Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 24, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-34257 | ||
Entity Registrant Name | UNITED FIRE GROUP, INC | ||
Entity Incorporation, State or Country Code | IA | ||
Entity Tax Identification Number | 45-2302834 | ||
Entity Address, Address Line One | 118 Second Avenue SE | ||
Entity Address, City or Town | Cedar Rapids | ||
Entity Address, State or Province | IA | ||
Entity Address, Postal Zip Code | 52401 | ||
City Area Code | 319 | ||
Local Phone Number | 399-5700 | ||
Title of 12(b) Security | Common Stock, $0.001 par value | ||
Trading Symbol | UFCS | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 0.7 | ||
Entity Common Stock, Shares Outstanding | 25,087,310 | ||
Documents Incorporated by Reference | Part III of this Form 10-K incorporates by reference certain information from the registrant's definitive proxy statement to be filed with the Securities and Exchange Commission pursuant to Regulation 14A of the Securities Exchange Act of 1934, as amended, for its annual shareholder meeting to be held on May 19, 2021. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000101199 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fixed maturities | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | $ 1,825,438 | $ 1,719,607 |
Trading securities, at fair value (amortized cost $— in 2020 and $11,941 in 2019) | 0 | 15,256 |
Equity securities, at fair value (cost $49,085 in 2020 and $67,529 in 2019) | 206,685 | 299,203 |
Mortgage loans | 47,690 | 42,520 |
Less: allowance for mortgage loan losses | 76 | 72 |
Mortgage loans, net | 47,614 | 42,448 |
Other long-term investments | 69,305 | 78,410 |
Short-term investments | 175 | 175 |
Total Investments | 2,149,217 | 2,155,099 |
Cash and cash equivalents | 87,948 | 120,722 |
Accrued investment income | 14,615 | 15,182 |
Premiums receivable (net of allowance for doubtful accounts of $687 in 2020 and $1,239 in 2019) | 317,292 | 357,632 |
Deferred policy acquisition costs | 87,094 | 94,292 |
Property and equipment (primarily land and buildings, at cost, less accumulated depreciation of $55,141 in 2020 and $50,183 in 2019) | 129,874 | 116,989 |
Reinsurance receivables and recoverables (net of allowance for credit losses of $190 in 2020 and $— in 2019) | 160,540 | 72,369 |
Prepaid reinsurance premiums | 12,965 | 9,550 |
Income taxes receivable | 66,194 | 19,190 |
Goodwill and net intangible assets | 6,743 | 22,542 |
Other assets | 37,196 | 29,905 |
Total assets | 3,069,678 | 3,013,472 |
Liabilities | ||
Losses and loss settlement expenses | 1,578,131 | 1,421,754 |
Unearned premiums | 464,845 | 505,162 |
Accrued expenses and other liabilities | 126,624 | 155,498 |
Deferred tax liability | 24,929 | 20,586 |
Long term debt | 50,000 | 0 |
Total liabilities | 2,244,529 | 2,103,000 |
Stockholders' equity | ||
Common stock, $0.001 par value; authorized 75,000,000 shares; 25,055,479 and 25,015,963 shares issued and outstanding in 2020 and 2019, respectively | 25 | 25 |
Additional paid-in capital | 202,359 | 200,179 |
Retained earnings | 555,854 | 697,116 |
Accumulated other comprehensive income, net of tax | 66,911 | 13,152 |
Total stockholders' equity | 825,149 | 910,472 |
Total liabilities and stockholders' equity | $ 3,069,678 | $ 3,013,472 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Cost or Amortized Cost | $ 1,720,291 | $ 1,659,760 |
Available-for-sale securities, allowance for credit losses | 5 | 0 |
Trading securities, amortized cost | 0 | 11,941 |
Equity securities, cost | 49,085 | 67,529 |
Allowance for doubtful accounts | 687 | 1,239 |
Property and equipment, accumulated depreciation | 55,141 | 50,183 |
Reinsurance receivables, allowance for credit losses | $ 190 | $ 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 75,000,000 | 75,000,000 |
Common stock, shares issued (in shares) | 25,055,479 | 25,015,963 |
Common stock, shares outstanding (in shares) | 25,055,479 | 25,015,963 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues | |||
Net premiums earned | $ 1,055,082 | $ 1,086,972 | $ 1,037,451 |
Investment income, net of investment expenses | 39,670 | 60,414 | 52,894 |
Net realized investment gains (losses) (includes reclassifications for net unrealized gains on available-for-sale securities of $1,750 in 2020; $(1,521) in 2019; and $(784) in 2018 previously included in accumulated other comprehensive income) | (32,395) | 53,779 | (20,179) |
Other income | 6,270 | 0 | 0 |
Total revenues | 1,068,627 | 1,201,165 | 1,070,166 |
Benefits, losses and expenses | |||
Losses and loss settlement expenses | 869,467 | 830,172 | 731,611 |
Amortization of deferred policy acquisition costs | 210,252 | 216,699 | 206,232 |
Other underwriting expenses (includes reclassifications for employee benefit costs of $(4,289) in 2020; $(4,497) in 2019; and $(6,642) in 2018 previously included in accumulated other comprehensive income) | 143,332 | 137,415 | 141,473 |
Goodwill impairment | 15,091 | 0 | 0 |
Total benefits, losses and expenses | 1,238,142 | 1,184,286 | 1,079,316 |
Income (loss) from continuing operations before income taxes | (169,515) | 16,879 | (9,150) |
Federal income tax expense (benefit) (includes reclassifications of $534 in 2020; $1,263 in 2019; and $1,559 in 2018 previously included in accumulated other comprehensive income) | (56,809) | 2,059 | (11,405) |
Net income (loss) from continuing operations | (112,706) | 14,820 | 2,255 |
Income (loss) from discontinued operations, net of taxes | 0 | 0 | (1,912) |
Gain on sale of discontinued operations, net of taxes | 0 | 0 | 27,307 |
Net income (loss) | (112,706) | 14,820 | 27,650 |
Other comprehensive income (loss) | |||
Change in net unrealized appreciation on investments | 47,054 | 70,127 | (50,985) |
Change in liability for underfunded employee benefit plans | 18,456 | (20,924) | 25,513 |
Other comprehensive income (loss), before tax and reclassification adjustments | 65,510 | 49,203 | (25,472) |
Income tax effect | (13,757) | (10,334) | 5,349 |
Other comprehensive income (loss), after tax, before reclassification adjustments | 51,753 | 38,869 | (20,123) |
Reclassification adjustment for net realized (gains) losses included in income | (1,750) | 1,521 | 784 |
Reclassification adjustment for employee benefit costs included in expense | (4,289) | (4,497) | (6,642) |
Total reclassification adjustments, before tax | 2,539 | 6,018 | 7,426 |
Income tax effect | 534 | 1,263 | 1,559 |
Total reclassification adjustments, after tax | 2,005 | 4,755 | 5,867 |
Comprehensive income (loss) | $ (58,948) | $ 58,444 | $ 13,394 |
Weighted average common shares outstanding (in shares) | 25,027,358 | 25,138,039 | 25,006,211 |
Earnings (loss) per common share from continuing operations: | |||
Basic (in dollars per share) | $ (4.50) | $ 0.59 | $ 0.09 |
Diluted (in dollars per share) | (4.50) | 0.58 | 0.09 |
Earnings (loss) per common share: | |||
Basic (in dollars per share) | (4.50) | 0.59 | 1.11 |
Diluted (in dollars per share) | $ (4.50) | $ 0.58 | $ 1.08 |
Consolidated Statements of In_2
Consolidated Statements of Income and Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Reclassification adjustment for net realized (gains) losses included in income | $ 1,750 | $ (1,521) | $ (784) |
Reclassification adjustment for employee benefit costs included in expense | 4,289 | 4,497 | 6,642 |
Reclassifications for federal income tax expense (benefit) | $ (534) | $ (1,263) | $ (1,559) |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative effect of change in accounting principle | Common Stock | Additional paid-in capital | Retaining earnings | Retaining earningsCumulative effect of change in accounting principle | Accumulated other comprehensive income | Accumulated other comprehensive incomeCumulative effect of change in accounting principle | ||
Balance, beginning of year (in shares) at Dec. 31, 2017 | 24,916,806 | |||||||||
Balance, beginning of year at Dec. 31, 2017 | $ 973,373 | $ 0 | $ 25 | $ 196,334 | $ 608,700 | $ 191,244 | $ 168,314 | $ (191,244) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | 27,650 | 27,650 | ||||||||
Shares repurchased (in shares) | (120,372) | |||||||||
Shares repurchased | (5,404) | (5,404) | ||||||||
Stock based compensation (in shares) | 300,974 | |||||||||
Stock based compensation | 7,171 | 7,171 | ||||||||
Dividends on common stock | (105,408) | (105,408) | ||||||||
Change in net unrealized investment appreciation | [1] | (32,944) | (32,944) | |||||||
Net unrealized investment depreciation of discontinued operations, sold | (6,714) | (6,714) | ||||||||
Change in liability for underfunded employee benefit plans | [2] | 25,402 | 25,402 | |||||||
Compensation expense and related tax benefit for stock-based award grants | 5,249 | 5,249 | ||||||||
Balance, ending of year (in shares) at Dec. 31, 2018 | 25,097,408 | |||||||||
Balance, end of year at Dec. 31, 2018 | 888,375 | (514) | $ 25 | 203,350 | 715,472 | (514) | (30,472) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | 14,820 | 14,820 | ||||||||
Shares repurchased (in shares) | (258,756) | |||||||||
Shares repurchased | (11,700) | (11,700) | ||||||||
Stock based compensation (in shares) | 177,311 | |||||||||
Stock based compensation | 2,377 | 2,377 | ||||||||
Dividends on common stock | (32,662) | (32,662) | ||||||||
Change in net unrealized investment appreciation | [1] | 56,602 | 56,602 | |||||||
Change in liability for underfunded employee benefit plans | [2] | (12,978) | (12,978) | |||||||
Compensation expense and related tax benefit for stock-based award grants | $ 6,152 | 6,152 | ||||||||
Balance, ending of year (in shares) at Dec. 31, 2019 | 25,015,963 | 25,015,963 | ||||||||
Balance, end of year at Dec. 31, 2019 | $ 910,472 | $ (30) | $ 25 | 200,179 | 697,116 | $ (30) | 13,152 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | (112,706) | (112,706) | ||||||||
Shares repurchased (in shares) | (70,467) | |||||||||
Shares repurchased | (2,741) | (2,741) | ||||||||
Stock based compensation (in shares) | 109,983 | |||||||||
Stock based compensation | (71) | (71) | ||||||||
Dividends on common stock | (28,526) | (28,526) | ||||||||
Change in net unrealized investment appreciation | 35,791 | [1] | 35,791 | |||||||
Change in liability for underfunded employee benefit plans | 17,968 | [2] | 17,968 | |||||||
Compensation expense and related tax benefit for stock-based award grants | $ 4,992 | 4,992 | ||||||||
Balance, ending of year (in shares) at Dec. 31, 2020 | 25,055,479 | 25,055,479 | ||||||||
Balance, end of year at Dec. 31, 2020 | $ 825,149 | $ 25 | $ 202,359 | $ 555,854 | $ 66,911 | |||||
[1] | The change in net unrealized appreciation is net of reclassification adjustments and income taxes. | |||||||||
[2] | The change in liability for underfunded employee benefit plans is net of income taxes. |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends on common stock (in dollars per share) | $ 1.14 | $ 1.30 | $ 4.21 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Flows From Operating Activities | |||
Net income (loss) | $ (112,706) | $ 14,820 | $ 27,650 |
Less net income (loss) from discontinued operations, net of taxes | 0 | 0 | (1,912) |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Net accretion of bond premium | 10,444 | 9,372 | 8,788 |
Depreciation and amortization | 6,656 | 11,191 | 5,174 |
Goodwill impairment | 15,091 | 0 | 0 |
Stock-based compensation expense | 4,992 | 6,152 | 5,249 |
Net realized investment (gains) losses | 32,395 | (53,779) | 20,179 |
Net cash flows from trading investments | 72,753 | 1,415 | 22,514 |
Deferred income tax benefit | (17,468) | 10,148 | (16,220) |
Changes in: | |||
Accrued investment income | 567 | 592 | (1,933) |
Premiums receivable | 40,340 | (10,807) | (18,312) |
Deferred policy acquisition costs | 7,198 | (1,496) | (4,694) |
Reinsurance receivables | (88,171) | (11,032) | 1,857 |
Prepaid reinsurance premiums | (3,415) | (2,487) | (3,314) |
Income taxes receivable | (47,004) | (4,155) | (9,004) |
Other assets | (7,291) | (11,972) | (1,524) |
Losses, claims and loss settlement expenses | 156,377 | 109,271 | 88,300 |
Unearned premiums | (40,317) | 12,244 | 27,527 |
Accrued expenses and other liabilities | (6,129) | 15,659 | (12,319) |
Deferred income taxes | 7,521 | (110) | (10,746) |
Other, net | 9,602 | (1,274) | 9,847 |
Cash from operating activities - continuing operations | 154,141 | 78,932 | 111,369 |
Cash from operating activities - discontinued operations | 0 | 0 | 4,024 |
Cash from operating activities - gain on sale of discontinued operations | 0 | 0 | (34,851) |
Total adjustments | 154,141 | 78,932 | 80,542 |
Net cash provided by operating activities | 41,435 | 93,752 | 110,104 |
Cash Flows From Investing Activities | |||
Proceeds from sale of available-for-sale investments | 50,744 | 41,760 | 132,250 |
Proceeds from call and maturity of available-for-sale investments | 318,981 | 265,515 | 122,250 |
Proceeds from short-term and other investments | 6,494 | 4,397 | 9,303 |
Proceeds from sale of discontinued operations | 0 | 0 | 276,055 |
Purchase of available-for-sale investments | (438,035) | (213,437) | (507,380) |
Purchase of mortgage loans | (5,564) | (16,933) | (25,853) |
Purchase of short-term and other investments | (6,629) | (44,375) | (7,119) |
Net purchases and sales of property and equipment | (18,862) | (32,426) | (33,053) |
Cash from investing activities - continuing operations | (92,871) | 4,501 | (33,547) |
Cash from investing activities - discontinued operations | 0 | 0 | 14,343 |
Net cash provided by (used in) investing activities | (92,871) | 4,501 | (19,204) |
Cash Flows From Financing Activities | |||
Borrowings of long-term debt | 50,000 | 0 | 0 |
Payment of cash dividends | (28,526) | (32,662) | (105,408) |
Repurchase of common stock | (2,741) | (11,700) | (5,404) |
Issuance of common stock | (71) | 2,377 | 7,171 |
Cash from financing activities - continued operations | 18,662 | (41,985) | (103,641) |
Cash from financing activities - discontinued operations | 0 | 0 | (11,547) |
Net cash provided by (used in) financing activities | 18,662 | (41,985) | (115,188) |
Net Change in Cash and Cash Equivalents | (32,774) | 56,268 | (24,288) |
Less: decrease in cash and cash equivalents - discontinued operations | 0 | 0 | (6,820) |
Net increase (decrease) in cash and cash equivalents - continuing operations | (32,774) | 56,268 | (31,108) |
Cash and Cash Equivalents at Beginning of Year - Continuing Operations | 120,722 | 64,454 | 95,562 |
Cash and Cash Equivalents at End of Year - Continuing Operations | $ 87,948 | $ 120,722 | $ 64,454 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business United Fire Group, Inc. ("UFG", "United Fire", the "Registrant", the "Company", "we", "us", or "our") and its consolidated subsidiaries and affiliates are engaged in the business of writing property and casualty insurance through a network of independent agencies. Our insurance company subsidiaries are licensed as a property and casualty insurer in 49 states, plus the District of Columbia. Discontinued Operations On September 18, 2017, the Company signed a definitive agreement to sell its subsidiary, United Life Insurance Company ("United Life"), to Kuvare US Holdings, Inc. ("Kuvare") and on March 30, 2018, the sale closed. As a result, our life insurance business, previously a separate segment, has been reported as discontinued operations in the Consolidated Statements of Income and Comprehensive Income and Consolidated Statements of Cash Flows for the twelve month period ended December 31, 2018 in this Form 10-K. Subsequent to the announcement of this sale, our continuing operations were reported as one business segment. All current and prior periods reflected in this Form 10-K have been presented as continuing and discontinued operations, unless otherwise noted. For more information, refer to Note 17 "Discontinued Operations." Principles of Consolidation The accompanying Consolidated Financial Statements include United Fire and its wholly owned subsidiaries: United Fire & Casualty Company, United Real Estate Holdings, LLC, Addison Insurance Company, Lafayette Insurance Company, United Fire & Indemnity Company, United Fire Lloyds, UFG Specialty Insurance Company, Financial Pacific Insurance Company, Franklin Insurance Company, Mercer Insurance Company, Mercer Insurance Company of New Jersey, Inc, McIntyre Cedar UK Limited. Mercer Insurance Company and McIntyre Cedar Corporate Member LLP. United Fire Lloyds, an affiliate of United Fire & Indemnity Company, is organized as a Texas Lloyds plan, which is an aggregation of underwriters who, under a common name, engage in the business of insurance through a corporate attorney-in-fact. United Fire Lloyds is financially and operationally controlled by United Fire & Indemnity Company, its corporate attorney-in-fact, pursuant to three types of agreements: trust agreements between United Fire & Indemnity Company and certain individuals who agree to serve as trustees; articles of agreement among the trustees who agree to act as underwriters to establish how the Lloyds plan will be operated; and powers of attorney from each of the underwriters appointing a corporate attorney-in-fact, who is authorized to operate the Lloyds plan. Because United Fire & Indemnity Company can name the trustees, the Lloyds plan is perpetual, subject only to United Fire & Indemnity Company's desire to terminate it. United Fire & Indemnity Company provides all of the statutory capital necessary for the formation of the Lloyds plan by contributing capital to each of the trustees. The trust agreements require the trustees to become underwriters of the Lloyds plan, to contribute the capital to the Lloyds plan, to sign the articles of agreement and to appoint the attorney-in-fact. The trust agreements also require the trustees to pay to United Fire & Indemnity Company all of the profits and benefits received by the trustees as underwriters of the Lloyds plan, which means that United Fire & Indemnity Company has the right to receive 100 percent of the gains and profits from the Lloyds plan. The trustees serve at the pleasure of United Fire & Indemnity Company, which may remove a trustee and replace that trustee at any time. Termination of a trustee must be accompanied by the resignation of the trustee as an underwriter, so that the trustee can obtain the capital contribution from the Lloyds plan to reimburse United Fire & Indemnity Company. By retaining the ability to terminate trustees, United Fire & Indemnity Company possesses the ability to name and remove the underwriters. United Real Estate Holdings, LLC, formed in 2013, is a wholly owned subsidiary of United Fire & Casualty Company and is organized as an Iowa limited liability corporation, an unincorporated association formed for the purpose of holding United Fire & Casualty Company's ownership in commercial real estate. Basis of Presentation The accompanying Consolidated Financial Statements have been prepared on the basis of U.S. generally accepted accounting principles ("GAAP"), which differ in some respects from those followed in preparing our statutory reports to insurance regulatory authorities. Our stand-alone subsidiary financial statements submitted to insurance regulatory authorities are presented on the basis of accounting practices prescribed or permitted by the insurance departments of the states in which we are domiciled ("statutory accounting principles"). Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The financial statement categories that are most dependent on management estimates and assumptions include: investments; deferred policy acquisition costs; reinsurance receivables and recoverables; goodwill impairment; losses and loss settlement expenses; and pension and post-retirement benefit obligations. Continuing Operations - Property and Casualty Insurance Business Premiums written are deferred and recorded as earned premium on a daily pro rata basis over the terms of the respective policies. Unearned premium reserves are established for the portion of premiums written applicable to the unexpired term of insurance policies in force. Premiums receivable are presented net of an estimated allowance for doubtful accounts, which is based on a periodic evaluation of the aging and collectability of amounts due from agents and policyholders. To establish loss and loss settlement expense reserves, we make estimates and assumptions about the future development of claims. Actual results could differ materially from those estimates, which are subjective, complex and inherently uncertain. When we establish and adjust reserves, we do so given our knowledge at the time of the circumstances and facts of known claims. To the extent that we have overestimated or underestimated our loss and loss settlement expense reserves, we adjust the reserves in the period in which such adjustment is determined. We record our best estimate of reserves for claim litigation that arises in the ordinary course of business. We consider all of our pending litigation as of December 31, 2020 to be ordinary, routine and incidental to our business. Discontinued Operations - Life Insurance Business Our whole life and term insurance (i.e., traditional business) premiums are reported as earned when due and benefits and expenses are associated with premium income in order to result in the recognition of profits over the lives of the related contracts. Income annuities with life contingencies (single premium immediate annuities and supplementary contracts) have premium recorded and any related expense charge fees recorded as income and expense when the contract is issued. On universal life and deferred annuity policies (i.e., non-traditional business), income and expenses are reported when charged and credited to policyholder account balances in order to result in recognition of profits over the lives of the related contracts. We accomplish this by means of a provision for future policy benefits and the deferral and subsequent amortization of policy acquisition costs. Reinsurance Premiums earned and losses and loss settlement expenses incurred are reported net of reinsurance ceded. Ceded insurance business is accounted for on a basis consistent with the original policies issued and the terms of the reinsurance contracts. Refer to Note 4 "Reinsurance" for a discussion of our reinsurance activities. Investments Investments in fixed maturities include bonds and redeemable preferred stocks. Our investments in available-for-sale fixed maturities and trading securities are recorded at fair value. Investments in equity securities, which include common and non-redeemable preferred stocks are recorded at fair value with changes in value recorded as a component of income. Changes in unrealized appreciation and depreciation, with respect to available-for-sale fixed maturities are reported as a component of accumulated other comprehensive income, net of applicable deferred income taxes, in stockholders' equity. Changes in unrealized appreciation and depreciation, with respect to trading securities, are reported as a component of income. Other long-term investments consist primarily of our interests in limited liability partnerships that are recorded on the equity method of accounting. Included in investments at December 31, 2020 and 2019, are securities on deposit with, or available to, various regulatory authorities as required by law, with fair values of $21,628 and $20,816 respectively. We review all of our investment holdings for appropriate valuation on an ongoing basis. Refer to Note 2 "Summary of Investments" for a discussion of our accounting policy for impairment recognition. Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash, money market accounts, and non-negotiable certificates of deposit with original maturities of three months or less. In 2020, 2019, and 2018, we made cash payments for income taxes of $138, $1,575 and $29,071, respectively. In 2020, we did not receive a federal tax refund. We received federal tax refunds of $5,401 and $1,503 in 2019 and 2018, respectively, which resulted from the utilization of our net operating losses and net capital loss carryforwards and carrybacks. We made no interest payments in 2020, 2019 and 2018 . These payments exclude interest credited to policyholders' accounts. Deferred Policy Acquisition Costs ("DAC") Certain costs associated with underwriting new business (primarily commissions, premium taxes and variable underwriting and policy issue expenses associated with successful acquisition efforts) are deferred. The following table is a summary of the components of DAC that are reported in the accompanying Consolidated Financial Statements. Continuing Operations - Property and Casualty Insurance 2020 2019 2018 Recorded asset at beginning of year $ 94,292 $ 92,796 $ 88,102 Underwriting costs deferred 203,054 218,195 210,926 Amortization of deferred policy acquisition costs (210,252) (216,699) (206,232) Recorded asset at end of year $ 87,094 $ 94,292 $ 92,796 Discontinued Operations - Life Insurance Recorded asset at beginning of year $ — $ — $ 71,151 Underwriting costs deferred — — 1,376 Amortization of deferred policy acquisition costs — — (1,895) $ — $ — $ 70,632 Change in "shadow" deferred policy acquisition costs — — 7,274 Sale of discontinued operations — — (77,906) Recorded asset at end of year $ — $ — $ — Total Recorded asset at beginning of year $ 94,292 $ 92,796 $ 159,253 Underwriting costs deferred 203,054 218,195 212,302 Amortization of deferred policy acquisition costs (210,252) (216,699) (208,127) $ 87,094 $ 94,292 $ 163,428 Change in "shadow" deferred policy acquisition costs — — 7,274 Sale of discontinued operations — — (77,906) Recorded asset at end of year $ 87,094 $ 94,292 $ 92,796 Our continuing operations property and casualty insurance DAC is amortized as premium revenue is recognized. The method followed in computing DAC limits the amount of such deferred costs to their estimated realizable value. This takes into account the premium to be earned, losses and loss settlement expenses expected to be incurred and certain other costs expected to be incurred as the premium is earned. This calculation is performed by line of business in a manner consistent with how the policies are currently being marketed and managed. For the discontinued operations traditional life insurance policies, DAC was amortized to income over the premium-paying period in proportion to the ratio of the expected annual premium revenue to the expected total premium revenue. Expected premium revenue and gross profits are based on the same mortality and withdrawal assumptions used in determining future policy benefits. These assumptions are not revised after policy issuance unless the recorded DAC asset is deemed to be unrecoverable from future expected profits. For the discontinued operations non-traditional life insurance policies, DAC is amortized over the anticipated terms in proportion to the ratio of the expected annual gross profits to the total expected gross profits. Changes in the amount or timing of expected gross profits result in adjustments to the cumulative amortization of these costs. The effect on amortization of DAC for revisions to estimated gross profits is reported in earnings in the period the estimated gross profits are revised. Property, Equipment and Depreciation Property and equipment is presented at cost less accumulated depreciation. The following table is a summary of the components of the property and equipment that are reported in the accompanying Consolidated Financial Statements. 2020 2019 Real estate: Land $ 2,974 $ 2,982 Buildings 85,776 83,360 Furniture and fixtures 6,058 7,253 Computer equipment and software 35,066 23,394 Airplane — — Total property and equipment $ 129,874 $ 116,989 Expenditures for maintenance and repairs on property and equipment are generally expensed as incurred. We periodically review these assets for impairment whenever events or changes in business circumstances indicate that the carrying value of the underlying asset may not be recoverable. A loss would be recognized if the estimated fair value of the asset were less than its carrying value. Depreciation is computed primarily by the straight-line method over the following estimated useful lives: Useful Life Computer equipment and software Three years Furniture and fixtures Seven years Leasehold improvements Shorter of the lease term or useful life of the asset Real estate Seven years to thirty-nine years Airplane Five years Depreciation expense totaled $5,947, $10,482 and $4,455 for 2020, 2019 and 2018, respectively. Goodwill and Other Intangible Assets Goodwill assets arise as a result of business combinations and consist of the excess of the fair value of consideration paid over the tangible and intangible assets acquired and liabilities assumed. All of our goodwill assets relate to the acquisition of Mercer Insurance Group, Inc. on March 28, 2011. We evaluate goodwill assets for impairment at least on an annual basis or whenever events or changes in circumstances indicate that it is more likely than not that the carrying amount of goodwill assets may exceed their implied fair value. Any impairment is recognized in the period that the impairment is identified. During the third quarter of 2020, we completed our annual quantitative analysis of goodwill. As a result of the quantitative analysis, we impaired the remaining balance of our goodwill of $15,091 as of September 30, 2020, based on the following factors: (i) disruptions in the equity markets, specifically for property and casualty insurance companies, as a result of the COVID-19 pandemic and due to recent weather related catastrophes; (ii) recent elevated commercial auto loss ratios and (iii) the fair value of our stock trading significantly below book value. The Company used a weighting of the income and market approaches to determine the fair value of the reporting unit. Our other intangible assets, which consist primarily of agency relationships, trade names, state insurance licenses, and software, are being amortized by the straight-line method over periods ranging from 2 years to 15 years, with the exception of state insurance licenses, which are indefinite-lived and not amortized. In 2020, 2019 and 2018 we performed a qualitative impairment assessment of our indefinite lived intangible assets. As a result of these assessments, we did not recognize an impairment charge on our intangible assets in 2020, 2019 and 2018. Amortization expense totaled $709 , $709 and $719 in 2020, 2019 and 2018, respectively. Long term debt The Company executed a private placement debt transaction on December 15, 2020 between United Fire & Casualty Company ("UF&C"), and Federated Mutual Insurance Company, a mutual insurance company domiciled in Minnesota ("Federated Mutual"), and Federated Life Insurance Company, an insurance company domiciled in Minnesota ("Federated Life” and, together with Federated Mutual, the "Note Purchasers"). UFG sold an aggregate $50,000 of notes due 2040 to the Note Purchasers. One note with a principal amount of $35,000 was issued to Federated Mutual and one note with a principal amount of $15,000 was issued to Federated Life subject to the terms of their respective notes. The notes are presented as a Long term debt liability in the Consolidated Balance Sheets and as a financing activity in the Consolidated Statement of Cash Flows. The Company incurred $24 in debt issuance costs associated with this debt transaction in 2020 which are included in other underwriting expenses in the Consolidated Statements of Income and Comprehensive Income. Interest payments under the surplus notes will be paid quarterly on March 15, June 15, September 15 and December 15 of each year (each such date, an "Interest Payment Date"). The interest rate will equal the rate that corresponds to the A.M. Best Co. (or its successor’s) financial strength rating for members of the United Fire & Casualty Pooled Group as of the applicable Interest Payment Date. As of December 31, 2020, interest totaled $133 and is included in accrued expenses and other liabilities in the Consolidated Balance Sheets and as an expense in other underwriting expenses in the Consolidated Statements of Income and Comprehensive Income. Payment of interest is subject to approval by the Iowa Insurance Division. Income Taxes The Tax Cuts and Jobs Act of 2017 (the "Tax Act") was enacted on December 22, 2017. The Tax Act significantly revised the U.S. corporate income tax laws including lowering the U.S. federal corporate tax rate from 35 percent to 21 percent, effective January 1, 2018. In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118, which addresses how a company recognizes provisional amounts when a company does not have the necessary information available, prepared or analyzed in reasonable detail to complete its accounting for the effect of the changes in the Tax Act. The measurement period ends when a company has obtained, prepared and analyzed the information necessary to finalize its accounting, but cannot extend beyond one year. As of December 31, 2018 we had completed accounting for the tax effects of enactment of the Tax Act and no adjustments were made during the measurement period. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") was enacted in response to the COVID-19 pandemic. The CARES Act, among other things, permits net operating loss ("NOL") carryovers and carrybacks to offset 100 percent of taxable income for taxable years beginning before 2021. In addition, the CARES Act allows NOLs incurred in 2020, 2019 and 2018 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes. The Company has considered the implications of the CARES Act on its tax provision and has included an income tax benefit of $18.6 million as the result of this Act. Deferred tax assets and liabilities are established based on differences between the financial statement bases of assets and liabilities and the tax bases of those same assets and liabilities, using the currently enacted statutory tax rates. Deferred income tax expense is measured by the year-to-year change in the net deferred tax asset or liability, except for certain changes in deferred tax amounts that affect stockholders' equity and do not impact federal income tax expense. The Company performs a quarterly review of its tax positions and makes a determination whether it is more likely than not that the tax position will be sustained upon examination. If, based on this review, it appears not more likely than not that the position will be sustained, the Company will calculate any unrecognized tax benefits and calculate any interest and penalties. At December 31, 2020, 2019, and 2018 the Company did not recognize any liability for unrecognized tax benefits. In addition, we have not accrued for interest and penalties related to unrecognized tax benefits. However, if interest and penalties would need to be accrued related to unrecognized tax benefits, such amounts would be recognized as a component of federal income tax expense. We file a consolidated federal income tax return. We also file income tax returns in various state jurisdictions. We are no longer subject to federal or state income tax examination for years before 2017. Leases The Company determines if a contract contains a lease at inception of the contract. The Company's inventory of leases consists of operating leases which are recorded as a lease obligation liability disclosed in the "Accrued expenses and other liabilities" line on the Consolidated Balance Sheets and as a lease right-of-use asset disclosed in the "Other assets" line on the Consolidated Balance Sheets. The Company's operating leases consist of office space, vehicles, computer equipment and office equipment. The lease right-of-use asset represents the Company's right to use each underlying asset for the lease term and the lease obligation liability represents the Company's obligation over the lease term. The Company's lease obligation is recorded at the present value of the lease payments based on the term of the applied lease. Short-term leases of 12 months or less are recorded on the Consolidated Balance Sheets and lease payments are recognized on the Consolidated Statements of Income and Comprehensive Income. For more information on leases refer to Note 13 "Lease Commitments." Variable Interest Entities The Company and certain related parties are equity investors in one investment in which the Company determined is a variable interest entity ("VIE") as a result of participation in the risks and rewards of the VIE based on the objectives and strategies of the VIE. The VIE is a limited liability company that primarily invests in commercial real estate. The Company and certain related parties are not the primary beneficiary largely due to their inability to influence management or direct the activities that most significantly impact the VIE's economic performance. Based on these facts and circumstances, the Company has a variable interest in the VIE, but has not consolidated the VIE's financial results as it is not the primary beneficiary. The Company's investment is reported in other long-term investments in the Consolidated Balance Sheets and accounted for under the equity method of accounting. The fair value of the VIE at December 31, 2020 wa s $3.3 million a nd there are no future funding commitments. Stock-Based Compensation We currently have two equity compensation plans. One plan allows us to grant restricted and unrestricted stock, stock appreciation rights, incentive stock options, and non-qualified stock options to employees. The other plan allows us to grant restricted and non-qualified stock options to non-employee directors. We utilize the Black-Scholes option pricing method to establish the fair value of non-qualified stock options granted under our equity compensation plans. Our determination of the fair value of stock options on the date of grant using this option-pricing model is affected by our stock price, as well as assumptions regarding a number of complex and subjective variables, which include the expected volatility in our stock price, the expected term of the award, the expected dividends to be paid over the term of the award and the expected risk-free interest rate. Any changes in these assumptions may materially affect the estimated fair value of the award. For our restricted and unrestricted stock awards, we utilize the fair value of our common stock on the date of grant to establish the fair value of the award. Refer to Note 9 "Stock-Based Compensation" for further discussion. Credit Losses The Company recognizes credit losses for its available-for-sale fixed-maturity portfolio, reinsurance receivables, mortgage loans and premium receivables by setting up allowances which are remeasured each reporting period and recorded in the Consolidated Statements of Income and Comprehensive Income. For our available-for-sale fixed-maturity portfolio an allowance for credit losses is recorded net of available-for-sale fixed maturities in the Consolidated Balance Sheets and a corresponding credit loss recognized as a realized loss or gain in the Consolidated Statements of Income and Comprehensive Income. The Company determines if an allowance for credit losses is recorded based on a number of factors including the current economic conditions, management's expectations of future economic conditions and performance indicators, such as market value vs. amortized cost, investment spreads widening or contracting, rating actions, payment and default history. The Company does not recognize an allowance for credit losses for accrued interest receivable for available-for-sale fixed-maturity securities, which is recorded in "Accrued investment income" in the Consolidated Balance Sheets and "Investment income, net of investment expenses" in the Consolidated Statements of Income and Comprehensive Income. The Company considers collections of accrued investment income within six months to be timely and therefore not requiring a write- off. If a write-off is required for accrued investment income outstanding greater than six months, the Company writes off accrued interest by reversing net investment income. For more information on credit losses and the allowance for credit losses for available-for-sale fixed-maturity portfolio, see Note 2 "Summary of Investments." An allowance for mortgage loan losses is established based on historical loss information of the collective pool of the Company's commercial mortgage loan investments which have similar risk characteristics. To calculate the allowance for mortgage loan losses, the Company starts with historical loan experience to predict the future expected losses and then layers on a market-linked adjustment. On a quarterly basis, quantitative credit risk metrics, including for example, cash- flows, rent rolls and financial statements are reviewed for each loan to determine if it is performing in line with its expectations. This allowance is presented as a separate line in the Consolidated Balance Sheets beneath the asset value as well as presented net and recorded through "Net realized investment gains (losses)" in the Consolidated Statements of Income and Comprehensive Income. For more information on credit losses and the allowance for credit losses for our investment in mortgage loans see Note 3 "Fair Value of Financial Instruments." For reinsurance receivables, the Company's model estimates expected credit loss by multiplying the exposure at default by both the probability of default and loss given default ("LGD"). The LGD is estimated by the rating of the Company, historical relationship with UFG, existence of letters of credit and known regulation the Company may be held accountable for. The ultimate LGD percentage is estimated after considering Moody’s experience with unsecured year 1 bond recovery rates from 1983-2017. The allowance calculated as of December 31, 2020 is recorded through the line "Reinsurance receivables and recoverables" in the Consolidated Balance Sheets and through the line "Other underwriting expenses" in the Consolidated Statements of Income and Other Comprehensive Income. As of December 31, 2020, the Company had a credit loss allowance for reinsurance receivables of $190. Rollforward of Credit Loss Allowance for Reinsurance Receivable As of December 31, 2020 Beginning balance, January 1, 2020 $ 38 Current-period provision for expected credit losses 152 Write-off charged against the allowance, if any — Recoveries of amounts previously written off, if any — Ending balance of the allowance for reinsurance receivable, December 31, 2020 $ 190 With respect to premiums receivable, the Company utilizes an aging method to estimate credit losses. An allowance for doubtful accounts is based on a periodic evaluation of the aging and collectability of amounts due from agents and policyholders. "Premiums receivable" are presented in the Consolidated Balance Sheets net of an estimated allowance for doubtful accounts and recorded through "Other underwriting expenses" in the Consolidated Statements of Income and Comprehensive Income. Comprehensive Income Comprehensive income includes all changes in stockholders' equity during a period except those resulting from investments by and dividends to stockholders. Subsequent Events In the preparation of the accompanying financial statements, the Company has evaluated all material subsequent events or transactions that occurred after the balance sheet date through the date on which the financial statements were issued for potential recognition or disclosure in the Company's financial statements. Subsequent to the completion of the financial statements as of December 31, 2020, the Company made the decision to change the post-retirement benefit plan to a voluntary plan funded exclusively by participants, commencing at the start of 2023. The impact of this decision will be reflected in the financial statements subsequent to December 31, 2020. As of December 31, 2020, the post-retirement benefit obligation was $31,666. This benefit obligation, along with the unrecognized prior service costs, will be released into the Consolidated Statement of Income and Other Comprehensive Income over the next two years. See Note 8 "Employee Benefits" for more information. COVID-19 Pandemic The COVID-19 pandemic caused significant financial market volatility, economic uncertainty and interruptions to normal business activities in 2020. As of the date of this report, we expect the effect of COVID-19 on claims currently under our coverages to be manageable, based on the information presently available. However, the effects of the COVID-19 pandemic continue to evolve and we cannot predict the extent to which our business, results of operations, financial condition, liquidity, capital position, the value of investments we hold in our investment portfolio, premiums and the demand for our products and our ability to collect premiums or requirement to return premiums to our policyholders, will ultimately be impacted. Additionally, if established written contract policy exclusions of business interruption coverage for losses attributable to the COVID-19 pandemic are voided or changed through legislation, regulations or interpretations by the courts, such changes have the potential to materially increase claims, losses and legal expenses which may impact our business, financial condition, results of operations or liquidity. Recently Issued Accounting Standards Accounting Standards Adopted in 2020 Intangibles - Other Internal Use Software In August 2018, the FASB issued guidance to align the requirements for capitalizing implementation costs incurred in a cloud computing hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The guidance requires the Company to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. The new guidance was effective for annual and interim periods beginning after December 15, 2019. The Company adopted the new guidance as of January 1, 2020. The adoption did not have a significant impact on the Company's financial position or results of operations. Financial Instruments - Credit Losses In June 2016, the FASB issued new guidance on the measurement of credit losses for most financial instruments. The new guidance replaces the incurred loss model for recognizing credit losses with an expected loss model for instrume |
SUMMARY OF INVESTMENTS
SUMMARY OF INVESTMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
SUMMARY OF INVESTMENTS | SUMMARY OF INVESTMENTS Fair Value of Investments The table that follows is a reconciliation of the amortized cost (cost for equity securities) to fair value of investments in available-for-sale fixed maturity securities, presented on a consolidated basis as of December 31, 2020 and 2019. December 31, 2020 Type of Investment Cost or Amortized Cost Gross Unrealized Appreciation Gross Unrealized Depreciation Fair Value Allowance for Credit Losses Carrying Value AVAILABLE-FOR-SALE Fixed maturities Bonds U.S. Treasury $ 149,481 $ 482 $ 25 $ 149,938 $ — $ 149,938 U.S. government agency 60,502 4,016 — 64,518 — 64,518 States, municipalities and political subdivisions General obligations: Midwest 77,933 4,047 — 81,980 — 81,980 Northeast 29,071 1,379 — 30,450 — 30,450 South 104,522 5,448 — 109,970 — 109,970 West 102,590 7,431 — 110,021 — 110,021 Special revenue: Midwest 115,956 9,142 — 125,098 — 125,098 Northeast 56,317 4,759 — 61,076 — 61,076 South 208,739 17,967 — 226,706 — 226,706 West 129,417 9,982 — 139,399 — 139,399 Foreign bonds 27,799 1,805 2 29,602 — 29,602 Public utilities 76,114 7,388 — 83,502 — 83,502 Corporate bonds Energy 22,441 2,895 — 25,336 — 25,336 Industrials 39,513 3,744 — 43,257 — 43,257 Consumer goods and services 46,521 4,046 — 50,567 — 50,567 Health care 6,678 898 — 7,576 — 7,576 Technology, media and telecommunications 37,270 4,381 15 41,636 — 41,636 Financial services 93,736 7,564 269 101,031 5 101,026 Mortgage-backed securities 20,305 326 54 20,577 — 20,577 Collateralized mortgage obligations Government national mortgage association 81,758 4,439 45 86,152 — 86,152 Federal home loan mortgage corporation 151,362 2,239 758 152,843 — 152,843 Federal national mortgage association 81,952 2,013 683 83,282 — 83,282 Asset-backed securities 314 612 — 926 — 926 Total Available-For-Sale Fixed Maturities $ 1,720,291 $ 107,003 $ 1,851 $ 1,825,443 $ 5 $ 1,825,438 December 31, 2019 Type of Investment Cost or Amortized Cost Gross Unrealized Appreciation Gross Unrealized Depreciation Fair Value AVAILABLE-FOR-SALE Fixed maturities Bonds U.S. Treasury $ 69,300 $ 203 $ 12 $ 69,491 U.S. government agency 97,962 2,344 104 100,202 States, municipalities and political subdivisions General obligations: Midwest 85,607 2,987 — 88,594 Northeast 30,120 1,150 — 31,270 South 111,688 3,515 — 115,203 West 105,569 4,748 — 110,317 Special revenue: Midwest 133,717 6,175 — 139,892 Northeast 58,665 2,878 — 61,543 South 224,214 10,452 — 234,666 West 138,557 6,287 — 144,844 Foreign bonds 4,936 181 — 5,117 Public utilities 60,950 2,701 — 63,651 Corporate bonds Energy 28,695 1,429 — 30,124 Industrials 52,249 1,766 — 54,015 Consumer goods and services 47,131 2,335 — 49,466 Health care 8,998 482 — 9,480 Technology, media and telecommunications 25,931 1,739 — 27,670 Financial services 96,613 3,870 230 100,253 Mortgage-backed securities 6,250 127 21 6,356 Collateralized mortgage obligations Government national mortgage association 78,400 2,053 97 80,356 Federal home loan mortgage corporation 123,572 1,150 220 124,502 Federal national mortgage association 70,322 1,631 108 71,845 Asset-backed securities 314 436 — 750 Total Available-For-Sale Fixed Maturities $ 1,659,760 $ 60,639 $ 792 $ 1,719,607 Maturities The amortized cost and fair value of available-for-sale fixed maturity securities at December 31, 2020, by contractual maturity, are shown in the following table. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Asset-backed securities, mortgage-backed securities and collateralized mortgage obligations may be subject to prepayment risk and are therefore not categorized by contractual maturity. Maturities Available-For-Sale December 31, 2020 Amortized Cost Fair Value Due in one year or less $ 32,214 $ 32,467 Due after one year through five years 476,667 502,699 Due after five years through 10 years 400,277 431,271 Due after 10 years 475,442 515,226 Asset-backed securities 314 926 Mortgage-backed securities 20,305 20,577 Collateralized mortgage obligations 315,072 322,277 $ 1,720,291 $ 1,825,443 Net Realized Investment Gains and Losses Net realized gains (losses) on disposition of investments are computed using the specific identification method and are included in the computation of net income. A summary of net realized investment gains (losses) for 2020, 2019 and 2018, is as follows: 2020 2019 2018 Net realized investment gains (losses) from continuing operations Fixed maturities: Available-for-sale $ 1,787 $ 655 $ (254) Allowance for credit losses (5) — — Trading securities Change in fair value (3,314) 1,351 (296) Sales 2,950 1,993 1,226 Equity securities Change in fair value (6,875) 51,231 (21,994) Sales (26,906) 725 1,702 Mortgage loans (4) (26) (46) Real estate (28) (2,150) (517) Total net realized investment gains (losses) from continuing operations $ (32,395) $ 53,779 $ (20,179) Total net realized investment gains (losses) from discontinued operations — — (1,057) Total net realized investment gains (losses) $ (32,395) $ 53,779 $ (21,236) The proceeds and gross realized gains (losses) on the sale of available-for-sale fixed maturity securities from continuing operations for 2020, 2019 and 2018, are as follows: 2020 2019 2018 Proceeds from sales $ 50,744 $ 41,760 $ 132,250 Gross realized gains 1,400 302 140 Gross realized losses (495) (13) (517) There were no proceeds and gross realized gains (losses) on the sale of available-for-sale fixed maturity securities from discontinued operations for 2020, 2019 and 2018. Our investment portfolio includes trading securities with embedded derivatives. These securities are primarily convertible securities which are recorded at fair value. Income or loss, including the change in the fair value of these trading securities, is recognized currently in earnings as a component of net realized investment gains and losses. Our portfolio of trading securities had a fair value of $0 and $15,256 at December 31, 2020 and 2019, respectively. Net investment income for the years ended December 31, 2020, 2019 and 2018, is comprised of the following: Years Ended December 31, 2020 2019 2018 Investment income from continuing operations: Interest on fixed maturities $ 46,478 $ 50,274 $ 51,356 Dividends on equity securities 6,368 7,842 7,731 Income on other long-term investments Investment income 1,890 3,115 8,383 Change in value (1) (9,633) 1,114 (10,116) Interest on mortgage loans 1,949 1,595 412 Interest on short-term investments 107 522 606 Interest on cash and cash equivalents 763 2,681 1,875 Other 205 252 307 Total investment income from continuing operations $ 48,127 $ 67,395 $ 60,554 Less investment expenses 8,457 6,981 7,660 Net investment income from continuing operations $ 39,670 $ 60,414 $ 52,894 Net investment income from discontinued operations $ — $ — $ 12,663 Net investment income $ 39,670 $ 60,414 $ 65,557 (1) Represents the change in value of our interests in limited liability partnerships that are recorded on the equity method of accounting. Funding Commitment Pursuant to agreements with our limited liability partnership investments, we are contractually committed through July 10, 2030 to make capital contributions upon request of the partnerships. Our remaining potential contractual obligation was $8,484 at December 31, 2020. In addition, the Company invested $25,000 in December 2019 in a limited liability partnership investment fund which is subject to a 3-year lockup with a 60 day minimum notice, with 4 possible repurchase dates per year, after the 3-year lockup period is met. The fair value of the investment at December 31, 2020 was $24,867 and there are no remaining capital contributions with this investment. Credit Risk An allowance for credit losses is recorded based on a number of factors including the current economic conditions, management's expectations of future economic conditions and performance indicators, such as market value vs. amortized cost, investment spreads widening or contracting, rating actions, payment and default history. The following table contains a rollforward of the allowance for credit losses for available-for-sale fixed maturity securities at December 31, 2020: Rollforward of allowance for credit losses for available-for-sale fixed maturity securities: As of December 31, 2020 Beginning balance, January 1, 2020 $ — Additions to the allowance for credit losses for which credit losses were not previously recorded 5 Reductions for securities sold during the period (realized) — Writeoffs charged against the allowance — Recoveries of amounts previously written off — Ending balance, December 31, 2020 $ 5 Unrealized Appreciation and Depreciation A summary of changes in net unrealized investment appreciation for 2020, 2019 and 2018, is as follows for continuing operations and discontinued operations: 2020 2019 2018 Change in net unrealized investment appreciation Available-for-sale fixed maturities $ 45,305 $ 71,648 $ (57,475) Deferred policy acquisition costs — — 7,274 Income tax effect (9,514) (15,046) 10,543 Cumulative change in accounting principles — — (191,244) Net unrealized investment depreciation of discontinued operations, sold — — 6,714 Total change in net unrealized investment appreciation (depreciation), net of tax $ 35,791 $ 56,602 $ (224,188) The following tables summarize our fixed maturity securities that were in an unrealized loss position reported on a consolidated basis at December 31, 2020 and 2019. The securities are presented by the length of time they have been continuously in an unrealized loss position. Non-credit related unrealized losses are recognized as a component of other comprehensive income and represent other market movements that are not credit related, for example interest rate changes. We have no intent to sell, and it is more likely than not that we will not be required to sell, these securities until the fair value recovers to at least equal our cost basis or the securities mature. December 31, 2020 Less than 12 months 12 months or longer Total Type of Investment Number Fair Gross Unrealized Number Fair Gross Unrealized Depreciation Fair Gross Unrealized Depreciation AVAILABLE-FOR-SALE Fixed maturities Bonds U.S. Treasury 5 $ 86,371 $ 25 — $ — $ — $ 86,371 $ 25 Foreign bonds 1 2,000 2 — — — 2,000 2 Corporate bonds Technology, media and telecommunications 1 2,020 15 — — — 2,020 15 Financial services 1 2,995 5 1 3,000 7 5,995 12 Mortgage-backed securities 2 8,099 53 5 118 1 8,217 54 Collateralized mortgage obligations Government national mortgage association 2 12,394 45 1 24 — 12,418 45 Federal home loan mortgage corporation 24 97,691 758 1 26 — 97,717 758 Federal national mortgage association 10 44,677 683 — — — 44,677 683 Total Available-for-Sale Fixed Maturities 46 $ 256,247 $ 1,586 8 $ 3,168 $ 8 $ 259,415 $ 1,594 The unrealized losses on our investments in available-for-sale fixed maturities were the result of interest rate movements. We have no intent to sell, and it is more likely than not that we will not be required to sell, these securities until the fair value recovers to at least equal our cost basis or the securities mature. December 31, 2019 Less than 12 months 12 months or longer Total Type of Investment Number Fair Gross Unrealized Depreciation Number Fair Gross Unrealized Depreciation Fair Gross Unrealized Depreciation AVAILABLE-FOR-SALE Fixed maturities Bonds U.S. Treasury — $ — $ — 2 $ 4,733 $ 12 $ 4,733 $ 12 U.S. government agency 3 13,846 104 — — — 13,846 104 Corporate bonds - financial services 3 10,906 142 1 4,913 88 15,819 230 Mortgage-backed securities — — — 13 1,585 21 1,585 21 Collateralized mortgage obligations Government national mortgage association 2 8,444 38 5 3,053 59 11,497 97 Federal home loan mortgage corporation 12 50,829 183 3 4,844 37 55,673 220 Federal national mortgage association 4 23,515 90 3 1,102 18 24,617 108 Total Available-for-Sale Fixed Maturities 24 $ 107,540 $ 557 27 $ 20,230 $ 235 $ 127,770 $ 792 |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS Current accounting guidance on fair value measurements includes the application of a fair value hierarchy that requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Our financial instruments that are recorded at fair value are categorized into a three-level hierarchy, which is based upon the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets (i.e., Level 1) and the lowest priority to unobservable inputs (i.e., Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the financial instrument. Financial instruments recorded at fair value are categorized in the fair value hierarchy as follows: • Level 1 : Valuations are based on unadjusted quoted prices in active markets for identical financial instruments that we have the ability to access. • Level 2 : Valuations are based on quoted prices for similar financial instruments, other than quoted prices included in Level 1, in markets that are not active or on inputs that are observable either directly or indirectly for the full term of the financial instrument. • Level 3 : Valuations are based on pricing or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement of the financial instrument. Such inputs may reflect management's own assumptions about the assumptions a market participant would use in pricing the financial instrument. We review our fair value hierarchy categorizations on a quarterly basis at which time the classification of certain financial instruments may change if the input observations have changed. Transfers between levels, if any, are recorded as of the beginning of the reporting period. To determine the fair value of the majority of our investments, we utilize prices obtained from independent, nationally recognized pricing services. We obtain one price for each security. When the pricing services cannot provide a determination of fair value for a specific security, we obtain non-binding price quotes from broker-dealers with whom we have had several years of experience and who have demonstrated knowledge of the subject security. We request and utilize one broker quote per security. In order to determine the proper classification in the fair value hierarchy for each security where the price is obtained from an independent pricing service, we obtain and evaluate the vendors' pricing procedures and inputs used to price the security, which include unadjusted quoted market prices for identical securities, such as a New York Stock Exchange closing price, and quoted prices for identical securities in markets that are not active. For fixed maturity securities, an evaluation of interest rates and yield curves observable at commonly quoted intervals, volatility, prepayment speeds, credit risks and default rates may also be performed. We have determined that these processes and inputs result in fair values and classifications consistent with the applicable accounting guidance on fair value measurements. When possible, we use quoted market prices to determine the fair value of fixed maturities, equity securities, trading securities and short-term investments. When quoted market prices do not exist, we base estimates of fair value on market information obtained from independent pricing services and brokers or on valuation techniques that are both unobservable and significant to the overall fair value measurement of the financial instrument. Such inputs may reflect management's own assumptions about the assumptions a market participant would use in pricing the financial instrument. Our valuation techniques are discussed in more detail throughout this section. The mortgage loan portfolio consists entirely of commercial mortgage loans. The fair value of our mortgage loans is determined by modeling performed by our third party fund manager based on the stated principal and coupon payments provided for in the loan agreements. These cash flows are then discounted using an appropriate risk-adjusted discount rate to determine the security's fair value. Our other long-term investments consist primarily of our interests in limited liability partnerships that are recorded on the equity method of accounting. The fair value of the partnerships is obtained from the fund managers, which is based on the fair value of the underlying investments held in the partnerships. In management's opinion, these values represent a reasonable estimate of fair value. We have not adjusted the net asset value provided by the fund managers. For cash and cash equivalents and accrued investment income, carrying value is a reasonable estimate of fair value due to the short-term nature of these financial instruments. The Company formed a rabbi trust in 2014 to fund obligations under the United Fire & Casualty Company Non-qualified Deferred Compensation Plan and United Fire Group Supplemental Executive Retirement and Deferral Plan (collectively the "Executive Retirement Plans"). Within the rabbi trust, corporate-owned life insurance ("COLI") policies are utilized as an investment vehicle and source of funding for the Company's Executive Retirement Plans. The COLI policies invest in mutual funds, which are priced daily by independent sources. As of December 31, 2020, the cash surrender value of the COLI policies was $8,557, which is equal to the fair value measured using Level 2 inputs, based on the underlying assets of the COLI policies, and is included in other assets in the Consolidated Balance Sheets. A summary of the carrying value and estimated fair value of our financial instruments from at December 31, 2020 and 2019 is as follows: December 31, 2020 December 31, 2019 Fair Value Carrying Value Fair Value Carrying Value Assets Investments Fixed maturities: Available-for-sale securities $ 1,825,443 $ 1,825,438 $ 1,719,607 $ 1,719,607 Trading securities — — 15,256 15,256 Equity securities 206,685 206,685 299,203 299,203 Mortgage loans 48,932 47,614 43,992 42,448 Other long-term investments 69,305 69,305 78,410 78,410 Short-term investments 175 175 175 175 Cash and cash equivalents 87,948 87,948 120,722 120,722 Corporate-owned life insurance 8,557 8,557 6,777 6,777 Liabilities Long term debt 50,000 50,000 — — The following tables present the categorization for our financial instruments measured at fair value on a recurring basis. The tables include financial instruments at December 31, 2020 and 2019: Fair Value Measurements Description December 31, 2020 Level 1 Level 2 Level 3 AVAILABLE-FOR-SALE Fixed maturities Bonds U.S. Treasury $ 149,938 $ — $ 149,938 $ — U.S. government agency 64,518 — 64,518 — States, municipalities and political subdivisions General obligations Midwest 81,980 — 81,980 — Northeast 30,450 — 30,450 — South 109,970 — 109,970 — West 110,021 — 110,021 — Special revenue Midwest 125,098 — 125,098 — Northeast 61,076 — 61,076 — South 226,706 — 226,706 — West 139,399 — 139,399 — Foreign bonds 29,602 — 29,602 — Public utilities 83,502 — 83,502 — Corporate bonds Energy 25,336 — 25,336 — Industrials 43,257 — 43,257 — Consumer goods and services 50,567 — 50,567 — Health care 7,576 — 7,576 — Technology, media and telecommunications 41,636 — 41,636 — Financial services 101,031 — 100,781 250 Mortgage-backed securities 20,577 — 20,577 — Collateralized mortgage obligations Government national mortgage association 86,152 — 86,152 — Federal home loan mortgage corporation 152,843 — 152,843 — Federal national mortgage association 83,282 — 83,282 — Asset-backed securities 926 — 926 Total Available-For-Sale Fixed Maturities $ 1,825,443 $ — $ 1,824,267 $ 1,176 Equity securities Public utilities 16,320 16,320 — — Energy 9,918 9,918 — — Industrials 36,556 36,556 — — Consumer goods and services 32,061 32,061 — — Health care 24,549 24,549 — — Technology, Media & Telecommunications 17,109 17,109 — — Financial Services 69,577 69,577 — — Nonredeemable preferred stocks 595 — 595 Total Equity Securities $ 206,685 $ 206,090 $ — $ 595 Short-Term Investments $ 175 $ 175 $ — $ — Money Market Accounts $ 24,790 $ 24,790 $ — $ — Corporate-Owned Life Insurance $ 8,557 $ 8,557 $ — Total Assets Measured at Fair Value $ 2,065,650 $ 239,612 $ 1,824,267 $ 1,771 Fair Value Measurements Description December 31, 2019 Level 1 Level 2 Level 3 AVAILABLE-FOR-SALE Fixed maturities Bonds U.S. Treasury $ 69,491 $ — $ 69,491 $ — U.S. government agency 100,202 — 100,202 — States, municipalities and political subdivisions General obligations Midwest 88,594 — 88,594 — Northeast 31,270 — 31,270 — South 115,203 — 115,203 — West 110,317 — 110,317 — Special revenue Midwest 139,892 — 139,892 — Northeast 61,543 — 61,543 — South 234,666 — 234,666 — West 144,844 — 144,844 — Foreign bonds 5,117 — 5,117 — Public utilities 63,651 — 63,651 — Corporate bonds Energy 30,124 — 30,124 — Industrials 54,015 — 54,015 — Consumer goods and services 49,466 — 49,466 — Health care 9,480 — 9,480 — Technology, media and telecommunications 27,670 — 27,670 — Financial services 100,253 — 100,003 250 Mortgage-backed securities 6,356 — 6,356 — Collateralized mortgage obligations Government national mortgage association 80,356 — 80,356 — Federal home loan mortgage corporation 124,502 — 124,502 — Federal national mortgage association 71,845 — 71,845 — Asset-backed securities 750 — — 750 Total Available-For-Sale Fixed Maturities $ 1,719,607 $ — $ 1,718,607 $ 1,000 TRADING Fixed maturities Bonds Corporate bonds Consumer goods and services $ 2,276 $ — $ 2,276 $ — Health care 4,701 — 4,701 — Technology, media and telecommunications 1,732 — 1,732 — Financial services 2,460 — 2,460 — Redeemable preferred stocks 4,087 4,087 — — Total Trading Securities $ 15,256 $ 4,087 $ 11,169 $ — Equity securities Public utilities $ 16,295 $ 16,295 $ — $ — Energy 14,639 14,639 — — Industrials 57,330 57,330 — — Consumer goods and services 29,935 29,935 — — Health care 27,285 27,285 — — Financial Services 19,265 19,265 — — Technology, media and telecommunications 127,780 127,780 — — Nonredeemable preferred stocks 6,674 6,079 — 595 Total Equity Securities $ 299,203 $ 298,608 $ — $ 595 Short-Term Investments $ 175 $ 175 $ — $ — Money Market Accounts $ 9,334 $ 9,334 $ — $ — Corporate-Owned Life Insurance $ 6,777 $ — $ 6,777 $ — Total Assets Measured at Fair Value $ 2,050,352 $ 312,204 $ 1,736,553 $ 1,595 The fair value of securities that are categorized as Level 1 is based on quoted market prices that are readily and regularly available. We use a market-based approach for valuing all of our Level 2 securities and submit them primarily to a third-party valuation service provider. Any of these securities not valued by this service provider are submitted to another third-party valuation service provider. Both service providers use a market approach to find pricing of similar financial instruments. The market inputs our service providers normally seek to value our securities include the following, listed in approximate order of priority: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications. The method and inputs for these securities classified as Level 2 are the same regardless of industry category, credit quality, duration, geographical concentration or economic characteristics. For our mortgage-backed securities, collateralized mortgage obligations and asset-backed securities, our service providers use additional market inputs to value these securities, including the following: new issue data, periodic payment information, monthly payment information, collateral performance and real estate analysis from third parties. Our service providers prioritize inputs based on market conditions, and not all inputs listed are available for use in the valuation process for each security on any given day. At least annually, we review the methodologies and assumptions used by our valuation service providers and verify that they are reasonable and representative of the fair value of the underlying securities held in the investment portfolio. We validate the prices obtained from independent pricing services and brokers prior to their use for reporting purposes by evaluating their reasonableness on a monthly basis. In addition, on a quarterly basis, we also test all securities in the portfolio and independently corroborate the valuations obtained from our third-party valuation service providers. Quarterly, we also perform deep dive analysis of the pricing method used by our third-party valuation service provider by selecting a random sample of securities by asset class and reviewing methodologies. In our opinion, the pricing obtained at December 31, 2020 and 2019 was reasonable. For the year ended December 31, 2020, the change in our available-for-sale securities categorized as Level 1 and Level 2 is the result of investment purchases that were made using funds held in our money market accounts, disposals and the change in unrealized gains on both fixed maturities and equity securities. Securities categorized as Level 3 include holdings in certain private placement fixed maturity and equity securities for which an active market does not currently exist. The fair value of our Level 3 private placement securities is determined by management relying on pricing received from our independent pricing services and brokers consistent with the process to estimate fair value for Level 2 securities. However, securities are categorized as Level 3 if these quotes cannot be corroborated by other market observable data due to the unobservable nature of the brokers’ valuation processes. The following table provides a quantitative information about our Level 3 securities at December 31, 2020. Quantitative Information about Level 3 Fair Value Measurements Fair Value at Valuation Technique(s) Unobservable inputs Range of weighted average significant unobservable inputs December 31, 2020 Corporate bonds - financial services $ 250 Fair value equals cost NA NA Fixed Maturities asset-backed securities 926 Discounted cash flow Probability of default 4% - 6% Nonredeemable preferred stocks 595 Discounted cash flow Multiplier 3x - 4x During the twelve month period ended December 31, 2020 and 2019, there were no securities transferred in or out of Level 3. The following table provides a summary of the changes in fair value of our Level 3 securities for 2020: Corporate bonds Asset-backed securities Equities Total Balance at January 1, 2020 $ 250 $ 750 $ 595 $ 1,595 Unrealized gains (1) — 176 — 176 Balance at December 31, 2020 $ 250 $ 926 $ 595 $ 1,771 (1) Unrealized gains are recorded as a component of comprehensive income. The following table provides a summary of the changes in fair value of our Level 3 securities for 2019: Corporate bonds Asset-backed securities Equities Total Balance at January 1, 2019 $ 250 $ 666 $ 595 $ 1,511 Unrealized gains (losses) (1) — 84 — 84 Purchases 100 — — 100 Disposals (100) — — (100) Balance at December 31, 2019 $ 250 $ 750 $ 595 $ 1,595 (1) Unrealized gains (losses) are recorded as a component of comprehensive income. The fixed maturities reported as disposals relate to the receipt of principal on calls or sinking fund bonds, in accordance with the indentures. Commercial Mortgage Loans The following tables present the carrying value of our commercial mortgage loans and additional information at December 31, 2020 and 2019: Commercial Mortgage Loans Loan-to-value December 31, 2020 December 31, 2019 Less than 65% $ 30,361 34,024 65%-75% 17,329 8,496 Total amortized cost $ 47,690 $ 42,520 Valuation allowance (76) (72) Total mortgage loans $ 47,614 $ 42,448 Mortgage Loans by Region December 31, 2020 December 31, 2019 Carrying Value Percent of Total Carrying Value Percent of Total East North Central $ 3,245 6.8 % $ 3,245 7.6 % Southern Atlantic 9,752 20.5 7,026 16.5 East South Central 8,197 17.2 8,358 19.7 New England 6,588 13.8 6,588 15.5 Middle Atlantic 14,936 31.2 15,076 35.5 Mountain 2,227 4.7 2,227 5.2 Other 2,745 5.8 — — Total mortgage loans at amortized cost $ 47,690 100.0 % $ 42,520 100.0 % Mortgage Loans by Property Type December 31, 2020 December 31, 2019 Carrying Value Percent of Total Carrying Value Percent of Total Commercial Multifamily $ 17,038 35.7 % $ 11,741 27.6 % Office 11,861 24.9 11,848 27.9 Industrial 10,124 21.2 10,124 23.8 Retail 2,227 4.7 2,227 5.2 Mixed use/Other 6,440 13.5 6,580 15.5 Total mortgage loans at amortized cost $ 47,690 100.0 % $ 42,520 100.0 % Amortized Cost Basis by Year of Origination and Credit Quality Indicator 2020 2019 2018 Total Commercial mortgage loans: Risk Rating: 1-2 internal grade $ 5,537 $ 8,393 $ 18,676 $ 32,606 3-4 internal grade — 8,496 6,588 15,084 5 internal grade — — — — 6 internal grade — — — — 7 internal grade — — — — Total commercial mortgage loans $ 5,537 $ 16,889 $ 25,264 $ 47,690 Current-period write-offs — — — — Current-period recoveries — — — — Current-period net write-offs $ — $ — $ — $ — Commercial mortgage loans carrying value excludes accrued interest of $168. As of December 31, 2020, all loan receivables were current, with no delinquencies. The commercial mortgage loans originate with an initial loan-to-value ratio to provide sufficient collateral to absorb losses should a loan be required to foreclose. Mortgage loans are evaluated on a quarterly basis for impairment on an individual basis through a monitoring process and review of key credit indicators, such as economic trends, delinquency rates, property valuations, occupancy and rental rates and loan-to-value ratios. A loan is considered impaired when the Company believes it will not collect the contractual principal and interest set forth in the contractual terms of the loan. An internal grade is assigned to each mortgage loan, with a grade of 1 being the highest and least likely for an impairment and the lowest rating of 7 being the most likely for an impairment. An allowance for mortgage loan losses is established on each loan recognizing a loss for amounts which we believe will not be collected according to the contractual terms of the respective loan agreement. As of December 31, 2020, the Company had an allowance for mortgage loan losses of $76, summarized in the following rollforward: Rollforward of allowance for mortgage loan losses: As of December 31, 2020 Beginning balance, January 1, 2020 $ 72 Current-period provision for expected credit losses 4 Write-off charged against the allowance, if any — Recoveries of amounts previously written off, if any — Ending balance of the allowance for mortgage loan losses, December 31, 2020 $ 76 |
REINSURANCE
REINSURANCE | 12 Months Ended |
Dec. 31, 2020 | |
Reinsurance Disclosures [Abstract] | |
REINSURANCE | REINSURANCE Continuing Operations - Property and Casualty Insurance Business Ceded and Assumed Reinsurance Reinsurance is a contract by which one insurer, called the reinsurer, agrees to cover, under certain defined circumstances, a portion of the losses incurred by a primary insurer if a claim is made under a policy issued by the primary insurer. Our property and casualty insurance companies follow the industry practice of reinsuring a portion of their exposure by ceding to reinsurers a portion of the premium received and a portion of the risk under the policies written. We purchase reinsurance to reduce the net liability on individual risks to predetermined limits and to protect us against catastrophic losses, such as a hurricane or tornado. We do not engage in any reinsurance transactions classified as finite risk reinsurance. We account for premiums, written and earned, and losses incurred net of reinsurance ceded. The ceding of insurance does not legally discharge us from primary liability under our policies, and we must pay the loss if the reinsurer fails to meet its obligation. We periodically monitor the financial condition of our reinsurers to confirm that they are financially stable. We believe that all of our reinsurers are in an acceptable financial condition and there were no reinsurance balances at December 31, 2020 for which collection is at risk that would result in a material impact on our Consolidated Financial Statements. The amount of reinsurance recoverable on paid losses totaled $28,887 and $3,883 at December 31, 2020 and 2019, respectively. We also assume both property and casualty insurance from other insurance or reinsurance companies. Most of the business we have assumed is property insurance, with an emphasis on catastrophe coverage. Premiums and losses and loss settlement expenses related to our ceded and assumed business are as follows: Years Ended December 31, 2020 2019 2018 Ceded Business Ceded premiums written $ 88,339 $ 74,511 $ 66,800 Ceded premiums earned 84,924 72,023 63,487 Loss and loss settlement expenses ceded 185,653 28,447 22,317 Assumed Business Assumed premiums written $ 34,371 $ 27,869 $ 16,761 Assumed premiums earned 33,679 25,412 16,957 Loss and loss settlement expenses assumed 29,141 14,813 (3,954) In 2020, we renewed our participation in all of our assumed programs. Loss and loss settlement expenses ceded increased in 2020 as compared to 2019, primarily due to the August Midwest derecho, the recovery of the all lines aggregate program and increase in severity of commercial property and workers' compensation losses. In 2019 we added two additional assumed programs and did not renew one program from 2018. Loss and loss settlement expenses ceded increased in 2019 as compared to 2018, primarily due to an increase in severity of commercial auto losses, assumed reinsurance losses, extra contractual obligations and catastrophe losses. In 2018, we renewed our participation in all of our assumed programs. Refer to Note 5 "Reserves for Losses and Loss Settlement Expenses" for an analysis of changes in our overall property and casualty insurance reserves. Reinsurance Programs and Retentions We have several programs that provide reinsurance coverage. This reinsurance coverage limits the risk of loss that we retain by reinsuring direct risks in excess of our retention limits. The following table provides a summary of our primary reinsurance programs. Retention amounts reflect the accumulated retentions and co-participation of all layers within a program. For 2020, there was an all lines annual aggregate excess of loss program with variable retention of 6.37 percent of gross net earned premium with a minimum retention of $58.5 million and a maximum of $71.5 million. Our all lines aggregate recovery is also limited to $30.0 million and 75.0 percent of the program was placed. For 2020, the Company recovered the maximum of $22.5 million from the all lines annual aggregate excess of loss program. For 2019, there was an all lines annual aggregate excess of loss program with a variable retention of 6.66 percent of gross net earned premium with a minimum retention of $58.5 million and a maximum of $71.5 million. Our all lines aggregate recovery is also limited to a maximum of $30.0 million. For 2018, there was an all lines annual aggregate excess of loss program with a variable retention of 6.78 percent of gross net earned premium with a minimum retention of $58.5 million and a maximum of $71.5 million. Our all lines aggregate recovery is also limited to a maximum of $30.0 million. For 2019 and 2018, the Company did not have any recoveries from the all lines annual aggregate loss program. 2020 Reinsurance Programs Type of Reinsurance Stated Retention Limits Coverage Casualty excess of loss $ 2,500 $ 60,000 100 % of $ 57,500 Property excess of loss 2,500 25,000 100 % of $ 22,500 Surety excess of loss 1,500 45,000 100 % of $ 43,500 Property catastrophe, excess 20,000 250,000 100 % of $ 230,000 Boiler and machinery N/A 50,000 100 % of $ 50,000 2019 Reinsurance Programs Type of Reinsurance Stated Retention Limits Coverage Casualty excess of loss $ 2,500 $ 60,000 100 % of $ 57,500 Property excess of loss 2,500 25,000 100 % of $ 22,500 Surety excess of loss 1,500 45,000 100 % of $ 43,500 Property catastrophe, excess 20,000 250,000 100 % of $ 230,000 Boiler and machinery N/A 50,000 100 % of $ 50,000 2018 Reinsurance Programs Type of Reinsurance Stated Retention Limits Coverage Casualty excess of loss $ 2,500 $ 60,000 100 % of $ 57,500 Property excess of loss 2,500 25,000 100 % of $ 22,500 Surety excess of loss 1,500 45,000 100 % of $ 43,500 Property catastrophe, excess 20,000 250,000 100 % of $ 230,000 Boiler and machinery N/A 50,000 100 % of $ 50,000 If we incur catastrophe losses and loss settlement expenses that exceed the coverage limits of our reinsurance program, our property catastrophe program provides one guaranteed reinstatement. In such an instance, we are required to pay the reinsurers a reinstatement premium equal to the full amount of the original premium, which will reinstate the full amount of reinsurance available under the property catastrophe program. Discontinued Operations - Life Insurance Business Premiums and losses and loss settlement expenses related to our ceded business are as follows: Years Ended December 31, 2020 2019 2018 Ceded Business Ceded insurance in-force $ — $ — $ — Ceded premiums earned — — 716 Loss and loss settlement expenses ceded — — 1,473 The ceding of insurance did not legally discharge United Life from primary liability under its policies. United Life must pay the loss if the reinsurer fails to meet its obligations. United Life periodically monitored the financial condition of their reinsurers to confirm that they were financially stable and had strong credit ratings. We believe that all of the reinsurers were in an acceptable financial condition. |
RESERVES FOR LOSSES AND LOSS SE
RESERVES FOR LOSSES AND LOSS SETTLEMENT EXPENSES | 12 Months Ended |
Dec. 31, 2020 | |
Insurance Loss Reserves [Abstract] | |
RESERVES FOR LOSSES AND LOSS SETTLEMENT EXPENSES | RESERVES FOR LOSSES AND LOSS SETTLEMENT EXPENSES Property insurance indemnifies an insured with an interest in physical property for loss of, or damage to, such property or the loss of its income-producing abilities. Casualty insurance primarily covers liability for damage to property of, or injury to, a person or entity other than the insured. In most cases, casualty insurance also obligates the insurance company to provide a defense for the insured in litigation, arising out of events covered by the policy. Liabilities for losses and loss settlement expenses reflect management's best estimates at a given point in time of what we expect to pay for claims that have been reported and those that have been incurred but not reported ("IBNR"), based on known facts, circumstances, and historical trends. Because property and casualty insurance reserves are estimates of the unpaid portions of incurred losses that have been reported to us, as well as losses that have been incurred but not reported, the establishment of appropriate reserves, including reserves for catastrophes, is an inherently uncertain and complex process. The ultimate cost of losses and related loss settlement expenses may vary materially from recorded amounts. We regularly update our reserve estimates as new information becomes available and as events unfold that may affect the resolution of unsettled claims. Changes in prior year reserve estimates, which may be material, are reported as a component of losses and loss settlement expenses incurred in the period such changes are determined. The determination of reserves (particularly those relating to liability lines of insurance that have relatively longer lag in claim reporting) requires significant work to reasonably project expected future claim reporting and payment patterns. If, during the course of our regular monitoring of reserves, we determine that coverages previously written are incurring higher than expected losses, we will take action that may include, among other things, increasing the related reserves. Any adjustments we make to reserves are reflected in operating results in the year in which we make those adjustments. We engage an independent actuary, Regnier Consulting Group, Inc. ("Regnier"), to render an opinion as to the reasonableness of our statutory reserves annually. The actuarial opinion is filed in those states where we are licensed. On a quarterly basis, United Fire's team of internal actuaries performs a detailed actuarial review of IBNR reserves. This review includes a comparison of results from the most recent analysis of reserves completed by both our internal and external actuaries. Senior management meets with our internal actuary to review, on a regular and quarterly basis, the adequacy of carried reserves based on results from this actuarial analysis. There are two fundamental types or sources of IBNR reserves. We record IBNR reserves for "normal" types of claims and also specific IBNR reserves related to unique circumstances or events. A major hurricane is an example of an event that might necessitate establishing specific IBNR reserves because an analysis of existing historical data would not provide an appropriate estimate. Our IBNR methodologies and assumptions are reviewed periodically, but changes are infrequent. In response to an increase in severity of losses and an increase in distracted driving claims, we revised our commercial automobile assumptions, resulting in an increase to our carried loss IBNR. We also reviewed our methodology and assumptions in our product liability line, associated with our construction defects business, and assumptions due to improvement in development patterns related to the statute of limitations on accident years that have matured 13 to 15 years which haven't developed to the extent we initially expected. Besides the changes to our assumptions used for our commercial automobile line and product liability line, we continually review and revise items affecting our projections of required reserves for unpaid loss and loss adjustment expense ("LAE"). Items reviewed and revised include development factors for paid and reported loss, paid development factors for allocated LAE, and the ratios of paid unallocated LAE to paid loss. We do not discount loss reserves based on the time value of money. The following table provides an analysis of changes in our property and casualty losses and loss settlement expense reserves for 2020, 2019 and 2018 (net of reinsurance amounts): Years Ended December 31, 2020 2019 2018 Gross liability for losses and loss settlement expenses $ 1,421,754 $ 1,312,483 $ 1,224,183 Ceded losses and loss settlement expenses (68,536) (57,094) (59,871) Net liability for losses and loss settlement expenses $ 1,353,218 $ 1,255,389 $ 1,164,312 Losses and loss settlement expenses incurred Current year $ 887,119 $ 835,507 $ 785,778 Prior years (17,652) (5,335) (54,167) Total incurred $ 869,467 $ 830,172 $ 731,611 Losses and loss settlement expense payments Current year $ 354,635 $ 333,975 $ 306,032 Prior years 421,762 398,368 334,502 Total paid $ 776,397 $ 732,343 $ 640,534 Net liability for losses and loss settlement expenses $ 1,446,288 $ 1,353,218 $ 1,255,389 Ceded loss and loss settlement expenses 131,843 68,536 57,094 Gross liability for losses and loss settlement expenses $ 1,578,131 $ 1,421,754 $ 1,312,483 There are a multitude of factors that can impact loss reserve development. Those factors include, but are not limited to: historical data, the potential impact of various loss reserve development factors and trends including historical loss experience, legislative enactments, judicial decisions, legal developments in imposition of damages, experience with alternative dispute resolution, results of our medical bill review process, the potential impact of salvage and subrogation and changes and trends in general economic conditions, including the effects of inflation. All of these factors influence our estimates of required reserves and for long tail lines these factors can change over the course of the settlement of the claim. However, there is no precise method for evaluating the specific monetary impact of any individual factor on the development of reserves. Generally, we base reserves for each claim on the estimated ultimate exposure for that claim. We believe that it is appropriate and reasonable to establish a best estimate for reserves within a range of reasonable estimates, especially when we are reserving for claims for bodily injury, disabilities and similar claims, for which settlements and verdicts can vary widely. Our reserving philosophy may result in favorable reserve development in future years that will decrease losses and loss settlement expenses for prior year claims in the year of adjustment. We realize that this philosophy, coupled with what we believe to be aggressive and successful claims management and loss settlement practices, has resulted in year-to-year redundancies in reserves. We believe our approach produces recorded reserves that are reasonably consistent as to their relative position within a range of reasonable reserves from year-to-year. However, conditions and trends that have affected the reserve development for a given year do change. Therefore, such development cannot be used to project future reserve redundancies or deficiencies. We are not aware of any significant contingent liabilities related to environmental issues. Because of the type of property coverage we write, we have potential exposure to environmental pollution, mold and asbestos claims. Our underwriters are aware of these exposures and use riders or endorsements to limit exposure. Reserve Development The significant drivers of the favorable reserve development in 2020 were workers' compensation which had $25,428 favorable development followed by commercial fire and allied lines which had $10,655 favorable development, fidelity and surety with $2,068 favorable development and personal automobile with $1,851 favorable development. The favorable development for workers' compensation was primarily from reductions in reserves for reported claims which were more than sufficient to offset paid loss. Reductions in reserves for IBNR claims also contributed favorable development in addition to LAE where reductions in reserves more than sufficient to offset payments. Commercial fire and allied lines developed favorably because reductions in reserves for reported claims combined with reductions in reserves for IBNR claims were more than sufficient to offset paid loss. LAE also contributed favorable development with reductions in reserves more than sufficient to offset payments. Fidelity and surety loss developed favorably because a reduction in reserves for IBNR claims was more than sufficient to offset both paid loss and increases in reserves for reported claims. The personal automobile line of business developed favorably because reductions of reserves for reported claims combined with reductions of reserves for IBNR claims were more than sufficient to offset paid loss. LAE also contributed favorable development with reductions in reserves more than sufficient to offset payments. Much of the favorable development was offset by unfavorable development from three lines with the largest contribution coming from commercial liability with $12,845, reinsurance assumed with $5,972 and commercial automobile with $4,024. The commercial liability line of business experienced unfavorable development due to paid loss which was greater than reductions in reserves for unpaid loss. LAE developed favorably and partially offset the unfavorable loss development. The unfavorable development for reinsurance assumed was due to paid loss which was greater than reductions in reserves for unpaid loss. The commercial automobile line of business experienced unfavorable development because paid loss was greater than reductions in reserves for unpaid loss, but a portion of the unfavorable loss development was offset by favorable development from LAE where payments were more than offset by reductions of reserves for unpaid loss adjustment expense. On an all lines combined basis, favorable development is attributable to LAE which continues to benefit from additional litigation management efforts. The significant drivers of the favorable reserve development in 2019 were our workers' compensation partially offset by unfavorable development primarily for commercial liability and commercial automobile. Workers' compensation favorable development was primarily from reserve reductions for both reported claims and loss IBNR which were more than sufficient to offset paid loss with additional favorable development coming from LAE, where the reduction in LAE reserves was more than sufficient to offset paid LAE. The other lines with relatively small contributions to development, either favorable or unfavorable, generally experienced favorable development for LAE. Commercial liability unfavorable development was primarily from paid loss which exceeded reserve reductions for both reported claims and loss IBNR; additional unfavorable development came from LAE where paid LAE exceeded reductions of LAE reserves. Commercial liability and commercial automobile continue to be adversely affected by reserve strengthening for both reported claims and loss IBNR in response to an increase in severity of claims. Commercial liability continues to receive umbrella claims which flow in from commercial automobile. The significant drivers of the favorable reserve development in 2018 were our workers' compensation, reinsurance assumed, commercial automobile and fidelity and surety. During 2018 the only individual line with unfavorable development was commercial liability. Workers' compensation favorable development was primarily from reserve reductions for both reported claims and loss IBNR which were more than sufficient to offset paid loss with The following tables provide information about incurred and paid losses and loss settlement expense development as of December 31, 2020, net of reinsurance, as well as cumulative development, cumulative claim frequency and IBNR liabilities. Claim data for Mercer Insurance Group, Inc., which was acquired on March 28, 2011, is presented retrospectively. The cumulative number of reported claims, for calendar year 2020, 2019 and 2018, are counted for all lines of business on a per claimant per coverage basis and a single event may result in multiple claims due to the involvement of multiple individual claimants and / or multiple independent coverages. Claim counts for calendar years 2016 and prior are counted on a per claim and per coverage basis. Claim counts include open claims, claims that have been paid and closed, and reported claims that have been closed without the need for any payment. Line of business: Commercial other liability Incurred losses and allocated loss settlement expenses, net of reinsurance As of December 31, 2020 For the years ended December 31, Total of incurred but not reported liabilities plus expected development on reported claims Cumulative development Cumulative number of reported claims Accident Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (Unaudited) 2011 $ 81,522 $ 64,738 $ 88,371 $ 88,200 $ 79,591 $ 80,801 $ 81,463 $ 80,338 $ 81,694 $ 81,394 $ 11,202 (128) 5,634 2012 100,389 96,158 94,195 91,980 92,537 91,346 89,731 91,571 89,900 12,862 (10,489) 5,841 2013 104,982 91,460 90,502 86,119 85,399 88,816 86,082 85,999 3,498 (18,983) 6,406 2014 118,928 117,958 106,486 97,809 102,487 105,507 107,417 4,907 (11,511) 6,570 2015 137,386 125,307 120,005 127,091 129,945 131,325 10,405 (6,061) 7,732 2016 139,144 130,041 136,275 142,397 140,784 15,698 1,640 8,882 2017 139,602 139,032 152,547 156,369 24,426 16,767 8,883 2018 163,059 172,894 176,496 34,486 13,437 8,590 2019 149,173 169,344 46,518 20,171 7,537 2020 171,013 83,792 4,478 Total $ 1,310,041 Line of business: Commercial other liability Cumulative paid losses and allocated loss settlement expenses, net of reinsurance For the years ended December 31, Accident Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (Unaudited) 2011 $ 6,236 $ 13,670 $ 26,260 $ 40,595 $ 50,146 $ 56,150 $ 62,165 $ 64,541 $ 66,500 $ 68,052 2012 6,875 24,620 39,948 55,316 64,574 69,800 71,773 73,819 74,644 2013 9,835 25,228 39,953 54,559 65,773 72,115 75,961 78,448 2014 10,207 29,679 50,211 70,363 83,109 93,060 96,509 2015 11,185 27,182 53,901 74,292 96,339 104,472 2016 13,782 38,184 63,526 88,885 102,757 2017 17,716 43,172 70,500 91,984 2018 16,200 44,772 79,168 2019 18,221 46,986 2020 17,011 Total $ 760,031 All outstanding liabilities for unpaid losses and loss settlement expenses before 2011, net of reinsurance 35,801 Liabilities for unpaid losses and loss settlement expenses, net of reinsurance $ 585,811 Line of business: Commercial fire and allied Incurred losses and allocated loss settlement expenses, net of reinsurance As of December 31, 2020 For the years ended December 31, Total of incurred but not reported liabilities plus expected development on reported claims Cumulative development Cumulative number of reported claims Accident Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (Unaudited) 2011 $ 148,220 $ 142,330 $ 117,082 $ 120,492 $ 119,820 $ 120,219 $ 121,434 $ 121,319 $ 121,749 $ 121,982 $ 285 (26,238) 16,079 2012 138,602 110,448 108,774 108,047 107,958 108,623 109,687 109,480 110,245 634 (28,357) 6,466 2013 91,521 88,550 91,498 92,212 93,826 93,858 92,988 92,855 61 1,334 6,662 2014 126,216 131,198 128,762 128,185 128,503 126,811 127,068 108 852 7,935 2015 103,177 108,293 110,633 108,235 105,218 104,646 144 1,469 7,579 2016 147,473 144,208 143,721 143,724 143,108 667 (4,365) 9,849 2017 155,139 160,240 160,946 161,693 1,536 6,554 13,445 2018 143,280 146,951 146,378 2,610 3,098 10,683 2019 164,030 155,482 4,271 (8,548) 10,992 2020 207,207 29,773 13,368 Total $ 1,370,664 Line of business: Commercial fire and allied Cumulative paid losses and allocated loss settlement expenses, net of reinsurance For the years ended December 31, Accident Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (Unaudited) 2011 $ 85,585 $ 104,800 $ 109,429 $ 112,497 $ 116,614 $ 118,183 $ 120,178 $ 120,731 $ 121,063 $ 121,157 2012 71,008 94,380 100,078 103,197 105,250 106,521 106,740 107,992 108,123 2013 59,331 78,226 82,853 86,115 89,200 91,493 92,012 92,472 2014 84,456 113,663 116,750 122,370 123,697 125,745 126,307 2015 67,217 90,454 95,515 101,367 104,115 103,975 2016 92,895 125,962 132,429 137,909 139,353 2017 99,484 137,058 145,900 152,219 2018 92,770 123,559 133,703 2019 100,980 136,084 2020 128,704 Total $ 1,242,097 All outstanding liabilities for unpaid losses and loss settlement expenses before 2011, net of reinsurance 723 Liabilities for unpaid losses and loss settlement expenses, net of reinsurance $ 129,290 Line of business: Commercial automobile Incurred losses and allocated loss settlement expenses, net of reinsurance As of December 31, 2020 For the years ended December 31, Total of incurred but not reported liabilities plus expected development on reported claims Cumulative development Cumulative number of reported claims Accident Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (Unaudited) 2011 $ 84,887 $ 87,299 $ 90,750 $ 92,519 $ 92,379 $ 91,336 $ 90,766 $ 90,838 $ 90,643 $ 90,972 $ 32 6,085 15,262 2012 100,039 90,848 94,755 95,321 96,594 96,389 96,305 96,059 96,176 — (3,863) 14,365 2013 104,356 98,037 102,943 103,726 104,980 105,248 104,886 106,140 356 1,784 15,528 2014 107,723 106,076 113,720 118,869 120,385 121,077 120,599 457 12,876 17,320 2015 125,506 129,816 132,206 138,987 137,395 137,335 500 11,829 20,079 2016 174,018 175,357 174,337 175,657 173,823 1,449 (195) 27,288 2017 227,919 224,553 235,110 233,159 5,553 5,240 32,838 2018 236,629 245,173 253,045 14,134 16,416 34,380 2019 279,229 291,139 38,451 11,910 34,393 2020 243,360 71,185 22,331 Total $ 1,745,748 Line of business: Commercial automobile Cumulative paid losses and allocated loss settlement expenses, net of reinsurance For the years ended December 31, Accident Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (Unaudited) 2011 $ 34,332 $ 50,931 $ 65,021 $ 79,383 $ 85,348 $ 87,475 $ 88,609 $ 89,459 $ 90,515 $ 90,677 2012 39,247 57,201 71,469 82,944 90,292 93,179 94,747 94,983 96,176 2013 43,592 67,630 79,663 90,780 96,375 100,058 101,580 103,037 2014 45,704 68,033 87,590 99,922 109,682 113,751 116,843 2015 50,782 78,225 99,201 118,395 129,317 134,100 2016 66,013 103,528 128,157 148,224 164,341 2017 81,311 126,644 166,170 197,893 2018 81,572 138,092 187,405 2019 91,919 153,244 2020 67,660 Total $ 1,311,376 All outstanding liabilities for unpaid losses and loss settlement expenses before 2011, net of reinsurance (80) Liabilities for unpaid losses and loss settlement expenses, net of reinsurance $ 434,293 Line of business: Workers' compensation Incurred losses and allocated loss settlement expenses, net of reinsurance As of December 31, 2020 For the years ended December 31, Total of incurred but not reported liabilities plus expected development on reported claims Cumulative development Cumulative number of reported claims Accident Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (Unaudited) 2011 $ 39,967 $ 38,481 $ 35,352 $ 34,309 $ 33,585 $ 33,314 $ 33,352 $ 32,707 $ 32,384 $ 31,621 $ 159 (8,346) 3,965 2012 48,848 46,279 42,158 38,423 38,553 39,015 39,182 39,063 38,290 229 (10,558) 3,992 2013 64,048 62,579 56,369 54,584 52,761 51,753 50,984 50,349 307 (13,699) 4,255 2014 64,051 60,729 58,284 56,630 54,636 53,023 52,889 699 (11,162) 4,801 2015 53,788 55,578 51,003 46,682 46,019 44,706 578 (9,082) 5,666 2016 70,419 66,575 61,648 55,168 53,964 815 (16,455) 7,927 2017 76,184 69,528 55,982 51,874 1,182 (24,310) 8,173 2018 71,972 67,883 59,192 1,802 (12,780) 7,947 2019 52,136 49,189 2,335 (2,947) 7,113 2020 45,365 4,289 3,909 Total $ 477,439 Line of business: Workers' compensation Cumulative paid losses and allocated loss settlement expenses, net of reinsurance For the years ended December 31, Accident Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (Unaudited) 2011 $ 10,322 $ 21,678 $ 26,033 $ 27,497 $ 28,247 $ 29,022 $ 29,453 $ 29,700 $ 29,890 $ 30,573 2012 11,802 23,023 28,397 30,933 33,063 34,330 35,388 36,060 36,520 2013 14,136 30,209 38,023 42,941 45,078 47,071 47,572 48,093 2014 13,965 30,289 38,441 42,964 45,193 45,825 46,299 2015 12,063 27,304 35,229 38,424 39,305 40,034 2016 14,413 32,345 40,680 45,743 47,082 2017 14,647 31,309 38,083 41,672 2018 16,949 35,369 43,189 2019 13,582 29,668 2020 17,603 Total $ 380,733 All outstanding liabilities for unpaid losses and loss settlement expenses before 2011, net of reinsurance 19,345 Liabilities for unpaid losses and loss settlement expenses, net of reinsurance $ 116,050 Line of business: Personal Incurred losses and allocated loss settlement expenses, net of reinsurance As of December 31, 2020 For the years ended December 31, Total of incurred but not reported liabilities plus expected development on reported claims Cumulative development Cumulative number of reported claims Accident Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (Unaudited) 2011 $ 50,014 $ 48,534 $ 47,090 $ 47,035 $ 46,968 $ 47,013 $ 46,733 $ 46,761 $ 46,752 $ 46,751 $ — (3,263) 14,848 2012 47,924 46,199 46,403 46,150 44,715 44,352 44,165 44,158 44,160 1 (3,764) 10,790 2013 39,232 38,525 37,262 37,086 36,729 36,661 36,486 36,467 1 (2,765) 9,250 2014 53,910 52,661 52,944 52,782 52,615 52,702 52,810 12 (1,100) 10,959 2015 42,848 41,088 40,336 40,368 40,220 40,194 22 (2,654) 9,548 2016 48,072 45,840 45,379 45,961 45,113 58 (2,959) 11,896 2017 60,330 59,342 58,695 58,544 119 (1,786) 14,691 2018 51,639 51,721 52,715 365 1,076 13,658 2019 59,547 58,378 581 (1,169) 13,466 2020 81,206 6,588 15,585 Total $ 516,338 Line of business: Personal Cumulative paid losses and allocated loss settlement expenses, net of reinsurance For the years ended December 31, Accident Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (Unaudited) 2011 $ 36,489 $ 43,801 $ 45,306 $ 45,949 $ 46,487 $ 46,573 $ 46,575 $ 46,650 $ 46,752 $ 46,751 2012 30,415 41,979 43,375 44,448 43,569 44,139 44,158 44,158 44,159 2013 25,505 32,788 34,297 35,306 36,155 36,323 36,397 36,466 2014 37,055 47,912 49,710 51,837 52,018 52,543 52,519 2015 29,551 37,431 39,027 39,428 39,865 40,029 2016 32,999 40,910 42,660 44,046 44,618 2017 42,135 53,111 55,982 57,169 2018 37,410 47,433 49,464 2019 40,544 52,390 2020 54,181 Total $ 477,746 All outstanding liabilities for unpaid losses and loss settlement expenses before 2011, net of reinsurance 620 Liabilities for unpaid losses and loss settlement expenses, net of reinsurance $ 39,210 The reconciliation of the net incurred and loss development tables to the liability for unpaid losses and loss settlement expenses in the consolidated statement of financial position is as follows. December 31, 2020 Net outstanding liabilities for unpaid losses and allocated loss settlement expenses: Commercial other liability $ 585,811 Commercial fire and allied 129,290 Commercial automobile 434,293 Commercial workers' compensation 116,050 Personal 39,210 All other lines 43,045 Net outstanding liabilities for unpaid losses and allocated loss settlement expenses 1,347,699 Net outstanding liabilities for unpaid unallocated loss settlement expenses 97,379 Fair value adjustment (purchase accounting adjustment for Mercer acquisition) 1,210 Liabilities for unpaid losses and loss settlement expenses, net of reinsurance 1,446,288 Reinsurance recoverable on unpaid losses and allocated loss settlement expenses: Commercial other liability 29,497 Commercial fire and allied 42,481 Commercial automobile 3,334 Commercial workers' compensation 47,130 Personal 8,867 All other lines 1,692 Reinsurance recoverable on unpaid losses and allocated loss settlement expenses 133,001 Reinsurance fair value amortization (purchase accounting adjustment for Mercer acquisition) (1,158) Total reinsurance recoverable on unpaid losses and loss settlement expenses 131,843 Total gross liability for unpaid losses and loss settlement expenses $ 1,578,131 The following is supplementary information about average historical claims duration as of December 31, 2020. Average annual percentage payout of incurred claims by age, net of reinsurance Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 (Unaudited) Commercial other liability 9.6 % 16.0 % 18.0 % 16.8 % 12.3 % 7.2 % 4.3 % 2.7 % 1.7 % 1.9 % Commercial fire and allied 64.6 % 21.4 % 4.8 % 3.8 % 2.2 % 1.3 % 0.7 % 0.7 % 0.2 % 0.1 % Commercial automobile 35.9 % 20.3 % 15.5 % 12.5 % 7.5 % 3.1 % 1.7 % 0.9 % 1.2 % 0.2 % Commercial workers' compensation 29.5 % 32.4 % 14.8 % 7.6 % 3.5 % 2.5 % 1.5 % 1.2 % 0.9 % 2.2 % Personal 71.3 % 19.7 % 3.8 % 2.4 % 0.7 % 0.7 % 0.1 % 0.1 % 0.1 % — % |
STATUTORY REPORTING, CAPITAL RE
STATUTORY REPORTING, CAPITAL REQUIREMENTS AND DIVIDENDS AND RETAINED EARNINGS RESTRICTIONS | 12 Months Ended |
Dec. 31, 2020 | |
Statutory Insurance Financial Information [Abstract] | |
STATUTORY REPORTING, CAPITAL REQUIREMENTS AND DIVIDENDS AND RETAINED EARNINGS RESTRICTIONS | STATUTORY REPORTING, CAPITAL REQUIREMENTS AND DIVIDENDS AND RETAINED EARNINGS RESTRICTIONS Statutory capital and surplus in regards to policyholders at December 31, 2020, 2019 and 2018 and statutory net income (loss) for the years then ended are as follows: Statutory Capital and Surplus Statutory Net Income (Loss) 2020 Property and casualty business $ 671,599 $ (17,705) 2019 Property and casualty business $ 707,571 $ (22,393) 2018 Property and casualty business $ 774,257 $ 219,065 Life, accident and health business (1) — 3,548 (1) The 2018 Life, accident and health business only includes results prior to the closing of the sale of United Life Insurance Company, which closed on March 30, 2018. Prior to the closing of the sale, United Fire & Casualty Company owned United Life Insurance Company, accordingly, the property and casualty statutory capital and surplus includes life, accident and health statutory capital and surplus, and therefore represents our total consolidated statutory capital and surplus. State insurance holding company laws and regulations generally require approval from the insurer's domicile state insurance Commissioner for any material transaction or extraordinary dividend. For property and casualty insurers, a material transaction is defined as any sale, loan, exchange, transfer or guarantee with an affiliate where the aggregate value of the transaction exceeds 25 percent of the insurer's policyholders' surplus or three percent of its admitted assets (measured at December 31 of the preceding year), whichever is less. For life insurers, a material transaction with an affiliate is defined as a transaction with an aggregate value exceeding three percent of the life insurer's admitted assets (measured at December 31 of the preceding year). The Company executed a $50,000 surplus note private placement transaction on December 15, 2020 among UF&C and Federated Mutual and Federated Life. See additional details in Note 14 "Debt." State laws and regulations generally limit the amount of funds that an insurance company may distribute to a parent as a dividend without Commissioner approval. As a holding company with no independent operations of its own, United Fire Group, Inc. relies on dividends received from its insurance company subsidiaries in order to pay dividends to its common shareholders. Dividends payable by our insurance subsidiaries are governed by the laws in the states in which they are domiciled. In all cases, these state laws permit the payment of dividends only from earned surplus arising from business operations. For example, under Iowa law, the maximum dividend or distribution that may be paid within a 12-month period without prior approval of the Iowa Insurance Commissioner is generally restricted to the greater of 10 percent of statutory surplus as of the preceding December 31, or net income of the preceding calendar year on a statutory basis, not greater than earned statutory surplus. Other states in which our insurance company subsidiaries are domiciled may impose similar restrictions on dividends and distributions. Based on these restrictions, at December 31, 2020, our insurance company subsidiary, United Fire & Casualty, is able to make a minimum of $66.8 million in dividend payments without prior regulatory approval. At December 31, 2020, we were in compliance with applicable state laws and regulations. We paid dividends to our common shareholders of $28,526, $32,662 and $105,408 in 2020, 2019 and 2018, respectively. Payments of any future dividends and the amounts of such dividends, however, will depend upon factors such as net income, financial condition, capital requirements, and general business conditions. We will only pay dividends if declared by our Board of Directors, out of funds legally available, and subject to any other restrictions that may be applicable to us. In 2020, 2019 and 2018, United Fire & Casualty Company received dividends from its wholly owned subsidiaries of $62,400, $6,300 and $8,500, respectively. In 2020, 2019 and 2018, United Fire & Casualty Company paid dividends to United Fire Group, Inc. totaling $4,000 , $57,000 and $105,000, respectively. These intercompany dividend payments are eliminated for reporting in our Consolidated Financial Statements. Our property and casualty subsidiaries are required to prepare and file statutory-basis financial statements in conformity with the National Association of Insurance Commissioners ("NAIC") Accounting Practices and Procedures Manual, subject to any deviations prescribed or permitted by the applicable insurance commissioner and/or director. The accounting principles used to prepare these statutory-basis financial statements follow prescribed or permitted accounting practices that differ from GAAP. Prescribed statutory accounting principles include state laws, regulations and general administrative rules issued by the state of domicile, as well as a variety of publications and manuals of the NAIC. Permitted accounting practices encompass all accounting practices not prescribed, but allowed by the state of domicile. No material permitted accounting practices were used to prepare our statutory-basis financial statements during 2020, 2019 and 2018. Statutory accounting principles primarily differ from GAAP in that policy acquisition and certain sales inducement costs are charged to expense as incurred, goodwill is amortized, life insurance reserves are established based on different actuarial assumptions and the values reported for investments, pension obligations and deferred taxes are established on a different basis. We are directed by the state insurance departments' solvency regulations to calculate a required minimum level of statutory capital and surplus based on insurance risk factors. The risk-based capital results are used by the NAIC and state insurance departments to identify companies that merit regulatory attention or the initiation of regulatory action. United Fire & Casualty Company and its property and casualty insurance subsidiaries and affiliates had statutory capital and surplus in regards to policyholders well in excess of their required levels at December 31, 2020. |
FEDERAL INCOME TAX
FEDERAL INCOME TAX | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
FEDERAL INCOME TAX | FEDERAL INCOME TAX The Tax Act was enacted on December 22, 2017. The Tax Act significantly revised the U.S. corporate income tax laws including lowering the U.S. federal corporate tax rate from 35 percent to 21 percent, effective January 1, 2018. In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118, which addresses how a company recognizes provisional amounts when a company does not have the necessary information available, prepared or analyzed in reasonable detail to complete its accounting for the effect of the changes in the Tax Act. The measurement period ends when a company has obtained, prepared and analyzed the information necessary to finalize its accounting, but cannot extend beyond one year. As of December 31, 2018 we have completed accounting for the tax effects of enactment of the Tax Act and no adjustments were made during the measurement period. On March 27, 2020, the CARES Act was enacted in response to the COVID-19 pandemic. The CARES Act, among other things, permits NOL carryovers and carrybacks to offset 100 percent of taxable income for taxable years beginning before 2021. In addition, the CARES Act allows NOLs incurred in 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes. The Company has considered the implications of the CARES Act on its tax provision and has included an income tax benefit o f $18.6 million as the result of this Act. Federal income tax expense (benefit) from both continuing and discontinued operations is composed of the following: Years Ended December 31, 2020 2019 2018 Current $ (46,861) $ (7,843) $ 18,493 Deferred (9,948) 9,902 (21,791) Total $ (56,809) $ 2,059 $ (3,298) A reconciliation of income tax expense (benefit) computed at the applicable federal tax rate of 21.0 percent in 2020, 2019 and 2018 to the amount recorded in the accompanying Consolidated Statements of Income and Comprehensive Income is as follows: Years Ended December 31, 2020 2019 2018 Computed expected income tax expense (benefit) $ (35,598) $ 3,544 $ 5,114 The CARES Act (18,562) — — Tax-exempt municipal bond interest income (3,669) (3,961) (4,235) Nontaxable dividend income (517) (594) (591) Goodwill impairment 3,169 — — Valuation allowance reduction — — (329) Compensation 695 1,638 (497) Reinsurance — 998 — Research and development credit (2,045) — — Other, net (282) 434 (2,760) Consolidated federal income tax expense (benefit) $ (56,809) $ 2,059 $ (3,298) Reconciliation of consolidated federal income tax expense (benefit) from: Continuing operations $ (56,809) $ 2,059 $ (11,405) Gain on sale of discontinued operations — — 7,544 Discontinued operations — — 563 Consolidated federal income tax expense (benefit) $ (56,809) $ 2,059 $ (3,298) We measure certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is 21.0 percent. The significant components of our net deferred tax liability at December 31, 2020 and 2019 are as follows: December 31, 2020 2019 Deferred tax liabilities Net unrealized appreciation on investment securities: Equity securities $ 33,096 $ 48,652 All other securities 22,082 12,568 Deferred policy acquisition costs 18,289 19,801 Investments in partnerships 964 2,156 Prepaid pension cost 4,553 4,441 Net bond discount accretion 383 357 Depreciation 4,187 1,908 Revaluation of investment basis (1) 325 377 Identifiable intangible assets (1) 1,391 1,540 Capitalized Software 4,891 — Other 1,568 1,416 Gross deferred tax liability 91,729 $ 93,216 Deferred tax assets Financial statement reserves in excess of income tax reserves $ 23,851 $ 20,845 Unearned premium adjustment 18,979 20,816 Net operating loss carryforwards — 1,708 Underfunded benefit plan obligation 4,295 9,072 Post-retirement benefits other than pensions 9,533 10,785 Other-than-temporary impairment of investments 1,974 2,094 Compensation expense related to stock options 2,307 2,394 Nonqualified deferred compensation 2,066 1,623 Other 3,795 3,293 Deferred tax asset $ 66,800 $ 72,630 Net deferred tax liability $ 24,929 $ 20,586 (1) Related to our acquisition of Mercer Insurance Group, Inc. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFITS | EMPLOYEE BENEFITS We offer various benefits to our employees including a noncontributory defined benefit pension plan, an employee/retiree health and dental benefit plan. Pension and Post-Retirement Benefit Plans We offer a noncontributory defined benefit pension plan in which all of our employees are eligible to participate after they have completed one year of service, attained 21 years of age and have met the hourly service requirements. Retirement benefits under our pension plan are based on the number of years of service and level of compensation. Our policy to fund the pension plan on a current basis to not less than the minimum amounts required by the Employee Retirement Income Security Act of 1974, as amended, and the Internal Revenue Code of 1986, as amended, is to assure that plan assets will be adequate to provide retirement benefits. We estimate that we will contribute approximately $10,000 to the pension plan in 2021. In December 2020, the Company made the decision to amend the noncontributory defined benefit pension plan. The Company plans to amend the pension plan by discontinuing the noncontributory defined benefit pension plan and put in place a noncontributory cash balance pension plan effective July 1, 2021. All benefits under the noncontributory defined benefit pension plan will stop accruing on June 30, 2021. We also offer a health and dental benefit plan to all of our eligible employees and retirees that consists of two programs: (1) the self-funded employee health and dental benefit plan and (2) the self-funded (pre-65) and fully-funded (post-65) retiree health and dental benefit plan (the "post-retirement benefit plan"). Effective January 1, 2017, there was a plan amendment, which included the following changes: eliminated the pre-65 retirement plan with a $500 hundred dollar deductible; for retirements after January 1, 2017, the retiree will pay 50 percent of the lower cost supplemental plan if they are 65 or older and 100 percent of the premium if less than 65; and removed spousal coverage after the death of the participant. The financial impact of the changes were reflected in accumulated other comprehensive income at December 31, 2016. Effective January 1, 2019, there was a plan amendment, which requires spouses to pay 100 percent of the medical, dental & vision premiums and the subsidy for the post-65 retirees, which is based off the lowest cost Medicare Supplement Plan (Plan 1). The financial impact of the changes were reflected in accumulated other comprehensive income at December 31, 2019. Subsequent to the completion of the financial statements as of December 31, 2020, the Company made the decision to change the post-retirement benefit plan to a voluntary plan funded exclusively by participants, commencing at the start of 2023. The impact of this decision will be reflected in the financial statements subsequent to December 31, 2020. As of December 31, 2020, the post-retirement benefit obligation was $31,666. This benefit obligation, along with the unrecognized prior service costs, will be released into the Consolidated Statement of Income and Other Comprehensive Income over the next two years. The post-retirement benefit plan provides health and dental benefits to our retirees (and covered dependents) who have met the service and participation requirements stipulated by the post-retirement benefit plan. The third party administrators for the post-retirement benefit plan are responsible for making medical and dental care benefit payments. Participants are required to submit claims for reimbursement or payment to the claims administrator within twelve months after the end of the calendar year in which the charges were incurred. An unfunded benefit obligation is reported for the post-retirement benefit plan in the accompanying Consolidated Balance Sheets. Investment Policies and Strategies Our investment policy and objective for the pension plan is to generate long-term capital growth and income by way of a diversified investment portfolio along with appropriate employer contributions, which will allow us to provide for the pension plan's benefit obligation. The investments held by the pension plan at December 31, 2020 include the following asset categories: • Fixed income securities, which may include bonds, and convertible securities; • Equity securities, which may include various types of stock, such as large-cap, mid-cap, small-cap, and international stocks; • Pooled separate accounts, which includes two separate funds, a core plus bond separate account and a real estate separate account; • An arbitrage fund, which is a fund that takes advantage of price discrepancies, primarily equity securities, for the same asset in different markets; • A group annuity contract that is administered by United Life, a former subsidiary of United Fire; and • Cash and cash equivalents, which include money market funds. We have an internal investment/retirement committee, which includes our Chief Executive Officer, Chief Investment Officer, and Chief Operating Officer, all of whom receive monthly information on the value of the pension plan assets and their performance. Quarterly, the committee meets to review and discuss the performance of the pension plan assets as well as the allocation of investments within the pension plan. As of December 31, 2020, we had six external investment managers that are allowed to exercise investment discretion, subject to limitations, if any, established by the investment/retirement committee. We utilize multiple investment managers in order to maximize the pension plan's investment return while mitigating risk. None of our investment managers uses leverage in managing the pension plan. Annually, the investment/retirement committee meets with each investment manager to review the investment manager's goals, objectives and the performance of the assets they manage. The decision to establish or terminate a relationship with an investment manager is at the discretion of our investment/retirement committee. We consider historical experience for comparable investments and the target allocations we have established for the various asset categories of the pension plan to determine the expected long-term rate of return, which is an assumption as to the average rate of earnings expected on the pension plan funds invested, or to be invested, by the pension plan, to provide for the settlement of benefits included in the projected pension benefit obligation. Investment securities, in general, are exposed to various risks, such as fluctuating interest rates, credit standing of the issuer of the security and overall market volatility. Annually, we perform an analysis of expected long-term rates of return based on the composition and allocation of our pension plan assets and recent economic conditions. The following is a summary of the pension plan's actual and target asset allocations at December 31, 2020 and 2019 by asset category: Target Pension Plan Assets 2020 % of Total 2019 % of Total Allocation Fixed maturity securities - corporate bonds $ 21,718 8.7 % $ 13,250 6.7 % 0 % - 15 % Redeemable preferred stock 3,534 1.4 2,929 1.5 0 % - 10 % Equity securities 149,413 60.0 117,117 58.7 50 % - 70 % Pooled separate accounts Core plus bond separate account fund 26,266 10.6 20,505 10.3 0 % - 40 % U.S. property separate account fund 22,269 9.0 22,114 11.1 0 % - 25 % Arbitrage fund 9,873 4.0 9,245 4.6 0 % - 10 % United Life annuity 11,398 4.6 10,855 5.4 0 % - 10 % Cash and cash equivalents 4,264 1.7 3,451 1.7 0 % - 10 % Total plan assets $ 248,735 100.0 % $ 199,466 100.0 % The investment return expectations for the pension plan are used to develop the asset allocation based on the specific needs of the pension plan. Accordingly, equity securities comprise the largest portion of our pension plan assets, as they yield the highest rate of return. The United Life annuity, which is the fifth largest asset category and was originally written by our former life insurance subsidiary in 1976, provides a guaranteed rate of return. The interest rate on the group annuity contract is determined annually. The availability of assets held in cash and cash equivalents enables the pension plan to mitigate market risk that is associated with other types of investments and allows the pension plan to maintain liquidity both for the purpose of making future benefit payments to participants and their beneficiaries and for future investment opportunities. Valuation of Investments Fixed Maturity and Equity Securities Investments in equity securities are stated at fair value based upon quoted market prices reported on recognized securities exchanges on the last business day of the year. Purchases and sales of securities are recorded as of the trade date. The fair value of fixed maturity securities categorized as Level 2 is determined by management based on fair value information reported in the custodial statements received from Plan’s investment managers, which is derived from recent trading activity of the underlying security in the financial markets. These securities represent various taxable bonds held by the pension plan. These securities categorized as Level 2 are valued in the same manner as described in Note 3 "Fair Value of Financial Instruments" and have the same controls in place. Pooled Separate Accounts The pension plan invests in two pooled separate account funds, a core plus bond separate account fund and a U.S. property separate account fund. Investments in the core plus bond separate account fund are stated at fair value as provided by the administrator of the fund based on the fair value of the underlying assets owned by the fund. The fair value measurement is classified within Level 2 of the fair value hierarchy. The fair value of the investments in the U.S. property separate account fund is provided by the administrator of the fund based on the net asset value of the fund. The net asset value is based on the fair value of the underlying properties included in the fund. The fair value of the underlying properties are based on property appraisals conducted by an independent third party. The fair value measurement is classified within Level 3 of the fair value hierarchy. We have not adjusted the net asset value provided by the custodian for either fund. Arbitrage Fund The fair value of the arbitrage fund is determined based on its net asset value, which is obtained from the custodian and determined monthly with issuances and redemptions of units of the fund made, based on the net asset value per unit as determined on the valuation date. We have not adjusted the net asset value provided by the custodian. United Life Annuity The United Life group annuity contract, which is a deposit administration contract, is stated at contract value as determined by United Life. Under the group annuity contract, the plan's investment account is credited with compound interest on the average account balance for the year. The interest rate is equivalent to the ratio of net investment income to mean assets of United Life, net of investment expenses. Cash and Cash Equivalents Cash and cash equivalents primarily consist of insured cash and money market funds held with various financial institutions. Interest is earned on a daily basis. The fair value of these funds approximates their cost basis due to their short-term nature. Fair Value Measurement The following tables present the categorization of the pension plan's assets measured at fair value on a recurring basis at December 31, 2020 and 2019: Fair Value Measurements Description December 31, 2020 Level 1 Level 2 Level 3 Fixed maturity securities - corporate bonds $ 21,718 $ — $ 21,718 $ — Redeemable preferred stock 3,534 3,534 — — Equity securities 149,413 149,413 — — Pooled separate accounts Core plus bond separate account fund 26,266 — 26,266 — U.S. property separate account fund 22,269 — — 22,269 Arbitrage fund 9,873 — 9,873 — Money market funds 4,260 4,260 — — Total assets measured at fair value $ 237,333 $ 157,207 $ 57,857 $ 22,269 Fair Value Measurements Description December 31, 2019 Level 1 Level 2 Level 3 Fixed maturity securities - corporate bonds $ 13,250 $ — $ 13,250 $ — Redeemable preferred stock 2,929 2,929 — — Equity securities 117,117 117,117 — — Pooled separate accounts Core plus bond separate account fund 20,505 — 20,505 — U.S. property separate account fund 22,114 — — 22,114 Arbitrage fund 9,245 — 9,245 — Money market funds 3,448 3,448 — — Total assets measured at fair value $ 188,608 $ 123,494 $ 43,000 $ 22,114 There were no transfers of assets in or out of Level 1 or Level 2 during the period. The fair value of investments categorized as Level 1 is based on quoted market prices that are readily and regularly available. The fair value of fixed maturity securities categorized as Level 2 is determined by management based on fair value information reported in the custodial statements, which is derived from recent trading activity of the underlying security in the financial markets. These securities represent various taxable bonds held by the pension plan. These securities categorized as Level 2 are valued in the same manner as described in Part II, Item 8, Note 3 "Fair Value of Financial Instruments" and have the same controls in place. The fair value of the arbitrage fund and bond and mortgage pooled separate account fund are categorized as Level 2 since there are no restrictions as to the pension plan's ability to redeem its investment at the net asset value of the fund as of the reporting date. The following tables provide a summary of the changes in fair value of the pension plan's Level 3 securities: U.S. property separate account fund Balance at January 1, 2020 $ 22,114 Unrealized gains 155 Balance at December 31, 2020 $ 22,269 U.S. property separate account fund Balance at January 1, 2019 $ 20,841 Unrealized gains 1,273 Balance at December 31, 2019 $ 22,114 Estimates and Assumptions The preparation of financial statements in conformity with GAAP requires us to make various estimates and assumptions that affect the reporting of net periodic benefit cost, plan assets and plan obligations for each plan at the date of the financial statements. Actual results could differ from these estimates. One significant estimate relates to the calculation of the benefit obligation for each plan. We annually establish the discount rate, which is an estimate of the interest rate at which these benefits could be effectively settled, that is used to determine the present value of the respective plan's benefit obligations as of December 31. In estimating the discount rate, we look to rates of return on high-quality, fixed-income investments currently available and expected to be available during the period to maturity of the respective plan's benefit obligations. The Society of Actuaries ("SOA") is an actuarial organization that periodically reviews mortality data and publishes mortality tables and improvement scales. In October 2019, the SOA released the Pri-2012 mortality tables for private sector retirement plans in the United States. The mortality assumptions are based on the Pri-2012 white collar base rate mortality projected generationally using the Principal Mortality Improvement Scale ("Principal 2016-10"). The Principal 2016-10 scale is based on latest mortality improvement scale, the MP-2020 model issued by the SOA with a few user-selected assumptions: 10- year convergence period on age and cohort and long-term rate assumptions using sex-distinct and age based rated developed from Social Security Trustee Reports. We have reviewed these updated tables and have updated the mortality assumptions based on this information and also based on research provided by our external actuaries. We will continue to monitor mortality assumptions and make changes as appropriate to reflect additional research and our resulting best estimate of future mortality rates. Assumptions Used to Determine Benefit Obligations The following actuarial assumptions were used to determine the reported plan benefit obligations at December 31: Weighted-average assumptions as of Pension Benefits Post-retirement Benefits December 31, 2020 2019 2020 2019 Discount rate 2.58 % 3.32 % 2.58 % 3.32 % Rate of compensation increase 2.75 3.00 N/A N/A Declining interest rates resulted in a decrease in the discount rates we use to value our respective plan's benefit obligations at December 31, 2020 compared to December 31, 2019. Assumptions Used to Determine Net Periodic Benefit Cost The following actuarial assumptions were used at January 1 to determine our reported net periodic benefit costs for the year ended December 31: Weighted-average assumptions as of Pension Benefits Post-retirement Benefits January 1, 2020 2019 2018 2020 2019 2018 Discount rate 3.32 % 4.18 % 3.65 % 3.32 % 4.18 % 3.65 % Expected long-term rate of return on plan assets 6.70 6.70 6.70 N/A N/A N/A Rate of compensation increase 3.00 3.00 3.00 N/A N/A N/A Assumed Health Care Cost Trend Rates Health Care Benefits Dental Claims Years Ended December 31, 2020 2019 2020 2019 Health care cost trend rates assumed for next year 7.00 % 6.75 % 3.00 % 4.00 % Rate to which the health care trend rate is assumed to decline (ultimate trend rate) 4.50 % 4.50 % N/A N/A Year that the rate reaches the ultimate trend rate 2031 2030 N/A N/A Assumed health care cost trend rates have a significant effect on the amounts reported for the post-retirement benefit plan. A 1.0 percent change in assumed health care cost trend rates would have the following effects: 1% Increase 1% Decrease Effect on the net periodic post-retirement health care benefit cost $ 643 $ (494) Effect on the accumulated post-retirement benefit obligation 5,520 (4,451) Benefit Obligation and Funded Status The following table provides a reconciliation of benefit obligations, plan assets and funded status of our plans: Pension Benefits Post-retirement Benefits Years Ended December 31, 2020 2019 2020 2019 Reconciliation of benefit obligation Benefit obligation at beginning of year $ 252,374 $ 202,156 $ 31,001 $ 30,973 Service cost 10,829 7,989 1,728 1,823 Interest cost 8,266 8,320 1,014 1,274 Actuarial loss (gain) 38,920 39,598 (1,084) (1,806) Adjustment for plan amendment (32,175) — — — Benefit payments (6,470) (5,689) (993) (1,263) Benefit obligation at end of year (1) $ 271,744 $ 252,374 $ 31,666 $ 31,001 Reconciliation of fair value of plan assets Fair value of plan assets at beginning of year $ 199,466 $ 164,819 $ — $ — Actual return on plan assets 45,739 36,336 — — Employer contributions 10,000 4,000 993 1,263 Benefit payments (6,470) (5,689) (993) (1,263) Fair value of plan assets at end of year $ 248,735 $ 199,466 $ — $ — Funded status at end of year $ (23,009) $ (52,908) $ (31,666) $ (31,001) (1) For the pension plan, the benefit obligation is the projected benefit obligation. For the post-retirement benefit plan, the benefit obligation is the accumulated post-retirement benefit obligation. Our accumulated pension benefit obligation was $271,515 and $226,196 at December 31, 2020 and 2019, respectively. The following table displays the effect that the unrecognized prior service cost and unrecognized actuarial loss of our plans had on accumulated other comprehensive income ("AOCI"), as reported in the accompanying Consolidated Balance Sheets: Pension Benefits Post-retirement Benefits Years Ended December 31 2020 2019 2020 2019 Amounts recognized in AOCI Unrecognized prior service cost $ (32,175) $ — $ (20,863) $ (28,947) Unrecognized actuarial (gain) loss 66,864 64,059 6,627 8,086 Total amounts recognized in AOCI $ 34,689 $ 64,059 $ (14,236) $ (20,861) We anticipate amortization of the net actuarial losses for our pension plan in 2021 to be $3,995. We anticipate amortization of the net actuarial losses for our post-retirement benefit plan in 2021 to be $260 Net Periodic Benefit Cost The components of the net periodic benefit cost for our pension and post-retirement benefit plans are as follows: Pension Plan Post-retirement Benefit Plan Years Ended December 31, 2020 2019 2018 2020 2019 2018 Net periodic benefit cost Service cost $ 10,829 $ 7,989 $ 8,701 $ 1,728 $ 1,823 $ 2,998 Interest cost 8,266 8,320 7,500 1,014 1,274 2,009 Expected return on plan assets (13,539) (10,784) (10,502) — — — Amortization of prior service cost — — — (8,084) (8,684) (5,409) Amortization of net loss 3,914 3,603 4,287 375 894 2,355 Net periodic benefit cost $ 9,470 $ 9,128 $ 9,986 $ (4,967) $ (4,693) $ 1,953 A portion of the service cost component of net periodic pension and postretirement benefit costs are capitalized and amortized as part of deferred acquisition costs and is included in the income statement line titled "amortization of deferred policy acquisition costs." The portion not related to the compensation and the other components of net periodic pension and postretirement benefit costs are included in the income statement line titled "other underwriting expenses." Projected Benefit Payments The following table summarizes the expected benefits to be paid from our plans over the next 10 years: 2021 2022 2023 2024 2025 2026 - 2030 Pension benefits $ 7,330 $ 7,920 $ 8,860 $ 9,850 $ 10,970 $ 67,280 Post-retirement benefits $ 940 $ 990 $ 1,010 $ 1,050 $ 1,090 $ 6,520 Profit-Sharing Plan We have a profit-sharing plan in which employees who meet service requirements are eligible to participate. The amount of our contribution is discretionary and is determined annually, but cannot exceed the amount deductible for federal income tax purposes. Our contribution to the profit-sharing plan for 2020, 2019 and 2018, was $4,637, $4,096, and $7,607, respectively. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Non-Qualified Employee Stock Award Plan The United Fire Group, Inc. 2008 Stock Plan (the "2008 Stock Plan") authorized the issuance of restricted and unrestricted stock awards, stock appreciation rights, incentive stock options, and non-qualified stock options for up to 1,900,000 shares of United Fire common stock to employees. In May 2014, the Registrant's shareholders approved an additional 1,500,000 shares of United Fire common stock issuable at any time and from time to time pursuant to the 2008 Stock Plan, among other amendments, and renamed such plan as the United Fire Group, Inc. Stock Plan (as amended, the "Stock Plan"). At December 31, 2020, there were 700,680 authorized shares remaining available for future issuance. The Stock Plan is administered by the Board of Directors, which determines those employees who will receive awards, when awards will be granted, and the terms and conditions of the awards. The Board of Directors may also take any action it deems necessary and appropriate for the administration of the Stock Plan. Pursuant to the Stock Plan, the Board of Directors may, at its sole discretion, grant awards to our employees who are in positions of substantial responsibility with United Fire. Options granted pursuant to the Stock Plan are granted to buy shares of United Fire's common stock at the market value of the stock on the date of grant. Options granted prior to March 2017 vest and are exercisable in installments of 20.0 percent of the number of shares covered by the option award each year from the grant date, unless the Board of Directors authorizes the acceleration of vesting. Options granted after March 2017 vest and are exercisable in installments of 33.3 percent of the number of shares covered by the option award each year from the grant date, unless the Board of Directors authorizes the acceleration of vesting. To the extent not exercised, vested option awards accumulate and are exercisable by the awardee, in whole or in part, in any subsequent year included in the option period, but not later than 10 years from the grant date. Restricted and unrestricted stock awards granted pursuant to the Stock Plan are granted at the market value of our common stock on the date of the grant. Restricted stock awards fully vest after 3 years or 5 years from the date of issuance, unless accelerated upon the approval of the Board of Directors, at which time United Fire common stock will be issued to the awardee. All awards are generally granted free of charge to the eligible employees of United Fire as designated by the Board of Directors. The activity in the Stock Plan is displayed in the following table: Authorized Shares Available for Future Award Grants Year Ended December 31, 2020 From Inception to December 31, 2020 Beginning balance 834,910 1,900,000 Additional shares authorized — 1,500,000 Number of awards granted (172,478) (3,288,899) Number of awards forfeited or expired 38,248 589,579 Ending balance 700,680 700,680 Number of option awards exercised 30,900 1,474,089 Number of unrestricted stock awards granted — 10,090 Number of restricted stock awards vested 63,600 164,378 Non-Qualified Non-Employee Director Stock Option and Restricted Stock Plan The United Fire Group, Inc. Non-Employee Director Stock Plan (formerly known as the 2005 Non-Qualified Non- Employee Director Stock Option and Restricted Stock Plan) (the "Director Stock Plan") authorizes the issuance of restricted stock awards and non-qualified stock options to purchase shares of UFG's common stock to non-employee directors. On May 20, 2020, the Company’s shareholders approved amendments to the Director Stock Plan, previously approved by the Company’s Board of Directors, to (i) increase the number of shares available for future awards under the Director Stock Plan from 300,000 to 450,000, (ii) extend the expiration date of the Director Stock Plan from December 31, 2020 to December 31, 2029, (iii) allow for the grant of awards of restricted stock units, and (iv) rename the Director Stock Plan as the "United Fire Group, Inc. Non-Employee Director Stock Plan." At December 31, 2020, we had 160,135 authorized shares available for future issuance. The Board of Directors has the authority to determine which non-employee directors receive awards, when options and restricted stock shall be granted, the option price, the option expiration date, the date of grant, the vesting schedule of options or whether the options shall be immediately vested, the terms and conditions of options and restricted stock (other than those terms and conditions set forth in the plan) and the number of shares of common stock to be issued pursuant to an option agreement or restricted stock agreement (subject to limits set forth in the plan). The Board of Directors may also take any action it deems necessary and appropriate for the administration of the Director Stock Plan. The activity in the Director Stock Plan is displayed in the following table: Authorized Shares Available for Future Award Grants Year Ended December 31, 2020 From Inception to December 31, 2020 Beginning balance 34,863 300,000 Additional authorization 150,000 150,000 Number of awards granted (24,728) (313,868) Number of awards forfeited or expired — 24,003 Ending balance 160,135 160,135 Number of option awards exercised 14,728 133,820 Number of restricted stock awards vested 14,300 98,491 Stock-Based Compensation Expense In 2020, 2019 and 2018, we recognized stock-based compensation expense of $4,991, $6,152 and $5,249, respectively. Stock-based compensation expense is recognized over the vesting period of the stock options. As of December 31, 2020, we had $4,095 in stock-based compensation expense that has yet to be recognized through our results of operations. We expect this compensation to be recognized in subsequent years according to the following table, except with respect to awards that are accelerated by the Board of Directors, in which case we will recognize any remaining compensation expense in the period in which the awards are accelerated. 2021 $ 2,624 2022 1,107 2023 269 2024 83 2025 12 Total $ 4,095 Analysis of Award Activity The analysis below details the option award activity for 2020 and the awards outstanding at December 31, 2020, for both of our plans and ad hoc options, which were granted prior to the adoption of the other plans: Options Shares Weighted-Average Exercise Price Weighted-Average Remaining Life (in years) Aggregate Intrinsic Value Outstanding at January 1, 2020 829,714 $ 35.39 Granted 110,470 44.08 Exercised (45,628) 21.93 Cancelled/Forfeited (1,300) 29.20 Outstanding at December 31, 2020 893,256 $ 37.16 5.16 $ 179 Exercisable at December 31, 2020 663,788 $ 34.46 4.21 $ 179 Intrinsic value is the difference between our share price on the last day of trading (i.e., December 31, 2020) and the price of the options when granted and represents the value that would have been received by option holders had they exercised their options on that date. These values change based on the fair market value of our shares. The intrinsic value of options exercised totaled $299, $2,055 and $5,850 in 2020, 2019 and 2018, respectively. The analysis below details the award activity for the restricted stock and restricted stock unit awards outstanding at December 31, 2020: Restricted stock awards Shares Weighted-Average Grant Date Fair Value Non-vested at January 1, 2020 246,750 $ 43.31 Granted 101,130 37.87 Vested (77,900) 39.93 Forfeited (52,097) 41.40 Non-vested at December 31, 2020 217,883 $ 42.45 In 2020, 2019 and 2018 we recognized $3,734, $4,659 and $3,877, respectively, in compensation expense related to the restricted stock and restricted stock unit awards. At December 31, 2020, we had $3,074 in compensation expense that has yet to be recognized through our results of operations related to the restricted stock and restricted stock unit awards. The intrinsic value of the non-vested restricted stock and restricted stock unit awards outstanding totale d $5,469 and $10,165 at December 31, 2020 and 2019, respectively. Assumptions The weighted-average grant-date fair value of the options granted under our plans has been estimated using the Black-Scholes option pricing model with the following weighted-average assumptions: December 31, 2020 2019 2018 Risk-free interest rate 1.4 % 2.57 % 2.79 % Expected volatility 22.26 % 26.40 % 21.79 % Expected option life (in years) 7 7 7 Expected dividends (in dollars) $ 1.32 $ 1.24 $ 1.12 Weighted-average grant-date fair value of options granted during the year (in dollars) $ 6.96 $ 12.97 $ 8.90 The following table summarizes information regarding the stock options outstanding and exercisable at December 31, 2020: Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding (in shares) Weighted-Average Remaining Contractual Life (in years) Weighted-Average Exercise Price Number Exercisable (in shares) Weighted-Average Exercise Price $ 20.40 - 29.02 92,415 2.14 $ 23.81 87,070 $ 23.63 29.03 - 29.37 182,462 3.93 29.12 182,462 29.12 29.38 - 40.61 239,097 4.04 35.47 210,663 34.87 40.62 - 44.88 210,260 6.08 42.87 158,190 42.86 44.89 - 54.26 169,022 8.56 48.44 25,403 54.11 $ 20.40 - 54.26 893,256 5.16 $ 37.16 663,788 $ 34.46 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION On September 19, 2017, the Company announced that it had agreed to sell its subsidiary, United Life, to Kuvare. The sale closed on March 30, 2018. As a result, our life insurance business was considered held for sale and reported as discontinued operations in the Consolidated Financial Statements and all comparable prior periods have been presented to conform to the current year presentation. For more information, refer to Note 17 "Discontinued Operations." Prior to the announcement to sell United Life, we had two reportable business segments in our operations: property and casualty insurance and life insurance. The property and casualty insurance business has six domestic locations from which it conducts its business. The life insurance business operated from our home office. Because all of our insurance is sold domestically, we have no revenues allocable to foreign operations. After the announcement of the sale of United Life, our continuing operations, the property and casualty insurance business, is reported as one reportable segment. The property and casualty insurance business profit or loss is consistent with consolidated reporting as disclosed on the Consolidated Statements of Income and Comprehensive Income. We analyze the property and casualty insurance business results based on profitability (i.e., loss ratios), expenses and return on equity. The Company's property and casualty insurance business was determined using a management approach to make decisions on operating matters, including allocating resources, assessing performance, determining which products to market and sell, determining distribution networks with insurance agents and monitoring the regulatory environment. The property and casualty insurance business products have similar economic characteristics and use a similar marketing and distribution strategy with our independent agents. The property and casualty insurance business geographic concentration did not change after the announcement of the sale of the life insurance business. We will continue to evaluate our continuing operations on the basis of both statutory accounting principles prescribed or permitted by our states of domicile and GAAP. The accounting policies of our businesses are the same as those described in Note 1 "Summary of Significant Accounting Policies" to our Consolidated Financial Statements. We analyze results based on profitability (i.e., loss ratios), expenses and return on equity. Property and Casualty Insurance Business We write both commercial and personal lines of property and casualty insurance. We focus on our commercial lines, which represented 94.2 percent of our property and casualty insurance premiums earned for 2020. Our personal lines represented 5.8 percent of our property and casualty insurance premiums earned for 2020. Commercial Lines Business Our primary commercial policies are tailored business packages that include the following coverages: fire and allied lines, other liability, automobile, workers' compensation and surety. Personal Lines Business Our personal lines consist primarily of automobile and fire and allied lines coverage, including homeowners. In May 2020, the Company entered into a renewal rights agreement for our personal lines business, providing our independent insurance agents with the opportunity to transfer their personal lines policies to Nationwide Mutual Insurance Company beginning in the third quarter of 2020, subject to the receipt of applicable regulatory approvals. As part of this agreement, Nationwide will offer contracts to all of our personal lines agents across the country, with the exception of agents in Louisiana and Florida. We are continuing to evaluate our strategic plan for the personal lines business in Louisiana and Florida. Pricing Pricing levels for our property and casualty insurance products are influenced by many factors, including an estimation of expected losses, the expenses of producing, issuing and servicing business and managing claims, the time value of money associated with such loss and expense cash flows, and a reasonable allowance for profit. We have a disciplined approach to underwriting and risk management that emphasizes profitable growth rather than premium volume or market share. Our insurance company subsidiaries are subject to state laws and regulations regarding rate and policy form approvals. The applicable state laws and regulations establish standards in certain lines of business to ensure that rates are not excessive, inadequate, unfairly discriminatory, or used to engage in unfair price competition. Our ability to increase rates and the relative timing of the process are dependent upon each respective state's requirements, as well as the competitive market environment. Seasonality Our property and casualty insurance business experiences some seasonality with regard to premiums written, which are generally highest in January and July and lowest during the fourth quarter. Although we experience some seasonality in our premiums written, premiums are earned ratably over the period of coverage. Losses and loss settlement expenses incurred tend to remain consistent throughout the year, with the exception of catastrophe losses which generally are highest in the second and third quarters. Catastrophes inherently are unpredictable and can occur at any time during the year from man-made or natural disaster events that include, but are not limited to, hail, tornadoes, hurricanes and windstorms. Premiums Earned The following table sets forth our net premiums earned: Years Ended December 31, 2020 2019 2018 Continuing Operations - Property and casualty insurance business Net premiums earned Other liability $ 316,098 $ 318,412 $ 311,931 Fire and allied lines 277,515 285,205 276,193 Automobile 324,420 345,637 313,521 Workers' compensation 75,953 87,376 95,203 Fidelity and surety 28,001 25,539 24,437 Reinsurance assumed 30,417 21,861 13,228 Other 2,678 2,942 2,938 Total net premiums earned from continuing operations $ 1,055,082 $ 1,086,972 $ 1,037,451 Discontinued Operations - Life insurance business Net premiums earned Ordinary life (excluding universal life) $ — $ — $ 7,068 Universal life policy fees — — 3,363 Immediate annuities with life contingencies — — 2,515 Accident and health — — 45 Other — — 12 Total net premiums earned from discontinued operations $ — $ — $ 13,003 |
QUARTERLY SUPPLEMENTARY FINANCI
QUARTERLY SUPPLEMENTARY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Data [Abstract] | |
QUARTERLY SUPPLEMENTARY FINANCIAL INFORMATION (UNAUDITED) | QUARTERLY SUPPLEMENTARY FINANCIAL INFORMATION (UNAUDITED) The following table sets forth our selected unaudited quarterly financial information: (In Thousands Except Share Data) Quarters First Second Third Fourth Total Year Ended December 31, 2020 Total revenues $ 177,805 $ 297,803 $ 282,121 $ 310,898 $ 1,068,627 Income (loss) before income taxes (104,999) 4,236 (55,228) (13,524) (169,515) Net income (loss) $ (72,534) $ 5,960 $ (37,241) $ (8,891) $ (112,706) Basic earnings (loss) per share (1) $ (2.90) $ 0.24 $ (1.49) $ (0.36) $ (4.50) Diluted earnings (loss) per share (1) (2.90) 0.24 (1.49) (0.36) (4.50) Year Ended December 31, 2019 Total revenues $ 305,539 $ 304,197 $ 298,055 $ 293,374 $ 1,201,165 Income (loss) before income taxes 54,677 (4,571) (4,528) (28,699) 16,879 Net income (loss) $ 44,521 $ (4,196) $ (2,342) $ (23,163) $ 14,820 Basic earnings (loss) per share (1) $ 1.77 $ (0.17) $ (0.09) $ (0.93) $ 0.59 Diluted earnings (loss) per share (1) 1.74 (0.17) (0.09) (0.93) 0.58 (1) The sum of the quarterly reported amounts may not equal the full year, as each is computed independently. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the reporting period. Diluted earnings per share gives effect to all dilutive common shares outstanding during the reporting period. The dilutive shares we consider in our diluted earnings per share calculation relate to our outstanding stock options and restricted stock awards. We determine the dilutive effect of our outstanding stock options using the "treasury stock" method. Under this method, we assume the exercise of all of the outstanding stock options whose exercise price is less than the weighted-average market value of our common stock during the reporting period. This method also assumes that the proceeds from the hypothetical stock option exercises are used to repurchase shares of our common stock at the weighted-average market value of the stock during the reporting period. The net of the assumed stock options exercised and assumed common shares repurchased represents the number of dilutive common shares, which we add to the denominator of the earnings per share calculation. The components of basic and diluted earnings per share were as follows: Years Ended December 31, 2020 2019 2018 (In Thousands Except Share and Per Share Data) Basic Diluted Basic Diluted Basic Diluted Net income (loss) from continuing operations $ (112,706) $ (112,706) $ 14,820 $ 14,820 $ 2,255 $ 2,255 Weighted-average common shares outstanding 25,027,358 25,027,358 25,138,039 25,138,039 25,006,211 25,006,211 Add dilutive effect of restricted stock awards — — — 232,450 — 273,544 Add dilutive effect of stock options — — — 212,038 — 343,057 Weighted-average common shares 25,027,358 25,027,358 25,138,039 25,582,527 25,006,211 25,622,812 Earnings (loss) per common share from continuing operations $ (4.50) $ (4.50) $ 0.59 $ 0.58 $ 0.09 $ 0.09 Earnings (loss) per common share from discontinued operations — — — — (0.08) (0.07) Gain on sale of discontinued operations, net of taxes $ — $ — $ — $ — $ 1.10 $ 1.07 Earnings (loss) per common share $ (4.50) $ (4.50) $ 0.59 $ 0.58 $ 1.11 $ 1.08 Awards excluded from diluted calculation (1) — 618,379 — 63,897 — 2,681 (1) Outstanding awards that are not "in-the-money" are excluded from the diluted earnings per share calculation because the effect of including them would have been anti-dilutive. |
LEASE COMMITMENTS
LEASE COMMITMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
LEASE COMMITMENTS | LEASE COMMITMENTS The Company determines if a contract contains a lease at inception of the contract by reviewing the facts and circumstances of the contract to determine if a lease is present. The Company has operating leases relating to office space, vehicles, computer equipment, and office equipment, which are recorded as a lease obligation liability disclosed in the "Accrued expenses and other liabilities" line on the Consolidated Balance Sheets and as a lease right-of-use asset disclosed in the "Other assets" line on the Consolidated Balance Sheets. The lease right-of-use asset represents the Company's right to use each underlying asset for the lease term and the lease obligation liability represents the Company's obligation over the lease term. As an accounting policy election, we have elected the practical expedient on not separating lease components from non-lease components to each major asset class. The Company's lease obligation is recorded at the present value of the lease payments based on the term of the applied lease. The Company has elected to categorize its leases into four categories based on length of lease terms and applies an incremental borrowing rate of interest as of the effective date of adoption or the lease effective date equivalent to a collateralized rate with similar terms. The four categories are as follows: less than three years, three to five years, five to ten years and greater than ten years. The collateralized discount rate used to calculate the present value of future minimum lease payments is based, where appropriate, on the Company's incremental borrowing rate of its credit facility, described in Note 14 "Debt". For leases that existed prior to the adoption of the new accounting guidance on January 1, 2019 or those with terms not similar to the credit facility, the Company has elected to use the remaining lease term based on the four categories noted above as of the date of initial application to measure its incremental borrowing rate. In this case, the incremental borrowing rate is a collateralized rate based on current industry borrowing rates for similar companies with similar ratings. Lease terms and options vary in the Company's operating leases dependent upon the underlying leased asset. We exclude options to extend or terminate a lease from our recognition as part of our right-of-use assets and lease liabilities until those options are known and/or executed, as we typically do not exercise options to purchase the underlying leased asset. As of December 31, 2020, we have leases with remaining terms of 1 year to 6 years, some of which may include no options for renewal and others with options to extend the lease terms from 6 months to 5 years. The components of our operating leases were as follows: As of December 31, 2020 As of December 31, 2019 Components of lease expense: Operating lease expense $ 7,611 $ 7,655 Less sublease income 292 493 Net lease expense 7,319 7,162 Cash flows information related to leases: Operating cash outflow from operating leases 7,053 7,249 Balance sheet information for operating leases: As of December 31, 2020 As of December 31, 2019 Operating lease right-of-use assets (Other assets on Consolidated Balance Sheets) $ 18,619 $ 15,410 Operating lease liabilities (Accrued expenses and other liabilities on Consolidated Balance Sheets) 19,244 15,851 Right-of-use assets obtained in exchange for new operating lease liabilities 7,264 651 Weighted average remaining lease term 4.36 years 2.75 years Weighted average discount rate 3.72 % 4.74 % Maturities of lease liabilities: As of December 31, 2020 As of December 31, 2019 2021 $ 6,889 $ 7,517 2022 4,610 5,311 2023 3,627 2,417 2024 1,763 1,318 2025 1,270 259 Thereafter 2,460 39 Total lease payments 20,619 16,861 Less imputed interest (1,375) (1,010) Lease liability $ 19,244 $ 15,851 |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Long Term Debt The Company executed a private placement debt transaction on December 15, 2020 between UF&C, and Federated Mutual and Federated Life. UFG sold an aggregate $50,000 of notes due 2040 to the Note Purchasers. One note with a principal amount of $35,000 was issued to Federated Mutual and one note with a principal amount of $15,000 was issued to Federated Life subject to the terms of their respective notes. The Company incurred $24 in debt issuance costs associated with this debt transaction in 2020. Interest payments under the surplus notes will be paid quarterly on March 15, June 15, September 15 and December 15 of each year (each such date, an "Interest Payment Date"). The interest rate will equal the rate that corresponds to the A.M. Best Co. (or its successor’s) financial strength rating for members of the United Fire & Casualty Pooled Group as of the applicable Interest Payment Date, as set forth in the table below. As of December 31, 2020, interest expense totaled $133. Payment of interest is subject to approval by the Iowa Insurance Division. A.M. Best Co. Financial Strength Rating Applicable Interest Rate A+ 5.875% A 6.375% A- 6.875% B++ (or lower) 7.375% Credit Facilities On March 31, 2020, UF&C a wholly owned subsidiary of the Company, entered into a credit agreement (the "Credit Agreement") with Wells Fargo Bank, National Association ("Wells Fargo"), as administrative agent (the "Administrative Agent"), issuing lender, swing-line lender and lender, and the other lenders from time to time party thereto (collectively with Wells Fargo, the "Lenders"), providing for a $50,000 revolving credit facility, which includes a $20,000 letter of credit sub-facility and a $5,000 swing-line loan for working capital and other general corporate purposes. The Credit Agreement is provided by the Lenders on an unsecured basis, and the UF&C has the option to increase the Credit Agreement by $100,000 if agreed to by the Lenders providing such incremental facility. The Credit Agreement includes customary events of default, including default in payments of principals, default in payment of other indebtedness, change of control and voluntary and involuntary insolvency proceedings, the occurrence of which would allow the Lenders to accelerate payment of all amounts outstanding thereunder and terminate any further commitments to lend. The entry into the Credit Agreement was completed as part of the Company’s regular course of financial planning and was not initiated as a result of market conditions resulting from the COVID-19 pandemic. Prior to February 2, 2020, the Company had a credit agreement (the "Previous Credit Agreement") which it entered into on February 2, 2016. The Company, as borrower, entered into the Previous Credit Agreement with the lenders from time to time party thereto and KeyBank National Association ("Key Bank"), as administrative agent, swingline lender and letter of credit issuer. The Previous Credit Agreement provided for a $50,000 four There was no outstanding balance on either the Credit Agreement or the Previous Credit Agreement at December 31, 2020 or 2019, respectively. As of December 31, 2020, we were in compliance with two of three financial covenants of the Credit Agreement. We have received a waiver from the Lenders on the third financial covenant. We have the ability to draw on our credit facility if needed. We did not incur any interest expense related to the Credit Agreement in 2020 or under our Previous Credit Agreement in 2019 and 2018. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS The carrying value of our goodwill was zero at December 31, 2020 and $15,091 at December 31, 2019, respectively. During the third quarter of 2020, we completed our annual quantitative analysis of goodwill. As a result of the quantitative analysis, we impaired the remaining balance of our goodwill of $15,091 as of September 30, 2020 based on the following factors: (i) disruptions in the equity markets, specifically for property and casualty insurance companies, as a result of the COVID-19 pandemic and due to recent weather related catastrophes; (ii) recent elevated commercial auto loss ratios; and (iii) the fair value of our stock trading significantly below book value. The Company used a weighting of the income and market approaches to determine the fair value of the reporting unit. Our major classes of intangible assets are presented in the following table: Year Ended December 31, 2020 2019 Agency relationships $ 10,338 $ 10,338 Accumulated amortization - agency relationships (7,307) (6,731) $ 3,031 $ 3,607 Software $ 3,260 $ 3,260 Accumulated amortization - software (3,260) (3,260) $ — $ — Trade names $ 1,978 $ 1,978 Accumulated amortization - trade names (1,286) (1,154) $ 692 $ 824 Favorable contract $ 286 $ 286 Accumulated amortization - favorable contract (286) (286) $ — $ — State insurance licenses (1) $ 3,020 $ 3,020 Net intangible assets $ 6,743 $ 7,451 (1) The intangible asset for licenses has an indefinite life and therefore is not amortized. The estimated useful lives assigned to our major classes of amortizable intangible assets are as follows: Useful Life Agency relationships Fifteen years Software Two years Trade names Fifteen years Favorable contract Two years Our estimated aggregate amortization expense for each of the next five years is as follows: 2021 $ 709 2022 709 2023 709 2024 709 2025 709 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | ACCUMULATED OTHER COMPREHENSIVE INCOME The following table shows the changes in the components of our accumulated other comprehensive income (loss), net of tax, for the years ended December 31, 2020, 2019 and 2018: Liability for Net unrealized underfunded appreciation employee on investments benefit costs Total Balance as of January 1, 2018 $ 214,865 $ (46,551) $ 168,314 Cumulative effect of change in accounting principle (191,244) — (191,244) Change in accumulated other comprehensive income before reclassifications (33,564) 20,155 (13,409) Reclassification adjustments from accumulated other comprehensive income 620 5,247 5,867 Balance as of December 31, 2018 $ (9,323) $ (21,149) $ (30,472) Change in accumulated other comprehensive income before reclassifications 55,399 (16,530) 38,869 Reclassification adjustments from accumulated other comprehensive income 1,203 3,552 4,755 Balance as of December 31, 2019 $ 47,279 $ (34,127) $ 13,152 Change in accumulated other comprehensive income before reclassifications 37,173 14,580 51,753 Reclassification adjustments from accumulated other comprehensive income (1,382) 3,388 2,006 Balance as of December 31, 2020 $ 83,070 $ (16,159) $ 66,911 |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS On September 18, 2017, we signed a definitive agreement to sell our subsidiary, United Life Insurance Company, to Kuvare for $280,000 in cash, less a $21 adjustment as set forth in the definitive agreement, for a net amount of $279,979. The sale closed on March 30, 2018 and we reported an after-tax gain on the sale of discontinued operations of $27,307. The life insurance business (previously reported as a separate segment) was considered held for sale and reported as discontinued operations and its financial position, results of operations and cash flows were reported separately for all periods presented, as applicable, unless otherwise noted. UFG agreed to provide services to Kuvare through a transition services agreement ("TSA"). The TSA included, among other considerations, accounting management, human resources, legal and information technology services, from the closing date for up to 24 months. The TSA ended as scheduled on March 30, 2020. The Company received a total of $1,019 as p art of the TSA. Summary operating results of discontinued operations were as follows for the periods indicated: Discontinued Operations Statements of Income For the Years Ended December 31, (In Thousands, Except Share Data) 2020 2019 2018 Revenues Net premiums earned $ — $ — $ 13,003 Investment income, net of investment expenses — — 12,663 Total net realized investment gains (losses) — — (1,057) Other income — — 146 Total revenues $ — $ — $ 24,755 Benefits, Losses and Expenses Losses and loss settlement expenses $ — $ — $ 10,823 Increase in liability for future policy benefits — — 5,023 Amortization of deferred policy acquisition costs — — 1,895 Other underwriting expenses — — 3,864 Interest on policyholders’ accounts — — 4,499 Total benefits, losses and expenses $ — $ — $ 26,104 Income (loss) from discontinued operations before income taxes $ — $ — $ (1,349) Federal income tax expense — — 563 Net income (loss) from discontinued operations $ — $ — $ (1,912) Earnings (loss) per common share from discontinued operations: Basic $ — $ — $ (0.08) Diluted — — (0.07) |
Schedule I. Summary of Investme
Schedule I. Summary of Investments - Other than Investments in Related Parties | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Schedule I. Summary of Investments - Other than Investments in Related Parties | Schedule I. Summary of Investments — Other than Investments in Related Parties December 31, 2020 (In thousands) Cost or Amortized Cost Amounts at Which Shown in Balance Sheet Type of Investment Fair Value Fixed maturities Bonds United States Government and government agencies and authorities $ 209,983 $ 214,456 $ 214,456 States, municipalities and political subdivisions 824,545 884,700 884,700 Foreign governments 27,799 29,602 29,602 Public utilities 76,114 83,502 83,502 All other bonds 581,850 613,183 613,178 Redeemable preferred stock — — — Total fixed maturities $ 1,720,291 $ 1,825,443 $ 1,825,438 Equity securities Common stocks Public utilities $ 3,760 $ 16,320 $ 16,320 Banks, trusts and insurance companies 7,853 69,577 69,577 Industrial, miscellaneous and all other 36,877 120,193 120,193 Nonredeemable preferred stocks 595 595 595 Total equity securities $ 49,085 $ 206,685 $ 206,685 Mortgage loans on real estate $ 47,690 $ 48,932 $ 47,614 Other long-term investments 73,820 69,305 69,305 Short-term investments 175 175 175 Total investments $ 1,891,061 $ 2,150,540 $ 2,149,217 |
Schedule II. Condensed Financia
Schedule II. Condensed Financial Statements of Parent Company | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule II. Condensed Financial Statements of Parent Company | Schedule II. Condensed Financial Statements of Parent Company United Fire Group, Inc. (parent company only) Condensed Balance Sheets December 31, (In thousands, except share data) 2020 2019 Assets Fixed maturities Available-for-sale, at fair value (amortized cost $150 in 2020 and $150 in 2019) $ 150 $ 150 Investment in subsidiary 818,581 880,485 Cash and cash equivalents 6,504 29,878 Other assets 15 3 Total assets $ 825,250 $ 910,516 Liabilities and stockholders' equity Liabilities $ 101 $ 44 Stockholders' equity Common stock, $0.001 par value, authorized 75,000,000 shares 25,055,479 and 25,015,963 issued and outstanding in 2020 and 2019, respectively $ 25 $ 25 Additional paid-in capital 202,359 200,179 Retained earnings 555,854 697,116 Accumulated other comprehensive income, net of tax 66,911 13,152 Total stockholders' equity $ 825,149 $ 910,472 Total liabilities and stockholders' equity $ 825,250 $ 910,516 This condensed financial information should be read in conjunction with the Consolidated Financial Statements and Notes included in Part II, Item 8 of this Annual Report on Form 10-K. Schedule II. Condensed Financial Statements of Parent Company (continued) United Fire Group, Inc. (parent company only) Condensed Statements of Income and Comprehensive Income For the Years Ended December 31, (In thousands) 2020 2019 2018 Revenues Investment income $ 141 $ 295 $ 396 Total revenues 141 295 396 Expenses Other operating expenses $ 10 $ 86 $ 95 Total expenses 10 86 95 Income before income taxes and equity in net income of subsidiary 131 209 301 Federal income tax expense (benefit) 68 44 (1,165) Net income before equity in net income (loss) of subsidiary $ 63 $ 165 $ 1,466 Equity in net income (loss) of subsidiary (112,769) 14,655 26,184 Net income (loss) $ (112,706) $ 14,820 $ 27,650 Other comprehensive income (loss) Change in unrealized appreciation on investments held by subsidiary $ 47,054 $ 70,127 $ (50,985) Change in liability for underfunded employee benefit plans of subsidiary 18,456 (20,924) 25,513 Other comprehensive income (loss), before tax and reclassification adjustments $ 65,510 $ 49,203 $ (25,472) Income tax effect (13,757) (10,334) 5,349 Other comprehensive income (loss), after tax, before reclassification adjustments $ 51,753 $ 38,869 $ (20,123) Reclassification adjustment for net realized gains of the subsidiary included in income (1,750) 1,521 784 Reclassification adjustment for employee benefit costs of the subsidiary included in expense 4,289 4,497 6,642 Total reclassification adjustments, before tax $ 2,539 $ 6,018 $ 7,426 Income tax effect (534) (1,263) (1,559) Total reclassification adjustments, after tax $ 2,005 $ 4,755 $ 5,867 Comprehensive income (loss) $ (58,948) $ 58,444 $ 13,394 United Fire Group, Inc. and its subsidiaries file a consolidated federal income tax return. The federal income tax provision represents an allocation under its tax allocation agreements. This condensed financial information should be read in conjunction with the Consolidated Financial Statements and Notes included in Part II, Item 8 of this Annual Report on Form 10-K. Schedule II. Condensed Financial Statements of Parent Company (continued) United Fire Group, Inc. (parent company only) Condensed Statements of Cash Flows For the Years Ended December 31, (In thousands) 2020 2019 2018 Cash flows from operating activities Net income (loss) $ (112,706) $ 14,820 $ 27,650 Adjustments to reconcile net income to net cash provided by operating activities Equity in net income of subsidiary 112,769 (14,655) (26,184) Dividends received from subsidiary 4,000 57,000 105,000 Other, net 3,907 5,512 1,824 Total adjustments $ 120,676 $ 47,857 $ 80,640 Net cash provided by operating activities $ 7,970 $ 62,677 $ 108,290 Cash flows from investing activities Net cash used in investing activities $ — $ — $ — Cash flows from financing activities Payment of cash dividends $ (28,532) $ (32,662) $ (105,408) Repurchase of common stock (2,741) (11,700) (5,404) Issuance of common stock (71) 2,377 7,171 Net cash used in financing activities $ (31,344) $ (41,985) $ (103,641) Net change in cash and cash equivalents $ (23,374) $ 20,692 $ 4,649 Cash and cash equivalents at beginning of period 29,878 9,186 4,537 Cash and cash equivalents at end of year $ 6,504 $ 29,878 $ 9,186 This condensed financial information should be read in conjunction with the Consolidated Financial Statements and Notes included in Part II, Item 8 of this Form 10-K. |
Schedule III. Supplementary Ins
Schedule III. Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
Schedule III. Supplementary Insurance Information | Schedule III. Supplementary Insurance Information (In thousands) Deferred Policy Acquisition Costs Future Policy Benefits, Losses, Claims and Loss Expenses Unearned Premiums Earned Premium Revenue Investment Income, Net Benefits, Claims, Losses and Settlement Expenses Amortization of Deferred Policy Acquisition Costs Other Underwriting Expenses Interest on Policyholders' Accounts Premiums Written (2) Year Ended December 31, 2020 Continuing Operations $ 87,094 $ 1,578,131 $ 464,845 $ 1,055,082 $ 39,670 $ 869,467 $ 210,252 $ 143,332 $ — $ 1,011,350 Discontinued Operations (1) — — — — — — — — — — Total $ 87,094 $ 1,578,131 $ 464,845 $ 1,055,082 $ 39,670 $ 869,467 $ 210,252 $ 143,332 $ — $ 1,011,350 Year Ended December 31, 2019 Continuing Operations $ 94,292 $ 1,421,754 $ 505,162 $ 1,086,972 $ 60,414 $ 830,172 $ 216,199 $ 137,415 $ — $ 1,096,730 Discontinued Operations (1) — — — — — — — — — — Total $ 94,292 $ 1,421,754 $ 505,162 $ 1,086,972 $ 60,414 $ 830,172 $ 216,199 $ 137,415 $ — $ 1,096,730 Year Ended December 31, 2018 Continuing Operations $ 92,796 $ 1,312,483 $ 492,918 $ 1,037,451 $ 52,894 $ 731,611 $ 206,232 $ 141,473 $ — $ 1,061,664 Discontinued Operations (1) — — — 13,003 12,663 15,846 1,895 3,864 4,499 — Total $ 92,796 $ 1,312,483 $ 492,918 $ 1,050,454 $ 65,557 $ 747,457 $ 208,127 $ 145,337 $ 4,499 $ 1,061,664 (1) Annuity deposits are included in future policy benefits, losses, claims and loss expenses. |
Schedule IV. Reinsurance
Schedule IV. Reinsurance | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
Schedule IV. Reinsurance | Schedule IV. Reinsurance (In thousands) Gross Amount Ceded to Other Companies Assumed From Other Companies Net Amount Percentage of Amount Assumed to Net Earned Year Ended December 31, 2020 Premiums earned Property and casualty insurance $ 1,106,327 $ 84,924 $ 33,679 $ 1,055,082 3.19 % Year Ended December 31, 2019 Premiums earned Property and casualty insurance $ 1,133,583 $ 72,023 $ 25,412 $ 1,086,972 2.34 % Year Ended December 31, 2018 Premiums earned Property and casualty insurance $ 1,083,981 $ 63,487 $ 16,957 $ 1,037,451 1.63 % |
Schedule V. Valuation and Quali
Schedule V. Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule V. Valuation and Qualifying Accounts | Schedule V. Valuation And Qualifying Accounts (In thousands) Balance at beginning of period Charged to costs and expenses Deductions Balance at end of period Description Allowance for bad debts Year Ended December 31, 2020 $ 1,239 $ — $ 552 $ 687 Year Ended December 31, 2019 785 454 — 1,239 Year Ended December 31, 2018 1,255 — 470 785 Deferred tax asset valuation allowance (1) Year Ended December 31, 2020 $ — $ — $ — $ — Year Ended December 31, 2019 — — — — Year Ended December 31, 2018 329 — 329 — (1) Recorded in connection with the purchase of American Indemnity Financial Corporation in 1999. |
Schedule_VI. Supplemental Infor
Schedule VI. Supplemental Information Concerning Property and Casualty Insurance Operations | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Abstract] | |
Schedule VI. Supplemental Information Concerning Property and Casualty Insurance Operations | Schedule VI. Supplemental Information Concerning Property and Casualty Insurance Operations (In thousands) Affiliation with Registrant: United Fire & Casualty Company and consolidated property and casualty subsidiaries Claims and Claim Adjustment Expenses Incurred Related to: Amortization of Deferred Policy Acquisition Costs Reserves for Unpaid Claims and Claim Adjustment Expenses Net Realized Investment Gains (Losses) Deferred Policy Acquisition Costs Net Investment Income Paid Claims and Claim Adjustment Expenses Unearned Premiums Earned Premiums Current Year Prior Years Premiums Written 2020 $ 87,094 $ 1,578,131 $ 464,845 $ 1,055,082 $ (32,395) $ 39,670 $ 887,119 $ (17,652) $ 210,252 $ 776,397 $ 1,011,350 2019 $ 94,292 $ 1,421,754 $ 505,162 $ 1,086,972 $ 53,779 $ 60,414 $ 835,507 $ (5,335) $ 216,699 $ 732,343 $ 1,096,730 2018 $ 92,796 $ 1,312,483 $ 492,928 $ 1,037,451 $ (20,179) $ 52,894 $ 785,778 $ (54,167) $ 206,232 $ 640,534 $ 1,061,664 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Discontinued Operations | On September 18, 2017, the Company signed a definitive agreement to sell its subsidiary, United Life Insurance Company ("United Life"), to Kuvare US Holdings, Inc. ("Kuvare") and on March 30, 2018, the sale closed. As a result, our life insurance business, previously a separate segment, has been reported as discontinued operations in the Consolidated Statements of Income and Comprehensive Income and Consolidated Statements of Cash Flows for the twelve month period ended December 31, 2018 in this Form 10-K. Subsequent to the announcement of this sale, our continuing operations were reported as one business segment. All current and prior periods reflected in this Form 10-K have been presented as continuing and discontinued operations, unless otherwise noted. |
Principles of Consolidation | The accompanying Consolidated Financial Statements include United Fire and its wholly owned subsidiaries: United Fire & Casualty Company, United Real Estate Holdings, LLC, Addison Insurance Company, Lafayette Insurance Company, United Fire & Indemnity Company, United Fire Lloyds, UFG Specialty Insurance Company, Financial Pacific Insurance Company, Franklin Insurance Company, Mercer Insurance Company, Mercer Insurance Company of New Jersey, Inc, McIntyre Cedar UK Limited. Mercer Insurance Company and McIntyre Cedar Corporate Member LLP. United Fire Lloyds, an affiliate of United Fire & Indemnity Company, is organized as a Texas Lloyds plan, which is an aggregation of underwriters who, under a common name, engage in the business of insurance through a corporate attorney-in-fact. United Fire Lloyds is financially and operationally controlled by United Fire & Indemnity Company, its corporate attorney-in-fact, pursuant to three types of agreements: trust agreements between United Fire & Indemnity Company and certain individuals who agree to serve as trustees; articles of agreement among the trustees who agree to act as underwriters to establish how the Lloyds plan will be operated; and powers of attorney from each of the underwriters appointing a corporate attorney-in-fact, who is authorized to operate the Lloyds plan. Because United Fire & Indemnity Company can name the trustees, the Lloyds plan is perpetual, subject only to United Fire & Indemnity Company's desire to terminate it. United Fire & Indemnity Company provides all of the statutory capital necessary for the formation of the Lloyds plan by contributing capital to each of the trustees. The trust agreements require the trustees to become underwriters of the Lloyds plan, to contribute the capital to the Lloyds plan, to sign the articles of agreement and to appoint the attorney-in-fact. The trust agreements also require the trustees to pay to United Fire & Indemnity Company all of the profits and benefits received by the trustees as underwriters of the Lloyds plan, which means that United Fire & Indemnity Company has the right to receive 100 percent of the gains and profits from the Lloyds plan. The trustees serve at the pleasure of United Fire & Indemnity Company, which may remove a trustee and replace that trustee at any time. Termination of a trustee must be accompanied by the resignation of the trustee as an underwriter, so that the trustee can obtain the capital contribution from the Lloyds plan to reimburse United Fire & Indemnity Company. By retaining the ability to terminate trustees, United Fire & Indemnity Company possesses the ability to name and remove the underwriters. |
Basis of Presentation | The accompanying Consolidated Financial Statements have been prepared on the basis of U.S. generally accepted accounting principles ("GAAP"), which differ in some respects from those followed in preparing our statutory reports to insurance regulatory authorities. Our stand-alone subsidiary financial statements submitted to insurance regulatory authorities are presented on the basis of accounting practices prescribed or permitted by the insurance departments of the states in which we are domiciled ("statutory accounting principles"). |
Use of Estimates | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The financial statement categories that are most dependent on management estimates and assumptions include: investments; deferred policy acquisition costs; reinsurance receivables and recoverables; goodwill impairment; losses and loss settlement expenses; and pension and post-retirement benefit obligations. |
Property and Casualty Insurance Business and Life Insurance Business | Premiums written are deferred and recorded as earned premium on a daily pro rata basis over the terms of the respective policies. Unearned premium reserves are established for the portion of premiums written applicable to the unexpired term of insurance policies in force.Our whole life and term insurance (i.e., traditional business) premiums are reported as earned when due and benefits and expenses are associated with premium income in order to result in the recognition of profits over the lives of the related contracts. |
Premiums Receivable | Premiums receivable are presented net of an estimated allowance for doubtful accounts, which is based on a periodic evaluation of the aging and collectability of amounts due from agents and policyholders. |
Loss and Loss Settlement Expense Reserves | To establish loss and loss settlement expense reserves, we make estimates and assumptions about the future development of claims. Actual results could differ materially from those estimates, which are subjective, complex and inherently uncertain. When we establish and adjust reserves, we do so given our knowledge at the time of the circumstances and facts of known claims. To the extent that we have overestimated or underestimated our loss and loss settlement expense reserves, we adjust the reserves in the period in which such adjustment is determined.We record our best estimate of reserves for claim litigation that arises in the ordinary course of business. |
Universal Life and Annuity Policies | On universal life and deferred annuity policies (i.e., non-traditional business), income and expenses are reported when charged and credited to policyholder account balances in order to result in recognition of profits over the lives of the related contracts. We accomplish this by means of a provision for future policy benefits and the deferral and subsequent amortization of policy acquisition costs. |
Reinsurance | Premiums earned and losses and loss settlement expenses incurred are reported net of reinsurance ceded. Ceded insurance business is accounted for on a basis consistent with the original policies issued and the terms of the reinsurance contracts. |
Investments | Investments in fixed maturities include bonds and redeemable preferred stocks. Our investments in available-for-sale fixed maturities and trading securities are recorded at fair value. Investments in equity securities, which include common and non-redeemable preferred stocks are recorded at fair value with changes in value recorded as a component of income. Changes in unrealized appreciation and depreciation, with respect to available-for-sale fixed maturities are reported as a component of accumulated other comprehensive income, net of applicable deferred income taxes, in stockholders' equity. Changes in unrealized appreciation and depreciation, with respect to trading securities, are reported as a component of income. |
Cash and Cash Equivalents | For purposes of reporting cash flows, cash and cash equivalents include cash, money market accounts, and non-negotiable certificates of deposit with original maturities of three months or less. |
Deferred Policy Acquisition Costs ("DAC") | Certain costs associated with underwriting new business (primarily commissions, premium taxes and variable underwriting and policy issue expenses associated with successful acquisition efforts) are deferred. Our continuing operations property and casualty insurance DAC is amortized as premium revenue is recognized. The method followed in computing DAC limits the amount of such deferred costs to their estimated realizable value. This takes into account the premium to be earned, losses and loss settlement expenses expected to be incurred and certain other costs expected to be incurred as the premium is earned. This calculation is performed by line of business in a manner consistent with how the policies are currently being marketed and managed. For the discontinued operations traditional life insurance policies, DAC was amortized to income over the premium-paying period in proportion to the ratio of the expected annual premium revenue to the expected total premium revenue. Expected premium revenue and gross profits are based on the same mortality and withdrawal assumptions used in determining future policy benefits. These assumptions are not revised after policy issuance unless the recorded DAC asset is deemed to be unrecoverable from future expected profits. |
Property, Equipment and Depreciation | Property and equipment is presented at cost less accumulated depreciation. Expenditures for maintenance and repairs on property and equipment are generally expensed as incurred. We periodically review these assets for impairment whenever events or changes in business circumstances indicate that the carrying value of the underlying asset may not be recoverable. A loss would be recognized if the estimated fair value of the asset were less than its carrying value. Depreciation is computed primarily by the straight-line method over the following estimated useful lives: Useful Life Computer equipment and software Three years Furniture and fixtures Seven years Leasehold improvements Shorter of the lease term or useful life of the asset Real estate Seven years to thirty-nine years Airplane Five years |
Goodwill and Other Intangible Assets | Goodwill assets arise as a result of business combinations and consist of the excess of the fair value of consideration paid over the tangible and intangible assets acquired and liabilities assumed. All of our goodwill assets relate to the acquisition of Mercer Insurance Group, Inc. on March 28, 2011. We evaluate goodwill assets for impairment at least on an annual basis or whenever events or changes in circumstances indicate that it is more likely than not that the carrying amount of goodwill assets may exceed their implied fair value. Any impairment is recognized in the period that the impairment is identified. During the third quarter of 2020, we completed our annual quantitative analysis of goodwill. As a result of the quantitative analysis, we impaired the remaining balance of our goodwill of $15,091 as of September 30, 2020, based on the following factors: (i) disruptions in the equity markets, specifically for property and casualty insurance companies, as a result of the COVID-19 pandemic and due to recent weather related catastrophes; (ii) recent elevated commercial auto loss ratios and (iii) the fair value of our stock trading significantly below book value. The Company used a weighting of the income and market approaches to determine the fair value of the reporting unit. Our other intangible assets, which consist primarily of agency relationships, trade names, state insurance licenses, and software, are being amortized by the straight-line method over periods ranging from 2 years to 15 years, with the exception of state insurance licenses, which are indefinite-lived and not amortized. |
Income Taxes | The Tax Cuts and Jobs Act of 2017 (the "Tax Act") was enacted on December 22, 2017. The Tax Act significantly revised the U.S. corporate income tax laws including lowering the U.S. federal corporate tax rate from 35 percent to 21 percent, effective January 1, 2018. In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118, which addresses how a company recognizes provisional amounts when a company does not have the necessary information available, prepared or analyzed in reasonable detail to complete its accounting for the effect of the changes in the Tax Act. The measurement period ends when a company has obtained, prepared and analyzed the information necessary to finalize its accounting, but cannot extend beyond one year. As of December 31, 2018 we had completed accounting for the tax effects of enactment of the Tax Act and no adjustments were made during the measurement period. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") was enacted in response to the COVID-19 pandemic. The CARES Act, among other things, permits net operating loss ("NOL") carryovers and carrybacks to offset 100 percent of taxable income for taxable years beginning before 2021. In addition, the CARES Act allows NOLs incurred in 2020, 2019 and 2018 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes. The Company has considered the implications of the CARES Act on its tax provision and has included an income tax benefit of $18.6 million as the result of this Act. Deferred tax assets and liabilities are established based on differences between the financial statement bases of assets and liabilities and the tax bases of those same assets and liabilities, using the currently enacted statutory tax rates. Deferred income tax expense is measured by the year-to-year change in the net deferred tax asset or liability, except for certain changes in deferred tax amounts that affect stockholders' equity and do not impact federal income tax expense. The Company performs a quarterly review of its tax positions and makes a determination whether it is more likely than not that the tax position will be sustained upon examination. If, based on this review, it appears not more likely than not that the position will be sustained, the Company will calculate any unrecognized tax benefits and calculate any interest and penalties. At December 31, 2020, 2019, and 2018 the Company did not recognize any liability for unrecognized tax benefits. In addition, we have not accrued for interest and penalties related to unrecognized tax |
Leases | The Company determines if a contract contains a lease at inception of the contract. The Company's inventory of leases consists of operating leases which are recorded as a lease obligation liability disclosed in the "Accrued expenses and other liabilities" line on the Consolidated Balance Sheets and as a lease right-of-use asset disclosed in the "Other assets" line on the Consolidated Balance Sheets. The Company's operating leases consist of office space, vehicles, computer equipment and office equipment. The lease right-of-use asset represents the Company's right to use each underlying asset for the lease term and the lease obligation liability represents the Company's obligation over the lease term. The Company's lease obligation is recorded at the present value of the lease payments based on the term of the applied lease. Short-term leases of 12 months or less are recorded on the Consolidated Balance Sheets and lease payments are recognized on the Consolidated Statements of Income and Comprehensive Income. |
Variable Interest Entities | The Company and certain related parties are equity investors in one investment in which the Company determined is a variable interest entity ("VIE") as a result of participation in the risks and rewards of the VIE based on the objectives and strategies of the VIE. The VIE is a limited liability company that primarily invests in commercial real estate. The Company and certain related parties are not the primary beneficiary largely due to their inability to influence management or direct the activities that most significantly impact the VIE's economic performance. Based on these facts and circumstances, the Company has a variable interest in the VIE, but has not consolidated the VIE's financial results as it is not the primary beneficiary. The Company's investment is reported in other long-term investments in the Consolidated Balance Sheets and accounted for under the equity method of accounting. |
Stock-Based Compensation | We currently have two equity compensation plans. One plan allows us to grant restricted and unrestricted stock, stock appreciation rights, incentive stock options, and non-qualified stock options to employees. The other plan allows us to grant restricted and non-qualified stock options to non-employee directors.We utilize the Black-Scholes option pricing method to establish the fair value of non-qualified stock options granted under our equity compensation plans. Our determination of the fair value of stock options on the date of grant using this option-pricing model is affected by our stock price, as well as assumptions regarding a number of complex and subjective variables, which include the expected volatility in our stock price, the expected term of the award, the expected dividends to be paid over the term of the award and the expected risk-free interest rate. Any changes in these assumptions may materially affect the estimated fair value of the award. For our restricted and unrestricted stock awards, we utilize the fair value of our common stock on the date of grant to establish the fair value of the award. |
Credit Losses | The Company recognizes credit losses for its available-for-sale fixed-maturity portfolio, reinsurance receivables, mortgage loans and premium receivables by setting up allowances which are remeasured each reporting period and recorded in the Consolidated Statements of Income and Comprehensive Income. For our available-for-sale fixed-maturity portfolio an allowance for credit losses is recorded net of available-for-sale fixed maturities in the Consolidated Balance Sheets and a corresponding credit loss recognized as a realized loss or gain in the Consolidated Statements of Income and Comprehensive Income. The Company determines if an allowance for credit losses is recorded based on a number of factors including the current economic conditions, management's expectations of future economic conditions and performance indicators, such as market value vs. amortized cost, investment spreads widening or contracting, rating actions, payment and default history. The Company does not recognize an allowance for credit losses for accrued interest receivable for available-for-sale fixed-maturity securities, which is recorded in "Accrued investment income" in the Consolidated Balance Sheets and "Investment income, net of investment expenses" in the Consolidated Statements of Income and Comprehensive Income. The Company considers collections of accrued investment income within six months to be timely and therefore not requiring a write- off. If a write-off is required for accrued investment income outstanding greater than six months, the Company writes off accrued interest by reversing net investment income. For more information on credit losses and the allowance for credit losses for available-for-sale fixed-maturity portfolio, see Note 2 "Summary of Investments." An allowance for mortgage loan losses is established based on historical loss information of the collective pool of the Company's commercial mortgage loan investments which have similar risk characteristics. To calculate the allowance for mortgage loan losses, the Company starts with historical loan experience to predict the future expected losses and then layers on a market-linked adjustment. On a quarterly basis, quantitative credit risk metrics, including for example, cash- flows, rent rolls and financial statements are reviewed for each loan to determine if it is performing in line with its expectations. This allowance is presented as a separate line in the Consolidated Balance Sheets beneath the asset value as well as presented net and recorded through "Net realized investment gains (losses)" in the Consolidated Statements of Income and Comprehensive Income. For more information on credit losses and the allowance for credit losses for our investment in mortgage loans see Note 3 "Fair Value of Financial Instruments." For reinsurance receivables, the Company's model estimates expected credit loss by multiplying the exposure at default by both the probability of default and loss given default ("LGD"). The LGD is estimated by the rating of the Company, historical relationship with UFG, existence of letters of credit and known regulation the Company may be held accountable for. The ultimate LGD percentage is estimated after considering Moody’s experience with unsecured year 1 bond recovery rates from 1983-2017. The allowance calculated as of December 31, 2020 is recorded through the line "Reinsurance receivables and recoverables" in the Consolidated Balance Sheets and through the line "Other underwriting expenses" in the Consolidated Statements of Income and Other Comprehensive Income. As of December 31, 2020, the Company had a credit loss allowance for reinsurance receivables of $190. Rollforward of Credit Loss Allowance for Reinsurance Receivable As of December 31, 2020 Beginning balance, January 1, 2020 $ 38 Current-period provision for expected credit losses 152 Write-off charged against the allowance, if any — Recoveries of amounts previously written off, if any — Ending balance of the allowance for reinsurance receivable, December 31, 2020 $ 190 With respect to premiums receivable, the Company utilizes an aging method to estimate credit losses. An allowance for doubtful accounts is based on a periodic evaluation of the aging and collectability of amounts due from agents and policyholders. "Premiums receivable" are presented in the Consolidated Balance Sheets net of an estimated allowance for doubtful accounts and recorded through "Other underwriting expenses" in the Consolidated Statements of Income and Comprehensive Income. |
Comprehensive Income | Comprehensive income includes all changes in stockholders' equity during a period except those resulting from investments by and dividends to stockholders. |
Subsequent Events | In the preparation of the accompanying financial statements, the Company has evaluated all material subsequent events or transactions that occurred after the balance sheet date through the date on which the financial statements were issued for potential recognition or disclosure in the Company's financial statements.Subsequent to the completion of the financial statements as of December 31, 2020, the Company made the decision to change the post-retirement benefit plan to a voluntary plan funded exclusively by participants, commencing at the start of 2023. The impact of this decision will be reflected in the financial statements subsequent to December 31, 2020. As of December 31, 2020, the post-retirement benefit obligation was $31,666. This benefit obligation, along with the unrecognized prior service costs, will be released into the Consolidated Statement of Income and Other Comprehensive Income over the next two years. |
Recently Issued Accounting Standards and Pending Adoption of Accounting Standards | Accounting Standards Adopted in 2020 Intangibles - Other Internal Use Software In August 2018, the FASB issued guidance to align the requirements for capitalizing implementation costs incurred in a cloud computing hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The guidance requires the Company to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. The new guidance was effective for annual and interim periods beginning after December 15, 2019. The Company adopted the new guidance as of January 1, 2020. The adoption did not have a significant impact on the Company's financial position or results of operations. Financial Instruments - Credit Losses In June 2016, the FASB issued new guidance on the measurement of credit losses for most financial instruments. The new guidance replaces the incurred loss model for recognizing credit losses with an expected loss model for instruments measured at amortized cost and requires allowances to be recorded for available-for-sale debt securities rather than reduce the carrying amount. These allowances are remeasured each reporting period. The new guidance was effective for annual periods beginning after December 15, 2019 and interim periods within those years. The new guidance impacted the Company's impairment model related to our available-for-sale fixed-maturity portfolio, reinsurance receivables and mortgage loans. The Company has performed a run of the credit loss models as of January 1, 2020. These models resulted in an immaterial expected credit loss at January 1, 2020. Prior to the adoption of the new guidance, the Company utilized an aging method to estimate credit losses on premiums receivable. This aging method is permitted under the new guidance. The Company adopted the new guidance prospectively as of January 1, 2020 recording a cumulative effect adjustment to opening retained earnings of $30. This cumulative effect adjustment is an allowance related to the Company's reinsurance receivables. The adoption of the new guidance did not have a material impact on the Company's financial position and results of operations. Goodwill In January 2017, the FASB issued new guidance which simplifies the test for goodwill impairment. The new guidance eliminates the implied fair value calculation when measuring a goodwill impairment charge. Under the new guidance, impairment charges are based on the excess of the carrying value over fair value of goodwill. The new guidance was effective for annual and interim periods beginning after December 15, 2019. The Company adopted the new guidance as of January 1, 2020. The adoption did not have a significant impact on the Company's financial position or results of operations. Financial Instruments - Disclosures In August 2018, the FASB issued new guidance which modifies the disclosure requirements on fair value measurements of financial instruments. The new guidance removes the requirement for disclosing the amount and reason for transfers between Level 1 and Level 2 investment securities and the valuation processes for Level 3 fair value measurements. The guidance also requires additional disclosures on the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The new guidance is effective for annual and interim periods beginning after December 15, 2019. The Company adopted the new guidance as of January 1, 2020. The adoption modified existing fair value disclosures, but did not have an impact on the Company's financial position or results of operations. Pending Adoption of Accounting Standards Defined Benefit Plans - Disclosures In August 2018, the FASB issued new guidance which modifies the disclosure requirements for employers that sponsor defined benefit pension and postretirement plans. The new guidance removes the requirement for disclosing the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit costs in the next year and the sensitivity of postretirement health plans to one-percentage-point changes in medical trend rates. The new guidance is effective for annual periods beginning after December 15, 2020. The Company adopted the new guidance as of January 1, 2021. The new guidance will modify existing disclosures, but will not have an impact on the Company's financial position and results of operations. Income Taxes |
Fair Value Measurement | Current accounting guidance on fair value measurements includes the application of a fair value hierarchy that requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Our financial instruments that are recorded at fair value are categorized into a three-level hierarchy, which is based upon the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets (i.e., Level 1) and the lowest priority to unobservable inputs (i.e., Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the financial instrument. Financial instruments recorded at fair value are categorized in the fair value hierarchy as follows: • Level 1 : Valuations are based on unadjusted quoted prices in active markets for identical financial instruments that we have the ability to access. • Level 2 : Valuations are based on quoted prices for similar financial instruments, other than quoted prices included in Level 1, in markets that are not active or on inputs that are observable either directly or indirectly for the full term of the financial instrument. • Level 3 : Valuations are based on pricing or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement of the financial instrument. Such inputs may reflect management's own assumptions about the assumptions a market participant would use in pricing the financial instrument. We review our fair value hierarchy categorizations on a quarterly basis at which time the classification of certain financial instruments may change if the input observations have changed. Transfers between levels, if any, are recorded as of the beginning of the reporting period. To determine the fair value of the majority of our investments, we utilize prices obtained from independent, nationally recognized pricing services. We obtain one price for each security. When the pricing services cannot provide a determination of fair value for a specific security, we obtain non-binding price quotes from broker-dealers with whom we have had several years of experience and who have demonstrated knowledge of the subject security. We request and utilize one broker quote per security. In order to determine the proper classification in the fair value hierarchy for each security where the price is obtained from an independent pricing service, we obtain and evaluate the vendors' pricing procedures and inputs used to price the security, which include unadjusted quoted market prices for identical securities, such as a New York Stock Exchange closing price, and quoted prices for identical securities in markets that are not active. For fixed maturity securities, an evaluation of interest rates and yield curves observable at commonly quoted intervals, volatility, prepayment speeds, credit risks and default rates may also be performed. We have determined that these processes and inputs result in fair values and classifications consistent with the applicable accounting guidance on fair value measurements. When possible, we use quoted market prices to determine the fair value of fixed maturities, equity securities, trading securities and short-term investments. When quoted market prices do not exist, we base estimates of fair value on market information obtained from independent pricing services and brokers or on valuation techniques that are both unobservable and significant to the overall fair value measurement of the financial instrument. Such inputs may reflect management's own assumptions about the assumptions a market participant would use in pricing the financial instrument. Our valuation techniques are discussed in more detail throughout this section. The mortgage loan portfolio consists entirely of commercial mortgage loans. The fair value of our mortgage loans is determined by modeling performed by our third party fund manager based on the stated principal and coupon payments provided for in the loan agreements. These cash flows are then discounted using an appropriate risk-adjusted discount rate to determine the security's fair value. Our other long-term investments consist primarily of our interests in limited liability partnerships that are recorded on the equity method of accounting. The fair value of the partnerships is obtained from the fund managers, which is based on the fair value of the underlying investments held in the partnerships. In management's opinion, these values represent a reasonable estimate of fair value. We have not adjusted the net asset value provided by the fund managers. For cash and cash equivalents and accrued investment income, carrying value is a reasonable estimate of fair value due to the short-term nature of these financial instruments. |
Earnings Per Share | Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the reporting period. Diluted earnings per share gives effect to all dilutive common shares outstanding during the reporting period. The dilutive shares we consider in our diluted earnings per share calculation relate to our outstanding stock options and restricted stock awards.We determine the dilutive effect of our outstanding stock options using the "treasury stock" method. Under this method, we assume the exercise of all of the outstanding stock options whose exercise price is less than the weighted-average market value of our common stock during the reporting period. This method also assumes that the proceeds from the hypothetical stock option exercises are used to repurchase shares of our common stock at the weighted-average market value of the stock during the reporting period. The net of the assumed stock options exercised and assumed common shares repurchased represents the number of dilutive common shares, which we add to the denominator of the earnings per share calculation. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Components of Deferred Acquisition Costs | The following table is a summary of the components of DAC that are reported in the accompanying Consolidated Financial Statements. Continuing Operations - Property and Casualty Insurance 2020 2019 2018 Recorded asset at beginning of year $ 94,292 $ 92,796 $ 88,102 Underwriting costs deferred 203,054 218,195 210,926 Amortization of deferred policy acquisition costs (210,252) (216,699) (206,232) Recorded asset at end of year $ 87,094 $ 94,292 $ 92,796 Discontinued Operations - Life Insurance Recorded asset at beginning of year $ — $ — $ 71,151 Underwriting costs deferred — — 1,376 Amortization of deferred policy acquisition costs — — (1,895) $ — $ — $ 70,632 Change in "shadow" deferred policy acquisition costs — — 7,274 Sale of discontinued operations — — (77,906) Recorded asset at end of year $ — $ — $ — Total Recorded asset at beginning of year $ 94,292 $ 92,796 $ 159,253 Underwriting costs deferred 203,054 218,195 212,302 Amortization of deferred policy acquisition costs (210,252) (216,699) (208,127) $ 87,094 $ 94,292 $ 163,428 Change in "shadow" deferred policy acquisition costs — — 7,274 Sale of discontinued operations — — (77,906) Recorded asset at end of year $ 87,094 $ 94,292 $ 92,796 |
Schedule of Property and Equipment | The following table is a summary of the components of the property and equipment that are reported in the accompanying Consolidated Financial Statements. 2020 2019 Real estate: Land $ 2,974 $ 2,982 Buildings 85,776 83,360 Furniture and fixtures 6,058 7,253 Computer equipment and software 35,066 23,394 Airplane — — Total property and equipment $ 129,874 $ 116,989 Depreciation is computed primarily by the straight-line method over the following estimated useful lives: Useful Life Computer equipment and software Three years Furniture and fixtures Seven years Leasehold improvements Shorter of the lease term or useful life of the asset Real estate Seven years to thirty-nine years Airplane Five years |
Schedule of Rollforward of Credit Loss Allowance for Reinsurance Receivable | As of December 31, 2020, the Company had a credit loss allowance for reinsurance receivables of $190. Rollforward of Credit Loss Allowance for Reinsurance Receivable As of December 31, 2020 Beginning balance, January 1, 2020 $ 38 Current-period provision for expected credit losses 152 Write-off charged against the allowance, if any — Recoveries of amounts previously written off, if any — Ending balance of the allowance for reinsurance receivable, December 31, 2020 $ 190 |
SUMMARY OF INVESTMENTS (Tables)
SUMMARY OF INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Reconciliation of Amortized Cost to Fair Value | The table that follows is a reconciliation of the amortized cost (cost for equity securities) to fair value of investments in available-for-sale fixed maturity securities, presented on a consolidated basis as of December 31, 2020 and 2019. December 31, 2020 Type of Investment Cost or Amortized Cost Gross Unrealized Appreciation Gross Unrealized Depreciation Fair Value Allowance for Credit Losses Carrying Value AVAILABLE-FOR-SALE Fixed maturities Bonds U.S. Treasury $ 149,481 $ 482 $ 25 $ 149,938 $ — $ 149,938 U.S. government agency 60,502 4,016 — 64,518 — 64,518 States, municipalities and political subdivisions General obligations: Midwest 77,933 4,047 — 81,980 — 81,980 Northeast 29,071 1,379 — 30,450 — 30,450 South 104,522 5,448 — 109,970 — 109,970 West 102,590 7,431 — 110,021 — 110,021 Special revenue: Midwest 115,956 9,142 — 125,098 — 125,098 Northeast 56,317 4,759 — 61,076 — 61,076 South 208,739 17,967 — 226,706 — 226,706 West 129,417 9,982 — 139,399 — 139,399 Foreign bonds 27,799 1,805 2 29,602 — 29,602 Public utilities 76,114 7,388 — 83,502 — 83,502 Corporate bonds Energy 22,441 2,895 — 25,336 — 25,336 Industrials 39,513 3,744 — 43,257 — 43,257 Consumer goods and services 46,521 4,046 — 50,567 — 50,567 Health care 6,678 898 — 7,576 — 7,576 Technology, media and telecommunications 37,270 4,381 15 41,636 — 41,636 Financial services 93,736 7,564 269 101,031 5 101,026 Mortgage-backed securities 20,305 326 54 20,577 — 20,577 Collateralized mortgage obligations Government national mortgage association 81,758 4,439 45 86,152 — 86,152 Federal home loan mortgage corporation 151,362 2,239 758 152,843 — 152,843 Federal national mortgage association 81,952 2,013 683 83,282 — 83,282 Asset-backed securities 314 612 — 926 — 926 Total Available-For-Sale Fixed Maturities $ 1,720,291 $ 107,003 $ 1,851 $ 1,825,443 $ 5 $ 1,825,438 December 31, 2019 Type of Investment Cost or Amortized Cost Gross Unrealized Appreciation Gross Unrealized Depreciation Fair Value AVAILABLE-FOR-SALE Fixed maturities Bonds U.S. Treasury $ 69,300 $ 203 $ 12 $ 69,491 U.S. government agency 97,962 2,344 104 100,202 States, municipalities and political subdivisions General obligations: Midwest 85,607 2,987 — 88,594 Northeast 30,120 1,150 — 31,270 South 111,688 3,515 — 115,203 West 105,569 4,748 — 110,317 Special revenue: Midwest 133,717 6,175 — 139,892 Northeast 58,665 2,878 — 61,543 South 224,214 10,452 — 234,666 West 138,557 6,287 — 144,844 Foreign bonds 4,936 181 — 5,117 Public utilities 60,950 2,701 — 63,651 Corporate bonds Energy 28,695 1,429 — 30,124 Industrials 52,249 1,766 — 54,015 Consumer goods and services 47,131 2,335 — 49,466 Health care 8,998 482 — 9,480 Technology, media and telecommunications 25,931 1,739 — 27,670 Financial services 96,613 3,870 230 100,253 Mortgage-backed securities 6,250 127 21 6,356 Collateralized mortgage obligations Government national mortgage association 78,400 2,053 97 80,356 Federal home loan mortgage corporation 123,572 1,150 220 124,502 Federal national mortgage association 70,322 1,631 108 71,845 Asset-backed securities 314 436 — 750 Total Available-For-Sale Fixed Maturities $ 1,659,760 $ 60,639 $ 792 $ 1,719,607 |
Contractual Maturity of Investments | The amortized cost and fair value of available-for-sale fixed maturity securities at December 31, 2020, by contractual maturity, are shown in the following table. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Asset-backed securities, mortgage-backed securities and collateralized mortgage obligations may be subject to prepayment risk and are therefore not categorized by contractual maturity. Maturities Available-For-Sale December 31, 2020 Amortized Cost Fair Value Due in one year or less $ 32,214 $ 32,467 Due after one year through five years 476,667 502,699 Due after five years through 10 years 400,277 431,271 Due after 10 years 475,442 515,226 Asset-backed securities 314 926 Mortgage-backed securities 20,305 20,577 Collateralized mortgage obligations 315,072 322,277 $ 1,720,291 $ 1,825,443 |
Summary of Net Realized Investment Gains (Losses) | A summary of net realized investment gains (losses) for 2020, 2019 and 2018, is as follows: 2020 2019 2018 Net realized investment gains (losses) from continuing operations Fixed maturities: Available-for-sale $ 1,787 $ 655 $ (254) Allowance for credit losses (5) — — Trading securities Change in fair value (3,314) 1,351 (296) Sales 2,950 1,993 1,226 Equity securities Change in fair value (6,875) 51,231 (21,994) Sales (26,906) 725 1,702 Mortgage loans (4) (26) (46) Real estate (28) (2,150) (517) Total net realized investment gains (losses) from continuing operations $ (32,395) $ 53,779 $ (20,179) Total net realized investment gains (losses) from discontinued operations — — (1,057) Total net realized investment gains (losses) $ (32,395) $ 53,779 $ (21,236) |
Schedule of Proceeds and Gross Realized Gains (Losses) | The proceeds and gross realized gains (losses) on the sale of available-for-sale fixed maturity securities from continuing operations for 2020, 2019 and 2018, are as follows: 2020 2019 2018 Proceeds from sales $ 50,744 $ 41,760 $ 132,250 Gross realized gains 1,400 302 140 Gross realized losses (495) (13) (517) |
Schedule of Net Investment Income | Net investment income for the years ended December 31, 2020, 2019 and 2018, is comprised of the following: Years Ended December 31, 2020 2019 2018 Investment income from continuing operations: Interest on fixed maturities $ 46,478 $ 50,274 $ 51,356 Dividends on equity securities 6,368 7,842 7,731 Income on other long-term investments Investment income 1,890 3,115 8,383 Change in value (1) (9,633) 1,114 (10,116) Interest on mortgage loans 1,949 1,595 412 Interest on short-term investments 107 522 606 Interest on cash and cash equivalents 763 2,681 1,875 Other 205 252 307 Total investment income from continuing operations $ 48,127 $ 67,395 $ 60,554 Less investment expenses 8,457 6,981 7,660 Net investment income from continuing operations $ 39,670 $ 60,414 $ 52,894 Net investment income from discontinued operations $ — $ — $ 12,663 Net investment income $ 39,670 $ 60,414 $ 65,557 (1) Represents the change in value of our interests in limited liability partnerships that are recorded on the equity method of accounting. |
Schedule of Rollforward of Allowance for Credit Losses for Available-for-Sale Fixed Maturity Securities | The following table contains a rollforward of the allowance for credit losses for available-for-sale fixed maturity securities at December 31, 2020: Rollforward of allowance for credit losses for available-for-sale fixed maturity securities: As of December 31, 2020 Beginning balance, January 1, 2020 $ — Additions to the allowance for credit losses for which credit losses were not previously recorded 5 Reductions for securities sold during the period (realized) — Writeoffs charged against the allowance — Recoveries of amounts previously written off — Ending balance, December 31, 2020 $ 5 |
Summary of Changes in Net Unrealized Investment Appreciation | A summary of changes in net unrealized investment appreciation for 2020, 2019 and 2018, is as follows for continuing operations and discontinued operations: 2020 2019 2018 Change in net unrealized investment appreciation Available-for-sale fixed maturities $ 45,305 $ 71,648 $ (57,475) Deferred policy acquisition costs — — 7,274 Income tax effect (9,514) (15,046) 10,543 Cumulative change in accounting principles — — (191,244) Net unrealized investment depreciation of discontinued operations, sold — — 6,714 Total change in net unrealized investment appreciation (depreciation), net of tax $ 35,791 $ 56,602 $ (224,188) |
Summary of Investments in Unrealized Loss Position | The following tables summarize our fixed maturity securities that were in an unrealized loss position reported on a consolidated basis at December 31, 2020 and 2019. The securities are presented by the length of time they have been continuously in an unrealized loss position. Non-credit related unrealized losses are recognized as a component of other comprehensive income and represent other market movements that are not credit related, for example interest rate changes. We have no intent to sell, and it is more likely than not that we will not be required to sell, these securities until the fair value recovers to at least equal our cost basis or the securities mature. December 31, 2020 Less than 12 months 12 months or longer Total Type of Investment Number Fair Gross Unrealized Number Fair Gross Unrealized Depreciation Fair Gross Unrealized Depreciation AVAILABLE-FOR-SALE Fixed maturities Bonds U.S. Treasury 5 $ 86,371 $ 25 — $ — $ — $ 86,371 $ 25 Foreign bonds 1 2,000 2 — — — 2,000 2 Corporate bonds Technology, media and telecommunications 1 2,020 15 — — — 2,020 15 Financial services 1 2,995 5 1 3,000 7 5,995 12 Mortgage-backed securities 2 8,099 53 5 118 1 8,217 54 Collateralized mortgage obligations Government national mortgage association 2 12,394 45 1 24 — 12,418 45 Federal home loan mortgage corporation 24 97,691 758 1 26 — 97,717 758 Federal national mortgage association 10 44,677 683 — — — 44,677 683 Total Available-for-Sale Fixed Maturities 46 $ 256,247 $ 1,586 8 $ 3,168 $ 8 $ 259,415 $ 1,594 The unrealized losses on our investments in available-for-sale fixed maturities were the result of interest rate movements. We have no intent to sell, and it is more likely than not that we will not be required to sell, these securities until the fair value recovers to at least equal our cost basis or the securities mature. December 31, 2019 Less than 12 months 12 months or longer Total Type of Investment Number Fair Gross Unrealized Depreciation Number Fair Gross Unrealized Depreciation Fair Gross Unrealized Depreciation AVAILABLE-FOR-SALE Fixed maturities Bonds U.S. Treasury — $ — $ — 2 $ 4,733 $ 12 $ 4,733 $ 12 U.S. government agency 3 13,846 104 — — — 13,846 104 Corporate bonds - financial services 3 10,906 142 1 4,913 88 15,819 230 Mortgage-backed securities — — — 13 1,585 21 1,585 21 Collateralized mortgage obligations Government national mortgage association 2 8,444 38 5 3,053 59 11,497 97 Federal home loan mortgage corporation 12 50,829 183 3 4,844 37 55,673 220 Federal national mortgage association 4 23,515 90 3 1,102 18 24,617 108 Total Available-for-Sale Fixed Maturities 24 $ 107,540 $ 557 27 $ 20,230 $ 235 $ 127,770 $ 792 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Carrying Value and Estimated Fair Value of Financial Instruments | A summary of the carrying value and estimated fair value of our financial instruments from at December 31, 2020 and 2019 is as follows: December 31, 2020 December 31, 2019 Fair Value Carrying Value Fair Value Carrying Value Assets Investments Fixed maturities: Available-for-sale securities $ 1,825,443 $ 1,825,438 $ 1,719,607 $ 1,719,607 Trading securities — — 15,256 15,256 Equity securities 206,685 206,685 299,203 299,203 Mortgage loans 48,932 47,614 43,992 42,448 Other long-term investments 69,305 69,305 78,410 78,410 Short-term investments 175 175 175 175 Cash and cash equivalents 87,948 87,948 120,722 120,722 Corporate-owned life insurance 8,557 8,557 6,777 6,777 Liabilities Long term debt 50,000 50,000 — — |
Financial Instruments Measured at Fair Value on Recurring Basis | The following tables present the categorization for our financial instruments measured at fair value on a recurring basis. The tables include financial instruments at December 31, 2020 and 2019: Fair Value Measurements Description December 31, 2020 Level 1 Level 2 Level 3 AVAILABLE-FOR-SALE Fixed maturities Bonds U.S. Treasury $ 149,938 $ — $ 149,938 $ — U.S. government agency 64,518 — 64,518 — States, municipalities and political subdivisions General obligations Midwest 81,980 — 81,980 — Northeast 30,450 — 30,450 — South 109,970 — 109,970 — West 110,021 — 110,021 — Special revenue Midwest 125,098 — 125,098 — Northeast 61,076 — 61,076 — South 226,706 — 226,706 — West 139,399 — 139,399 — Foreign bonds 29,602 — 29,602 — Public utilities 83,502 — 83,502 — Corporate bonds Energy 25,336 — 25,336 — Industrials 43,257 — 43,257 — Consumer goods and services 50,567 — 50,567 — Health care 7,576 — 7,576 — Technology, media and telecommunications 41,636 — 41,636 — Financial services 101,031 — 100,781 250 Mortgage-backed securities 20,577 — 20,577 — Collateralized mortgage obligations Government national mortgage association 86,152 — 86,152 — Federal home loan mortgage corporation 152,843 — 152,843 — Federal national mortgage association 83,282 — 83,282 — Asset-backed securities 926 — 926 Total Available-For-Sale Fixed Maturities $ 1,825,443 $ — $ 1,824,267 $ 1,176 Equity securities Public utilities 16,320 16,320 — — Energy 9,918 9,918 — — Industrials 36,556 36,556 — — Consumer goods and services 32,061 32,061 — — Health care 24,549 24,549 — — Technology, Media & Telecommunications 17,109 17,109 — — Financial Services 69,577 69,577 — — Nonredeemable preferred stocks 595 — 595 Total Equity Securities $ 206,685 $ 206,090 $ — $ 595 Short-Term Investments $ 175 $ 175 $ — $ — Money Market Accounts $ 24,790 $ 24,790 $ — $ — Corporate-Owned Life Insurance $ 8,557 $ 8,557 $ — Total Assets Measured at Fair Value $ 2,065,650 $ 239,612 $ 1,824,267 $ 1,771 Fair Value Measurements Description December 31, 2019 Level 1 Level 2 Level 3 AVAILABLE-FOR-SALE Fixed maturities Bonds U.S. Treasury $ 69,491 $ — $ 69,491 $ — U.S. government agency 100,202 — 100,202 — States, municipalities and political subdivisions General obligations Midwest 88,594 — 88,594 — Northeast 31,270 — 31,270 — South 115,203 — 115,203 — West 110,317 — 110,317 — Special revenue Midwest 139,892 — 139,892 — Northeast 61,543 — 61,543 — South 234,666 — 234,666 — West 144,844 — 144,844 — Foreign bonds 5,117 — 5,117 — Public utilities 63,651 — 63,651 — Corporate bonds Energy 30,124 — 30,124 — Industrials 54,015 — 54,015 — Consumer goods and services 49,466 — 49,466 — Health care 9,480 — 9,480 — Technology, media and telecommunications 27,670 — 27,670 — Financial services 100,253 — 100,003 250 Mortgage-backed securities 6,356 — 6,356 — Collateralized mortgage obligations Government national mortgage association 80,356 — 80,356 — Federal home loan mortgage corporation 124,502 — 124,502 — Federal national mortgage association 71,845 — 71,845 — Asset-backed securities 750 — — 750 Total Available-For-Sale Fixed Maturities $ 1,719,607 $ — $ 1,718,607 $ 1,000 TRADING Fixed maturities Bonds Corporate bonds Consumer goods and services $ 2,276 $ — $ 2,276 $ — Health care 4,701 — 4,701 — Technology, media and telecommunications 1,732 — 1,732 — Financial services 2,460 — 2,460 — Redeemable preferred stocks 4,087 4,087 — — Total Trading Securities $ 15,256 $ 4,087 $ 11,169 $ — Equity securities Public utilities $ 16,295 $ 16,295 $ — $ — Energy 14,639 14,639 — — Industrials 57,330 57,330 — — Consumer goods and services 29,935 29,935 — — Health care 27,285 27,285 — — Financial Services 19,265 19,265 — — Technology, media and telecommunications 127,780 127,780 — — Nonredeemable preferred stocks 6,674 6,079 — 595 Total Equity Securities $ 299,203 $ 298,608 $ — $ 595 Short-Term Investments $ 175 $ 175 $ — $ — Money Market Accounts $ 9,334 $ 9,334 $ — $ — Corporate-Owned Life Insurance $ 6,777 $ — $ 6,777 $ — Total Assets Measured at Fair Value $ 2,050,352 $ 312,204 $ 1,736,553 $ 1,595 |
Summary of Quantitative Information About Level 3 Fair Value Measurements | The following table provides a quantitative information about our Level 3 securities at December 31, 2020. Quantitative Information about Level 3 Fair Value Measurements Fair Value at Valuation Technique(s) Unobservable inputs Range of weighted average significant unobservable inputs December 31, 2020 Corporate bonds - financial services $ 250 Fair value equals cost NA NA Fixed Maturities asset-backed securities 926 Discounted cash flow Probability of default 4% - 6% Nonredeemable preferred stocks 595 Discounted cash flow Multiplier 3x - 4x |
Summary of Changes in Fair Value of Level 3 Securities | The following table provides a summary of the changes in fair value of our Level 3 securities for 2020: Corporate bonds Asset-backed securities Equities Total Balance at January 1, 2020 $ 250 $ 750 $ 595 $ 1,595 Unrealized gains (1) — 176 — 176 Balance at December 31, 2020 $ 250 $ 926 $ 595 $ 1,771 (1) Unrealized gains are recorded as a component of comprehensive income. The following table provides a summary of the changes in fair value of our Level 3 securities for 2019: Corporate bonds Asset-backed securities Equities Total Balance at January 1, 2019 $ 250 $ 666 $ 595 $ 1,511 Unrealized gains (losses) (1) — 84 — 84 Purchases 100 — — 100 Disposals (100) — — (100) Balance at December 31, 2019 $ 250 $ 750 $ 595 $ 1,595 (1) Unrealized gains (losses) are recorded as a component of comprehensive income. |
Schedule of Commercial Mortgage Loans | The following tables present the carrying value of our commercial mortgage loans and additional information at December 31, 2020 and 2019: Commercial Mortgage Loans Loan-to-value December 31, 2020 December 31, 2019 Less than 65% $ 30,361 34,024 65%-75% 17,329 8,496 Total amortized cost $ 47,690 $ 42,520 Valuation allowance (76) (72) Total mortgage loans $ 47,614 $ 42,448 Mortgage Loans by Region December 31, 2020 December 31, 2019 Carrying Value Percent of Total Carrying Value Percent of Total East North Central $ 3,245 6.8 % $ 3,245 7.6 % Southern Atlantic 9,752 20.5 7,026 16.5 East South Central 8,197 17.2 8,358 19.7 New England 6,588 13.8 6,588 15.5 Middle Atlantic 14,936 31.2 15,076 35.5 Mountain 2,227 4.7 2,227 5.2 Other 2,745 5.8 — — Total mortgage loans at amortized cost $ 47,690 100.0 % $ 42,520 100.0 % Mortgage Loans by Property Type December 31, 2020 December 31, 2019 Carrying Value Percent of Total Carrying Value Percent of Total Commercial Multifamily $ 17,038 35.7 % $ 11,741 27.6 % Office 11,861 24.9 11,848 27.9 Industrial 10,124 21.2 10,124 23.8 Retail 2,227 4.7 2,227 5.2 Mixed use/Other 6,440 13.5 6,580 15.5 Total mortgage loans at amortized cost $ 47,690 100.0 % $ 42,520 100.0 % |
Summary of Amortized Cost Basis by Year of Origination and Credit Quality Indicator | Amortized Cost Basis by Year of Origination and Credit Quality Indicator 2020 2019 2018 Total Commercial mortgage loans: Risk Rating: 1-2 internal grade $ 5,537 $ 8,393 $ 18,676 $ 32,606 3-4 internal grade — 8,496 6,588 15,084 5 internal grade — — — — 6 internal grade — — — — 7 internal grade — — — — Total commercial mortgage loans $ 5,537 $ 16,889 $ 25,264 $ 47,690 Current-period write-offs — — — — Current-period recoveries — — — — Current-period net write-offs $ — $ — $ — $ — |
Summary of Rollforward of Allowance for Mortgage Loan Losses | As of December 31, 2020, the Company had an allowance for mortgage loan losses of $76, summarized in the following rollforward: Rollforward of allowance for mortgage loan losses: As of December 31, 2020 Beginning balance, January 1, 2020 $ 72 Current-period provision for expected credit losses 4 Write-off charged against the allowance, if any — Recoveries of amounts previously written off, if any — Ending balance of the allowance for mortgage loan losses, December 31, 2020 $ 76 |
REINSURANCE (Tables)
REINSURANCE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Reinsurance Disclosures [Abstract] | |
Ceded and Assumed Reinsurance | Premiums and losses and loss settlement expenses related to our ceded and assumed business are as follows: Years Ended December 31, 2020 2019 2018 Ceded Business Ceded premiums written $ 88,339 $ 74,511 $ 66,800 Ceded premiums earned 84,924 72,023 63,487 Loss and loss settlement expenses ceded 185,653 28,447 22,317 Assumed Business Assumed premiums written $ 34,371 $ 27,869 $ 16,761 Assumed premiums earned 33,679 25,412 16,957 Loss and loss settlement expenses assumed 29,141 14,813 (3,954) Premiums and losses and loss settlement expenses related to our ceded business are as follows: Years Ended December 31, 2020 2019 2018 Ceded Business Ceded insurance in-force $ — $ — $ — Ceded premiums earned — — 716 Loss and loss settlement expenses ceded — — 1,473 |
Reinsurance Programs and Retentions | For 2020, there was an all lines annual aggregate excess of loss program with variable retention of 6.37 percent of gross net earned premium with a minimum retention of $58.5 million and a maximum of $71.5 million. Our all lines aggregate recovery is also limited to $30.0 million and 75.0 percent of the program was placed. For 2020, the Company recovered the maximum of $22.5 million from the all lines annual aggregate excess of loss program. For 2019, there was an all lines annual aggregate excess of loss program with a variable retention of 6.66 percent of gross net earned premium with a minimum retention of $58.5 million and a maximum of $71.5 million. Our all lines aggregate recovery is also limited to a maximum of $30.0 million. For 2018, there was an all lines annual aggregate excess of loss program with a variable retention of 6.78 percent of gross net earned premium with a minimum retention of $58.5 million and a maximum of $71.5 million. Our all lines aggregate recovery is also limited to a maximum of $30.0 million. For 2019 and 2018, the Company did not have any recoveries from the all lines annual aggregate loss program. 2020 Reinsurance Programs Type of Reinsurance Stated Retention Limits Coverage Casualty excess of loss $ 2,500 $ 60,000 100 % of $ 57,500 Property excess of loss 2,500 25,000 100 % of $ 22,500 Surety excess of loss 1,500 45,000 100 % of $ 43,500 Property catastrophe, excess 20,000 250,000 100 % of $ 230,000 Boiler and machinery N/A 50,000 100 % of $ 50,000 2019 Reinsurance Programs Type of Reinsurance Stated Retention Limits Coverage Casualty excess of loss $ 2,500 $ 60,000 100 % of $ 57,500 Property excess of loss 2,500 25,000 100 % of $ 22,500 Surety excess of loss 1,500 45,000 100 % of $ 43,500 Property catastrophe, excess 20,000 250,000 100 % of $ 230,000 Boiler and machinery N/A 50,000 100 % of $ 50,000 2018 Reinsurance Programs Type of Reinsurance Stated Retention Limits Coverage Casualty excess of loss $ 2,500 $ 60,000 100 % of $ 57,500 Property excess of loss 2,500 25,000 100 % of $ 22,500 Surety excess of loss 1,500 45,000 100 % of $ 43,500 Property catastrophe, excess 20,000 250,000 100 % of $ 230,000 Boiler and machinery N/A 50,000 100 % of $ 50,000 |
RESERVES FOR LOSSES AND LOSS _2
RESERVES FOR LOSSES AND LOSS SETTLEMENT EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Insurance Loss Reserves [Abstract] | |
Schedule of Property and Casualty Losses Settlement Expense | The following table provides an analysis of changes in our property and casualty losses and loss settlement expense reserves for 2020, 2019 and 2018 (net of reinsurance amounts): Years Ended December 31, 2020 2019 2018 Gross liability for losses and loss settlement expenses $ 1,421,754 $ 1,312,483 $ 1,224,183 Ceded losses and loss settlement expenses (68,536) (57,094) (59,871) Net liability for losses and loss settlement expenses $ 1,353,218 $ 1,255,389 $ 1,164,312 Losses and loss settlement expenses incurred Current year $ 887,119 $ 835,507 $ 785,778 Prior years (17,652) (5,335) (54,167) Total incurred $ 869,467 $ 830,172 $ 731,611 Losses and loss settlement expense payments Current year $ 354,635 $ 333,975 $ 306,032 Prior years 421,762 398,368 334,502 Total paid $ 776,397 $ 732,343 $ 640,534 Net liability for losses and loss settlement expenses $ 1,446,288 $ 1,353,218 $ 1,255,389 Ceded loss and loss settlement expenses 131,843 68,536 57,094 Gross liability for losses and loss settlement expenses $ 1,578,131 $ 1,421,754 $ 1,312,483 |
Incurred and Paid Losses and Loss Settlement Expense Development | The following tables provide information about incurred and paid losses and loss settlement expense development as of December 31, 2020, net of reinsurance, as well as cumulative development, cumulative claim frequency and IBNR liabilities. Claim data for Mercer Insurance Group, Inc., which was acquired on March 28, 2011, is presented retrospectively. The cumulative number of reported claims, for calendar year 2020, 2019 and 2018, are counted for all lines of business on a per claimant per coverage basis and a single event may result in multiple claims due to the involvement of multiple individual claimants and / or multiple independent coverages. Claim counts for calendar years 2016 and prior are counted on a per claim and per coverage basis. Claim counts include open claims, claims that have been paid and closed, and reported claims that have been closed without the need for any payment. Line of business: Commercial other liability Incurred losses and allocated loss settlement expenses, net of reinsurance As of December 31, 2020 For the years ended December 31, Total of incurred but not reported liabilities plus expected development on reported claims Cumulative development Cumulative number of reported claims Accident Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (Unaudited) 2011 $ 81,522 $ 64,738 $ 88,371 $ 88,200 $ 79,591 $ 80,801 $ 81,463 $ 80,338 $ 81,694 $ 81,394 $ 11,202 (128) 5,634 2012 100,389 96,158 94,195 91,980 92,537 91,346 89,731 91,571 89,900 12,862 (10,489) 5,841 2013 104,982 91,460 90,502 86,119 85,399 88,816 86,082 85,999 3,498 (18,983) 6,406 2014 118,928 117,958 106,486 97,809 102,487 105,507 107,417 4,907 (11,511) 6,570 2015 137,386 125,307 120,005 127,091 129,945 131,325 10,405 (6,061) 7,732 2016 139,144 130,041 136,275 142,397 140,784 15,698 1,640 8,882 2017 139,602 139,032 152,547 156,369 24,426 16,767 8,883 2018 163,059 172,894 176,496 34,486 13,437 8,590 2019 149,173 169,344 46,518 20,171 7,537 2020 171,013 83,792 4,478 Total $ 1,310,041 Line of business: Commercial other liability Cumulative paid losses and allocated loss settlement expenses, net of reinsurance For the years ended December 31, Accident Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (Unaudited) 2011 $ 6,236 $ 13,670 $ 26,260 $ 40,595 $ 50,146 $ 56,150 $ 62,165 $ 64,541 $ 66,500 $ 68,052 2012 6,875 24,620 39,948 55,316 64,574 69,800 71,773 73,819 74,644 2013 9,835 25,228 39,953 54,559 65,773 72,115 75,961 78,448 2014 10,207 29,679 50,211 70,363 83,109 93,060 96,509 2015 11,185 27,182 53,901 74,292 96,339 104,472 2016 13,782 38,184 63,526 88,885 102,757 2017 17,716 43,172 70,500 91,984 2018 16,200 44,772 79,168 2019 18,221 46,986 2020 17,011 Total $ 760,031 All outstanding liabilities for unpaid losses and loss settlement expenses before 2011, net of reinsurance 35,801 Liabilities for unpaid losses and loss settlement expenses, net of reinsurance $ 585,811 Line of business: Commercial fire and allied Incurred losses and allocated loss settlement expenses, net of reinsurance As of December 31, 2020 For the years ended December 31, Total of incurred but not reported liabilities plus expected development on reported claims Cumulative development Cumulative number of reported claims Accident Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (Unaudited) 2011 $ 148,220 $ 142,330 $ 117,082 $ 120,492 $ 119,820 $ 120,219 $ 121,434 $ 121,319 $ 121,749 $ 121,982 $ 285 (26,238) 16,079 2012 138,602 110,448 108,774 108,047 107,958 108,623 109,687 109,480 110,245 634 (28,357) 6,466 2013 91,521 88,550 91,498 92,212 93,826 93,858 92,988 92,855 61 1,334 6,662 2014 126,216 131,198 128,762 128,185 128,503 126,811 127,068 108 852 7,935 2015 103,177 108,293 110,633 108,235 105,218 104,646 144 1,469 7,579 2016 147,473 144,208 143,721 143,724 143,108 667 (4,365) 9,849 2017 155,139 160,240 160,946 161,693 1,536 6,554 13,445 2018 143,280 146,951 146,378 2,610 3,098 10,683 2019 164,030 155,482 4,271 (8,548) 10,992 2020 207,207 29,773 13,368 Total $ 1,370,664 Line of business: Commercial fire and allied Cumulative paid losses and allocated loss settlement expenses, net of reinsurance For the years ended December 31, Accident Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (Unaudited) 2011 $ 85,585 $ 104,800 $ 109,429 $ 112,497 $ 116,614 $ 118,183 $ 120,178 $ 120,731 $ 121,063 $ 121,157 2012 71,008 94,380 100,078 103,197 105,250 106,521 106,740 107,992 108,123 2013 59,331 78,226 82,853 86,115 89,200 91,493 92,012 92,472 2014 84,456 113,663 116,750 122,370 123,697 125,745 126,307 2015 67,217 90,454 95,515 101,367 104,115 103,975 2016 92,895 125,962 132,429 137,909 139,353 2017 99,484 137,058 145,900 152,219 2018 92,770 123,559 133,703 2019 100,980 136,084 2020 128,704 Total $ 1,242,097 All outstanding liabilities for unpaid losses and loss settlement expenses before 2011, net of reinsurance 723 Liabilities for unpaid losses and loss settlement expenses, net of reinsurance $ 129,290 Line of business: Commercial automobile Incurred losses and allocated loss settlement expenses, net of reinsurance As of December 31, 2020 For the years ended December 31, Total of incurred but not reported liabilities plus expected development on reported claims Cumulative development Cumulative number of reported claims Accident Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (Unaudited) 2011 $ 84,887 $ 87,299 $ 90,750 $ 92,519 $ 92,379 $ 91,336 $ 90,766 $ 90,838 $ 90,643 $ 90,972 $ 32 6,085 15,262 2012 100,039 90,848 94,755 95,321 96,594 96,389 96,305 96,059 96,176 — (3,863) 14,365 2013 104,356 98,037 102,943 103,726 104,980 105,248 104,886 106,140 356 1,784 15,528 2014 107,723 106,076 113,720 118,869 120,385 121,077 120,599 457 12,876 17,320 2015 125,506 129,816 132,206 138,987 137,395 137,335 500 11,829 20,079 2016 174,018 175,357 174,337 175,657 173,823 1,449 (195) 27,288 2017 227,919 224,553 235,110 233,159 5,553 5,240 32,838 2018 236,629 245,173 253,045 14,134 16,416 34,380 2019 279,229 291,139 38,451 11,910 34,393 2020 243,360 71,185 22,331 Total $ 1,745,748 Line of business: Commercial automobile Cumulative paid losses and allocated loss settlement expenses, net of reinsurance For the years ended December 31, Accident Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (Unaudited) 2011 $ 34,332 $ 50,931 $ 65,021 $ 79,383 $ 85,348 $ 87,475 $ 88,609 $ 89,459 $ 90,515 $ 90,677 2012 39,247 57,201 71,469 82,944 90,292 93,179 94,747 94,983 96,176 2013 43,592 67,630 79,663 90,780 96,375 100,058 101,580 103,037 2014 45,704 68,033 87,590 99,922 109,682 113,751 116,843 2015 50,782 78,225 99,201 118,395 129,317 134,100 2016 66,013 103,528 128,157 148,224 164,341 2017 81,311 126,644 166,170 197,893 2018 81,572 138,092 187,405 2019 91,919 153,244 2020 67,660 Total $ 1,311,376 All outstanding liabilities for unpaid losses and loss settlement expenses before 2011, net of reinsurance (80) Liabilities for unpaid losses and loss settlement expenses, net of reinsurance $ 434,293 Line of business: Workers' compensation Incurred losses and allocated loss settlement expenses, net of reinsurance As of December 31, 2020 For the years ended December 31, Total of incurred but not reported liabilities plus expected development on reported claims Cumulative development Cumulative number of reported claims Accident Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (Unaudited) 2011 $ 39,967 $ 38,481 $ 35,352 $ 34,309 $ 33,585 $ 33,314 $ 33,352 $ 32,707 $ 32,384 $ 31,621 $ 159 (8,346) 3,965 2012 48,848 46,279 42,158 38,423 38,553 39,015 39,182 39,063 38,290 229 (10,558) 3,992 2013 64,048 62,579 56,369 54,584 52,761 51,753 50,984 50,349 307 (13,699) 4,255 2014 64,051 60,729 58,284 56,630 54,636 53,023 52,889 699 (11,162) 4,801 2015 53,788 55,578 51,003 46,682 46,019 44,706 578 (9,082) 5,666 2016 70,419 66,575 61,648 55,168 53,964 815 (16,455) 7,927 2017 76,184 69,528 55,982 51,874 1,182 (24,310) 8,173 2018 71,972 67,883 59,192 1,802 (12,780) 7,947 2019 52,136 49,189 2,335 (2,947) 7,113 2020 45,365 4,289 3,909 Total $ 477,439 Line of business: Workers' compensation Cumulative paid losses and allocated loss settlement expenses, net of reinsurance For the years ended December 31, Accident Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (Unaudited) 2011 $ 10,322 $ 21,678 $ 26,033 $ 27,497 $ 28,247 $ 29,022 $ 29,453 $ 29,700 $ 29,890 $ 30,573 2012 11,802 23,023 28,397 30,933 33,063 34,330 35,388 36,060 36,520 2013 14,136 30,209 38,023 42,941 45,078 47,071 47,572 48,093 2014 13,965 30,289 38,441 42,964 45,193 45,825 46,299 2015 12,063 27,304 35,229 38,424 39,305 40,034 2016 14,413 32,345 40,680 45,743 47,082 2017 14,647 31,309 38,083 41,672 2018 16,949 35,369 43,189 2019 13,582 29,668 2020 17,603 Total $ 380,733 All outstanding liabilities for unpaid losses and loss settlement expenses before 2011, net of reinsurance 19,345 Liabilities for unpaid losses and loss settlement expenses, net of reinsurance $ 116,050 Line of business: Personal Incurred losses and allocated loss settlement expenses, net of reinsurance As of December 31, 2020 For the years ended December 31, Total of incurred but not reported liabilities plus expected development on reported claims Cumulative development Cumulative number of reported claims Accident Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (Unaudited) 2011 $ 50,014 $ 48,534 $ 47,090 $ 47,035 $ 46,968 $ 47,013 $ 46,733 $ 46,761 $ 46,752 $ 46,751 $ — (3,263) 14,848 2012 47,924 46,199 46,403 46,150 44,715 44,352 44,165 44,158 44,160 1 (3,764) 10,790 2013 39,232 38,525 37,262 37,086 36,729 36,661 36,486 36,467 1 (2,765) 9,250 2014 53,910 52,661 52,944 52,782 52,615 52,702 52,810 12 (1,100) 10,959 2015 42,848 41,088 40,336 40,368 40,220 40,194 22 (2,654) 9,548 2016 48,072 45,840 45,379 45,961 45,113 58 (2,959) 11,896 2017 60,330 59,342 58,695 58,544 119 (1,786) 14,691 2018 51,639 51,721 52,715 365 1,076 13,658 2019 59,547 58,378 581 (1,169) 13,466 2020 81,206 6,588 15,585 Total $ 516,338 Line of business: Personal Cumulative paid losses and allocated loss settlement expenses, net of reinsurance For the years ended December 31, Accident Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (Unaudited) 2011 $ 36,489 $ 43,801 $ 45,306 $ 45,949 $ 46,487 $ 46,573 $ 46,575 $ 46,650 $ 46,752 $ 46,751 2012 30,415 41,979 43,375 44,448 43,569 44,139 44,158 44,158 44,159 2013 25,505 32,788 34,297 35,306 36,155 36,323 36,397 36,466 2014 37,055 47,912 49,710 51,837 52,018 52,543 52,519 2015 29,551 37,431 39,027 39,428 39,865 40,029 2016 32,999 40,910 42,660 44,046 44,618 2017 42,135 53,111 55,982 57,169 2018 37,410 47,433 49,464 2019 40,544 52,390 2020 54,181 Total $ 477,746 All outstanding liabilities for unpaid losses and loss settlement expenses before 2011, net of reinsurance 620 Liabilities for unpaid losses and loss settlement expenses, net of reinsurance $ 39,210 |
Unpaid Losses and Loss Settlement Expenses Liability | The reconciliation of the net incurred and loss development tables to the liability for unpaid losses and loss settlement expenses in the consolidated statement of financial position is as follows. December 31, 2020 Net outstanding liabilities for unpaid losses and allocated loss settlement expenses: Commercial other liability $ 585,811 Commercial fire and allied 129,290 Commercial automobile 434,293 Commercial workers' compensation 116,050 Personal 39,210 All other lines 43,045 Net outstanding liabilities for unpaid losses and allocated loss settlement expenses 1,347,699 Net outstanding liabilities for unpaid unallocated loss settlement expenses 97,379 Fair value adjustment (purchase accounting adjustment for Mercer acquisition) 1,210 Liabilities for unpaid losses and loss settlement expenses, net of reinsurance 1,446,288 Reinsurance recoverable on unpaid losses and allocated loss settlement expenses: Commercial other liability 29,497 Commercial fire and allied 42,481 Commercial automobile 3,334 Commercial workers' compensation 47,130 Personal 8,867 All other lines 1,692 Reinsurance recoverable on unpaid losses and allocated loss settlement expenses 133,001 Reinsurance fair value amortization (purchase accounting adjustment for Mercer acquisition) (1,158) Total reinsurance recoverable on unpaid losses and loss settlement expenses 131,843 Total gross liability for unpaid losses and loss settlement expenses $ 1,578,131 |
Average Historical Claims Duration | The following is supplementary information about average historical claims duration as of December 31, 2020. Average annual percentage payout of incurred claims by age, net of reinsurance Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 (Unaudited) Commercial other liability 9.6 % 16.0 % 18.0 % 16.8 % 12.3 % 7.2 % 4.3 % 2.7 % 1.7 % 1.9 % Commercial fire and allied 64.6 % 21.4 % 4.8 % 3.8 % 2.2 % 1.3 % 0.7 % 0.7 % 0.2 % 0.1 % Commercial automobile 35.9 % 20.3 % 15.5 % 12.5 % 7.5 % 3.1 % 1.7 % 0.9 % 1.2 % 0.2 % Commercial workers' compensation 29.5 % 32.4 % 14.8 % 7.6 % 3.5 % 2.5 % 1.5 % 1.2 % 0.9 % 2.2 % Personal 71.3 % 19.7 % 3.8 % 2.4 % 0.7 % 0.7 % 0.1 % 0.1 % 0.1 % — % |
STATUTORY REPORTING, CAPITAL _2
STATUTORY REPORTING, CAPITAL REQUIREMENTS AND DIVIDENDS AND RETAINED EARNINGS RESTRICTIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Statutory Insurance Financial Information [Abstract] | |
Schedule of Statutory Capital and Surplus | Statutory capital and surplus in regards to policyholders at December 31, 2020, 2019 and 2018 and statutory net income (loss) for the years then ended are as follows: Statutory Capital and Surplus Statutory Net Income (Loss) 2020 Property and casualty business $ 671,599 $ (17,705) 2019 Property and casualty business $ 707,571 $ (22,393) 2018 Property and casualty business $ 774,257 $ 219,065 Life, accident and health business (1) — 3,548 (1) The 2018 Life, accident and health business only includes results prior to the closing of the sale of United Life Insurance Company, which closed on March 30, 2018. Prior to the closing of the sale, United Fire & Casualty Company owned United Life Insurance Company, accordingly, the property and casualty statutory capital and surplus includes life, accident and health statutory capital and surplus, and therefore represents our total consolidated statutory capital and surplus. |
FEDERAL INCOME TAX (Tables)
FEDERAL INCOME TAX (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Federal Income Tax Expense (Benefit) | Federal income tax expense (benefit) from both continuing and discontinued operations is composed of the following: Years Ended December 31, 2020 2019 2018 Current $ (46,861) $ (7,843) $ 18,493 Deferred (9,948) 9,902 (21,791) Total $ (56,809) $ 2,059 $ (3,298) |
Income Tax Expense Reconciliation | A reconciliation of income tax expense (benefit) computed at the applicable federal tax rate of 21.0 percent in 2020, 2019 and 2018 to the amount recorded in the accompanying Consolidated Statements of Income and Comprehensive Income is as follows: Years Ended December 31, 2020 2019 2018 Computed expected income tax expense (benefit) $ (35,598) $ 3,544 $ 5,114 The CARES Act (18,562) — — Tax-exempt municipal bond interest income (3,669) (3,961) (4,235) Nontaxable dividend income (517) (594) (591) Goodwill impairment 3,169 — — Valuation allowance reduction — — (329) Compensation 695 1,638 (497) Reinsurance — 998 — Research and development credit (2,045) — — Other, net (282) 434 (2,760) Consolidated federal income tax expense (benefit) $ (56,809) $ 2,059 $ (3,298) Reconciliation of consolidated federal income tax expense (benefit) from: Continuing operations $ (56,809) $ 2,059 $ (11,405) Gain on sale of discontinued operations — — 7,544 Discontinued operations — — 563 Consolidated federal income tax expense (benefit) $ (56,809) $ 2,059 $ (3,298) |
Components of Net Deferred Tax Liability | The significant components of our net deferred tax liability at December 31, 2020 and 2019 are as follows: December 31, 2020 2019 Deferred tax liabilities Net unrealized appreciation on investment securities: Equity securities $ 33,096 $ 48,652 All other securities 22,082 12,568 Deferred policy acquisition costs 18,289 19,801 Investments in partnerships 964 2,156 Prepaid pension cost 4,553 4,441 Net bond discount accretion 383 357 Depreciation 4,187 1,908 Revaluation of investment basis (1) 325 377 Identifiable intangible assets (1) 1,391 1,540 Capitalized Software 4,891 — Other 1,568 1,416 Gross deferred tax liability 91,729 $ 93,216 Deferred tax assets Financial statement reserves in excess of income tax reserves $ 23,851 $ 20,845 Unearned premium adjustment 18,979 20,816 Net operating loss carryforwards — 1,708 Underfunded benefit plan obligation 4,295 9,072 Post-retirement benefits other than pensions 9,533 10,785 Other-than-temporary impairment of investments 1,974 2,094 Compensation expense related to stock options 2,307 2,394 Nonqualified deferred compensation 2,066 1,623 Other 3,795 3,293 Deferred tax asset $ 66,800 $ 72,630 Net deferred tax liability $ 24,929 $ 20,586 (1) Related to our acquisition of Mercer Insurance Group, Inc. |
EMPLOYEE BENEFITS (Tables)
EMPLOYEE BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Summary of Actual and Target Asset Allocation of Plan Assets | The following is a summary of the pension plan's actual and target asset allocations at December 31, 2020 and 2019 by asset category: Target Pension Plan Assets 2020 % of Total 2019 % of Total Allocation Fixed maturity securities - corporate bonds $ 21,718 8.7 % $ 13,250 6.7 % 0 % - 15 % Redeemable preferred stock 3,534 1.4 2,929 1.5 0 % - 10 % Equity securities 149,413 60.0 117,117 58.7 50 % - 70 % Pooled separate accounts Core plus bond separate account fund 26,266 10.6 20,505 10.3 0 % - 40 % U.S. property separate account fund 22,269 9.0 22,114 11.1 0 % - 25 % Arbitrage fund 9,873 4.0 9,245 4.6 0 % - 10 % United Life annuity 11,398 4.6 10,855 5.4 0 % - 10 % Cash and cash equivalents 4,264 1.7 3,451 1.7 0 % - 10 % Total plan assets $ 248,735 100.0 % $ 199,466 100.0 % |
Categories of Pension Plan Assets at Fair Value on Recurring Basis | The following tables present the categorization of the pension plan's assets measured at fair value on a recurring basis at December 31, 2020 and 2019: Fair Value Measurements Description December 31, 2020 Level 1 Level 2 Level 3 Fixed maturity securities - corporate bonds $ 21,718 $ — $ 21,718 $ — Redeemable preferred stock 3,534 3,534 — — Equity securities 149,413 149,413 — — Pooled separate accounts Core plus bond separate account fund 26,266 — 26,266 — U.S. property separate account fund 22,269 — — 22,269 Arbitrage fund 9,873 — 9,873 — Money market funds 4,260 4,260 — — Total assets measured at fair value $ 237,333 $ 157,207 $ 57,857 $ 22,269 Fair Value Measurements Description December 31, 2019 Level 1 Level 2 Level 3 Fixed maturity securities - corporate bonds $ 13,250 $ — $ 13,250 $ — Redeemable preferred stock 2,929 2,929 — — Equity securities 117,117 117,117 — — Pooled separate accounts Core plus bond separate account fund 20,505 — 20,505 — U.S. property separate account fund 22,114 — — 22,114 Arbitrage fund 9,245 — 9,245 — Money market funds 3,448 3,448 — — Total assets measured at fair value $ 188,608 $ 123,494 $ 43,000 $ 22,114 |
Summary of Changes in Fair Value of Pension Plan Securities | The following tables provide a summary of the changes in fair value of the pension plan's Level 3 securities: U.S. property separate account fund Balance at January 1, 2020 $ 22,114 Unrealized gains 155 Balance at December 31, 2020 $ 22,269 U.S. property separate account fund Balance at January 1, 2019 $ 20,841 Unrealized gains 1,273 Balance at December 31, 2019 $ 22,114 |
Schedule of Actuarial Assumptions Used | The following actuarial assumptions were used to determine the reported plan benefit obligations at December 31: Weighted-average assumptions as of Pension Benefits Post-retirement Benefits December 31, 2020 2019 2020 2019 Discount rate 2.58 % 3.32 % 2.58 % 3.32 % Rate of compensation increase 2.75 3.00 N/A N/A The following actuarial assumptions were used at January 1 to determine our reported net periodic benefit costs for the year ended December 31: Weighted-average assumptions as of Pension Benefits Post-retirement Benefits January 1, 2020 2019 2018 2020 2019 2018 Discount rate 3.32 % 4.18 % 3.65 % 3.32 % 4.18 % 3.65 % Expected long-term rate of return on plan assets 6.70 6.70 6.70 N/A N/A N/A Rate of compensation increase 3.00 3.00 3.00 N/A N/A N/A |
Schedule of Health Care Cost Trend Rates | Health Care Benefits Dental Claims Years Ended December 31, 2020 2019 2020 2019 Health care cost trend rates assumed for next year 7.00 % 6.75 % 3.00 % 4.00 % Rate to which the health care trend rate is assumed to decline (ultimate trend rate) 4.50 % 4.50 % N/A N/A Year that the rate reaches the ultimate trend rate 2031 2030 N/A N/A |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | A 1.0 percent change in assumed health care cost trend rates would have the following effects: 1% Increase 1% Decrease Effect on the net periodic post-retirement health care benefit cost $ 643 $ (494) Effect on the accumulated post-retirement benefit obligation 5,520 (4,451) |
Reconciliation of Benefit Obligations, Plan Assets, and Funded Status | The following table provides a reconciliation of benefit obligations, plan assets and funded status of our plans: Pension Benefits Post-retirement Benefits Years Ended December 31, 2020 2019 2020 2019 Reconciliation of benefit obligation Benefit obligation at beginning of year $ 252,374 $ 202,156 $ 31,001 $ 30,973 Service cost 10,829 7,989 1,728 1,823 Interest cost 8,266 8,320 1,014 1,274 Actuarial loss (gain) 38,920 39,598 (1,084) (1,806) Adjustment for plan amendment (32,175) — — — Benefit payments (6,470) (5,689) (993) (1,263) Benefit obligation at end of year (1) $ 271,744 $ 252,374 $ 31,666 $ 31,001 Reconciliation of fair value of plan assets Fair value of plan assets at beginning of year $ 199,466 $ 164,819 $ — $ — Actual return on plan assets 45,739 36,336 — — Employer contributions 10,000 4,000 993 1,263 Benefit payments (6,470) (5,689) (993) (1,263) Fair value of plan assets at end of year $ 248,735 $ 199,466 $ — $ — Funded status at end of year $ (23,009) $ (52,908) $ (31,666) $ (31,001) (1) For the pension plan, the benefit obligation is the projected benefit obligation. For the post-retirement benefit plan, the benefit obligation is the accumulated post-retirement benefit obligation. |
Schedule of Amounts Recognized in AOCI | The following table displays the effect that the unrecognized prior service cost and unrecognized actuarial loss of our plans had on accumulated other comprehensive income ("AOCI"), as reported in the accompanying Consolidated Balance Sheets: Pension Benefits Post-retirement Benefits Years Ended December 31 2020 2019 2020 2019 Amounts recognized in AOCI Unrecognized prior service cost $ (32,175) $ — $ (20,863) $ (28,947) Unrecognized actuarial (gain) loss 66,864 64,059 6,627 8,086 Total amounts recognized in AOCI $ 34,689 $ 64,059 $ (14,236) $ (20,861) |
Components of Net Periodic Benefit Cost | The components of the net periodic benefit cost for our pension and post-retirement benefit plans are as follows: Pension Plan Post-retirement Benefit Plan Years Ended December 31, 2020 2019 2018 2020 2019 2018 Net periodic benefit cost Service cost $ 10,829 $ 7,989 $ 8,701 $ 1,728 $ 1,823 $ 2,998 Interest cost 8,266 8,320 7,500 1,014 1,274 2,009 Expected return on plan assets (13,539) (10,784) (10,502) — — — Amortization of prior service cost — — — (8,084) (8,684) (5,409) Amortization of net loss 3,914 3,603 4,287 375 894 2,355 Net periodic benefit cost $ 9,470 $ 9,128 $ 9,986 $ (4,967) $ (4,693) $ 1,953 |
Summary of Expected Benefit Payments | The following table summarizes the expected benefits to be paid from our plans over the next 10 years: 2021 2022 2023 2024 2025 2026 - 2030 Pension benefits $ 7,330 $ 7,920 $ 8,860 $ 9,850 $ 10,970 $ 67,280 Post-retirement benefits $ 940 $ 990 $ 1,010 $ 1,050 $ 1,090 $ 6,520 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Activity in Stock Award Plans | The activity in the Stock Plan is displayed in the following table: Authorized Shares Available for Future Award Grants Year Ended December 31, 2020 From Inception to December 31, 2020 Beginning balance 834,910 1,900,000 Additional shares authorized — 1,500,000 Number of awards granted (172,478) (3,288,899) Number of awards forfeited or expired 38,248 589,579 Ending balance 700,680 700,680 Number of option awards exercised 30,900 1,474,089 Number of unrestricted stock awards granted — 10,090 Number of restricted stock awards vested 63,600 164,378 The activity in the Director Stock Plan is displayed in the following table: Authorized Shares Available for Future Award Grants Year Ended December 31, 2020 From Inception to December 31, 2020 Beginning balance 34,863 300,000 Additional authorization 150,000 150,000 Number of awards granted (24,728) (313,868) Number of awards forfeited or expired — 24,003 Ending balance 160,135 160,135 Number of option awards exercised 14,728 133,820 Number of restricted stock awards vested 14,300 98,491 |
Recognition of Stock-Based Compensation Expense | We expect this compensation to be recognized in subsequent years according to the following table, except with respect to awards that are accelerated by the Board of Directors, in which case we will recognize any remaining compensation expense in the period in which the awards are accelerated. 2021 $ 2,624 2022 1,107 2023 269 2024 83 2025 12 Total $ 4,095 |
Analysis of Award Activity | The analysis below details the option award activity for 2020 and the awards outstanding at December 31, 2020, for both of our plans and ad hoc options, which were granted prior to the adoption of the other plans: Options Shares Weighted-Average Exercise Price Weighted-Average Remaining Life (in years) Aggregate Intrinsic Value Outstanding at January 1, 2020 829,714 $ 35.39 Granted 110,470 44.08 Exercised (45,628) 21.93 Cancelled/Forfeited (1,300) 29.20 Outstanding at December 31, 2020 893,256 $ 37.16 5.16 $ 179 Exercisable at December 31, 2020 663,788 $ 34.46 4.21 $ 179 |
Schedule of Restricted Stock Award Activity | The analysis below details the award activity for the restricted stock and restricted stock unit awards outstanding at December 31, 2020: Restricted stock awards Shares Weighted-Average Grant Date Fair Value Non-vested at January 1, 2020 246,750 $ 43.31 Granted 101,130 37.87 Vested (77,900) 39.93 Forfeited (52,097) 41.40 Non-vested at December 31, 2020 217,883 $ 42.45 |
Weighted-average Grant-Date Fair Value Assumptions | The weighted-average grant-date fair value of the options granted under our plans has been estimated using the Black-Scholes option pricing model with the following weighted-average assumptions: December 31, 2020 2019 2018 Risk-free interest rate 1.4 % 2.57 % 2.79 % Expected volatility 22.26 % 26.40 % 21.79 % Expected option life (in years) 7 7 7 Expected dividends (in dollars) $ 1.32 $ 1.24 $ 1.12 Weighted-average grant-date fair value of options granted during the year (in dollars) $ 6.96 $ 12.97 $ 8.90 |
Summary of Stock Options Outstanding and Exercisable | The following table summarizes information regarding the stock options outstanding and exercisable at December 31, 2020: Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding (in shares) Weighted-Average Remaining Contractual Life (in years) Weighted-Average Exercise Price Number Exercisable (in shares) Weighted-Average Exercise Price $ 20.40 - 29.02 92,415 2.14 $ 23.81 87,070 $ 23.63 29.03 - 29.37 182,462 3.93 29.12 182,462 29.12 29.38 - 40.61 239,097 4.04 35.47 210,663 34.87 40.62 - 44.88 210,260 6.08 42.87 158,190 42.86 44.89 - 54.26 169,022 8.56 48.44 25,403 54.11 $ 20.40 - 54.26 893,256 5.16 $ 37.16 663,788 $ 34.46 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Premiums Earned by Segments | The following table sets forth our net premiums earned: Years Ended December 31, 2020 2019 2018 Continuing Operations - Property and casualty insurance business Net premiums earned Other liability $ 316,098 $ 318,412 $ 311,931 Fire and allied lines 277,515 285,205 276,193 Automobile 324,420 345,637 313,521 Workers' compensation 75,953 87,376 95,203 Fidelity and surety 28,001 25,539 24,437 Reinsurance assumed 30,417 21,861 13,228 Other 2,678 2,942 2,938 Total net premiums earned from continuing operations $ 1,055,082 $ 1,086,972 $ 1,037,451 Discontinued Operations - Life insurance business Net premiums earned Ordinary life (excluding universal life) $ — $ — $ 7,068 Universal life policy fees — — 3,363 Immediate annuities with life contingencies — — 2,515 Accident and health — — 45 Other — — 12 Total net premiums earned from discontinued operations $ — $ — $ 13,003 |
QUARTERLY SUPPLEMENTARY FINAN_2
QUARTERLY SUPPLEMENTARY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Data [Abstract] | |
Schedule of Unaudited Quarterly Financial Information | The following table sets forth our selected unaudited quarterly financial information: (In Thousands Except Share Data) Quarters First Second Third Fourth Total Year Ended December 31, 2020 Total revenues $ 177,805 $ 297,803 $ 282,121 $ 310,898 $ 1,068,627 Income (loss) before income taxes (104,999) 4,236 (55,228) (13,524) (169,515) Net income (loss) $ (72,534) $ 5,960 $ (37,241) $ (8,891) $ (112,706) Basic earnings (loss) per share (1) $ (2.90) $ 0.24 $ (1.49) $ (0.36) $ (4.50) Diluted earnings (loss) per share (1) (2.90) 0.24 (1.49) (0.36) (4.50) Year Ended December 31, 2019 Total revenues $ 305,539 $ 304,197 $ 298,055 $ 293,374 $ 1,201,165 Income (loss) before income taxes 54,677 (4,571) (4,528) (28,699) 16,879 Net income (loss) $ 44,521 $ (4,196) $ (2,342) $ (23,163) $ 14,820 Basic earnings (loss) per share (1) $ 1.77 $ (0.17) $ (0.09) $ (0.93) $ 0.59 Diluted earnings (loss) per share (1) 1.74 (0.17) (0.09) (0.93) 0.58 (1) The sum of the quarterly reported amounts may not equal the full year, as each is computed independently. |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Components of Basic and Diluted Earnings per Share | The components of basic and diluted earnings per share were as follows: Years Ended December 31, 2020 2019 2018 (In Thousands Except Share and Per Share Data) Basic Diluted Basic Diluted Basic Diluted Net income (loss) from continuing operations $ (112,706) $ (112,706) $ 14,820 $ 14,820 $ 2,255 $ 2,255 Weighted-average common shares outstanding 25,027,358 25,027,358 25,138,039 25,138,039 25,006,211 25,006,211 Add dilutive effect of restricted stock awards — — — 232,450 — 273,544 Add dilutive effect of stock options — — — 212,038 — 343,057 Weighted-average common shares 25,027,358 25,027,358 25,138,039 25,582,527 25,006,211 25,622,812 Earnings (loss) per common share from continuing operations $ (4.50) $ (4.50) $ 0.59 $ 0.58 $ 0.09 $ 0.09 Earnings (loss) per common share from discontinued operations — — — — (0.08) (0.07) Gain on sale of discontinued operations, net of taxes $ — $ — $ — $ — $ 1.10 $ 1.07 Earnings (loss) per common share $ (4.50) $ (4.50) $ 0.59 $ 0.58 $ 1.11 $ 1.08 Awards excluded from diluted calculation (1) — 618,379 — 63,897 — 2,681 (1) Outstanding awards that are not "in-the-money" are excluded from the diluted earnings per share calculation because the effect of including them would have been anti-dilutive. |
LEASE COMMITMENTS (Tables)
LEASE COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Components of Operating Leases | The components of our operating leases were as follows: As of December 31, 2020 As of December 31, 2019 Components of lease expense: Operating lease expense $ 7,611 $ 7,655 Less sublease income 292 493 Net lease expense 7,319 7,162 Cash flows information related to leases: Operating cash outflow from operating leases 7,053 7,249 |
Lease Balance Sheet Information | Balance sheet information for operating leases: As of December 31, 2020 As of December 31, 2019 Operating lease right-of-use assets (Other assets on Consolidated Balance Sheets) $ 18,619 $ 15,410 Operating lease liabilities (Accrued expenses and other liabilities on Consolidated Balance Sheets) 19,244 15,851 Right-of-use assets obtained in exchange for new operating lease liabilities 7,264 651 Weighted average remaining lease term 4.36 years 2.75 years Weighted average discount rate 3.72 % 4.74 % |
Maturity of Lease Liabilities | Maturities of lease liabilities: As of December 31, 2020 As of December 31, 2019 2021 $ 6,889 $ 7,517 2022 4,610 5,311 2023 3,627 2,417 2024 1,763 1,318 2025 1,270 259 Thereafter 2,460 39 Total lease payments 20,619 16,861 Less imputed interest (1,375) (1,010) Lease liability $ 19,244 $ 15,851 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Interest Payments | The interest rate will equal the rate that corresponds to the A.M. Best Co. (or its successor’s) financial strength rating for members of the United Fire & Casualty Pooled Group as of the applicable Interest Payment Date, as set forth in the table below. As of December 31, 2020, interest expense totaled $133. Payment of interest is subject to approval by the Iowa Insurance Division. A.M. Best Co. Financial Strength Rating Applicable Interest Rate A+ 5.875% A 6.375% A- 6.875% B++ (or lower) 7.375% |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Major Classes of Intangible Assets | Our major classes of intangible assets are presented in the following table: Year Ended December 31, 2020 2019 Agency relationships $ 10,338 $ 10,338 Accumulated amortization - agency relationships (7,307) (6,731) $ 3,031 $ 3,607 Software $ 3,260 $ 3,260 Accumulated amortization - software (3,260) (3,260) $ — $ — Trade names $ 1,978 $ 1,978 Accumulated amortization - trade names (1,286) (1,154) $ 692 $ 824 Favorable contract $ 286 $ 286 Accumulated amortization - favorable contract (286) (286) $ — $ — State insurance licenses (1) $ 3,020 $ 3,020 Net intangible assets $ 6,743 $ 7,451 (1) The intangible asset for licenses has an indefinite life and therefore is not amortized. |
Schedule of Estimated Useful Lives of Amortizable Intangible Assets | The estimated useful lives assigned to our major classes of amortizable intangible assets are as follows: Useful Life Agency relationships Fifteen years Software Two years Trade names Fifteen years Favorable contract Two years |
Schedule of Estimated Aggregate Amortization Expense | Our estimated aggregate amortization expense for each of the next five years is as follows: 2021 $ 709 2022 709 2023 709 2024 709 2025 709 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | The following table shows the changes in the components of our accumulated other comprehensive income (loss), net of tax, for the years ended December 31, 2020, 2019 and 2018: Liability for Net unrealized underfunded appreciation employee on investments benefit costs Total Balance as of January 1, 2018 $ 214,865 $ (46,551) $ 168,314 Cumulative effect of change in accounting principle (191,244) — (191,244) Change in accumulated other comprehensive income before reclassifications (33,564) 20,155 (13,409) Reclassification adjustments from accumulated other comprehensive income 620 5,247 5,867 Balance as of December 31, 2018 $ (9,323) $ (21,149) $ (30,472) Change in accumulated other comprehensive income before reclassifications 55,399 (16,530) 38,869 Reclassification adjustments from accumulated other comprehensive income 1,203 3,552 4,755 Balance as of December 31, 2019 $ 47,279 $ (34,127) $ 13,152 Change in accumulated other comprehensive income before reclassifications 37,173 14,580 51,753 Reclassification adjustments from accumulated other comprehensive income (1,382) 3,388 2,006 Balance as of December 31, 2020 $ 83,070 $ (16,159) $ 66,911 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | Summary operating results of discontinued operations were as follows for the periods indicated: Discontinued Operations Statements of Income For the Years Ended December 31, (In Thousands, Except Share Data) 2020 2019 2018 Revenues Net premiums earned $ — $ — $ 13,003 Investment income, net of investment expenses — — 12,663 Total net realized investment gains (losses) — — (1,057) Other income — — 146 Total revenues $ — $ — $ 24,755 Benefits, Losses and Expenses Losses and loss settlement expenses $ — $ — $ 10,823 Increase in liability for future policy benefits — — 5,023 Amortization of deferred policy acquisition costs — — 1,895 Other underwriting expenses — — 3,864 Interest on policyholders’ accounts — — 4,499 Total benefits, losses and expenses $ — $ — $ 26,104 Income (loss) from discontinued operations before income taxes $ — $ — $ (1,349) Federal income tax expense — — 563 Net income (loss) from discontinued operations $ — $ — $ (1,912) Earnings (loss) per common share from discontinued operations: Basic $ — $ — $ (0.08) Diluted — — (0.07) |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) | Mar. 27, 2020USD ($) | Sep. 18, 2017segment | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($)segmentstateplan | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jan. 01, 2021USD ($) | Dec. 15, 2020USD ($) | Dec. 31, 2017USD ($) |
Item Effected [Line Items] | |||||||||
Number of operating segments | segment | 2 | 1 | |||||||
Percentage of the gains and profits from the Lloyds plan available to United Fire & Indemnity Company | 100.00% | ||||||||
Securities on deposit as required by law | $ 21,628,000 | $ 20,816,000 | |||||||
Payment for income taxes | 138,000 | 1,575,000 | $ 29,071,000 | ||||||
Federal tax refund received | 0 | 5,401,000 | 1,503,000 | ||||||
Interest payment | 0 | 0 | 0 | ||||||
Depreciation expense | 5,947,000 | 10,482,000 | 4,455,000 | ||||||
Goodwill impairment | $ 15,091,000 | 15,091,000 | 0 | 0 | |||||
Income tax benefit, CARES Act | $ 18,600,000 | ||||||||
Unrecognized tax benefit | 0 | 0 | 0 | ||||||
Assets | $ 3,069,678,000 | 3,013,472,000 | |||||||
Number of equity compensation plans | plan | 2 | ||||||||
Investment income accrual period | 6 months | ||||||||
Credit loss allowance for reinsurance receivables | $ 190,000 | 0 | $ 38,000 | ||||||
Cumulative effect adjustment | 825,149,000 | 910,472,000 | 888,375,000 | $ 973,373,000 | |||||
Retaining earnings | |||||||||
Item Effected [Line Items] | |||||||||
Cumulative effect adjustment | 555,854,000 | 697,116,000 | 715,472,000 | 608,700,000 | |||||
Cumulative effect of change in accounting principle | |||||||||
Item Effected [Line Items] | |||||||||
Cumulative effect adjustment | (30,000) | (514,000) | 0 | ||||||
Cumulative effect of change in accounting principle | Retaining earnings | |||||||||
Item Effected [Line Items] | |||||||||
Cumulative effect adjustment | (30,000) | (514,000) | $ 191,244,000 | ||||||
Post-retirement Benefits | |||||||||
Item Effected [Line Items] | |||||||||
Benefit obligation | 31,666,000 | 31,001,000 | 30,973,000 | ||||||
Variable Interest Entity, Not Primary Beneficiary | |||||||||
Item Effected [Line Items] | |||||||||
Assets | 3,300,000 | ||||||||
Surplus Notes | |||||||||
Item Effected [Line Items] | |||||||||
Principal amount | $ 50,000,000 | ||||||||
Debt issuance costs | 24,000 | ||||||||
Interest expense incurred | 133,000 | ||||||||
Surplus Notes | Federated Mutual | |||||||||
Item Effected [Line Items] | |||||||||
Principal amount | 35,000,000 | ||||||||
Surplus Notes | Federated Life | |||||||||
Item Effected [Line Items] | |||||||||
Principal amount | $ 15,000,000 | ||||||||
Minimum | |||||||||
Item Effected [Line Items] | |||||||||
Useful life | 2 years | ||||||||
Maximum | |||||||||
Item Effected [Line Items] | |||||||||
Useful life | 15 years | ||||||||
Property and casualty business | |||||||||
Item Effected [Line Items] | |||||||||
Number of states in which we are licensed as insurer | state | 49 | ||||||||
Amortization expense | $ 709,000 | $ 709,000 | $ 719,000 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Deferred Policy Acquisition Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Recorded asset at beginning of year | $ 94,292 | ||
Change in "shadow" deferred policy acquisition costs | 0 | $ 0 | $ 7,274 |
Recorded asset at end of year | 87,094 | 94,292 | |
Continuing and Discontinuing Operations | |||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Recorded asset at beginning of year | 94,292 | 92,796 | 159,253 |
Underwriting costs deferred | 203,054 | 218,195 | 212,302 |
Amortization of deferred policy acquisition costs | (210,252) | (216,699) | (208,127) |
Ending unamortized deferred policy acquisition costs | 87,094 | 94,292 | 163,428 |
Change in "shadow" deferred policy acquisition costs | 0 | 0 | 7,274 |
Sale of discontinued operations | 0 | 0 | (77,906) |
Recorded asset at end of year | 87,094 | 94,292 | 92,796 |
Property and casualty business | |||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Recorded asset at beginning of year | 94,292 | 92,796 | 88,102 |
Underwriting costs deferred | 203,054 | 218,195 | 210,926 |
Amortization of deferred policy acquisition costs | (210,252) | (216,699) | (206,232) |
Recorded asset at end of year | 87,094 | 94,292 | 92,796 |
Life Insurance | Discontinued Operations | |||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Recorded asset at beginning of year | 0 | 0 | 71,151 |
Underwriting costs deferred | 0 | 0 | 1,376 |
Amortization of deferred policy acquisition costs | 0 | 0 | (1,895) |
Ending unamortized deferred policy acquisition costs | 0 | 0 | 70,632 |
Change in "shadow" deferred policy acquisition costs | 0 | 0 | 7,274 |
Sale of discontinued operations | 0 | 0 | (77,906) |
Recorded asset at end of year | $ 0 | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Property and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 129,874 | $ 116,989 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 2,974 | 2,982 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 85,776 | 83,360 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 6,058 | 7,253 |
Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 35,066 | 23,394 |
Airplane | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Useful Life) (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Computer equipment and software | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 3 years |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 7 years |
Airplane | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 5 years |
Real estate | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 7 years |
Real estate | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 39 years |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Rollforward of Credit Loss Allowance for Reinsurance Receivable) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward] | |
Beginning balance, January 1, 2020 | $ 0 |
Current-period provision for expected credit losses | 152 |
Write-off charged against the allowance, if any | 0 |
Recoveries of amounts previously written off, if any | 0 |
Ending balance of the allowance for reinsurance receivable, December 31, 2020 | $ 190 |
SUMMARY OF INVESTMENTS (Fair Va
SUMMARY OF INVESTMENTS (Fair Value of Investments) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
AVAILABLE-FOR-SALE | ||
Cost or Amortized Cost | $ 1,720,291 | $ 1,659,760 |
Fair Value | 1,825,438 | 1,719,607 |
Allowance for Credit Losses | 5 | 0 |
Fixed maturities | ||
AVAILABLE-FOR-SALE | ||
Cost or Amortized Cost | 1,720,291 | 1,659,760 |
Gross Unrealized Appreciation | 107,003 | 60,639 |
Gross Unrealized Depreciation | 1,851 | 792 |
Fair Value | 1,825,443 | 1,719,607 |
Allowance for Credit Losses | 5 | |
U.S. Treasury | ||
AVAILABLE-FOR-SALE | ||
Cost or Amortized Cost | 149,481 | 69,300 |
Gross Unrealized Appreciation | 482 | 203 |
Gross Unrealized Depreciation | 25 | 12 |
Fair Value | 149,938 | 69,491 |
Allowance for Credit Losses | 0 | |
U.S. government agency | ||
AVAILABLE-FOR-SALE | ||
Cost or Amortized Cost | 60,502 | 97,962 |
Gross Unrealized Appreciation | 4,016 | 2,344 |
Gross Unrealized Depreciation | 0 | 104 |
Fair Value | 64,518 | 100,202 |
Allowance for Credit Losses | 0 | |
General obligations | Midwest | ||
AVAILABLE-FOR-SALE | ||
Cost or Amortized Cost | 77,933 | 85,607 |
Gross Unrealized Appreciation | 4,047 | 2,987 |
Gross Unrealized Depreciation | 0 | 0 |
Fair Value | 81,980 | 88,594 |
Allowance for Credit Losses | 0 | |
General obligations | Northeast | ||
AVAILABLE-FOR-SALE | ||
Cost or Amortized Cost | 29,071 | 30,120 |
Gross Unrealized Appreciation | 1,379 | 1,150 |
Gross Unrealized Depreciation | 0 | 0 |
Fair Value | 30,450 | 31,270 |
Allowance for Credit Losses | 0 | |
General obligations | South | ||
AVAILABLE-FOR-SALE | ||
Cost or Amortized Cost | 104,522 | 111,688 |
Gross Unrealized Appreciation | 5,448 | 3,515 |
Gross Unrealized Depreciation | 0 | 0 |
Fair Value | 109,970 | 115,203 |
Allowance for Credit Losses | 0 | |
General obligations | West | ||
AVAILABLE-FOR-SALE | ||
Cost or Amortized Cost | 102,590 | 105,569 |
Gross Unrealized Appreciation | 7,431 | 4,748 |
Gross Unrealized Depreciation | 0 | 0 |
Fair Value | 110,021 | 110,317 |
Allowance for Credit Losses | 0 | |
Special revenue | Midwest | ||
AVAILABLE-FOR-SALE | ||
Cost or Amortized Cost | 115,956 | 133,717 |
Gross Unrealized Appreciation | 9,142 | 6,175 |
Gross Unrealized Depreciation | 0 | 0 |
Fair Value | 125,098 | 139,892 |
Allowance for Credit Losses | 0 | |
Special revenue | Northeast | ||
AVAILABLE-FOR-SALE | ||
Cost or Amortized Cost | 56,317 | 58,665 |
Gross Unrealized Appreciation | 4,759 | 2,878 |
Gross Unrealized Depreciation | 0 | 0 |
Fair Value | 61,076 | 61,543 |
Allowance for Credit Losses | 0 | |
Special revenue | South | ||
AVAILABLE-FOR-SALE | ||
Cost or Amortized Cost | 208,739 | 224,214 |
Gross Unrealized Appreciation | 17,967 | 10,452 |
Gross Unrealized Depreciation | 0 | 0 |
Fair Value | 226,706 | 234,666 |
Allowance for Credit Losses | 0 | |
Special revenue | West | ||
AVAILABLE-FOR-SALE | ||
Cost or Amortized Cost | 129,417 | 138,557 |
Gross Unrealized Appreciation | 9,982 | 6,287 |
Gross Unrealized Depreciation | 0 | 0 |
Fair Value | 139,399 | 144,844 |
Allowance for Credit Losses | 0 | |
Foreign bonds | ||
AVAILABLE-FOR-SALE | ||
Cost or Amortized Cost | 27,799 | 4,936 |
Gross Unrealized Appreciation | 1,805 | 181 |
Gross Unrealized Depreciation | 2 | 0 |
Fair Value | 29,602 | 5,117 |
Allowance for Credit Losses | 0 | |
Public utilities | ||
AVAILABLE-FOR-SALE | ||
Cost or Amortized Cost | 76,114 | 60,950 |
Gross Unrealized Appreciation | 7,388 | 2,701 |
Gross Unrealized Depreciation | 0 | 0 |
Fair Value | 83,502 | 63,651 |
Allowance for Credit Losses | 0 | |
Corporate bonds | Energy | ||
AVAILABLE-FOR-SALE | ||
Cost or Amortized Cost | 22,441 | 28,695 |
Gross Unrealized Appreciation | 2,895 | 1,429 |
Gross Unrealized Depreciation | 0 | 0 |
Fair Value | 25,336 | 30,124 |
Allowance for Credit Losses | 0 | |
Corporate bonds | Industrials | ||
AVAILABLE-FOR-SALE | ||
Cost or Amortized Cost | 39,513 | 52,249 |
Gross Unrealized Appreciation | 3,744 | 1,766 |
Gross Unrealized Depreciation | 0 | 0 |
Fair Value | 43,257 | 54,015 |
Allowance for Credit Losses | 0 | |
Corporate bonds | Consumer goods and services | ||
AVAILABLE-FOR-SALE | ||
Cost or Amortized Cost | 46,521 | 47,131 |
Gross Unrealized Appreciation | 4,046 | 2,335 |
Gross Unrealized Depreciation | 0 | 0 |
Fair Value | 50,567 | 49,466 |
Allowance for Credit Losses | 0 | |
Corporate bonds | Health care | ||
AVAILABLE-FOR-SALE | ||
Cost or Amortized Cost | 6,678 | 8,998 |
Gross Unrealized Appreciation | 898 | 482 |
Gross Unrealized Depreciation | 0 | 0 |
Fair Value | 7,576 | 9,480 |
Allowance for Credit Losses | 0 | |
Corporate bonds | Technology, media and telecommunications | ||
AVAILABLE-FOR-SALE | ||
Cost or Amortized Cost | 37,270 | 25,931 |
Gross Unrealized Appreciation | 4,381 | 1,739 |
Gross Unrealized Depreciation | 15 | 0 |
Fair Value | 41,636 | 27,670 |
Allowance for Credit Losses | 0 | |
Corporate bonds | Financial services | ||
AVAILABLE-FOR-SALE | ||
Cost or Amortized Cost | 93,736 | 96,613 |
Gross Unrealized Appreciation | 7,564 | 3,870 |
Gross Unrealized Depreciation | 269 | 230 |
Fair Value | 101,031 | 100,253 |
Allowance for Credit Losses | 5 | |
Mortgage-backed securities | ||
AVAILABLE-FOR-SALE | ||
Cost or Amortized Cost | 20,305 | 6,250 |
Gross Unrealized Appreciation | 326 | 127 |
Gross Unrealized Depreciation | 54 | 21 |
Fair Value | 20,577 | 6,356 |
Allowance for Credit Losses | 0 | |
Collateralized mortgage obligations | Government national mortgage association | ||
AVAILABLE-FOR-SALE | ||
Cost or Amortized Cost | 81,758 | 78,400 |
Gross Unrealized Appreciation | 4,439 | 2,053 |
Gross Unrealized Depreciation | 45 | 97 |
Fair Value | 86,152 | 80,356 |
Allowance for Credit Losses | 0 | |
Collateralized mortgage obligations | Federal home loan mortgage corporation | ||
AVAILABLE-FOR-SALE | ||
Cost or Amortized Cost | 151,362 | 123,572 |
Gross Unrealized Appreciation | 2,239 | 1,150 |
Gross Unrealized Depreciation | 758 | 220 |
Fair Value | 152,843 | 124,502 |
Allowance for Credit Losses | 0 | |
Collateralized mortgage obligations | Federal national mortgage association | ||
AVAILABLE-FOR-SALE | ||
Cost or Amortized Cost | 81,952 | 70,322 |
Gross Unrealized Appreciation | 2,013 | 1,631 |
Gross Unrealized Depreciation | 683 | 108 |
Fair Value | 83,282 | 71,845 |
Allowance for Credit Losses | 0 | |
Asset-backed securities | ||
AVAILABLE-FOR-SALE | ||
Cost or Amortized Cost | 314 | 314 |
Gross Unrealized Appreciation | 612 | 436 |
Gross Unrealized Depreciation | 0 | 0 |
Fair Value | 926 | $ 750 |
Allowance for Credit Losses | 0 | |
Carrying Value | Fixed maturities | ||
AVAILABLE-FOR-SALE | ||
Fair Value | 1,825,438 | |
Carrying Value | U.S. Treasury | ||
AVAILABLE-FOR-SALE | ||
Fair Value | 149,938 | |
Carrying Value | U.S. government agency | ||
AVAILABLE-FOR-SALE | ||
Fair Value | 64,518 | |
Carrying Value | General obligations | Midwest | ||
AVAILABLE-FOR-SALE | ||
Fair Value | 81,980 | |
Carrying Value | General obligations | Northeast | ||
AVAILABLE-FOR-SALE | ||
Fair Value | 30,450 | |
Carrying Value | General obligations | South | ||
AVAILABLE-FOR-SALE | ||
Fair Value | 109,970 | |
Carrying Value | General obligations | West | ||
AVAILABLE-FOR-SALE | ||
Fair Value | 110,021 | |
Carrying Value | Special revenue | Midwest | ||
AVAILABLE-FOR-SALE | ||
Fair Value | 125,098 | |
Carrying Value | Special revenue | Northeast | ||
AVAILABLE-FOR-SALE | ||
Fair Value | 61,076 | |
Carrying Value | Special revenue | South | ||
AVAILABLE-FOR-SALE | ||
Fair Value | 226,706 | |
Carrying Value | Special revenue | West | ||
AVAILABLE-FOR-SALE | ||
Fair Value | 139,399 | |
Carrying Value | Foreign bonds | ||
AVAILABLE-FOR-SALE | ||
Fair Value | 29,602 | |
Carrying Value | Public utilities | ||
AVAILABLE-FOR-SALE | ||
Fair Value | 83,502 | |
Carrying Value | Corporate bonds | Energy | ||
AVAILABLE-FOR-SALE | ||
Fair Value | 25,336 | |
Carrying Value | Corporate bonds | Industrials | ||
AVAILABLE-FOR-SALE | ||
Fair Value | 43,257 | |
Carrying Value | Corporate bonds | Consumer goods and services | ||
AVAILABLE-FOR-SALE | ||
Fair Value | 50,567 | |
Carrying Value | Corporate bonds | Health care | ||
AVAILABLE-FOR-SALE | ||
Fair Value | 7,576 | |
Carrying Value | Corporate bonds | Technology, media and telecommunications | ||
AVAILABLE-FOR-SALE | ||
Fair Value | 41,636 | |
Carrying Value | Corporate bonds | Financial services | ||
AVAILABLE-FOR-SALE | ||
Fair Value | 101,026 | |
Carrying Value | Mortgage-backed securities | ||
AVAILABLE-FOR-SALE | ||
Fair Value | 20,577 | |
Carrying Value | Collateralized mortgage obligations | Government national mortgage association | ||
AVAILABLE-FOR-SALE | ||
Fair Value | 86,152 | |
Carrying Value | Collateralized mortgage obligations | Federal home loan mortgage corporation | ||
AVAILABLE-FOR-SALE | ||
Fair Value | 152,843 | |
Carrying Value | Collateralized mortgage obligations | Federal national mortgage association | ||
AVAILABLE-FOR-SALE | ||
Fair Value | 83,282 | |
Carrying Value | Asset-backed securities | ||
AVAILABLE-FOR-SALE | ||
Fair Value | $ 926 |
SUMMARY OF INVESTMENTS (Maturit
SUMMARY OF INVESTMENTS (Maturities) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Available-For-Sale, Amortized Cost | |
Due in one year or less | $ 32,214 |
Due after one year through five years | 476,667 |
Due after five years through 10 years | 400,277 |
Due after 10 years | 475,442 |
Available-For-Sale, Fair Value | |
Due in one year or less | 32,467 |
Due after one year through five years | 502,699 |
Due after five years through 10 years | 431,271 |
Due after 10 years | 515,226 |
Fixed maturities | |
Available-For-Sale, Amortized Cost | |
Securities not categorized by contractual maturity | 1,720,291 |
Available-For-Sale, Fair Value | |
Securities not categorized by contractual maturity | 1,825,443 |
Asset-backed securities | |
Available-For-Sale, Amortized Cost | |
Securities not categorized by contractual maturity | 314 |
Available-For-Sale, Fair Value | |
Securities not categorized by contractual maturity | 926 |
Mortgage-backed securities | |
Available-For-Sale, Amortized Cost | |
Securities not categorized by contractual maturity | 20,305 |
Available-For-Sale, Fair Value | |
Securities not categorized by contractual maturity | 20,577 |
Collateralized mortgage obligations | |
Available-For-Sale, Amortized Cost | |
Securities not categorized by contractual maturity | 315,072 |
Available-For-Sale, Fair Value | |
Securities not categorized by contractual maturity | $ 322,277 |
SUMMARY OF INVESTMENTS (Net Rea
SUMMARY OF INVESTMENTS (Net Realized Investment Gains and Losses) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Gain (Loss) on Securities [Line Items] | |||
Net realized investment gains (losses) from continuing operations | $ (32,395,000) | $ 53,779,000 | $ (20,179,000) |
AVAILABLE-FOR-SALE | |||
Proceeds from sales | 50,744,000 | 41,760,000 | 132,250,000 |
Gross realized gains | 1,400,000 | 302,000 | 140,000 |
Gross realized losses | (495,000) | (13,000) | (517,000) |
Continuing Operations | |||
Gain (Loss) on Securities [Line Items] | |||
Net realized investment gains (losses) from continuing operations | (32,395,000) | 53,779,000 | (20,179,000) |
Discontinued Operations | |||
Gain (Loss) on Securities [Line Items] | |||
Net realized investment gains (losses) from continuing operations | 0 | 0 | (1,057,000) |
AVAILABLE-FOR-SALE | |||
Proceeds from sales | 0 | 0 | 0 |
Continuing and Discontinued Operations | |||
Gain (Loss) on Securities [Line Items] | |||
Net realized investment gains (losses) from continuing operations | (32,395,000) | 53,779,000 | (21,236,000) |
Fixed maturities | Available-for-sale | |||
Gain (Loss) on Securities [Line Items] | |||
Net realized investment gains (losses) from continuing operations | 1,787,000 | 655,000 | (254,000) |
Fixed maturities | Allowance for credit losses | |||
Gain (Loss) on Securities [Line Items] | |||
Net realized investment gains (losses) from continuing operations | (5,000) | 0 | 0 |
Fixed maturities | Change in fair value | |||
Gain (Loss) on Securities [Line Items] | |||
Net realized investment gains (losses) from continuing operations | (3,314,000) | 1,351,000 | (296,000) |
Fixed maturities | Sales | |||
Gain (Loss) on Securities [Line Items] | |||
Net realized investment gains (losses) from continuing operations | 2,950,000 | 1,993,000 | 1,226,000 |
Equity securities | Change in fair value | |||
Gain (Loss) on Securities [Line Items] | |||
Net realized investment gains (losses) from continuing operations | (6,875,000) | 51,231,000 | (21,994,000) |
Equity securities | Sales | |||
Gain (Loss) on Securities [Line Items] | |||
Net realized investment gains (losses) from continuing operations | (26,906,000) | 725,000 | 1,702,000 |
Mortgage loans on real estate | |||
Gain (Loss) on Securities [Line Items] | |||
Net realized investment gains (losses) from continuing operations | (4,000) | (26,000) | (46,000) |
Real Estate | |||
Gain (Loss) on Securities [Line Items] | |||
Net realized investment gains (losses) from continuing operations | $ (28,000) | $ (2,150,000) | $ (517,000) |
SUMMARY OF INVESTMENTS (Narrati
SUMMARY OF INVESTMENTS (Narrative) (Details) | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2019USD ($)date | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Gain (Loss) on Securities [Line Items] | ||||
Proceeds from sale of available-for-sale investments | $ 50,744,000 | $ 41,760,000 | $ 132,250,000 | |
Gross realized gains (losses) | 0 | 0 | ||
Trading securities | $ 15,256,000 | 0 | 15,256,000 | |
Remaining potential contractual obligation | 8,484,000 | |||
Investment in limited liability partnership investment fund | $ 25,000,000 | |||
Lockup period | 3 years | |||
Minimum notice period | 60 days | |||
Number of possible repurchase dates | date | 4 | |||
Investment fair value | 24,867,000 | |||
Discontinued Operations | ||||
Gain (Loss) on Securities [Line Items] | ||||
Proceeds from sale of available-for-sale investments | 0 | $ 0 | $ 0 | |
Gross realized gains (losses) | $ 0 |
SUMMARY OF INVESTMENTS (Net Inv
SUMMARY OF INVESTMENTS (Net Investment Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Other | $ 205 | $ 252 | $ 307 |
Total investment income from continuing operations | 48,127 | 67,395 | 60,554 |
Less investment expenses | 8,457 | 6,981 | 7,660 |
Net investment income from continuing operations | 39,670 | 60,414 | 65,557 |
Continuing Operations | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Net investment income from continuing operations | 39,670 | 60,414 | 52,894 |
Discontinued Operations | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Net investment income from continuing operations | 0 | 0 | 12,663 |
Fixed Maturities | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Interest income | 46,478 | 50,274 | 51,356 |
Equity securities | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Dividends on equity securities | 6,368 | 7,842 | 7,731 |
Other long-term investments | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Interest income | 1,890 | 3,115 | 8,383 |
Other long-term investments | Change in Value | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Other | (9,633) | 1,114 | (10,116) |
Mortgage-backed securities | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Interest income | 1,949 | 1,595 | 412 |
Short-term investments | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Interest income | 107 | 522 | 606 |
Cash and cash equivalents | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Interest income | $ 763 | $ 2,681 | $ 1,875 |
SUMMARY OF INVESTMENTS (Rollfor
SUMMARY OF INVESTMENTS (Rollforward of Allowance for Credit Losses for Available-for-Sale Fixed Maturity Securities) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |
Beginning balance, January 1, 2020 | $ 0 |
Additions to the allowance for credit losses for which credit losses were not previously recorded | 5 |
Reductions for securities sold during the period (realized) | 0 |
Writeoffs charged against the allowance | 0 |
Recoveries of amounts previously written off | 0 |
Ending balance, December 31, 2020 | $ 5 |
SUMMARY OF INVESTMENTS (Unreali
SUMMARY OF INVESTMENTS (Unrealized Appreciation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Change in net unrealized investment appreciation | |||
Available-for-sale fixed maturities | $ 45,305 | $ 71,648 | $ (57,475) |
Deferred policy acquisition costs | 0 | 0 | 7,274 |
Income tax effect | (9,514) | (15,046) | 10,543 |
Cumulative change in accounting principles | 0 | 0 | (191,244) |
Net unrealized investment depreciation of discontinued operations, sold | 0 | 0 | 6,714 |
Total change in net unrealized investment appreciation (depreciation), net of tax | $ 35,791 | $ 56,602 | $ (224,188) |
SUMMARY OF INVESTMENTS (Investm
SUMMARY OF INVESTMENTS (Investments in Unrealized Loss Position) (Details) $ in Thousands | Dec. 31, 2020USD ($)issue | Dec. 31, 2019USD ($)issue |
Fixed maturities | ||
Number of Issues | ||
Fixed maturities, less than 12 months | issue | 46 | 24 |
Fixed maturities, 12 months or longer | issue | 8 | 27 |
Fair Value | ||
Fixed maturities, less than 12 months | $ 256,247 | $ 107,540 |
Fixed maturities, 12 months or longer | 3,168 | 20,230 |
Fixed maturities, total | 259,415 | 127,770 |
Gross Unrealized Depreciation | ||
Fixed maturities, less than 12 months | 1,586 | 557 |
Fixed maturities, 12 months or longer | 8 | 235 |
Fixed maturities, total | $ 1,594 | $ 792 |
U.S. Treasury | ||
Number of Issues | ||
Fixed maturities, less than 12 months | issue | 5 | 0 |
Fixed maturities, 12 months or longer | issue | 0 | 2 |
Fair Value | ||
Fixed maturities, less than 12 months | $ 86,371 | $ 0 |
Fixed maturities, 12 months or longer | 0 | 4,733 |
Fixed maturities, total | 86,371 | 4,733 |
Gross Unrealized Depreciation | ||
Fixed maturities, less than 12 months | 25 | 0 |
Fixed maturities, 12 months or longer | 0 | 12 |
Fixed maturities, total | $ 25 | $ 12 |
U.S. government agency | ||
Number of Issues | ||
Fixed maturities, less than 12 months | issue | 3 | |
Fixed maturities, 12 months or longer | issue | 0 | |
Fair Value | ||
Fixed maturities, less than 12 months | $ 13,846 | |
Fixed maturities, 12 months or longer | 0 | |
Fixed maturities, total | 13,846 | |
Gross Unrealized Depreciation | ||
Fixed maturities, less than 12 months | 104 | |
Fixed maturities, 12 months or longer | 0 | |
Fixed maturities, total | $ 104 | |
Foreign bonds | ||
Number of Issues | ||
Fixed maturities, less than 12 months | issue | 1 | |
Fixed maturities, 12 months or longer | issue | 0 | |
Fair Value | ||
Fixed maturities, less than 12 months | $ 2,000 | |
Fixed maturities, 12 months or longer | 0 | |
Fixed maturities, total | 2,000 | |
Gross Unrealized Depreciation | ||
Fixed maturities, less than 12 months | 2 | |
Fixed maturities, 12 months or longer | 0 | |
Fixed maturities, total | $ 2 | |
Corporate bonds | Technology, media and telecommunications | ||
Number of Issues | ||
Fixed maturities, less than 12 months | issue | 1 | |
Fixed maturities, 12 months or longer | issue | 0 | |
Fair Value | ||
Fixed maturities, less than 12 months | $ 2,020 | |
Fixed maturities, 12 months or longer | 0 | |
Fixed maturities, total | 2,020 | |
Gross Unrealized Depreciation | ||
Fixed maturities, less than 12 months | 15 | |
Fixed maturities, 12 months or longer | 0 | |
Fixed maturities, total | $ 15 | |
Corporate bonds | Financial services | ||
Number of Issues | ||
Fixed maturities, less than 12 months | issue | 1 | 3 |
Fixed maturities, 12 months or longer | issue | 1 | 1 |
Fair Value | ||
Fixed maturities, less than 12 months | $ 2,995 | $ 10,906 |
Fixed maturities, 12 months or longer | 3,000 | 4,913 |
Fixed maturities, total | 5,995 | 15,819 |
Gross Unrealized Depreciation | ||
Fixed maturities, less than 12 months | 5 | 142 |
Fixed maturities, 12 months or longer | 7 | 88 |
Fixed maturities, total | $ 12 | $ 230 |
Mortgage-backed securities | ||
Number of Issues | ||
Fixed maturities, less than 12 months | issue | 2 | 0 |
Fixed maturities, 12 months or longer | issue | 5 | 13 |
Fair Value | ||
Fixed maturities, less than 12 months | $ 8,099 | $ 0 |
Fixed maturities, 12 months or longer | 118 | 1,585 |
Fixed maturities, total | 8,217 | 1,585 |
Gross Unrealized Depreciation | ||
Fixed maturities, less than 12 months | 53 | 0 |
Fixed maturities, 12 months or longer | 1 | 21 |
Fixed maturities, total | $ 54 | $ 21 |
Collateralized mortgage obligations | Government national mortgage association | ||
Number of Issues | ||
Fixed maturities, less than 12 months | issue | 2 | 2 |
Fixed maturities, 12 months or longer | issue | 1 | 5 |
Fair Value | ||
Fixed maturities, less than 12 months | $ 12,394 | $ 8,444 |
Fixed maturities, 12 months or longer | 24 | 3,053 |
Fixed maturities, total | 12,418 | 11,497 |
Gross Unrealized Depreciation | ||
Fixed maturities, less than 12 months | 45 | 38 |
Fixed maturities, 12 months or longer | 0 | 59 |
Fixed maturities, total | $ 45 | $ 97 |
Collateralized mortgage obligations | Federal home loan mortgage corporation | ||
Number of Issues | ||
Fixed maturities, less than 12 months | issue | 24 | 12 |
Fixed maturities, 12 months or longer | issue | 1 | 3 |
Fair Value | ||
Fixed maturities, less than 12 months | $ 97,691 | $ 50,829 |
Fixed maturities, 12 months or longer | 26 | 4,844 |
Fixed maturities, total | 97,717 | 55,673 |
Gross Unrealized Depreciation | ||
Fixed maturities, less than 12 months | 758 | 183 |
Fixed maturities, 12 months or longer | 0 | 37 |
Fixed maturities, total | $ 758 | $ 220 |
Collateralized mortgage obligations | Federal national mortgage association | ||
Number of Issues | ||
Fixed maturities, less than 12 months | issue | 10 | 4 |
Fixed maturities, 12 months or longer | issue | 0 | 3 |
Fair Value | ||
Fixed maturities, less than 12 months | $ 44,677 | $ 23,515 |
Fixed maturities, 12 months or longer | 0 | 1,102 |
Fixed maturities, total | 44,677 | 24,617 |
Gross Unrealized Depreciation | ||
Fixed maturities, less than 12 months | 683 | 90 |
Fixed maturities, 12 months or longer | 0 | 18 |
Fixed maturities, total | $ 683 | $ 108 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Narrative) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Accrued interest excluded from carrying value | $ 168 |
Other Assets | Rabbi Trust | Level 2 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash surrender value | $ 8,557 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS (Carrying Value and Estimated Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Investments | ||
Available-for-sale securities | $ 1,825,438 | $ 1,719,607 |
Trading securities | 0 | 15,256 |
Equity securities | 206,685 | 299,203 |
Fair Value | ||
Investments | ||
Equity securities | 206,685 | 299,203 |
Mortgage loans | 48,932 | 43,992 |
Other long-term investments | 69,305 | 78,410 |
Short-term investments | 175 | 175 |
Cash and cash equivalents | 87,948 | 120,722 |
Corporate-owned life insurance | 8,557 | 6,777 |
Liabilities | ||
Long term debt | 50,000 | 0 |
Fair Value | Fixed maturities: | ||
Investments | ||
Available-for-sale securities | 1,825,443 | 1,719,607 |
Trading securities | 0 | 15,256 |
Carrying Value | ||
Investments | ||
Equity securities | 206,685 | 299,203 |
Mortgage loans | 47,614 | 42,448 |
Other long-term investments | 69,305 | 78,410 |
Short-term investments | 175 | 175 |
Cash and cash equivalents | 87,948 | 120,722 |
Corporate-owned life insurance | 8,557 | 6,777 |
Liabilities | ||
Long term debt | 50,000 | 0 |
Carrying Value | Fixed maturities: | ||
Investments | ||
Available-for-sale securities | 1,825,438 | 1,719,607 |
Trading securities | $ 0 | $ 15,256 |
FAIR VALUE OF FINANCIAL INSTR_5
FAIR VALUE OF FINANCIAL INSTRUMENTS (Financial Instruments Measured at Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | $ 1,825,438 | $ 1,719,607 |
Trading and Equity Securities | 0 | 15,256 |
U.S. Treasury | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 149,938 | 69,491 |
U.S. government agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 64,518 | 100,202 |
Foreign bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 29,602 | 5,117 |
Public utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 83,502 | 63,651 |
Corporate bonds | Energy | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 25,336 | 30,124 |
Corporate bonds | Industrials | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 43,257 | 54,015 |
Corporate bonds | Consumer goods and services | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 50,567 | 49,466 |
Corporate bonds | Health care | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 7,576 | 9,480 |
Corporate bonds | Technology, media and telecommunications | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 41,636 | 27,670 |
Corporate bonds | Financial services | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 101,031 | 100,253 |
Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 20,577 | 6,356 |
Collateralized mortgage obligations | Government national mortgage association | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 86,152 | 80,356 |
Collateralized mortgage obligations | Federal home loan mortgage corporation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 152,843 | 124,502 |
Collateralized mortgage obligations | Federal national mortgage association | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 83,282 | 71,845 |
Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 926 | 750 |
Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 1,825,443 | 1,719,607 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 206,685 | 15,256 |
Short-Term Investments | 175 | 175 |
Money Market Accounts | 24,790 | 9,334 |
Corporate-Owned Life Insurance | 8,557 | 6,777 |
Total Assets Measured at Fair Value | 2,065,650 | 2,050,352 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 206,090 | 4,087 |
Short-Term Investments | 175 | 175 |
Money Market Accounts | 24,790 | 9,334 |
Corporate-Owned Life Insurance | 8,557 | 0 |
Total Assets Measured at Fair Value | 239,612 | 312,204 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 0 | 11,169 |
Short-Term Investments | 0 | 0 |
Money Market Accounts | 0 | 0 |
Corporate-Owned Life Insurance | 6,777 | |
Total Assets Measured at Fair Value | 1,824,267 | 1,736,553 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 595 | 0 |
Short-Term Investments | 0 | 0 |
Money Market Accounts | 0 | 0 |
Corporate-Owned Life Insurance | 0 | 0 |
Total Assets Measured at Fair Value | 1,771 | 1,595 |
Recurring | U.S. Treasury | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 149,938 | 69,491 |
Recurring | U.S. Treasury | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | 0 |
Recurring | U.S. Treasury | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 149,938 | 69,491 |
Recurring | U.S. Treasury | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | 0 |
Recurring | U.S. government agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 64,518 | 100,202 |
Recurring | U.S. government agency | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | 0 |
Recurring | U.S. government agency | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 64,518 | 100,202 |
Recurring | U.S. government agency | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | 0 |
Recurring | States, municipalities and political subdivisions | General obligations | Midwest | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 81,980 | 88,594 |
Recurring | States, municipalities and political subdivisions | General obligations | Northeast | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 30,450 | 31,270 |
Recurring | States, municipalities and political subdivisions | General obligations | South | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 109,970 | 115,203 |
Recurring | States, municipalities and political subdivisions | General obligations | West | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 110,021 | 110,317 |
Recurring | States, municipalities and political subdivisions | Special revenue | Midwest | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 125,098 | 139,892 |
Recurring | States, municipalities and political subdivisions | Special revenue | Northeast | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 61,076 | 61,543 |
Recurring | States, municipalities and political subdivisions | Special revenue | South | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 226,706 | 234,666 |
Recurring | States, municipalities and political subdivisions | Special revenue | West | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 139,399 | 144,844 |
Recurring | States, municipalities and political subdivisions | Level 1 | General obligations | Midwest | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | 0 |
Recurring | States, municipalities and political subdivisions | Level 1 | General obligations | Northeast | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | 0 |
Recurring | States, municipalities and political subdivisions | Level 1 | General obligations | South | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | 0 |
Recurring | States, municipalities and political subdivisions | Level 1 | General obligations | West | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | 0 |
Recurring | States, municipalities and political subdivisions | Level 1 | Special revenue | Midwest | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | 0 |
Recurring | States, municipalities and political subdivisions | Level 1 | Special revenue | Northeast | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | 0 |
Recurring | States, municipalities and political subdivisions | Level 1 | Special revenue | South | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | 0 |
Recurring | States, municipalities and political subdivisions | Level 1 | Special revenue | West | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | 0 |
Recurring | States, municipalities and political subdivisions | Level 2 | General obligations | Midwest | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 81,980 | 88,594 |
Recurring | States, municipalities and political subdivisions | Level 2 | General obligations | Northeast | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 30,450 | 31,270 |
Recurring | States, municipalities and political subdivisions | Level 2 | General obligations | South | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 109,970 | 115,203 |
Recurring | States, municipalities and political subdivisions | Level 2 | General obligations | West | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 110,021 | 110,317 |
Recurring | States, municipalities and political subdivisions | Level 2 | Special revenue | Midwest | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 125,098 | 139,892 |
Recurring | States, municipalities and political subdivisions | Level 2 | Special revenue | Northeast | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 61,076 | 61,543 |
Recurring | States, municipalities and political subdivisions | Level 2 | Special revenue | South | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 226,706 | 234,666 |
Recurring | States, municipalities and political subdivisions | Level 2 | Special revenue | West | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 139,399 | 144,844 |
Recurring | States, municipalities and political subdivisions | Level 3 | General obligations | Midwest | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | 0 |
Recurring | States, municipalities and political subdivisions | Level 3 | General obligations | Northeast | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | 0 |
Recurring | States, municipalities and political subdivisions | Level 3 | General obligations | South | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | 0 |
Recurring | States, municipalities and political subdivisions | Level 3 | General obligations | West | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | 0 |
Recurring | States, municipalities and political subdivisions | Level 3 | Special revenue | Midwest | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | 0 |
Recurring | States, municipalities and political subdivisions | Level 3 | Special revenue | Northeast | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | 0 |
Recurring | States, municipalities and political subdivisions | Level 3 | Special revenue | South | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | 0 |
Recurring | States, municipalities and political subdivisions | Level 3 | Special revenue | West | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | 0 |
Recurring | Foreign bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 29,602 | 5,117 |
Recurring | Foreign bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | 0 |
Recurring | Foreign bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 29,602 | 5,117 |
Recurring | Foreign bonds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | 0 |
Recurring | Public utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 83,502 | |
Recurring | Public utilities | Public utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 63,651 | |
Recurring | Public utilities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | |
Recurring | Public utilities | Level 1 | Public utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | |
Recurring | Public utilities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 83,502 | |
Recurring | Public utilities | Level 2 | Public utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 63,651 | |
Recurring | Public utilities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | |
Recurring | Public utilities | Level 3 | Public utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | |
Recurring | Corporate bonds | Energy | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 25,336 | 30,124 |
Recurring | Corporate bonds | Industrials | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 43,257 | 54,015 |
Recurring | Corporate bonds | Consumer goods and services | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 50,567 | 49,466 |
Trading and Equity Securities | 2,276 | |
Recurring | Corporate bonds | Health care | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 7,576 | 9,480 |
Trading and Equity Securities | 4,701 | |
Recurring | Corporate bonds | Technology, media and telecommunications | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 41,636 | 27,670 |
Trading and Equity Securities | 1,732 | |
Recurring | Corporate bonds | Financial services | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 101,031 | 100,253 |
Trading and Equity Securities | 2,460 | |
Recurring | Corporate bonds | Level 1 | Energy | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | 0 |
Recurring | Corporate bonds | Level 1 | Industrials | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | 0 |
Recurring | Corporate bonds | Level 1 | Consumer goods and services | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | 0 |
Trading and Equity Securities | 0 | |
Recurring | Corporate bonds | Level 1 | Health care | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | 0 |
Trading and Equity Securities | 0 | |
Recurring | Corporate bonds | Level 1 | Technology, media and telecommunications | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | 0 |
Trading and Equity Securities | 0 | |
Recurring | Corporate bonds | Level 1 | Financial services | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | 0 |
Trading and Equity Securities | 0 | |
Recurring | Corporate bonds | Level 2 | Energy | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 25,336 | 30,124 |
Recurring | Corporate bonds | Level 2 | Industrials | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 43,257 | 54,015 |
Recurring | Corporate bonds | Level 2 | Consumer goods and services | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 50,567 | 49,466 |
Trading and Equity Securities | 2,276 | |
Recurring | Corporate bonds | Level 2 | Health care | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 7,576 | 9,480 |
Trading and Equity Securities | 4,701 | |
Recurring | Corporate bonds | Level 2 | Technology, media and telecommunications | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 41,636 | 27,670 |
Trading and Equity Securities | 1,732 | |
Recurring | Corporate bonds | Level 2 | Financial services | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 100,781 | 100,003 |
Trading and Equity Securities | 2,460 | |
Recurring | Corporate bonds | Level 3 | Energy | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | 0 |
Recurring | Corporate bonds | Level 3 | Industrials | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | 0 |
Recurring | Corporate bonds | Level 3 | Consumer goods and services | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | 0 |
Trading and Equity Securities | 0 | |
Recurring | Corporate bonds | Level 3 | Health care | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | 0 |
Trading and Equity Securities | 0 | |
Recurring | Corporate bonds | Level 3 | Technology, media and telecommunications | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | 0 |
Trading and Equity Securities | 0 | |
Recurring | Corporate bonds | Level 3 | Financial services | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 250 | 250 |
Trading and Equity Securities | 0 | |
Recurring | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 20,577 | 6,356 |
Recurring | Mortgage-backed securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | 0 |
Recurring | Mortgage-backed securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 20,577 | 6,356 |
Recurring | Mortgage-backed securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | 0 |
Recurring | Collateralized mortgage obligations | Government national mortgage association | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 86,152 | 80,356 |
Recurring | Collateralized mortgage obligations | Federal home loan mortgage corporation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 152,843 | 124,502 |
Recurring | Collateralized mortgage obligations | Federal national mortgage association | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 83,282 | 71,845 |
Recurring | Collateralized mortgage obligations | Level 1 | Government national mortgage association | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | 0 |
Recurring | Collateralized mortgage obligations | Level 1 | Federal home loan mortgage corporation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | 0 |
Recurring | Collateralized mortgage obligations | Level 1 | Federal national mortgage association | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | 0 |
Recurring | Collateralized mortgage obligations | Level 2 | Government national mortgage association | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 86,152 | 80,356 |
Recurring | Collateralized mortgage obligations | Level 2 | Federal home loan mortgage corporation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 152,843 | 124,502 |
Recurring | Collateralized mortgage obligations | Level 2 | Federal national mortgage association | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 83,282 | 71,845 |
Recurring | Collateralized mortgage obligations | Level 3 | Government national mortgage association | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | 0 |
Recurring | Collateralized mortgage obligations | Level 3 | Federal home loan mortgage corporation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | 0 |
Recurring | Collateralized mortgage obligations | Level 3 | Federal national mortgage association | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | 0 |
Recurring | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 926 | 750 |
Recurring | Asset-backed securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | 0 |
Recurring | Asset-backed securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | |
Recurring | Asset-backed securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 926 | 750 |
Recurring | Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 1,825,443 | 1,719,607 |
Recurring | Fixed maturities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 0 | 0 |
Recurring | Fixed maturities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 1,824,267 | 1,718,607 |
Recurring | Fixed maturities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 1,176 | 1,000 |
Recurring | Redeemable preferred stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 4,087 | |
Recurring | Redeemable preferred stocks | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 4,087 | |
Recurring | Redeemable preferred stocks | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 0 | |
Recurring | Redeemable preferred stocks | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 0 | |
Recurring | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 299,203 | |
Recurring | Equity securities | Public utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 16,320 | 16,295 |
Recurring | Equity securities | Energy | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 9,918 | 14,639 |
Recurring | Equity securities | Industrials | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 36,556 | 57,330 |
Recurring | Equity securities | Consumer goods and services | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 32,061 | 29,935 |
Recurring | Equity securities | Health care | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 24,549 | 27,285 |
Recurring | Equity securities | Technology, media and telecommunications | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 17,109 | 127,780 |
Recurring | Equity securities | Financial services | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 69,577 | 19,265 |
Recurring | Equity securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 298,608 | |
Recurring | Equity securities | Level 1 | Public utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 16,320 | 16,295 |
Recurring | Equity securities | Level 1 | Energy | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 9,918 | 14,639 |
Recurring | Equity securities | Level 1 | Industrials | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 36,556 | 57,330 |
Recurring | Equity securities | Level 1 | Consumer goods and services | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 32,061 | 29,935 |
Recurring | Equity securities | Level 1 | Health care | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 24,549 | 27,285 |
Recurring | Equity securities | Level 1 | Technology, media and telecommunications | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 17,109 | 127,780 |
Recurring | Equity securities | Level 1 | Financial services | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 69,577 | 19,265 |
Recurring | Equity securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 0 | |
Recurring | Equity securities | Level 2 | Public utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 0 | 0 |
Recurring | Equity securities | Level 2 | Energy | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 0 | 0 |
Recurring | Equity securities | Level 2 | Industrials | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 0 | 0 |
Recurring | Equity securities | Level 2 | Consumer goods and services | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 0 | 0 |
Recurring | Equity securities | Level 2 | Health care | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 0 | 0 |
Recurring | Equity securities | Level 2 | Technology, media and telecommunications | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 0 | 0 |
Recurring | Equity securities | Level 2 | Financial services | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 0 | 0 |
Recurring | Equity securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 595 | |
Recurring | Equity securities | Level 3 | Public utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 0 | 0 |
Recurring | Equity securities | Level 3 | Energy | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 0 | 0 |
Recurring | Equity securities | Level 3 | Industrials | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 0 | 0 |
Recurring | Equity securities | Level 3 | Consumer goods and services | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 0 | 0 |
Recurring | Equity securities | Level 3 | Health care | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 0 | 0 |
Recurring | Equity securities | Level 3 | Technology, media and telecommunications | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 0 | 0 |
Recurring | Equity securities | Level 3 | Financial services | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 0 | 0 |
Recurring | Nonredeemable preferred stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 595 | 6,674 |
Recurring | Nonredeemable preferred stocks | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 6,079 | |
Recurring | Nonredeemable preferred stocks | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 0 | 0 |
Recurring | Nonredeemable preferred stocks | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | $ 595 | $ 595 |
FAIR VALUE OF FINANCIAL INSTR_6
FAIR VALUE OF FINANCIAL INSTRUMENTS (Quantitative Information About Level 3 Fair Value Measurements) (Details) $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Nonredeemable preferred stocks | $ 206,685 | $ 299,203 |
Recurring | Continuing Operations | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fixed Maturities asset-backed securities | 1,771 | 1,595 |
Recurring | Corporate bonds | Continuing Operations | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fixed Maturities asset-backed securities | 250 | 250 |
Recurring | Asset-backed securities | Continuing Operations | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fixed Maturities asset-backed securities | 926 | $ 750 |
Recurring | Level 3 | Asset-backed securities | Continuing Operations | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fixed Maturities asset-backed securities | $ 926 | |
Recurring | Level 3 | Asset-backed securities | Discounted cash flow | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Available-for-sale securities, range of weighted average significant unobservable inputs | 0.04 | |
Recurring | Level 3 | Asset-backed securities | Discounted cash flow | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Available-for-sale securities, range of weighted average significant unobservable inputs | 0.06 | |
Recurring | Level 3 | Nonredeemable preferred stocks | Continuing Operations | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fixed Maturities asset-backed securities | $ 595 | |
Recurring | Level 3 | Nonredeemable preferred stocks | Discounted cash flow | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Nonredeemable preferred stocks, range of weighted average significant unobservable inputs | 0.03 | |
Recurring | Level 3 | Nonredeemable preferred stocks | Discounted cash flow | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Nonredeemable preferred stocks, range of weighted average significant unobservable inputs | 0.04 | |
Recurring | Level 3 | Financial services | Corporate bonds | Continuing Operations | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fixed Maturities asset-backed securities | $ 250 |
FAIR VALUE OF FINANCIAL INSTR_7
FAIR VALUE OF FINANCIAL INSTRUMENTS (Level 3 Securities) (Details) - Recurring - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Continuing Operations | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | $ 1,595 | |
Unrealized gains (losses) | 176 | |
Ending Balance | 1,771 | $ 1,595 |
Continuing Operations | Corporate bonds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 250 | |
Unrealized gains (losses) | 0 | |
Ending Balance | 250 | 250 |
Continuing Operations | Asset-backed securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 750 | |
Unrealized gains (losses) | 176 | |
Ending Balance | 926 | 750 |
Continuing Operations | Equities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 595 | |
Unrealized gains (losses) | 0 | |
Ending Balance | 595 | 595 |
Continuing and Discontinuing Operations | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 1,595 | 1,511 |
Unrealized gains (losses) | 84 | |
Purchases | 100 | |
Disposals | (100) | |
Ending Balance | 1,595 | |
Continuing and Discontinuing Operations | Corporate bonds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 250 | 250 |
Unrealized gains (losses) | 0 | |
Purchases | 100 | |
Disposals | (100) | |
Ending Balance | 250 | |
Continuing and Discontinuing Operations | Asset-backed securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 750 | 666 |
Unrealized gains (losses) | 84 | |
Purchases | 0 | |
Disposals | 0 | |
Ending Balance | 750 | |
Continuing and Discontinuing Operations | Equities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | $ 595 | 595 |
Unrealized gains (losses) | 0 | |
Purchases | 0 | |
Disposals | 0 | |
Ending Balance | $ 595 |
FAIR VALUE OF FINANCIAL INSTR_8
FAIR VALUE OF FINANCIAL INSTRUMENTS (Commercial Mortgage Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | $ 47,690 | $ 42,520 |
Valuation allowance | (76) | (72) |
Mortgage loans, net | $ 47,614 | $ 42,448 |
Percent of Total | 100.00% | 100.00% |
Multifamily | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | $ 17,038 | $ 11,741 |
Percent of Total | 35.70% | 27.60% |
Office | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | $ 11,861 | $ 11,848 |
Percent of Total | 24.90% | 27.90% |
Industrials | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | $ 10,124 | $ 10,124 |
Percent of Total | 21.20% | 23.80% |
Retail | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | $ 2,227 | $ 2,227 |
Percent of Total | 4.70% | 5.20% |
Mixed use/Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | $ 6,440 | $ 6,580 |
Percent of Total | 13.50% | 15.50% |
East North Central | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | $ 3,245 | $ 3,245 |
Percent of Total | 6.80% | 7.60% |
Southern Atlantic | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | $ 9,752 | $ 7,026 |
Percent of Total | 20.50% | 16.50% |
East South Central | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | $ 8,197 | $ 8,358 |
Percent of Total | 17.20% | 19.70% |
New England | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | $ 6,588 | $ 6,588 |
Percent of Total | 13.80% | 15.50% |
Middle Atlantic | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | $ 14,936 | $ 15,076 |
Percent of Total | 31.20% | 35.50% |
Mountain | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | $ 2,227 | $ 2,227 |
Percent of Total | 4.70% | 5.20% |
Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | $ 2,745 | $ 0 |
Percent of Total | 5.80% | 0.00% |
Less than 65% | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | $ 30,361 | $ 34,024 |
65%-75% | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | $ 17,329 | $ 8,496 |
FAIR VALUE OF FINANCIAL INSTR_9
FAIR VALUE OF FINANCIAL INSTRUMENTS (Amortized Cost Basis by Year of Origination and Credit Quality Indicator) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | $ 5,537 | |
2019 | 16,889 | |
2018 | 25,264 | |
Total | 47,690 | $ 42,520 |
Current-period write-offs | 0 | |
Current-period recoveries | 0 | |
Current-period net write-offs | 0 | |
1-2 internal grade | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 5,537 | |
2019 | 8,393 | |
2018 | 18,676 | |
Total | 32,606 | |
3-4 internal grade | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 8,496 | |
2018 | 6,588 | |
Total | 15,084 | |
5 internal grade | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
Total | 0 | |
6 internal grade | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
Total | 0 | |
7 internal grade | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
Total | $ 0 |
FAIR VALUE OF FINANCIAL INST_10
FAIR VALUE OF FINANCIAL INSTRUMENTS (Rollforward of Allowance for Mortgage Loan Losses) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Beginning balance, January 1, 2020 | $ 72 |
Current-period provision for expected credit losses | 4 |
Write-off charged against the allowance, if any | 0 |
Recoveries of amounts previously written off, if any | 0 |
Ending balance of the allowance for mortgage loan losses, December 31, 2020 | $ 76 |
REINSURANCE (Narrative) (Detail
REINSURANCE (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($)program | Dec. 31, 2018USD ($) | |
Reinsurance [Line Items] | |||
Number of additional assumed programs | program | 2 | ||
Number of programs not renewed | program | 1 | ||
Casualty Excess and Property Excess | Maximum | |||
Reinsurance [Line Items] | |||
Reinsurance recoverables | $ 22,500 | ||
Property and casualty business | |||
Reinsurance [Line Items] | |||
Reinsurance recoverables | $ 28,887 | $ 3,883 | |
Property and casualty business | Casualty Excess and Property Excess | |||
Reinsurance [Line Items] | |||
Reinsurance retention policy, reinsured risk, percentage | 6.37% | 6.66% | |
Property and casualty business | Casualty Excess and Property Excess | Minimum | |||
Reinsurance [Line Items] | |||
Retention amount | $ 58,500 | $ 58,500 | $ 58,500 |
Property and casualty business | Casualty Excess and Property Excess | Maximum | |||
Reinsurance [Line Items] | |||
Reinsurance recoverables | 30,000 | 30,000 | |
Retention amount | $ 71,500 | $ 71,500 | $ 71,500 |
Percent of program placed | 75.00% | ||
Life Insurance | Discontinued Operations | Top Five Reinsurers | |||
Reinsurance [Line Items] | |||
Percentage of insurance in force | 6.78% |
REINSURANCE (Ceded and Assumed
REINSURANCE (Ceded and Assumed Reinsurance) (Details) - Property and casualty business - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reinsurance [Line Items] | |||
Ceded premiums written | $ 88,339 | $ 74,511 | $ 66,800 |
Ceded premiums earned | 84,924 | 72,023 | 63,487 |
Loss and loss settlement expenses ceded | 185,653 | 28,447 | 22,317 |
Assumed premiums written | 34,371 | 27,869 | 16,761 |
Assumed premiums earned | 33,679 | 25,412 | 16,957 |
Loss and loss settlement expenses assumed | $ 29,141 | $ 14,813 | $ (3,954) |
REINSURANCE (Reinsurance Progra
REINSURANCE (Reinsurance Programs) (Details) - Property and casualty business - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Casualty excess of loss | |||
Reinsurance [Line Items] | |||
Stated Retention | $ 2,500,000 | $ 2,500,000 | $ 2,500,000 |
Limits | $ 60,000,000 | $ 60,000,000 | $ 60,000,000 |
Percentage of Coverage | 100.00% | 100.00% | 100.00% |
Coverage | $ 57,500,000 | $ 57,500,000 | $ 57,500,000 |
Property excess of loss | |||
Reinsurance [Line Items] | |||
Stated Retention | 2,500,000 | 2,500,000 | 2,500,000 |
Limits | $ 25,000,000 | $ 25,000,000 | $ 25,000,000 |
Percentage of Coverage | 100.00% | 100.00% | 100.00% |
Coverage | $ 22,500,000 | $ 22,500,000 | $ 22,500,000 |
Surety excess of loss | |||
Reinsurance [Line Items] | |||
Stated Retention | 1,500,000 | 1,500,000 | 1,500,000 |
Limits | $ 45,000,000 | $ 45,000,000 | $ 45,000,000 |
Percentage of Coverage | 100.00% | 100.00% | 100.00% |
Coverage | $ 43,500,000 | $ 43,500,000 | $ 43,500,000 |
Property catastrophe, excess | |||
Reinsurance [Line Items] | |||
Stated Retention | 20,000,000 | 20,000,000 | 20,000,000 |
Limits | $ 250,000,000 | $ 250,000,000 | $ 250,000,000 |
Percentage of Coverage | 100.00% | 100.00% | 100.00% |
Coverage | $ 230,000,000 | $ 230,000,000 | $ 230,000,000 |
Boiler and machinery | |||
Reinsurance [Line Items] | |||
Limits | $ 50,000,000 | $ 50,000,000 | $ 50,000,000 |
Percentage of Coverage | 100.00% | 100.00% | 100.00% |
Coverage | $ 50,000,000 | $ 50,000,000 | $ 50,000,000 |
REINSURANCE (Discontinued Opera
REINSURANCE (Discontinued Operations - Life Insurance Business) (Details) - Discontinued Operations - Life Insurance - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reinsurance [Line Items] | |||
Ceded insurance in-force | $ 0 | $ 0 | $ 0 |
Ceded premiums earned | 0 | 0 | 716 |
Loss and loss settlement expenses ceded | $ 0 | $ 0 | $ 1,473 |
RESERVES FOR LOSSES AND LOSS _3
RESERVES FOR LOSSES AND LOSS SETTLEMENT EXPENSES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||
Gross liability for losses and loss settlement expenses at beginning of year | $ 1,421,754 | $ 1,312,483 | $ 1,224,183 |
Ceded losses and loss settlement expenses | (68,536) | (57,094) | (59,871) |
Net liability for losses and loss settlement expenses at beginning of year | 1,353,218 | 1,255,389 | 1,164,312 |
Losses and loss settlement expenses incurred for claims occurring during | |||
Current year | 887,119 | 835,507 | 785,778 |
Prior years | (17,652) | (5,335) | (54,167) |
Total incurred | 869,467 | 830,172 | 731,611 |
Losses and loss settlement expense payments for claims occurring during | |||
Current year | 354,635 | 333,975 | 306,032 |
Prior years | 421,762 | 398,368 | 334,502 |
Total paid | 776,397 | 732,343 | 640,534 |
Net liability for losses and loss settlement expenses at end of year | 1,446,288 | 1,353,218 | 1,255,389 |
Ceded loss and loss settlement expenses | 131,843 | 68,536 | 57,094 |
Gross liability for losses and loss settlement expenses at end of year | $ 1,578,131 | $ 1,421,754 | $ 1,312,483 |
RESERVES FOR LOSSES AND LOSS _4
RESERVES FOR LOSSES AND LOSS SETTLEMENT EXPENSES (Narrative) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Workers' compensation | |
Liability for Claims and Claims Adjustment Expense [Line Items] | |
Unfavorable (favorable) reserve development | $ (25,428) |
Commercial fire and allied | |
Liability for Claims and Claims Adjustment Expense [Line Items] | |
Unfavorable (favorable) reserve development | (10,655) |
Fidelity and surety | |
Liability for Claims and Claims Adjustment Expense [Line Items] | |
Unfavorable (favorable) reserve development | (2,068) |
Personal automobile | |
Liability for Claims and Claims Adjustment Expense [Line Items] | |
Unfavorable (favorable) reserve development | (1,851) |
Commercial liability | |
Liability for Claims and Claims Adjustment Expense [Line Items] | |
Unfavorable (favorable) reserve development | 12,845 |
Reinsurance assumed | |
Liability for Claims and Claims Adjustment Expense [Line Items] | |
Unfavorable (favorable) reserve development | 5,972 |
Commercial automobile | |
Liability for Claims and Claims Adjustment Expense [Line Items] | |
Unfavorable (favorable) reserve development | $ 4,024 |
RESERVES FOR LOSSES AND LOSS _5
RESERVES FOR LOSSES AND LOSS SETTLEMENT EXPENSES (Incurred Claims and Allocated Claim Adjustment Expenses) (Details) claim in Thousands, $ in Thousands | Dec. 31, 2020USD ($)claim | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) |
Commercial other liability | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 1,310,041 | |||||||||
Commercial fire and allied | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | 1,370,664 | |||||||||
Cumulative development | (10,655) | |||||||||
Commercial automobile | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | 1,745,748 | |||||||||
Cumulative development | 4,024 | |||||||||
Workers' compensation | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | 477,439 | |||||||||
Cumulative development | (25,428) | |||||||||
Personal | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | 516,338 | |||||||||
2011 | Commercial other liability | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | 81,394 | $ 81,694 | $ 80,338 | $ 81,463 | $ 80,801 | $ 79,591 | $ 88,200 | $ 88,371 | $ 64,738 | $ 81,522 |
Total of incurred but not reported liabilities plus expected development on reported claims | 11,202 | |||||||||
Cumulative development | $ (128) | |||||||||
Cumulative number of reported claims | claim | 5,634 | |||||||||
2011 | Commercial fire and allied | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 121,982 | 121,749 | 121,319 | 121,434 | 120,219 | 119,820 | 120,492 | 117,082 | 142,330 | 148,220 |
Total of incurred but not reported liabilities plus expected development on reported claims | 285 | |||||||||
Cumulative development | $ (26,238) | |||||||||
Cumulative number of reported claims | claim | 16,079 | |||||||||
2011 | Commercial automobile | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 90,972 | 90,643 | 90,838 | 90,766 | 91,336 | 92,379 | 92,519 | 90,750 | 87,299 | 84,887 |
Total of incurred but not reported liabilities plus expected development on reported claims | 32 | |||||||||
Cumulative development | $ 6,085 | |||||||||
Cumulative number of reported claims | claim | 15,262 | |||||||||
2011 | Workers' compensation | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 31,621 | 32,384 | 32,707 | 33,352 | 33,314 | 33,585 | 34,309 | 35,352 | 38,481 | 39,967 |
Total of incurred but not reported liabilities plus expected development on reported claims | 159 | |||||||||
Cumulative development | $ (8,346) | |||||||||
Cumulative number of reported claims | claim | 3,965 | |||||||||
2011 | Personal | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 46,751 | 46,752 | 46,761 | 46,733 | 47,013 | 46,968 | 47,035 | 47,090 | 48,534 | $ 50,014 |
Total of incurred but not reported liabilities plus expected development on reported claims | 0 | |||||||||
Cumulative development | $ (3,263) | |||||||||
Cumulative number of reported claims | claim | 14,848 | |||||||||
2012 | Commercial other liability | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 89,900 | 91,571 | 89,731 | 91,346 | 92,537 | 91,980 | 94,195 | 96,158 | 100,389 | |
Total of incurred but not reported liabilities plus expected development on reported claims | 12,862 | |||||||||
Cumulative development | $ (10,489) | |||||||||
Cumulative number of reported claims | claim | 5,841 | |||||||||
2012 | Commercial fire and allied | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 110,245 | 109,480 | 109,687 | 108,623 | 107,958 | 108,047 | 108,774 | 110,448 | 138,602 | |
Total of incurred but not reported liabilities plus expected development on reported claims | 634 | |||||||||
Cumulative development | $ (28,357) | |||||||||
Cumulative number of reported claims | claim | 6,466 | |||||||||
2012 | Commercial automobile | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 96,176 | 96,059 | 96,305 | 96,389 | 96,594 | 95,321 | 94,755 | 90,848 | 100,039 | |
Total of incurred but not reported liabilities plus expected development on reported claims | 0 | |||||||||
Cumulative development | $ (3,863) | |||||||||
Cumulative number of reported claims | claim | 14,365 | |||||||||
2012 | Workers' compensation | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 38,290 | 39,063 | 39,182 | 39,015 | 38,553 | 38,423 | 42,158 | 46,279 | 48,848 | |
Total of incurred but not reported liabilities plus expected development on reported claims | 229 | |||||||||
Cumulative development | $ (10,558) | |||||||||
Cumulative number of reported claims | claim | 3,992 | |||||||||
2012 | Personal | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 44,160 | 44,158 | 44,165 | 44,352 | 44,715 | 46,150 | 46,403 | 46,199 | $ 47,924 | |
Total of incurred but not reported liabilities plus expected development on reported claims | 1 | |||||||||
Cumulative development | $ (3,764) | |||||||||
Cumulative number of reported claims | claim | 10,790 | |||||||||
2013 | Commercial other liability | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 85,999 | 86,082 | 88,816 | 85,399 | 86,119 | 90,502 | 91,460 | 104,982 | ||
Total of incurred but not reported liabilities plus expected development on reported claims | 3,498 | |||||||||
Cumulative development | $ (18,983) | |||||||||
Cumulative number of reported claims | claim | 6,406 | |||||||||
2013 | Commercial fire and allied | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 92,855 | 92,988 | 93,858 | 93,826 | 92,212 | 91,498 | 88,550 | 91,521 | ||
Total of incurred but not reported liabilities plus expected development on reported claims | 61 | |||||||||
Cumulative development | $ 1,334 | |||||||||
Cumulative number of reported claims | claim | 6,662 | |||||||||
2013 | Commercial automobile | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 106,140 | 104,886 | 105,248 | 104,980 | 103,726 | 102,943 | 98,037 | 104,356 | ||
Total of incurred but not reported liabilities plus expected development on reported claims | 356 | |||||||||
Cumulative development | $ 1,784 | |||||||||
Cumulative number of reported claims | claim | 15,528 | |||||||||
2013 | Workers' compensation | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 50,349 | 50,984 | 51,753 | 52,761 | 54,584 | 56,369 | 62,579 | 64,048 | ||
Total of incurred but not reported liabilities plus expected development on reported claims | 307 | |||||||||
Cumulative development | $ (13,699) | |||||||||
Cumulative number of reported claims | claim | 4,255 | |||||||||
2013 | Personal | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 36,467 | 36,486 | 36,661 | 36,729 | 37,086 | 37,262 | 38,525 | $ 39,232 | ||
Total of incurred but not reported liabilities plus expected development on reported claims | 1 | |||||||||
Cumulative development | $ (2,765) | |||||||||
Cumulative number of reported claims | claim | 9,250 | |||||||||
2014 | Commercial other liability | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 107,417 | 105,507 | 102,487 | 97,809 | 106,486 | 117,958 | 118,928 | |||
Total of incurred but not reported liabilities plus expected development on reported claims | 4,907 | |||||||||
Cumulative development | $ (11,511) | |||||||||
Cumulative number of reported claims | claim | 6,570 | |||||||||
2014 | Commercial fire and allied | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 127,068 | 126,811 | 128,503 | 128,185 | 128,762 | 131,198 | 126,216 | |||
Total of incurred but not reported liabilities plus expected development on reported claims | 108 | |||||||||
Cumulative development | $ 852 | |||||||||
Cumulative number of reported claims | claim | 7,935 | |||||||||
2014 | Commercial automobile | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 120,599 | 121,077 | 120,385 | 118,869 | 113,720 | 106,076 | 107,723 | |||
Total of incurred but not reported liabilities plus expected development on reported claims | 457 | |||||||||
Cumulative development | $ 12,876 | |||||||||
Cumulative number of reported claims | claim | 17,320 | |||||||||
2014 | Workers' compensation | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 52,889 | 53,023 | 54,636 | 56,630 | 58,284 | 60,729 | 64,051 | |||
Total of incurred but not reported liabilities plus expected development on reported claims | 699 | |||||||||
Cumulative development | $ (11,162) | |||||||||
Cumulative number of reported claims | claim | 4,801 | |||||||||
2014 | Personal | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 52,810 | 52,702 | 52,615 | 52,782 | 52,944 | 52,661 | $ 53,910 | |||
Total of incurred but not reported liabilities plus expected development on reported claims | 12 | |||||||||
Cumulative development | $ (1,100) | |||||||||
Cumulative number of reported claims | claim | 10,959 | |||||||||
2015 | Commercial other liability | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 131,325 | 129,945 | 127,091 | 120,005 | 125,307 | 137,386 | ||||
Total of incurred but not reported liabilities plus expected development on reported claims | 10,405 | |||||||||
Cumulative development | $ (6,061) | |||||||||
Cumulative number of reported claims | claim | 7,732 | |||||||||
2015 | Commercial fire and allied | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 104,646 | 105,218 | 108,235 | 110,633 | 108,293 | 103,177 | ||||
Total of incurred but not reported liabilities plus expected development on reported claims | 144 | |||||||||
Cumulative development | $ 1,469 | |||||||||
Cumulative number of reported claims | claim | 7,579 | |||||||||
2015 | Commercial automobile | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 137,335 | 137,395 | 138,987 | 132,206 | 129,816 | 125,506 | ||||
Total of incurred but not reported liabilities plus expected development on reported claims | 500 | |||||||||
Cumulative development | $ 11,829 | |||||||||
Cumulative number of reported claims | claim | 20,079 | |||||||||
2015 | Workers' compensation | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 44,706 | 46,019 | 46,682 | 51,003 | 55,578 | 53,788 | ||||
Total of incurred but not reported liabilities plus expected development on reported claims | 578 | |||||||||
Cumulative development | $ (9,082) | |||||||||
Cumulative number of reported claims | claim | 5,666 | |||||||||
2015 | Personal | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 40,194 | 40,220 | 40,368 | 40,336 | 41,088 | $ 42,848 | ||||
Total of incurred but not reported liabilities plus expected development on reported claims | 22 | |||||||||
Cumulative development | $ (2,654) | |||||||||
Cumulative number of reported claims | claim | 9,548 | |||||||||
2016 | Commercial other liability | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 140,784 | 142,397 | 136,275 | 130,041 | 139,144 | |||||
Total of incurred but not reported liabilities plus expected development on reported claims | 15,698 | |||||||||
Cumulative development | $ 1,640 | |||||||||
Cumulative number of reported claims | claim | 8,882 | |||||||||
2016 | Commercial fire and allied | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 143,108 | 143,724 | 143,721 | 144,208 | 147,473 | |||||
Total of incurred but not reported liabilities plus expected development on reported claims | 667 | |||||||||
Cumulative development | $ (4,365) | |||||||||
Cumulative number of reported claims | claim | 9,849 | |||||||||
2016 | Commercial automobile | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 173,823 | 175,657 | 174,337 | 175,357 | 174,018 | |||||
Total of incurred but not reported liabilities plus expected development on reported claims | 1,449 | |||||||||
Cumulative development | $ (195) | |||||||||
Cumulative number of reported claims | claim | 27,288 | |||||||||
2016 | Workers' compensation | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 53,964 | 55,168 | 61,648 | 66,575 | 70,419 | |||||
Total of incurred but not reported liabilities plus expected development on reported claims | 815 | |||||||||
Cumulative development | $ (16,455) | |||||||||
Cumulative number of reported claims | claim | 7,927 | |||||||||
2016 | Personal | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 45,113 | 45,961 | 45,379 | 45,840 | $ 48,072 | |||||
Total of incurred but not reported liabilities plus expected development on reported claims | 58 | |||||||||
Cumulative development | $ (2,959) | |||||||||
Cumulative number of reported claims | claim | 11,896 | |||||||||
2017 | Commercial other liability | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 156,369 | 152,547 | 139,032 | 139,602 | ||||||
Total of incurred but not reported liabilities plus expected development on reported claims | 24,426 | |||||||||
Cumulative development | $ 16,767 | |||||||||
Cumulative number of reported claims | claim | 8,883 | |||||||||
2017 | Commercial fire and allied | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 161,693 | 160,946 | 160,240 | 155,139 | ||||||
Total of incurred but not reported liabilities plus expected development on reported claims | 1,536 | |||||||||
Cumulative development | $ 6,554 | |||||||||
Cumulative number of reported claims | claim | 13,445 | |||||||||
2017 | Commercial automobile | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 233,159 | 235,110 | 224,553 | 227,919 | ||||||
Total of incurred but not reported liabilities plus expected development on reported claims | 5,553 | |||||||||
Cumulative development | $ 5,240 | |||||||||
Cumulative number of reported claims | claim | 32,838 | |||||||||
2017 | Workers' compensation | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 51,874 | 55,982 | 69,528 | 76,184 | ||||||
Total of incurred but not reported liabilities plus expected development on reported claims | 1,182 | |||||||||
Cumulative development | $ (24,310) | |||||||||
Cumulative number of reported claims | claim | 8,173 | |||||||||
2017 | Personal | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 58,544 | 58,695 | 59,342 | $ 60,330 | ||||||
Total of incurred but not reported liabilities plus expected development on reported claims | 119 | |||||||||
Cumulative development | $ (1,786) | |||||||||
Cumulative number of reported claims | claim | 14,691 | |||||||||
2018 | Commercial other liability | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 176,496 | 172,894 | 163,059 | |||||||
Total of incurred but not reported liabilities plus expected development on reported claims | 34,486 | |||||||||
Cumulative development | $ 13,437 | |||||||||
Cumulative number of reported claims | claim | 8,590 | |||||||||
2018 | Commercial fire and allied | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 146,378 | 146,951 | 143,280 | |||||||
Total of incurred but not reported liabilities plus expected development on reported claims | 2,610 | |||||||||
Cumulative development | $ 3,098 | |||||||||
Cumulative number of reported claims | claim | 10,683 | |||||||||
2018 | Commercial automobile | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 253,045 | 245,173 | 236,629 | |||||||
Total of incurred but not reported liabilities plus expected development on reported claims | 14,134 | |||||||||
Cumulative development | $ 16,416 | |||||||||
Cumulative number of reported claims | claim | 34,380 | |||||||||
2018 | Workers' compensation | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 59,192 | 67,883 | 71,972 | |||||||
Total of incurred but not reported liabilities plus expected development on reported claims | 1,802 | |||||||||
Cumulative development | $ (12,780) | |||||||||
Cumulative number of reported claims | claim | 7,947 | |||||||||
2018 | Personal | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 52,715 | 51,721 | $ 51,639 | |||||||
Total of incurred but not reported liabilities plus expected development on reported claims | 365 | |||||||||
Cumulative development | $ 1,076 | |||||||||
Cumulative number of reported claims | claim | 13,658 | |||||||||
2019 | Commercial other liability | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 169,344 | 149,173 | ||||||||
Total of incurred but not reported liabilities plus expected development on reported claims | 46,518 | |||||||||
Cumulative development | $ 20,171 | |||||||||
Cumulative number of reported claims | claim | 7,537 | |||||||||
2019 | Commercial fire and allied | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 155,482 | 164,030 | ||||||||
Total of incurred but not reported liabilities plus expected development on reported claims | 4,271 | |||||||||
Cumulative development | $ (8,548) | |||||||||
Cumulative number of reported claims | claim | 10,992 | |||||||||
2019 | Commercial automobile | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 291,139 | 279,229 | ||||||||
Total of incurred but not reported liabilities plus expected development on reported claims | 38,451 | |||||||||
Cumulative development | $ 11,910 | |||||||||
Cumulative number of reported claims | claim | 34,393 | |||||||||
2019 | Workers' compensation | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 49,189 | 52,136 | ||||||||
Total of incurred but not reported liabilities plus expected development on reported claims | 2,335 | |||||||||
Cumulative development | $ (2,947) | |||||||||
Cumulative number of reported claims | claim | 7,113 | |||||||||
2019 | Personal | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 58,378 | $ 59,547 | ||||||||
Total of incurred but not reported liabilities plus expected development on reported claims | 581 | |||||||||
Cumulative development | $ (1,169) | |||||||||
Cumulative number of reported claims | claim | 13,466 | |||||||||
2020 | Commercial other liability | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 171,013 | |||||||||
Total of incurred but not reported liabilities plus expected development on reported claims | $ 83,792 | |||||||||
Cumulative number of reported claims | claim | 4,478 | |||||||||
2020 | Commercial fire and allied | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 207,207 | |||||||||
Total of incurred but not reported liabilities plus expected development on reported claims | $ 29,773 | |||||||||
Cumulative number of reported claims | claim | 13,368 | |||||||||
2020 | Commercial automobile | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 243,360 | |||||||||
Total of incurred but not reported liabilities plus expected development on reported claims | $ 71,185 | |||||||||
Cumulative number of reported claims | claim | 22,331 | |||||||||
2020 | Workers' compensation | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 45,365 | |||||||||
Total of incurred but not reported liabilities plus expected development on reported claims | $ 4,289 | |||||||||
Cumulative number of reported claims | claim | 3,909 | |||||||||
2020 | Personal | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 81,206 | |||||||||
Total of incurred but not reported liabilities plus expected development on reported claims | $ 6,588 | |||||||||
Cumulative number of reported claims | claim | 15,585 |
RESERVES FOR LOSSES AND LOSS _6
RESERVES FOR LOSSES AND LOSS SETTLEMENT EXPENSES (Cumulative Paid Claims and Allocated Claim Adjustment Expenses) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Liabilities for unpaid losses and loss settlement expenses, net of reinsurance | $ 1,347,699 | |||||||||
Commercial other liability | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 760,031 | |||||||||
All outstanding liabilities for unpaid losses and loss settlement expenses before 2011, net of reinsurance | 35,801 | |||||||||
Liabilities for unpaid losses and loss settlement expenses, net of reinsurance | 585,811 | |||||||||
Commercial fire and allied | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 1,242,097 | |||||||||
All outstanding liabilities for unpaid losses and loss settlement expenses before 2011, net of reinsurance | 723 | |||||||||
Liabilities for unpaid losses and loss settlement expenses, net of reinsurance | 129,290 | |||||||||
Commercial automobile | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 1,311,376 | |||||||||
All outstanding liabilities for unpaid losses and loss settlement expenses before 2011, net of reinsurance | (80) | |||||||||
Liabilities for unpaid losses and loss settlement expenses, net of reinsurance | 434,293 | |||||||||
Workers' compensation | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 380,733 | |||||||||
All outstanding liabilities for unpaid losses and loss settlement expenses before 2011, net of reinsurance | 19,345 | |||||||||
Liabilities for unpaid losses and loss settlement expenses, net of reinsurance | 116,050 | |||||||||
Personal | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 477,746 | |||||||||
All outstanding liabilities for unpaid losses and loss settlement expenses before 2011, net of reinsurance | 620 | |||||||||
Liabilities for unpaid losses and loss settlement expenses, net of reinsurance | 39,210 | |||||||||
2011 | Commercial other liability | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 68,052 | $ 66,500 | $ 64,541 | $ 62,165 | $ 56,150 | $ 50,146 | $ 40,595 | $ 26,260 | $ 13,670 | $ 6,236 |
2011 | Commercial fire and allied | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 121,157 | 121,063 | 120,731 | 120,178 | 118,183 | 116,614 | 112,497 | 109,429 | 104,800 | 85,585 |
2011 | Commercial automobile | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 90,677 | 90,515 | 89,459 | 88,609 | 87,475 | 85,348 | 79,383 | 65,021 | 50,931 | 34,332 |
2011 | Workers' compensation | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 30,573 | 29,890 | 29,700 | 29,453 | 29,022 | 28,247 | 27,497 | 26,033 | 21,678 | 10,322 |
2011 | Personal | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 46,751 | 46,752 | 46,650 | 46,575 | 46,573 | 46,487 | 45,949 | 45,306 | 43,801 | $ 36,489 |
2012 | Commercial other liability | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 74,644 | 73,819 | 71,773 | 69,800 | 64,574 | 55,316 | 39,948 | 24,620 | 6,875 | |
2012 | Commercial fire and allied | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 108,123 | 107,992 | 106,740 | 106,521 | 105,250 | 103,197 | 100,078 | 94,380 | 71,008 | |
2012 | Commercial automobile | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 96,176 | 94,983 | 94,747 | 93,179 | 90,292 | 82,944 | 71,469 | 57,201 | 39,247 | |
2012 | Workers' compensation | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 36,520 | 36,060 | 35,388 | 34,330 | 33,063 | 30,933 | 28,397 | 23,023 | 11,802 | |
2012 | Personal | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 44,159 | 44,158 | 44,158 | 44,139 | 43,569 | 44,448 | 43,375 | 41,979 | $ 30,415 | |
2013 | Commercial other liability | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 78,448 | 75,961 | 72,115 | 65,773 | 54,559 | 39,953 | 25,228 | 9,835 | ||
2013 | Commercial fire and allied | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 92,472 | 92,012 | 91,493 | 89,200 | 86,115 | 82,853 | 78,226 | 59,331 | ||
2013 | Commercial automobile | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 103,037 | 101,580 | 100,058 | 96,375 | 90,780 | 79,663 | 67,630 | 43,592 | ||
2013 | Workers' compensation | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 48,093 | 47,572 | 47,071 | 45,078 | 42,941 | 38,023 | 30,209 | 14,136 | ||
2013 | Personal | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 36,466 | 36,397 | 36,323 | 36,155 | 35,306 | 34,297 | 32,788 | $ 25,505 | ||
2014 | Commercial other liability | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 96,509 | 93,060 | 83,109 | 70,363 | 50,211 | 29,679 | 10,207 | |||
2014 | Commercial fire and allied | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 126,307 | 125,745 | 123,697 | 122,370 | 116,750 | 113,663 | 84,456 | |||
2014 | Commercial automobile | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 116,843 | 113,751 | 109,682 | 99,922 | 87,590 | 68,033 | 45,704 | |||
2014 | Workers' compensation | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 46,299 | 45,825 | 45,193 | 42,964 | 38,441 | 30,289 | 13,965 | |||
2014 | Personal | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 52,519 | 52,543 | 52,018 | 51,837 | 49,710 | 47,912 | $ 37,055 | |||
2015 | Commercial other liability | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 104,472 | 96,339 | 74,292 | 53,901 | 27,182 | 11,185 | ||||
2015 | Commercial fire and allied | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 103,975 | 104,115 | 101,367 | 95,515 | 90,454 | 67,217 | ||||
2015 | Commercial automobile | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 134,100 | 129,317 | 118,395 | 99,201 | 78,225 | 50,782 | ||||
2015 | Workers' compensation | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 40,034 | 39,305 | 38,424 | 35,229 | 27,304 | 12,063 | ||||
2015 | Personal | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 40,029 | 39,865 | 39,428 | 39,027 | 37,431 | $ 29,551 | ||||
2016 | Commercial other liability | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 102,757 | 88,885 | 63,526 | 38,184 | 13,782 | |||||
2016 | Commercial fire and allied | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 139,353 | 137,909 | 132,429 | 125,962 | 92,895 | |||||
2016 | Commercial automobile | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 164,341 | 148,224 | 128,157 | 103,528 | 66,013 | |||||
2016 | Workers' compensation | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 47,082 | 45,743 | 40,680 | 32,345 | 14,413 | |||||
2016 | Personal | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 44,618 | 44,046 | 42,660 | 40,910 | $ 32,999 | |||||
2017 | Commercial other liability | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 91,984 | 70,500 | 43,172 | 17,716 | ||||||
2017 | Commercial fire and allied | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 152,219 | 145,900 | 137,058 | 99,484 | ||||||
2017 | Commercial automobile | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 197,893 | 166,170 | 126,644 | 81,311 | ||||||
2017 | Workers' compensation | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 41,672 | 38,083 | 31,309 | 14,647 | ||||||
2017 | Personal | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 57,169 | 55,982 | 53,111 | $ 42,135 | ||||||
2018 | Commercial other liability | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 79,168 | 44,772 | 16,200 | |||||||
2018 | Commercial fire and allied | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 133,703 | 123,559 | 92,770 | |||||||
2018 | Commercial automobile | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 187,405 | 138,092 | 81,572 | |||||||
2018 | Workers' compensation | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 43,189 | 35,369 | 16,949 | |||||||
2018 | Personal | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 49,464 | 47,433 | $ 37,410 | |||||||
2019 | Commercial other liability | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 46,986 | 18,221 | ||||||||
2019 | Commercial fire and allied | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 136,084 | 100,980 | ||||||||
2019 | Commercial automobile | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 153,244 | 91,919 | ||||||||
2019 | Workers' compensation | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 29,668 | 13,582 | ||||||||
2019 | Personal | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 52,390 | $ 40,544 | ||||||||
2020 | Commercial other liability | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 17,011 | |||||||||
2020 | Commercial fire and allied | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 128,704 | |||||||||
2020 | Commercial automobile | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 67,660 | |||||||||
2020 | Workers' compensation | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 17,603 | |||||||||
2020 | Personal | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | $ 54,181 |
RESERVES FOR LOSSES AND LOSS _7
RESERVES FOR LOSSES AND LOSS SETTLEMENT EXPENSES (Reconciliation of the Disclosure Claims Development to the Liability for Claims and Claim Adjustment Expenses) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities for unpaid losses and allocated loss settlement expenses | $ 1,347,699 | |||
Net outstanding liabilities for unpaid unallocated loss settlement expenses | 97,379 | |||
Fair value adjustment (purchase accounting adjustment for Mercer acquisition) | 1,210 | |||
Liabilities for unpaid losses and loss settlement expenses, net of reinsurance | 1,446,288 | |||
Reinsurance recoverable on unpaid losses and allocated loss settlement expenses | 133,001 | |||
Reinsurance fair value amortization (purchase accounting adjustment for Mercer acquisition) | (1,158) | |||
Total reinsurance recoverable on unpaid losses and loss settlement expenses | 131,843 | |||
Total gross liability for unpaid losses and loss settlement expenses | 1,578,131 | $ 1,421,754 | $ 1,312,483 | $ 1,224,183 |
Commercial other liability | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities for unpaid losses and allocated loss settlement expenses | 585,811 | |||
Reinsurance recoverable on unpaid losses and allocated loss settlement expenses | 29,497 | |||
Commercial fire and allied | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities for unpaid losses and allocated loss settlement expenses | 129,290 | |||
Reinsurance recoverable on unpaid losses and allocated loss settlement expenses | 42,481 | |||
Commercial automobile | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities for unpaid losses and allocated loss settlement expenses | 434,293 | |||
Reinsurance recoverable on unpaid losses and allocated loss settlement expenses | 3,334 | |||
Commercial workers' compensation | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities for unpaid losses and allocated loss settlement expenses | 116,050 | |||
Reinsurance recoverable on unpaid losses and allocated loss settlement expenses | 47,130 | |||
Personal | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities for unpaid losses and allocated loss settlement expenses | 39,210 | |||
Reinsurance recoverable on unpaid losses and allocated loss settlement expenses | 8,867 | |||
All other lines | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities for unpaid losses and allocated loss settlement expenses | 43,045 | |||
Reinsurance recoverable on unpaid losses and allocated loss settlement expenses | $ 1,692 |
RESERVES FOR LOSSES AND LOSS _8
RESERVES FOR LOSSES AND LOSS SETTLEMENT EXPENSES (Historical Claims Duration) (Details) | Dec. 31, 2020 |
Commercial other liability | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 9.60% |
Year 2 | 16.00% |
Year 3 | 18.00% |
Year 4 | 16.80% |
Year 5 | 12.30% |
Year 6 | 7.20% |
Year 7 | 4.30% |
Year 8 | 2.70% |
Year 9 | 1.70% |
Year 10 | 1.90% |
Commercial fire and allied | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 64.60% |
Year 2 | 21.40% |
Year 3 | 4.80% |
Year 4 | 3.80% |
Year 5 | 2.20% |
Year 6 | 1.30% |
Year 7 | 0.70% |
Year 8 | 0.70% |
Year 9 | 0.20% |
Year 10 | 0.10% |
Commercial automobile | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 35.90% |
Year 2 | 20.30% |
Year 3 | 15.50% |
Year 4 | 12.50% |
Year 5 | 7.50% |
Year 6 | 3.10% |
Year 7 | 1.70% |
Year 8 | 0.90% |
Year 9 | 1.20% |
Year 10 | 0.20% |
Commercial workers' compensation | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 29.50% |
Year 2 | 32.40% |
Year 3 | 14.80% |
Year 4 | 7.60% |
Year 5 | 3.50% |
Year 6 | 2.50% |
Year 7 | 1.50% |
Year 8 | 1.20% |
Year 9 | 0.90% |
Year 10 | 2.20% |
Personal | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 71.30% |
Year 2 | 19.70% |
Year 3 | 3.80% |
Year 4 | 2.40% |
Year 5 | 0.70% |
Year 6 | 0.70% |
Year 7 | 0.10% |
Year 8 | 0.10% |
Year 9 | 0.10% |
Year 10 | 0.00% |
STATUTORY REPORTING, CAPITAL _3
STATUTORY REPORTING, CAPITAL REQUIREMENTS AND DIVIDENDS AND RETAINED EARNINGS RESTRICTIONS (Statutory Capital and Surplus) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property and casualty business | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Capital and Surplus | $ 671,599 | $ 707,571 | $ 774,257 |
Statutory Net Income (Loss) | $ (17,705) | $ (22,393) | 219,065 |
Life, accident and health business | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Capital and Surplus | 0 | ||
Statutory Net Income (Loss) | $ 3,548 |
STATUTORY REPORTING, CAPITAL _4
STATUTORY REPORTING, CAPITAL REQUIREMENTS AND DIVIDENDS AND RETAINED EARNINGS RESTRICTIONS (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statutory Accounting Practices [Line Items] | |||
Long term debt | $ 50,000 | $ 0 | |
Payment of cash dividends | 28,526 | 32,662 | $ 105,408 |
United Fire & Casualty Company | |||
Statutory Accounting Practices [Line Items] | |||
Intercompany dividend payments that are eliminated in Consolidated Financial Statements | 4,000 | 57,000 | 105,000 |
Subsidiaries | |||
Statutory Accounting Practices [Line Items] | |||
Intercompany dividend payments that are eliminated in Consolidated Financial Statements | 62,400 | $ 6,300 | $ 8,500 |
State of Iowa Insurance Department | |||
Statutory Accounting Practices [Line Items] | |||
Statutory amount available for dividend payments | $ 66,800 |
FEDERAL INCOME TAX (Federal Inc
FEDERAL INCOME TAX (Federal Income Tax) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation Of Consolidated Federal Income Tax Expense (Benefit) [Line Items] | |||
Consolidated federal income tax expense (benefit) | $ (56,809) | $ 2,059 | $ (11,405) |
Continuing and Discontinuing Operations | |||
Reconciliation Of Consolidated Federal Income Tax Expense (Benefit) [Line Items] | |||
Current | (46,861) | (7,843) | 18,493 |
Deferred | (9,948) | 9,902 | (21,791) |
Consolidated federal income tax expense (benefit) | $ (56,809) | $ 2,059 | $ (3,298) |
FEDERAL INCOME TAX (Narrative)
FEDERAL INCOME TAX (Narrative) (Details) $ in Millions | Mar. 27, 2020USD ($) |
Income Tax Disclosure [Abstract] | |
Income tax benefit, CARES Act | $ 18.6 |
FEDERAL INCOME TAX (Reconciliat
FEDERAL INCOME TAX (Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation Of Consolidated Federal Income Tax Expense (Benefit) [Line Items] | |||
The CARES Act | $ 0 | $ 0 | |
Consolidated federal income tax expense (benefit) | $ (56,809) | 2,059 | (11,405) |
Reconciliation of consolidated federal income tax expense (benefit), continuing operations | (56,809) | 2,059 | (11,405) |
Reconciliation of consolidated federal income tax expense (benefit), gain on sale of discontinued operations | 0 | 0 | 7,544 |
Reconciliation of consolidated federal income tax expense (benefit), discontinued operations | 0 | 0 | 563 |
Continuing and Discontinuing Operations | |||
Reconciliation Of Consolidated Federal Income Tax Expense (Benefit) [Line Items] | |||
Computed expected income tax expense (benefit) | (35,598) | 3,544 | 5,114 |
The CARES Act | (18,562) | ||
Tax-exempt municipal bond interest income | (3,669) | (3,961) | (4,235) |
Nontaxable dividend income | (517) | (594) | (591) |
Goodwill impairment | 3,169 | 0 | 0 |
Valuation allowance reduction | 0 | 0 | (329) |
Compensation | 695 | 1,638 | (497) |
Reinsurance | 0 | 998 | 0 |
Research and development credit | (2,045) | 0 | 0 |
Other, net | (282) | 434 | (2,760) |
Consolidated federal income tax expense (benefit) | (56,809) | 2,059 | (3,298) |
Reconciliation of consolidated federal income tax expense (benefit), continuing operations | $ (56,809) | $ 2,059 | $ (3,298) |
FEDERAL INCOME TAX (Net Deferre
FEDERAL INCOME TAX (Net Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax liabilities | ||
Deferred policy acquisition costs | $ 18,289 | $ 19,801 |
Investments in partnerships | 964 | 2,156 |
Prepaid pension cost | 4,553 | 4,441 |
Net bond discount accretion | 383 | 357 |
Depreciation | 4,187 | 1,908 |
Revaluation of investment basis | 325 | 377 |
Identifiable intangible assets | 1,391 | 1,540 |
Capitalized Software | 4,891 | 0 |
Other | 1,568 | 1,416 |
Gross deferred tax liability | 91,729 | 93,216 |
Deferred tax assets | ||
Financial statement reserves in excess of income tax reserves | 23,851 | 20,845 |
Unearned premium adjustment | 18,979 | 20,816 |
Net operating loss carryforwards | 0 | 1,708 |
Underfunded benefit plan obligation | 4,295 | 9,072 |
Post-retirement benefits other than pensions | 9,533 | 10,785 |
Other-than-temporary impairment of investments | 1,974 | 2,094 |
Compensation expense related to stock options | 2,307 | 2,394 |
Nonqualified deferred compensation | 2,066 | 1,623 |
Other | 3,795 | 3,293 |
Deferred tax asset | 66,800 | 72,630 |
Net deferred tax liability | 24,929 | 20,586 |
Equity securities | ||
Deferred tax liabilities | ||
Net unrealized appreciation on investment securities | 33,096 | 48,652 |
All other securities | ||
Deferred tax liabilities | ||
Net unrealized appreciation on investment securities | $ 22,082 | $ 12,568 |
EMPLOYEE BENEFITS (Narrative) (
EMPLOYEE BENEFITS (Narrative) (Details) | Jan. 01, 2017USD ($) | Dec. 31, 2020USD ($)programinvestment_manager | Dec. 31, 2019USD ($) | Jan. 01, 2019 | Dec. 31, 2018USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |||||
Number of programs offered under health and dental benefit plan | program | 2 | ||||
Pension Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Eligibility, minimum required service period | 1 year | ||||
Eligibility, minimum age | 21 years | ||||
Estimated employer contribution in next fiscal year | $ 10,000,000 | ||||
Retirement plan, employee deductible | $ 500 | ||||
Percentage of retirement plan owed by employees 65 or older | 50.00% | ||||
Percentage of retirement plan owed by employees less 65 | 100.00% | ||||
Percentage of retirement plan | 100.00% | ||||
Benefit obligation | $ 271,744,000 | $ 252,374,000 | $ 202,156,000 | ||
Number of external investment managers | investment_manager | 6 | ||||
Post-retirement Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Benefit obligation | $ 31,666,000 | $ 31,001,000 | $ 30,973,000 |
EMPLOYEE BENEFITS (Asset Alloca
EMPLOYEE BENEFITS (Asset Allocation) (Details) - Pension Benefits - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 248,735 | $ 199,466 | $ 164,819 |
Actual % of total | 100.00% | 100.00% | |
Fixed maturity securities - corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 21,718 | $ 13,250 | |
Actual % of total | 8.70% | 6.70% | |
Fixed maturity securities - corporate bonds | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 0.00% | ||
Fixed maturity securities - corporate bonds | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 15.00% | ||
Redeemable preferred stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 3,534 | $ 2,929 | |
Actual % of total | 1.40% | 1.50% | |
Redeemable preferred stock | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 0.00% | ||
Redeemable preferred stock | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 10.00% | ||
Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 149,413 | $ 117,117 | |
Actual % of total | 60.00% | 58.70% | |
Equity securities | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 50.00% | ||
Equity securities | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 70.00% | ||
Core plus bond separate account fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 26,266 | $ 20,505 | |
Actual % of total | 10.60% | 10.30% | |
Core plus bond separate account fund | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 0.00% | ||
Core plus bond separate account fund | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 40.00% | ||
U.S. property separate account fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 22,269 | $ 22,114 | |
Actual % of total | 9.00% | 11.10% | |
U.S. property separate account fund | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 0.00% | ||
U.S. property separate account fund | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 25.00% | ||
Arbitrage fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 9,873 | $ 9,245 | |
Actual % of total | 4.00% | 4.60% | |
Arbitrage fund | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 0.00% | ||
Arbitrage fund | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 10.00% | ||
United Life annuity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 11,398 | $ 10,855 | |
Actual % of total | 4.60% | 5.40% | |
United Life annuity | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 0.00% | ||
United Life annuity | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 10.00% | ||
Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 4,264 | $ 3,451 | |
Actual % of total | 1.70% | 1.70% | |
Cash and cash equivalents | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 0.00% | ||
Cash and cash equivalents | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 10.00% |
EMPLOYEE BENEFITS (Fair Value o
EMPLOYEE BENEFITS (Fair Value of Plan Assets) (Details) - Pension Benefits - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | $ 248,735 | $ 199,466 | $ 164,819 |
Fixed maturity securities - corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 21,718 | 13,250 | |
Redeemable preferred stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 3,534 | 2,929 | |
Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 149,413 | 117,117 | |
Core plus bond separate account fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 26,266 | 20,505 | |
U.S. property separate account fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 22,269 | 22,114 | |
U.S. property separate account fund | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 22,269 | 22,114 | $ 20,841 |
Arbitrage fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 9,873 | 9,245 | |
United Life annuity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 11,398 | 10,855 | |
Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 4,264 | 3,451 | |
Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 237,333 | 188,608 | |
Recurring | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 157,207 | 123,494 | |
Recurring | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 57,857 | 43,000 | |
Recurring | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 22,269 | 22,114 | |
Recurring | Fixed maturity securities - corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 21,718 | 13,250 | |
Recurring | Fixed maturity securities - corporate bonds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 0 | 0 | |
Recurring | Fixed maturity securities - corporate bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 21,718 | 13,250 | |
Recurring | Fixed maturity securities - corporate bonds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 0 | 0 | |
Recurring | Redeemable preferred stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 3,534 | 2,929 | |
Recurring | Redeemable preferred stock | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 3,534 | 2,929 | |
Recurring | Redeemable preferred stock | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 0 | 0 | |
Recurring | Redeemable preferred stock | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 0 | 0 | |
Recurring | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 149,413 | 117,117 | |
Recurring | Equity securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 149,413 | 117,117 | |
Recurring | Equity securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 0 | 0 | |
Recurring | Equity securities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 0 | 0 | |
Recurring | Core plus bond separate account fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 26,266 | 20,505 | |
Recurring | Core plus bond separate account fund | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 0 | 0 | |
Recurring | Core plus bond separate account fund | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 26,266 | 20,505 | |
Recurring | Core plus bond separate account fund | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 0 | 0 | |
Recurring | U.S. property separate account fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 22,269 | 22,114 | |
Recurring | U.S. property separate account fund | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 0 | 0 | |
Recurring | U.S. property separate account fund | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 0 | 0 | |
Recurring | U.S. property separate account fund | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 22,269 | 22,114 | |
Recurring | Arbitrage fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 9,873 | 9,245 | |
Recurring | Arbitrage fund | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 0 | 0 | |
Recurring | Arbitrage fund | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 9,873 | 9,245 | |
Recurring | Arbitrage fund | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 0 | 0 | |
Recurring | Money market funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 4,260 | 3,448 | |
Recurring | Money market funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 4,260 | 3,448 | |
Recurring | Money market funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 0 | 0 | |
Recurring | Money market funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | $ 0 | $ 0 |
EMPLOYEE BENEFITS (Change in Fa
EMPLOYEE BENEFITS (Change in Fair Value of Pension Plan Assets) (Details) - Pension Benefits - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | $ 199,466 | $ 164,819 |
Fair value of plan assets at end of year | 248,735 | 199,466 |
U.S. property separate account fund | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 22,114 | |
Fair value of plan assets at end of year | 22,269 | 22,114 |
U.S. property separate account fund | Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 22,114 | 20,841 |
Unrealized gains | 155 | 1,273 |
Fair value of plan assets at end of year | $ 22,269 | $ 22,114 |
EMPLOYEE BENEFITS (Assumptions)
EMPLOYEE BENEFITS (Assumptions) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates [Abstract] | |||
Effect of 1% increase on the net periodic postretirement health care benefit cost | $ 643 | ||
Effect of 1% decrease on the net periodic postretirement health care benefit cost | (494) | ||
Effect of 1% increase on the accumulated postretirement benefit obligation | 5,520 | ||
Effect of 1% decrease on the accumulated postretirement benefit obligation | $ (4,451) | ||
Pension Benefits | |||
Assumptions Used to Determine Benefit Obligations [Abstract] | |||
Discount rate | 2.58% | 3.32% | |
Rate of compensation increase | 2.75% | 3.00% | |
Assumptions Used to Determine Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 3.32% | 4.18% | 3.65% |
Expected long-term rate of return on plan assets | 6.70% | 6.70% | 6.70% |
Rate of compensation increase | 3.00% | 3.00% | 3.00% |
Post-retirement Benefits | |||
Assumptions Used to Determine Benefit Obligations [Abstract] | |||
Discount rate | 2.58% | 3.32% | |
Assumptions Used to Determine Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 3.32% | 4.18% | 3.65% |
Health Care Benefits | |||
Assumed Health Care Cost Trend Rates [Abstract] | |||
Health care cost trend rates assumed for next year | 7.00% | 6.75% | |
Rate to which the health care trend rate is assumed to decline (ultimate trend rate) | 4.50% | 4.50% | |
Dental Claims | |||
Assumed Health Care Cost Trend Rates [Abstract] | |||
Health care cost trend rates assumed for next year | 3.00% | 4.00% |
EMPLOYEE BENEFITS (Obligation a
EMPLOYEE BENEFITS (Obligation and Funded Status) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Benefits | |||
Reconciliation of benefit obligation | |||
Benefit obligation at beginning of year | $ 252,374 | $ 202,156 | |
Service cost | 10,829 | 7,989 | $ 8,701 |
Interest cost | 8,266 | 8,320 | 7,500 |
Actuarial loss (gain) | 38,920 | 39,598 | |
Adjustment for plan amendment | (32,175) | 0 | |
Benefit payments | (6,470) | (5,689) | |
Benefit obligation at end of year | 271,744 | 252,374 | 202,156 |
Reconciliation of fair value of plan assets | |||
Fair value of plan assets at beginning of year | 199,466 | 164,819 | |
Actual return on plan assets | 45,739 | 36,336 | |
Employer contributions | 10,000 | 4,000 | |
Benefit payments | (6,470) | (5,689) | |
Fair value of plan assets at end of year | 248,735 | 199,466 | 164,819 |
Funded status at end of year | (23,009) | (52,908) | |
Accumulated pension benefit obligation | 271,515 | 226,196 | |
Post-retirement Benefits | |||
Reconciliation of benefit obligation | |||
Benefit obligation at beginning of year | 31,001 | 30,973 | |
Service cost | 1,728 | 1,823 | 2,998 |
Interest cost | 1,014 | 1,274 | 2,009 |
Actuarial loss (gain) | (1,084) | (1,806) | |
Adjustment for plan amendment | 0 | 0 | |
Benefit payments | (993) | (1,263) | |
Benefit obligation at end of year | 31,666 | 31,001 | 30,973 |
Reconciliation of fair value of plan assets | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 993 | 1,263 | |
Benefit payments | (993) | (1,263) | |
Fair value of plan assets at end of year | 0 | 0 | $ 0 |
Funded status at end of year | $ (31,666) | $ (31,001) |
EMPLOYEE BENEFITS (AOCI) (Detai
EMPLOYEE BENEFITS (AOCI) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized prior service cost | $ (32,175) | $ 0 |
Unrecognized actuarial (gain) loss | 66,864 | 64,059 |
Total amounts recognized in AOCI | 34,689 | 64,059 |
Anticipated amortization of net actuarial losses in next fiscal year | 3,995 | |
Post-retirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized prior service cost | (20,863) | (28,947) |
Unrecognized actuarial (gain) loss | 6,627 | 8,086 |
Total amounts recognized in AOCI | (14,236) | $ (20,861) |
Anticipated amortization of net actuarial losses in next fiscal year | $ 260 |
EMPLOYEE BENEFITS (Net Periodic
EMPLOYEE BENEFITS (Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Benefits | |||
Net periodic benefit cost | |||
Service cost | $ 10,829 | $ 7,989 | $ 8,701 |
Interest cost | 8,266 | 8,320 | 7,500 |
Expected return on plan assets | (13,539) | (10,784) | (10,502) |
Amortization of prior service cost | 0 | 0 | 0 |
Amortization of net loss | 3,914 | 3,603 | 4,287 |
Net periodic benefit cost | 9,470 | 9,128 | 9,986 |
Post-retirement Benefits | |||
Net periodic benefit cost | |||
Service cost | 1,728 | 1,823 | 2,998 |
Interest cost | 1,014 | 1,274 | 2,009 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service cost | (8,084) | (8,684) | (5,409) |
Amortization of net loss | 375 | 894 | 2,355 |
Net periodic benefit cost | $ (4,967) | $ (4,693) | $ 1,953 |
EMPLOYEE BENEFITS (Expected Ben
EMPLOYEE BENEFITS (Expected Benefit Payments) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Pension Benefits | |
Expected Future Benefit Payments | |
2021 | $ 7,330 |
2022 | 7,920 |
2023 | 8,860 |
2024 | 9,850 |
2025 | 10,970 |
2026 - 2030 | 67,280 |
Post-retirement Benefits | |
Expected Future Benefit Payments | |
2021 | 940 |
2022 | 990 |
2023 | 1,010 |
2024 | 1,050 |
2025 | 1,090 |
2026 - 2030 | $ 6,520 |
EMPLOYEE BENEFITS (Profit-Shari
EMPLOYEE BENEFITS (Profit-Sharing Plan and ESOP) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Profit-Sharing Plan | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Employer contribution to the profit-sharing plan | $ 4,637 | $ 4,096 | $ 7,607 |
STOCK-BASED COMPENSATION (Narra
STOCK-BASED COMPENSATION (Narrative) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | 144 Months Ended | 192 Months Ended | ||||||
May 31, 2014 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2020 | May 20, 2020 | May 19, 2020 | Dec. 31, 2008 | Dec. 31, 2004 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Additional shares authorized (in shares) | 150,000 | 150,000 | ||||||||
Allocated share-based compensation expense | $ 4,991,000 | $ 6,152,000 | $ 5,249,000 | |||||||
Stock-based compensation expense | 4,095,000 | $ 4,095,000 | $ 4,095,000 | |||||||
Intrinsic value of options exercised | 299,000 | 2,055,000 | 5,850,000 | |||||||
Restricted Stock Awards | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Allocated share-based compensation expense | 3,734,000 | 4,659,000 | $ 3,877,000 | |||||||
Total compensation expense that has yet to be recognized | 3,074,000 | 3,074,000 | 3,074,000 | |||||||
Intrinsic value of the unvested restricted stock awards outstanding | $ 5,469,000 | $ 10,165,000 | $ 5,469,000 | $ 5,469,000 | ||||||
Employee Stock Award Plan-2008 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of authorized shares available for future issuance (in shares) | 700,680 | 834,910 | 700,680 | 700,680 | 1,900,000 | |||||
Additional shares authorized (in shares) | 1,500,000 | 0 | 1,500,000 | |||||||
Award expiration term | 10 years | |||||||||
Employee Stock Award Plan-2008 | Restricted Stock Awards | Minimum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting period of restricted stock awards | 3 years | |||||||||
Employee Stock Award Plan-2008 | Restricted Stock Awards | Maximum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting period of restricted stock awards | 5 years | |||||||||
Employee Stock Award Plan-2008 | Tranche one | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Percentage of option awards vest and exercisable in installments | 20.00% | |||||||||
Employee Stock Award Plan-2008 | Tranche two | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Percentage of option awards vest and exercisable in installments | 33.30% | |||||||||
Director Plan - 2005 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of authorized shares available for future issuance (in shares) | 160,135 | 34,863 | 160,135 | 160,135 | 450,000 | 300,000 | 300,000 |
STOCK-BASED COMPENSATION (Stock
STOCK-BASED COMPENSATION (Stock Award Plans) (Details) - shares | 1 Months Ended | 12 Months Ended | 144 Months Ended | 192 Months Ended |
May 31, 2014 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award Available for Grant [Roll Forward] | ||||
Additional shares authorized (in shares) | 150,000 | 150,000 | ||
Number of option awards exercised (in shares) | 45,628 | |||
Employee Stock Award Plan-2008 | ||||
Share-based Compensation Arrangement by Share-based Payment Award Available for Grant [Roll Forward] | ||||
Beginning balance (in shares) | 834,910 | 1,900,000 | ||
Additional shares authorized (in shares) | 1,500,000 | 0 | 1,500,000 | |
Number of awards granted (in shares) | (172,478) | (3,288,899) | ||
Number of awards forfeited or expired (in shares) | 38,248 | 589,579 | ||
Ending balance (in shares) | 700,680 | 700,680 | 700,680 | |
Number of unrestricted stock awards granted (in shares) | 172,478 | 3,288,899 | ||
Employee Stock Award Plan-2008 | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award Available for Grant [Roll Forward] | ||||
Number of option awards exercised (in shares) | 30,900 | 1,474,089 | ||
Employee Stock Award Plan-2008 | Unrestricted Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award Available for Grant [Roll Forward] | ||||
Number of awards granted (in shares) | 0 | (10,090) | ||
Number of unrestricted stock awards granted (in shares) | 0 | 10,090 | ||
Employee Stock Award Plan-2008 | Restricted Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award Available for Grant [Roll Forward] | ||||
Number of restricted stock awards vested (in shares) | 63,600 | 164,378 | ||
Director Plan - 2005 | ||||
Share-based Compensation Arrangement by Share-based Payment Award Available for Grant [Roll Forward] | ||||
Beginning balance (in shares) | 34,863 | 300,000 | ||
Number of awards granted (in shares) | (24,728) | (313,868) | ||
Number of awards forfeited or expired (in shares) | 0 | 24,003 | ||
Ending balance (in shares) | 160,135 | 160,135 | 160,135 | |
Number of unrestricted stock awards granted (in shares) | 24,728 | 313,868 | ||
Director Plan - 2005 | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award Available for Grant [Roll Forward] | ||||
Number of option awards exercised (in shares) | 14,728 | 133,820 | ||
Director Plan - 2005 | Restricted Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award Available for Grant [Roll Forward] | ||||
Number of restricted stock awards vested (in shares) | 14,300 | 98,491 |
STOCK-BASED COMPENSATION (Sto_2
STOCK-BASED COMPENSATION (Stock-Based Compensation Expense) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Share-based Payment Arrangement [Abstract] | |
2021 | $ 2,624 |
2022 | 1,107 |
2023 | 269 |
2024 | 83 |
2025 | 12 |
Total | $ 4,095 |
STOCK-BASED COMPENSATION (Analy
STOCK-BASED COMPENSATION (Analysis of Stock Options Award Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2020 | |
Shares | |
Outstanding at beginning of period (in shares) | 829,714 |
Granted (in shares) | 110,470 |
Exercised (in shares) | (45,628) |
Cancelled/Forfeited (in shares) | (1,300) |
Outstanding at end of period (in shares) | 893,256 |
Exercisable at end of period (in shares) | 663,788 |
Weighted-Average Exercise Price | |
Outstanding at beginning of period (in dollars per share) | $ 35.39 |
Granted (in dollars per share) | 44.08 |
Exercised (in dollars per share) | 21.93 |
Cancelled/Forfeited (in dollars per share) | 29.20 |
Outstanding at end of period (in dollars per share) | 37.16 |
Exercisable at end of period (in dollars per share) | $ 34.46 |
Outstanding, weighted-average remaining life | 5 years 1 month 28 days |
Exercisable, weighted-average remaining life | 4 years 2 months 15 days |
Outstanding, aggregate intrinsic value | $ 179 |
Exercisable, aggregate intrinsic value | $ 179 |
STOCK-BASED COMPENSATION (Ana_2
STOCK-BASED COMPENSATION (Analysis of Restricted Stock Award Activity) (Details) - Restricted Stock Awards | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Shares | |
Non-vested at beginning of period (in shares) | shares | 246,750 |
Granted (in shares) | shares | 101,130 |
Vested (in shares) | shares | (77,900) |
Forfeited (in shares) | shares | (52,097) |
Non-vested at end of period (in shares) | shares | 217,883 |
Weighted-Average Grant Date Fair Value | |
Non-vested at beginning of period (in dollars per share) | $ / shares | $ 43.31 |
Granted (in dollars per share) | $ / shares | 37.87 |
Vested (in dollars per share) | $ / shares | 39.93 |
Forfeited (in dollars per share) | $ / shares | 41.40 |
Non-vested at end of period (in dollars per share) | $ / shares | $ 42.45 |
STOCK-BASED COMPENSATION (Assum
STOCK-BASED COMPENSATION (Assumptions) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement [Abstract] | |||
Risk-free interest rate | 1.40% | 2.57% | 2.79% |
Expected volatility | 22.26% | 26.40% | 21.79% |
Expected option life | 7 years | 7 years | 7 years |
Expected dividends (in dollars per share) | $ 1.32 | $ 1.24 | $ 1.12 |
Weighted-average grant-date fair value of options granted during the year (in dollars per share) | $ 6.96 | $ 12.97 | $ 8.90 |
STOCK-BASED COMPENSATION (Sto_3
STOCK-BASED COMPENSATION (Stock Options Outstanding and Exercisable) (Details) | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Exercise Price $20.40 to $29.02 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Range (in dollars per share) | $ 20.40 |
Range of Exercise Prices, Upper Range (in dollars per share) | $ 29.02 |
Number Outstanding (in shares) | shares | 92,415 |
Weighted-Average Remaining Contractual Life (in years) | 2 years 1 month 20 days |
Weighted-Average Exercise Price (in dollars per share) | $ 23.81 |
Number Exercisable (in shares) | shares | 87,070 |
Weighted-Average Exercise Price (in dollars per share) | $ 23.63 |
Exercise Price $29.03 to $29.37 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Range (in dollars per share) | 29.03 |
Range of Exercise Prices, Upper Range (in dollars per share) | $ 29.37 |
Number Outstanding (in shares) | shares | 182,462 |
Weighted-Average Remaining Contractual Life (in years) | 3 years 11 months 4 days |
Weighted-Average Exercise Price (in dollars per share) | $ 29.12 |
Number Exercisable (in shares) | shares | 182,462 |
Weighted-Average Exercise Price (in dollars per share) | $ 29.12 |
Exercise Price $29.38 to $40.61 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Range (in dollars per share) | 29.38 |
Range of Exercise Prices, Upper Range (in dollars per share) | $ 40.61 |
Number Outstanding (in shares) | shares | 239,097 |
Weighted-Average Remaining Contractual Life (in years) | 4 years 14 days |
Weighted-Average Exercise Price (in dollars per share) | $ 35.47 |
Number Exercisable (in shares) | shares | 210,663 |
Weighted-Average Exercise Price (in dollars per share) | $ 34.87 |
Exercise Price $40.62 to $44.88 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Range (in dollars per share) | 40.62 |
Range of Exercise Prices, Upper Range (in dollars per share) | $ 44.88 |
Number Outstanding (in shares) | shares | 210,260 |
Weighted-Average Remaining Contractual Life (in years) | 6 years 29 days |
Weighted-Average Exercise Price (in dollars per share) | $ 42.87 |
Number Exercisable (in shares) | shares | 158,190 |
Weighted-Average Exercise Price (in dollars per share) | $ 42.86 |
Exercise Price $44.89 to $54.26 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Range (in dollars per share) | 44.89 |
Range of Exercise Prices, Upper Range (in dollars per share) | $ 54.26 |
Number Outstanding (in shares) | shares | 169,022 |
Weighted-Average Remaining Contractual Life (in years) | 8 years 6 months 21 days |
Weighted-Average Exercise Price (in dollars per share) | $ 48.44 |
Number Exercisable (in shares) | shares | 25,403 |
Weighted-Average Exercise Price (in dollars per share) | $ 54.11 |
Exercise Price $20.40 to $54.26 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Range (in dollars per share) | 20.40 |
Range of Exercise Prices, Upper Range (in dollars per share) | $ 54.26 |
Number Outstanding (in shares) | shares | 893,256 |
Weighted-Average Remaining Contractual Life (in years) | 5 years 1 month 28 days |
Weighted-Average Exercise Price (in dollars per share) | $ 37.16 |
Number Exercisable (in shares) | shares | 663,788 |
Weighted-Average Exercise Price (in dollars per share) | $ 34.46 |
SEGMENT INFORMATION (Narrative)
SEGMENT INFORMATION (Narrative) (Details) | Sep. 18, 2017segment | Dec. 31, 2020segmentlocation |
Segment Reporting Information [Line Items] | ||
Number of reportable business segments | segment | 2 | 1 |
Property and casualty business | ||
Segment Reporting Information [Line Items] | ||
Number of domestic business locations | location | 6 | |
Property and casualty business | Commercial Lines | Product Concentration Risk | Sales Revenue, Segment | ||
Segment Reporting Information [Line Items] | ||
Percentage of insurance in force | 94.20% | |
Property and casualty business | Personal Lines | Product Concentration Risk | Sales Revenue, Segment | ||
Segment Reporting Information [Line Items] | ||
Percentage of insurance in force | 5.80% |
SEGMENT INFORMATION (Net Premiu
SEGMENT INFORMATION (Net Premiums) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total net premiums earned from continuing operations | $ 1,055,082 | $ 1,086,972 | $ 1,037,451 |
Property and casualty business | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Reinsurance assumed | 33,679 | 25,412 | 16,957 |
Other | 2,678 | 2,942 | 2,938 |
Total net premiums earned from continuing operations | 1,055,082 | 1,086,972 | 1,037,451 |
Property and casualty business | Other liability | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net premiums earned | 316,098 | 318,412 | 311,931 |
Property and casualty business | Fire and allied lines | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net premiums earned | 277,515 | 285,205 | 276,193 |
Property and casualty business | Automobile | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net premiums earned | 324,420 | 345,637 | 313,521 |
Property and casualty business | Workers' compensation | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net premiums earned | 75,953 | 87,376 | 95,203 |
Property and casualty business | Fidelity and surety | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net premiums earned | 28,001 | 25,539 | 24,437 |
Property and casualty business | Reinsurance assumed | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Reinsurance assumed | 30,417 | 21,861 | 13,228 |
Life Insurance | Discontinued Operations | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Other | 0 | 0 | 12 |
Total net premiums earned from continuing operations | 0 | 0 | 13,003 |
Life Insurance | Discontinued Operations | Ordinary life (excluding universal life) | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net premiums earned | 0 | 0 | 7,068 |
Life Insurance | Discontinued Operations | Universal life policy fees | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net premiums earned | 0 | 0 | 3,363 |
Life Insurance | Discontinued Operations | Immediate annuities with life contingencies | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net premiums earned | 0 | 0 | 2,515 |
Life Insurance | Discontinued Operations | Accident and health | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net premiums earned | $ 0 | $ 0 | $ 45 |
QUARTERLY SUPPLEMENTARY FINAN_3
QUARTERLY SUPPLEMENTARY FINANCIAL INFORMATION (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Data [Abstract] | |||||||||||
Total revenues | $ 310,898 | $ 282,121 | $ 297,803 | $ 177,805 | $ 293,374 | $ 298,055 | $ 304,197 | $ 305,539 | $ 1,068,627 | $ 1,201,165 | $ 1,070,166 |
Income (loss) before income taxes | (13,524) | (55,228) | 4,236 | (104,999) | (28,699) | (4,528) | (4,571) | 54,677 | (169,515) | 16,879 | (9,150) |
Net income (loss) | $ (8,891) | $ (37,241) | $ 5,960 | $ (72,534) | $ (23,163) | $ (2,342) | $ (4,196) | $ 44,521 | $ (112,706) | $ 14,820 | $ 2,255 |
Basic earnings (loss) per share (in dollars per share) | $ (0.36) | $ (1.49) | $ 0.24 | $ (2.90) | $ (0.93) | $ (0.09) | $ (0.17) | $ 1.77 | $ (4.50) | $ 0.59 | $ 0.09 |
Diluted earnings (loss) per share (in dollars per share) | $ (0.36) | $ (1.49) | $ 0.24 | $ (2.90) | $ (0.93) | $ (0.09) | $ (0.17) | $ 1.74 | $ (4.50) | $ 0.58 | $ 0.09 |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Basic and Diluted Earnings per Share [Line Items] | |||||||||||
Net income (loss) from continuing operations | $ (8,891) | $ (37,241) | $ 5,960 | $ (72,534) | $ (23,163) | $ (2,342) | $ (4,196) | $ 44,521 | $ (112,706) | $ 14,820 | $ 2,255 |
Weighted-average common shares outstanding (in shares) | 25,027,358 | 25,138,039 | 25,006,211 | ||||||||
Weighted-average common shares, diluted (in shares) | 25,027,358 | 25,582,527 | 25,622,812 | ||||||||
Earnings per common share from continuing operations, basic (in dollars per share) | $ (0.36) | $ (1.49) | $ 0.24 | $ (2.90) | $ (0.93) | $ (0.09) | $ (0.17) | $ 1.77 | $ (4.50) | $ 0.59 | $ 0.09 |
Earnings per common share from continuing operations, diluted (in dollars per share) | $ (0.36) | $ (1.49) | $ 0.24 | $ (2.90) | $ (0.93) | $ (0.09) | $ (0.17) | $ 1.74 | (4.50) | 0.58 | 0.09 |
Earnings per common share from discontinued operations, basic (in dollars per share) | 0 | 0 | (0.08) | ||||||||
Earnings per common share from discontinued operations, diluted (in dollars per share) | 0 | 0 | (0.07) | ||||||||
Gain on sale of discontinued operations, basic (in dollars per share) | 0 | 0 | 1.10 | ||||||||
Gain on sale of discontinued operations, diluted (in dollar per share) | 0 | 0 | 1.07 | ||||||||
Earnings per common share, basic (in dollars per share) | (4.50) | 0.59 | 1.11 | ||||||||
Earnings per common share, diluted (in dollars per share) | $ (4.50) | $ 0.58 | $ 1.08 | ||||||||
Awards excluded from diluted calculation (in shares) | 618,379 | 63,897 | 2,681 | ||||||||
Restricted Stock Awards | |||||||||||
Basic and Diluted Earnings per Share [Line Items] | |||||||||||
Add dilutive effect of restricted stock awards (in shares) | 0 | 232,450 | 273,544 | ||||||||
Stock Options | |||||||||||
Basic and Diluted Earnings per Share [Line Items] | |||||||||||
Add dilutive effect of restricted stock awards (in shares) | 0 | 212,038 | 343,057 |
LEASE COMMITMENTS (Narrative) (
LEASE COMMITMENTS (Narrative) (Details) | Dec. 31, 2020 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms | 1 year |
Lease extension option terms | 6 months |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms | 6 years |
Lease extension option terms | 5 years |
LEASE COMMITMENTS (Lease Costs)
LEASE COMMITMENTS (Lease Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Components of lease expense: | ||
Operating lease expense | $ 7,611 | $ 7,655 |
Less sublease income | 292 | 493 |
Net lease expense | 7,319 | 7,162 |
Operating cash outflow from operating leases | $ 7,053 | $ 7,249 |
(Leases Balance Sheet and Suppl
(Leases Balance Sheet and Supplemental Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating lease right-of-use assets (Other assets on Consolidated Balance Sheets) | $ 18,619 | $ 15,410 |
Operating lease liabilities (Accrued expenses and other liabilities on Consolidated Balance Sheets) | 19,244 | 15,851 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 7,264 | $ 651 |
Weighted average remaining lease term | 4 years 4 months 9 days | 2 years 9 months |
Weighted average discount rate | 3.72% | 4.74% |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets | us-gaap:OtherAssets |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | ufcs:AccruedExpensesAndOtherLiabilities | ufcs:AccruedExpensesAndOtherLiabilities |
(Leases Maturities of Lease Lia
(Leases Maturities of Lease Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2021 | $ 6,889 | $ 7,517 |
2022 | 4,610 | 5,311 |
2023 | 3,627 | 2,417 |
2024 | 1,763 | 1,318 |
2025 | 1,270 | 259 |
Thereafter | 2,460 | 39 |
Total lease payments | 20,619 | 16,861 |
Less imputed interest | (1,375) | (1,010) |
Lease liability | $ 19,244 | $ 15,851 |
DEBT (Narrative) (Details)
DEBT (Narrative) (Details) - USD ($) | Feb. 02, 2016 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 15, 2020 | Mar. 31, 2020 |
New Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Interest expense incurred | $ 0 | |||||
Option to increase, maximum amount | $ 100,000,000 | |||||
Outstanding balance | 0 | |||||
Previous Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Interest expense incurred | $ 0 | $ 0 | ||||
Maximum borrowing capacity | $ 100,000,000 | |||||
Outstanding balance | $ 0 | |||||
Credit Facility | New Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | 50,000,000 | |||||
Credit Facility | Previous Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 50,000,000 | |||||
Debt instrument, term | 4 years | |||||
Letter of Credit Subfacility | New Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | 20,000,000 | |||||
Letter of Credit Subfacility | Previous Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 20,000,000 | |||||
Swingline Subfacility | New Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 5,000,000 | |||||
Swingline Subfacility | Previous Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 5,000,000 | |||||
Surplus Notes | ||||||
Line of Credit Facility [Line Items] | ||||||
Principal amount | $ 50,000,000 | |||||
Interest expense incurred | 133,000 | |||||
Surplus Notes | Federated Mutual | ||||||
Line of Credit Facility [Line Items] | ||||||
Principal amount | 35,000,000 | |||||
Surplus Notes | Federated Life | ||||||
Line of Credit Facility [Line Items] | ||||||
Principal amount | $ 15,000,000 |
Debt (Interest Payable) (Detail
Debt (Interest Payable) (Details) - Surplus Notes | Dec. 31, 2020 |
A+ | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Applicable Interest Rate | 5.875% |
A | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Applicable Interest Rate | 6.375% |
A- | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Applicable Interest Rate | 6.875% |
B++ (or lower) | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Applicable Interest Rate | 7.375% |
INTANGIBLE ASSETS (Intangible A
INTANGIBLE ASSETS (Intangible Assets) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Goodwill | $ 0 | $ 15,091 | ||
Goodwill impairment | $ 15,091 | 15,091 | 0 | $ 0 |
Net intangible assets | 6,743 | 7,451 | ||
State insurance licenses | ||||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Indefinite-lived intangible assets | 3,020 | 3,020 | ||
Agency relationships | ||||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets, gross | 10,338 | 10,338 | ||
Accumulated amortization | (7,307) | (6,731) | ||
Finite-lived intangible assets, net | 3,031 | 3,607 | ||
Software | ||||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets, gross | 3,260 | 3,260 | ||
Accumulated amortization | (3,260) | (3,260) | ||
Finite-lived intangible assets, net | 0 | 0 | ||
Trade names | ||||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets, gross | 1,978 | 1,978 | ||
Accumulated amortization | (1,286) | (1,154) | ||
Finite-lived intangible assets, net | 692 | 824 | ||
Favorable contract | ||||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets, gross | 286 | 286 | ||
Accumulated amortization | (286) | (286) | ||
Finite-lived intangible assets, net | $ 0 | $ 0 |
INTANGIBLE ASSETS (Estimated Us
INTANGIBLE ASSETS (Estimated Useful Lives) (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Agency relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Life | 15 years |
Software | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Life | 2 years |
Trade names | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Life | 15 years |
Favorable contract | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Life | 2 years |
INTANGIBLE ASSETS (Future Amort
INTANGIBLE ASSETS (Future Amortization Expense) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Estimated Aggregate Amortization Expense | |
2021 | $ 709 |
2022 | 709 |
2023 | 709 |
2024 | 709 |
2025 | $ 709 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||
Balance, beginning of year | $ 910,472 | $ 888,375 | $ 973,373 |
Change in accumulated other comprehensive income before reclassifications | 51,753 | 38,869 | (20,123) |
Reclassification adjustments from accumulated other comprehensive income | 2,005 | 4,755 | 5,867 |
Balance, end of year | 825,149 | 910,472 | 888,375 |
Cumulative effect of change in accounting principle | |||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||
Balance, beginning of year | (30) | (514) | 0 |
Balance, end of year | (30) | (514) | |
Net unrealized appreciation on investments | |||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||
Balance, beginning of year | 47,279 | (9,323) | 214,865 |
Change in accumulated other comprehensive income before reclassifications | 37,173 | 55,399 | (33,564) |
Reclassification adjustments from accumulated other comprehensive income | (1,382) | 1,203 | 620 |
Balance, end of year | 83,070 | 47,279 | (9,323) |
Net unrealized appreciation on investments | Cumulative effect of change in accounting principle | |||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||
Balance, beginning of year | (191,244) | ||
Liability for underfunded employee benefit costs | |||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||
Balance, beginning of year | (34,127) | (21,149) | (46,551) |
Change in accumulated other comprehensive income before reclassifications | 14,580 | (16,530) | 20,155 |
Reclassification adjustments from accumulated other comprehensive income | 3,388 | 3,552 | 5,247 |
Balance, end of year | (16,159) | (34,127) | (21,149) |
Liability for underfunded employee benefit costs | Cumulative effect of change in accounting principle | |||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||
Balance, beginning of year | 0 | ||
Accumulated other comprehensive income, net of tax | |||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||
Balance, beginning of year | 13,152 | (30,472) | 168,314 |
Change in accumulated other comprehensive income before reclassifications | 51,753 | 38,869 | (13,409) |
Reclassification adjustments from accumulated other comprehensive income | 2,006 | 4,755 | 5,867 |
Balance, end of year | $ 66,911 | $ 13,152 | (30,472) |
Accumulated other comprehensive income, net of tax | Cumulative effect of change in accounting principle | |||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||
Balance, beginning of year | $ (191,244) |
DISCONTINUED OPERATIONS (Narrat
DISCONTINUED OPERATIONS (Narrative) (Details) - USD ($) $ in Thousands | Mar. 30, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain on sale of discontinued operations, net of taxes | $ 0 | $ 0 | $ 27,307 | |
United Life Insurance Company | Discontinued Operations, Disposed of by Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Cash proceeds | $ 280,000 | |||
Adjustment to proceeds from divestiture | 21 | |||
Proceeds from divestiture of business | 279,979 | |||
Gain on sale of discontinued operations, net of taxes | $ 27,307 | |||
Transition services agreement duration (up to) | 24 months | |||
Proceeds from TSA | $ 1,019 |
DISCONTINUED OPERATIONS (Statem
DISCONTINUED OPERATIONS (Statements of Income) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Benefits, Losses and Expenses | |||
Federal income tax expense | $ 0 | $ 0 | $ 563 |
Net income (loss) from discontinued operations | $ 0 | $ 0 | $ (1,912) |
Earnings (loss) per common share from discontinued operations: | |||
Basic (in dollars per share) | $ 0 | $ 0 | $ (0.08) |
Diluted (in dollars per share) | $ 0 | $ 0 | $ (0.07) |
United Life Insurance Company | Discontinued Operations, Disposed of by Sale | |||
Revenues | |||
Net premiums earned | $ 0 | $ 0 | $ 13,003 |
Investment income, net of investment expenses | 0 | 0 | 12,663 |
Total net realized investment gains (losses) | 0 | 0 | (1,057) |
Other income | 0 | 0 | 146 |
Total revenues | 0 | 0 | 24,755 |
Benefits, Losses and Expenses | |||
Losses and loss settlement expenses | 0 | 0 | 10,823 |
Increase in liability for future policy benefits | 0 | 0 | 5,023 |
Amortization of deferred policy acquisition costs | 0 | 0 | 1,895 |
Other underwriting expenses | 0 | 0 | 3,864 |
Interest on policyholders’ accounts | 0 | 0 | 4,499 |
Total benefits, losses and expenses | 0 | 0 | 26,104 |
Income (loss) from discontinued operations before income taxes | 0 | 0 | (1,349) |
Federal income tax expense | 0 | 0 | 563 |
Net income (loss) from discontinued operations | $ 0 | $ 0 | $ (1,912) |
Earnings (loss) per common share from discontinued operations: | |||
Basic (in dollars per share) | $ 0 | $ 0 | $ (0.08) |
Diluted (in dollars per share) | $ 0 | $ 0 | $ (0.07) |
Schedule I. Summary of Invest_2
Schedule I. Summary of Investments - Other than Investments in Related Parties (Details) $ in Thousands | Dec. 31, 2020USD ($) |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | $ 1,891,061 |
Fair Value | 2,150,540 |
Amounts at Which Shown in Balance Sheet | 2,149,217 |
Fixed Maturities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 1,720,291 |
Fair Value | 1,825,443 |
Amounts at Which Shown in Balance Sheet | 1,825,438 |
United States Government and government agencies and authorities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 209,983 |
Fair Value | 214,456 |
Amounts at Which Shown in Balance Sheet | 214,456 |
States, municipalities and political subdivisions | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 824,545 |
Fair Value | 884,700 |
Amounts at Which Shown in Balance Sheet | 884,700 |
Foreign governments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 27,799 |
Fair Value | 29,602 |
Amounts at Which Shown in Balance Sheet | 29,602 |
Public utilities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 76,114 |
Fair Value | 83,502 |
Amounts at Which Shown in Balance Sheet | 83,502 |
All other bonds | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 581,850 |
Fair Value | 613,183 |
Amounts at Which Shown in Balance Sheet | 613,178 |
Redeemable preferred stock | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 0 |
Fair Value | 0 |
Amounts at Which Shown in Balance Sheet | 0 |
Equity Securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 49,085 |
Fair Value | 206,685 |
Amounts at Which Shown in Balance Sheet | 206,685 |
Public utilities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 3,760 |
Fair Value | 16,320 |
Amounts at Which Shown in Balance Sheet | 16,320 |
Banks, trusts and insurance companies | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 7,853 |
Fair Value | 69,577 |
Amounts at Which Shown in Balance Sheet | 69,577 |
Industrial, miscellaneous and all other | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 36,877 |
Fair Value | 120,193 |
Amounts at Which Shown in Balance Sheet | 120,193 |
Nonredeemable preferred stocks | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 595 |
Fair Value | 595 |
Amounts at Which Shown in Balance Sheet | 595 |
Mortgage loans on real estate | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 47,690 |
Fair Value | 48,932 |
Amounts at Which Shown in Balance Sheet | 47,614 |
Other long-term investments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 73,820 |
Fair Value | 69,305 |
Amounts at Which Shown in Balance Sheet | 69,305 |
Short-term investments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 175 |
Fair Value | 175 |
Amounts at Which Shown in Balance Sheet | $ 175 |
Schedule II. Condensed Financ_2
Schedule II. Condensed Financial Statements of Parent Company (Condensed Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | $ 1,825,438 | $ 1,719,607 | ||
Cash and cash equivalents | 87,948 | 120,722 | ||
Other assets | 37,196 | 29,905 | ||
Total assets | 3,069,678 | 3,013,472 | ||
Liabilities and stockholders' equity | ||||
Liabilities | 2,244,529 | 2,103,000 | ||
Stockholders' equity | ||||
Common Stock, Value, Issued | 25 | 25 | ||
Additional paid-in capital | 202,359 | 200,179 | ||
Retained earnings | 555,854 | 697,116 | ||
Accumulated other comprehensive income, net of tax | 66,911 | 13,152 | ||
Total stockholders' equity | 825,149 | 910,472 | $ 888,375 | $ 973,373 |
Total liabilities and stockholders' equity | 3,069,678 | 3,013,472 | ||
United Fire Group, Inc. | ||||
Assets | ||||
Available-for-sale, at fair value (amortized cost $1,720,291 in 2020 and $1,659,760 in 2019; allowance for credit losses $5 in 2020 and $— in 2019) | 150 | 150 | ||
Investment in subsidiary | 818,581 | 880,485 | ||
Cash and cash equivalents | 6,504 | 29,878 | ||
Other assets | 15 | 3 | ||
Total assets | 825,250 | 910,516 | ||
Liabilities and stockholders' equity | ||||
Liabilities | 101 | 44 | ||
Stockholders' equity | ||||
Common Stock, Value, Issued | 25 | 25 | ||
Additional paid-in capital | 202,359 | 200,179 | ||
Retained earnings | 555,854 | 697,116 | ||
Accumulated other comprehensive income, net of tax | 66,911 | 13,152 | ||
Total stockholders' equity | 825,149 | 910,472 | ||
Total liabilities and stockholders' equity | $ 825,250 | $ 910,516 |
Schedule II. Condensed Financ_3
Schedule II. Condensed Financial Statements of Parent Company (Condensed Balance Sheets) (Parenthetical) (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Fixed maturities, Available-for-sale securities, amortized cost | $ 1,720,291 | $ 1,659,760 |
Common stock, par value per share (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 75,000,000 | 75,000,000 |
Common stock, shares issued (in shares) | 25,055,479 | 25,015,963 |
Common stock, shares outstanding (in shares) | 25,055,479 | 25,015,963 |
United Fire Group, Inc. | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Fixed maturities, Available-for-sale securities, amortized cost | $ 150 | $ 150 |
Common stock, par value per share (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 75,000,000 | 75,000,000 |
Common stock, shares issued (in shares) | 25,055,479 | 25,015,963 |
Common stock, shares outstanding (in shares) | 25,055,479 | 25,015,963 |
Schedule II. Condensed Financ_4
Schedule II. Condensed Financial Statements of Parent Company (Condensed Statement of Income and Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues | |||||||||||
Investment income | $ 39,670 | $ 60,414 | $ 52,894 | ||||||||
Total revenues | $ 310,898 | $ 282,121 | $ 297,803 | $ 177,805 | $ 293,374 | $ 298,055 | $ 304,197 | $ 305,539 | 1,068,627 | 1,201,165 | 1,070,166 |
Expenses | |||||||||||
Net income (loss) | (112,706) | 14,820 | 27,650 | ||||||||
Other comprehensive income (loss) | |||||||||||
Change in unrealized appreciation on investments held by subsidiary | 47,054 | 70,127 | (50,985) | ||||||||
Change in liability for underfunded employee benefit plans of subsidiary | 18,456 | (20,924) | 25,513 | ||||||||
Other comprehensive income (loss), before tax and reclassification adjustments | 65,510 | 49,203 | (25,472) | ||||||||
Income tax effect | (13,757) | (10,334) | 5,349 | ||||||||
Reclassification adjustment for net realized (gains) losses included in income | (1,750) | 1,521 | 784 | ||||||||
Reclassification adjustment for employee benefit costs included in expense | 4,289 | 4,497 | 6,642 | ||||||||
Total reclassification adjustments, before tax | 2,539 | 6,018 | 7,426 | ||||||||
Income tax effect | (534) | (1,263) | (1,559) | ||||||||
Comprehensive income (loss) | (58,948) | 58,444 | 13,394 | ||||||||
United Fire Group, Inc. | |||||||||||
Revenues | |||||||||||
Investment income | 141 | 295 | 396 | ||||||||
Total revenues | 141 | 295 | 396 | ||||||||
Expenses | |||||||||||
Other operating expenses | 10 | 86 | 95 | ||||||||
Total expenses | 10 | 86 | 95 | ||||||||
Income before income taxes and equity in net income of subsidiary | 131 | 209 | 301 | ||||||||
Federal income tax expense (benefit) | 68 | 44 | (1,165) | ||||||||
Net income before equity in net income (loss) of subsidiary | 63 | 165 | 1,466 | ||||||||
Equity in net income (loss) of subsidiary | (112,769) | 14,655 | 26,184 | ||||||||
Net income (loss) | (112,706) | 14,820 | 27,650 | ||||||||
Other comprehensive income (loss) | |||||||||||
Change in unrealized appreciation on investments held by subsidiary | 47,054 | 70,127 | (50,985) | ||||||||
Change in liability for underfunded employee benefit plans of subsidiary | 18,456 | (20,924) | 25,513 | ||||||||
Other comprehensive income (loss), before tax and reclassification adjustments | 65,510 | 49,203 | (25,472) | ||||||||
Income tax effect | (13,757) | (10,334) | 5,349 | ||||||||
Other comprehensive income (loss), after tax, before reclassification adjustments | 51,753 | 38,869 | (20,123) | ||||||||
Reclassification adjustment for net realized (gains) losses included in income | (1,750) | 1,521 | 784 | ||||||||
Reclassification adjustment for employee benefit costs included in expense | 4,289 | 4,497 | 6,642 | ||||||||
Total reclassification adjustments, before tax | 2,539 | 6,018 | 7,426 | ||||||||
Income tax effect | (534) | (1,263) | (1,559) | ||||||||
Total reclassification adjustments, after tax | 2,005 | 4,755 | 5,867 | ||||||||
Comprehensive income (loss) | $ (58,948) | $ 58,444 | $ 13,394 |
Schedule II. Condensed Financ_5
Schedule II. Condensed Financial Statements of Parent Company (Condensed Statement of Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities | |||
Net income (loss) | $ (112,706) | $ 14,820 | $ 27,650 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Other, net | 9,602 | (1,274) | 9,847 |
Net cash provided by operating activities | 41,435 | 93,752 | 110,104 |
Cash flows from investing activities | |||
Net cash provided by (used in) investing activities | (92,871) | 4,501 | (19,204) |
Cash flows from financing activities | |||
Repurchase of common stock | (2,741) | (11,700) | (5,404) |
Issuance of common stock | (71) | 2,377 | 7,171 |
Net cash provided by (used in) financing activities | 18,662 | (41,985) | (115,188) |
Net Change in Cash and Cash Equivalents | (32,774) | 56,268 | (24,288) |
Cash and Cash Equivalents at Beginning of Year - Continuing Operations | 120,722 | 64,454 | 95,562 |
Cash and Cash Equivalents at End of Year - Continuing Operations | 87,948 | 120,722 | 64,454 |
United Fire Group, Inc. | |||
Cash flows from operating activities | |||
Net income (loss) | (112,706) | 14,820 | 27,650 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Equity in net income of subsidiary | 112,769 | (14,655) | (26,184) |
Dividends received from subsidiary | 4,000 | 57,000 | 105,000 |
Other, net | 3,907 | 5,512 | 1,824 |
Total adjustments | 120,676 | 47,857 | 80,640 |
Net cash provided by operating activities | 7,970 | 62,677 | 108,290 |
Cash flows from investing activities | |||
Net cash provided by (used in) investing activities | 0 | 0 | 0 |
Cash flows from financing activities | |||
Payment of cash dividends | (28,532) | (32,662) | (105,408) |
Repurchase of common stock | (2,741) | (11,700) | (5,404) |
Issuance of common stock | (71) | 2,377 | 7,171 |
Net cash provided by (used in) financing activities | (31,344) | (41,985) | (103,641) |
Net Change in Cash and Cash Equivalents | (23,374) | 20,692 | 4,649 |
Cash and Cash Equivalents at Beginning of Year - Continuing Operations | 29,878 | 9,186 | 4,537 |
Cash and Cash Equivalents at End of Year - Continuing Operations | $ 6,504 | $ 29,878 | $ 9,186 |
Schedule III. Supplementary I_2
Schedule III. Supplementary Insurance Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | ||||
Deferred Policy Acquisition Costs | $ 87,094 | $ 94,292 | $ 92,796 | |
Future Policy Benefits, Losses, Claims and Loss Expenses | 1,578,131 | 1,421,754 | 1,312,483 | |
Unearned Premiums | 464,845 | 505,162 | 492,918 | |
Earned Premium Revenue | 1,055,082 | 1,086,972 | 1,050,454 | |
Investment Income, Net | 39,670 | 60,414 | 65,557 | |
Benefits, Claims, Losses and Settlement Expenses | 869,467 | 830,172 | 747,457 | |
Amortization of Deferred Policy Acquisition Costs | 210,252 | 216,199 | 208,127 | |
Other Underwriting Expenses | 143,332 | 137,415 | 145,337 | |
Interest on Policyholders' Accounts | 0 | 0 | 4,499 | |
Premiums Written | 1,011,350 | 1,096,730 | 1,061,664 | |
Property and casualty business | ||||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | ||||
Deferred Policy Acquisition Costs | 87,094 | 94,292 | 92,796 | |
Future Policy Benefits, Losses, Claims and Loss Expenses | 1,578,131 | 1,421,754 | 1,312,483 | |
Unearned Premiums | 464,845 | 505,162 | 492,918 | |
Earned Premium Revenue | 1,055,082 | 1,086,972 | 1,037,451 | |
Investment Income, Net | 39,670 | 60,414 | 52,894 | |
Benefits, Claims, Losses and Settlement Expenses | 869,467 | 830,172 | 731,611 | |
Amortization of Deferred Policy Acquisition Costs | 210,252 | 216,199 | 206,232 | |
Other Underwriting Expenses | 143,332 | 137,415 | 141,473 | |
Interest on Policyholders' Accounts | 0 | 0 | 0 | |
Premiums Written | 1,011,350 | 1,096,730 | 1,061,664 | |
Discontinued Operations | Life Insurance | ||||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | ||||
Deferred Policy Acquisition Costs | [1] | 0 | 0 | 0 |
Future Policy Benefits, Losses, Claims and Loss Expenses | [1] | 0 | 0 | 0 |
Unearned Premiums | [1] | 0 | 0 | 0 |
Earned Premium Revenue | [1] | 0 | 0 | 13,003 |
Investment Income, Net | [1] | 0 | 0 | 12,663 |
Benefits, Claims, Losses and Settlement Expenses | [1] | 0 | 0 | 15,846 |
Amortization of Deferred Policy Acquisition Costs | [1] | 0 | 0 | 1,895 |
Other Underwriting Expenses | [1] | 0 | 0 | 3,864 |
Interest on Policyholders' Accounts | [1] | 0 | 0 | 4,499 |
Premiums Written | [1] | $ 0 | $ 0 | $ 0 |
[1] | Annuity deposits are included in future policy benefits, losses, claims and loss expenses |
Schedule IV. Reinsurance (Detai
Schedule IV. Reinsurance (Details) - Property and casualty business - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Gross Amount | $ 1,106,327 | $ 1,133,583 | $ 1,083,981 |
Ceded to Other Companies | 84,924 | 72,023 | 63,487 |
Assumed From Other Companies | 33,679 | 25,412 | 16,957 |
Net Amount | $ 1,055,082 | $ 1,086,972 | $ 1,037,451 |
Percentage of Amount Assumed to Net Earned | 3.19% | 2.34% | 1.63% |
Schedule V. Valuation and Qua_2
Schedule V. Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Allowance for bad debts | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at beginning of period | $ 1,239 | $ 785 | $ 1,255 | |
Charged to costs and expenses | 0 | 454 | 0 | |
Deductions | 552 | 0 | 470 | |
Balance at end of period | 687 | 1,239 | 785 | |
Deferred tax asset valuation allowance | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at beginning of period | [1] | 0 | 0 | 329 |
Charged to costs and expenses | [1] | 0 | 0 | 0 |
Deductions | [1] | 0 | 0 | 329 |
Balance at end of period | [1] | $ 0 | $ 0 | $ 0 |
[1] | Recorded in connection with the purchase of American Indemnity Financial Corporation in 1999 |
Schedule_VI. Supplemental Inf_2
Schedule VI. Supplemental Information Concerning Property and Casualty Insurance Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Line Items] | |||
Net Realized Investment Gains (Losses) | $ (32,395) | $ 53,779 | $ (20,179) |
Claims and Claim Adjustment Expenses Incurred Related to: Current Year | 887,119 | 835,507 | 785,778 |
Claims and Claim Adjustment Expenses Incurred Related to: Prior Years | (17,652) | (5,335) | (54,167) |
Consolidated Property and Casualty Insurance Entity | |||
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Line Items] | |||
Deferred Policy Acquisition Costs | 87,094 | 94,292 | 92,796 |
Reserves for Unpaid Claims and Claim Adjustment Expenses | 1,578,131 | 1,421,754 | 1,312,483 |
Unearned Premiums | 464,845 | 505,162 | 492,928 |
Earned Premiums | 1,055,082 | 1,086,972 | 1,037,451 |
Net Realized Investment Gains (Losses) | (32,395) | 53,779 | (20,179) |
Net Investment Income | 39,670 | 60,414 | 52,894 |
Claims and Claim Adjustment Expenses Incurred Related to: Current Year | 887,119 | 835,507 | 785,778 |
Claims and Claim Adjustment Expenses Incurred Related to: Prior Years | (17,652) | (5,335) | (54,167) |
Amortization of Deferred Policy Acquisition Costs | 210,252 | 216,699 | 206,232 |
Paid Claims and Claim Adjustment Expenses | 776,397 | 732,343 | 640,534 |
Premiums Written | $ 1,011,350 | $ 1,096,730 | $ 1,061,664 |