62,493</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">191</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(130</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">62,554</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9pt; padding-left: 0.25in;">U.S. Treasury securities and obligations guaranteed by the U.S. government</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">70,242</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">105</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(179</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">70,168</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 9pt;">Redeemable preferred stock</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">2,025</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">—</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(29</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">1,996</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left;">Total fixed maturity securities</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">938,362</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">11,928</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(8,603</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">941,687</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-bottom: 1pt;">Equity securities</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">74,531</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">6,240</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(1,304</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">79,467</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-bottom: 2.5pt;">Total investments available-for-sale</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">1,012,893</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">18,168</td>
<td style="text-align: left; padding-bottom:
2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">(9,907</td>
<td style="text-align: left; padding-bottom: 2.5pt;">)</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">1,021,154</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="font-weight: bold;">December 31, 2016</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left;">Fixed maturity securities:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-left: 9pt;">State and municipal</td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;">101,793</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;">5,032</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;">(984</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;">105,841</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-left: 9pt;">Residential mortgage-backed</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">152,703</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">1,070</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(2,975</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">150,798</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="padding-left: 9pt;">Corporate</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">379,727</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">4,382</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(5,661</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">378,448</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-left: 9pt;">Commercial mortgage and asset-backed</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">167,967</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">906</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(826</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">168,047</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9pt; padding-left: 0.25in;">Obligations of U.S. government corporations and agencies</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">64,823</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">276</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(85</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">65,014</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9pt; padding-left: 0.25in;">U.S. Treasury securities and obligations guaranteed by the U.S. government</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">71,174</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">131</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(185</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">71,120</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 9pt;">Redeemable preferred stock</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">2,025</td>
<td style="text-align: left;
padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">—</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(216</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">1,809</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left;">Total fixed maturity securities</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">940,212</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">11,797</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(10,932</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">941,077</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-bottom: 1pt;">Equity securities</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">74,553</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">4,503</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(2,655</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">76,401</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-bottom: 2.5pt;">Total investments available-for-sale</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">1,014,765</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">16,300</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">(13,587</td>
<td style="text-align: left; padding-bottom: 2.5pt;">)</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">1,017,478</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
</table>
</div>
<div>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Cost or <br />Amortized <br />Cost</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Fair <br /> Value</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-style: italic; font-weight: bold;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">(in thousands)</font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td> </td>
<td> </td>
<td style="text-align: justify;" colspan="2"> </td>
<td> </td>
<td> </td>
<td style="text-align: justify;" colspan="2"> </td>
<td> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="width: 1540.87px; text-align: left; text-indent: -9.35pt; padding-left: 9.35pt;">One year or less</td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;">$</td>
<td style="width: 210px; text-align: right;">98,952</td>
<td style="width: 21.11px; text-align: left;"> </td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;">$</td>
<td style="width: 208.88px; text-align: right;">99,404</td>
<td style="width: 20px; text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 9.35pt;">After one year through five years</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">232,153</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">233,770</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 9.35pt;">After five years through ten years</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">172,470</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">171,838</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 9.35pt;">After ten years</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">115,255</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">119,020</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 9.35pt;">Residential mortgage-backed</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">145,415</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">143,462</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 9.35pt;">Commercial mortgage and asset-backed</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">172,092</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">172,197</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9.35pt; padding-bottom: 1pt; padding-left: 9.35pt;">Redeemable preferred stock</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">2,025</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">1,996</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-indent: -9.35pt; padding-bottom: 2.5pt; padding-left: 9.35pt;">Total</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">938,362</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">941,687</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
</table>
</div>
<div>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">Less Than 12 Months</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">12 Months or More</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">Total</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Fair <br /> Value</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Gross <br /> Unrealized <br />Losses</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Fair <br /> Value</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Gross <br /> Unrealized <br />Losses</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Fair <br /> Value</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Gross <br /> Unrealized <br />Losses</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-style: italic; font-weight: bold;" colspan="22" nowrap="nowrap"><font style="font-size: 8pt;">(in thousands)</font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: -0.1in; padding-left: 0.1in; font-weight: bold;">March 31, 2017</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td
style="text-align: left; text-indent: -9pt; padding-left: 9pt;">Fixed maturity securities:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="width: 691.73px; text-align: left; text-indent: -0.1in; padding-left: 16.2pt;">State and municipal</td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;">$</td>
<td style="width: 168.88px; text-align: right;">28,964</td>
<td style="width: 21.11px; text-align: left;"> </td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;">$</td>
<td style="width: 168.88px; text-align: right;">(811</td>
<td style="width: 21.11px; text-align: left;">)</td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;">$</td>
<td style="width: 168.88px; text-align: right;">—</td>
<td style="width: 21.11px; text-align: left;"> </td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;">$</td>
<td style="width: 168.88px; text-align: right;">—</td>
<td style="width: 21.11px; text-align: left;"> </td>
<td style="width: 20px;"> </td>
<td style="width: 20px; text-align: left;">$</td>
<td style="width: 167.77px; text-align: right;">28,964</td>
<td style="width: 20px; text-align: left;"> </td>
<td style="width: 20px;"> </td>
<td style="width: 20px; text-align: left;">$</td>
<td style="width: 167.77px; text-align: right;">(811</td>
<td style="width: 20px; text-align: left;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -0.1in; padding-left: 16.2pt;">Residential mortgage-backed</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">87,741</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(1,545</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">31,113</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(1,445</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">118,854</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(2,990</td>
<td style="text-align: left;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: -0.1in; padding-left: 16.2pt;">Corporate</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">156,461</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(3,519</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">3,402</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(231</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">159,863</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(3,750</td>
<td style="text-align: left;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9pt; padding-left: 0.25in;">Commercial mortgage and asset-backed</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">52,815</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(713</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">4,749</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(1</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">57,564</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(714</td>
<td style="text-align: left;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9pt; padding-left: 0.25in;">Obligations of U.S. government corporations and agencies</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">52,142</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(130</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">—</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">—</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">52,142</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(130</td>
<td style="text-align: left;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9pt; padding-bottom: 1pt; padding-left: 0.25in;">U.S. Treasury securities and obligations guaranteed by the U.S. government</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="text-align: right; padding-bottom: 1pt;">51,941</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left;
padding-bottom: 1pt;"> </td>
<td style="text-align: right; padding-bottom: 1pt;">(179</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="text-align: right; padding-bottom: 1pt;">—</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="text-align: right; padding-bottom: 1pt;">—</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="text-align: right; padding-bottom: 1pt;">51,941</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="text-align: right; padding-bottom: 1pt;">(179</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 9pt;">Redeemable preferred stock</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">1,996</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(29</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">—</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">—</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">1,996</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(29</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt;">Total fixed maturity securities</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">432,060</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(6,926</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">39,264</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(1,677</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">471,324</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(8,603</td>
<td style="text-align: left;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9pt; padding-bottom: 1pt; padding-left: 9pt;">Equity securities</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">9,667</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(161</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">6,999</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(1,143</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">16,666</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(1,304</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9pt; padding-bottom: 2.5pt; padding-left: 9pt;">Total investments available-for-sale</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left;
border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">441,727</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">(7,087</td>
<td style="text-align: left; padding-bottom: 2.5pt;">)</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">46,263</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">(2,820</td>
<td style="text-align: left; padding-bottom: 2.5pt;">)</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">487,990</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">(9,907</td>
<td style="text-align: left; padding-bottom: 2.5pt;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: -0.1in; padding-left: 0.1in; font-weight: bold;">December 31, 2016</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt;">Fixed maturity securities:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-left: 9pt;">State and municipal</td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;">28,398</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;">(984</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;">—</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;">—</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;">28,398</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;">(984</td>
<td style="text-align: left;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-left: 9pt;">Residential mortgage-backed</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">93,242</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(1,548</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">32,330</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(1,427</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">125,572</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(2,975</td>
<td style="text-align: left;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="padding-left: 9pt;">Corporate</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">199,841</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(4,212</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">8,477</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(1,449</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">208,318</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align:
right;">(5,661</td>
<td style="text-align: left;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9pt; padding-left: 0.25in;">Commercial mortgage and asset-backed</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">47,990</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(799</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">7,195</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(27</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">55,185</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(826</td>
<td style="text-align: left;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9pt; padding-left: 0.25in;">Obligations of U.S. government corporations and agencies</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">50,573</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(85</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">—</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">—</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">50,573</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(85</td>
<td style="text-align: left;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9pt; padding-left: 0.25in;">U.S. Treasury securities and obligations guaranteed by the U.S. government</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">48,989</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(185</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">—</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">—</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">48,989</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(185</td>
<td style="text-align: left;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 9pt;">Redeemable preferred stock</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">1,809</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(216</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">—</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">—</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">1,809</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(216</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left;">Total fixed maturity securities</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">470,842</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(8,029</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">48,002</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(2,903</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">518,844</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(10,932</td>
<td style="text-align: left;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-bottom: 1pt;">Equity securities</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">21,345</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom:
1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(1,071</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">6,558</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(1,584</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">27,903</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(2,655</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-bottom: 2.5pt;">Total investments available-for-sale</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">492,187</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">(9,100</td>
<td style="text-align: left; padding-bottom: 2.5pt;">)</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">54,560</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">(4,487</td>
<td style="text-align: left; padding-bottom: 2.5pt;">)</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">546,747</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">(13,587</td>
<td style="text-align: left; padding-bottom: 2.5pt;">)</td>
</tr>
</table>
</div>
<div>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 90%; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-left: 0.5in; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">Three Months Ended March 31,</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">2017</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">2016</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-style: italic; font-weight: bold;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">(in thousands)</font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 9.35pt;">Fixed maturity securities:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="width: 1279.51px; text-align: left; text-indent: -9.35pt; padding-left: 18.7pt;">Gross realized gains</td>
<td style="width: 17.77px;"> </td>
<td style="width: 17.77px; text-align: left;">$</td>
<td style="width: 176.66px; text-align: right;">338</td>
<td style="width: 17.77px; text-align: left;"> </td>
<td style="width: 17.77px;"> </td>
<td style="width: 17.77px; text-align: left;">$</td>
<td style="width: 175.55px; text-align: right;">842</td>
<td style="width: 16.66px; text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9.35pt; padding-bottom: 1pt; padding-left: 18.7pt;">Gross realized losses</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(296</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(1</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-indent: -9.35pt; padding-left: 9.35pt;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">42</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">841</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: -9.35pt; padding-left: 9.35pt;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 9.35pt;">Bank loan participations:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 18.7pt;">Gross realized gains</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">1,136</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">60</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9.35pt; padding-bottom: 1pt; padding-left: 18.7pt;">Gross realized losses</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(539</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt;
border-bottom-style: solid;">(352</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: -9.35pt; padding-left: 9.35pt;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">597</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(292</td>
<td style="text-align: left;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-indent: -9.35pt; padding-left: 9.35pt;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 9.35pt;">Equity securities:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 18.7pt;">Gross realized gains</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">409</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9.35pt; padding-bottom: 1pt; padding-left: 18.7pt;">Gross realized losses</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">–</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">–</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-indent: -9.35pt; padding-left: 9.35pt;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">409</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: -9.35pt; padding-left: 9.35pt;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 9.35pt;">Short-term investments and other:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 18.7pt;">Gross realized gains</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9.35pt; padding-bottom: 1pt; padding-left: 18.7pt;">Gross realized losses</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(1</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(2</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: -9.35pt; padding-bottom: 1pt; padding-left: 9.35pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(1</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(2</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-indent: -9.35pt; padding-bottom: 2.5pt; padding-left: 9.35pt;">Total</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">1,047</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color:
black; border-bottom-width: 2.5pt; border-bottom-style: double;">547</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
</table>
</div>
<div>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 95%; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-left: 0.25in; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td colspan="2" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td colspan="2" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">Investment Income</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">Carrying Value</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; padding-bottom: 1pt; font-weight: bold;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">Three Months Ended</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">March 31,</font></td>
<td style="font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">December 31,</font></td>
<td style="font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">March 31,</font></td>
<td style="font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">2017</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">2016</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">2017</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">2016</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-style: italic; font-weight: bold;" colspan="14" nowrap="nowrap"><font style="font-size: 8pt;">(in thousands)</font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="width: 967.77px; text-align: left;">Renewable energy LLCs <i>(a)</i></td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;">$</td>
<td style="width: 201.11px; text-align: right;">31,074</td>
<td style="width: 20px; text-align: left;"> </td>
<td style="width: 20px;"> </td>
<td style="width: 20px; text-align: left;">$</td>
<td style="width: 201.11px; text-align: right;">27,067</td>
<td style="width: 20px; text-align: left;"> </td>
<td style="width: 20px;"> </td>
<td style="width: 20px; text-align: left;">$</td>
<td style="width: 201.11px; text-align: right;">5,594</td>
<td style="width: 20px; text-align: left;"> </td>
<td style="width: 20px;"> </td>
<td style="width: 20px; text-align: left;">$</td>
<td style="width: 201.11px; text-align: right;">681</td>
<td style="width: 20px; text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left;">Renewable energy bridge financing notes (<i>b)</i></td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">244</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left;">Limited partnerships <i>(c)</i></td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">24,071</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">23,852</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">382</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">156</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-bottom: 1pt;">Bank holding companies <i>(d)</i></td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">4,500</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">4,500</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">86</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">86</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-bottom: 2.5pt;">Total other invested assets</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">59,645</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">55,419</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">6,062</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">1,167</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
</table>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.25in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><i> </i></p>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0">
<tr style="vertical-align: top;">
<td style="width: 0px;"></td>
<td style="width: 0.25in;"><i>(a)</i></td>
<td style="text-align: justify;">The Company’s Corporate and Other segment owns equity interests ranging from 2.7% to 33.3% in various LLCs whose principal objective is capital appreciation and income generation from owning and operating renewable energy production facilities (wind and solar). The LLCs are managed by an affiliate of the Company’s largest shareholder and the Company’s Chairman and Chief Executive Officer has invested in certain of these LLCs. The equity method is used to account for the Company’s LLC investments. Income for the LLCs primarily reflects adjustments to the carrying values of investments in renewable energy projects to their determined fair values. The fair value adjustments are included in revenues for the LLCs. Expenses for the LLCs are not significant and are comprised of administrative and interest expenses. The Company received cash distributions from these investments totaling $1.6 million and $1.5 million for the three months ended March 31, 2017 and 2016, respectively.</td>
</tr>
</table>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.25in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0">
<tr style="vertical-align: top;">
<td style="width: 0px;"></td>
<td style="width: 0.25in;"><i>(b)</i></td>
<td style="text-align: justify;"><font style="color: #231f20;">The Company has held investments in bridge financing notes for renewable energy projects. The notes, all with affiliates of the Company’s largest shareholder, generally matured in less than one year and carried primarily variable rates of interest ranging from 7.0% to 15.0%. O</font>riginal discounts and commitment fees received were recognized over the terms of the notes under the effective interest method.</td>
</tr>
</table>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.25in; text-align: justify; color: #231f20; text-transform: none; text-indent: -0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0">
<tr style="vertical-align: top;">
<td style="width: 0px;"></td>
<td style="width: 0.25in;"><i>(c)</i></td>
<td style="text-align: justify;"><font style="color: #231f20;">The Company owns investments in limited partnerships that invest in concentrated portfolios of publicly-traded small cap equities, loans of middle market private equity sponsored companies, and equity tranches of collateralized loan obligations (CLOs). Income f</font>rom the partnerships is recognized under the equity method of accounting. The Company’s Corporate and Other segment held an investment in a limited partnership with a carrying value of $2.7 million at March 31, 2017. The Company recognized investment income of $68,000 and $92,000 on the investment for the three months ended March 31, 2017 and 2016, respectively. The Company’s Excess and Surplus Lines segment holds investments in limited partnerships of $21.4 million at March 31, 2017. Investment income of $314,000 and $64,000 was recognized on the investments for the three months ended March 31, 2017 and 2016, respectively. At March 31, 2017, the Company’s Excess and Surplus Lines segment has an outstanding commitment to invest another $1.0 million in a limited partnership that invests in loans of middle market private equity sponsored companies.</td>
</tr>
</table>
<div style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </div>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0">
<tr style="vertical-align: top;">
<td style="width: 0px;"></td>
<td style="width: 0.25in;"><font style="font-size: 10pt;"><i>(d)</i></font></td>
<td style="text-align: justify;"><font style="color: #231f20;">The Company holds $4.5 million of subordinated notes issued by a bank holding company. Interest on the notes, which mature on August 12, 2023, is fixed at 7.6% per annum. Interest income on the notes was $86,000 in both three months ended March 31, 2017 and 2016. The Company’s Chairman and Chief Executive Officer was previously the Lead Independent Director of the bank holding company and an investor in the bank holding company. Additionally, one of the Company’s directors was an investor in the bank holding company and is currently a lender to the bank holding company.</font></td>
</tr>
</table>
</div>
<div>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">March 31, 2017</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">December 31, 2016</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" nowrap="nowrap">
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-size: 8pt;"><b>Life</b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-size: 8pt;"><b>(Years)</b></font></p>
</td>
<td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap">
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-size: 8pt;"><b>Gross</b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-size: 8pt;"><b>Carrying</b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-size: 8pt;"><b>Amount</b></font></p>
</td>
<td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap">
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-size: 8pt;"><b>Accumulated</b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-size: 8pt;"><b>Amortization</b></font></p>
</td>
<td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap">
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-size: 8pt;"><b>Gross</b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-size: 8pt;"><b>Carrying</b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-size: 8pt;"><b>Amount</b></font></p>
</td>
<td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap">
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-size: 8pt;"><b>Accumulated</b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-size: 8pt;"><b>Amortization</b></font></p>
</td>
<td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-style: italic; font-weight: bold;" colspan="14" nowrap="nowrap"><font style="font-size: 8pt;">($ in thousands)</font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; font-weight: bold;">Intangible Assets</td>
<td> </td>
<td style="text-align: center;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="width: 734.44px;">Trademarks</td>
<td style="width:
21.11px;"> </td>
<td style="width: 252.22px; text-align: center;">Indefinite</td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;">$</td>
<td style="width: 210px; text-align: right;">22,200</td>
<td style="width: 21.11px; text-align: left;"> </td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;">$</td>
<td style="width: 210px; text-align: right;">–</td>
<td style="width: 21.11px; text-align: left;"> </td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;">$</td>
<td style="width: 210px; text-align: right;">22,200</td>
<td style="width: 21.11px; text-align: left;"> </td>
<td style="width: 21.11px;"> </td>
<td style="width: 20px; text-align: left;">$</td>
<td style="width: 208.88px; text-align: right;">–</td>
<td style="width: 20px; text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-bottom: 1pt;">Insurance licenses and authorities</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: center; padding-bottom: 1pt;">Indefinite</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">9,164</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">–</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">9,164</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">–</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -0.125in; padding-left: 0.125in;">Identifiable intangibles not subject to amortization</td>
<td> </td>
<td style="text-align: center;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">31,364</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">31,364</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td> </td>
<td> </td>
<td style="text-align: center;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-bottom: 1pt;">Broker relationships</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: center; padding-bottom: 1pt;">24.6</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">11,611</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">4,193</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">11,611</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">4,044</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -0.125in; padding-bottom: 1pt; padding-left: 0.125in;">Identifiable intangible assets subject to amortization</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: center; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">11,611</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">4,193</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left;
border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">11,611</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">4,044</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: center; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">42,975</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">4,193</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">42,975</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">4,044</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
</table>
</div>
<div>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 95%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Income <br />(Numerator)</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap">
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-size-adjust: none; font-stretch: normal;"><font style="font-size: 8pt;"><b>Weighted-Average</b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-size-adjust: none; font-stretch: normal;"><font style="font-size: 8pt;"><b>Common Shares</b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-size-adjust: none; font-stretch: normal;"><font style="font-size: 8pt;"><b>(Denominator)</b></font></p>
</td>
<td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap">
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-size-adjust: none; font-stretch: normal;"><font style="font-size: 8pt;"><b>Earnings</b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-size-adjust: none; font-stretch: normal;"><font style="font-size: 8pt;"><b>Per Share</b></font></p>
</td>
<td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-style: italic; font-weight: bold;" colspan="10" nowrap="nowrap"><font style="font-size: 8pt;">(in thousands, except per share data)</font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: -9.35pt; padding-left: 9.35pt; font-weight: bold;">Three months ended March 31, 2017</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="width: 1084.2px; text-indent: -9.35pt; padding-left: 9.35pt;">Basic</td>
<td style="width: 20px;"> </td>
<td style="width: 20px; text-align: left;">$</td>
<td style="width: 240px; text-align: right;">18,450</td>
<td style="width: 20px; text-align: left;"> </td>
<td style="width: 20px;"> </td>
<td style="width: 20px; text-align: left;"> </td>
<td style="width: 240px; text-align: right;">29,289,588</td>
<td style="width: 20px; text-align: left;"> </td>
<td style="width: 20px;"> </td>
<td style="width: 18.88px; text-align: left;">$</td>
<td style="width: 238.88px; text-align: right;">0.63</td>
<td style="width: 18.88px; text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: -9.35pt; padding-bottom: 1pt; padding-left: 9.35pt;">Common share equivalents</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">–</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">1,037,835</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(0.02</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-indent: -9.35pt; padding-bottom: 2.5pt; padding-left: 9.35pt;">Diluted</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">18,450</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">30,327,423</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style:
double;">0.61</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-indent: -9.35pt; padding-left: 9.35pt; font-weight: bold;">Three months ended March 31, 2016</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: -9.35pt; padding-left: 9.35pt;">Basic</td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;">12,837</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">28,953,008</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;">0.44</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-indent: -9.35pt; padding-bottom: 1pt; padding-left: 9.35pt;">Common share equivalents</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">–</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">789,244</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(0.01</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: -9.35pt; padding-bottom: 2.5pt; padding-left: 9.35pt;">Diluted</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">12,837</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">29,742,252</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">0.43</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
</table>
</div>
<div>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;">
<td style="text-align: right;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">Three Months Ended <br />March 31,</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">2017</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">2016</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-style: italic; font-weight: bold;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">(in thousands)</font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="width: 1540.87px; text-align: left; text-indent: -9.35pt; padding-left: 9.35pt;">Reserve for losses and loss adjustment expenses net of reinsurance recoverables at beginning of period</td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;">$</td>
<td style="width: 210px; text-align: right;">761,128</td>
<td style="width: 21.11px; text-align: left;"> </td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;">$</td>
<td style="width: 208.88px; text-align: right;">653,534</td>
<td style="width: 20px; text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 9.35pt;">Add: Incurred losses and loss adjustment expenses net of reinsurance:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 28.05pt;">Current year</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">108,783</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">78,173</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9.35pt; padding-bottom: 1pt; padding-left: 28.05pt;">Prior years</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(3,414</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(4,667</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 9.35pt;">Total incurred losses and loss and adjustment expenses</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">105,369</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">73,506</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 9.35pt;">Deduct: Loss and loss adjustment expense payments net of reinsurance:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 28.05pt;">Current year</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">3,698</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">1,944</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9.35pt; padding-bottom: 1pt; padding-left: 28.05pt;">Prior years</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">71,018</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">52,508</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9.35pt; padding-bottom: 1pt; padding-left: 9.35pt;">Total loss and loss adjustment expense payments</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">74,716</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">54,452</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 9.35pt;">Reserve for losses and loss adjustment expenses net of reinsurance recoverables at end of period</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">791,781</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">672,588</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9.35pt; padding-bottom: 1pt; padding-left: 9.35pt;">Add: Reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">188,782</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">141,739</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9.35pt; padding-bottom: 2.5pt; padding-left: 9.35pt;">Reserve for losses and loss adjustment expenses gross of reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">980,563</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">814,327</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
</table>
</div>
<div>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">Three Months Ended March 31,</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td style="text-align: center;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">2017</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">2016</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td style="text-align: center;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-style: italic; font-weight: bold;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">(in thousands)</font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td> </td>
<td> </td>
<td style="text-align: right;" colspan="2"> </td>
<td> </td>
<td> </td>
<td style="text-align: right;" colspan="2"> </td>
<td> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="width: 1553.33px; text-align: left;">Unrealized gains arising during the period, before U.S. income taxes</td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;">$</td>
<td style="width: 210px; text-align: right;">5,998</td>
<td style="width: 21.11px; text-align: left;"> </td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;">$</td>
<td style="width: 208.88px; text-align: right;">17,118</td>
<td style="width: 20px; text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-bottom: 1pt;">U.S. income taxes</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(1,636</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(930</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left;">Unrealized gains arising during the period, net of  U.S. income taxes</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">4,362</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">16,188</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left;">Less reclassification adjustment:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-left: 13.05pt;">Net realized investment gains</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">450</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">841</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 13.05pt;">U.S. income tax expenses</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(122</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(273</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -13.4pt; padding-bottom: 1pt; padding-left: 13.4pt;">Reclassification adjustment for investment gains realized in net income</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">328</td>
<td style="text-align: left; padding-bottom:
1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">568</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-bottom: 2.5pt;">Other comprehensive income</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">4,034</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">15,620</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
</table>
</div>
<div>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Excess and<br />Surplus<br />Lines</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Specialty<br />Admitted<br />Insurance</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Casualty<br />Reinsurance</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Corporate<br />and<br />Other</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Total</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-style: italic; font-weight: bold;" colspan="18" nowrap="nowrap"><font style="font-size: 8pt;">(in thousands)</font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="font-weight: bold;">Three Months Ended March 31, 2017</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="width: 734.44px; text-align: left;">Gross written premiums</td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;">$</td>
<td style="width: 210px; text-align: right;">108,995</td>
<td style="width: 21.11px; text-align: left;"> </td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;">$</td>
<td style="width: 210px; text-align: right;">72,464</td>
<td style="width: 21.11px; text-align: left;"> </td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;">$</td>
<td style="width: 210px; text-align: right;">42,720</td>
<td style="width: 21.11px; text-align: left;"> </td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;">$</td>
<td style="width: 210px; text-align: right;">–</td>
<td style="width: 21.11px; text-align: left;"> </td>
<td style="width: 21.11px;"> </td>
<td style="width: 20px; text-align: left;">$</td>
<td style="width: 208.88px; text-align: right;">224,179</td>
<td style="width: 20px; text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left;">Net earned premiums</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">93,849</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">16,253</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">44,585</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">154,687</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -12.6pt; padding-left: 12.6pt;">Underwriting profit of insurance segments</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">8,800</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">842</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">1,093</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align:
left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">10,735</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left;">Net investment income</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">3,183</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">636</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">7,124</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">5,790</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">16,733</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left;">Interest expense</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">2,123</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">2,123</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left;">Segment revenues</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">101,090</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">16,924</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">52,146</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">6,242</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">176,402</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left;">Segment goodwill</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">181,831</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">181,831</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left;">Segment assets</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">749,617</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">335,806</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">1,211,896</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">114,006</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">2,411,325</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="font-weight: bold;">Three Months Ended March 31, 2016</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="width: 734.44px; text-align: left;">Gross written premiums</td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;">$</td>
<td style="width: 210px; text-align: right;">82,108</td>
<td style="width: 21.11px; text-align: left;"> </td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;">$</td>
<td style="width: 210px; text-align: right;">28,687</td>
<td style="width: 21.11px; text-align: left;"> </td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;">$</td>
<td style="width: 210px; text-align: right;">22,276</td>
<td style="width: 21.11px; text-align: left;"> </td>
<td style="width: 21.11px;"> </td>
<td style="width: 21.11px; text-align: left;">$</td>
<td style="width: 210px; text-align: right;">–</td>
<td style="width: 21.11px; text-align:
left;"> </td>
<td style="width: 21.11px;"> </td>
<td style="width: 20px; text-align: left;">$</td>
<td style="width: 208.88px; text-align: right;">133,071</td>
<td style="width: 20px; text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left;">Net earned premiums</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">65,505</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">11,405</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">40,220</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">117,130</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -12.6pt; padding-left: 12.6pt;">Underwriting profit of insurance segments</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">9,204</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">475</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">334</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">10,013</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left;">Net investment income</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">3,286</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">611</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">6,227</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">1,148</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">11,272</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left;">Interest expense</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">2,174</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">2,174</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left;">Segment revenues</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">71,790</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">12,047</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">46,308</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">1,184</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">131,329</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left;">Segment goodwill</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">181,831</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">181,831</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left;">Segment assets</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">692,517</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">190,515</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">1,121,576</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">97,469</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">2,102,077</td>
<td style="text-align: left;"> </td>
</tr>
</table>
</div>
<div>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 95%; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-left: 0.25in; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;">
<td style="text-align: center;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">Three Months Ended March 31,</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td style="text-align: center;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">2017</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">2016</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td style="text-align: center;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-style: italic; font-weight: bold;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">(in thousands)</font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left;">Underwriting profit of the insurance segments:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="width: 1322.33px; text-align: left; padding-left: 0.3in;">Excess and Surplus Lines</td>
<td style="width: 20px;"> </td>
<td style="width: 20px; text-align: left;">$</td>
<td style="width: 232.22px; text-align: right;">8,800</td>
<td style="width: 18.88px; text-align: left;"> </td>
<td style="width: 18.88px;"> </td>
<td style="width: 18.88px; text-align: left;">$</td>
<td style="width: 231.11px; text-align: right;">9,204</td>
<td style="width: 18.88px; text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-left: 0.3in;">Specialty Admitted Insurance</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">842</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">475</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 0.3in;">Casualty Reinsurance</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">1,093</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">334</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left;">Total underwriting profit of insurance segments</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">10,735</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">10,013</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-bottom: 1pt;">Other operating expenses of the Corporate and Other segment</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(6,461</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(5,252</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left;">Underwriting profit</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">4,274</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">4,761</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left;">Net investment income</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">16,733</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align:
right;">11,272</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left;">Net realized investment gains</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">1,047</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">547</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left;">Amortization of intangible assets</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(149</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(149</td>
<td style="text-align: left;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left;">Other income and expenses</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">200</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">76</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-bottom: 1pt;">Interest expense</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(2,123</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(2,174</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-bottom: 2.5pt;">Income before taxes</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">19,982</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">14,333</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
</table>
</div>
<div>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 95%; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-left: 0.25in; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;">
<td style="text-align: center;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">Three Months Ended March 31,</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td style="text-align: center;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">2017</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">2016</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td style="text-align: center;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-style: italic; font-weight: bold;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">(in thousands)</font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="width: 1327.12px; text-align: justify; text-indent: -0.25in; padding-left: 0.25in;">Amortization of policy acquisition costs</td>
<td style="width: 20px;"> </td>
<td style="width: 20px; text-align: left;">$</td>
<td style="width: 232.22px; text-align: right;">27,638</td>
<td style="width: 18.88px; text-align: left;"> </td>
<td style="width: 18.88px;"> </td>
<td style="width: 18.88px; text-align: left;">$</td>
<td style="width: 231.11px; text-align: right;">23,081</td>
<td style="width: 18.88px; text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: justify; text-indent: -0.25in; padding-left: 0.25in;">Other underwriting expenses of the operating segments</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">14,794</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">12,846</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: justify; padding-bottom: 1pt;">Other operating expenses of the Corporate and Other segment</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">6,461</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">5,252</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-indent: -0.25in; padding-bottom: 2.5pt; padding-left: 0.25in;">Total</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">48,893</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">41,179</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
</table>
</div>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; text-indent: 0.25in; font-stretch: normal;">Assets measured at fair value on a recurring basis as of March 31, 2017 are summarized below:</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; text-indent: 0.25in; font-stretch: normal;"> </p>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 1333px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal;" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;">
<td nowrap="nowrap" style="text-indent: 0px; padding-left: 0px;"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap" style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="14"><font style="font-size: 8pt;">Fair Value Measurements Using</font></td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap" style="text-indent: 0px; padding-left: 0px;"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap" style="font-weight: bold;"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap" style="text-align: center; font-weight: bold;" colspan="2"><font style="font-size: 8pt;">Quoted Prices<br />in Active<br />Markets for<br />Identical<br />Assets</font></td>
<td nowrap="nowrap" style="font-weight: bold;"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap" style="font-weight: bold;"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap" style="text-align: center; font-weight: bold;" colspan="2"><font style="font-size: 8pt;">Significant<br />Other<br />Observable<br />Inputs</font></td>
<td nowrap="nowrap" style="font-weight: bold;"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap" style="font-weight: bold;"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap" style="text-align: center; font-weight: bold;" colspan="2"><font style="font-size: 8pt;">Significant<br />Unobservable<br />Inputs</font></td>
<td nowrap="nowrap" style="font-weight: bold;"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap" style="text-align: center;" colspan="2"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap" style="text-indent: 0px; padding-left: 0px;"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap" style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">Level 1</font></td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap" style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">Level 2</font></td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap" style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">Level 3</font></td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap" style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">Total</font></td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap" style="text-indent: 0px; padding-left: 0px;"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap" style="font-style: italic; font-weight: bold;"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap" style="text-align: center; font-style: italic; font-weight: bold;" colspan="14"><font style="font-size: 8pt;">(in thousands)</font></td>
<td nowrap="nowrap" style="font-style: italic; font-weight: bold;"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: 0px; padding-left: 0px;">Available-for-sale securities:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: 0px; padding-left: 0px;">Fixed maturity securities:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="width: 628px; text-align: left; text-indent: 0px; padding-left: 0.125in;">State and municipal</td>
<td style="width: 14px;"> </td>
<td style="width: 14px; text-align: left;">$</td>
<td style="width: 134px; text-align: right;">–</td>
<td style="width: 14px; text-align: left;"> </td>
<td style="width: 14px;"> </td>
<td style="width: 13px; text-align: left;">$</td>
<td style="width: 133px; text-align: right;">111,209</td>
<td style="width: 13px; text-align: left;"> </td>
<td style="width: 13px;"> </td>
<td style="width: 13px; text-align: left;">$</td>
<td style="width: 133px; text-align: right;">–</td>
<td style="width: 13px; text-align: left;"> </td>
<td style="width: 13px;"> </td>
<td style="width: 13px; text-align: left;">$</td>
<td style="width: 133px; text-align: right;">111,209</td>
<td style="width: 13px; text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: 0px; padding-left: 0.125in;">Residential mortgage-backed</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">143,462</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">143,462</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: 0px; padding-left: 0.125in;">Corporate</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">380,101</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">380,101</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-left: 0.25in;">Commercial mortgage and asset-backed</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">167,197</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">5,000</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">172,197</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-left: 0.25in;">Obligations of U.S. government corporations and agencies</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">62,554</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">62,554</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-left: 0.25in;">U.S. Treasury securities and obligations guaranteed by the U.S. government</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">69,541</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">627</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">70,168</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-left: 0.25in;">Redeemable preferred stock</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">–</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">1,996</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">–</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">1,996</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: 0px; padding-left: 0px;">Total fixed maturity securities</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">69,541</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">867,146</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">5,000</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">941,687</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: 0px; padding-left: 0px;">Equity securities:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-left: 0.25in;">Preferred stock</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">67,104</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">67,104</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-left: 0.25in;">Common stock</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">11,629</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">734</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">–</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">12,363</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: 0px; padding-bottom: 1pt; padding-left: 0px;">Total equity securities</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">11,629</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">67,838</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">–</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">79,467</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: 0px; padding-bottom: 2.5pt; padding-left: 0px;">Total available-for-sale securities</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">81,170</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">934,984</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">5,000</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">1,021,154</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: 0px; padding-left: 0px;">Trading securities:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-left: 0.25in;">Fixed maturity securities</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">1,250</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">3,816</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">–</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">5,066</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: 0px; padding-bottom: 2.5pt; padding-left: 0px;">Short-term investments</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">1,000</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">52,361</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">–</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">53,361</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
</table>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; font-stretch: normal;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; font-stretch: normal;"> </p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; text-indent: 0.25in; font-stretch: normal;">Assets measured at fair value on a recurring basis as of December 31, 2016 are summarized below:</p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; text-indent: 0.25in; font-stretch: normal;"> </p>
<p></p>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 1333px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal;" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap" style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="14"><font style="font-size: 8pt;">Fair Value Measurements Using</font></td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap" style="font-weight: bold;"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap" style="text-align: center; font-weight: bold;" colspan="2"><font style="font-size: 8pt;">Quoted Prices<br />in Active<br />Markets for<br />Identical<br />Assets</font></td>
<td nowrap="nowrap" style="font-weight: bold;"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap" style="font-weight: bold;"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap" style="text-align: center; font-weight: bold;" colspan="2"><font style="font-size: 8pt;">Significant<br />Other<br />Observable<br />Inputs</font></td>
<td nowrap="nowrap" style="font-weight: bold;"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap" style="font-weight: bold;"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap" style="text-align: center; font-weight: bold;" colspan="2"><font style="font-size: 8pt;">Significant<br />Unobservable<br />Inputs</font></td>
<td nowrap="nowrap" style="font-weight: bold;"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap" style="text-align: center;" colspan="2"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap" style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">Level 1</font></td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap" style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">Level 2</font></td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap" style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">Level 3</font></td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap" style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">Total</font></td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap" style="font-style: italic; font-weight: bold;"><font style="font-size: 8pt;"> </font></td>
<td nowrap="nowrap" style="text-align: center; font-style: italic; font-weight: bold;" colspan="14"><font style="font-size: 8pt;">(in thousands)</font></td>
<td nowrap="nowrap" style="font-style: italic; font-weight: bold;"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-left: 1pt;">Available-for-sale securities:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-left: 1pt;">Fixed maturity securities:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="width: 616px; text-align: left; padding-left: 0.25in;">State and municipal</td>
<td style="width: 14px;"> </td>
<td style="width: 14px; text-align: left;">$</td>
<td style="width: 134px; text-align: right;">–</td>
<td style="width: 14px; text-align: left;"> </td>
<td style="width: 14px;"> </td>
<td style="width: 13px; text-align: left;">$</td>
<td style="width: 133px; text-align: right;">105,841</td>
<td style="width: 13px; text-align: left;"> </td>
<td style="width: 13px;"> </td>
<td style="width: 13px; text-align: left;">$</td>
<td style="width: 133px; text-align: right;">–</td>
<td style="width: 13px; text-align: left;"> </td>
<td style="width: 13px;"> </td>
<td style="width: 13px; text-align: left;">$</td>
<td style="width: 133px; text-align: right;">105,841</td>
<td style="width: 13px; text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-left: 0.25in;">Residential mortgage-backed</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">150,798</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">150,798</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-left: 0.25in;">Corporate</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">378,448</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">378,448</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-left: 0.25in;">Commercial mortgage and <br />asset-backed</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">163,047</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">5,000</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">168,047</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-left: 0.25in;">Obligations of U.S. government corporations and agencies</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">65,014</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">65,014</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-left: 0.25in;">U.S. Treasury securities and obligations guaranteed by the U.S. government</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">70,465</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">655</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">71,120</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-left: 0.25in;">Redeemable preferred stock</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">–</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">1,809</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">–</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">1,809</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-left: 1pt;">Total fixed maturity securities</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">70,465</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">865,612</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">5,000</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">941,077</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-left: 1pt;">Equity securities:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-left: 0.25in;">Preferred stock</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">64,827</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">–</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">64,827</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-left: 0.25in;">Common stock</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">10,840</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">734</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">–</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">11,574</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 1pt;">Total equity securities</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">10,840</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">65,561</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">–</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">76,401</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 1pt;">Total available-for-sale securities</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">81,305</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">931,173</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">5,000</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">1,017,478</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-left: 1pt;">Trading securities:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-left: 0.25in;">Fixed maturity securities</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">1,250</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">3,813</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">–</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">5,063</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; padding-bottom: 2.5pt; padding-left: 1pt; font-family: 'times new roman', times, serif; font-size: 13.33px; font-style: normal; font-weight: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">Short-term investments</td>
<td style="color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; padding-bottom: 2.5pt; font-family: 'times new roman', times, serif; font-size: 13.33px; font-style: normal; font-weight: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;"> </td>
<td style="text-align: left; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; font-family: 'times new roman', times, serif; font-size: 13.33px; font-style: normal; font-weight: normal; word-spacing: 0px; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double; white-space: normal; orphans: 2; widows: 2; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">$</td>
<td style="text-align: right; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; font-family: 'times new roman', times, serif; font-size: 13.33px; font-style: normal; font-weight: normal; word-spacing: 0px; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double; white-space: normal; orphans: 2; widows: 2; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">1,100</td>
<td style="text-align: left; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; padding-bottom: 2.5pt; font-family: 'times new roman', times, serif; font-size: 13.33px; font-style: normal; font-weight: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;"> </td>
<td style="color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; padding-bottom: 2.5pt; font-family: 'times new roman', times, serif; font-size: 13.33px; font-style: normal; font-weight: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;"> </td>
<td style="text-align: left; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; font-family: 'times new roman', times, serif; font-size: 13.33px; font-style: normal; font-weight: normal; word-spacing: 0px; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double; white-space: normal; orphans: 2; widows: 2; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">$</td>
<td style="text-align: right; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; font-family: 'times new roman', times, serif; font-size: 13.33px; font-style: normal; font-weight: normal; word-spacing: 0px; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double; white-space: normal; orphans: 2; widows: 2; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">49,744</td>
<td style="text-align: left; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; padding-bottom: 2.5pt; font-family: 'times new roman', times, serif; font-size: 13.33px; font-style: normal; font-weight: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;"> </td>
<td style="color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; padding-bottom: 2.5pt; font-family: 'times new roman', times, serif; font-size: 13.33px; font-style: normal; font-weight: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;"> </td>
<td style="text-align: left; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; font-family: 'times new roman', times, serif; font-size: 13.33px; font-style: normal; font-weight: normal; word-spacing: 0px; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double; white-space: normal; orphans: 2; widows: 2; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">$</td>
<td style="text-align: right; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; font-family: 'times new roman', times, serif; font-size: 13.33px; font-style: normal; font-weight: normal; word-spacing: 0px; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double; white-space: normal; orphans: 2; widows: 2; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">–</td>
<td style="text-align: left; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; padding-bottom: 2.5pt; font-family: 'times new roman', times, serif; font-size: 13.33px; font-style: normal; font-weight: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;"> </td>
<td style="color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; padding-bottom: 2.5pt; font-family: 'times new roman', times, serif; font-size: 13.33px; font-style: normal; font-weight: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;"> </td>
<td style="text-align: left; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; font-family: 'times new roman', times, serif; font-size: 13.33px; font-style: normal; font-weight: normal; word-spacing: 0px; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double; white-space: normal; orphans: 2; widows: 2; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">$</td>
<td style="text-align: right; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; font-family: 'times new roman', times, serif; font-size: 13.33px; font-style: normal; font-weight: normal; word-spacing: 0px; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double; white-space: normal; orphans: 2; widows: 2; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">50,844</td>
</tr>
</table>
<div>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 90%; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-left: 0.25in; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="14" nowrap="nowrap"><font style="font-size: 8pt;">Fair Value Measurements Using</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td style="text-align: center; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap">
<p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-size: 8pt;"><b>Quoted Prices</b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-size: 8pt;"><b>In Active</b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-size: 8pt;"><b>Markets for</b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-size: 8pt;"><b>Identical Assets</b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-size: 8pt;"><b>Level 1</b></font></p>
</td>
<td style="text-align: center; padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap">
<p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-size: 8pt;"><b>Significant</b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-size: 8pt;"><b>Other</b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-size: 8pt;"><b>Observable</b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-size: 8pt;"><b>Inputs</b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-size: 8pt;"><b>Level 2</b></font></p>
</td>
<td style="text-align: center; padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap">
<p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-size: 8pt;"><b>Significant</b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-size: 8pt;"><b>Unobservable</b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-size: 8pt;"><b>Inputs</b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-size: 8pt;"><b>Level 3</b></font></p>
</td>
<td style="text-align: center; padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Total</font></td>
<td style="text-align: center; padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-style: italic; font-weight: bold;" colspan="14" nowrap="nowrap"><font style="font-size: 8pt;">(in thousands)</font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: -9.35pt; padding-left: 9.35pt; font-weight: bold;">March 31, 2017</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="width: 874.2px; text-align: left; text-indent: -9.35pt; padding-bottom: 2.5pt; padding-left:
9.35pt;">Bank loan participations held-for-investment</td>
<td style="width: 18.88px; padding-bottom: 2.5pt;"> </td>
<td style="width: 18.88px; text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="width: 185.55px; text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">–</td>
<td style="width: 18.88px; text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="width: 18.88px; padding-bottom: 2.5pt;"> </td>
<td style="width: 18.88px; text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="width: 185.55px; text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">–</td>
<td style="width: 17.77px; text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="width: 17.77px; padding-bottom: 2.5pt;"> </td>
<td style="width: 17.77px; text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="width: 184.44px; text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">2,668</td>
<td style="width: 17.77px; text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="width: 17.77px; padding-bottom: 2.5pt;"> </td>
<td style="width: 17.77px; text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="width: 184.44px; text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">2,668</td>
<td style="width: 17.77px; text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-indent: -9.35pt; padding-left: 9.35pt; font-weight: bold;">December 31, 2016</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9.35pt; padding-bottom: 2.5pt; padding-left: 9.35pt;">Bank loan participations held-for-investment</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">–</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">–</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">4,849</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">4,849</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
</table>
</div>
<div>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 95%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">March 31, 2017</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">December 31, 2016</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Carrying <br />Value</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Fair Value</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Carrying <br />Value</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Fair Value</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-style: italic; font-weight: bold;" colspan="14" nowrap="nowrap"><font style="font-size: 8pt;">(in thousands)</font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td> </td>
<td> </td>
<td style="text-align: justify;" colspan="2"> </td>
<td> </td>
<td> </td>
<td style="text-align: justify;" colspan="2"> </td>
<td> </td>
<td> </td>
<td style="text-align: justify;" colspan="2"> </td>
<td> </td>
<td> </td>
<td style="text-align: justify;" colspan="2"> </td>
<td> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: -9.35pt; padding-left: 9.35pt; font-weight: bold;">Assets</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-indent: -9.35pt; padding-left: 9.35pt;">Available-for-sale:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="width: 934.44px; text-align: left; text-indent: -9.35pt; padding-left: 17.5pt;">Fixed maturity securities</td>
<td style="width: 20px;"> </td>
<td style="width: 20px; text-align: left;">$</td>
<td style="width: 200px; text-align: right;">941,687</td>
<td style="width: 20px; text-align: left;"> </td>
<td style="width: 20px;"> </td>
<td style="width: 20px; text-align: left;">$</td>
<td style="width: 200px; text-align: right;">941,687</td>
<td style="width: 20px; text-align: left;"> </td>
<td style="width: 20px;"> </td>
<td style="width: 20px; text-align: left;">$</td>
<td style="width: 200px; text-align: right;">941,077</td>
<td style="width: 20px; text-align: left;"> </td>
<td style="width: 18.88px;"> </td>
<td style="width: 18.88px; text-align: left;">$</td>
<td style="width: 198.88px; text-align: right;">941,077</td>
<td style="width: 18.88px; text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 17.5pt;">Equity securities</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">79,467</td>
<td
style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">79,467</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">76,401</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">76,401</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: -9.35pt; padding-left: 9.35pt;">Trading:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 17.5pt;">Fixed maturity securities</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">5,066</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">5,066</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">5,063</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">5,063</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 9.35pt;">Bank loan participations held-for-investment</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">224,224</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">223,676</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">203,526</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">203,123</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 9.35pt;">Cash and cash equivalents</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">94,224</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">94,224</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">109,784</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">109,784</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 9.35pt;">Short-term investments</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">53,361</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">53,361</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">50,844</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">50,844</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 9.35pt;">Other invested assets – notes receivable</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">4,500</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">5,922</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">4,500</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">6,008</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: -9.35pt; padding-left: 9.35pt;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-indent: -9.35pt; padding-left: 9.35pt; font-weight: bold;">Liabilities</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 9.35pt;">Senior debt</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">88,300</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">84,440</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">88,300</td>
<td style="text-align: left;"> </td>
<td> </td>
<td
style="text-align: left;"> </td>
<td style="text-align: right;">85,404</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 9.35pt;">Junior subordinated debt</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">104,055</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">102,681</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">104,055</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">99,397</td>
<td style="text-align: left;"> </td>
</tr>
</table>
</div>
<div>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 95%; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-left: 0.25in; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="14" nowrap="nowrap"><font style="font-size: 8pt;">Three Months Ended March 31,</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">2017</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">2016</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Shares</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Weighted- <br />Average <br />Exercise <br />Price</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Shares</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Weighted- <br />Average <br />Exercise <br />Price</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: -9.35pt; padding-left: 9.35pt;">Outstanding:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="width: 911px; text-indent: 0in; padding-left: 11.75pt;">Beginning of period</td>
<td style="width: 20px;"> </td>
<td style="width: 20px; text-align: left;"> </td>
<td style="width: 193.33px; text-align: right;">2,234,699</td>
<td style="width: 20px; text-align: left;"> </td>
<td style="width: 20px;"> </td>
<td style="width: 20px; text-align: left;">$</td>
<td style="width: 193.33px; text-align: right;">22.84</td>
<td style="width: 18.88px; text-align: left;"> </td>
<td style="width: 18.88px;"> </td>
<td style="width: 18.88px; text-align: left;"> </td>
<td style="width: 192.22px; text-align: right;">2,058,085</td>
<td style="width: 18.88px; text-align: left;"> </td>
<td style="width: 18.88px;"> </td>
<td style="width: 18.88px; text-align: left;">$</td>
<td style="width: 192.22px; text-align: right;">18.11</td>
<td style="width: 18.88px; text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: 0in; padding-left: 20.75pt;">Granted</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">195,509</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;">42.17</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">706,203</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;">32.07</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-indent: 0in; padding-left: 20.75pt;">Exercised</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(97,211</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;">17.23</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(80,616</td>
<td style="text-align: left;">)</td>
<td> </td>
<td
style="text-align: left;">$</td>
<td style="text-align: right;">16.52</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: 0in; padding-bottom: 1pt; padding-left: 20.75pt;">Forfeited</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(50,062</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; padding-bottom: 1pt;">$</td>
<td style="text-align: right; padding-bottom: 1pt;">27.97</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(3,362</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; padding-bottom: 1pt;">$</td>
<td style="text-align: right; padding-bottom: 1pt;">21.00</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-indent: 0in; padding-bottom: 2.5pt; padding-left: 11.75pt;">End of period</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">2,282,935</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; padding-bottom: 2.5pt;">$</td>
<td style="text-align: right; padding-bottom: 2.5pt;">24.62</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">2,680,310</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; padding-bottom: 2.5pt;">$</td>
<td style="text-align: right; padding-bottom: 2.5pt;">21.83</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: 0in; padding-bottom: 2.5pt; padding-left: 11.75pt;">Exercisable, end of period</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">1,334,756</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; padding-bottom: 2.5pt;">$</td>
<td style="text-align: right; padding-bottom: 2.5pt;">20.47</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">1,165,401</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; padding-bottom: 2.5pt;">$</td>
<td style="text-align: right; padding-bottom: 2.5pt;">16.81</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
</table>
</div>
<div>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 90%; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-left: 0.5in; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;">
<td style="text-indent: 0px; padding-left: 0px;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Shares</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Weighted- <br />Average <br />Grant Date <br />Fair Value</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: 0px; padding-left: 0px; font-weight: bold;">March 31, 2017</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="width: 1304.44px; text-indent: 0px; padding-left: 0px;">Unvested, beginning of period</td>
<td style="width: 17.77px;"> </td>
<td style="width: 17.77px; text-align: left;"> </td>
<td style="width: 176.66px; text-align: right;">196,800</td>
<td style="width: 17.77px; text-align: left;"> </td>
<td style="width: 17.77px;"> </td>
<td style="width: 17.77px; text-align: left;">$</td>
<td style="width: 175.55px; text-align: right;">24.38</td>
<td style="width: 16.66px; text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: 0px; padding-left: 0px;">Granted</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">117,879</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;">42.17</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-indent: 0px; padding-left: 0px;">Vested</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(37,485</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;">32.07</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: 0px; padding-bottom: 1pt; padding-left: 0px;">Forfeited</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(19,743</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; padding-bottom: 1pt;">$</td>
<td style="text-align: right; padding-bottom: 1pt;">24.06</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-indent: 0px; padding-bottom: 2.5pt; padding-left: 0px;">Unvested, end of period</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">257,451</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; padding-bottom: 2.5pt;">$</td>
<td style="text-align: right; padding-bottom: 2.5pt;">31.43</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: 0px; padding-left: 0px;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-indent: 0px; padding-left: 0px; font-weight: bold;">March 31, 2016</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-indent: 0px; padding-left: 0px;">Unvested, beginning of period</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">234,922</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;">21.00</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-indent: 0px; padding-bottom: 1pt; padding-left: 0px;">Granted</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">58,663</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; padding-bottom: 1pt;">$</td>
<td style="text-align: right; padding-bottom: 1pt;">32.07</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color:
#cceeff;">
<td style="text-indent: 0px; padding-bottom: 2.5pt; padding-left: 0px;">Unvested, end of period</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">293,585</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; padding-bottom: 2.5pt;">$</td>
<td style="text-align: right; padding-bottom: 2.5pt;">23.21</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
</table>
</div>
<div>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 90%; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-left: 0.5in; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;">
<td style="text-align: center;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">Three Months Ended March 31,</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td style="text-align: center;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">2017</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">2016</font></td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td style="text-align: center;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
<td style="text-align: center; font-style: italic; font-weight: bold;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">(in thousands)</font></td>
<td style="font-style: italic; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;"> </font></td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="width: 1280.45px; text-align: justify; text-indent: -0.25in; padding-left: 0.25in;">Share based compensation expense</td>
<td style="width: 17.77px;"> </td>
<td style="width: 17.77px; text-align: left;">$</td>
<td style="width: 176.66px; text-align: right;">1,794</td>
<td style="width: 17.77px; text-align: left;"> </td>
<td style="width: 17.77px;"> </td>
<td style="width: 17.77px; text-align: left;">$</td>
<td style="width: 175.55px; text-align: right;">1,189</td>
<td style="width: 16.66px; text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: justify; text-indent: -0.25in; padding-left: 0.25in;">U.S. tax benefit on share based compensation expense</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">469</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">336</td>
<td style="text-align: left;"> </td>
</tr>
</table>
</div>
6
27100000
31100000
1014765000
940212000
74553000
101793000
152703000
379727000
167967000
64823000
71174000
2025000
1012893000
938362000
74531000
107019000
145415000
379076000
172092000
62493000
70242000
2025000
16300000
11797000
4503000
5032000
1070000
4382000
906000
276000
131000
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11928000
6240000
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734000
5000000
5000000
11574000
865612000
105841000
150798000
378448000
163047000
65014000
655000
1809000
65561000
64827000
64827000
81305000
931173000
5000000
1017478000
105841000
150798000
378448000
168047000
65014000
71120000
1809000
941077000
76401000
1021154000
941687000
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111209000
143462000
380101000
172197000
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1996000
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11629000
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734000
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5000000
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143462000
380101000
167197000
62554000
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1996000
67838000
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5000000
1021154000
111209000
143462000
380101000
172197000
62554000
70168000
1996000
941687000
79467000
5600000
5000000
98952000
232153000
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115255000
145415000
172092000
2025000
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233770000
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119020000
143462000
172197000
1996000
492187000
470842000
21345000
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48989000
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28964000
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156461000
52815000
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51941000
1996000
9100000
8029000
1071000
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1548000
4212000
799000
85000
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216000
7087000
6926000
161000
811000
1545000
3519000
713000
130000
179000
29000
54560000
48002000
6558000
32330000
8477000
7195000
46263000
39264000
6999000
31113000
3402000
4749000
4487000
2903000
1584000
1427000
1449000
27000
2820000
1677000
1143000
1445000
231000
1000
546747000
518844000
27903000
28398000
125572000
208318000
55185000
50573000
48989000
1809000
487990000
471324000
16666000
28964000
118854000
159863000
57564000
52142000
51941000
1996000
13587000
10932000
2655000
984000
2975000
5661000
826000
85000
185000
216000
9907000
8603000
1304000
811000
2990000
3750000
714000
130000
179000
29000
842000
338000
409000
1000
296000
60000
1136000
352000
539000
2000
1000
1167000
199000
6062000
92000
64000
68000
314000
156
0.994
1400000
4
5
1
3
4
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<p style="text-align: justify; widows: 2; text-transform: none; text-indent: 0px; margin: 0px; font: 10pt 'times new roman', times, serif; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; word-spacing: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b>Adopted Accounting Standards</b></p>
<p style="text-align: justify; widows: 2; text-transform: none; text-indent: 0.25in; margin: 0px; font: 10pt 'times new roman', times, serif; white-space: normal; orphans: 2; letter-spacing: normal; color: #231f20; word-spacing: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p>
<p style="text-align: justify; widows: 2; text-transform: none; text-indent: 0.25in; margin: 0px; font: 10pt 'times new roman', times, serif; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; word-spacing: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="color: #231f20;">Effective January 1, 2017, the Company adopted Accounting Standards Update (“ASU”) 2016-09, <em>Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting </em>using the prospective method. The guidance requires that all tax effects related to share-based payments be made through the income statement at the time of settlement as opposed to excess tax benefits being recognized in additional paid-in capital under the previous guidance</font>. The <font style="color: #231f20;">ASU also removes the requirement to delay recognition of a tax benefit until it reduces current taxes payable. Additionally, all tax related cash flows resulting from share-based payments are now reported as operating activities on the statement of cash flows, a change from the previous requirement to present tax benefits as an inflow from financing activities and an outflow from operating activities. For the three months ended March 31, 2016, net cash provided by operating activities increased by $292,000 and net cash used in financing activities was increased by $292,000 for the adoption of ASU 2016-09. The Company has elected to recognize forfeitures as they occur in accordance with ASU 2016-09. The adoption of ASU 2016-09 did not materially impact the Company’s consolidated income statements.</font></p>
The Company's Corporate and Other segment owns equity interests ranging from 2.7% to 33.3% in various LLCs whose principal objective is capital appreciation and income generation from owning and operating renewable energy production facilities (wind and solar). The LLCs are managed by an affiliate of the Company's largest shareholder and the Company's Chairman and Chief Executive Officer has invested in certain of these LLCs. The equity method is used to account for the Company's LLC investments. Income for the LLCs primarily reflects adjustments to the carrying values of investments in renewable energy projects to their determined fair values. The fair value adjustments are included in revenues for the LLCs. Expenses for the LLCs are not significant and are comprised of administrative and interest expenses. The Company received cash distributions from these investments totaling $1.6 million and $1.5 million for the three months ended March 31, 2017 and 2016, respectively.
The Company has held investments in bridge financing notes for renewable energy projects. The notes, all with affiliates of the Company's largest shareholder, generally matured in less than one year and carried primarily variable rates of interest ranging from 7.0% to 15.0%. Original discounts and commitment fees received were recognized over the terms of the notes under the effective interest method.
The Company owns investments in limited partnerships that invest in concentrated portfolios of publicly-traded small cap equities, loans of middle market private equity sponsored companies, and equity tranches of collateralized loan obligations (CLOs). Income from the partnerships is recognized under the equity method of accounting. The Company's Corporate and Other segment held an investment in a limited partnership with a carrying value of $2.7 million at March 31, 2017. The Company recognized investment income of $68,000 and $92,000 on the investment for the three months ended March 31, 2017 and 2016, respectively. The Company's Excess and Surplus Lines segment holds investments in limited partnerships of $21.4 million at March 31, 2017. Investment income of $314,000 and $64,000 was recognized on the investments for the three months ended March 31, 2017 and 2016, respectively. At March 31, 2017, the Company's Excess and Surplus Lines segment has an outstanding commitment to invest another $1.0 million in a limited partnership that invests in loans of middle market private equity sponsored companies.
The Company holds $4.5 million of subordinated notes issued by a bank holding company. Interest on the notes, which mature on August 12, 2023, is fixed at 7.6% per annum. Interest income on the notes was $86,000 in both three months ended March 31, 2017 and 2016. The Company's Chairman and Chief Executive Officer was previously the Lead Independent Director of the bank holding company and an investor in the bank holding company. Additionally, one of the Company's directors was an investor in the bank holding company and is currently a lender to the bank holding company.
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