RLI (RLI) 10-Q 28 Apr 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	Apr. 20, 2020
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2020
Entity File Number	001-09463
Entity Registrant Name	RLI Corp
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	37-0889946
Entity Address, Address Line One	9025 North Lindbergh Drive
Entity Address, City or Town	Peoria
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	61615
City Area Code	309
Local Phone Number	692-1000
Title of 12(b) Security	Common Stock $0.01 par value
Trading Symbol	RLI
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		44,922,656
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Entity Central Index Key	0000084246
Amendment Flag	false

Condensed Consolidated Statemen

Condensed Consolidated Statements of Earnings and Comprehensive Earnings - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Condensed Consolidated Statements of Earnings and Comprehensive Earnings
Net premiums earned	$ 215,582	$ 204,689
Net investment income	17,778	16,565
Net realized gains	15,152	9,068
Net unrealized gains (losses) on equity securities	(130,395)	33,498
Consolidated revenue	118,117	263,820
Losses and settlement expenses	111,021	94,297
Policy acquisition costs	72,941	71,292
Insurance operating expenses	14,381	16,667
Interest expense on debt	1,897	1,861
General corporate expenses	1,755	3,276
Total expenses	201,995	187,393
Equity in earnings of unconsolidated investees	4,514	5,314
Earnings (loss) before income taxes	(79,364)	81,741
Income tax expense:
Income tax expense (benefit)	(18,097)	16,268
Net earnings (loss)	(61,267)	65,473
Other comprehensive earnings (loss), net of tax	(13,031)	29,301
Comprehensive earnings (loss)	$ (74,298)	$ 94,774
Basic:
Net earnings (loss) per share (in dollars per share)	$ (1.36)	$ 1.47
Comprehensive earnings (loss) per share (in dollars per share)	(1.65)	2.13
Diluted:
Net earnings (loss) per share (in dollars per share)	(1.36)	1.46
Comprehensive earnings (loss) per share (in dollars per share)	$ (1.65)	$ 2.11
Weighted average number of common shares outstanding
Basic (in shares)	44,920	44,536
Diluted (in shares)	44,920	44,887

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Investments:
Available-for-sale, at fair value (amortized cost of $1,912,851 and allowance for credit losses of $878 at 3/31/20) (amortized cost of $1,915,278 and allowance for credit losses of $0 at 12/31/19)	$ 1,963,585	$ 1,983,086
Equity securities, at fair value (cost - $272,152 at 3/31/20 and $262,131 at 12/31/19)	356,403	460,630
Other invested assets	53,562	70,441
Cash	42,701	46,203
Total investments and cash	2,416,251	2,560,360
Accrued investment income	14,944	14,587
Premiums and reinsurance balances receivable, net of allowances for uncollectible amounts of $16,948 at 3/31/20 and $16,682 at 12/31/19	154,084	160,369
Ceded unearned premium	88,789	93,656
Reinsurance balances recoverable on unpaid losses and settlement expenses, net of allowances for uncollectible amounts of $8,539 at 3/31/20 and $9,402 at 12/31/19	366,441	384,517
Deferred policy acquisition costs	84,208	85,044
Property and equipment, at cost, net of accumulated depreciation of $64,322 at 3/31/20 and $62,703 at 12/31/19	52,741	53,121
Investment in unconsolidated investees	108,081	103,836
Goodwill and intangibles	54,025	54,127
Other assets	39,047	36,104
TOTAL ASSETS	3,378,611	3,545,721
Liabilities:
Unpaid losses and settlement expenses	1,574,760	1,574,352
Unearned premiums	516,867	540,213
Reinsurance balances payable	30,865	25,691
Funds held	80,333	83,358
Income taxes - deferred	26,546	56,727
Bonds payable, long-term debt	149,349	149,302
Accrued expenses	27,536	66,626
Other liabilities	56,650	54,064
TOTAL LIABILITIES	2,462,906	2,550,333
Shareholders' Equity
Common stock ($0.01 par value, 100,000,000 shares authorized; 67,852,870 shares issued, 44,922,656 shares outstanding at 3/31/20; 67,799,229 shares issued, 44,869,015 shares outstanding at 12/31/19)	679	678
Paid-in capital	325,052	321,190
Accumulated other comprehensive earnings	39,464	52,473
Retained earnings	943,509	1,014,046
Deferred compensation	6,970	7,980
Less: Treasury shares at cost (22,930,214 shares at 3/31/20 and 12/31/19)	(399,969)	(400,979)
TOTAL SHAREHOLDERS' EQUITY	915,705	995,388
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 3,378,611	$ 3,545,721

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Condensed Consolidated Balance Sheets
Available-for-sale, amortized cost	$ 1,912,851	$ 1,915,278
Available-for-sale, allowance for credit losses	878	0
Equity securities, cost	272,152	262,131
Premiums and reinsurance balances receivable, allowances for uncollectible amounts	16,948	16,682
Reinsurance balances recoverable on unpaid losses and settlement expenses, allowances for uncollectible amounts	8,539	9,402
Property and equipment, accumulated depreciation	$ 64,322	$ 62,703
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	67,852,870	67,799,229
Common stock, shares outstanding (in shares)	44,922,656	44,869,015
Treasury stock, shares (in shares)	22,930,214	22,930,214

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Common stock	Paid-in Capital	Accumulated Other Comprehensive Earnings (Loss)	Retained Earnings	Deferred Compensation	Treasury Stock at Cost	Total
Stockholders' Equity Attributable to Parent, Beginning Balance at Dec. 31, 2018	$ 674	$ 305,660	$ (14,572)	$ 908,079	$ 8,354	$ (401,353)	$ 806,842
Shares, Outstanding, Beginning Balance at Dec. 31, 2018	44,504,043
Increase (Decrease) in Shareholders' Equity
Net earnings (loss)				65,473			65,473
Other comprehensive earnings (loss), net of tax			29,301				29,301
Deferred compensation					(1,039)	1,039
Share-based compensation	$ 1	2,891					2,892
Share-based compensation (in shares)	50,213
Dividends and dividend equivalents				(9,803)			(9,803)
Stockholders' Equity Attributable to Parent, Ending Balance at Mar. 31, 2019	$ 675	308,551	14,729	963,749	7,315	(400,314)	894,705
Shares, Outstanding, Ending Balance at Mar. 31, 2019	44,554,256
Increase (Decrease) in Shareholders' Equity
Cumulative-effect adjustment from ASU 2016-13			22	1,073			1,095
Stockholders' Equity Attributable to Parent, Beginning Balance at Dec. 31, 2019	$ 678	321,190	52,473	1,014,046	7,980	(400,979)	995,388
Shares, Outstanding, Beginning Balance at Dec. 31, 2019	44,869,015
Increase (Decrease) in Shareholders' Equity
Net earnings (loss)				(61,267)			(61,267)
Other comprehensive earnings (loss), net of tax			(13,031)				(13,031)
Deferred compensation					(1,010)	1,010
Share-based compensation	$ 1	3,862					3,863
Share-based compensation (in shares)	53,641
Dividends and dividend equivalents				(10,343)			(10,343)
Stockholders' Equity Attributable to Parent, Ending Balance at Mar. 31, 2020	$ 679	$ 325,052	$ 39,464	$ 943,509	$ 6,970	$ (399,969)	$ 915,705
Shares, Outstanding, Ending Balance at Mar. 31, 2020	44,922,656

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Condensed Consolidated Statements of Shareholders' Equity
Cash dividends paid per common share	$ 0.23	$ 0.22

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Condensed Consolidated Statements of Cash Flows
Net cash provided by (used in) operating activities	$ (5,767)	$ 30,787
Purchase of:
Fixed income securities, available-for-sale	(69,233)	(95,984)
Equity securities	(31,811)	(31,962)
Property and equipment	(1,910)	(1,510)
Other	(2,611)	(4,134)
Proceeds from sale of:
Fixed income securities, available-for-sale	20,414	86,046
Equity securities	38,042	26,347
Other	2,267	154
Proceeds from call or maturity of:
Fixed income securities, available-for-sale	54,890	24,745
Net proceeds from sale (purchase) of short-term investments		(32,537)
Net cash provided by (used in) investing activities	10,048	(28,835)
Cash Flows from Financing Activities
Cash dividends paid	(10,332)	(9,797)
Proceeds from stock option exercises	2,549	2,886
Net cash used in financing activities	(7,783)	(6,911)
Net decrease in cash	(3,502)	(4,959)
Cash at the beginning of the period	46,203	30,140
Cash at the end of the period	$ 42,701	$ 25,181

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ​ A. BASIS OF PRESENTATION ​ The unaudited condensed consolidated interim financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP) for interim financial reporting and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include all of the disclosures required by GAAP for complete financial statements. As such, these unaudited condensed consolidated interim financial statements should be read in conjunction with our 2019 Annual Report on Form 10-K. Management believes that the disclosures are adequate to make the information presented not misleading, and all normal and recurring adjustments necessary to present fairly the financial position at March 31, 2020 and the results of operations of RLI Corp. and subsidiaries for all periods presented have been made. The results of operations for any interim period are not necessarily indicative of the operating results for a full year. Certain reclassifications were made to 2019 to conform to the classifications used in the current year. ​ The preparation of the unaudited condensed consolidated interim financial statements requires management to make estimates and assumptions relating to the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated interim financial statements and the reported amounts of revenue and expenses during the period. These estimates are inherently subject to change and actual results could differ significantly from these estimates. ​ B. ADOPTED ACCOUNTING STANDARDS ​ ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ​ ASU 2016-13 was issued to provide more decision-useful information about the expected credit losses on financial instruments. Previous guidance delayed the recognition of credit losses until it was probable a loss had been incurred. This update requires a financial asset measured at amortized cost to be presented at the net amount expected to be collected by means of an allowance for credit losses that is included in net earnings. Credit losses relating to available-for-sale debt securities are also required to be recorded through a reversible allowance for credit losses, but is limited to the amount by which fair value is less than amortized cost. ​ We adopted ASU 2016-13 on January 1, 2020 using the modified-retrospective approach. The standard applied to three of the Company’s balance sheet accounts: available-for-sale fixed income securities, premiums receivable and reinsurance balances recoverable. The impact of this standard was and is expected to continue to be immaterial, as our fixed income portfolio is weighted towards higher rated bonds (85 percent rated A or better at March 31, 2020 and December 31, 2019), we purchase reinsurance from financially strong reinsurers, we have a long history of collecting premium receivables through various economic cycles and we had previously maintained an allowance for uncollectible premium and reinsurance balances. In total, the cumulative-effect adjustment made to the balance sheet as of the beginning of the year resulted in a $1.1 million increase to retained earnings and an increase to accumulated other comprehensive earnings of less than $0.1 million. ​ C. REINSURANCE ​ Ceded unearned premiums and reinsurance balances recoverable on paid and unpaid losses and settlement expenses are reported separately as assets, instead of being netted with the related liabilities, since reinsurance does not relieve the Company of our legal liability to our policyholders. Such balances are subject to the credit risk associated with the individual reinsurer. We continuously monitor the financial condition of our reinsurers and actively follow up on any past due or disputed amounts. As part of our monitoring efforts, we review their annual financial statements, quarterly disclosures and Securities and Exchange Commission (SEC) filings for those reinsurers that are publicly traded. We also review insurance industry developments that may impact the financial condition of our reinsurers. We analyze the credit risk associated with our reinsurance balances recoverable by monitoring the AM Best and Standard & Poor’s (S&P) ratings of our reinsurers. Additionally, we perform an in depth reinsurer financial condition analysis prior to the renewal of our reinsurance placements. ​ We subject our reinsurance recoverables to detailed recoverable tests, including a segment-based analysis using the average default rating percentage by S&P rating. Our policy is to charge to earnings, in the form of a credit allowance, an estimate of unrecoverable amounts from reinsurers. This credit allowance is reviewed on an ongoing basis to ensure that the amount makes a reasonable provision for reinsurance balances that we may be unable to recover. Once regulatory action (such as receivership, finding of insolvency, order of conservation or order of liquidation) is taken against a reinsurer, the paid and unpaid recoverable for the reinsurer are specifically identified and written off through the use of our allowance for estimated unrecoverable amounts from reinsurers. When we write-off such a balance, it is done in full. ​ The allowances for uncollectible amounts on paid and unpaid reinsurance recoverables were $15.7 million and $8.5 million, respectively, at March 31, 2020. At December 31, 2019, the amounts were $15.7 million and $9.4 million, respectively. Adoption of ASU 2016-03 resulted in a $1.3 million decrease to the allowance for uncollectible amounts on reinsurance recoverables in 2020, while other changes in the allowances were due to changes in the amount of reinsurance balances outstanding, the composition of reinsurers from whom the balances were recoverable and their associated S&P default ratings. No write-offs or recoveries were applied to the allowances in the first quarter of 2020. ​ D. INTANGIBLE ASSETS ​ Goodwill and intangible assets totaled $54.0 million and $54.1 million at March 31, 2020 and December 31, 2019, respectively, as detailed in the following table: ​ ​ ​ ​ ​ ​ ​ ​ Goodwill and Intangible Assets ​ ​ March 31, ​ ​ December 31, (in thousands) ​ ​ 2020 ​ ​ 2019 Goodwill ​ ​ ​ ​ ​ ​ Energy surety ​ $ 25,706 ​ $ 25,706 Miscellaneous and contract surety ​ ​ 15,110 ​ ​ 15,110 Small commercial ​ ​ 5,246 ​ ​ 5,246 Total goodwill ​ $ 46,062 ​ $ 46,062 ​ ​ ​ ​ ​ ​ ​ Intangibles ​ ​ ​ ​ ​ ​ Indefinite-lived intangibles - state insurance licenses ​ ​ 7,500 ​ ​ 7,500 Definite-lived intangibles, net of accumulated amortization of $3,572 at 3/31/20 and $3,470 at 12/31/19 ​ ​ 463 ​ ​ 565 Total intangibles ​ $ 7,963 ​ $ 8,065 ​ ​ ​ ​ ​ ​ ​ Total goodwill and intangibles ​ $ 54,025 ​ $ 54,127 ​ All definite-lived intangible assets are amortized based on their estimated useful lives. Amortization of intangible assets was $0.1 million for the first quarter of 2020 and 2019. ​ Annual impairment assessment was performed on our energy surety goodwill, miscellaneous and contract surety goodwill , small commercial goodwill and state insurance license indefinite-lived intangible asset during 2019. Based upon these reviews, none of the assets were impaired. In addition, there were no triggering events as of March 31, 2020 that would suggest our goodwill and intangible assets should be tested for impairment. ​ E. EARNINGS PER SHARE ​ Basic earnings per share (EPS) excludes dilution and is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the dilution that could occur if securities or other contracts to issue common stock or common stock equivalents were exercised or converted into common stock. When inclusion of common stock equivalents increases the earnings per share or reduces the loss per share, the effect on earnings is anti-dilutive. Under these circumstances, the diluted net earnings or net loss per share is computed excluding the common stock equivalents. The following represents a reconciliation of the numerator and denominator of the basic and diluted EPS computations contained in the unaudited condensed consolidated interim financial statements: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three-Month Period ​ For the Three-Month Period ​ ​ Ended March 31, 2020 ​ Ended March 31, 2019 ​ ​ Income ​ Shares ​ Per Share ​ Income ​ Shares ​ Per Share (in thousands, except per share data) (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic EPS ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings (loss) available to common shareholders $ (61,267) 44,920 $ (1.36) $ 65,473 44,536 $ 1.47 Effect of Dilutive Securities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stock options ​ - - ​ ​ ​ ​ - 351 ​ ​ ​ Diluted EPS ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings (loss) available to common shareholders $ (61,267) 44,920 $ (1.36) $ 65,473 44,887 $ 1.46 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ F. COMPREHENSIVE EARNINGS ​ Our comprehensive earnings include net earnings plus after-tax unrealized gains and losses on our fixed income portfolio. In reporting other comprehensive earnings on a net basis in the statement of earnings, we used the federal statutory tax rate of 21 percent. Other comprehensive earnings (loss), as shown in the consolidated statements of earnings and comprehensive earnings, is net of tax expense (benefit) of $(3.5) million and $7.8 million for the first quarter of 2020 and 2019, respectively. ​ Unrealized gains (losses), net of tax, on the fixed income portfolio were $(13.0) million for the first three months of 2020, compared to $29.3 million during the same period last year. Unrealized losses in the first three months of 2020 were attributable to widening credit spreads, which more than offset declines in interest rates and decreased the fair value of securities held in the fixed income portfolio. In contrast, declining interest rates increased the fair value of securities held in the fixed income portfolio in the first three months of 2019. ​ The following table illustrates the changes in the balance of each component of accumulated other comprehensive earnings (loss) for each period presented in the unaudited condensed consolidated interim financial statements: ​ ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ For the Three-Month Periods ​ ​ ​ Ended March 31, ​ Unrealized Gains/Losses on Available-for-Sale Securities 2020 2019 ​ ​ ​ ​ ​ ​ ​ ​ Beginning balance $ 52,473 $ (14,572) Cumulative-effect adjustment of ASU 2016-13 (see note 1.B.) ​ ​ 22 ​ ​ - ​ Adjusted beginning balance ​ $ 52,495 ​ $ (14,572) ​ Other comprehensive earnings before reclassifications ​ (11,880) 29,795 ​ Amounts reclassified from accumulated other comprehensive earnings ​ (1,151) (494) ​ Net current-period other comprehensive earnings (loss) $ (13,031) $ 29,301 Ending balance $ 39,464 $ 14,729 Balance of securities for which an allowance for credit losses has been recognized in net earnings ​ $ 5,727 $ - ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Credit losses on or the sale of an available-for-sale security results in amounts being reclassified from accumulated other comprehensive earnings to current period net earnings. During the first quarter of 2020, $0.8 million of credit loss expense was recognized on available-for sale securities, increasing the allowance for credit losses on fixed income securities to $0.9 million. No write-offs or recoveries were applied to the allowances in the first quarter of 2020. The effects of reclassifications out of accumulated other comprehensive earnings by the respective line items of net earnings are presented in the following table: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount Reclassified from Accumulated Other ​ (in thousands) ​ Comprehensive Earnings ​ ​ ​ For the Three-Month ​ ​ Component of Accumulated ​ Periods Ended March 31, ​ Affected line item in the Other Comprehensive Earnings 2020 2019 Statement of Earnings ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized gains and losses on available-for-sale securities ​ $ 2,306 ​ $ 625 ​ Net realized gains ​ ​ ​ (849) ​ ​ - ​ Credit losses presented within net realized gains ​ ​ $ 1,457 ​ $ 625 ​ Earnings (loss) before income taxes ​ ​ ​ (306) ​ ​ (131) ​ Income tax benefit (expense) ​ ​ $ 1,151 ​ $ 494 ​ Net earnings (loss) ​ G. FAIR VALUE MEASUREMENTS ​ Fair value is defined as the price in the principal market that would be received for an asset to facilitate an orderly transaction between market participants on the measurement date. We determined the fair value of certain financial instruments based on their underlying characteristics and relevant transactions in the marketplace. We maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ​ The following are the levels of the fair value hierarchy and a brief description of the type of valuation inputs that are used to establish each level. Financial assets are classified based upon the lowest level of significant input that is used to determine fair value. ​ Pricing Level 1 ​ Pricing Level 2 ​ Pricing Level 3 ​ As a part of management’s process to determine fair value, we utilize widely recognized, third-party pricing sources to determine our fair values. We have obtained an understanding of the third-party pricing sources’ valuation methodologies and inputs. The following is a description of the valuation techniques used for financial assets that are measured at fair value, including the general classification of such assets pursuant to the fair value hierarchy. ​ Corporate, Agencies, Government and Municipal Bonds: ​ Mortgage-backed Securities (MBS)/Commercial Mortgage-backed Securities (CMBS) and Asset-backed Securities (ABS): ​ Regulation D Private Placement Securities: average life, as well as investment and non-investment grade matrices created from fixed income indices. Unobservable inputs include a liquidity spread premium calculated based on public corporate spread and private corporate spread matrices. The quantitative detail of the liquidity spread premium is neither provided nor reasonably available to the Company. An increase to the credit spread assumptions would result in a lower fair value measurement. ​ For all of our fixed income securities classified as Level 2, as described above, we periodically conduct a review to assess the reasonableness of the fair values provided by our pricing services. Our review consists of a two-pronged approach. First, we compare prices provided by our pricing services to those provided by an additional source. In some cases, we obtain prices from securities brokers and compare them to the prices provided by our pricing services. In both comparisons, if discrepancies are found, we compare our prices to actual reported trade data for like securities. No changes to the fair values supplied by our pricing services have occurred as a result of our reviews. Based on these assessments, we have determined that the fair values of our Level 2 securities provided by our pricing services are reasonable. ​ Common Stock: ​ Due to the relatively short-term nature of cash, short-term investments, accounts receivable and accounts payable, their carrying amounts are reasonable estimates of fair value. Our investments in private funds, classified as other invested assets, are measured using the investments’ net asset value per share and are not categorized within the fair value hierarchy. ​ H. RISKS AND UNCERTAINTIES ​ Certain risks and uncertainties are inherent to our day-to-day operations. Adverse changes in the economy could lower demand for our insurance products or negatively impact our investment results, both of which could have an adverse effect on the revenue and profitability of our operations. The global COVID-19 pandemic has resulted in and is expected to continue to result in significant disruptions in economic activity and financial markets. The cumulative effects of COVID-19 on the Company, and the effect of any other public health outbreak, cannot be predicted at this time, but could reduce demand for our insurance policies, result in increased level of losses, settlement expenses or other operating costs, reduce the market value of invested assets held by the Company or negatively impact the fair value of our goodwill. ​ Catastrophe Exposures ​ Our catastrophe reinsurance treaty renewed on January 1, 2020. We purchased limits of $400 million in excess of $25 million first-dollar retention for earthquakes in California, $425 million in excess of $25 million first-dollar retention for earthquakes outside of California and $275 million in excess of $25 million first-dollar retention for all other perils. These amounts are subject to certain co-participations by the Company on losses in excess of the $25 million retentions. On March 1, 2020, we purchased $100 million of additional catastrophe reinsurance protection on top of the previously described coverage. This increases the limits to $500 million for earthquakes in California, $525 million for earthquakes outside of California and $375 for all other perils, all of which are still subject to $25 million first-dollar retentions and certain co-participations in excess of the retentions.

INVESTMENTS

INVESTMENTS	3 Months Ended
	Mar. 31, 2020
INVESTMENTS
INVESTMENTS	2. INVESTMENTS ​ Our investments are primarily composed of fixed income debt securities and common stock equity securities. We carry our equity securities at fair value and categorize all of our debt securities as available-for-sale, which are carried at fair value. ​ Realized gains and losses on disposition of investments are based on specific identification of the investments sold on the settlement date. The following is a summary of the disposition of fixed income and equity securities for the three-month periods ended March 31, 2020 and 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ SALES ​ Proceeds ​ Gross Realized ​ Net Realized (in thousands) From Sales Gains Losses Gain (Loss) 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Available-for-sale ​ $ 19,858 ​ $ 2,270 ​ $ (102) ​ $ 2,168 Equities ​ 38,042 ​ 17,792 ​ (2,633) ​ 15,159 2019 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Available-for-sale ​ $ 92,277 ​ $ 1,356 ​ $ (723) ​ $ 633 Equities ​ 26,347 ​ 9,034 ​ (592) ​ 8,442 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ CALLS/MATURITIES ​ ​ ​ ​ Gross Realized ​ Net Realized (in thousands) Proceeds Gains Losses Gain (Loss) 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Available-for-sale ​ $ 54,890 ​ $ 145 ​ $ (7) ​ $ 138 2019 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Available-for-sale ​ $ 24,745 ​ $ 1 ​ $ (9) ​ $ (8) ​ FAIR VALUE MEASUREMENTS ​ Assets measured at fair value on a recurring basis as of March 31, 2020 and December 31, 2019 are summarized below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of March 31, 2020 ​ ​ Fair Value Measurements Using ​ Quoted Prices in Significant Other Significant ​ ​ ​ Active Markets for ​ Observable ​ Unobservable ​ ​ ​ ​ Identical Assets ​ Inputs ​ Inputs ​ ​ (in thousands) (Level 1) (Level 2) (Level 3) Total Fixed income securities - available-for-sale ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. government ​ $ — ​ $ 186,974 ​ $ — ​ $ 186,974 U.S. agency ​ ​ — ​ ​ 37,042 ​ ​ — ​ ​ 37,042 Non-U.S. govt. & agency ​ ​ — ​ ​ 7,316 ​ ​ — ​ ​ 7,316 Agency MBS ​ ​ — ​ ​ 414,262 ​ ​ — ​ ​ 414,262 ABS/CMBS* ​ ​ — ​ ​ 223,601 ​ ​ — ​ ​ 223,601 Corporate ​ ​ — ​ ​ 683,615 ​ ​ 4,803 ​ ​ 688,418 Municipal ​ ​ — ​ ​ 405,972 ​ ​ — ​ ​ 405,972 Total fixed income securities - available-for-sale ​ $ — ​ $ 1,958,782 ​ $ 4,803 ​ $ 1,963,585 Equity securities ​ ​ 356,403 ​ ​ — ​ ​ — ​ ​ 356,403 Other invested assets ​ ​ 12,056 ​ ​ — ​ ​ — ​ ​ 12,056 Total ​ $ 368,459 ​ $ 1,958,782 ​ $ 4,803 ​ $ 2,332,044 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2019 ​ ​ Fair Value Measurements Using ​ ​ Quoted Prices in Significant Other Significant ​ ​ ​ Active Markets for ​ Observable ​ Unobservable ​ ​ ​ ​ Identical Assets ​ Inputs ​ Inputs ​ ​ (in thousands) (Level 1) (Level 2) (Level 3) Total Fixed income securities - available-for-sale ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. government ​ $ — ​ $ 193,661 ​ $ — ​ $ 193,661 U.S. agency ​ ​ — ​ ​ 38,855 ​ ​ — ​ ​ 38,855 Non-U.S. govt. & agency ​ ​ — ​ ​ 7,628 ​ ​ — ​ ​ 7,628 Agency MBS ​ ​ — ​ ​ 420,165 ​ ​ — ​ ​ 420,165 ABS/CMBS* ​ ​ — ​ ​ 224,870 ​ ​ — ​ ​ 224,870 Corporate ​ ​ — ​ ​ 690,297 ​ ​ 1,770 ​ ​ 692,067 Municipal ​ ​ — ​ ​ 405,840 ​ ​ — ​ ​ 405,840 Total fixed income securities - available-for-sale ​ $ — ​ $ 1,981,316 ​ $ 1,770 ​ $ 1,983,086 Equity securities ​ ​ 460,630 ​ ​ — ​ ​ — ​ ​ 460,630 Total ​ $ 460,630 ​ $ 1,981,316 ​ $ 1,770 ​ $ 2,443,716 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ * Non-agency asset-backed and commercial mortgage-backed ​ As of March 31, 2020, we had $4.8 million of Regulation D private placement fixed income securities whose fair value was measured using significant unobservable inputs (Level 3). The following table summarizes changes in the balance of these Level 3 securities. ​ ​ ​ ​ ​ ​ ​ Level 3 (in thousands) ​ Securities Balance as of January 1, 2020 ​ $ 1,770 Net realized and unrealized gains (losses) ​ ​ Included in net earnings (loss) as a part of: ​ ​ ​ Net investment income ​ ​ (5) Net realized gains ​ ​ (16) Included in other comprehensive earnings (loss) ​ (1,048) Total net realized and unrealized gains (losses) ​ $ (1,069) Purchases ​ ​ 4,102 Balance as of March 31, 2020 ​ $ 4,803 ​ ​ ​ ​ Change in unrealized gains (losses) during the period for Level 3 assets held at period-end - ​ $ (16) Change in unrealized gains (losses) during the period for Level 3 assets held at period-end - ​ $ (1,048) ​ The amortized cost and fair value of available-for-sale fixed income securities by contractual maturity as of March 31, 2020 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2020 Available-for-sale ​ Amortized ​ Fair (in thousands) Cost Value Due in one year or less ​ $ 56,844 ​ $ 56,702 Due after one year through five years ​ ​ 442,572 ​ ​ 449,447 Due after five years through 10 years ​ ​ 549,193 ​ ​ 569,898 Due after 10 years ​ ​ 236,938 ​ ​ 249,675 Mtge/ABS/CMBS* ​ ​ 627,304 ​ ​ 637,863 Total available-for-sale ​ $ 1,912,851 ​ $ 1,963,585 *Mortgage-backed, asset-backed and commercial mortgage-backed ​ The amortized cost and fair value of available-for-sale securities at March 31, 2020 and December 31, 2019 are presented in the tables below. Amortized cost does not include the $13.9 million and $13.5 million of accrued interest receivable as of March 31, 2020 and December 31, 2019, respectively. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Available-for-sale ​ March 31, 2020 (in thousands) Cost or ​ Allowance Gross Gross ​ ​ ​ Amortized ​ for Credit ​ Unrealized ​ Unrealized ​ Fair Asset Class Cost ​ Losses ​ Gains Losses Value U.S. government ​ $ 171,026 ​ $ - ​ $ 15,948 ​ $ - ​ $ 186,974 U.S. agency ​ ​ 32,236 ​ ​ - ​ ​ 4,806 ​ ​ - ​ ​ 37,042 Non-U.S. govt. & agency ​ ​ 7,324 ​ ​ - ​ ​ 105 ​ ​ (113) ​ ​ 7,316 Agency MBS ​ ​ 396,474 ​ ​ - ​ ​ 17,807 ​ ​ (19) ​ ​ 414,262 ABS/CMBS* ​ ​ 230,830 ​ ​ (21) ​ ​ 1,908 ​ ​ (9,116) ​ ​ 223,601 Corporate ​ ​ 685,116 ​ ​ (857) ​ ​ 23,364 ​ ​ (19,205) ​ ​ 688,418 Municipal ​ ​ 389,845 ​ ​ - ​ ​ 16,203 ​ ​ (76) ​ ​ 405,972 Total Fixed Income ​ $ 1,912,851 ​ $ (878) ​ $ 80,141 ​ $ (28,529) ​ $ 1,963,585 *Non-agency asset-backed and commercial mortgage-backed ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Available-for-sale ​ December 31, 2019 (in thousands) Cost or ​ Allowance Gross Gross ​ ​ ​ Amortized ​ for Credit ​ Unrealized ​ Unrealized ​ Fair Asset Class Cost ​ Losses Gains Losses Value U.S. government ​ $ 186,699 ​ $ - ​ $ 6,994 ​ $ (32) ​ $ 193,661 U.S. agency ​ ​ 36,535 ​ ​ - ​ ​ 2,362 ​ ​ (42) ​ ​ 38,855 Non-U.S. govt. & agency ​ ​ 7,333 ​ ​ - ​ ​ 295 ​ ​ - ​ ​ 7,628 Agency MBS ​ ​ 411,808 ​ ​ - ​ ​ 8,920 ​ ​ (563) ​ ​ 420,165 ABS/CMBS* ​ ​ 222,832 ​ ​ - ​ ​ 2,514 ​ ​ (476) ​ ​ 224,870 Corporate ​ ​ 659,640 ​ ​ - ​ ​ 33,245 ​ ​ (818) ​ ​ 692,067 Municipal ​ ​ 390,431 ​ ​ - ​ ​ 16,131 ​ ​ (722) ​ ​ 405,840 Total Fixed Income ​ $ 1,915,278 ​ $ - ​ $ 70,461 ​ $ (2,653) ​ $ 1,983,086 *Non-agency asset-backed and commercial mortgage-backed ​ Allowance for Credit Losses and Unrealized Losses on Fixed Income Securities ​ We adopted ASU 2016-13, Financial Instruments – Credit Losses, on January 1, 2020, which required the recognition of a reversible allowance for credit losses on available-for-sale fixed income securities. See note 1. B. for more information on the adoption of the ASU. Available-for-sale securities in the fixed income portfolio are subjected to several criteria to determine if those securities should be included in the allowance for expected credit loss evaluation, including: ​ ● Changes in technology that may impair the earnings potential of the investment, ​ ● The discontinuance of a segment of business that may affect future earnings potential, ​ ● Reduction of or non-payment of interest and/or principal, ​ ● Specific concerns related to the issuer’s industry or geographic area of operation, ​ ● Significant or recurring operating losses, poor cash flows and/or deteriorating liquidity ratios and ​ ● Downgrades in credit quality by a major rating agency. ​ If changes in interest rates and credit spreads do not reasonably explain the unrealized loss for an available-for-sale security or if any of the criteria above indicate a potential credit loss, the security is subjected to a discounted cash flow analysis. Inputs into the discounted cash flow analysis include prepayment assumptions for structured securities, default rates and recoverability rates based on credit rating. The allowance for any security is limited to the amount that the securities fair value is below amortized cost. ​ As of March 31, 2020, the discounted cash flow analysis resulted in an allowance for credit losses on 39 securities totaling $0.9 million. All fixed income securities in the investment portfolio continue to pay the expected coupon payments under the contractual terms of the securities. Based on our analysis, we believe we will recover the amortized cost basis on the available-for-sale securities not included in the allowance for credit losses. We do not intend to sell the available-for-sale securities in an unrealized loss position and it is not more likely than not that we will be required to sell the investments before recovery of the amortized cost basis. We continually monitor the credit quality of our fixed income investments to assess if it is probable that we will receive our contractual or estimated cash flows in the form of principal and interest. ​ Prior to the adoption of ASU 2016-13, we conducted reviews of fixed income securities with unrealized losses to evaluate whether an impairment was other-than-temporary. Any credit-related impairment on fixed income securities we did not plan to sell and for which we were not more likely than not to be required to sell were recognized in net earnings, with the non-credit related impairment recognized in comprehensive earnings. We did not recognize any other-than-temporary impairment losses in earnings on the fixed income portfolio in the first three months of 2019. ​ As of March 31, 2020, in addition to the securities included in the allowance for credit losses, the fixed income portfolio contained 381 securities with an unrealized loss position for which an allowance for credit losses had not been recorded. The $28.5 million in associated unrealized losses represents 1.5 percent of the fixed income portfolio’s cost basis and 1.2 percent of total invested assets Unrealized losses increased through the first three months of 2020, as increased credit spreads more than offset declines in interest rates during the period. The following table illustrates the total value of fixed income securities that were in an unrealized loss position as of , after factoring in the allowance for credit losses, and December 31, 2019. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2020 ​ December 31, 2019 (in thousands) < 12 Mos. 12 Mos. & Total < 12 Mos. 12 Mos. & Total ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. government ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value ​ $ — ​ $ — ​ $ — ​ $ 2,505 ​ $ 8,463 ​ $ 10,968 Amortized cost ​ ​ — ​ ​ — ​ ​ — ​ ​ 2,506 ​ ​ 8,494 ​ ​ 11,000 Unrealized Loss ​ $ — ​ $ — ​ $ — ​ $ (1) ​ $ (31) ​ $ (32) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. agency ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value ​ $ — ​ $ — ​ $ — ​ $ 6,794 ​ $ — ​ $ 6,794 Amortized cost ​ ​ — ​ ​ — ​ ​ — ​ ​ 6,836 ​ ​ — ​ ​ 6,836 Unrealized Loss ​ $ — ​ $ — ​ $ — ​ $ (42) ​ $ — ​ $ (42) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-U.S. government ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value ​ $ 3,011 ​ $ — ​ $ 3,011 ​ $ — ​ $ — ​ $ — Amortized cost ​ ​ 3,124 ​ ​ — ​ ​ 3,124 ​ ​ — ​ ​ — ​ ​ — Unrealized Loss ​ $ (113) ​ $ — ​ $ (113) ​ $ — ​ $ — ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Agency MBS ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value ​ $ 249 ​ $ 1,296 ​ $ 1,545 ​ $ 21,548 ​ $ 41,718 ​ $ 63,266 Amortized cost ​ ​ 249 ​ ​ 1,315 ​ ​ 1,564 ​ ​ 21,664 ​ ​ 42,165 ​ ​ 63,829 Unrealized Loss ​ $ — ​ $ (19) ​ $ (19) ​ $ (116) ​ $ (447) ​ $ (563) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ABS/CMBS* ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value ​ $ 126,540 ​ $ 15,405 ​ $ 141,945 ​ $ 74,968 ​ $ 18,036 ​ $ 93,004 Amortized cost ​ ​ 134,660 ​ ​ 16,401 ​ ​ 151,061 ​ ​ 75,332 ​ ​ 18,148 ​ ​ 93,480 Unrealized Loss ​ $ (8,120) ​ $ (996) ​ $ (9,116) ​ $ (364) ​ $ (112) ​ $ (476) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Corporate ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value ​ $ 220,349 ​ $ 4,182 ​ $ 224,531 ​ $ 16,478 ​ $ 9,348 ​ $ 25,826 Amortized cost ​ ​ 238,510 ​ ​ 5,226 ​ ​ 243,736 ​ ​ 16,950 ​ ​ 9,694 ​ ​ 26,644 Unrealized Loss ​ $ (18,161) ​ $ (1,044) ​ $ (19,205) ​ $ (472) ​ $ (346) ​ $ (818) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Municipal ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value ​ $ 7,301 ​ $ — ​ $ 7,301 ​ $ 47,018 ​ $ — ​ $ 47,018 Amortized cost ​ ​ 7,377 ​ ​ — ​ ​ 7,377 ​ ​ 47,740 ​ ​ — ​ ​ 47,740 Unrealized Loss ​ $ (76) ​ $ — ​ $ (76) ​ $ (722) ​ $ — ​ $ (722) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total fixed income ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value ​ $ 357,450 ​ $ 20,883 ​ $ 378,333 ​ $ 169,311 ​ $ 77,565 ​ $ 246,876 Amortized cost ​ ​ 383,920 ​ ​ 22,942 ​ ​ 406,862 ​ ​ 171,028 ​ ​ 78,501 ​ ​ 249,529 Unrealized Loss ​ $ (26,470) ​ $ (2,059) ​ $ (28,529) ​ $ (1,717) ​ $ (936) ​ $ (2,653) * Non-agency asset-backed and commercial mortgage-backed ​ The following table shows the composition of the fixed income securities in unrealized loss positions, after factoring in the allowance for credit losses, at March 31, 2020 by the National Association of Insurance Commissioners (NAIC) rating and the generally equivalent Standard & Poor’s (S&P) and Moody’s ratings. The vast majority of the securities are rated by S&P and/or Moody’s. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Equivalent ​ Equivalent ​ (dollars in thousands) ​ ​ ​ NAIC S&P Moody’s ​ Amortized ​ Unrealized ​ Percent ​ Rating Rating Rating Cost Fair Value Loss to Total ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1 ​ AAA/AA/A ​ Aaa/Aa/A ​ $ 202,517 ​ $ 191,912 ​ $ (10,605) ​ 37.2 % 2 ​ BBB ​ Baa ​ ​ 85,785 ​ ​ 80,759 ​ ​ (5,026) ​ 17.6 % 3 ​ BB ​ Ba ​ ​ 65,256 ​ ​ 59,398 ​ ​ (5,858) ​ 20.5 % 4 ​ B ​ B ​ ​ 50,630 ​ ​ 44,392 ​ ​ (6,238) ​ 21.9 % 5 ​ CCC ​ Caa ​ ​ 2,674 ​ ​ 1,872 ​ ​ (802) ​ 2.8 % 6 ​ CC or lower ​ Ca or lower ​ ​ - ​ ​ - ​ ​ - ​ - % ​ ​ ​ ​ Total ​ $ 406,862 ​ $ 378,333 ​ $ (28,529) ​ 100.0 % ​ Unrealized Gains and Losses on Equity Securities ​ Unrealized losses recognized on equity securities still held as of March 31, 2020 were $115.2 million during the first quarter of 2020. Comparatively, unrealized gains recognized on equity securities still held as of March 31, 2019 were $41.9 million during the first quarter of 2019. ​ Other Invested Assets ​ We had $53.6 million of other invested assets at March 31, 2020, compared to $70.4 million at the end of 2019. Other invested assets include investments in low income housing tax credit partnerships (LIHTC), membership in the Federal Home Loan Bank of Chicago (FHLBC), investments in private funds and investments in restricted stock. Our LIHTC investments are carried at amortized cost and our investment in FHLBC stock is carried at cost. Due to the nature of the LIHTC and our membership in the FHLBC, their carrying amounts approximate fair value. The private funds are carried at fair value, using each investment’s net asset value. Restricted stock is carried at quoted market prices, as the restrictions expire within one year. ​ Our LIHTC interests had a balance of $22.4 million at March 31, 2020, compared to $23.3 million at December 31, 2019 and recognized a total tax benefit of $0.9 million during the first quarter of 2020, compared to $0.6 million the prior year. Our unfunded commitment for our LIHTC investments totaled $8.0 million at March 31, 2020 and will be paid out in installments through 2035. ​ As of March 31, 2020, $15.1 million of investments were pledged as collateral with the FHLBC to ensure timely access to the secured lending facility that ownership of FHLBC stock provides. As of and during the three-month period ended March 31, 2020, there were no outstanding borrowings with the FHLBC. ​ Our investments in private funds totaled $17.5 million at March 31, 2020, compared to $46.0 million at December 31, 2019, and we had $13.5 million of associated unfunded commitments at March 31, 2020. Our interest in private funds is generally restricted from being transferred or otherwise redeemed without prior consent by the respective entities. During the first quarter of 2020, one of the private funds transitioned into a publically traded common stock, but short term restrictions were applied on our ability to sell without prior approval. Our investment in restricted stock was $12.1 million as of March 31, 2020. For our remaining investments in private funds, the timed dissolution of the partnerships would trigger redemption. ​ Cash ​ Cash consists of uninvested balances in bank accounts. We had a cash balance of $42.7 million at March 31, 2020, compared to $46.2 million at the end of 2019.

HISTORICAL LOSS AND LAE DEVELOP

HISTORICAL LOSS AND LAE DEVELOPMENT	3 Months Ended
	Mar. 31, 2020
HISTORICAL LOSS AND LAE DEVELOPMENT
HISTORICAL LOSS AND LAE DEVELOPMENT	​ 3. HISTORICAL LOSS AND LAE DEVELOPMENT ​ The following table is a reconciliation of our unpaid losses and settlement expenses (LAE) for the first three months of 2020 and 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three-Month Periods ​ ​ Ended March 31, (in thousands) 2020 2019 Unpaid losses and LAE at beginning of year ​ ​ ​ ​ ​ ​ Gross ​ $ 1,574,352 ​ $ 1,461,348 Ceded ​ (384,517) ​ (364,999) Net ​ $ 1,189,835 ​ $ 1,096,349 ​ ​ ​ ​ ​ ​ ​ Adoption impact of ASU 2016-13 on reinsurance balances recoverable ​ $ (1,345) ​ $ — ​ ​ ​ ​ ​ ​ ​ Increase (decrease) in incurred losses and LAE ​ ​ ​ ​ ​ ​ Current accident year ​ $ 126,194 ​ $ 113,930 Prior accident years ​ (15,173) ​ (19,633) Total incurred ​ $ 111,021 ​ $ 94,297 ​ ​ ​ ​ ​ ​ ​ Loss and LAE payments for claims incurred ​ ​ ​ ​ ​ ​ Current accident year ​ $ (9,295) ​ $ (5,531) Prior accident years ​ (81,897) ​ (70,145) Total paid ​ $ (91,192) ​ $ (75,676) ​ ​ ​ ​ ​ ​ ​ Net unpaid losses and LAE at March 31 ​ $ 1,208,319 ​ $ 1,114,970 ​ ​ ​ ​ ​ ​ ​ Unpaid losses and LAE at March 31 ​ ​ ​ ​ ​ ​ Gross ​ $ 1,574,760 ​ $ 1,479,344 Ceded ​ (366,441) ​ (364,374) Net ​ $ 1,208,319 ​ $ 1,114,970 ​ We adopted ASU 2016-13, Financial Instruments – Credit Losses, on January 1, 2020, which required . We previously maintained an allowance for uncollectible reinsurance balances prior to the adoption of this update. However, in order to comply with the updated requirements, we released $1.3 million of the allowance on uncollectible reinsurance balances upon adoption. The implementation guidance required the cumulative-effect adjustment be made to the beginning balance of retained earnings, rather than through net earnings like historical changes have and ongoing modifications will continue to be recorded. See note 1. B. for more information on the adoption of the ASU. ​ For the first three months of 2020, incurred losses and LAE included $15.2 million of favorable development on prior years’ loss reserves. The majority of products experienced modest amounts of favorable development on prior accident years, with notable contributions from transportation, marine, small commercial and surety. No products experienced significant adverse development. ​ For the first three months of 2019, incurred losses and LAE included $19.6 million of favorable development on prior years’ loss reserves. General liability, commercial excess and personal umbrella, professional services and surety were drivers of the favorable development. Executive products experienced adverse development. ​ The spread of COVID-19 and related economic shutdown has increased the uncertainty that is always present in our estimate of the ultimate cost of loss and settlement expense. Actuarial models base future emergence on historic experience, with adjustments for current trends, and the appropriateness of these assumptions involved more uncertainty as of March 31, 2020. We expect there will be impacts to the timing of loss emergence and ultimate loss ratios for certain coverages we underwrite. The industry is experiencing new issues, including the temporary suspension of civil court cases in most states, the extension of certain statutes of limitations and a significant reduction in economic activity and insured exposure in some classes. Our booked reserves include consideration of these factors, but legislative, regulatory or judicial actions could result in loss reserve deficiencies and reduce earnings in future periods.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2020
INCOME TAXES
INCOME TAXES	4. INCOME TAXES ​ Our effective tax rate for the three-month period ended March 31, 2020 was 22.8 percent, compared to 19.9 percent for the same period in 2019. Effective rates are dependent upon components of pretax earnings and the related tax effects. The effective rate was higher for the three-month period in 2020 as tax-favored adjustments increased the tax benefit realized on pretax losses. ​ Income tax expense (benefit) attributable to income from operations for the three-month periods ended March 31, 2020 and 2019 differed from the amounts computed by applying the U.S. federal tax rate of 21 percent to pretax income by the items detailed in the below table. In interim periods, income taxes are adjusted to reflect the effective tax rate we anticipate for the year, with adjustments flowing through the other items, net line. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three-Month Periods Ended March 31, ​ ​ 2020 ​ ​ 2019 ​ (in thousands) Amount % Amount % ​ Provision for income taxes at the statutory rate of 21% ​ $ (16,666) ​ 21.0 % ​ $ 17,166 ​ 21.0 % Increase (reduction) in taxes resulting from: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Excess tax benefit on share-based compensation ​ ​ (1,029) ​ 1.3 % ​ ​ (741) ​ (0.9) % Tax exempt interest income ​ ​ (313) ​ 0.4 % ​ ​ (345) ​ (0.4) % Dividends received deduction ​ ​ (271) ​ 0.3 % ​ ​ (203) ​ (0.2) % ESOP dividends paid deduction ​ ​ (132) ​ 0.2 % ​ ​ (137) ​ (0.2) % Nondeductible expenses ​ ​ 203 ​ (0.3) % ​ ​ 509 ​ 0.6 % Other items, net ​ ​ 111 ​ (0.1) % ​ ​ 19 ​ 0.0 % Total tax expense (benefit) ​ $ (18,097) ​ 22.8 % ​ $ 16,268 ​ 19.9 % ​

STOCK BASED COMPENSATION

STOCK BASED COMPENSATION	3 Months Ended
	Mar. 31, 2020
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION	5. STOCK BASED COMPENSATION ​ Our RLI Corp. Long-Term Incentive Plan (2010 LTIP) was in place from 2010 to 2015. The 2010 LTIP provided for equity-based compensation, including stock options, up to a maximum of 4,000,000 shares of common stock (subject to adjustment for changes in our capitalization and other events). Between 2010 and 2015, we granted 2,878,000 stock options under the 2010 LTIP. The 2010 LTIP was replaced in 2015. ​ In 2015, our shareholders approved the 2015 RLI Corp. Long-Term Incentive Plan (2015 LTIP), which provides for equity-based compensation and replaced the 2010 LTIP. In conjunction with the adoption of the 2015 LTIP, effective May 7, 2015, options were no longer granted under the 2010 LTIP. Awards under the 2015 LTIP may be in the form of restricted stock, restricted stock units, stock options (non-qualified only), stock appreciation rights, performance units as well as other stock-based awards. Eligibility under the 2015 LTIP is limited to employees and directors of the Company or any affiliate. The granting of awards under the 2015 LTIP is solely at the discretion of the board of directors. The maximum number of shares of common stock available for distribution under the 2015 LTIP is 4,000,000 shares (subject to adjustment for changes in our capitalization and other events). Since the plan’s approval in 2015, we have awarded 2,312,835 stock options and restricted stock units under the 2015 LTIP, including 30,375 stock options thus far in 2020. ​ Stock Options ​ Under the 2015 LTIP, as under the 2010 LTIP, we grant stock options for shares with an exercise price equal to the fair market value of the shares at the date of grant (subject to adjustments for changes in our capitalization, special dividends and other events as set forth in such plans). Options generally vest and become exercisable ratably over a five-year period and expire eight years after grant. ​ For most participants, the requisite service period and vesting period will be the same. For participants who are retirement eligible, defined by the plan as those individuals whose age and years of service equals 75 , the requisite service period is deemed to be met and options are immediately expensed on the date of grant. For participants who will become retirement eligible during the vesting period, the requisite service period over which expense is recognized is the period between the grant date and the attainment of retirement eligibility. Shares issued upon option exercise are newly issued shares. ​ The following tables summarize option activity for the three-month periods ended March 31, 2020 and 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ Weighted ​ Average ​ Aggregate ​ ​ Number of ​ Average ​ Remaining ​ Intrinsic ​ ​ Options ​ Exercise ​ Contractual ​ Value ​ Outstanding Price Life (in 000’s) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding options at January 1, 2020 ​ 1,667,290 ​ $ 62.52 ​ ​ ​ ​ ​ Options granted ​ 30,375 ​ ​ 94.62 ​ ​ ​ ​ ​ Options exercised ​ (56,725) ​ ​ 49.23 ​ ​ ​ $ 2,516 Options canceled/forfeited ​ (300) ​ ​ 58.60 ​ ​ ​ ​ ​ Outstanding options at March 31, 2020 ​ 1,640,640 ​ $ 63.58 ​ 5.10 ​ $ 40,778 Exercisable options at March 31, 2020 ​ 614,040 ​ $ 54.68 ​ 3.75 ​ $ 20,438 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ Weighted ​ Average ​ Aggregate ​ ​ Number of ​ Average ​ Remaining ​ Intrinsic ​ ​ Options ​ Exercise ​ Contractual ​ Value ​ Outstanding Price Life (in 000’s) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding options at January 1, 2019 ​ 1,964,880 ​ $ 54.24 ​ ​ ​ ​ ​ Options granted ​ 40,750 ​ ​ 66.16 ​ ​ ​ ​ ​ Options exercised ​ (50,580) ​ ​ 33.71 ​ ​ ​ $ 1,795 Options canceled/forfeited ​ (19,100) ​ ​ 57.28 ​ ​ ​ ​ ​ Outstanding options at March 31, 2019 ​ 1,935,950 ​ $ 55.00 ​ 5.14 ​ $ 32,589 Exercisable options at March 31, 2019 ​ 702,250 ​ $ 47.84 ​ 3.73 ​ $ 16,794 ​ The majority of our stock options are granted annually at our regular board meeting in May. In addition, options are approved at the May meeting for quarterly grants to certain retirement eligible employees. Since stock option grants to retirement eligible employees are fully expensed when issued, the approach allows for a more even expense distribution throughout the year. ​ In the first quarter of 2020, 30,375 stock options were granted with a weighted average exercise price of $94.62 and a weighted average fair value of $14.48 . We recognized $1.0 million of expense in the first quarter of 2020. Since options granted under our 2015 LTIP are non-qualified, we recorded a tax benefit of $0.2 million in the first quarter of 2020 related to this compensation expense. Total unrecognized compensation expense relating to outstanding and unvested options was $4.2 million, which will be recognized over the remainder of the vesting period. Comparatively, we recognized $1.0 million of compensation expense and a tax benefit of $0.2 million in the first quarter of 2019. ​ The fair value of options was estimated using a Black-Scholes based option pricing model with the following weighted average grant-date assumptions and weighted average fair values as of March 31: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2020 ​ 2019 ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average fair value of grants ​ $ 14.48 ​ ​ $ 11.35 ​ Risk-free interest rates ​ ​ 1.54 % ​ ​ 2.94 % Dividend yield ​ ​ 2.69 % ​ ​ 2.98 % Expected volatility ​ ​ 22.68 % ​ ​ 22.84 % Expected option life ​ ​ 4.99 years ​ ​ 5.11 years ​ The risk-free rate was determined based on U.S. treasury yields that most closely approximated the option’s expected life. The dividend yield was determined based on the average annualized quarterly dividends paid during the most recent five-year period and incorporated a consideration for special dividends paid in recent history. The expected volatility was calculated based on the median of the rolling volatilities for the expected life of the options. The expected option life was determined based on historical exercise behavior and the assumption that all outstanding options will be exercised at the midpoint of the current date and remaining contractual term, adjusted for the demographics of the current year’s grant. ​ Restricted Stock Units ​ In addition to stock options, restricted stock units (RSUs) are granted with a value equal to the closing stock price of the Company’s stock on the dates the units are granted. These units generally have a three-year cliff vesting, but have an accelerated vesting feature for participants who are retirement eligible, defined by the plan as those individuals whose age and years of service equals 75 . In addition, the RSUs have dividend participation, which accrue as additional units and are settled with granted stock units at the end of the vesting period. ​ As of March 31, 2020, 45,350 RSUs have been granted to employees under the 2015 LTIP and 43,708 remain outstanding. We recognized $0.2 million of expense on these units in the first quarter of 2020, compared to $0.1 million in the first quarter of 2019. Total unrecognized compensation expense relating to outstanding and unvested RSUs was $0.8 million, which will be recognized over the remainder of the vesting period. ​ In 2019 and 2018, each outside director received RSUs with a fair market value that approximated $50 thousand on the date of grant as part of annual director compensation. Director RSUs vest one year from the date of grant. As of March 31, 2020, 15,085 restricted stock units have been granted to directors under the 2015 LTIP and 6,182 remain outstanding. We recognized $0.1 million of compensation expense on these units in the first quarter of 2020, the same amount as in the first quarter of 2019. Total unrecognized compensation expense relating to outstanding and unvested director RSUs was less than $0.1 million, which will be recognized over the remainder of the vesting period.

OPERATING SEGMENT INFORMATION

OPERATING SEGMENT INFORMATION	3 Months Ended
	Mar. 31, 2020
OPERATING SEGMENT INFORMATION
OPERATING SEGMENT INFORMATION	6. OPERATING SEGMENT INFORMATION ​ Selected information by operating segment is presented in the table below. Additionally, the table reconciles segment totals to total earnings and total revenues. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three-Month Periods REVENUES ​ Ended March 31, (in thousands) 2020 2019 Casualty ​ $ 143,420 ​ $ 136,900 Property ​ ​ 44,348 ​ ​ 38,746 Surety ​ ​ 27,814 ​ ​ 29,043 Net premiums earned ​ $ 215,582 ​ $ 204,689 Net investment income ​ ​ 17,778 ​ ​ 16,565 Net realized gains ​ ​ 15,152 ​ ​ 9,068 Net unrealized gains (losses) on equity securities ​ ​ (130,395) ​ ​ 33,498 Total consolidated revenue ​ $ 118,117 ​ $ 263,820 ​ ​ ​ ​ ​ ​ ​ NET EARNINGS (LOSS) ​ ​ (in thousands) 2020 2019 Casualty ​ $ (1,323) ​ $ 5,343 Property ​ ​ 9,908 ​ ​ 8,246 Surety ​ ​ 8,654 ​ ​ 8,844 Net underwriting income ​ $ 17,239 ​ $ 22,433 Net investment income ​ ​ 17,778 ​ ​ 16,565 Net realized gains ​ ​ 15,152 ​ ​ 9,068 Net unrealized gains (losses) on equity securities ​ ​ (130,395) ​ ​ 33,498 General corporate expense and interest on debt ​ ​ (3,652) ​ ​ (5,137) Equity in earnings of unconsolidated investees ​ ​ 4,514 ​ ​ 5,314 Earnings (loss) before income taxes ​ $ (79,364) ​ $ 81,741 Income tax expense (benefit) ​ ​ (18,097) ​ ​ 16,268 Net earnings (loss) ​ $ (61,267) ​ $ 65,473 ​ The following table further summarizes revenues by major product type within each operating segment: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three-Month Periods NET PREMIUMS EARNED ​ Ended March 31, (in thousands) 2020 2019 Casualty ​ ​ ​ ​ ​ ​ Commercial excess and personal umbrella ​ $ 40,088 ​ $ 32,281 General liability ​ ​ 23,998 ​ ​ 23,888 Commercial transportation ​ ​ 21,185 ​ ​ 20,404 Professional services ​ ​ 20,695 ​ ​ 20,299 Small commercial ​ ​ 15,633 ​ ​ 13,188 Executive products ​ ​ 7,331 ​ ​ 6,069 Other casualty ​ ​ 14,490 ​ ​ 20,771 Total ​ $ 143,420 ​ $ 136,900 ​ ​ ​ ​ ​ ​ ​ Property ​ ​ ​ ​ ​ ​ Marine ​ $ 19,577 ​ $ 17,021 Commercial property ​ ​ 19,155 ​ ​ 16,875 Specialty personal ​ ​ 5,000 ​ ​ 4,584 Other property ​ ​ 616 ​ ​ 266 Total ​ $ 44,348 ​ $ 38,746 ​ ​ ​ ​ ​ ​ ​ Surety ​ ​ ​ ​ ​ ​ Commercial ​ $ 10,938 ​ $ 10,812 Miscellaneous ​ ​ 10,516 ​ ​ 11,602 Contract ​ ​ 6,360 ​ ​ 6,629 Total ​ $ 27,814 ​ $ 29,043 ​ ​ ​ ​ ​ ​ ​ Grand Total ​ $ 215,582 ​ $ 204,689 ​

LEASES

LEASES	3 Months Ended
	Mar. 31, 2020
Leases
LEASES	7. LEASES ​ Right-of-use assets are included in the other assets line item and lease liabilities are included in the other liabilities line item of the consolidated balance sheet. We determine if a contract contains a lease at inception and recognize operating lease right-of-use assets and operating lease liabilities based on the present value of the future minimum lease payments at the commencement date. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. Lease agreements may include options to extend or terminate. The options are exercised at our discretion and are included in operating lease liabilities if it is reasonably certain the option will be exercised. Lease agreements have lease and non-lease components, which are accounted for as a single lease component. Lease expense is recognized on a straight-line basis over the lease term. ​ The Company’s operating lease obligations are for branch office facilities. Our leases have remaining lease terms of 1 to 15 years . The components of lease expense and other lease information as of and during the three-month periods ended March 31, 2020 and 2019 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three-Month Period Ended (in thousands) ​ March 31, 2020 March 31, 2019 Operating lease cost ​ $ 1,406 ​ $ 1,481 ​ ​ ​ ​ ​ ​ ​ Cash paid for amounts included in measurement of lease liabilities ​ ​ ​ ​ ​ ​ Operating cash flows from operating leases ​ $ 1,486 ​ $ 1,395 ​ ​ ​ ​ ​ ​ ​ Right-of-use assets obtained in exchange for new operating lease liabilities ​ $ 15 ​ $ 719 ​ ​ ​ ​ ​ ​ ​ Other non-cash reductions to right-of-use assets ​ $ 1,192 ​ $ - ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ March 31, 2020 December 31, 2019 ​ Operating lease right-of-use assets ​ $ 19,889 ​ ​ $ 22,335 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating lease liabilities ​ $ 23,141 ​ ​ $ 24,475 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average remaining lease term - operating leases ​ ​ 4.48 years ​ ​ 4.69 years ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average discount rate - operating leases ​ ​ 2.34 % ​ ​ 2.33 % ​ Future minimum lease payments under non-cancellable leases as of March 31, 2020 were as follows: ​ ​ ​ ​ ​ (in thousands) ​ March 31, 2020 2020 ​ $ 4,505 2021 ​ ​ 5,976 2022 ​ ​ 5,904 2023 ​ ​ 4,386 2024 ​ ​ 2,334 Thereafter ​ ​ 1,365 Total future minimum lease payments ​ $ 24,470 ​ ​ ​ ​ Less imputed interest ​ ​ (1,329) Total operating lease liability ​ $ 23,141 ​

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION	A. BASIS OF PRESENTATION ​ The unaudited condensed consolidated interim financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP) for interim financial reporting and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include all of the disclosures required by GAAP for complete financial statements. As such, these unaudited condensed consolidated interim financial statements should be read in conjunction with our 2019 Annual Report on Form 10-K. Management believes that the disclosures are adequate to make the information presented not misleading, and all normal and recurring adjustments necessary to present fairly the financial position at March 31, 2020 and the results of operations of RLI Corp. and subsidiaries for all periods presented have been made. The results of operations for any interim period are not necessarily indicative of the operating results for a full year. Certain reclassifications were made to 2019 to conform to the classifications used in the current year. ​ The preparation of the unaudited condensed consolidated interim financial statements requires management to make estimates and assumptions relating to the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated interim financial statements and the reported amounts of revenue and expenses during the period. These estimates are inherently subject to change and actual results could differ significantly from these estimates.
ADOPTED ACCOUNTING STANDARDS	B. ADOPTED ACCOUNTING STANDARDS ​ ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ​ ASU 2016-13 was issued to provide more decision-useful information about the expected credit losses on financial instruments. Previous guidance delayed the recognition of credit losses until it was probable a loss had been incurred. This update requires a financial asset measured at amortized cost to be presented at the net amount expected to be collected by means of an allowance for credit losses that is included in net earnings. Credit losses relating to available-for-sale debt securities are also required to be recorded through a reversible allowance for credit losses, but is limited to the amount by which fair value is less than amortized cost. ​ We adopted ASU 2016-13 on January 1, 2020 using the modified-retrospective approach. The standard applied to three of the Company’s balance sheet accounts: available-for-sale fixed income securities, premiums receivable and reinsurance balances recoverable. The impact of this standard was and is expected to continue to be immaterial, as our fixed income portfolio is weighted towards higher rated bonds (85 percent rated A or better at March 31, 2020 and December 31, 2019), we purchase reinsurance from financially strong reinsurers, we have a long history of collecting premium receivables through various economic cycles and we had previously maintained an allowance for uncollectible premium and reinsurance balances. In total, the cumulative-effect adjustment made to the balance sheet as of the beginning of the year resulted in a $1.1 million increase to retained earnings and an increase to accumulated other comprehensive earnings of less than $0.1 million.
REINSURANCE	C. REINSURANCE ​ Ceded unearned premiums and reinsurance balances recoverable on paid and unpaid losses and settlement expenses are reported separately as assets, instead of being netted with the related liabilities, since reinsurance does not relieve the Company of our legal liability to our policyholders. Such balances are subject to the credit risk associated with the individual reinsurer. We continuously monitor the financial condition of our reinsurers and actively follow up on any past due or disputed amounts. As part of our monitoring efforts, we review their annual financial statements, quarterly disclosures and Securities and Exchange Commission (SEC) filings for those reinsurers that are publicly traded. We also review insurance industry developments that may impact the financial condition of our reinsurers. We analyze the credit risk associated with our reinsurance balances recoverable by monitoring the AM Best and Standard & Poor’s (S&P) ratings of our reinsurers. Additionally, we perform an in depth reinsurer financial condition analysis prior to the renewal of our reinsurance placements. ​ We subject our reinsurance recoverables to detailed recoverable tests, including a segment-based analysis using the average default rating percentage by S&P rating. Our policy is to charge to earnings, in the form of a credit allowance, an estimate of unrecoverable amounts from reinsurers. This credit allowance is reviewed on an ongoing basis to ensure that the amount makes a reasonable provision for reinsurance balances that we may be unable to recover. Once regulatory action (such as receivership, finding of insolvency, order of conservation or order of liquidation) is taken against a reinsurer, the paid and unpaid recoverable for the reinsurer are specifically identified and written off through the use of our allowance for estimated unrecoverable amounts from reinsurers. When we write-off such a balance, it is done in full. ​ The allowances for uncollectible amounts on paid and unpaid reinsurance recoverables were $15.7 million and $8.5 million, respectively, at March 31, 2020. At December 31, 2019, the amounts were $15.7 million and $9.4 million, respectively. Adoption of ASU 2016-03 resulted in a $1.3 million decrease to the allowance for uncollectible amounts on reinsurance recoverables in 2020, while other changes in the allowances were due to changes in the amount of reinsurance balances outstanding, the composition of reinsurers from whom the balances were recoverable and their associated S&P default ratings. No write-offs or recoveries were applied to the allowances in the first quarter of 2020. ​
INTANGIBLE ASSETS	D. INTANGIBLE ASSETS ​ Goodwill and intangible assets totaled $54.0 million and $54.1 million at March 31, 2020 and December 31, 2019, respectively, as detailed in the following table: ​ ​ ​ ​ ​ ​ ​ ​ Goodwill and Intangible Assets ​ ​ March 31, ​ ​ December 31, (in thousands) ​ ​ 2020 ​ ​ 2019 Goodwill ​ ​ ​ ​ ​ ​ Energy surety ​ $ 25,706 ​ $ 25,706 Miscellaneous and contract surety ​ ​ 15,110 ​ ​ 15,110 Small commercial ​ ​ 5,246 ​ ​ 5,246 Total goodwill ​ $ 46,062 ​ $ 46,062 ​ ​ ​ ​ ​ ​ ​ Intangibles ​ ​ ​ ​ ​ ​ Indefinite-lived intangibles - state insurance licenses ​ ​ 7,500 ​ ​ 7,500 Definite-lived intangibles, net of accumulated amortization of $3,572 at 3/31/20 and $3,470 at 12/31/19 ​ ​ 463 ​ ​ 565 Total intangibles ​ $ 7,963 ​ $ 8,065 ​ ​ ​ ​ ​ ​ ​ Total goodwill and intangibles ​ $ 54,025 ​ $ 54,127 ​ All definite-lived intangible assets are amortized based on their estimated useful lives. Amortization of intangible assets was $0.1 million for the first quarter of 2020 and 2019. ​ Annual impairment assessment was performed on our energy surety goodwill, miscellaneous and contract surety goodwill , small commercial goodwill and state insurance license indefinite-lived intangible asset during 2019. Based upon these reviews, none of the assets were impaired. In addition, there were no triggering events as of March 31, 2020 that would suggest our goodwill and intangible assets should be tested for impairment.
EARNINGS PER SHARE	E. EARNINGS PER SHARE ​ Basic earnings per share (EPS) excludes dilution and is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the dilution that could occur if securities or other contracts to issue common stock or common stock equivalents were exercised or converted into common stock. When inclusion of common stock equivalents increases the earnings per share or reduces the loss per share, the effect on earnings is anti-dilutive. Under these circumstances, the diluted net earnings or net loss per share is computed excluding the common stock equivalents. The following represents a reconciliation of the numerator and denominator of the basic and diluted EPS computations contained in the unaudited condensed consolidated interim financial statements: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three-Month Period ​ For the Three-Month Period ​ ​ Ended March 31, 2020 ​ Ended March 31, 2019 ​ ​ Income ​ Shares ​ Per Share ​ Income ​ Shares ​ Per Share (in thousands, except per share data) (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic EPS ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings (loss) available to common shareholders $ (61,267) 44,920 $ (1.36) $ 65,473 44,536 $ 1.47 Effect of Dilutive Securities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stock options ​ - - ​ ​ ​ ​ - 351 ​ ​ ​ Diluted EPS ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings (loss) available to common shareholders $ (61,267) 44,920 $ (1.36) $ 65,473 44,887 $ 1.46 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
COMPREHENSIVE EARNINGS	F. COMPREHENSIVE EARNINGS ​ Our comprehensive earnings include net earnings plus after-tax unrealized gains and losses on our fixed income portfolio. In reporting other comprehensive earnings on a net basis in the statement of earnings, we used the federal statutory tax rate of 21 percent. Other comprehensive earnings (loss), as shown in the consolidated statements of earnings and comprehensive earnings, is net of tax expense (benefit) of $(3.5) million and $7.8 million for the first quarter of 2020 and 2019, respectively. ​ Unrealized gains (losses), net of tax, on the fixed income portfolio were $(13.0) million for the first three months of 2020, compared to $29.3 million during the same period last year. Unrealized losses in the first three months of 2020 were attributable to widening credit spreads, which more than offset declines in interest rates and decreased the fair value of securities held in the fixed income portfolio. In contrast, declining interest rates increased the fair value of securities held in the fixed income portfolio in the first three months of 2019. ​ The following table illustrates the changes in the balance of each component of accumulated other comprehensive earnings (loss) for each period presented in the unaudited condensed consolidated interim financial statements: ​ ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ For the Three-Month Periods ​ ​ ​ Ended March 31, ​ Unrealized Gains/Losses on Available-for-Sale Securities 2020 2019 ​ ​ ​ ​ ​ ​ ​ ​ Beginning balance $ 52,473 $ (14,572) Cumulative-effect adjustment of ASU 2016-13 (see note 1.B.) ​ ​ 22 ​ ​ - ​ Adjusted beginning balance ​ $ 52,495 ​ $ (14,572) ​ Other comprehensive earnings before reclassifications ​ (11,880) 29,795 ​ Amounts reclassified from accumulated other comprehensive earnings ​ (1,151) (494) ​ Net current-period other comprehensive earnings (loss) $ (13,031) $ 29,301 Ending balance $ 39,464 $ 14,729 Balance of securities for which an allowance for credit losses has been recognized in net earnings ​ $ 5,727 $ - ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Credit losses on or the sale of an available-for-sale security results in amounts being reclassified from accumulated other comprehensive earnings to current period net earnings. During the first quarter of 2020, $0.8 million of credit loss expense was recognized on available-for sale securities, increasing the allowance for credit losses on fixed income securities to $0.9 million. No write-offs or recoveries were applied to the allowances in the first quarter of 2020. The effects of reclassifications out of accumulated other comprehensive earnings by the respective line items of net earnings are presented in the following table: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount Reclassified from Accumulated Other ​ (in thousands) ​ Comprehensive Earnings ​ ​ ​ For the Three-Month ​ ​ Component of Accumulated ​ Periods Ended March 31, ​ Affected line item in the Other Comprehensive Earnings 2020 2019 Statement of Earnings ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized gains and losses on available-for-sale securities ​ $ 2,306 ​ $ 625 ​ Net realized gains ​ ​ ​ (849) ​ ​ - ​ Credit losses presented within net realized gains ​ ​ $ 1,457 ​ $ 625 ​ Earnings (loss) before income taxes ​ ​ ​ (306) ​ ​ (131) ​ Income tax benefit (expense) ​ ​ $ 1,151 ​ $ 494 ​ Net earnings (loss)
FAIR VALUE MEASUREMENTS	G. FAIR VALUE MEASUREMENTS ​ Fair value is defined as the price in the principal market that would be received for an asset to facilitate an orderly transaction between market participants on the measurement date. We determined the fair value of certain financial instruments based on their underlying characteristics and relevant transactions in the marketplace. We maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ​ The following are the levels of the fair value hierarchy and a brief description of the type of valuation inputs that are used to establish each level. Financial assets are classified based upon the lowest level of significant input that is used to determine fair value. ​ Pricing Level 1 ​ Pricing Level 2 ​ Pricing Level 3 ​ As a part of management’s process to determine fair value, we utilize widely recognized, third-party pricing sources to determine our fair values. We have obtained an understanding of the third-party pricing sources’ valuation methodologies and inputs. The following is a description of the valuation techniques used for financial assets that are measured at fair value, including the general classification of such assets pursuant to the fair value hierarchy. ​ Corporate, Agencies, Government and Municipal Bonds: ​ Mortgage-backed Securities (MBS)/Commercial Mortgage-backed Securities (CMBS) and Asset-backed Securities (ABS): ​ Regulation D Private Placement Securities: average life, as well as investment and non-investment grade matrices created from fixed income indices. Unobservable inputs include a liquidity spread premium calculated based on public corporate spread and private corporate spread matrices. The quantitative detail of the liquidity spread premium is neither provided nor reasonably available to the Company. An increase to the credit spread assumptions would result in a lower fair value measurement. ​ For all of our fixed income securities classified as Level 2, as described above, we periodically conduct a review to assess the reasonableness of the fair values provided by our pricing services. Our review consists of a two-pronged approach. First, we compare prices provided by our pricing services to those provided by an additional source. In some cases, we obtain prices from securities brokers and compare them to the prices provided by our pricing services. In both comparisons, if discrepancies are found, we compare our prices to actual reported trade data for like securities. No changes to the fair values supplied by our pricing services have occurred as a result of our reviews. Based on these assessments, we have determined that the fair values of our Level 2 securities provided by our pricing services are reasonable. ​ Common Stock: ​ Due to the relatively short-term nature of cash, short-term investments, accounts receivable and accounts payable, their carrying amounts are reasonable estimates of fair value. Our investments in private funds, classified as other invested assets, are measured using the investments’ net asset value per share and are not categorized within the fair value hierarchy.
RISKS AND UNCERTAINTIES	H. RISKS AND UNCERTAINTIES ​ Certain risks and uncertainties are inherent to our day-to-day operations. Adverse changes in the economy could lower demand for our insurance products or negatively impact our investment results, both of which could have an adverse effect on the revenue and profitability of our operations. The global COVID-19 pandemic has resulted in and is expected to continue to result in significant disruptions in economic activity and financial markets. The cumulative effects of COVID-19 on the Company, and the effect of any other public health outbreak, cannot be predicted at this time, but could reduce demand for our insurance policies, result in increased level of losses, settlement expenses or other operating costs, reduce the market value of invested assets held by the Company or negatively impact the fair value of our goodwill. ​ Catastrophe Exposures ​ Our catastrophe reinsurance treaty renewed on January 1, 2020. We purchased limits of $400 million in excess of $25 million first-dollar retention for earthquakes in California, $425 million in excess of $25 million first-dollar retention for earthquakes outside of California and $275 million in excess of $25 million first-dollar retention for all other perils. These amounts are subject to certain co-participations by the Company on losses in excess of the $25 million retentions. On March 1, 2020, we purchased $100 million of additional catastrophe reinsurance protection on top of the previously described coverage. This increases the limits to $500 million for earthquakes in California, $525 million for earthquakes outside of California and $375 for all other perils, all of which are still subject to $25 million first-dollar retentions and certain co-participations in excess of the retentions.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Mar. 31, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Schedule of goodwill and intangible assets	​ ​ ​ ​ ​ ​ ​ ​ Goodwill and Intangible Assets ​ ​ March 31, ​ ​ December 31, (in thousands) ​ ​ 2020 ​ ​ 2019 Goodwill ​ ​ ​ ​ ​ ​ Energy surety ​ $ 25,706 ​ $ 25,706 Miscellaneous and contract surety ​ ​ 15,110 ​ ​ 15,110 Small commercial ​ ​ 5,246 ​ ​ 5,246 Total goodwill ​ $ 46,062 ​ $ 46,062 ​ ​ ​ ​ ​ ​ ​ Intangibles ​ ​ ​ ​ ​ ​ Indefinite-lived intangibles - state insurance licenses ​ ​ 7,500 ​ ​ 7,500 Definite-lived intangibles, net of accumulated amortization of $3,572 at 3/31/20 and $3,470 at 12/31/19 ​ ​ 463 ​ ​ 565 Total intangibles ​ $ 7,963 ​ $ 8,065 ​ ​ ​ ​ ​ ​ ​ Total goodwill and intangibles ​ $ 54,025 ​ $ 54,127
Schedule of reconciliation of numerator and denominator of the basic and diluted earnings per share computations	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three-Month Period ​ For the Three-Month Period ​ ​ Ended March 31, 2020 ​ Ended March 31, 2019 ​ ​ Income ​ Shares ​ Per Share ​ Income ​ Shares ​ Per Share (in thousands, except per share data) (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic EPS ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings (loss) available to common shareholders $ (61,267) 44,920 $ (1.36) $ 65,473 44,536 $ 1.47 Effect of Dilutive Securities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stock options ​ - - ​ ​ ​ ​ - 351 ​ ​ ​ Diluted EPS ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings (loss) available to common shareholders $ (61,267) 44,920 $ (1.36) $ 65,473 44,887 $ 1.46 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of changes in the balance of each component of accumulated other comprehensive earnings	​ ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ For the Three-Month Periods ​ ​ ​ Ended March 31, ​ Unrealized Gains/Losses on Available-for-Sale Securities 2020 2019 ​ ​ ​ ​ ​ ​ ​ ​ Beginning balance $ 52,473 $ (14,572) Cumulative-effect adjustment of ASU 2016-13 (see note 1.B.) ​ ​ 22 ​ ​ - ​ Adjusted beginning balance ​ $ 52,495 ​ $ (14,572) ​ Other comprehensive earnings before reclassifications ​ (11,880) 29,795 ​ Amounts reclassified from accumulated other comprehensive earnings ​ (1,151) (494) ​ Net current-period other comprehensive earnings (loss) $ (13,031) $ 29,301 Ending balance $ 39,464 $ 14,729 Balance of securities for which an allowance for credit losses has been recognized in net earnings ​ $ 5,727 $ - ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of effects of reclassifications out of accumulated other comprehensive earnings	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount Reclassified from Accumulated Other ​ (in thousands) ​ Comprehensive Earnings ​ ​ ​ For the Three-Month ​ ​ Component of Accumulated ​ Periods Ended March 31, ​ Affected line item in the Other Comprehensive Earnings 2020 2019 Statement of Earnings ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized gains and losses on available-for-sale securities ​ $ 2,306 ​ $ 625 ​ Net realized gains ​ ​ ​ (849) ​ ​ - ​ Credit losses presented within net realized gains ​ ​ $ 1,457 ​ $ 625 ​ Earnings (loss) before income taxes ​ ​ ​ (306) ​ ​ (131) ​ Income tax benefit (expense) ​ ​ $ 1,151 ​ $ 494 ​ Net earnings (loss)

INVESTMENTS (Tables)

INVESTMENTS (Tables)	3 Months Ended
	Mar. 31, 2020
Schedule of disposition of fixed maturities and equities	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ SALES ​ Proceeds ​ Gross Realized ​ Net Realized (in thousands) From Sales Gains Losses Gain (Loss) 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Available-for-sale ​ $ 19,858 ​ $ 2,270 ​ $ (102) ​ $ 2,168 Equities ​ 38,042 ​ 17,792 ​ (2,633) ​ 15,159 2019 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Available-for-sale ​ $ 92,277 ​ $ 1,356 ​ $ (723) ​ $ 633 Equities ​ 26,347 ​ 9,034 ​ (592) ​ 8,442 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ CALLS/MATURITIES ​ ​ ​ ​ Gross Realized ​ Net Realized (in thousands) Proceeds Gains Losses Gain (Loss) 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Available-for-sale ​ $ 54,890 ​ $ 145 ​ $ (7) ​ $ 138 2019 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Available-for-sale ​ $ 24,745 ​ $ 1 ​ $ (9) ​ $ (8)
Fair Value, Assets Measured on Recurring Basis	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of March 31, 2020 ​ ​ Fair Value Measurements Using ​ Quoted Prices in Significant Other Significant ​ ​ ​ Active Markets for ​ Observable ​ Unobservable ​ ​ ​ ​ Identical Assets ​ Inputs ​ Inputs ​ ​ (in thousands) (Level 1) (Level 2) (Level 3) Total Fixed income securities - available-for-sale ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. government ​ $ — ​ $ 186,974 ​ $ — ​ $ 186,974 U.S. agency ​ ​ — ​ ​ 37,042 ​ ​ — ​ ​ 37,042 Non-U.S. govt. & agency ​ ​ — ​ ​ 7,316 ​ ​ — ​ ​ 7,316 Agency MBS ​ ​ — ​ ​ 414,262 ​ ​ — ​ ​ 414,262 ABS/CMBS* ​ ​ — ​ ​ 223,601 ​ ​ — ​ ​ 223,601 Corporate ​ ​ — ​ ​ 683,615 ​ ​ 4,803 ​ ​ 688,418 Municipal ​ ​ — ​ ​ 405,972 ​ ​ — ​ ​ 405,972 Total fixed income securities - available-for-sale ​ $ — ​ $ 1,958,782 ​ $ 4,803 ​ $ 1,963,585 Equity securities ​ ​ 356,403 ​ ​ — ​ ​ — ​ ​ 356,403 Other invested assets ​ ​ 12,056 ​ ​ — ​ ​ — ​ ​ 12,056 Total ​ $ 368,459 ​ $ 1,958,782 ​ $ 4,803 ​ $ 2,332,044 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2019 ​ ​ Fair Value Measurements Using ​ ​ Quoted Prices in Significant Other Significant ​ ​ ​ Active Markets for ​ Observable ​ Unobservable ​ ​ ​ ​ Identical Assets ​ Inputs ​ Inputs ​ ​ (in thousands) (Level 1) (Level 2) (Level 3) Total Fixed income securities - available-for-sale ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. government ​ $ — ​ $ 193,661 ​ $ — ​ $ 193,661 U.S. agency ​ ​ — ​ ​ 38,855 ​ ​ — ​ ​ 38,855 Non-U.S. govt. & agency ​ ​ — ​ ​ 7,628 ​ ​ — ​ ​ 7,628 Agency MBS ​ ​ — ​ ​ 420,165 ​ ​ — ​ ​ 420,165 ABS/CMBS* ​ ​ — ​ ​ 224,870 ​ ​ — ​ ​ 224,870 Corporate ​ ​ — ​ ​ 690,297 ​ ​ 1,770 ​ ​ 692,067 Municipal ​ ​ — ​ ​ 405,840 ​ ​ — ​ ​ 405,840 Total fixed income securities - available-for-sale ​ $ — ​ $ 1,981,316 ​ $ 1,770 ​ $ 1,983,086 Equity securities ​ ​ 460,630 ​ ​ — ​ ​ — ​ ​ 460,630 Total ​ $ 460,630 ​ $ 1,981,316 ​ $ 1,770 ​ $ 2,443,716 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ * Non-agency asset-backed and commercial mortgage-backed
Summary of changes in balance of Level 3 securities	​ ​ ​ ​ ​ ​ ​ Level 3 (in thousands) ​ Securities Balance as of January 1, 2020 ​ $ 1,770 Net realized and unrealized gains (losses) ​ ​ Included in net earnings (loss) as a part of: ​ ​ ​ Net investment income ​ ​ (5) Net realized gains ​ ​ (16) Included in other comprehensive earnings (loss) ​ (1,048) Total net realized and unrealized gains (losses) ​ $ (1,069) Purchases ​ ​ 4,102 Balance as of March 31, 2020 ​ $ 4,803 ​ ​ ​ ​ Change in unrealized gains (losses) during the period for Level 3 assets held at period-end - ​ $ (16) Change in unrealized gains (losses) during the period for Level 3 assets held at period-end - ​ $ (1,048)
Schedule of amortized cost and fair value of available-for-sale securities	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Available-for-sale ​ March 31, 2020 (in thousands) Cost or ​ Allowance Gross Gross ​ ​ ​ Amortized ​ for Credit ​ Unrealized ​ Unrealized ​ Fair Asset Class Cost ​ Losses ​ Gains Losses Value U.S. government ​ $ 171,026 ​ $ - ​ $ 15,948 ​ $ - ​ $ 186,974 U.S. agency ​ ​ 32,236 ​ ​ - ​ ​ 4,806 ​ ​ - ​ ​ 37,042 Non-U.S. govt. & agency ​ ​ 7,324 ​ ​ - ​ ​ 105 ​ ​ (113) ​ ​ 7,316 Agency MBS ​ ​ 396,474 ​ ​ - ​ ​ 17,807 ​ ​ (19) ​ ​ 414,262 ABS/CMBS* ​ ​ 230,830 ​ ​ (21) ​ ​ 1,908 ​ ​ (9,116) ​ ​ 223,601 Corporate ​ ​ 685,116 ​ ​ (857) ​ ​ 23,364 ​ ​ (19,205) ​ ​ 688,418 Municipal ​ ​ 389,845 ​ ​ - ​ ​ 16,203 ​ ​ (76) ​ ​ 405,972 Total Fixed Income ​ $ 1,912,851 ​ $ (878) ​ $ 80,141 ​ $ (28,529) ​ $ 1,963,585 *Non-agency asset-backed and commercial mortgage-backed ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Available-for-sale ​ December 31, 2019 (in thousands) Cost or ​ Allowance Gross Gross ​ ​ ​ Amortized ​ for Credit ​ Unrealized ​ Unrealized ​ Fair Asset Class Cost ​ Losses Gains Losses Value U.S. government ​ $ 186,699 ​ $ - ​ $ 6,994 ​ $ (32) ​ $ 193,661 U.S. agency ​ ​ 36,535 ​ ​ - ​ ​ 2,362 ​ ​ (42) ​ ​ 38,855 Non-U.S. govt. & agency ​ ​ 7,333 ​ ​ - ​ ​ 295 ​ ​ - ​ ​ 7,628 Agency MBS ​ ​ 411,808 ​ ​ - ​ ​ 8,920 ​ ​ (563) ​ ​ 420,165 ABS/CMBS* ​ ​ 222,832 ​ ​ - ​ ​ 2,514 ​ ​ (476) ​ ​ 224,870 Corporate ​ ​ 659,640 ​ ​ - ​ ​ 33,245 ​ ​ (818) ​ ​ 692,067 Municipal ​ ​ 390,431 ​ ​ - ​ ​ 16,131 ​ ​ (722) ​ ​ 405,840 Total Fixed Income ​ $ 1,915,278 ​ $ - ​ $ 70,461 ​ $ (2,653) ​ $ 1,983,086 *Non-agency asset-backed and commercial mortgage-backed
Schedule of securities in an unrealized loss position segregated by type and length of time in an unrealized loss position	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2020 ​ December 31, 2019 (in thousands) < 12 Mos. 12 Mos. & Total < 12 Mos. 12 Mos. & Total ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. government ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value ​ $ — ​ $ — ​ $ — ​ $ 2,505 ​ $ 8,463 ​ $ 10,968 Amortized cost ​ ​ — ​ ​ — ​ ​ — ​ ​ 2,506 ​ ​ 8,494 ​ ​ 11,000 Unrealized Loss ​ $ — ​ $ — ​ $ — ​ $ (1) ​ $ (31) ​ $ (32) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. agency ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value ​ $ — ​ $ — ​ $ — ​ $ 6,794 ​ $ — ​ $ 6,794 Amortized cost ​ ​ — ​ ​ — ​ ​ — ​ ​ 6,836 ​ ​ — ​ ​ 6,836 Unrealized Loss ​ $ — ​ $ — ​ $ — ​ $ (42) ​ $ — ​ $ (42) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-U.S. government ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value ​ $ 3,011 ​ $ — ​ $ 3,011 ​ $ — ​ $ — ​ $ — Amortized cost ​ ​ 3,124 ​ ​ — ​ ​ 3,124 ​ ​ — ​ ​ — ​ ​ — Unrealized Loss ​ $ (113) ​ $ — ​ $ (113) ​ $ — ​ $ — ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Agency MBS ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value ​ $ 249 ​ $ 1,296 ​ $ 1,545 ​ $ 21,548 ​ $ 41,718 ​ $ 63,266 Amortized cost ​ ​ 249 ​ ​ 1,315 ​ ​ 1,564 ​ ​ 21,664 ​ ​ 42,165 ​ ​ 63,829 Unrealized Loss ​ $ — ​ $ (19) ​ $ (19) ​ $ (116) ​ $ (447) ​ $ (563) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ABS/CMBS* ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value ​ $ 126,540 ​ $ 15,405 ​ $ 141,945 ​ $ 74,968 ​ $ 18,036 ​ $ 93,004 Amortized cost ​ ​ 134,660 ​ ​ 16,401 ​ ​ 151,061 ​ ​ 75,332 ​ ​ 18,148 ​ ​ 93,480 Unrealized Loss ​ $ (8,120) ​ $ (996) ​ $ (9,116) ​ $ (364) ​ $ (112) ​ $ (476) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Corporate ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value ​ $ 220,349 ​ $ 4,182 ​ $ 224,531 ​ $ 16,478 ​ $ 9,348 ​ $ 25,826 Amortized cost ​ ​ 238,510 ​ ​ 5,226 ​ ​ 243,736 ​ ​ 16,950 ​ ​ 9,694 ​ ​ 26,644 Unrealized Loss ​ $ (18,161) ​ $ (1,044) ​ $ (19,205) ​ $ (472) ​ $ (346) ​ $ (818) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Municipal ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value ​ $ 7,301 ​ $ — ​ $ 7,301 ​ $ 47,018 ​ $ — ​ $ 47,018 Amortized cost ​ ​ 7,377 ​ ​ — ​ ​ 7,377 ​ ​ 47,740 ​ ​ — ​ ​ 47,740 Unrealized Loss ​ $ (76) ​ $ — ​ $ (76) ​ $ (722) ​ $ — ​ $ (722) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total fixed income ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value ​ $ 357,450 ​ $ 20,883 ​ $ 378,333 ​ $ 169,311 ​ $ 77,565 ​ $ 246,876 Amortized cost ​ ​ 383,920 ​ ​ 22,942 ​ ​ 406,862 ​ ​ 171,028 ​ ​ 78,501 ​ ​ 249,529 Unrealized Loss ​ $ (26,470) ​ $ (2,059) ​ $ (28,529) ​ $ (1,717) ​ $ (936) ​ $ (2,653) * Non-agency asset-backed and commercial mortgage-backed
Schedule of credit quality indicators for investments in unrealized loss positions	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Equivalent ​ Equivalent ​ (dollars in thousands) ​ ​ ​ NAIC S&P Moody’s ​ Amortized ​ Unrealized ​ Percent ​ Rating Rating Rating Cost Fair Value Loss to Total ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1 ​ AAA/AA/A ​ Aaa/Aa/A ​ $ 202,517 ​ $ 191,912 ​ $ (10,605) ​ 37.2 % 2 ​ BBB ​ Baa ​ ​ 85,785 ​ ​ 80,759 ​ ​ (5,026) ​ 17.6 % 3 ​ BB ​ Ba ​ ​ 65,256 ​ ​ 59,398 ​ ​ (5,858) ​ 20.5 % 4 ​ B ​ B ​ ​ 50,630 ​ ​ 44,392 ​ ​ (6,238) ​ 21.9 % 5 ​ CCC ​ Caa ​ ​ 2,674 ​ ​ 1,872 ​ ​ (802) ​ 2.8 % 6 ​ CC or lower ​ Ca or lower ​ ​ - ​ ​ - ​ ​ - ​ - % ​ ​ ​ ​ Total ​ $ 406,862 ​ $ 378,333 ​ $ (28,529) ​ 100.0 %
Available for sale securities
Schedule of contractual maturity of securities	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2020 Available-for-sale ​ Amortized ​ Fair (in thousands) Cost Value Due in one year or less ​ $ 56,844 ​ $ 56,702 Due after one year through five years ​ ​ 442,572 ​ ​ 449,447 Due after five years through 10 years ​ ​ 549,193 ​ ​ 569,898 Due after 10 years ​ ​ 236,938 ​ ​ 249,675 Mtge/ABS/CMBS* ​ ​ 627,304 ​ ​ 637,863 Total available-for-sale ​ $ 1,912,851 ​ $ 1,963,585 *Mortgage-backed, asset-backed and commercial mortgage-backed

HISTORICAL LOSS AND LAE DEVEL_2

HISTORICAL LOSS AND LAE DEVELOPMENT (Tables)	3 Months Ended
	Mar. 31, 2020
HISTORICAL LOSS AND LAE DEVELOPMENT
Schedule of reconciliation of unpaid losses and settlement expenses (LAE)	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three-Month Periods ​ ​ Ended March 31, (in thousands) 2020 2019 Unpaid losses and LAE at beginning of year ​ ​ ​ ​ ​ ​ Gross ​ $ 1,574,352 ​ $ 1,461,348 Ceded ​ (384,517) ​ (364,999) Net ​ $ 1,189,835 ​ $ 1,096,349 ​ ​ ​ ​ ​ ​ ​ Adoption impact of ASU 2016-13 on reinsurance balances recoverable ​ $ (1,345) ​ $ — ​ ​ ​ ​ ​ ​ ​ Increase (decrease) in incurred losses and LAE ​ ​ ​ ​ ​ ​ Current accident year ​ $ 126,194 ​ $ 113,930 Prior accident years ​ (15,173) ​ (19,633) Total incurred ​ $ 111,021 ​ $ 94,297 ​ ​ ​ ​ ​ ​ ​ Loss and LAE payments for claims incurred ​ ​ ​ ​ ​ ​ Current accident year ​ $ (9,295) ​ $ (5,531) Prior accident years ​ (81,897) ​ (70,145) Total paid ​ $ (91,192) ​ $ (75,676) ​ ​ ​ ​ ​ ​ ​ Net unpaid losses and LAE at March 31 ​ $ 1,208,319 ​ $ 1,114,970 ​ ​ ​ ​ ​ ​ ​ Unpaid losses and LAE at March 31 ​ ​ ​ ​ ​ ​ Gross ​ $ 1,574,760 ​ $ 1,479,344 Ceded ​ (366,441) ​ (364,374) Net ​ $ 1,208,319 ​ $ 1,114,970

INCOME TAXES (Tables)

INCOME TAXES (Tables)	3 Months Ended
	Mar. 31, 2020
INCOME TAXES
Schedule of reconciliation of income tax expense attributable to income from operations with amounts computed by applying the U.S. federal tax rate to pretax income from continuing operations	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three-Month Periods Ended March 31, ​ ​ 2020 ​ ​ 2019 ​ (in thousands) Amount % Amount % ​ Provision for income taxes at the statutory rate of 21% ​ $ (16,666) ​ 21.0 % ​ $ 17,166 ​ 21.0 % Increase (reduction) in taxes resulting from: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Excess tax benefit on share-based compensation ​ ​ (1,029) ​ 1.3 % ​ ​ (741) ​ (0.9) % Tax exempt interest income ​ ​ (313) ​ 0.4 % ​ ​ (345) ​ (0.4) % Dividends received deduction ​ ​ (271) ​ 0.3 % ​ ​ (203) ​ (0.2) % ESOP dividends paid deduction ​ ​ (132) ​ 0.2 % ​ ​ (137) ​ (0.2) % Nondeductible expenses ​ ​ 203 ​ (0.3) % ​ ​ 509 ​ 0.6 % Other items, net ​ ​ 111 ​ (0.1) % ​ ​ 19 ​ 0.0 % Total tax expense (benefit) ​ $ (18,097) ​ 22.8 % ​ $ 16,268 ​ 19.9 %

STOCK BASED COMPENSATION (Table

STOCK BASED COMPENSATION (Tables)	3 Months Ended
	Mar. 31, 2020
STOCK BASED COMPENSATION
Schedule of stock option activity	The following tables summarize option activity for the three-month periods ended March 31, 2020 and 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ Weighted ​ Average ​ Aggregate ​ ​ Number of ​ Average ​ Remaining ​ Intrinsic ​ ​ Options ​ Exercise ​ Contractual ​ Value ​ Outstanding Price Life (in 000’s) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding options at January 1, 2020 ​ 1,667,290 ​ $ 62.52 ​ ​ ​ ​ ​ Options granted ​ 30,375 ​ ​ 94.62 ​ ​ ​ ​ ​ Options exercised ​ (56,725) ​ ​ 49.23 ​ ​ ​ $ 2,516 Options canceled/forfeited ​ (300) ​ ​ 58.60 ​ ​ ​ ​ ​ Outstanding options at March 31, 2020 ​ 1,640,640 ​ $ 63.58 ​ 5.10 ​ $ 40,778 Exercisable options at March 31, 2020 ​ 614,040 ​ $ 54.68 ​ 3.75 ​ $ 20,438 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ Weighted ​ Average ​ Aggregate ​ ​ Number of ​ Average ​ Remaining ​ Intrinsic ​ ​ Options ​ Exercise ​ Contractual ​ Value ​ Outstanding Price Life (in 000’s) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding options at January 1, 2019 ​ 1,964,880 ​ $ 54.24 ​ ​ ​ ​ ​ Options granted ​ 40,750 ​ ​ 66.16 ​ ​ ​ ​ ​ Options exercised ​ (50,580) ​ ​ 33.71 ​ ​ ​ $ 1,795 Options canceled/forfeited ​ (19,100) ​ ​ 57.28 ​ ​ ​ ​ ​ Outstanding options at March 31, 2019 ​ 1,935,950 ​ $ 55.00 ​ 5.14 ​ $ 32,589 Exercisable options at March 31, 2019 ​ 702,250 ​ $ 47.84 ​ 3.73 ​ $ 16,794
Schedule of stock option assumptions for fair value estimate	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2020 ​ 2019 ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average fair value of grants ​ $ 14.48 ​ ​ $ 11.35 ​ Risk-free interest rates ​ ​ 1.54 % ​ ​ 2.94 % Dividend yield ​ ​ 2.69 % ​ ​ 2.98 % Expected volatility ​ ​ 22.68 % ​ ​ 22.84 % Expected option life ​ ​ 4.99 years ​ ​ 5.11 years

OPERATING SEGMENT INFORMATION (

OPERATING SEGMENT INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2020
OPERATING SEGMENT INFORMATION
Schedule of revenues and net earnings by segment	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three-Month Periods REVENUES ​ Ended March 31, (in thousands) 2020 2019 Casualty ​ $ 143,420 ​ $ 136,900 Property ​ ​ 44,348 ​ ​ 38,746 Surety ​ ​ 27,814 ​ ​ 29,043 Net premiums earned ​ $ 215,582 ​ $ 204,689 Net investment income ​ ​ 17,778 ​ ​ 16,565 Net realized gains ​ ​ 15,152 ​ ​ 9,068 Net unrealized gains (losses) on equity securities ​ ​ (130,395) ​ ​ 33,498 Total consolidated revenue ​ $ 118,117 ​ $ 263,820 ​ ​ ​ ​ ​ ​ ​ NET EARNINGS (LOSS) ​ ​ (in thousands) 2020 2019 Casualty ​ $ (1,323) ​ $ 5,343 Property ​ ​ 9,908 ​ ​ 8,246 Surety ​ ​ 8,654 ​ ​ 8,844 Net underwriting income ​ $ 17,239 ​ $ 22,433 Net investment income ​ ​ 17,778 ​ ​ 16,565 Net realized gains ​ ​ 15,152 ​ ​ 9,068 Net unrealized gains (losses) on equity securities ​ ​ (130,395) ​ ​ 33,498 General corporate expense and interest on debt ​ ​ (3,652) ​ ​ (5,137) Equity in earnings of unconsolidated investees ​ ​ 4,514 ​ ​ 5,314 Earnings (loss) before income taxes ​ $ (79,364) ​ $ 81,741 Income tax expense (benefit) ​ ​ (18,097) ​ ​ 16,268 Net earnings (loss) ​ $ (61,267) ​ $ 65,473
Schedule of net premiums earned by major product type	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three-Month Periods NET PREMIUMS EARNED ​ Ended March 31, (in thousands) 2020 2019 Casualty ​ ​ ​ ​ ​ ​ Commercial excess and personal umbrella ​ $ 40,088 ​ $ 32,281 General liability ​ ​ 23,998 ​ ​ 23,888 Commercial transportation ​ ​ 21,185 ​ ​ 20,404 Professional services ​ ​ 20,695 ​ ​ 20,299 Small commercial ​ ​ 15,633 ​ ​ 13,188 Executive products ​ ​ 7,331 ​ ​ 6,069 Other casualty ​ ​ 14,490 ​ ​ 20,771 Total ​ $ 143,420 ​ $ 136,900 ​ ​ ​ ​ ​ ​ ​ Property ​ ​ ​ ​ ​ ​ Marine ​ $ 19,577 ​ $ 17,021 Commercial property ​ ​ 19,155 ​ ​ 16,875 Specialty personal ​ ​ 5,000 ​ ​ 4,584 Other property ​ ​ 616 ​ ​ 266 Total ​ $ 44,348 ​ $ 38,746 ​ ​ ​ ​ ​ ​ ​ Surety ​ ​ ​ ​ ​ ​ Commercial ​ $ 10,938 ​ $ 10,812 Miscellaneous ​ ​ 10,516 ​ ​ 11,602 Contract ​ ​ 6,360 ​ ​ 6,629 Total ​ $ 27,814 ​ $ 29,043 ​ ​ ​ ​ ​ ​ ​ Grand Total ​ $ 215,582 ​ $ 204,689

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Mar. 31, 2020
Leases
Schedule of components of lease expense and other lease information	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three-Month Period Ended (in thousands) ​ March 31, 2020 March 31, 2019 Operating lease cost ​ $ 1,406 ​ $ 1,481 ​ ​ ​ ​ ​ ​ ​ Cash paid for amounts included in measurement of lease liabilities ​ ​ ​ ​ ​ ​ Operating cash flows from operating leases ​ $ 1,486 ​ $ 1,395 ​ ​ ​ ​ ​ ​ ​ Right-of-use assets obtained in exchange for new operating lease liabilities ​ $ 15 ​ $ 719 ​ ​ ​ ​ ​ ​ ​ Other non-cash reductions to right-of-use assets ​ $ 1,192 ​ $ - ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ March 31, 2020 December 31, 2019 ​ Operating lease right-of-use assets ​ $ 19,889 ​ ​ $ 22,335 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating lease liabilities ​ $ 23,141 ​ ​ $ 24,475 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average remaining lease term - operating leases ​ ​ 4.48 years ​ ​ 4.69 years ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average discount rate - operating leases ​ ​ 2.34 % ​ ​ 2.33 % ​
Schedule of future minimum lease payments under non-cancellable leases	​ ​ ​ ​ ​ (in thousands) ​ March 31, 2020 2020 ​ $ 4,505 2021 ​ ​ 5,976 2022 ​ ​ 5,904 2023 ​ ​ 4,386 2024 ​ ​ 2,334 Thereafter ​ ​ 1,365 Total future minimum lease payments ​ $ 24,470 ​ ​ ​ ​ Less imputed interest ​ ​ (1,329) Total operating lease liability ​ $ 23,141

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accounting Standards (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Retained earnings	$ 943,509	$ 1,014,046
Accumulated other comprehensive earnings	$ 39,464	$ 52,473
Percentage Of Fixed Income Portfolio Rated A Or Better	85.00%	85.00%
Accounting Standards Update 2016-13 | Restatement Adjustment
Retained earnings		$ 1,100
Accounting Standards Update 2016-13 | Restatement Adjustment | Maximum
Accumulated other comprehensive earnings		$ 100

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reinsurance (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Amount of allowance for uncollectible amounts on paid recoverables	$ 15,700,000	$ 15,700,000
Reinsurance balances recoverable on unpaid losses and settlement expenses, allowances for uncollectible amounts	8,539,000	9,402,000
Financing Receivable, Allowance for Credit Loss, Writeoff	0
Financing Receivable, Allowance for Credit Loss, Recovery	$ 0
Restatement Adjustment | Accounting Standards Update 2016-13
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Adoption impact of ASU 2016-13 on reinsurance balances recoverable		$ 1,345,000

SUMMARY OF SIGNIFICANT ACCOUN_6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Intangible Assets and EPS (Details) - USD ($) $ / shares in Units, shares in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Business Acquisition
Goodwill	$ 46,062,000		$ 46,062,000
Indefinite-lived intangibles - state insurance licenses	7,500,000		7,500,000
Definite-lived intangibles, net of accumulated amortization of $3,572 at 3/31/20 and $3,470 at 12/31/19	463,000		565,000
Total intangibles	7,963,000		8,065,000
Goodwill and intangibles	54,025,000		54,127,000
Accumulated amortization of definite-lived intangibles	3,572,000		3,470,000
Amortization of intangible assets	100,000	$ 100,000
Basic EPS, Income (Numerator)
Income available to common shareholders	(61,267,000)	65,473,000
Diluted EPS, Income (Numerator)
Income available to common shareholders	$ (61,267,000)	$ 65,473,000
Basic EPS, Weighted Average Shares (Denominator)
Number of shares outstanding	44,920	44,536
Effect of Dilutive Securities, Shares (Denominator)
Stock options (in shares)		351
Diluted EPS, Weighted Average Shares (Denominator)
Number of shares outstanding	44,920	44,887
Basic EPS, Per Share Amount
Basic net earnings per share (in dollars per share)	$ (1.36)	$ 1.47
Diluted EPS, Per Share Amount
Diluted earnings per share (in dollars per share)	$ (1.36)	$ 1.46
Contractors Bonding and Insurance Company
Business Acquisition
Impairment of indefinite-lived intangible assets			0
Energy Surety
Business Acquisition
Goodwill	$ 25,706,000		25,706,000
Goodwill, Impairment Loss			0
Miscellaneous and Contract Surety
Business Acquisition
Goodwill	15,110,000		15,110,000
Goodwill, Impairment Loss			0
Small commercial
Business Acquisition
Goodwill	$ 5,246,000		5,246,000
Goodwill, Impairment Loss			$ 0

SUMMARY OF SIGNIFICANT ACCOUN_7

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Changes in Accumulated Other Comprehensive Earnings (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
COMPREHENSIVE EARNINGS
Tax rate used (as a percent)	21.00%	21.00%
Other comprehensive income (loss), tax	$ (3,500,000)	$ 7,800,000
Changes in the balance of each component of accumulated other comprehensive earnings
Beginning balance	52,473,000
Net current-period other comprehensive earnings (loss)	(13,031,000)	29,301,000
Ending balance	39,464,000
Balance of securities for which an allowance for credit losses has been recognized in net earnings	5,727,000
Reclassification Adjustment Out of Accumulated Other Comprehensive Income
Net realized gains	15,152,000	9,068,000
Credit losses on available-for-sale securities	800,000
Earnings (loss) before income taxes	(79,364,000)	81,741,000
Income tax expense (benefit)	18,097,000	(16,268,000)
Net earnings (loss)	(61,267,000)	65,473,000
Allowance for credit losses	878,000		$ 0
Debt Securities, Available-for-sale, Allowance for Credit Loss, Writeoff	0
Debt Securities, Available-for-sale, Allowance for Credit Loss, Recovery	0
Unrealized Gains and Losses on Available-for-Sale Securities
Changes in the balance of each component of accumulated other comprehensive earnings
Beginning balance	52,495,000	(14,572,000)
Other comprehensive earnings before reclassifications	(11,880,000)	29,795,000
Amounts reclassified from accumulated other comprehensive earnings	(1,151,000)	(494,000)
Net current-period other comprehensive earnings (loss)	(13,031,000)	29,301,000
Ending balance	39,464,000	14,729,000
Unrealized Gains and Losses on Available-for-Sale Securities | Previously Reported
Changes in the balance of each component of accumulated other comprehensive earnings
Beginning balance	52,473,000	(14,572,000)
Unrealized Gains and Losses on Available-for-Sale Securities | Restatement Adjustment | Accounting Standards Update 2016-13
Changes in the balance of each component of accumulated other comprehensive earnings
Beginning balance	22,000
Reclassifications out of accumulated other comprehensive earnings | Unrealized Gains and Losses on Available-for-Sale Securities
Reclassification Adjustment Out of Accumulated Other Comprehensive Income
Net realized gains	2,306,000	625,000
Credit losses on available-for-sale securities	849,000
Earnings (loss) before income taxes	1,457,000	625,000
Income tax expense (benefit)	(306,000)	(131,000)
Net earnings (loss)	$ 1,151,000	$ 494,000

SUMMARY OF SIGNIFICANT ACCOUN_8

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Catastrophe Exposures (Details) - USD ($) $ in Millions	Mar. 01, 2020	Feb. 29, 2020	Dec. 31, 2020
Catastrophe Exposures
First-dollar retention		$ 25	$ 25
Additional catastrophe reinsurance	$ 100
California earthquake
Catastrophe Exposures
Catastrophe reinsurance		400
First-dollar retention		25
Total catastrophe reinsurance			500
Non-California earthquake
Catastrophe Exposures
Catastrophe reinsurance		425
First-dollar retention		25
Total catastrophe reinsurance			525
Other perils
Catastrophe Exposures
Catastrophe reinsurance		275
First-dollar retention		$ 25
Total catastrophe reinsurance			$ 375

INVESTMENTS - Disposition of Fi

INVESTMENTS - Disposition of Fixed Securities and Equities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Debt securities | Available for sale securities | SALES
Summary of the disposition of fixed income and equity securities
Proceeds From Sales	$ 19,858	$ 92,277
Gross Realized Gains	2,270	1,356
Gross Realized Losses	(102)	(723)
Net Realized Gain (Loss)	2,168	633
Debt securities | Available for sale securities | CALLS/MATURITIES
Summary of the disposition of fixed income and equity securities
Proceeds From Sales	54,890	24,745
Gross Realized Gains	145	1
Gross Realized Losses	(7)	(9)
Net Realized Gain (Loss)	138	(8)
Equity securities | SALES
Summary of the disposition of fixed income and equity securities
Proceeds From Sales	38,042	26,347
Gross Realized Gains	17,792	9,034
Gross Realized Losses	(2,633)	(592)
Net Realized Gain (Loss)	$ 15,159	$ 8,442

INVESTMENTS - Assets Measured A

INVESTMENTS - Assets Measured At Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Assets measured at Fair Value
Available-for-sale fixed income	$ 1,963,585	$ 1,983,086
Equity securities	356,403	460,630
Fair value measured on recurring basis
Assets measured at Fair Value
Available-for-sale fixed income	1,963,585	1,983,086
Equity securities	356,403	460,630
Other invested assets	12,056
Total assets at fair value	2,332,044	2,443,716
Fair value measured on recurring basis | U.S. government
Assets measured at Fair Value
Available-for-sale fixed income	186,974	193,661
Fair value measured on recurring basis | U.S. Agency
Assets measured at Fair Value
Available-for-sale fixed income	37,042	38,855
Fair value measured on recurring basis | Non-U.S. govt. & agency
Assets measured at Fair Value
Available-for-sale fixed income	7,316	7,628
Fair value measured on recurring basis | Agency MBS
Assets measured at Fair Value
Available-for-sale fixed income	414,262	420,165
Fair value measured on recurring basis | ABS/CMBS
Assets measured at Fair Value
Available-for-sale fixed income	223,601	224,870
Fair value measured on recurring basis | Corporate Debt
Assets measured at Fair Value
Available-for-sale fixed income	688,418	692,067
Fair value measured on recurring basis | Municipal
Assets measured at Fair Value
Available-for-sale fixed income	405,972	405,840
Fair value measured on recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets measured at Fair Value
Equity securities	356,403	460,630
Other invested assets	12,056
Total assets at fair value	368,459	460,630
Fair value measured on recurring basis | Significant Other Observable Inputs (Level 2)
Assets measured at Fair Value
Available-for-sale fixed income	1,958,782	1,981,316
Total assets at fair value	1,958,782	1,981,316
Fair value measured on recurring basis | Significant Other Observable Inputs (Level 2) | U.S. government
Assets measured at Fair Value
Available-for-sale fixed income	186,974	193,661
Fair value measured on recurring basis | Significant Other Observable Inputs (Level 2) | U.S. Agency
Assets measured at Fair Value
Available-for-sale fixed income	37,042	38,855
Fair value measured on recurring basis | Significant Other Observable Inputs (Level 2) | Non-U.S. govt. & agency
Assets measured at Fair Value
Available-for-sale fixed income	7,316	7,628
Fair value measured on recurring basis | Significant Other Observable Inputs (Level 2) | Agency MBS
Assets measured at Fair Value
Available-for-sale fixed income	414,262	420,165
Fair value measured on recurring basis | Significant Other Observable Inputs (Level 2) | ABS/CMBS
Assets measured at Fair Value
Available-for-sale fixed income	223,601	224,870
Fair value measured on recurring basis | Significant Other Observable Inputs (Level 2) | Corporate Debt
Assets measured at Fair Value
Available-for-sale fixed income	683,615	690,297
Fair value measured on recurring basis | Significant Other Observable Inputs (Level 2) | Municipal
Assets measured at Fair Value
Available-for-sale fixed income	405,972	405,840
Fair value measured on recurring basis | Significant Unobservable Inputs (Level 3)
Assets measured at Fair Value
Available-for-sale fixed income	4,803	1,770
Total assets at fair value	4,803	1,770
Fair value measured on recurring basis | Significant Unobservable Inputs (Level 3) | Corporate Debt
Assets measured at Fair Value
Available-for-sale fixed income	$ 4,803	$ 1,770

INVESTMENTS - Level 3 (Details)

INVESTMENTS - Level 3 (Details) - Regulation D private placement fixed income securities $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)
Summary of changes in Level 3 securities
Beginning balance	$ 1,770
Net investment income	(5)
Net realized gains	(16)
Included in other comprehensive income (loss)	(1,048)
Total net realized and unrealized gains (losses)	(1,069)
Purchases	4,102
Ending balance	4,803
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)	(1,048)
Other comprehensive earnings (loss)
Summary of changes in Level 3 securities
Change in unrealized gains (losses) during the period for Level 3 assets held at period-end	(1,048)
Net realized gains
Summary of changes in Level 3 securities
Change in unrealized gains (losses) during the period for Level 3 assets held at period-end	$ (16)

INVESTMENTS - Amortized Cost an

INVESTMENTS - Amortized Cost and Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
INVESTMENTS
Accrued interest receivable	$ 14,944	$ 14,587
Available-for-sale
Total amortized cost	1,912,851	1,915,278
Allowance for credit losses	(878)	0
Available-for-sale Securities, Debt Securities	1,963,585	1,983,086
Amortized Cost
Due in one year or less	56,844
Due after one year through five years	442,572
Due after five years through 10 years	549,193
Due after 10 years	236,938
Mtge/ABS/CMBS	627,304
Total amortized cost	1,912,851	1,915,278
Fair Value
Due in one year or less	56,702
Due after one year through five years	449,447
Due after five years through 10 years	569,898
Due after 10 years	249,675
Mtge/ABS/CMBS	637,863
Total fair value	1,963,585	1,983,086
Fair value measured on recurring basis
INVESTMENTS
Total assets at fair value	2,332,044	2,443,716
Available-for-sale
Available-for-sale Securities, Debt Securities	1,963,585	1,983,086
Fair Value
Total fair value	1,963,585	1,983,086
Fair value measured on recurring basis | Significant Unobservable Inputs (Level 3)
INVESTMENTS
Total assets at fair value	4,803	1,770
Available-for-sale
Available-for-sale Securities, Debt Securities	4,803	1,770
Fair Value
Total fair value	4,803	1,770
Debt securities
INVESTMENTS
Accrued interest receivable	13,900	13,500
Available-for-sale
Total amortized cost	1,912,851	1,915,278
Allowance for credit losses	(878)
Gross unrealized gains	80,141	70,461
Gross unrealized losses	(28,529)	(2,653)
Available-for-sale Securities, Debt Securities	1,963,585	1,983,086
Amortized Cost
Total amortized cost	1,912,851	1,915,278
Fair Value
Total fair value	1,963,585	1,983,086
U.S. government
Available-for-sale
Total amortized cost	171,026	186,699
Gross unrealized gains	15,948	6,994
Gross unrealized losses		(32)
Available-for-sale Securities, Debt Securities	186,974	193,661
Amortized Cost
Total amortized cost	171,026	186,699
Fair Value
Total fair value	186,974	193,661
U.S. Agency
Available-for-sale
Total amortized cost	32,236	36,535
Gross unrealized gains	4,806	2,362
Gross unrealized losses		(42)
Available-for-sale Securities, Debt Securities	37,042	38,855
Amortized Cost
Total amortized cost	32,236	36,535
Fair Value
Total fair value	37,042	38,855
Non-U.S. govt. & agency
Available-for-sale
Total amortized cost	7,324	7,333
Gross unrealized gains	105	295
Gross unrealized losses	(113)
Available-for-sale Securities, Debt Securities	7,316	7,628
Amortized Cost
Total amortized cost	7,324	7,333
Fair Value
Total fair value	7,316	7,628
Agency MBS
Available-for-sale
Total amortized cost	396,474	411,808
Gross unrealized gains	17,807	8,920
Gross unrealized losses	(19)	(563)
Available-for-sale Securities, Debt Securities	414,262	420,165
Amortized Cost
Total amortized cost	396,474	411,808
Fair Value
Total fair value	414,262	420,165
ABS/CMBS
Available-for-sale
Total amortized cost	230,830	222,832
Allowance for credit losses	(21)
Gross unrealized gains	1,908	2,514
Gross unrealized losses	(9,116)	(476)
Available-for-sale Securities, Debt Securities	223,601	224,870
Amortized Cost
Total amortized cost	230,830	222,832
Fair Value
Total fair value	223,601	224,870
Corporate Debt
Available-for-sale
Total amortized cost	685,116	659,640
Allowance for credit losses	(857)
Gross unrealized gains	23,364	33,245
Gross unrealized losses	(19,205)	(818)
Available-for-sale Securities, Debt Securities	688,418	692,067
Amortized Cost
Total amortized cost	685,116	659,640
Fair Value
Total fair value	688,418	692,067
Municipal
Available-for-sale
Total amortized cost	389,845	390,431
Gross unrealized gains	16,203	16,131
Gross unrealized losses	(76)	(722)
Available-for-sale Securities, Debt Securities	405,972	405,840
Amortized Cost
Total amortized cost	389,845	390,431
Fair Value
Total fair value	$ 405,972	$ 405,840

INVESTMENTS - Allowance for Cre

INVESTMENTS - Allowance for Credit Losses, Unrealized Losses on Securities (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)security	Mar. 31, 2019USD ($)	Dec. 31, 2019USD ($)
Securities in unrealized loss positions
Allowance for credit losses	$ 878		$ 0
Debt securities
Securities in unrealized loss positions
Number of debt securities for which there is an allowance for credit losses | security	39
Allowance for credit losses	$ 900
Number of debt securities in an unrealized loss position for which an allowance for credit losses has not been recorded | security	381
Number of unrealized loss positions | security	420
Number of securities in unrealized loss positions for 12 months or longer | security	30
Unrealized loss	$ 28,500
Unrealized losses as percentage of fixed income portfolio cost basis	1.50%
Unrealized losses relative to total invested assets (as a percent)	1.20%
Other-than-temporary Impairment Loss, Debt Securities, Available-for-sale, Recognized in Earnings		$ 0
Equity securities
Securities in unrealized loss positions
Unrealized gains (losses) on equity securities still held	$ (115,200)	$ 41,900

INVESTMENTS - Unrealized Losses

INVESTMENTS - Unrealized Losses (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Debt securities
Fair value
Less than 12 months	$ 357,450	$ 169,311
12 months and greater	20,883	77,565
Total Fair Value	378,333	246,876
Cost or amortized Cost
Amortized cost, less than 12 months	383,920	171,028
12 months and greater	22,942	78,501
Total Cost or Amortized Cost	406,862	249,529
Unrealized Loss
Less than 12 months	(26,470)	(1,717)
12 months and greater	(2,059)	(936)
Total Unrealized Loss	$ (28,529)	(2,653)
Percent to Total	100.00%
Debt securities | NAIC Rating 1 | AAA/AA/A | Aaa/Aa/A
Fair value
Total Fair Value	$ 191,912
Cost or amortized Cost
Total Cost or Amortized Cost	202,517
Unrealized Loss
Total Unrealized Loss	$ (10,605)
Percent to Total	37.20%
Debt securities | NAIC Rating 2 | BBB | Baa
Fair value
Total Fair Value	$ 80,759
Cost or amortized Cost
Total Cost or Amortized Cost	85,785
Unrealized Loss
Total Unrealized Loss	$ (5,026)
Percent to Total	17.60%
Debt securities | NAIC Rating 3 | BB | Ba
Fair value
Total Fair Value	$ 59,398
Cost or amortized Cost
Total Cost or Amortized Cost	65,256
Unrealized Loss
Total Unrealized Loss	$ (5,858)
Percent to Total	20.50%
Debt securities | NAIC Rating 4 | B | B
Fair value
Total Fair Value	$ 44,392
Cost or amortized Cost
Total Cost or Amortized Cost	50,630
Unrealized Loss
Total Unrealized Loss	$ (6,238)
Percent to Total	21.90%
Debt securities | NAIC Rating 5 | CCC | Caa
Fair value
Total Fair Value	$ 1,872
Cost or amortized Cost
Total Cost or Amortized Cost	2,674
Unrealized Loss
Total Unrealized Loss	$ (802)
Percent to Total	2.80%
U.S. government
Fair value
Less than 12 months		2,505
12 months and greater		8,463
Total Fair Value		10,968
Cost or amortized Cost
Amortized cost, less than 12 months		2,506
12 months and greater		8,494
Total Cost or Amortized Cost		11,000
Unrealized Loss
Less than 12 months		(1)
12 months and greater		(31)
Total Unrealized Loss		(32)
U.S. Agency
Fair value
Less than 12 months		6,794
Total Fair Value		6,794
Cost or amortized Cost
Amortized cost, less than 12 months		6,836
Total Cost or Amortized Cost		6,836
Unrealized Loss
Less than 12 months		(42)
Total Unrealized Loss		(42)
Non-U.S. govt. & agency
Fair value
Less than 12 months	$ 3,011
Total Fair Value	3,011
Cost or amortized Cost
Amortized cost, less than 12 months	3,124
Total Cost or Amortized Cost	3,124
Unrealized Loss
Less than 12 months	(113)
Total Unrealized Loss	(113)
Agency MBS
Fair value
Less than 12 months	249	21,548
12 months and greater	1,296	41,718
Total Fair Value	1,545	63,266
Cost or amortized Cost
Amortized cost, less than 12 months	249	21,664
12 months and greater	1,315	42,165
Total Cost or Amortized Cost	1,564	63,829
Unrealized Loss
Less than 12 months		(116)
12 months and greater	(19)	(447)
Total Unrealized Loss	(19)	(563)
ABS/CMBS
Fair value
Less than 12 months	126,540	74,968
12 months and greater	15,405	18,036
Total Fair Value	141,945	93,004
Cost or amortized Cost
Amortized cost, less than 12 months	134,660	75,332
12 months and greater	16,401	18,148
Total Cost or Amortized Cost	151,061	93,480
Unrealized Loss
Less than 12 months	(8,120)	(364)
12 months and greater	(996)	(112)
Total Unrealized Loss	(9,116)	(476)
Corporate Debt
Fair value
Less than 12 months	220,349	16,478
12 months and greater	4,182	9,348
Total Fair Value	224,531	25,826
Cost or amortized Cost
Amortized cost, less than 12 months	238,510	16,950
12 months and greater	5,226	9,694
Total Cost or Amortized Cost	243,736	26,644
Unrealized Loss
Less than 12 months	(18,161)	(472)
12 months and greater	(1,044)	(346)
Total Unrealized Loss	(19,205)	(818)
Municipal
Fair value
Less than 12 months	7,301	47,018
Total Fair Value	7,301	47,018
Cost or amortized Cost
Amortized cost, less than 12 months	7,377	47,740
Total Cost or Amortized Cost	7,377	47,740
Unrealized Loss
Less than 12 months	(76)	(722)
Total Unrealized Loss	$ (76)	$ (722)

INVESTMENTS Debt and Short-term

INVESTMENTS Debt and Short-term Investments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Other invested assets
Other investments	$ 53,562		$ 70,441
Investments pledged as collateral	$ 15,100
Investment in Federal Home Loan Bank Stock	us-gaap:AssetPledgedAsCollateralMember
Federal Home Loan Bank Borrowings, Fair Value Disclosure	$ 0
Cash and Short-term Investments
Cash	42,701		46,203
Investment In Low Income Housing Tax Credit Partnership Net Of Amortization
Other invested assets
Other investments	22,400		23,300
Total tax benefit on investments in housing tax credit partnership	900	$ 600
Qualified Affordable Housing Project Investments, Commitment	8,000
Investment in Private Funds
Other invested assets
Other investments	17,500		$ 46,000
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unfunded Commitments	13,500
Investment in Restricted Stock
Other invested assets
Other investments	$ 12,100

HISTORICAL LOSS AND LAE DEVEL_3

HISTORICAL LOSS AND LAE DEVELOPMENT - Unpaid Losses and Settlement Expenses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Unpaid losses and LAE at beginning of year:
Gross	$ 1,574,352	$ 1,461,348
Ceded	(384,517)	(364,999)
Net	1,189,835	1,096,349
Increase (decrease) in incurred losses and LAE:
Current accident year	126,194	113,930
Prior accident years	(15,173)	(19,633)
Total incurred	111,021	94,297
Loss and LAE payments for claims incurred:
Current accident year	(9,295)	(5,531)
Prior accident year	(81,897)	(70,145)
Total paid	(91,192)	(75,676)
Net	1,208,319	1,114,970
Unpaid losses and LAE at year end
Gross	1,574,760	1,479,344
Ceded	(366,441)	(364,374)
Net	$ 1,208,319	$ 1,114,970
Accounting Standards Update 2016-13 | Restatement Adjustment
Adoption impact of ASU 2016-13
Adoption impact of ASU 2016-13 on reinsurance balances recoverable			$ (1,345)

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Reconciliation of income tax expense reported to amount computed by applying the U.S. federal tax rate
Provision for income taxes at the statutory federal tax rate	$ (16,666)	$ 17,166
Excess tax benefit on share-based compensation	(1,029)	(741)
Tax-exempt interest income	(313)	(345)
Dividends received deduction	(271)	(203)
ESOP dividends paid deduction	(132)	(137)
Nondeductible expenses	203	509
Other items, net	111	19
Income tax expense (benefit)	$ (18,097)	$ 16,268
Reconciliation of income tax expense rate to the U.S. federal tax rate
U.S. federal tax rate (as a percent)	21.00%	21.00%
Excess tax benefit on share-based compensation (as a percent)	1.30%	(0.90%)
Effective rate reduction due to tax exempt interest income (as a percent)	0.40%	(0.40%)
Effective rate reduction due to dividend received (as a percent)	0.30%	(0.20%)
Effective rate reduction due to dividend paid to ESOP (as a percent)	0.20%	(0.20%)
Effective rate reduction due to nondeductible expenses (as a percent)	(0.30%)	0.60%
Effective rate reduction due to other items, net (as a percent)	(0.10%)	0.00%
Effective Income Tax Rate Reconciliation, Percent, Total	22.80%	19.90%

STOCK BASED COMPENSATION (Detai

STOCK BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		12 Months Ended	59 Months Ended	60 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Mar. 31, 2020	May 06, 2015
Weighted Number of Options Outstanding
Outstanding options at the beginning of the period (in shares)	1,667,290	1,964,880	1,964,880
Options granted (in shares)	30,375	40,750
Options exercised (in shares)	(56,725)	(50,580)
Options canceled/forfeited (in shares)	(300)	(19,100)
Outstanding options at the end of the period (in shares)	1,640,640	1,935,950	1,667,290	1,640,640
Exercisable options at the end of the period (in shares)	614,040	702,250		614,040
Weighted Average Exercise Price
Outstanding options at the beginning of the period (in dollars per share)	$ 62.52	$ 54.24	$ 54.24
Options granted (in dollars per share)	94.62	66.16
Options exercised (in dollars per share)	49.23	33.71
Options canceled/forfeited (in dollars per share)	58.60	57.28
Outstanding options at the end of the period (in dollars per share)	63.58	55	$ 62.52	$ 63.58
Exercisable options at the end of the period (in dollars per share)	$ 54.68	$ 47.84		$ 54.68
Weighted Average Remaining Contractual Life
Weighted-average remaining contractual term of options outstanding	5 years 1 month 6 days	5 years 1 month 20 days
Weighted-average remaining contractual term of exercisable options	3 years 9 months	3 years 8 months 23 days
Aggregate Intrinsic Value
Options exercised (in dollars)	$ 2,516	$ 1,795
Outstanding options at the end of the period (in dollars)	40,778	32,589		$ 40,778
Exercisable options at the end of the period (in dollars)	$ 20,438	$ 16,794		20,438
Weighted-average fair value of grants (in dollars per share)	$ 14.48	$ 11.35
Stock-based compensation expenses (in dollars)	$ 1,000	$ 1,000
Income tax benefit from stock-based compensation (in dollars)	200	$ 200
Unrecognized stock-based compensation expense (in dollars)	$ 4,200			4,200
Weighted average grant date assumptions and weighted average fair value
Weighted-average fair value of grants (in dollars per share)	$ 14.48	$ 11.35
Risk-free interest rates (as a percent)	1.54%	2.94%
Dividend yield (as a percent)	2.69%	2.98%
Expected volatility (as a percent)	22.68%	22.84%
Expected option life	4 years 11 months 26 days	5 years 1 month 9 days
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award
Award vesting period	3 years
Age and period of service of the participant to be eligible for retirement	75 years
Aggregate Intrinsic Value
Stock-based compensation expenses (in dollars)	$ 200	$ 100
Unrecognized stock-based compensation expense (in dollars)	$ 800			$ 800
Weighted average grant date assumptions and weighted average fair value
RSUs Granted				45,350
RSUs Outstanding	43,708			43,708
Outside director | Maximum
Aggregate Intrinsic Value
Unrecognized stock-based compensation expense (in dollars)	$ 100			$ 100
Outside director | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award
Award vesting period	1 year
Aggregate Intrinsic Value
Stock-based compensation expenses (in dollars)	$ 100	$ 100
Weighted average grant date assumptions and weighted average fair value
RSUs Granted				15,085
RSUs Outstanding	6,182			6,182
Grant date fair value of RSUs	$ 50		$ 50
RLI Corp. Long-Term Incentive Plan (LTIP) and Omnibus Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award
Award vesting period	5 years
Term of options	8 years
Age and period of service of the participant to be eligible for retirement	75 years
RLI Corp. Long-Term Incentive Plan (2010 LTIP)
Share-based Compensation Arrangement by Share-based Payment Award
Shares authorized for grant					4,000,000
Weighted Number of Options Outstanding
Options granted (in shares)					2,878,000
RLI Corp. Long-Term Incentive Plan (2015 LTIP)
Share-based Compensation Arrangement by Share-based Payment Award
Shares authorized for grant	4,000,000			4,000,000
Weighted Number of Options Outstanding
Options granted (in shares)	30,375			2,312,835

OPERATING SEGMENT INFORMATION -

OPERATING SEGMENT INFORMATION - Reconciliation of Segment Totals to Total Earnings (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
REVENUES
Net premiums earned	$ 215,582	$ 204,689
Net investment income	17,778	16,565
Net realized gains	15,152	9,068
Net unrealized gains (losses) on equity securities	(130,395)	33,498
Consolidated revenue	118,117	263,820
NET EARNINGS
Net underwriting income	17,239	22,433
Net investment income	17,778	16,565
Net realized gains	15,152	9,068
Net unrealized gains (losses) on equity securities	(130,395)	33,498
General corporate expense and interest on debt	(3,652)	(5,137)
Equity in earnings of unconsolidated investees	4,514	5,314
Earnings (loss) before income taxes	(79,364)	81,741
Income tax expense (benefit)	(18,097)	16,268
Net earnings (loss)	(61,267)	65,473
Casualty segment
REVENUES
Net premiums earned	143,420	136,900
NET EARNINGS
Net underwriting income	(1,323)	5,343
Property segment
REVENUES
Net premiums earned	44,348	38,746
NET EARNINGS
Net underwriting income	9,908	8,246
Surety segment
REVENUES
Net premiums earned	27,814	29,043
NET EARNINGS
Net underwriting income	$ 8,654	$ 8,844

OPERATING SEGMENT INFORMATION_2

OPERATING SEGMENT INFORMATION - Major Products (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenue by major product
Net premiums earned	$ 215,582	$ 204,689
Casualty segment
Revenue by major product
Net premiums earned	143,420	136,900
Casualty segment | Commercial excess and personal umbrella
Revenue by major product
Net premiums earned	40,088	32,281
Casualty segment | General liability
Revenue by major product
Net premiums earned	23,998	23,888
Casualty segment | Transportation
Revenue by major product
Net premiums earned	21,185	20,404
Casualty segment | Professional services
Revenue by major product
Net premiums earned	20,695	20,299
Casualty segment | Small commercial
Revenue by major product
Net premiums earned	15,633	13,188
Casualty segment | Executive products
Revenue by major product
Net premiums earned	7,331	6,069
Casualty segment | Other casualty
Revenue by major product
Net premiums earned	14,490	20,771
Property segment
Revenue by major product
Net premiums earned	44,348	38,746
Property segment | Marine
Revenue by major product
Net premiums earned	19,577	17,021
Property segment | Commercial
Revenue by major product
Net premiums earned	19,155	16,875
Property segment | Specialty Personal
Revenue by major product
Net premiums earned	5,000	4,584
Property segment | Other property
Revenue by major product
Net premiums earned	616	266
Surety segment
Revenue by major product
Net premiums earned	27,814	29,043
Surety segment | Commercial surety product
Revenue by major product
Net premiums earned	10,938	10,812
Surety segment | Miscellaneous
Revenue by major product
Net premiums earned	10,516	11,602
Surety segment | Contract
Revenue by major product
Net premiums earned	$ 6,360	$ 6,629

Leases - Components of Lease Ex

Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Leases
Operating Lease Cost	$ 1,406	$ 1,481
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	1,486	1,395
Right-of-use assets obtained in exchange for new operating lease liabilities	15	$ 719
Other non-cash reductions to right of use assets	1,192
Operating lease right-of-use assets	$ 19,889		$ 22,335
Operating lease, right-of-use asset, Statement of Financial Position	us-gaap:OtherAssets
Operating Lease Liabilities	$ 23,141		$ 24,475
Operating lease liability, Statement of Financial Position	us-gaap:OtherLiabilities
Weighted-average remaining lease term - operating leases	4 years 5 months 23 days		4 years 8 months 8 days
Weighted-average discount rate - operating leases	2.34%		2.33%
Minimum
Leases
Remaining lease terms - operating leases	1 year
Maximum
Leases
Remaining lease terms - operating leases	15 years

Leases - Future Minimum Lease P

Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Future minimum lease payments under non-cancellable leases
2020	$ 4,505
2021	5,976
2022	5,904
2023	4,386
2024	2,334
Thereafter	1,365
Total future minimum lease payments	24,470
Less imputed interest	(1,329)
Total operating lease liability	$ 23,141	$ 24,475