Mercury Insurance 2013 Annual Report Download - page 82

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67
December 31, 2012
Level 1 Level 2 Level 3 Total
(Amounts in thousands)
Assets
Fixed maturity securities:
U.S. government bonds and agencies $ 14,204 $ 0 $ 0 $ 14,204
Municipal securities 0 2,165,095 0 2,165,095
Mortgage-backed securities 0 30,703 0 30,703
Corporate securities 0 155,551 0 155,551
Collateralized debt obligations 0 0 42,801 42,801
Equity securities:
Common stock:
Public utilities 85,106 0 0 85,106
Banks, trusts and insurance companies 22,166 0 0 22,166
Energy and other 346,809 0 0 346,809
Non-redeemable preferred stock 0 11,701 0 11,701
Partnership interest in a private credit fund 0 0 11,306 11,306
Short-term bonds 0 24,530 0 24,530
Money market instruments 270,123 0 0 270,123
Total assets at fair value $ 738,408 $ 2,387,580 $ 54,107 $ 3,180,095
Liabilities
Equity contracts $ 175 $ 0 $ 0 $ 175
Interest rate swap agreements 0 103 0 103
Total liabilities at fair value $ 175 $ 103 $ 0 $ 278
The following table presents a summary of changes in fair value of Level 3 financial assets and financial liabilities held at
fair value at December 31:
2013 2012
Collateralized
Debt
Obligations
Partnership
Interest in a
Private Credit
Fund
Collateralized
Debt
Obligations
Partnership
Interest in a
Private Credit
Fund
(Amounts in thousands)
Beginning Balance $ 42,801 $ 11,306 $ 47,503 $ 10,008
Realized gains included in earnings 740 1,242 7,975 1,298
Purchase 0 0 25,000 0
Sales (30,975) 0 (37,677) 0
Settlements (8,264) 0 0 0
Ending Balance $ 4,302 $ 12,548 $ 42,801 $ 11,306
The amount of total gains (losses) for the period included
in earnings attributable to assets still held at December 31 $ 321 $ 1,242 $ (3,017) $ 1,298
There were no transfers between Levels 1, 2, and 3 of the fair value hierarchy in 2013 or 2012.
At December 31, 2013, the Company did not have any nonrecurring fair value measurements of nonfinancial assets or
nonfinancial liabilities.