As of December 31, 2017: Description Total Level 1 Level 2 Level 3 Fixed income securities: Agency collateralized mortgage obligations $ 16,586 $ – $ 16,586 $ – Agency mortgage-backed securities 27,075 – 27,075 – Asset-backed securities 43,469 – 43,469 – Bank loans 19,488 – 19,488 – Certificates of deposit 3,135 3,135 – – Collateralized mortgage obligations 6,492 – 6,492 – Corporate securities 193,058 – 193,058 – Options embedded in convertible securities 5,291 – 5,291 – Mortgage-backed securities 24,204 – 24,204 – Municipal obligations 96,650 – 96,650 – Non-U.S. government obligations 37,394 – 37,394 – U.S. government obligations 49,011 – 49,011 – Total fixed income securities 521,853 3,135 518,718 – Equity securities: Consumer 46,578 46,578 – – Energy 10,278 10,278 – – Financial 45,470 45,470 – – Industrial 25,402 25,402 – – Technology 13,061 13,061 – – Funds (e.g. mutual funds, closed end funds, ETFs) 50,291 45,276 5,015 – Other 10,683 10,683 – – Total equity securities 201,763 196,748 5,015 – Short-term 1,000 1,000 – – Cash equivalents 59,173 – 59,173 – Total $ 783,789 $ 200,883 $ 582,906 $ – Level inputs, as defined by the FASB guidance, are as follows: The Company did not have any Level 3 assets at December 31, 2018 or 2017. Level 3 assets, when present, are valued using various unobservable inputs including extrapolated data, proprietary models and indicative quotes. A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using Level 3 inputs is as follows for the years ended December 31: Quoted market prices are obtained whenever possible. Where quoted market prices are not available, fair values are estimated using broker/dealer quotes for specific securities. These techniques are significantly affected by the Company's assumptions, including discount rates and estimates of future cash flows. Potential taxes and other transaction costs have not been considered in estimating fair values. - 67 - Transfers between levels, if any, are recorded as of the beginning of the reporting period. There were no significant transfers of assets between Level 1 and Level 2 during 2018. 2018 2017 Beginning of period balance $ – $ 25,218 Total gains or losses (realized) included in income – 406 Purchases – 81 Settlements – (9,123 ) Transfers into Level 3 – 144 Transfers out of Level 3 – (16,726 ) End of period balance $ – $ – Level Input: Input Definition: Level 1 Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date. Level 2 Inputs other than quoted prices included in Level 1 that are observable for the asset or liability through corroboration with market data at the measurement date. Level 3 Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date.