Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 01, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
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, $0.001 par value | |
Trading Symbol | UFCS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 25,336,103 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000101199 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Investments: | ||
Fixed maturities, available-for-sale, at fair value (amortized cost $1,895,582 in 2024 and $1,771,041 in 2023) | $ 1,796,133 | $ 1,686,502 |
Equity securities at fair value (cost $0 in 2024 and $29,238 in 2023) | 0 | 55,019 |
Mortgage loans | 41,283 | 45,421 |
Less: allowance for mortgage loan losses | 45 | 55 |
Mortgage loans, net | 41,238 | 45,366 |
Other long-term investments | 98,405 | 99,507 |
Short-term investments | 100 | 100 |
Total investments | 1,935,876 | 1,886,494 |
Cash and cash equivalents | 153,430 | 102,046 |
Accrued investment income | 16,543 | 15,934 |
Premiums receivable (net of allowance for doubtful accounts of $1,752 in 2024 and $1,794 in 2023) | 584,521 | 464,791 |
Deferred policy acquisition costs | 144,044 | 126,532 |
Property and equipment at cost (less accumulated depreciation of $72,697 in 2024 and $68,242 in 2023) | 134,622 | 134,247 |
Reinsurance receivables (net of allowance for credit losses of $102 in 2024 and $97 in 2023) | 243,988 | 223,269 |
Prepaid reinsurance premiums | 32,899 | 27,682 |
Intangible assets | 4,261 | 4,615 |
Deferred tax asset | 26,585 | 13,621 |
Income taxes receivable | 19,600 | 21,463 |
Other assets | 112,328 | 123,496 |
TOTAL ASSETS | 3,408,697 | 3,144,190 |
Liabilities | ||
Losses and loss settlement expenses | 1,755,739 | 1,638,755 |
Unearned premiums | 633,648 | 549,384 |
Accrued expenses and other liabilities | 175,750 | 172,306 |
Long term debt | 116,965 | 50,000 |
TOTAL LIABILITIES | 2,682,102 | 2,410,445 |
Stockholders' Equity | ||
Common stock, $0.001 par value; authorized 75,000,000 shares; 25,336,103 and 25,269,842 shares issued and outstanding in 2024 and 2023, respectively | 25 | 25 |
Additional paid-in capital | 212,327 | 209,986 |
Retained earnings | 577,359 | 574,691 |
Accumulated other comprehensive income (loss), net of tax | (63,116) | (50,957) |
TOTAL STOCKHOLDERS' EQUITY | 726,595 | 733,745 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 3,408,697 | $ 3,144,190 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Available-for-sale, amortized cost | $ 1,895,582 | $ 1,771,041 |
Equity securities, cost | 0 | 29,238 |
Allowance for doubtful accounts | 1,752 | 1,794 |
Property and equipment accumulated depreciation | 72,697 | 68,242 |
Reinsurance receivables and recoverables, allowance for credit losses | $ 102 | $ 97 |
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 outstanding (in shares) | 25,336,103 | 25,269,842 |
Common stock, shares issued (in shares) | 25,336,103 | 25,269,842 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenues | ||||
Net premiums earned | $ 287,569 | $ 254,638 | $ 568,428 | $ 510,765 |
Net investment income | 18,029 | 11,327 | 34,371 | 24,049 |
Net investment gains (losses) (includes reclassifications for net unrealized investment gains (losses) on available-for-sale securities of $(1,229) and $(3,793) in 2024 and $(152) and $(692) in 2023; previously included in accumulated other comprehensive income (loss)) | (1,229) | 1,124 | (2,431) | (621) |
Other income (loss) | (3,200) | 0 | (3,200) | 0 |
Total revenues | 301,169 | 267,089 | 597,168 | 534,193 |
Benefits, Losses and Expenses | ||||
Losses and loss settlement expenses | 201,325 | 250,730 | 380,971 | 425,327 |
Amortization of deferred policy acquisition costs | 67,389 | 59,156 | 133,079 | 118,991 |
Other underwriting expenses (includes reclassifications for employee benefit costs of $0 and $0 in 2024 and $52 and $104 in 2023; previously included in accumulated other comprehensive income (loss)) | 34,613 | 28,832 | 67,078 | 59,135 |
Interest expense | 1,460 | 797 | 2,319 | 1,594 |
Other non-underwriting expenses | 152 | (199) | 1,207 | 1,374 |
Total benefits, losses and expenses | 304,939 | 339,316 | 584,654 | 606,421 |
Income (loss) before income taxes | (3,770) | (72,227) | 12,514 | (72,228) |
Federal income tax expense (benefit) (includes reclassifications of $259 and $797 in 2024 and $43 and $167 in 2023; previously included in accumulated other comprehensive income (loss)) | (1,035) | (15,845) | 1,747 | (16,540) |
Net Income (loss) | (2,735) | (56,382) | 10,767 | (55,688) |
Other comprehensive income (loss) | ||||
Change in net unrealized gain (loss) on investments | (6,654) | (19,616) | (17,750) | (1,612) |
Change in liability for underfunded employee benefit plans | (724) | (820) | (1,448) | (1,640) |
Foreign currency translation adjustment | 35 | 0 | 12 | 0 |
Other comprehensive income (loss), before tax and reclassification adjustments | (7,343) | (20,436) | (19,186) | (3,252) |
Income tax effect | 1,549 | 4,293 | 4,031 | 684 |
Other comprehensive income (loss), after tax, before reclassification adjustments | (5,794) | (16,143) | (15,155) | (2,568) |
Reclassification adjustment for net investment losses included in income | 1,229 | 152 | 3,793 | 692 |
Reclassification adjustment for employee benefit costs included in expense | 0 | 52 | 0 | 104 |
Total reclassification adjustments, before tax | 1,229 | 204 | 3,793 | 796 |
Income tax effect | (259) | (43) | (797) | (167) |
Total reclassification adjustments, after tax | 970 | 161 | 2,996 | 629 |
Comprehensive income (loss) | $ (7,559) | $ (72,364) | $ (1,392) | $ (57,627) |
Diluted weighted average common shares outstanding (in shares) | 25,314,456 | 25,249,073 | 25,895,481 | 25,234,834 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ (0.11) | $ (2.23) | $ 0.43 | $ (2.21) |
Diluted (in dollars per share) | $ (0.11) | $ (2.23) | $ 0.42 | $ (2.21) |
Consolidated Statements of In_2
Consolidated Statements of Income and Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||||
Reclassification adjustment for net realized gains (losses) included in income | $ (1,229) | $ (152) | $ (3,793) | $ (692) |
Reclassification adjustment for employee benefit costs included in expense | 0 | 52 | 0 | 104 |
Reclassifications for federal income tax expense (benefit) | $ 259 | $ 43 | $ 797 | $ 167 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional paid-in capital | Retaining Earnings | Accumulated other comprehensive income (loss) | |
Balance, beginning (in shares) at Dec. 31, 2022 | 25,210,541 | |||||
Beginning balance at Dec. 31, 2022 | $ 740,114 | $ 25 | $ 207,030 | $ 620,555 | $ (87,496) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 694 | 694 | ||||
Stock based compensation (in shares) | 21,012 | |||||
Stock based compensation | 980 | 980 | ||||
Dividends on common stock | (4,037) | (4,037) | ||||
Change in net unrealized investment gain (loss) | [1] | 14,650 | 14,650 | |||
Change in liability for underfunded employee benefit plans | [2] | (607) | (607) | |||
Balance, ending (in shares) at Mar. 31, 2023 | 25,231,553 | |||||
Ending balance at Mar. 31, 2023 | 751,795 | $ 25 | 208,010 | 617,213 | (73,453) | |
Balance, beginning (in shares) at Dec. 31, 2022 | 25,210,541 | |||||
Beginning balance at Dec. 31, 2022 | 740,114 | $ 25 | 207,030 | 620,555 | (87,496) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (55,688) | |||||
Foreign currency translation adjustment | 0 | |||||
Balance, ending (in shares) at Jun. 30, 2023 | 25,262,949 | |||||
Ending balance at Jun. 30, 2023 | 676,366 | $ 25 | 208,987 | 556,789 | (89,435) | |
Balance, beginning (in shares) at Mar. 31, 2023 | 25,231,553 | |||||
Beginning balance at Mar. 31, 2023 | 751,795 | $ 25 | 208,010 | 617,213 | (73,453) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (56,382) | (56,382) | ||||
Stock based compensation (in shares) | 31,396 | |||||
Stock based compensation | 977 | 977 | ||||
Dividends on common stock | (4,042) | (4,042) | ||||
Change in net unrealized investment gain (loss) | [1] | (15,376) | (15,376) | |||
Change in liability for underfunded employee benefit plans | [2] | (606) | (606) | |||
Foreign currency translation adjustment | 0 | |||||
Balance, ending (in shares) at Jun. 30, 2023 | 25,262,949 | |||||
Ending balance at Jun. 30, 2023 | $ 676,366 | $ 25 | 208,987 | 556,789 | (89,435) | |
Balance, beginning (in shares) at Dec. 31, 2023 | 25,269,842 | 25,269,842 | ||||
Beginning balance at Dec. 31, 2023 | $ 733,745 | $ 25 | 209,986 | 574,691 | (50,957) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 13,502 | 13,502 | ||||
Stock based compensation (in shares) | 23,314 | |||||
Stock based compensation | 900 | 900 | ||||
Dividends on common stock | (4,046) | (4,046) | ||||
Change in net unrealized investment gain (loss) | [3] | (6,740) | (6,740) | |||
Change in liability for underfunded employee benefit plans | [4] | (572) | (572) | |||
Foreign currency translation adjustment | (23) | (23) | ||||
Balance, ending (in shares) at Mar. 31, 2024 | 25,293,156 | |||||
Ending balance at Mar. 31, 2024 | $ 736,766 | $ 25 | 210,886 | 584,147 | (58,292) | |
Balance, beginning (in shares) at Dec. 31, 2023 | 25,269,842 | 25,269,842 | ||||
Beginning balance at Dec. 31, 2023 | $ 733,745 | $ 25 | 209,986 | 574,691 | (50,957) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 10,767 | |||||
Foreign currency translation adjustment | $ 12 | |||||
Balance, ending (in shares) at Jun. 30, 2024 | 25,336,103 | 25,336,103 | ||||
Ending balance at Jun. 30, 2024 | $ 726,595 | $ 25 | 212,327 | 577,359 | (63,116) | |
Balance, beginning (in shares) at Mar. 31, 2024 | 25,293,156 | |||||
Beginning balance at Mar. 31, 2024 | 736,766 | $ 25 | 210,886 | 584,147 | (58,292) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (2,735) | (2,735) | ||||
Stock based compensation (in shares) | 42,947 | |||||
Stock based compensation | 1,441 | 1,441 | ||||
Dividends on common stock | (4,053) | (4,053) | ||||
Change in net unrealized investment gain (loss) | [3] | (4,287) | (4,287) | |||
Change in liability for underfunded employee benefit plans | [4] | (572) | (572) | |||
Foreign currency translation adjustment | $ 35 | 35 | ||||
Balance, ending (in shares) at Jun. 30, 2024 | 25,336,103 | 25,336,103 | ||||
Ending balance at Jun. 30, 2024 | $ 726,595 | $ 25 | $ 212,327 | $ 577,359 | $ (63,116) | |
[1] The change in net unrealized gain (loss) is net of reclassification adjustments and income taxes. The change in liability for underfunded employee benefit plans is net of reclassification adjustments and income taxes. The change in net unrealized gain (loss) is net of reclassification adjustments and income taxes. The change in liability for underfunded employee benefit plans is net of reclassification adjustments and income taxes. |
Consolidated Statement of Sto_2
Consolidated Statement of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends on common stock (in dollars per share) | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.16 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash Flows From Operating Activities | ||
Net income (loss) | $ 10,767 | $ (55,688) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | ||
Net accretion of bond premium | 3,061 | 3,491 |
Depreciation and amortization | 5,820 | 5,182 |
Stock-based compensation expense | 2,711 | 2,175 |
Net investment (gains) losses | 2,672 | 312 |
Net cash flows from equity and trading investments | 56,381 | 39,553 |
Deferred income tax expense (benefit) | (9,729) | (6,433) |
Changes in: | ||
Accrued investment income | (609) | (258) |
Premiums receivable | (119,730) | (97,957) |
Deferred policy acquisition costs | (17,512) | (18,424) |
Reinsurance receivables | (20,719) | (23,913) |
Prepaid reinsurance premiums | (5,217) | (1,670) |
Income taxes receivable | 1,863 | (11,432) |
Other assets | 12,121 | (248) |
Losses and loss settlement expenses | 116,984 | 117,558 |
Unearned premiums | 84,264 | 63,249 |
Accrued expenses and other liabilities | 1,996 | 16,997 |
Other, net | 2,368 | 5,370 |
Net cash provided by (used in) operating activities | 127,492 | 37,864 |
Cash Flows From Investing Activities | ||
Proceeds from sale of available-for-sale investments | 233,999 | 43,809 |
Proceeds from call and maturity of available-for-sale investments | 67,124 | 28,036 |
Proceeds from sale of other investments | 6,097 | 2,111 |
Purchase of investments in mortgage loans | 0 | (8,137) |
Purchase of investments available-for-sale | (432,768) | (94,204) |
Purchase of other investments | (3,216) | (12,511) |
Net purchases and sales of property and equipment | (5,840) | (5,617) |
Net cash provided by (used in) investing activities | (134,604) | (46,513) |
Cash Flows From Financing Activities | ||
Debt Note Issuance | 66,965 | 0 |
Issuance of common stock | (370) | (218) |
Payment of cash dividends | (8,099) | (8,079) |
Net cash provided by (used in) financing activities | 58,496 | (8,297) |
Net Change in Cash and Cash Equivalents | 51,384 | (16,946) |
Cash and Cash Equivalents at Beginning of Period | 102,046 | 96,650 |
Cash and Cash Equivalents at End of Period | 153,430 | 79,704 |
Supplemental Disclosures of Cash Flow Information | ||
Income taxes paid | 9,612 | 1,324 |
Interest paid | $ 2,319 | $ 1,594 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS AND BASIS OF PRESENTATION | NATURE OF OPERATIONS AND BASIS OF PRESENTATION Nature of Business United Fire Group, Inc. ("UFG," 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 property and casualty insurers in 50 states and the District of Columbia. Basis of Presentation The financial information for interim periods presented in these Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") and with the instructions to Form 10-Q and Regulation S-X promulgated by the SEC. Certain financial information that is included in our Annual Report on Form 10-K for the year ended December 31, 2023, including certain financial statement footnote disclosures, is not required by the rules and regulations of the SEC for interim financial reporting and has been condensed or omitted. 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; loss settlement expenses; and pension benefit obligations. Management believes the accompanying Consolidated Financial Statements contain all adjustments (consisting of normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the periods presented. All significant intercompany transactions have been eliminated in consolidation. The results reported for the interim periods are not necessarily indicative of the results of operations that may be expected for the year. The Consolidated Financial Statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2023, filed on February 29, 2024. Segment Information UFG has one reporting segment, which is consistent with and reflects the manner by which our Chief Operating Decision Maker views and manages the business. 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. We will continue to evaluate our operations on the basis of both statutory accounting principles prescribed or permitted by our states of domicile and GAAP. 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") Deferred policy acquisition costs include commissions, premium taxes and variable underwriting and policy issue expenses, which are incremental direct costs of successful contract acquisitions. Property and casualty insurance policy acquisition costs deferred are amortized ratably as the related premium revenue is recognized. The following table is a summary of the components of DAC, including the related amortization recognized for the six-month period ended June 30, 2024. Total Recorded asset at beginning of period $ 126,532 Underwriting costs deferred 150,591 Amortization of deferred policy acquisition costs (133,079) Recorded asset at June 30, 2024 $ 144,044 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. Other Intangible Assets Our other intangible assets, which consist primarily of agency relationships, trade names, state insurance licenses, and software, are being amortized using the straight-line method over periods ranging from two years to 15 years, with the exception of state insurance licenses, which are indefinite-lived and not amortized. Long Term Debt The Company issues debt through private placement transactions in the form of senior unsecured notes and surplus 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. Costs incurred in the issuance of debt are capitalized and amortized over the life of the non-cancellable period of the debt. The capitalization of such debt issuance costs are included as an offset to the long-term debt liability and the related amortization is included in interest expense. Interest payments under the long-term debt are paid quarterly each year. The interest rate will be defined in each respective Note Purchase Agreement. Interest is included in accrued expenses and other liabilities in the Consolidated Balance Sheets and as interest expense in the Consolidated Statements of Income and Comprehensive Income. For more information on long-term debt refer to Note 8 "Debt." Income Taxes 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. We reported a consolidated federal income tax expense of $1,747 for the six-month period ended June 30, 2024 compared to an income tax benefit of $16,540 during the same period of 2023. Our effective tax rate for 2024 and 2023 is different than the federal statutory rate of 21 percent, due principally to the net effect of tax-exempt municipal bond interest income. The Company performs a quarterly review of its tax positions and makes a determination of 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 positions will be sustained, the Company will calculate any unrecognized tax benefits and, if necessary, calculate and accrue any related interest and penalties. We did not recognize any liability for unrecognized tax benefits at June 30, 2024 or December 31, 2023. 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. Deferred tax assets are reduced by a valuation allowance when management believes it is more likely than not that some, or all, of the deferred taxes will not be realized. After considering all positive and negative evidence of taxable income in the carryback and carryforward periods and our tax planning strategy of holding debt securities with unrealized losses to maturity or recovery, we believe it is more likely than not that all the deferred assets will be realized. As a result, we have no valuation allowance at June 30, 2024 or December 31, 2023. For each of the six-month periods ended June 30, 2024 and 2023, we made payments for income taxes totaling $9,612 and $1,324, respectively. We did not receive a federal tax refund for the six-month periods ended June 30, 2024 and 2023. 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 2018. 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 10 "Leases." Credit Losses The Company recognizes credit losses for our 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 current economic conditions, management's expectations of future economic conditions and performance indicators, such as market value versus amortized cost, investment spreads widening or contracting, rating actions, payment and default history. For more information on credit losses and the allowance for credit losses for our 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 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 reinsurer, historical relationship with UFG, existence of letters of credit and known regulation for which the Company may be held accountable. The ultimate LGD percentage is estimated after considering Moody's experience with unsecured year one bond recovery rates from 1983-2017. The allowance calculated as of June 30, 2024 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 June 30, 2024, the Company had a credit loss allowance for reinsurance receivables of $102. Rollforward of credit loss allowance for reinsurance receivables: As of June 30, 2024 Beginning balance, January 1, 2024 $ 97 Current-period provision for expected credit losses 5 Write-off charged against the allowance, if any — Recoveries of amounts previously written off, if any — Ending balance of the allowance for reinsurance receivables, June 30, 2024 $ 102 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. 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. In July 2024, the Company identified rating errors related to umbrella and general liability products that resulted in an overcharge to certain policyholders. Corrective actions are currently underway, and we are voluntarily notifying and cooperating with state insurance regulators to determine the appropriate extent of refunds to impacted policyholders. We may receive requests for information in the future from regulators in connection with this matter. As a result of this issue, the Company recorded an estimated liability of $3.2 million to cover our anticipated exposure for this matter based on information available to management at this time. This amount is recorded through the line "Other income (loss)" in the Consolidated Statement of Income and Comprehensive Income. However, our estimate of the anticipated exposure may change as additional information becomes available and we continue our discussions with regulatory agencies. The Company is reviewing other business lines to determine whether other similar issues exist. Fines, penalties or further refunds related to the foregoing are reasonably possible, but the amount of such losses, if any, cannot be estimated at this time. Recently Issued Accounting Standards Adopted Pronouncements We have not adopted any Accounting Standard Update (“ASU”) in the current period nor year-to-date. Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this update improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expense categories that are regularly provided to the Chief Operating Decision Maker ("CODM") and included in each reported measure of a segment’s profit or loss. In addition, the amendments enhance interim disclosure requirements that are currently required annually, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, and contain other disclosure requirements. Additionally, the amendments require that entities with a single reportable segment must now provide all the disclosures previously required under Topic 280. The amendments in this update are incremental to the current requirements of Topic 280 and do not change how a public entity identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments. The enhanced segment disclosure requirements apply retrospectively to all prior periods presented in the financial statements. The significant segment expense and other segment item amounts disclosed in prior periods shall be based on the significant segment expense categories identified and disclosed in the period of adoption. The amendments in this update are effective for all public entities for fiscal years beginning after December 15, 2023, and interim periods beginning after December 15, 2024. Early adoption is permitted, and the updates must be applied retrospectively to all periods presented in the financial statements. We do not expect to early adopt this standard and are in the process of assessing its impact on our disclosures upon adoption. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this update enhance the transparency of the income tax disclosures by expanding on the disclosures required annually. The amendments require entities to disclose in their rate reconciliation table additional categories of information about federal, state, and foreign income taxes, in addition to providing details about the reconciling items in some categories if above a quantitative threshold. Additionally, the amendments require annual disclosure of income taxes paid (net of refunds received) disaggregated by jurisdiction based on a quantitative threshold. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The amendments should be applied on a prospective basis, and retrospective application is permitted. We do not expect to early adopt this standard and are in the process of assessing its impact on our disclosures upon adoption. |
Summary of Investments
Summary of Investments | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
SUMMARY OF INVESTMENTS | SUMMARY OF INVESTMENTS Fair Value of Investments A reconciliation of the amortized cost to fair value of investments in our available-for-sale fixed maturity portfolio, presented on a consolidated basis, as of June 30, 2024 and December 31, 2023, is provided below: June 30, 2024 Type of Investment Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Allowance for Credit Losses Fair Value AVAILABLE-FOR-SALE Fixed maturities: Bonds U.S. Treasury $ 51,211 $ 56 $ 618 $ — $ 50,649 U.S. government agency 97,438 57 9,154 — 88,341 States, municipalities and political subdivisions General obligations: Midwest 38,918 — 469 — 38,449 Northeast 7,121 — 122 — 6,999 South 36,875 — 768 — 36,107 West 58,789 35 939 — 57,885 Special revenue: Midwest 64,440 2 729 — 63,713 Northeast 50,012 23 767 — 49,268 South 121,547 21 2,932 — 118,636 West 86,246 8 1,485 — 84,769 Foreign bonds 16,210 11 1,083 — 15,138 Public utilities 141,202 286 10,720 — 130,768 Corporate bonds Energy 41,879 3 2,245 — 39,637 Industrials 58,647 86 5,011 — 53,722 Consumer goods and services 101,945 52 8,675 — 93,322 Health care 31,795 — 4,939 — 26,856 Technology, media and telecommunications 82,279 — 7,305 — 74,974 Financial services 233,099 852 6,379 — 227,572 Mortgage-backed securities 219,159 500 3,380 — 216,279 Collateralized mortgage obligations Government National Mortgage Association 151,577 161 14,138 — 137,600 Federal Home Loan Mortgage Corporation 79,811 — 14,502 — 65,309 Federal National Mortgage Association 46,395 23 5,201 — 41,217 Asset-backed securities 78,987 123 187 — 78,923 Total Available-for-Sale Fixed Maturities $ 1,895,582 $ 2,299 $ 101,748 $ — $ 1,796,133 December 31, 2023 Type of Investment Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Allowance for Credit Losses Fair Value AVAILABLE-FOR-SALE Fixed maturities: Bonds U.S. Treasury $ 51,211 $ 325 $ 675 $ — $ 50,861 U.S. government agency 102,540 255 8,302 — 94,493 States, municipalities and political subdivisions General obligations: Midwest 52,712 132 137 — 52,707 Northeast 11,422 1 43 — 11,380 South 54,560 47 400 — 54,207 West 77,874 23 471 — 77,426 Special revenue: Midwest 101,037 302 358 — 100,981 Northeast 52,708 79 560 — 52,227 South 166,119 302 2,155 — 164,266 West 102,254 147 836 — 101,565 Foreign bonds 21,255 — 2,083 — 19,172 Public utilities 149,734 787 10,054 — 140,467 Corporate bonds Energy 45,351 249 2,127 — 43,473 Industrials 74,760 727 4,939 — 70,548 Consumer goods and services 103,315 271 7,665 — 95,921 Health care 37,872 99 4,499 — 33,472 Technology, media and telecommunications 87,002 451 5,665 — 81,788 Financial services 152,329 743 7,381 1 145,690 Mortgage-backed securities 23,800 11 2,328 — 21,483 Collateralized mortgage obligations Government National Mortgage Association 164,666 1,282 12,742 — 153,206 Federal Home Loan Mortgage Corporation 84,842 20 13,177 — 71,685 Federal National Mortgage Association 50,284 33 4,664 — 45,653 Asset-backed securities 3,394 524 87 — 3,831 Total Available-for-Sale Fixed Maturities $ 1,771,041 $ 6,810 $ 91,348 $ 1 $ 1,686,502 Maturities The amortized cost and fair value of available-for-sale fixed maturity securities at June 30, 2024, by contractual maturity, are shown in the following tables. 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 June 30, 2024 Amortized Cost Fair Value Due in one year or less $ 119,744 $ 118,585 Due after one year through five years 418,408 406,880 Due after five years through 10 years 415,686 385,942 Due after 10 years 365,815 345,398 Asset-backed securities 78,987 78,923 Mortgage-backed securities 219,159 216,279 Collateralized mortgage obligations 277,783 244,126 $ 1,895,582 $ 1,796,133 Net Investment Gains and Losses Net 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 the components of net investment gains (losses) is as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net investment gains (losses): Fixed maturities: Available-for-sale $ (1,382) $ (248) $ (4,044) $ (426) Allowance for credit losses 1 177 1 1 Equity securities Net gains (losses) recognized on equity securities sold during the period — 1,735 1,362 2,235 Unrealized gains (losses) recognized during the period on equity securities held at reporting date — (459) — (2,164) Net gains (losses) recognized during the reporting period on equity securities — 1,276 1,362 71 Mortgage loans allowance for credit losses — (6) 10 (6) Other long-term investments 152 (122) 241 (308) Real estate — 47 — 47 Total net investment gains (losses) $ (1,229) $ 1,124 $ (2,431) $ (621) The proceeds and gross realized gains (losses) on the sale of available-for-sale fixed maturity securities are as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Proceeds from sales $ 145,621 $ 33,941 $ 233,999 $ 43,809 Gross realized gains 133 110 1,498 121 Gross realized losses 1,515 358 5,542 547 Funding Commitment Pursuant to agreements with our limited liability partnership investments, we are contractually committed through July 10, 2030 to make capital contributions upon the request of certain of the partnerships. Our remaining potential contractual obligation was $25,442 at June 30, 2024. Unrealized Gain and Loss A summary of the changes in net unrealized investment gain (loss) during the reporting period is as follows: Six Months Ended June 30, 2024 2023 Change in net unrealized investment gain (loss) Available-for-sale fixed maturities $ (13,958) $ (919) Income tax effect 2,931 193 Total change in net unrealized investment gain (loss), net of tax $ (11,027) $ (726) Credit Risk An allowance for credit losses is recorded based on a number of factors including current economic conditions, management's expectations of future economic conditions and performance indicators, such as market value versus 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 June 30, 2024. Rollforward of allowance for credit losses for available-for-sale fixed maturity securities: As of June 30, 2024 Beginning balance, January 1, 2024 $ 1 Additions to the allowance for credit losses for which credit losses were not previously recorded Reductions for securities sold during the period (realized) Write-offs charged against the allowance Recoveries of amounts previously written off (1) Ending balance, June 30, 2024 $ — Fixed Maturities Unrealized Loss The following tables summarize our fixed maturity securities that were in an unrealized loss position reported on a consolidated basis at June 30, 2024 and December 31, 2023. 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. June 30, 2024 Less than 12 months 12 months or longer Total Type of Investment Number Fair Gross Unrealized Number Fair Gross Unrealized Loss Fair Gross Unrealized Loss AVAILABLE-FOR-SALE Fixed maturities: Bonds U.S. Treasury 2 $ 24,891 $ 47 8 $ 16,856 $ 571 $ 41,747 $ 618 U.S. government agency 4 13,890 91 23 70,493 9,063 84,383 9,154 States, municipalities and political subdivisions General obligations Midwest 7 18,941 123 7 18,388 346 37,329 469 Northeast 9 3,566 64 1 3,433 58 6,999 122 South 4 8,914 59 14 26,042 709 34,956 768 West 6 9,558 46 12 36,434 893 45,992 939 Special revenue Midwest 14 23,903 238 18 33,974 491 57,877 729 Northeast 3 6,844 28 13 32,544 739 39,388 767 South 13 24,560 213 42 89,295 2,719 113,855 2,932 West 14 17,608 207 30 63,881 1,278 81,489 1,485 Foreign bonds — — — 5 11,190 1,083 11,190 1,083 Public utilities 5 12,656 148 48 107,286 10,572 119,942 10,720 Corporate bonds Energy 3 7,613 52 13 31,759 2,193 39,372 2,245 Industrials 1 2,931 63 19 40,660 4,948 43,591 5,011 Consumer goods and services 6 11,860 155 29 76,528 8,520 88,388 8,675 Health care 3 5,412 95 9 21,444 4,844 26,856 4,939 Technology, media and telecommunications 4 13,285 344 27 61,689 6,961 74,974 7,305 Financial services 13 69,749 557 38 100,662 5,822 170,411 6,379 Mortgage-backed securities 18 128,323 777 50 17,020 2,603 145,343 3,380 Collateralized mortgage obligations Government National Mortgage Association 11 39,696 304 41 69,975 13,834 109,671 14,138 Federal Home Loan Mortgage Corporation 1 2,528 12 32 62,781 14,490 65,309 14,502 Federal National Mortgage Association 3 5,464 74 20 30,266 5,127 35,730 5,201 Asset-backed securities 6 22,483 115 1 2,612 72 25,095 187 Total Available-for-Sale Fixed Maturities 150 $ 474,675 $ 3,812 500 $ 1,025,212 $ 97,936 $ 1,499,887 $ 101,748 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. In determining whether an allowance for credit losses is necessary, the expected credit loss allowance model procedurally narrows down assets, including based on risk criteria, and then targets those assets which have met specific quantitative thresholds of price decrease and operating adjusted increase in spread. Assets meeting those thresholds are processed through models, such as present value of cash flows, to determine any necessary credit allowance adjustment. December 31, 2023 Less than 12 months 12 months or longer Total Type of Investment Number Fair Gross Unrealized Loss Number Fair Gross Unrealized Loss Fair Gross Unrealized Loss AVAILABLE-FOR-SALE Fixed maturities: Bonds U.S. Treasury 2 $ 4,138 $ 46 6 $ 12,717 $ 629 $ 16,855 $ 675 U.S. government agency 3 10,986 14 23 71,375 8,288 82,361 8,302 States, municipalities and political subdivisions General obligations Midwest 11 19,534 61 3 10,737 76 30,271 137 Northeast 3 5,371 8 1 3,469 35 8,840 43 South 12 21,753 91 9 16,610 309 38,363 400 West 17 38,204 140 7 20,064 331 58,268 471 Special revenue Midwest 17 29,535 113 11 23,375 245 52,910 358 Northeast 6 15,131 67 8 24,271 493 39,402 560 South 21 45,639 232 32 66,925 1,923 112,564 2,155 West 20 32,789 248 16 38,495 588 71,284 836 Foreign bonds — — — 9 19,172 2,083 19,172 2,083 Public utilities 4 7,151 74 48 111,793 9,980 118,944 10,054 Corporate bonds Energy — — — 15 34,331 2,127 34,331 2,127 Industrials 1 1,210 19 21 47,462 4,920 48,672 4,939 Consumer goods and services 4 14,724 98 28 68,837 7,567 83,561 7,665 Health care 1 3,000 2 11 26,544 4,497 29,544 4,499 Technology, media and telecommunications 1 3,969 35 27 62,988 5,630 66,957 5,665 Financial services 5 14,327 223 44 112,517 7,158 126,844 7,381 Mortgage-backed securities 3 2,783 33 48 15,758 2,295 18,541 2,328 Collateralized mortgage obligations Government National Mortgage Association 2 7,055 27 40 72,565 12,715 79,620 12,742 Federal Home Loan Mortgage Corporation 2 2,589 22 31 66,361 13,155 68,950 13,177 Federal National Mortgage Association 2 5,454 55 20 31,460 4,609 36,914 4,664 Asset-backed securities — — — 1 2,962 87 2,962 87 Total Available-for-Sale Fixed Maturities 137 $ 285,342 $ 1,608 459 $ 960,788 $ 89,740 $ 1,246,130 $ 91,348 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2024 | |
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 for identical financial instruments in active markets that we have the ability to access at the measurement date. • Level 2 : Valuations are based on quoted prices for similar financial instruments in active markets, 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' experience and who have demonstrated knowledge of the subject security. In order to determine the proper classification in the fair value hierarchy, 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 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 Supplemental Executive Retirement and Deferral Plan (the "Executive Retirement Plan"). 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 Plan. The COLI policies invest in mutual funds, which are priced daily by independent sources. As of June 30, 2024, the cash surrender value of the COLI policies was $12,450 w hich is equal to the fair value measured using Level 2 inputs, based on the underlying assets of the COLI policie s, and is included in other assets in the Consolidated Balance Sheets. Our long-term debt is not carried in the Consolidated Balance Sheet at fair value. The fair value of our long-term debt is estimated using Level 2 inputs based on quoted prices for similar financial instruments. The fair value is estimated using a discounted cash flow analysis. A summary of the carrying value and estimated fair value of our financial instruments at June 30, 2024 and December 31, 2023 is as follows: June 30, 2024 December 31, 2023 Fair Value Carrying Value Fair Value Carrying Value Assets Investments Fixed maturities: Available-for-sale securities $ 1,796,133 $ 1,796,133 $ 1,686,503 $ 1,686,502 Equity securities — — 55,019 55,019 Mortgage loans 38,737 41,238 42,632 45,366 Other long-term investments 98,405 98,405 99,507 99,507 Short-term investments 100 100 100 100 Cash and cash equivalents 153,430 153,430 102,046 102,046 Corporate-owned life insurance 12,450 12,450 11,913 11,913 Liabilities Long Term Debt 107,959 116,965 38,413 50,000 The following tables present the categorization for our financial instruments measured at fair value on a recurring basis. The table includes financial instruments at June 30, 2024 and December 31, 2023: June 30, 2024 Fair Value Measurements Description Total Level 1 Level 2 Level 3 AVAILABLE-FOR-SALE Fixed maturities: Bonds U.S. Treasury $ 50,649 $ — $ 50,649 $ — U.S. government agency 88,341 — 88,341 — States, municipalities and political subdivisions General obligations Midwest 38,449 — 38,449 — Northeast 6,999 — 6,999 — South 36,107 — 36,107 — West 57,885 — 57,885 — Special revenue Midwest 63,713 — 63,713 — Northeast 49,268 — 49,268 — South 118,636 — 118,636 — West 84,769 — 84,769 — Foreign bonds 15,138 — 15,138 — Public utilities 130,768 — 130,768 — Corporate bonds Energy 39,637 — 39,637 — Industrials 53,722 — 53,722 — Consumer goods and services 93,322 — 93,322 — Health care 26,856 — 26,856 — Technology, media and telecommunications 74,974 — 74,974 — Financial services 227,572 — 227,572 — Mortgage-backed securities 216,279 — 216,279 — Collateralized mortgage obligations Government National Mortgage Association 137,600 — 137,600 — Federal Home Loan Mortgage Corporation 65,309 — 65,309 — Federal National Mortgage Association 41,217 — 41,217 — Asset-backed securities 78,923 — 78,647 276 Total Available-for-Sale Fixed Maturities $ 1,796,133 $ — $ 1,795,857 $ 276 Short-Term Investments $ 100 $ 100 $ — $ — Money Market Accounts $ 51,654 $ 51,654 $ — $ — Corporate-Owned Life Insurance $ 12,450 $ — $ 12,450 $ — Total Assets Measured at Fair Value $ 1,860,337 $ 51,754 $ 1,808,307 $ 276 The fair value of financial instruments that are not carried at fair value on a recurring basis in the financial statements at June 30, 2024 are summarized below: Description Fair Value Total Level 1 Level 2 Level 3 Net Asset Value Financial assets: Cash and cash equivalents $ 101,776 $ 101,776 $ — $ — $ — Other Long Term Investments $ 98,405 $ — $ 1,277 $ — $ 97,128 Mortgage Loans $ 38,737 $ — $ — $ 38,737 $ — Total Financial assets not accounted for at fair value $ 238,918 $ 101,776 $ 1,277 $ 38,737 $ 97,128 Long Term Debt $ 107,959 $ 107,959 Total Financial liabilities not accounted for at fair value $ 107,959 $ — $ 107,959 $ — $ — December 31, 2023 Fair Value Measurements Description Total Level 1 Level 2 Level 3 AVAILABLE-FOR-SALE Fixed maturities: Bonds U.S. Treasury $ 50,861 $ — $ 50,861 $ — U.S. government agency 94,493 — 94,493 — States, municipalities and political subdivisions General obligations Midwest 52,707 — 52,707 — Northeast 11,380 — 11,380 — South 54,207 — 54,207 — West 77,426 — 77,426 — Special revenue Midwest 100,981 — 100,981 — Northeast 52,227 — 52,227 — South 164,266 — 164,266 — West 101,565 — 101,565 — Foreign bonds 19,172 — 19,172 — Public utilities 140,467 — 140,467 — Corporate bonds Energy 43,473 — 43,473 — Industrials 70,548 — 70,548 — Consumer goods and services 95,921 — 95,921 — Health care 33,472 — 33,472 — Technology, media and telecommunications 81,788 — 81,788 — Financial services 145,691 — 140,799 4,892 Mortgage-backed securities 21,483 — 21,483 — Collateralized mortgage obligations Government National Mortgage Association 153,206 — 153,206 — Federal Home Loan Mortgage Corporation 71,685 — 66,862 4,823 Federal National Mortgage Association 45,653 — 45,653 — Asset-backed securities 3,831 — 2,962 869 Total Available-for-Sale Fixed Maturities $ 1,686,503 $ — $ 1,675,919 $ 10,584 EQUITY SECURITIES Common stocks Public utilities $ 3,993 $ 3,993 $ — $ — Energy 9,477 9,477 — — Industrials 14,164 14,164 — — Consumer goods and services 11,385 11,385 — — Health care 2,060 2,060 — — Technology, media and telecommunications 6,405 6,405 — — Financial services 7,535 7,535 — — Total Equity Securities $ 55,019 $ 55,019 $ — $ — Short-Term Investments $ 100 $ 100 $ — $ — Money Market Accounts $ 20,333 $ 20,333 $ — $ — Corporate-Owned Life Insurance $ 11,913 $ — $ 11,913 $ — Total Assets Measured at Fair Value $ 1,773,868 $ 75,452 $ 1,687,832 $ 10,584 The fair value of financial instruments that are not carried at fair value on a recurring basis in the financial statements at December 31, 2023 are summarized below: Description Fair Value Total Level 1 Level 2 Level 3 Net Asset Value Financial assets: Cash and cash equivalents $ 81,713 $ 81,713 $ — $ — $ — Other Long Term Investments $ 99,507 $ — $ 1,249 $ — $ 98,258 Mortgage Loans $ 42,632 $ — $ — $ 42,632 $ — Total Financial assets not accounted for at fair value $ 223,852 $ 81,713 $ 1,249 $ 42,632 $ 98,258 Long Term Debt $ 38,413 $ — $ 38,413 $ — $ — Total Financial liabilities not accounted for at fair value $ 38,413 $ — $ 38,413 $ — $ — 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. The Company receives updated prices from a third-party on a monthly basis. The third party obtains pricing information from independent pricing services and brokers and validates for reasonableness prior to use for reporting purposes on a monthly basis. At least annually, we review the methodologies and assumptions used by our third-party and verify that they are reasonable and representative of the fair value of the underlying securities held in the investment portfolio. In our opinion, the pricing obtained at June 30, 2024 and December 31, 2023 was reasonable. For the three- and six-month periods ended June 30, 2024, 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, funds from debt issuance proceeds, and the change in unrealized gains. Securities categorized as Level 3 include holdings in certain private placement fixed maturity 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. There is inherent uncertainty of the fair value measurement of Level 3 securities due to the use of significant unobservable inputs. A change in significant unobservable inputs may result in a significantly higher or lower fair value measurement as of the reporting date. The following table provides quantitative information about our Level 3 securities at June 30, 2024: Quantitative Information about Level 3 Fair Value Measurements Fair Value at Valuation Technique(s) Unobservable inputs Range of weighted average significant unobservable inputs June 30, 2024 Fixed Maturities asset-backed securities 276 Book Value Probability of default 0% - 100% The following table provides a summary of the changes in fair value of our Level 3 securities for the three-month period ended June 30, 2024: Corporate bonds Asset-backed securities Total Beginning Balance - April 1, 2024 $ — $ 276 $ 276 Realized gains (losses) — — — Net unrealized gains (losses) (1) — — — Amortization — — — Purchases — — — Disposals — — — Transfers in — — — Transfers out — — — Ending Balance - June 30, 2024 $ — $ 276 $ 276 (1) Net unrealized gains (losses) are recorded as a component of comprehensive income in the line item "Change in net unrealized gain (loss) on investments." During the three-month period ended June 30, 2024, there were zero securities transferred out of Level 3 due to the use of observable inputs in pricing the securities. The following table provides a summary of the changes in fair value of our Level 3 securities for the six-month period ended June 30, 2024: Corporate bonds Asset-backed securities Total Beginning Balance - January 1, 2024 $ 4,892 $ 5,692 $ 10,584 Realized gains (losses) — — — Net unrealized gains (losses) (1) — (593) (593) Purchases — — — Disposals — — — Amortization — — — Transfers in — — — Transfers out (4,892) (4,823) (9,715) Ending Balance - June 30, 2024 $ — $ 276 $ 276 (1) Net unrealized gains (losses) are recorded as a component of comprehensive income in the line item "Change in net unrealized gain (loss) on investments." During the six-month period ended June 30, 2024, there were two securities transferred out of Level 3 due to the use of observable inputs in pricing the securities. Commercial Mortgage Loans The following tables present the carrying value of our commercial mortgage loans and additional information at June 30, 2024 and December 31, 2023: Commercial Mortgage Loans June 30, 2024 December 31, 2023 Loan-to-value Carrying Value Carrying Value Less than 65% $ 32,718 $ 36,762 65%-75% 8,565 8,659 Total amortized cost $ 41,283 $ 45,421 Allowance for mortgage loan losses (45) (55) Mortgage loans, net $ 41,238 $ 45,366 Mortgage Loans by Region June 30, 2024 December 31, 2023 Carrying Value Percent of Total Carrying Value Percent of Total East North Central $ 3,245 7.9 % $ 3,245 7.1 % Southern Atlantic 17,119 41.5 17,217 37.9 East South Central 7,393 17.9 7,526 16.6 New England 6,588 15.9 6,588 14.5 Middle Atlantic 2,102 5.1 5,979 13.2 Mountain 1,992 4.8 1,992 4.4 West North Central 2,844 6.9 2,874 6.3 Total mortgage loans at amortized cost $ 41,283 100.0 % $ 45,421 100.0 % Mortgage Loans by Property Type June 30, 2024 December 31, 2023 Carrying Value Percent of Total Carrying Value Percent of Total Commercial Multifamily $ 8,448 20.5 % $ 8,507 18.7 % Office 10,784 26.1 10,950 24.1 Industrial 9,949 24.1 9,985 22.0 Retail 10,000 24.2 10,000 22.0 Mixed use/Other 2,102 5.1 5,979 13.2 Total mortgage loans at amortized cost $ 41,283 100.0 % $ 45,421 100.0 % Amortized Cost Basis by Year of Origination and Credit Quality Indicator 2023 2022 2020 2019 2018 Total Commercial mortgage loans: Risk Rating: 1-2 internal grade $ 8,134 $ 99 5,204 $ 7,802 $ 13,456 $ 34,695 3-4 internal grade — — — — 6,588 6,588 5 internal grade — — — — — — 6 internal grade — — — — — — 7 internal grade — — — — — — Total commercial mortgage loans $ 8,134 $ 99 $ 5,204 $ 7,802 $ 20,044 $ 41,283 Current-period write-offs — — — — — — Current-period recoveries — — — — — — Current-period net write-offs $ — $ — $ — $ — $ — $ — Commercial mortgage loans carrying value excludes accrued interest of $156. As of June 30, 2024, all loan receivables were current, with no delinquencies. The commercial mortgage loans originate with an initial loan-to-value ratio that provides 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 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 June 30, 2024, the Company had an allowance for mortgage loan losses of $45, summarized in the following rollforward: Rollforward of allowance for mortgage loan losses: As of June 30, 2024 Beginning balance, January 1, 2024 $ 55 Current-period provision for expected credit losses — Write-off charged against the allowance, if any — Recoveries of amounts previously written off, if any $ (10) Ending balance of the allowance for mortgage loan losses, June 30, 2024 $ 45 |
Reserves for Losses and Loss Se
Reserves for Losses and Loss Settlement Expenses | 6 Months Ended |
Jun. 30, 2024 | |
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 is primarily concerned with losses caused by injuries to persons and legal liability imposed on the insured for such injury or for damage to property of others. 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 evaluate an appropriate response 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, our actuarial reserving department performs a detailed 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 actuarial team 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 for reasonability. 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 at June 30, 2024 and December 31, 2023 (net of reinsurance amounts): June 30, 2024 December 31, 2023 Gross liability for losses and loss settlement expenses $ 1,638,755 $ 1,497,274 Ceded losses and loss settlement expenses (191,640) (146,875) Net liability for losses and loss settlement expenses $ 1,447,115 $ 1,350,399 Losses and loss settlement expenses incurred Current year $ 378,121 $ 701,664 Prior years 2,850 67,750 Total incurred $ 380,971 $ 769,414 Losses and loss settlement expense payments Current year $ 61,548 $ 191,899 Prior years 216,453 480,800 Total paid $ 278,001 $ 672,699 Net liability for losses and loss settlement expenses $ 1,550,085 $ 1,447,115 Ceded losses and loss settlement expenses 205,654 191,640 Gross liability for losses and loss settlement expenses $ 1,755,739 $ 1,638,755 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. 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. 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. We are not aware of any significant contingent liabilities related to environmental issues. Reserve Development Reserve development in the six-month period ended June 30, 2024 was adverse $2.9 million driven primarily by catastrophe loss development within the Assumed book. In addition, there was proactive strengthening in other liability lines of business due to continued uncertainty in future loss cost trends related to economic and social inflation, offset by favorable development in commercial auto, workers compensation and fire and allied lines. During the first six months of 2023, the Company made additional refinements to its reserve review processes and analyses, including increased segmentation on unique exposures, which resulted in deeper insights and understanding of loss experience and significant movements in reserve development across a range of commercial liability lines of business. The significant driver of the reserve strengthening was an increase in long-tailed other liability reserves primarily due to increased loss cost trends related to economic and social inflation. The commercial automobile line of business also experienced reserve strengthening in reaction to continuing loss trends in post-2020 accident years. These increases were partially offset by favorable development in workers' compensation and fire and allied lines. |
Employee Benefits
Employee Benefits | 6 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFITS | EMPLOYEE BENEFITS Net Periodic Benefit Cost The components of the net periodic benefit cost for our pension benefit plan are as follows: Pension Plan Three Months Ended June 30, 2024 2023 Net periodic benefit cost Service cost $ 822 $ 954 Interest cost 2,478 2,526 Expected return on plan assets (3,635) (3,756) Amortization of prior service credit (724) (820) Amortization of net loss — 52 Net periodic benefit cost $ (1,059) $ (1,044) Pension Plan Six Months Ended June 30, 2024 2023 Net periodic benefit cost Service cost $ 1,643 $ 1,909 Interest cost 4,957 5,053 Expected return on plan assets (7,271) (7,513) Amortization of prior service credit (1,448) (1,640) Amortization of net loss — 104 Net periodic benefit cost $ (2,118) $ (2,087) A portion of the service cost component of net periodic pension benefit costs is capitalized and amortized as part of deferred acquisition costs and is included in the line "Amortization of deferred policy acquisition costs" in the Consolidated Statements of Income and Comprehensive Income. The portion not related to the compensation and other components of net periodic pension benefit costs is included in the line "Other underwriting expenses" in the Consolidated Statements of Income and Comprehensive Income. Employer Contributions |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Non-Qualified Employee Stock Award Plan At June 30, 2024, there were 938,814 authorized shares remaining available for future issuance pursuant to the United Fire Group, Inc. 2021 Stock and Incentive Plan (as amended, the "Stock Plan"). 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 UFG. The Board of Directors, in its discretion, has also delegated authority to management to grant a limited number of restricted stock units in situations where the Company is seeking to recruit or retain individuals. Options granted pursuant to the Stock Plan are granted to buy shares of UFG'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 UFG's common stock on the date of the grant. Restricted stock units fully vest after three years or five years from the date of grant, unless accelerated upon the approval of the Board of Directors, at which time UFG common stock will be issued to the awardee. The activity in the Stock Plan is displayed in the following table: Authorized Shares Available for Future Award Grants Six Months Ended June 30, 2024 From Inception to June 30, 2024 Beginning balance 1,150,834 1,900,000 Additional shares authorized — 2,150,000 Number of awards granted (374,839) (4,348,696) Number of awards forfeited or expired 162,819 1,237,510 Ending balance 938,814 938,814 Number of option awards exercised — 1,537,336 Number of unrestricted stock awards granted — 10,090 Number of restricted stock awards vested 34,881 335,317 Non-Qualified Non-Employee Director 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. At June 30, 2024, the Company had 71,410 authorized shares available for future issuance pursuant to the Director Stock Plan. The Board of Directors has the authority to determine which non-employee directors receive awards, when restricted stock, restricted stock units and options 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, restricted stock and restricted stock units (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, restricted stock or restricted stock unit agreements (subject to limits set forth in the Director Stock 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 Six Months Ended June 30, 2024 From Inception to June 30, 2024 Beginning balance 103,600 300,000 Additional authorization — 150,000 Number of awards granted (32,190) (418,808) Number of awards forfeited or expired — 40,218 Ending balance 71,410 71,410 Number of option awards exercised — 152,336 Number of restricted stock awards vested 31,380 169,336 Stock-Based Compensation Expense For the three-month periods ended June 30, 2024 and 2023, we recognized stock-based compensation expense of $1,555 and $1,100, respectively. As of June 30, 2024, we had $11,158 in stock-based compensation expense that has yet to be recognized through our results of operations. We expect this compensation to be recognized over the remainder of 2024 and subsequent years according to the table below, 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. 2024 $ 3,155 2025 4,707 2026 2,746 2027 550 2028 — Total $ 11,158 |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2024 | |
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, restricted stock awards and restricted stock unit 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 for the three- and six-month periods ended June 30, 2024 and 2023: Three Months Ended June 30, (In Thousands, Except Share Data) 2024 2023 Basic Diluted Basic Diluted Net income (loss) $ (2,735) $ (2,735) $ (56,382) $ (56,382) Weighted-average common shares outstanding 25,314,456 25,314,456 25,249,073 25,249,073 Add dilutive effect of restricted stock unit awards — — — — Add dilutive effect of stock options — — — — Weighted-average common shares outstanding 25,314,456 25,314,456 25,249,073 25,249,073 Earnings (loss) per common share $ (0.11) $ (0.11) $ (2.23) $ (2.23) Awards excluded from diluted earnings per share calculation (1) — 662,378 — 826,259 (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 inherently have been anti-dilutive. Six Months Ended June 30, (In Thousands, Except Share Data) 2024 2023 Basic Diluted Basic Diluted Net income (loss) $ 10,767 $ 10,767 $ (55,688) $ (55,688) Weighted-average common shares outstanding 25,294,698 25,294,698 25,234,834 25,234,834 Add dilutive effect of restricted stock unit awards — 599,982 — — Add dilutive effect of stock options — 801 — — Weighted-average common shares outstanding 25,294,698 25,895,481 25,234,834 25,234,834 Earnings (loss) per common share $ 0.43 $ 0.42 $ (2.21) $ (2.21) Awards excluded from diluted earnings per share calculation (1) — 662,378 — 822,692 (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 inherently have been anti-dilutive. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Long Term Debt December 2020 Private Placement The Company executed a private placement debt transaction on December 15, 2020, by and 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"). UF&C sold an aggregate principal amount of $50,000 of notes due in 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. Interest payments under the long-term debt 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. For the six-month period ended June 30, 2024, interest expense totaled $1,719. 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% May 2024 Private Placement On May 31, 2024, the Company completed the private placement of $70,000 aggregate principal of senior unsecured notes due May 31, 2039 (the "Notes"), to certain qualified institutional buyers pursuant to a Master Note Purchase Agreement, dated as of May 31, 2024, by and among the Company, Ares Management, LLC ("Ares") as the lead investor (including several affiliate investors of Ares), American Republic Insurance Company and Illinois Casualty Company. The Notes were issued in a single series, with a maturity date of May 31, 2039, and bearing interest at an annual rate of 9%. Costs incurred in the issuance of debt of $3,050 are capitalized and amortized over the life of the non-cancellable period of the debt. The capitalization of such debt issuance costs are included as an offset to the "Long Term Debt" in the Consolidated Balance Sheets and the related amortization is included in "Interest expense" in the Consolidated Statements of Income and Comprehensive Income. The interest on the Notes will be payable quarterly in arrears beginning on August 31, 2024. For the six-month period ended June 30, 2024, interest expense totaled $540. Credit Facilities In December 2023, UF&C became a member of the Federal Home Loan Bank of Des Moines ("FHLB Des Moines"). As part of the FHLB Des Moines application process and in connection with its membership in FHLB Des Moines, UF&C entered into FHLB Des Moines' standard Advances, Pledge and Security Agreement (the "Advances Agreement"). The Advances Agreement governs the terms and conditions under which UF&C may borrow and FHLB Des Moines may make loans or advances from time to time. The Advances Agreement requires UF&C to pledge certain collateral, including the capital stock in FHLB Des Moines owned by UF&C and such other assets (including mortgage-related securities, loans, and stock in the Company) as agreed by UF&C and FHLB Des Moines in connection with any such loans or advances. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2024 | |
AOCI Attributable to Parent [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 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 three-month period ended June 30, 2024: Liability for Foreign Net unrealized underfunded currency gain (loss) employee translation on investments benefit costs (1) adjustment Total Balance as of March 31, 2024 (73,707) 15,438 $ (23) $ (58,292) Change in accumulated other comprehensive income (loss) before reclassifications (5,257) (572) 35 (5,794) Reclassification adjustments from accumulated other comprehensive income (loss) 970 — — 970 Balance as of June 30, 2024 $ (77,994) $ 14,866 $ 12 $ (63,116) (1) 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. The following table shows the changes in the components of our accumulated other comprehensive income (loss), net of tax, for the six-month period ended June 30, 2024: Liability for Foreign Net unrealized underfunded currency gain (loss) employee translation on investments benefit costs (1) adjustment Total Balance as of January 1, 2024 (66,967) 16,010 — $ (50,957) Change in accumulated other comprehensive income (loss) before reclassifications (14,023) (1,144) 12 (15,155) Reclassification adjustments from accumulated other comprehensive income (loss) 2,996 — — 2,996 Balance as of June 30, 2024 $ (77,994) $ 14,866 $ 12 $ (63,116) (1) 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. Income tax effects are released from accumulated other comprehensive income (loss) for unrealized gains or losses when the gains or losses are realized. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
LEASES | LEASES The Company has operating leases consisting of office space, vehicle leases, computer equipment, and office equipment. 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 June 30, 2024, we have leases with remaining terms of one year to seven years, some of which may include no options for renewal and others with options to extend the lease terms from six months to five years. The Company has six lease agreements under which the Company serves as the lessor. The properties are used for office space and parking. The terms of the leases vary depending on the property and range from two years to nine years, which may include options for renewal or to extend lease terms. The Company has elected to categorize these leases into four categories based on length of lease terms and applies an incremental borrowing rate. The components of our operating leases were as follows for the three- and six-month periods ended June 30, 2024 and 2023: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Components of lease expense: Operating lease expense $ 2,354 $ 2,210 $ 4,754 $ 4,397 Less lessor income 145 133 291 266 Less sublease income 133 126 266 160 Net lease expense 2,076 1,951 4,197 3,971 Cash flows information related to leases: Operating cash outflow from operating leases 2,080 1,991 4,184 4,043 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||||
Net income (loss) | $ (2,735) | $ 13,502 | $ (56,382) | $ 694 | $ 10,767 | $ (55,688) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The financial information for interim periods presented in these Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") and with the instructions to Form 10-Q and Regulation S-X promulgated by the SEC. Certain financial information that is included in our Annual Report on Form 10-K for the year ended December 31, 2023, including certain financial statement footnote disclosures, is not required by the rules and regulations of the SEC for interim financial reporting and has been condensed or omitted. |
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; loss settlement expenses; and pension benefit obligations. |
Segment Information | UFG has one reporting segment, which is consistent with and reflects the manner by which our Chief Operating Decision Maker views and manages the business. 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. We will continue to evaluate our operations on the basis of both statutory accounting principles prescribed or permitted by our states of domicile and GAAP. |
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) | Deferred policy acquisition costs include commissions, premium taxes and variable underwriting and policy issue expenses, which are incremental direct costs of successful contract acquisitions. Property and casualty insurance policy acquisition costs deferred are amortized ratably as the related 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. |
Other Intangible Assets | Our other intangible assets, which consist primarily of agency relationships, trade names, state insurance licenses, and software, are being amortized using the straight-line method over periods ranging from two years to 15 years, with the exception of state insurance licenses, which are indefinite-lived and not amortized. |
Long Term Debt | The Company issues debt through private placement transactions in the form of senior unsecured notes and surplus 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. Costs incurred in the issuance of debt are capitalized and amortized over the life of the non-cancellable period of the debt. The capitalization of such debt issuance costs are included as an offset to the long-term debt liability and the related amortization is included in interest expense. |
Income Taxes | 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. We reported a consolidated federal income tax expense of $1,747 for the six-month period ended June 30, 2024 compared to an income tax benefit of $16,540 during the same period of 2023. Our effective tax rate for 2024 and 2023 is different than the federal statutory rate of 21 percent, due principally to the net effect of tax-exempt municipal bond interest income. The Company performs a quarterly review of its tax positions and makes a determination of 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 positions will be sustained, the Company will calculate any unrecognized tax benefits and, if necessary, calculate and accrue any related interest and penalties. We did not recognize any liability for unrecognized tax benefits at June 30, 2024 or December 31, 2023. 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. Deferred tax assets are reduced by a valuation allowance when management believes it is more likely than not that some, or all, of the deferred taxes will not be realized. After considering all positive and negative evidence of taxable income in the carryback and carryforward periods and our tax planning strategy of holding debt securities with unrealized losses to maturity or recovery, we believe it is more likely than not that all the deferred assets will be realized. As a result, we have no valuation allowance at June 30, 2024 or December 31, 2023. For each of the six-month periods ended June 30, 2024 and 2023, we made payments for income taxes totaling $9,612 and $1,324, respectively. We did not receive a federal tax refund for the six-month periods ended June 30, 2024 and 2023. |
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. |
Credit Losses | The Company recognizes credit losses for our 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 current economic conditions, management's expectations of future economic conditions and performance indicators, such as market value versus amortized cost, investment spreads widening or contracting, rating actions, payment and default history. For more information on credit losses and the allowance for credit losses for our 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 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." 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. |
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. In July 2024, the Company identified rating errors related to umbrella and general liability products that resulted in an overcharge to certain policyholders. Corrective actions are currently underway, and we are voluntarily notifying and cooperating with state insurance regulators to determine the appropriate extent of refunds to impacted policyholders. We may receive requests for information in the future from regulators in connection with this matter. |
Recently Issued Accounting Standards | Adopted Pronouncements We have not adopted any Accounting Standard Update (“ASU”) in the current period nor year-to-date. Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this update improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expense categories that are regularly provided to the Chief Operating Decision Maker ("CODM") and included in each reported measure of a segment’s profit or loss. In addition, the amendments enhance interim disclosure requirements that are currently required annually, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, and contain other disclosure requirements. Additionally, the amendments require that entities with a single reportable segment must now provide all the disclosures previously required under Topic 280. The amendments in this update are incremental to the current requirements of Topic 280 and do not change how a public entity identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments. The enhanced segment disclosure requirements apply retrospectively to all prior periods presented in the financial statements. The significant segment expense and other segment item amounts disclosed in prior periods shall be based on the significant segment expense categories identified and disclosed in the period of adoption. The amendments in this update are effective for all public entities for fiscal years beginning after December 15, 2023, and interim periods beginning after December 15, 2024. Early adoption is permitted, and the updates must be applied retrospectively to all periods presented in the financial statements. We do not expect to early adopt this standard and are in the process of assessing its impact on our disclosures upon adoption. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this update enhance the transparency of the income tax disclosures by expanding on the disclosures required annually. The amendments require entities to disclose in their rate reconciliation table additional categories of information about federal, state, and foreign income taxes, in addition to providing details about the reconciling items in some categories if above a quantitative threshold. Additionally, the amendments require annual disclosure of income taxes paid (net of refunds received) disaggregated by jurisdiction based on a quantitative threshold. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The amendments should be applied on a prospective basis, and retrospective application is permitted. We do not expect to early adopt this standard and are in the process of assessing its impact on our disclosures upon adoption. |
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 for identical financial instruments in active markets that we have the ability to access at the measurement date. • Level 2 : Valuations are based on quoted prices for similar financial instruments in active markets, 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' experience and who have demonstrated knowledge of the subject security. In order to determine the proper classification in the fair value hierarchy, 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 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 Supplemental Executive Retirement and Deferral Plan (the "Executive Retirement Plan"). 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 Plan. The COLI policies invest in mutual funds, which are priced daily by independent sources. As of June 30, 2024, the cash surrender value of the COLI policies was $12,450 w hich is equal to the fair value measured using Level 2 inputs, based on the underlying assets of the COLI policie s, and is included in other assets in the Consolidated Balance Sheets. Our long-term debt is not carried in the Consolidated Balance Sheet at fair value. The fair value of our long-term debt is estimated using Level 2 inputs based on quoted prices for similar financial instruments. The fair value is estimated using a discounted cash flow analysis. 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. The Company receives updated prices from a third-party on a monthly basis. The third party obtains pricing information from independent pricing services and brokers and validates for reasonableness prior to use for reporting purposes on a monthly basis. At least annually, we review the methodologies and assumptions used by our third-party and verify that they are reasonable and representative of the fair value of the underlying securities held in the investment portfolio. In our opinion, the pricing obtained at June 30, 2024 and December 31, 2023 was reasonable. For the three- and six-month periods ended June 30, 2024, 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, funds from debt issuance proceeds, and the change in unrealized gains. Securities categorized as Level 3 include holdings in certain private placement fixed maturity 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. There is inherent uncertainty of the fair value measurement of Level 3 securities due to the use of significant unobservable inputs. A change in significant unobservable inputs may result in a significantly higher or lower fair value measurement as of the reporting date. |
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, restricted stock awards and restricted stock unit awards. |
Nature of Operations and Basi_3
Nature of Operations and Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Components of Deferred Acquisition Costs | The following table is a summary of the components of DAC, including the related amortization recognized for the six-month period ended June 30, 2024. Total Recorded asset at beginning of period $ 126,532 Underwriting costs deferred 150,591 Amortization of deferred policy acquisition costs (133,079) Recorded asset at June 30, 2024 $ 144,044 |
Summary of Rollforward of Credit Loss Allowance for Reinsurance Receivable | Rollforward of credit loss allowance for reinsurance receivables: As of June 30, 2024 Beginning balance, January 1, 2024 $ 97 Current-period provision for expected credit losses 5 Write-off charged against the allowance, if any — Recoveries of amounts previously written off, if any — Ending balance of the allowance for reinsurance receivables, June 30, 2024 $ 102 |
Summary of Investments (Tables)
Summary of Investments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Fair Value of Investments | A reconciliation of the amortized cost to fair value of investments in our available-for-sale fixed maturity portfolio, presented on a consolidated basis, as of June 30, 2024 and December 31, 2023, is provided below: June 30, 2024 Type of Investment Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Allowance for Credit Losses Fair Value AVAILABLE-FOR-SALE Fixed maturities: Bonds U.S. Treasury $ 51,211 $ 56 $ 618 $ — $ 50,649 U.S. government agency 97,438 57 9,154 — 88,341 States, municipalities and political subdivisions General obligations: Midwest 38,918 — 469 — 38,449 Northeast 7,121 — 122 — 6,999 South 36,875 — 768 — 36,107 West 58,789 35 939 — 57,885 Special revenue: Midwest 64,440 2 729 — 63,713 Northeast 50,012 23 767 — 49,268 South 121,547 21 2,932 — 118,636 West 86,246 8 1,485 — 84,769 Foreign bonds 16,210 11 1,083 — 15,138 Public utilities 141,202 286 10,720 — 130,768 Corporate bonds Energy 41,879 3 2,245 — 39,637 Industrials 58,647 86 5,011 — 53,722 Consumer goods and services 101,945 52 8,675 — 93,322 Health care 31,795 — 4,939 — 26,856 Technology, media and telecommunications 82,279 — 7,305 — 74,974 Financial services 233,099 852 6,379 — 227,572 Mortgage-backed securities 219,159 500 3,380 — 216,279 Collateralized mortgage obligations Government National Mortgage Association 151,577 161 14,138 — 137,600 Federal Home Loan Mortgage Corporation 79,811 — 14,502 — 65,309 Federal National Mortgage Association 46,395 23 5,201 — 41,217 Asset-backed securities 78,987 123 187 — 78,923 Total Available-for-Sale Fixed Maturities $ 1,895,582 $ 2,299 $ 101,748 $ — $ 1,796,133 December 31, 2023 Type of Investment Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Allowance for Credit Losses Fair Value AVAILABLE-FOR-SALE Fixed maturities: Bonds U.S. Treasury $ 51,211 $ 325 $ 675 $ — $ 50,861 U.S. government agency 102,540 255 8,302 — 94,493 States, municipalities and political subdivisions General obligations: Midwest 52,712 132 137 — 52,707 Northeast 11,422 1 43 — 11,380 South 54,560 47 400 — 54,207 West 77,874 23 471 — 77,426 Special revenue: Midwest 101,037 302 358 — 100,981 Northeast 52,708 79 560 — 52,227 South 166,119 302 2,155 — 164,266 West 102,254 147 836 — 101,565 Foreign bonds 21,255 — 2,083 — 19,172 Public utilities 149,734 787 10,054 — 140,467 Corporate bonds Energy 45,351 249 2,127 — 43,473 Industrials 74,760 727 4,939 — 70,548 Consumer goods and services 103,315 271 7,665 — 95,921 Health care 37,872 99 4,499 — 33,472 Technology, media and telecommunications 87,002 451 5,665 — 81,788 Financial services 152,329 743 7,381 1 145,690 Mortgage-backed securities 23,800 11 2,328 — 21,483 Collateralized mortgage obligations Government National Mortgage Association 164,666 1,282 12,742 — 153,206 Federal Home Loan Mortgage Corporation 84,842 20 13,177 — 71,685 Federal National Mortgage Association 50,284 33 4,664 — 45,653 Asset-backed securities 3,394 524 87 — 3,831 Total Available-for-Sale Fixed Maturities $ 1,771,041 $ 6,810 $ 91,348 $ 1 $ 1,686,502 |
Summary of Maturities | Maturities Available-For-Sale June 30, 2024 Amortized Cost Fair Value Due in one year or less $ 119,744 $ 118,585 Due after one year through five years 418,408 406,880 Due after five years through 10 years 415,686 385,942 Due after 10 years 365,815 345,398 Asset-backed securities 78,987 78,923 Mortgage-backed securities 219,159 216,279 Collateralized mortgage obligations 277,783 244,126 $ 1,895,582 $ 1,796,133 |
Summary of Net Investment Gains and Losses | A summary of the components of net investment gains (losses) is as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net investment gains (losses): Fixed maturities: Available-for-sale $ (1,382) $ (248) $ (4,044) $ (426) Allowance for credit losses 1 177 1 1 Equity securities Net gains (losses) recognized on equity securities sold during the period — 1,735 1,362 2,235 Unrealized gains (losses) recognized during the period on equity securities held at reporting date — (459) — (2,164) Net gains (losses) recognized during the reporting period on equity securities — 1,276 1,362 71 Mortgage loans allowance for credit losses — (6) 10 (6) Other long-term investments 152 (122) 241 (308) Real estate — 47 — 47 Total net investment gains (losses) $ (1,229) $ 1,124 $ (2,431) $ (621) |
Summary of Proceeds and Gross Realized Gains (Losses) | The proceeds and gross realized gains (losses) on the sale of available-for-sale fixed maturity securities are as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Proceeds from sales $ 145,621 $ 33,941 $ 233,999 $ 43,809 Gross realized gains 133 110 1,498 121 Gross realized losses 1,515 358 5,542 547 |
Summary of Unrealized Gain and Loss | A summary of the changes in net unrealized investment gain (loss) during the reporting period is as follows: Six Months Ended June 30, 2024 2023 Change in net unrealized investment gain (loss) Available-for-sale fixed maturities $ (13,958) $ (919) Income tax effect 2,931 193 Total change in net unrealized investment gain (loss), net of tax $ (11,027) $ (726) |
Summary 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 June 30, 2024. Rollforward of allowance for credit losses for available-for-sale fixed maturity securities: As of June 30, 2024 Beginning balance, January 1, 2024 $ 1 Additions to the allowance for credit losses for which credit losses were not previously recorded Reductions for securities sold during the period (realized) Write-offs charged against the allowance Recoveries of amounts previously written off (1) Ending balance, June 30, 2024 $ — |
Summary of Fixed Maturities Unrealized Loss | The following tables summarize our fixed maturity securities that were in an unrealized loss position reported on a consolidated basis at June 30, 2024 and December 31, 2023. 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. June 30, 2024 Less than 12 months 12 months or longer Total Type of Investment Number Fair Gross Unrealized Number Fair Gross Unrealized Loss Fair Gross Unrealized Loss AVAILABLE-FOR-SALE Fixed maturities: Bonds U.S. Treasury 2 $ 24,891 $ 47 8 $ 16,856 $ 571 $ 41,747 $ 618 U.S. government agency 4 13,890 91 23 70,493 9,063 84,383 9,154 States, municipalities and political subdivisions General obligations Midwest 7 18,941 123 7 18,388 346 37,329 469 Northeast 9 3,566 64 1 3,433 58 6,999 122 South 4 8,914 59 14 26,042 709 34,956 768 West 6 9,558 46 12 36,434 893 45,992 939 Special revenue Midwest 14 23,903 238 18 33,974 491 57,877 729 Northeast 3 6,844 28 13 32,544 739 39,388 767 South 13 24,560 213 42 89,295 2,719 113,855 2,932 West 14 17,608 207 30 63,881 1,278 81,489 1,485 Foreign bonds — — — 5 11,190 1,083 11,190 1,083 Public utilities 5 12,656 148 48 107,286 10,572 119,942 10,720 Corporate bonds Energy 3 7,613 52 13 31,759 2,193 39,372 2,245 Industrials 1 2,931 63 19 40,660 4,948 43,591 5,011 Consumer goods and services 6 11,860 155 29 76,528 8,520 88,388 8,675 Health care 3 5,412 95 9 21,444 4,844 26,856 4,939 Technology, media and telecommunications 4 13,285 344 27 61,689 6,961 74,974 7,305 Financial services 13 69,749 557 38 100,662 5,822 170,411 6,379 Mortgage-backed securities 18 128,323 777 50 17,020 2,603 145,343 3,380 Collateralized mortgage obligations Government National Mortgage Association 11 39,696 304 41 69,975 13,834 109,671 14,138 Federal Home Loan Mortgage Corporation 1 2,528 12 32 62,781 14,490 65,309 14,502 Federal National Mortgage Association 3 5,464 74 20 30,266 5,127 35,730 5,201 Asset-backed securities 6 22,483 115 1 2,612 72 25,095 187 Total Available-for-Sale Fixed Maturities 150 $ 474,675 $ 3,812 500 $ 1,025,212 $ 97,936 $ 1,499,887 $ 101,748 December 31, 2023 Less than 12 months 12 months or longer Total Type of Investment Number Fair Gross Unrealized Loss Number Fair Gross Unrealized Loss Fair Gross Unrealized Loss AVAILABLE-FOR-SALE Fixed maturities: Bonds U.S. Treasury 2 $ 4,138 $ 46 6 $ 12,717 $ 629 $ 16,855 $ 675 U.S. government agency 3 10,986 14 23 71,375 8,288 82,361 8,302 States, municipalities and political subdivisions General obligations Midwest 11 19,534 61 3 10,737 76 30,271 137 Northeast 3 5,371 8 1 3,469 35 8,840 43 South 12 21,753 91 9 16,610 309 38,363 400 West 17 38,204 140 7 20,064 331 58,268 471 Special revenue Midwest 17 29,535 113 11 23,375 245 52,910 358 Northeast 6 15,131 67 8 24,271 493 39,402 560 South 21 45,639 232 32 66,925 1,923 112,564 2,155 West 20 32,789 248 16 38,495 588 71,284 836 Foreign bonds — — — 9 19,172 2,083 19,172 2,083 Public utilities 4 7,151 74 48 111,793 9,980 118,944 10,054 Corporate bonds Energy — — — 15 34,331 2,127 34,331 2,127 Industrials 1 1,210 19 21 47,462 4,920 48,672 4,939 Consumer goods and services 4 14,724 98 28 68,837 7,567 83,561 7,665 Health care 1 3,000 2 11 26,544 4,497 29,544 4,499 Technology, media and telecommunications 1 3,969 35 27 62,988 5,630 66,957 5,665 Financial services 5 14,327 223 44 112,517 7,158 126,844 7,381 Mortgage-backed securities 3 2,783 33 48 15,758 2,295 18,541 2,328 Collateralized mortgage obligations Government National Mortgage Association 2 7,055 27 40 72,565 12,715 79,620 12,742 Federal Home Loan Mortgage Corporation 2 2,589 22 31 66,361 13,155 68,950 13,177 Federal National Mortgage Association 2 5,454 55 20 31,460 4,609 36,914 4,664 Asset-backed securities — — — 1 2,962 87 2,962 87 Total Available-for-Sale Fixed Maturities 137 $ 285,342 $ 1,608 459 $ 960,788 $ 89,740 $ 1,246,130 $ 91,348 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Summary of Carrying Value and Estimated Fair Value of Financial Instruments | A summary of the carrying value and estimated fair value of our financial instruments at June 30, 2024 and December 31, 2023 is as follows: June 30, 2024 December 31, 2023 Fair Value Carrying Value Fair Value Carrying Value Assets Investments Fixed maturities: Available-for-sale securities $ 1,796,133 $ 1,796,133 $ 1,686,503 $ 1,686,502 Equity securities — — 55,019 55,019 Mortgage loans 38,737 41,238 42,632 45,366 Other long-term investments 98,405 98,405 99,507 99,507 Short-term investments 100 100 100 100 Cash and cash equivalents 153,430 153,430 102,046 102,046 Corporate-owned life insurance 12,450 12,450 11,913 11,913 Liabilities Long Term Debt 107,959 116,965 38,413 50,000 |
Summary of 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 table includes financial instruments at June 30, 2024 and December 31, 2023: June 30, 2024 Fair Value Measurements Description Total Level 1 Level 2 Level 3 AVAILABLE-FOR-SALE Fixed maturities: Bonds U.S. Treasury $ 50,649 $ — $ 50,649 $ — U.S. government agency 88,341 — 88,341 — States, municipalities and political subdivisions General obligations Midwest 38,449 — 38,449 — Northeast 6,999 — 6,999 — South 36,107 — 36,107 — West 57,885 — 57,885 — Special revenue Midwest 63,713 — 63,713 — Northeast 49,268 — 49,268 — South 118,636 — 118,636 — West 84,769 — 84,769 — Foreign bonds 15,138 — 15,138 — Public utilities 130,768 — 130,768 — Corporate bonds Energy 39,637 — 39,637 — Industrials 53,722 — 53,722 — Consumer goods and services 93,322 — 93,322 — Health care 26,856 — 26,856 — Technology, media and telecommunications 74,974 — 74,974 — Financial services 227,572 — 227,572 — Mortgage-backed securities 216,279 — 216,279 — Collateralized mortgage obligations Government National Mortgage Association 137,600 — 137,600 — Federal Home Loan Mortgage Corporation 65,309 — 65,309 — Federal National Mortgage Association 41,217 — 41,217 — Asset-backed securities 78,923 — 78,647 276 Total Available-for-Sale Fixed Maturities $ 1,796,133 $ — $ 1,795,857 $ 276 Short-Term Investments $ 100 $ 100 $ — $ — Money Market Accounts $ 51,654 $ 51,654 $ — $ — Corporate-Owned Life Insurance $ 12,450 $ — $ 12,450 $ — Total Assets Measured at Fair Value $ 1,860,337 $ 51,754 $ 1,808,307 $ 276 December 31, 2023 Fair Value Measurements Description Total Level 1 Level 2 Level 3 AVAILABLE-FOR-SALE Fixed maturities: Bonds U.S. Treasury $ 50,861 $ — $ 50,861 $ — U.S. government agency 94,493 — 94,493 — States, municipalities and political subdivisions General obligations Midwest 52,707 — 52,707 — Northeast 11,380 — 11,380 — South 54,207 — 54,207 — West 77,426 — 77,426 — Special revenue Midwest 100,981 — 100,981 — Northeast 52,227 — 52,227 — South 164,266 — 164,266 — West 101,565 — 101,565 — Foreign bonds 19,172 — 19,172 — Public utilities 140,467 — 140,467 — Corporate bonds Energy 43,473 — 43,473 — Industrials 70,548 — 70,548 — Consumer goods and services 95,921 — 95,921 — Health care 33,472 — 33,472 — Technology, media and telecommunications 81,788 — 81,788 — Financial services 145,691 — 140,799 4,892 Mortgage-backed securities 21,483 — 21,483 — Collateralized mortgage obligations Government National Mortgage Association 153,206 — 153,206 — Federal Home Loan Mortgage Corporation 71,685 — 66,862 4,823 Federal National Mortgage Association 45,653 — 45,653 — Asset-backed securities 3,831 — 2,962 869 Total Available-for-Sale Fixed Maturities $ 1,686,503 $ — $ 1,675,919 $ 10,584 EQUITY SECURITIES Common stocks Public utilities $ 3,993 $ 3,993 $ — $ — Energy 9,477 9,477 — — Industrials 14,164 14,164 — — Consumer goods and services 11,385 11,385 — — Health care 2,060 2,060 — — Technology, media and telecommunications 6,405 6,405 — — Financial services 7,535 7,535 — — Total Equity Securities $ 55,019 $ 55,019 $ — $ — Short-Term Investments $ 100 $ 100 $ — $ — Money Market Accounts $ 20,333 $ 20,333 $ — $ — Corporate-Owned Life Insurance $ 11,913 $ — $ 11,913 $ — Total Assets Measured at Fair Value $ 1,773,868 $ 75,452 $ 1,687,832 $ 10,584 |
Summary of Financial Instruments Not Carried at Fair Value on Recurring Basis | The fair value of financial instruments that are not carried at fair value on a recurring basis in the financial statements at June 30, 2024 are summarized below: Description Fair Value Total Level 1 Level 2 Level 3 Net Asset Value Financial assets: Cash and cash equivalents $ 101,776 $ 101,776 $ — $ — $ — Other Long Term Investments $ 98,405 $ — $ 1,277 $ — $ 97,128 Mortgage Loans $ 38,737 $ — $ — $ 38,737 $ — Total Financial assets not accounted for at fair value $ 238,918 $ 101,776 $ 1,277 $ 38,737 $ 97,128 Long Term Debt $ 107,959 $ 107,959 Total Financial liabilities not accounted for at fair value $ 107,959 $ — $ 107,959 $ — $ — The fair value of financial instruments that are not carried at fair value on a recurring basis in the financial statements at December 31, 2023 are summarized below: Description Fair Value Total Level 1 Level 2 Level 3 Net Asset Value Financial assets: Cash and cash equivalents $ 81,713 $ 81,713 $ — $ — $ — Other Long Term Investments $ 99,507 $ — $ 1,249 $ — $ 98,258 Mortgage Loans $ 42,632 $ — $ — $ 42,632 $ — Total Financial assets not accounted for at fair value $ 223,852 $ 81,713 $ 1,249 $ 42,632 $ 98,258 Long Term Debt $ 38,413 $ — $ 38,413 $ — $ — Total Financial liabilities not accounted for at fair value $ 38,413 $ — $ 38,413 $ — $ — |
Summary of Quantitative Information About Level 3 Fair Value Measurements | The following table provides quantitative information about our Level 3 securities at June 30, 2024: Quantitative Information about Level 3 Fair Value Measurements Fair Value at Valuation Technique(s) Unobservable inputs Range of weighted average significant unobservable inputs June 30, 2024 Fixed Maturities asset-backed securities 276 Book Value Probability of default 0% - 100% |
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 the three-month period ended June 30, 2024: Corporate bonds Asset-backed securities Total Beginning Balance - April 1, 2024 $ — $ 276 $ 276 Realized gains (losses) — — — Net unrealized gains (losses) (1) — — — Amortization — — — Purchases — — — Disposals — — — Transfers in — — — Transfers out — — — Ending Balance - June 30, 2024 $ — $ 276 $ 276 (1) Net unrealized gains (losses) are recorded as a component of comprehensive income in the line item "Change in net unrealized gain (loss) on investments." The following table provides a summary of the changes in fair value of our Level 3 securities for the six-month period ended June 30, 2024: Corporate bonds Asset-backed securities Total Beginning Balance - January 1, 2024 $ 4,892 $ 5,692 $ 10,584 Realized gains (losses) — — — Net unrealized gains (losses) (1) — (593) (593) Purchases — — — Disposals — — — Amortization — — — Transfers in — — — Transfers out (4,892) (4,823) (9,715) Ending Balance - June 30, 2024 $ — $ 276 $ 276 (1) Net unrealized gains (losses) are recorded as a component of comprehensive income in the line item "Change in net unrealized gain (loss) on investments." |
Summary of Carrying Value of Commercial Mortgage Loans and Additional Information | The following tables present the carrying value of our commercial mortgage loans and additional information at June 30, 2024 and December 31, 2023: Commercial Mortgage Loans June 30, 2024 December 31, 2023 Loan-to-value Carrying Value Carrying Value Less than 65% $ 32,718 $ 36,762 65%-75% 8,565 8,659 Total amortized cost $ 41,283 $ 45,421 Allowance for mortgage loan losses (45) (55) Mortgage loans, net $ 41,238 $ 45,366 Mortgage Loans by Region June 30, 2024 December 31, 2023 Carrying Value Percent of Total Carrying Value Percent of Total East North Central $ 3,245 7.9 % $ 3,245 7.1 % Southern Atlantic 17,119 41.5 17,217 37.9 East South Central 7,393 17.9 7,526 16.6 New England 6,588 15.9 6,588 14.5 Middle Atlantic 2,102 5.1 5,979 13.2 Mountain 1,992 4.8 1,992 4.4 West North Central 2,844 6.9 2,874 6.3 Total mortgage loans at amortized cost $ 41,283 100.0 % $ 45,421 100.0 % Mortgage Loans by Property Type June 30, 2024 December 31, 2023 Carrying Value Percent of Total Carrying Value Percent of Total Commercial Multifamily $ 8,448 20.5 % $ 8,507 18.7 % Office 10,784 26.1 10,950 24.1 Industrial 9,949 24.1 9,985 22.0 Retail 10,000 24.2 10,000 22.0 Mixed use/Other 2,102 5.1 5,979 13.2 Total mortgage loans at amortized cost $ 41,283 100.0 % $ 45,421 100.0 % |
Summary of Amortized Cost Basis by Year of Origination and Credit Quality Indicator | Amortized Cost Basis by Year of Origination and Credit Quality Indicator 2023 2022 2020 2019 2018 Total Commercial mortgage loans: Risk Rating: 1-2 internal grade $ 8,134 $ 99 5,204 $ 7,802 $ 13,456 $ 34,695 3-4 internal grade — — — — 6,588 6,588 5 internal grade — — — — — — 6 internal grade — — — — — — 7 internal grade — — — — — — Total commercial mortgage loans $ 8,134 $ 99 $ 5,204 $ 7,802 $ 20,044 $ 41,283 Current-period write-offs — — — — — — Current-period recoveries — — — — — — Current-period net write-offs $ — $ — $ — $ — $ — $ — |
Summary of Rollforward of Allowance for Mortgage Loan Losses | As of June 30, 2024, the Company had an allowance for mortgage loan losses of $45, summarized in the following rollforward: Rollforward of allowance for mortgage loan losses: As of June 30, 2024 Beginning balance, January 1, 2024 $ 55 Current-period provision for expected credit losses — Write-off charged against the allowance, if any — Recoveries of amounts previously written off, if any $ (10) Ending balance of the allowance for mortgage loan losses, June 30, 2024 $ 45 |
Reserves for Losses and Loss _2
Reserves for Losses and Loss Settlement Expenses (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Insurance Loss Reserves [Abstract] | |
Summary of Changes in Property and Casualty Losses and Loss Settlement Expense Reserves | The following table provides an analysis of changes in our property and casualty losses and loss settlement expense reserves at June 30, 2024 and December 31, 2023 (net of reinsurance amounts): June 30, 2024 December 31, 2023 Gross liability for losses and loss settlement expenses $ 1,638,755 $ 1,497,274 Ceded losses and loss settlement expenses (191,640) (146,875) Net liability for losses and loss settlement expenses $ 1,447,115 $ 1,350,399 Losses and loss settlement expenses incurred Current year $ 378,121 $ 701,664 Prior years 2,850 67,750 Total incurred $ 380,971 $ 769,414 Losses and loss settlement expense payments Current year $ 61,548 $ 191,899 Prior years 216,453 480,800 Total paid $ 278,001 $ 672,699 Net liability for losses and loss settlement expenses $ 1,550,085 $ 1,447,115 Ceded losses and loss settlement expenses 205,654 191,640 Gross liability for losses and loss settlement expenses $ 1,755,739 $ 1,638,755 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Summary of Components of Net Periodic Benefit Cost | The components of the net periodic benefit cost for our pension benefit plan are as follows: Pension Plan Three Months Ended June 30, 2024 2023 Net periodic benefit cost Service cost $ 822 $ 954 Interest cost 2,478 2,526 Expected return on plan assets (3,635) (3,756) Amortization of prior service credit (724) (820) Amortization of net loss — 52 Net periodic benefit cost $ (1,059) $ (1,044) Pension Plan Six Months Ended June 30, 2024 2023 Net periodic benefit cost Service cost $ 1,643 $ 1,909 Interest cost 4,957 5,053 Expected return on plan assets (7,271) (7,513) Amortization of prior service credit (1,448) (1,640) Amortization of net loss — 104 Net periodic benefit cost $ (2,118) $ (2,087) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Activity in Stock Award Plans | The activity in the Stock Plan is displayed in the following table: Authorized Shares Available for Future Award Grants Six Months Ended June 30, 2024 From Inception to June 30, 2024 Beginning balance 1,150,834 1,900,000 Additional shares authorized — 2,150,000 Number of awards granted (374,839) (4,348,696) Number of awards forfeited or expired 162,819 1,237,510 Ending balance 938,814 938,814 Number of option awards exercised — 1,537,336 Number of unrestricted stock awards granted — 10,090 Number of restricted stock awards vested 34,881 335,317 The activity in the Director Stock Plan is displayed in the following table: Authorized Shares Available for Future Award Grants Six Months Ended June 30, 2024 From Inception to June 30, 2024 Beginning balance 103,600 300,000 Additional authorization — 150,000 Number of awards granted (32,190) (418,808) Number of awards forfeited or expired — 40,218 Ending balance 71,410 71,410 Number of option awards exercised — 152,336 Number of restricted stock awards vested 31,380 169,336 |
Summary of Remaining Stock-Based Compensation Expense | We expect this compensation to be recognized over the remainder of 2024 and subsequent years according to the table below, 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. 2024 $ 3,155 2025 4,707 2026 2,746 2027 550 2028 — Total $ 11,158 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Summary of Components of Basic and Diluted Earnings Per Share | The components of basic and diluted earnings per share were as follows for the three- and six-month periods ended June 30, 2024 and 2023: Three Months Ended June 30, (In Thousands, Except Share Data) 2024 2023 Basic Diluted Basic Diluted Net income (loss) $ (2,735) $ (2,735) $ (56,382) $ (56,382) Weighted-average common shares outstanding 25,314,456 25,314,456 25,249,073 25,249,073 Add dilutive effect of restricted stock unit awards — — — — Add dilutive effect of stock options — — — — Weighted-average common shares outstanding 25,314,456 25,314,456 25,249,073 25,249,073 Earnings (loss) per common share $ (0.11) $ (0.11) $ (2.23) $ (2.23) Awards excluded from diluted earnings per share calculation (1) — 662,378 — 826,259 (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 inherently have been anti-dilutive. Six Months Ended June 30, (In Thousands, Except Share Data) 2024 2023 Basic Diluted Basic Diluted Net income (loss) $ 10,767 $ 10,767 $ (55,688) $ (55,688) Weighted-average common shares outstanding 25,294,698 25,294,698 25,234,834 25,234,834 Add dilutive effect of restricted stock unit awards — 599,982 — — Add dilutive effect of stock options — 801 — — Weighted-average common shares outstanding 25,294,698 25,895,481 25,234,834 25,234,834 Earnings (loss) per common share $ 0.43 $ 0.42 $ (2.21) $ (2.21) Awards excluded from diluted earnings per share calculation (1) — 662,378 — 822,692 (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 inherently have been anti-dilutive. |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Summary of Interest Payments | A.M. Best Co. Financial Strength Rating Applicable Interest Rate A+ 5.875% A 6.375% A- 6.875% B++ (or lower) 7.375% |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
AOCI Attributable to Parent [Abstract] | |
Summary 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 three-month period ended June 30, 2024: Liability for Foreign Net unrealized underfunded currency gain (loss) employee translation on investments benefit costs (1) adjustment Total Balance as of March 31, 2024 (73,707) 15,438 $ (23) $ (58,292) Change in accumulated other comprehensive income (loss) before reclassifications (5,257) (572) 35 (5,794) Reclassification adjustments from accumulated other comprehensive income (loss) 970 — — 970 Balance as of June 30, 2024 $ (77,994) $ 14,866 $ 12 $ (63,116) (1) 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. The following table shows the changes in the components of our accumulated other comprehensive income (loss), net of tax, for the six-month period ended June 30, 2024: Liability for Foreign Net unrealized underfunded currency gain (loss) employee translation on investments benefit costs (1) adjustment Total Balance as of January 1, 2024 (66,967) 16,010 — $ (50,957) Change in accumulated other comprehensive income (loss) before reclassifications (14,023) (1,144) 12 (15,155) Reclassification adjustments from accumulated other comprehensive income (loss) 2,996 — — 2,996 Balance as of June 30, 2024 $ (77,994) $ 14,866 $ 12 $ (63,116) |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Summary of Components of Operating Leases | The components of our operating leases were as follows for the three- and six-month periods ended June 30, 2024 and 2023: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Components of lease expense: Operating lease expense $ 2,354 $ 2,210 $ 4,754 $ 4,397 Less lessor income 145 133 291 266 Less sublease income 133 126 266 160 Net lease expense 2,076 1,951 4,197 3,971 Cash flows information related to leases: Operating cash outflow from operating leases 2,080 1,991 4,184 4,043 |
Nature of Operations and Basi_4
Nature of Operations and Basis of Presentation - Nature of Business & Segment Information (Details) | 6 Months Ended |
Jun. 30, 2024 segment state | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of states in which we are licensed as insurer | state | 50 |
Number of reportable segments | segment | 1 |
Nature of Operations and Basi_5
Nature of Operations and Basis of Presentation - Deferred Policy Acquisition Costs (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |
Recorded asset at beginning of period | $ 126,532 |
Underwriting costs deferred | 150,591 |
Amortization of deferred policy acquisition costs | (133,079) |
Recorded asset at June 30, 2024 | $ 144,044 |
Nature of Operations and Basi_6
Nature of Operations and Basis of Presentation - Goodwill and Other Intangible Assets (Details) | Jun. 30, 2024 |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 2 years |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 15 years |
Nature of Operations and Basi_7
Nature of Operations and Basis of Presentation - Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Federal income tax expense (benefit) | $ (1,035,000) | $ (15,845,000) | $ 1,747,000 | $ (16,540,000) | |
Liability for unrecognized tax benefits | 0 | 0 | $ 0 | ||
Valuation allowance | $ 0 | 0 | $ 0 | ||
Income taxes paid | 9,612,000 | 1,324,000 | |||
Federal tax refund received | $ 0 | $ 0 |
Nature of Operations and Basi_8
Nature of Operations and Basis of Presentation - Credit Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Credit loss allowance for reinsurance receivables | $ 102 | $ 97 |
Nature of Operations and Basi_9
Nature of Operations and Basis of Presentation - Rollforward of Credit Loss Allowance for Reinsurance Receivable (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward] | |
Beginning balance, January 1, 2024 | $ 97 |
Current-period provision for expected credit losses | 5 |
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 receivables, June 30, 2024 | $ 102 |
Nature of Operations and Bas_10
Nature of Operations and Basis of Presentation - Subsequent Events (Details) $ in Millions | Jul. 31, 2024 USD ($) |
Subsequent Event | |
Subsequent Event [Line Items] | |
Estimated liability | $ 3.2 |
Summary of Investments - Fair V
Summary of Investments - Fair Value of Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Fixed maturities: | ||
Amortized Cost | $ 1,895,582 | $ 1,771,041 |
Gross Unrealized Gain | 2,299 | 6,810 |
Gross Unrealized Loss | 101,748 | 91,348 |
Allowance for Credit Losses | 0 | 1 |
Fair Value | 1,796,133 | 1,686,502 |
U.S. Treasury | ||
Fixed maturities: | ||
Amortized Cost | 51,211 | 51,211 |
Gross Unrealized Gain | 56 | 325 |
Gross Unrealized Loss | 618 | 675 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 50,649 | 50,861 |
U.S. government agency | ||
Fixed maturities: | ||
Amortized Cost | 97,438 | 102,540 |
Gross Unrealized Gain | 57 | 255 |
Gross Unrealized Loss | 9,154 | 8,302 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 88,341 | 94,493 |
General obligations | Midwest | ||
Fixed maturities: | ||
Amortized Cost | 38,918 | 52,712 |
Gross Unrealized Gain | 0 | 132 |
Gross Unrealized Loss | 469 | 137 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 38,449 | 52,707 |
General obligations | Northeast | ||
Fixed maturities: | ||
Amortized Cost | 7,121 | 11,422 |
Gross Unrealized Gain | 0 | 1 |
Gross Unrealized Loss | 122 | 43 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 6,999 | 11,380 |
General obligations | South | ||
Fixed maturities: | ||
Amortized Cost | 36,875 | 54,560 |
Gross Unrealized Gain | 0 | 47 |
Gross Unrealized Loss | 768 | 400 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 36,107 | 54,207 |
General obligations | West | ||
Fixed maturities: | ||
Amortized Cost | 58,789 | 77,874 |
Gross Unrealized Gain | 35 | 23 |
Gross Unrealized Loss | 939 | 471 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 57,885 | 77,426 |
Special revenue | Midwest | ||
Fixed maturities: | ||
Amortized Cost | 64,440 | 101,037 |
Gross Unrealized Gain | 2 | 302 |
Gross Unrealized Loss | 729 | 358 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 63,713 | 100,981 |
Special revenue | Northeast | ||
Fixed maturities: | ||
Amortized Cost | 50,012 | 52,708 |
Gross Unrealized Gain | 23 | 79 |
Gross Unrealized Loss | 767 | 560 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 49,268 | 52,227 |
Special revenue | South | ||
Fixed maturities: | ||
Amortized Cost | 121,547 | 166,119 |
Gross Unrealized Gain | 21 | 302 |
Gross Unrealized Loss | 2,932 | 2,155 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 118,636 | 164,266 |
Special revenue | West | ||
Fixed maturities: | ||
Amortized Cost | 86,246 | 102,254 |
Gross Unrealized Gain | 8 | 147 |
Gross Unrealized Loss | 1,485 | 836 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 84,769 | 101,565 |
Foreign bonds | ||
Fixed maturities: | ||
Amortized Cost | 16,210 | 21,255 |
Gross Unrealized Gain | 11 | 0 |
Gross Unrealized Loss | 1,083 | 2,083 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 15,138 | 19,172 |
Public utilities | ||
Fixed maturities: | ||
Amortized Cost | 141,202 | 149,734 |
Gross Unrealized Gain | 286 | 787 |
Gross Unrealized Loss | 10,720 | 10,054 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 130,768 | 140,467 |
Corporate bonds | Energy | ||
Fixed maturities: | ||
Amortized Cost | 41,879 | 45,351 |
Gross Unrealized Gain | 3 | 249 |
Gross Unrealized Loss | 2,245 | 2,127 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 39,637 | 43,473 |
Corporate bonds | Industrials | ||
Fixed maturities: | ||
Amortized Cost | 58,647 | 74,760 |
Gross Unrealized Gain | 86 | 727 |
Gross Unrealized Loss | 5,011 | 4,939 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 53,722 | 70,548 |
Corporate bonds | Consumer goods and services | ||
Fixed maturities: | ||
Amortized Cost | 101,945 | 103,315 |
Gross Unrealized Gain | 52 | 271 |
Gross Unrealized Loss | 8,675 | 7,665 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 93,322 | 95,921 |
Corporate bonds | Health care | ||
Fixed maturities: | ||
Amortized Cost | 31,795 | 37,872 |
Gross Unrealized Gain | 0 | 99 |
Gross Unrealized Loss | 4,939 | 4,499 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 26,856 | 33,472 |
Corporate bonds | Technology, media and telecommunications | ||
Fixed maturities: | ||
Amortized Cost | 82,279 | 87,002 |
Gross Unrealized Gain | 0 | 451 |
Gross Unrealized Loss | 7,305 | 5,665 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 74,974 | 81,788 |
Corporate bonds | Financial services | ||
Fixed maturities: | ||
Amortized Cost | 233,099 | 152,329 |
Gross Unrealized Gain | 852 | 743 |
Gross Unrealized Loss | 6,379 | 7,381 |
Allowance for Credit Losses | 0 | 1 |
Fair Value | 227,572 | 145,690 |
Mortgage-backed securities | ||
Fixed maturities: | ||
Amortized Cost | 219,159 | 23,800 |
Gross Unrealized Gain | 500 | 11 |
Gross Unrealized Loss | 3,380 | 2,328 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 216,279 | 21,483 |
Collateralized mortgage obligations | Government National Mortgage Association | ||
Fixed maturities: | ||
Amortized Cost | 151,577 | 164,666 |
Gross Unrealized Gain | 161 | 1,282 |
Gross Unrealized Loss | 14,138 | 12,742 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 137,600 | 153,206 |
Collateralized mortgage obligations | Federal Home Loan Mortgage Corporation | ||
Fixed maturities: | ||
Amortized Cost | 79,811 | 84,842 |
Gross Unrealized Gain | 0 | 20 |
Gross Unrealized Loss | 14,502 | 13,177 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 65,309 | 71,685 |
Collateralized mortgage obligations | Federal National Mortgage Association | ||
Fixed maturities: | ||
Amortized Cost | 46,395 | 50,284 |
Gross Unrealized Gain | 23 | 33 |
Gross Unrealized Loss | 5,201 | 4,664 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 41,217 | 45,653 |
Asset-backed securities | ||
Fixed maturities: | ||
Amortized Cost | 78,987 | 3,394 |
Gross Unrealized Gain | 123 | 524 |
Gross Unrealized Loss | 187 | 87 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | $ 78,923 | $ 3,831 |
Summary of Investments - Maturi
Summary of Investments - Maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Amortized Cost | ||
Due in one year or less | $ 119,744 | |
Due after one year through five years | 418,408 | |
Due after five years through 10 years | 415,686 | |
Due after 10 years | 365,815 | |
Amortized Cost | 1,895,582 | $ 1,771,041 |
Fair Value | ||
Due in one year or less | 118,585 | |
Due after one year through five years | 406,880 | |
Due after five years through 10 years | 385,942 | |
Due after 10 years | 345,398 | |
Fair Value | 1,796,133 | 1,686,502 |
Fixed Maturities | ||
Amortized Cost | ||
Amortized Cost | 1,895,582 | |
Fair Value | ||
Fair Value | 1,796,133 | |
Asset-backed securities | ||
Amortized Cost | ||
Securities not categorized by contractual maturity | 78,987 | |
Amortized Cost | 78,987 | 3,394 |
Fair Value | ||
Securities not categorized by contractual maturity | 78,923 | |
Mortgage-backed securities | ||
Amortized Cost | ||
Securities not categorized by contractual maturity | 219,159 | |
Amortized Cost | 219,159 | $ 23,800 |
Fair Value | ||
Securities not categorized by contractual maturity | 216,279 | |
Collateralized mortgage obligations | ||
Amortized Cost | ||
Securities not categorized by contractual maturity | 277,783 | |
Fair Value | ||
Securities not categorized by contractual maturity | $ 244,126 |
Summary of Investments - Net In
Summary of Investments - Net Investment Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Net investment gains (losses): | ||||
Available-for-sale | $ (1,382) | $ (248) | $ (4,044) | $ (426) |
Allowance for credit losses | 1 | 177 | 1 | 1 |
Net gains (losses) recognized on equity securities sold during the period | 0 | 1,735 | 1,362 | 2,235 |
Unrealized gains (losses) recognized during the period on equity securities held at reporting date | 0 | (459) | 0 | (2,164) |
Net gains (losses) recognized during the reporting period on equity securities | 0 | 1,276 | 1,362 | 71 |
Mortgage loans allowance for credit losses | 0 | (6) | 10 | (6) |
Other long-term investments | 152 | (122) | 241 | (308) |
Real estate | 0 | 47 | 0 | 47 |
Total net investment gains (losses) | $ (1,229) | $ 1,124 | $ (2,431) | $ (621) |
Summary of Investments - Gains
Summary of Investments - Gains (Losses) on the Sale of Available-for-sale Fixed Maturity Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from sales | $ 145,621 | $ 33,941 | $ 233,999 | $ 43,809 |
Gross realized gains | 133 | 110 | 1,498 | 121 |
Gross realized losses | $ 1,515 | $ 358 | $ 5,542 | $ 547 |
Summary of Investments - Fundin
Summary of Investments - Funding Commitment (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Remaining potential contractual obligation | $ 25,442 |
Summary of Investments - Unreal
Summary of Investments - Unrealized Gain and Loss (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Change in net unrealized investment gain (loss) | ||
Available-for-sale fixed maturities | $ (13,958) | $ (919) |
Income tax effect | 2,931 | 193 |
Total change in net unrealized investment gain (loss), net of tax | $ (11,027) | $ (726) |
Summary of Investments - Rollfo
Summary of Investments - Rollforward of Allowance for Credit Losses for Available-for-Sale Fixed Maturity Securities (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Rollforward of allowance for credit losses for available-for-sale fixed maturity securities: | |
Beginning balance, January 1, 2024 | $ 1 |
Additions to the allowance for credit losses for which credit losses were not previously recorded | |
Reductions for securities sold during the period (realized) | |
Write-offs charged against the allowance | |
Recoveries of amounts previously written off | (1) |
Ending balance, June 30, 2024 | $ 0 |
Summary of Investments - Fixed
Summary of Investments - Fixed Maturities Unrealized Loss (Details) $ in Thousands | Jun. 30, 2024 USD ($) issue | Dec. 31, 2023 USD ($) issue |
Number of Issues | ||
Less than 12 months | issue | 150 | 137 |
12 months or longer | issue | 500 | 459 |
Fair Value | ||
Less than 12 months | $ 474,675 | $ 285,342 |
12 months or longer | 1,025,212 | 960,788 |
Total | 1,499,887 | 1,246,130 |
Gross Unrealized Loss | ||
Less than 12 months | 3,812 | 1,608 |
12 months or longer | 97,936 | 89,740 |
Total | $ 101,748 | $ 91,348 |
U.S. Treasury | ||
Number of Issues | ||
Less than 12 months | issue | 2 | 2 |
12 months or longer | issue | 8 | 6 |
Fair Value | ||
Less than 12 months | $ 24,891 | $ 4,138 |
12 months or longer | 16,856 | 12,717 |
Total | 41,747 | 16,855 |
Gross Unrealized Loss | ||
Less than 12 months | 47 | 46 |
12 months or longer | 571 | 629 |
Total | $ 618 | $ 675 |
U.S. government agency | ||
Number of Issues | ||
Less than 12 months | issue | 4 | 3 |
12 months or longer | issue | 23 | 23 |
Fair Value | ||
Less than 12 months | $ 13,890 | $ 10,986 |
12 months or longer | 70,493 | 71,375 |
Total | 84,383 | 82,361 |
Gross Unrealized Loss | ||
Less than 12 months | 91 | 14 |
12 months or longer | 9,063 | 8,288 |
Total | $ 9,154 | $ 8,302 |
General obligations | Midwest | ||
Number of Issues | ||
Less than 12 months | issue | 7 | 11 |
12 months or longer | issue | 7 | 3 |
Fair Value | ||
Less than 12 months | $ 18,941 | $ 19,534 |
12 months or longer | 18,388 | 10,737 |
Total | 37,329 | 30,271 |
Gross Unrealized Loss | ||
Less than 12 months | 123 | 61 |
12 months or longer | 346 | 76 |
Total | $ 469 | $ 137 |
General obligations | Northeast | ||
Number of Issues | ||
Less than 12 months | issue | 9 | 3 |
12 months or longer | issue | 1 | 1 |
Fair Value | ||
Less than 12 months | $ 3,566 | $ 5,371 |
12 months or longer | 3,433 | 3,469 |
Total | 6,999 | 8,840 |
Gross Unrealized Loss | ||
Less than 12 months | 64 | 8 |
12 months or longer | 58 | 35 |
Total | $ 122 | $ 43 |
General obligations | South | ||
Number of Issues | ||
Less than 12 months | issue | 4 | 12 |
12 months or longer | issue | 14 | 9 |
Fair Value | ||
Less than 12 months | $ 8,914 | $ 21,753 |
12 months or longer | 26,042 | 16,610 |
Total | 34,956 | 38,363 |
Gross Unrealized Loss | ||
Less than 12 months | 59 | 91 |
12 months or longer | 709 | 309 |
Total | $ 768 | $ 400 |
General obligations | West | ||
Number of Issues | ||
Less than 12 months | issue | 6 | 17 |
12 months or longer | issue | 12 | 7 |
Fair Value | ||
Less than 12 months | $ 9,558 | $ 38,204 |
12 months or longer | 36,434 | 20,064 |
Total | 45,992 | 58,268 |
Gross Unrealized Loss | ||
Less than 12 months | 46 | 140 |
12 months or longer | 893 | 331 |
Total | $ 939 | $ 471 |
Special revenue | Midwest | ||
Number of Issues | ||
Less than 12 months | issue | 14 | 17 |
12 months or longer | issue | 18 | 11 |
Fair Value | ||
Less than 12 months | $ 23,903 | $ 29,535 |
12 months or longer | 33,974 | 23,375 |
Total | 57,877 | 52,910 |
Gross Unrealized Loss | ||
Less than 12 months | 238 | 113 |
12 months or longer | 491 | 245 |
Total | $ 729 | $ 358 |
Special revenue | Northeast | ||
Number of Issues | ||
Less than 12 months | issue | 3 | 6 |
12 months or longer | issue | 13 | 8 |
Fair Value | ||
Less than 12 months | $ 6,844 | $ 15,131 |
12 months or longer | 32,544 | 24,271 |
Total | 39,388 | 39,402 |
Gross Unrealized Loss | ||
Less than 12 months | 28 | 67 |
12 months or longer | 739 | 493 |
Total | $ 767 | $ 560 |
Special revenue | South | ||
Number of Issues | ||
Less than 12 months | issue | 13 | 21 |
12 months or longer | issue | 42 | 32 |
Fair Value | ||
Less than 12 months | $ 24,560 | $ 45,639 |
12 months or longer | 89,295 | 66,925 |
Total | 113,855 | 112,564 |
Gross Unrealized Loss | ||
Less than 12 months | 213 | 232 |
12 months or longer | 2,719 | 1,923 |
Total | $ 2,932 | $ 2,155 |
Special revenue | West | ||
Number of Issues | ||
Less than 12 months | issue | 14 | 20 |
12 months or longer | issue | 30 | 16 |
Fair Value | ||
Less than 12 months | $ 17,608 | $ 32,789 |
12 months or longer | 63,881 | 38,495 |
Total | 81,489 | 71,284 |
Gross Unrealized Loss | ||
Less than 12 months | 207 | 248 |
12 months or longer | 1,278 | 588 |
Total | $ 1,485 | $ 836 |
Foreign bonds | ||
Number of Issues | ||
Less than 12 months | issue | 0 | 0 |
12 months or longer | issue | 5 | 9 |
Fair Value | ||
Less than 12 months | $ 0 | $ 0 |
12 months or longer | 11,190 | 19,172 |
Total | 11,190 | 19,172 |
Gross Unrealized Loss | ||
Less than 12 months | 0 | 0 |
12 months or longer | 1,083 | 2,083 |
Total | $ 1,083 | $ 2,083 |
Public utilities | ||
Number of Issues | ||
Less than 12 months | issue | 5 | 4 |
12 months or longer | issue | 48 | 48 |
Fair Value | ||
Less than 12 months | $ 12,656 | $ 7,151 |
12 months or longer | 107,286 | 111,793 |
Total | 119,942 | 118,944 |
Gross Unrealized Loss | ||
Less than 12 months | 148 | 74 |
12 months or longer | 10,572 | 9,980 |
Total | $ 10,720 | $ 10,054 |
Corporate bonds | Energy | ||
Number of Issues | ||
Less than 12 months | issue | 3 | 0 |
12 months or longer | issue | 13 | 15 |
Fair Value | ||
Less than 12 months | $ 7,613 | $ 0 |
12 months or longer | 31,759 | 34,331 |
Total | 39,372 | 34,331 |
Gross Unrealized Loss | ||
Less than 12 months | 52 | 0 |
12 months or longer | 2,193 | 2,127 |
Total | $ 2,245 | $ 2,127 |
Corporate bonds | Industrials | ||
Number of Issues | ||
Less than 12 months | issue | 1 | 1 |
12 months or longer | issue | 19 | 21 |
Fair Value | ||
Less than 12 months | $ 2,931 | $ 1,210 |
12 months or longer | 40,660 | 47,462 |
Total | 43,591 | 48,672 |
Gross Unrealized Loss | ||
Less than 12 months | 63 | 19 |
12 months or longer | 4,948 | 4,920 |
Total | $ 5,011 | $ 4,939 |
Corporate bonds | Consumer goods and services | ||
Number of Issues | ||
Less than 12 months | issue | 6 | 4 |
12 months or longer | issue | 29 | 28 |
Fair Value | ||
Less than 12 months | $ 11,860 | $ 14,724 |
12 months or longer | 76,528 | 68,837 |
Total | 88,388 | 83,561 |
Gross Unrealized Loss | ||
Less than 12 months | 155 | 98 |
12 months or longer | 8,520 | 7,567 |
Total | $ 8,675 | $ 7,665 |
Corporate bonds | Health care | ||
Number of Issues | ||
Less than 12 months | issue | 3 | 1 |
12 months or longer | issue | 9 | 11 |
Fair Value | ||
Less than 12 months | $ 5,412 | $ 3,000 |
12 months or longer | 21,444 | 26,544 |
Total | 26,856 | 29,544 |
Gross Unrealized Loss | ||
Less than 12 months | 95 | 2 |
12 months or longer | 4,844 | 4,497 |
Total | $ 4,939 | $ 4,499 |
Corporate bonds | Technology, media and telecommunications | ||
Number of Issues | ||
Less than 12 months | issue | 4 | 1 |
12 months or longer | issue | 27 | 27 |
Fair Value | ||
Less than 12 months | $ 13,285 | $ 3,969 |
12 months or longer | 61,689 | 62,988 |
Total | 74,974 | 66,957 |
Gross Unrealized Loss | ||
Less than 12 months | 344 | 35 |
12 months or longer | 6,961 | 5,630 |
Total | $ 7,305 | $ 5,665 |
Corporate bonds | Financial services | ||
Number of Issues | ||
Less than 12 months | issue | 13 | 5 |
12 months or longer | issue | 38 | 44 |
Fair Value | ||
Less than 12 months | $ 69,749 | $ 14,327 |
12 months or longer | 100,662 | 112,517 |
Total | 170,411 | 126,844 |
Gross Unrealized Loss | ||
Less than 12 months | 557 | 223 |
12 months or longer | 5,822 | 7,158 |
Total | $ 6,379 | $ 7,381 |
Mortgage-backed securities | ||
Number of Issues | ||
Less than 12 months | issue | 18 | 3 |
12 months or longer | issue | 50 | 48 |
Fair Value | ||
Less than 12 months | $ 128,323 | $ 2,783 |
12 months or longer | 17,020 | 15,758 |
Total | 145,343 | 18,541 |
Gross Unrealized Loss | ||
Less than 12 months | 777 | 33 |
12 months or longer | 2,603 | 2,295 |
Total | $ 3,380 | $ 2,328 |
Collateralized mortgage obligations | Government National Mortgage Association | ||
Number of Issues | ||
Less than 12 months | issue | 11 | 2 |
12 months or longer | issue | 41 | 40 |
Fair Value | ||
Less than 12 months | $ 39,696 | $ 7,055 |
12 months or longer | 69,975 | 72,565 |
Total | 109,671 | 79,620 |
Gross Unrealized Loss | ||
Less than 12 months | 304 | 27 |
12 months or longer | 13,834 | 12,715 |
Total | $ 14,138 | $ 12,742 |
Collateralized mortgage obligations | Federal Home Loan Mortgage Corporation | ||
Number of Issues | ||
Less than 12 months | issue | 1 | 2 |
12 months or longer | issue | 32 | 31 |
Fair Value | ||
Less than 12 months | $ 2,528 | $ 2,589 |
12 months or longer | 62,781 | 66,361 |
Total | 65,309 | 68,950 |
Gross Unrealized Loss | ||
Less than 12 months | 12 | 22 |
12 months or longer | 14,490 | 13,155 |
Total | $ 14,502 | $ 13,177 |
Collateralized mortgage obligations | Federal National Mortgage Association | ||
Number of Issues | ||
Less than 12 months | issue | 3 | 2 |
12 months or longer | issue | 20 | 20 |
Fair Value | ||
Less than 12 months | $ 5,464 | $ 5,454 |
12 months or longer | 30,266 | 31,460 |
Total | 35,730 | 36,914 |
Gross Unrealized Loss | ||
Less than 12 months | 74 | 55 |
12 months or longer | 5,127 | 4,609 |
Total | $ 5,201 | $ 4,664 |
Asset-backed securities | ||
Number of Issues | ||
Less than 12 months | issue | 6 | 0 |
12 months or longer | issue | 1 | 1 |
Fair Value | ||
Less than 12 months | $ 22,483 | $ 0 |
12 months or longer | 2,612 | 2,962 |
Total | 25,095 | 2,962 |
Gross Unrealized Loss | ||
Less than 12 months | 115 | 0 |
12 months or longer | 72 | 87 |
Total | $ 187 | $ 87 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2024 USD ($) security | Jun. 30, 2024 USD ($) security | Dec. 31, 2023 USD ($) | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Number of securities transferred out of level 3 | security | 0 | 2 | |
Accrued interest excluded from carrying value | $ 156 | $ 156 | |
Allowance for mortgage loan losses | 45 | 45 | $ 55 |
Rabbi Trust | Other Assets | Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash surrender value | $ 12,450 | $ 12,450 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Carrying Value and Estimated Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Fixed maturities: | ||
Available-for-sale securities | $ 1,796,133 | $ 1,686,502 |
Equity securities | 0 | 55,019 |
Mortgage loans | 41,238 | 45,366 |
Fixed Maturities | ||
Fixed maturities: | ||
Available-for-sale securities | 1,796,133 | |
Fair Value | ||
Fixed maturities: | ||
Equity securities | 0 | 55,019 |
Mortgage loans | 38,737 | 42,632 |
Other long-term investments | 98,405 | 99,507 |
Short-term investments | 100 | 100 |
Cash and cash equivalents | 153,430 | 102,046 |
Corporate-Owned Life Insurance | 12,450 | 11,913 |
Liabilities | ||
Long Term Debt | 107,959 | 38,413 |
Fair Value | Fixed Maturities | ||
Fixed maturities: | ||
Available-for-sale securities | 1,796,133 | 1,686,503 |
Carrying Value | ||
Fixed maturities: | ||
Equity securities | 0 | 55,019 |
Mortgage loans | 41,238 | 45,366 |
Other long-term investments | 98,405 | 99,507 |
Short-term investments | 100 | 100 |
Cash and cash equivalents | 153,430 | 102,046 |
Corporate-Owned Life Insurance | 12,450 | 11,913 |
Liabilities | ||
Long Term Debt | 116,965 | 50,000 |
Carrying Value | Fixed Maturities | ||
Fixed maturities: | ||
Available-for-sale securities | $ 1,796,133 | $ 1,686,502 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Financial Instruments Measured at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | $ 1,796,133 | $ 1,686,502 |
Total Equity Securities | 0 | 55,019 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 1,796,133 | 1,686,503 |
Total Equity Securities | 55,019 | |
Short-Term Investments | 100 | 100 |
Money Market Accounts | 51,654 | 20,333 |
Corporate-Owned Life Insurance | 12,450 | 11,913 |
Total Assets Measured at Fair Value | 1,860,337 | 1,773,868 |
Recurring | Energy | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Equity Securities | 9,477 | |
Recurring | Industrials | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Equity Securities | 14,164 | |
Recurring | Consumer goods and services | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Equity Securities | 11,385 | |
Recurring | Health care | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Equity Securities | 2,060 | |
Recurring | Technology, media and telecommunications | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Equity Securities | 6,405 | |
Recurring | Financial services | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Equity Securities | 7,535 | |
Recurring | Public utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Equity Securities | 3,993 | |
Recurring | U.S. Treasury | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 50,649 | 50,861 |
Recurring | U.S. government agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 88,341 | 94,493 |
Recurring | General obligations | Midwest | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 38,449 | 52,707 |
Recurring | General obligations | Northeast | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 6,999 | 11,380 |
Recurring | General obligations | South | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 36,107 | 54,207 |
Recurring | General obligations | West | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 57,885 | 77,426 |
Recurring | Special revenue | Midwest | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 63,713 | 100,981 |
Recurring | Special revenue | Northeast | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 49,268 | 52,227 |
Recurring | Special revenue | South | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 118,636 | 164,266 |
Recurring | Special revenue | West | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 84,769 | 101,565 |
Recurring | Foreign bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 15,138 | 19,172 |
Recurring | Public utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 130,768 | 140,467 |
Recurring | Corporate bonds | Energy | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 39,637 | 43,473 |
Recurring | Corporate bonds | Industrials | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 53,722 | 70,548 |
Recurring | Corporate bonds | Consumer goods and services | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 93,322 | 95,921 |
Recurring | Corporate bonds | Health care | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 26,856 | 33,472 |
Recurring | Corporate bonds | Technology, media and telecommunications | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 74,974 | 81,788 |
Recurring | Corporate bonds | Financial services | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 227,572 | 145,691 |
Recurring | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 216,279 | 21,483 |
Recurring | Collateralized mortgage obligations | Government National Mortgage Association | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 137,600 | 153,206 |
Recurring | Collateralized mortgage obligations | Federal Home Loan Mortgage Corporation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 65,309 | 71,685 |
Recurring | Collateralized mortgage obligations | Federal National Mortgage Association | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 41,217 | 45,653 |
Recurring | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 78,923 | 3,831 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 0 |
Total Equity Securities | 55,019 | |
Short-Term Investments | 100 | 100 |
Money Market Accounts | 51,654 | 20,333 |
Corporate-Owned Life Insurance | 0 | 0 |
Total Assets Measured at Fair Value | 51,754 | 75,452 |
Recurring | Level 1 | Energy | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Equity Securities | 9,477 | |
Recurring | Level 1 | Industrials | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Equity Securities | 14,164 | |
Recurring | Level 1 | Consumer goods and services | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Equity Securities | 11,385 | |
Recurring | Level 1 | Health care | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Equity Securities | 2,060 | |
Recurring | Level 1 | Technology, media and telecommunications | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Equity Securities | 6,405 | |
Recurring | Level 1 | Financial services | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Equity Securities | 7,535 | |
Recurring | Level 1 | Public utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Equity Securities | 3,993 | |
Recurring | Level 1 | U.S. Treasury | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 0 |
Recurring | Level 1 | U.S. government agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 0 |
Recurring | Level 1 | General obligations | Midwest | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 0 |
Recurring | Level 1 | General obligations | Northeast | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 0 |
Recurring | Level 1 | General obligations | South | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 0 |
Recurring | Level 1 | General obligations | West | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 0 |
Recurring | Level 1 | Special revenue | Midwest | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 0 |
Recurring | Level 1 | Special revenue | Northeast | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 0 |
Recurring | Level 1 | Special revenue | South | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 0 |
Recurring | Level 1 | Special revenue | West | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 0 |
Recurring | Level 1 | Foreign bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 0 |
Recurring | Level 1 | Public utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 0 |
Recurring | Level 1 | Corporate bonds | Energy | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 0 |
Recurring | Level 1 | Corporate bonds | Industrials | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 0 |
Recurring | Level 1 | Corporate bonds | Consumer goods and services | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 0 |
Recurring | Level 1 | Corporate bonds | Health care | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 0 |
Recurring | Level 1 | Corporate bonds | Technology, media and telecommunications | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 0 |
Recurring | Level 1 | Corporate bonds | Financial services | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 0 |
Recurring | Level 1 | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 0 |
Recurring | Level 1 | Collateralized mortgage obligations | Government National Mortgage Association | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 0 |
Recurring | Level 1 | Collateralized mortgage obligations | Federal Home Loan Mortgage Corporation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 0 |
Recurring | Level 1 | Collateralized mortgage obligations | Federal National Mortgage Association | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 0 |
Recurring | Level 1 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 0 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 1,795,857 | 1,675,919 |
Total Equity Securities | 0 | |
Short-Term Investments | 0 | 0 |
Money Market Accounts | 0 | 0 |
Corporate-Owned Life Insurance | 12,450 | 11,913 |
Total Assets Measured at Fair Value | 1,808,307 | 1,687,832 |
Recurring | Level 2 | Energy | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Equity Securities | 0 | |
Recurring | Level 2 | Industrials | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Equity Securities | 0 | |
Recurring | Level 2 | Consumer goods and services | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Equity Securities | 0 | |
Recurring | Level 2 | Health care | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Equity Securities | 0 | |
Recurring | Level 2 | Technology, media and telecommunications | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Equity Securities | 0 | |
Recurring | Level 2 | Financial services | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Equity Securities | 0 | |
Recurring | Level 2 | Public utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Equity Securities | 0 | |
Recurring | Level 2 | U.S. Treasury | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 50,649 | 50,861 |
Recurring | Level 2 | U.S. government agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 88,341 | 94,493 |
Recurring | Level 2 | General obligations | Midwest | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 38,449 | 52,707 |
Recurring | Level 2 | General obligations | Northeast | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 6,999 | 11,380 |
Recurring | Level 2 | General obligations | South | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 36,107 | 54,207 |
Recurring | Level 2 | General obligations | West | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 57,885 | 77,426 |
Recurring | Level 2 | Special revenue | Midwest | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 63,713 | 100,981 |
Recurring | Level 2 | Special revenue | Northeast | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 49,268 | 52,227 |
Recurring | Level 2 | Special revenue | South | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 118,636 | 164,266 |
Recurring | Level 2 | Special revenue | West | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 84,769 | 101,565 |
Recurring | Level 2 | Foreign bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 15,138 | 19,172 |
Recurring | Level 2 | Public utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 130,768 | 140,467 |
Recurring | Level 2 | Corporate bonds | Energy | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 39,637 | 43,473 |
Recurring | Level 2 | Corporate bonds | Industrials | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 53,722 | 70,548 |
Recurring | Level 2 | Corporate bonds | Consumer goods and services | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 93,322 | 95,921 |
Recurring | Level 2 | Corporate bonds | Health care | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 26,856 | 33,472 |
Recurring | Level 2 | Corporate bonds | Technology, media and telecommunications | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 74,974 | 81,788 |
Recurring | Level 2 | Corporate bonds | Financial services | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 227,572 | 140,799 |
Recurring | Level 2 | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 216,279 | 21,483 |
Recurring | Level 2 | Collateralized mortgage obligations | Government National Mortgage Association | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 137,600 | 153,206 |
Recurring | Level 2 | Collateralized mortgage obligations | Federal Home Loan Mortgage Corporation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 65,309 | 66,862 |
Recurring | Level 2 | Collateralized mortgage obligations | Federal National Mortgage Association | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 41,217 | 45,653 |
Recurring | Level 2 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 78,647 | 2,962 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 276 | 10,584 |
Total Equity Securities | 0 | |
Short-Term Investments | 0 | 0 |
Money Market Accounts | 0 | 0 |
Corporate-Owned Life Insurance | 0 | 0 |
Total Assets Measured at Fair Value | 276 | 10,584 |
Recurring | Level 3 | Energy | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Equity Securities | 0 | |
Recurring | Level 3 | Industrials | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Equity Securities | 0 | |
Recurring | Level 3 | Consumer goods and services | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Equity Securities | 0 | |
Recurring | Level 3 | Health care | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Equity Securities | 0 | |
Recurring | Level 3 | Technology, media and telecommunications | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Equity Securities | 0 | |
Recurring | Level 3 | Financial services | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Equity Securities | 0 | |
Recurring | Level 3 | Public utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Equity Securities | 0 | |
Recurring | Level 3 | U.S. Treasury | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 0 |
Recurring | Level 3 | U.S. government agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 0 |
Recurring | Level 3 | General obligations | Midwest | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 0 |
Recurring | Level 3 | General obligations | Northeast | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 0 |
Recurring | Level 3 | General obligations | South | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 0 |
Recurring | Level 3 | General obligations | West | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 0 |
Recurring | Level 3 | Special revenue | Midwest | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 0 |
Recurring | Level 3 | Special revenue | Northeast | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 0 |
Recurring | Level 3 | Special revenue | South | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 0 |
Recurring | Level 3 | Special revenue | West | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 0 |
Recurring | Level 3 | Foreign bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 0 |
Recurring | Level 3 | Public utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 0 |
Recurring | Level 3 | Corporate bonds | Energy | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 0 |
Recurring | Level 3 | Corporate bonds | Industrials | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 0 |
Recurring | Level 3 | Corporate bonds | Consumer goods and services | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 0 |
Recurring | Level 3 | Corporate bonds | Health care | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 0 |
Recurring | Level 3 | Corporate bonds | Technology, media and telecommunications | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 0 |
Recurring | Level 3 | Corporate bonds | Financial services | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 4,892 |
Recurring | Level 3 | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 0 |
Recurring | Level 3 | Collateralized mortgage obligations | Government National Mortgage Association | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 0 |
Recurring | Level 3 | Collateralized mortgage obligations | Federal Home Loan Mortgage Corporation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 4,823 |
Recurring | Level 3 | Collateralized mortgage obligations | Federal National Mortgage Association | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | 0 | 0 |
Recurring | Level 3 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-Sale Fixed Maturities | $ 276 | $ 869 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Fair Value of Financial Instruments That Are Not Carried at Fair Value on a Recurring Basis (Details) - Nonrecurring - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money Market Accounts | $ 101,776 | $ 81,713 |
Other Long Term Investments | 98,405 | 99,507 |
Mortgage Loans | 38,737 | 42,632 |
Total Assets Measured at Fair Value | 238,918 | 223,852 |
Long Term Debt | 107,959 | 38,413 |
Total Financial liabilities not accounted for at fair value | 107,959 | 38,413 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money Market Accounts | 101,776 | 81,713 |
Other Long Term Investments | 0 | 0 |
Mortgage Loans | 0 | 0 |
Total Assets Measured at Fair Value | 101,776 | 81,713 |
Long Term Debt | 0 | |
Total Financial liabilities not accounted for at fair value | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money Market Accounts | 0 | 0 |
Other Long Term Investments | 1,277 | 1,249 |
Mortgage Loans | 0 | 0 |
Total Assets Measured at Fair Value | 1,277 | 1,249 |
Long Term Debt | 107,959 | 38,413 |
Total Financial liabilities not accounted for at fair value | 107,959 | 38,413 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money Market Accounts | 0 | 0 |
Other Long Term Investments | 0 | 0 |
Mortgage Loans | 38,737 | 42,632 |
Total Assets Measured at Fair Value | 38,737 | 42,632 |
Long Term Debt | 0 | |
Total Financial liabilities not accounted for at fair value | 0 | 0 |
Net Asset Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money Market Accounts | 0 | 0 |
Other Long Term Investments | 97,128 | 98,258 |
Mortgage Loans | 0 | 0 |
Total Assets Measured at Fair Value | 97,128 | 98,258 |
Long Term Debt | 0 | |
Total Financial liabilities not accounted for at fair value | $ 0 | $ 0 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Quantitative Information About Level 3 Fair Value Measurements (Details) $ in Thousands | Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Available-for-sale securities | $ 1,796,133 | $ 1,686,502 |
Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Available-for-sale securities | 1,796,133 | 1,686,503 |
Recurring | Fixed Maturities asset-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Available-for-sale securities | 78,923 | 3,831 |
Recurring | Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Available-for-sale securities | 276 | 10,584 |
Recurring | Level 3 | Fixed Maturities asset-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Available-for-sale securities | $ 276 | $ 869 |
Recurring | Level 3 | Fixed Maturities asset-backed securities | Book Value | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Available-for-sale securities, range of weighted average significant unobservable inputs | 0 | |
Recurring | Level 3 | Fixed Maturities asset-backed securities | Book Value | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Available-for-sale securities, range of weighted average significant unobservable inputs | 1 |
Fair Value of Financial Instr_8
Fair Value of Financial Instruments - Level 3 Securities (Details) - Recurring - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2024 | Jun. 30, 2024 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 276 | $ 10,584 |
Realized gains (losses) | 0 | 0 |
Net unrealized gains (losses) | 0 | (593) |
Amortization | 0 | 0 |
Purchases | 0 | 0 |
Disposals | 0 | 0 |
Transfers in | 0 | 0 |
Transfers out | 0 | (9,715) |
Ending balance | 276 | 276 |
Corporate bonds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 0 | 4,892 |
Realized gains (losses) | 0 | 0 |
Net unrealized gains (losses) | 0 | 0 |
Amortization | 0 | 0 |
Purchases | 0 | 0 |
Disposals | 0 | 0 |
Transfers in | 0 | 0 |
Transfers out | 0 | (4,892) |
Ending balance | 0 | 0 |
Asset-backed securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 276 | 5,692 |
Realized gains (losses) | 0 | 0 |
Net unrealized gains (losses) | 0 | (593) |
Amortization | 0 | 0 |
Purchases | 0 | 0 |
Disposals | 0 | 0 |
Transfers in | 0 | 0 |
Transfers out | 0 | (4,823) |
Ending balance | $ 276 | $ 276 |
Fair Value of Financial Instr_9
Fair Value of Financial Instruments - Carrying Value of Commercial Mortgage Loans and Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total amortized cost | $ 41,283 | $ 45,421 |
Allowance for mortgage loan losses | (45) | (55) |
Mortgage loans, net | 41,238 | 45,366 |
Total mortgage loans | Mortgage Loans by Region | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Mortgage loans, net | $ 41,283 | $ 45,421 |
Percent of Total | 100% | 100% |
Total mortgage loans | Mortgage Loans by Region | East North Central | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Mortgage loans, net | $ 3,245 | $ 3,245 |
Percent of Total | 7.90% | 7.10% |
Total mortgage loans | Mortgage Loans by Region | Southern Atlantic | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Mortgage loans, net | $ 17,119 | $ 17,217 |
Percent of Total | 41.50% | 37.90% |
Total mortgage loans | Mortgage Loans by Region | East South Central | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Mortgage loans, net | $ 7,393 | $ 7,526 |
Percent of Total | 17.90% | 16.60% |
Total mortgage loans | Mortgage Loans by Region | New England | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Mortgage loans, net | $ 6,588 | $ 6,588 |
Percent of Total | 15.90% | 14.50% |
Total mortgage loans | Mortgage Loans by Region | Middle Atlantic | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Mortgage loans, net | $ 2,102 | $ 5,979 |
Percent of Total | 5.10% | 13.20% |
Total mortgage loans | Mortgage Loans by Region | Mountain | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Mortgage loans, net | $ 1,992 | $ 1,992 |
Percent of Total | 4.80% | 4.40% |
Total mortgage loans | Mortgage Loans by Region | West North Central | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Mortgage loans, net | $ 2,844 | $ 2,874 |
Percent of Total | 6.90% | 6.30% |
Total mortgage loans | Mortgage Loans by Property Type | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Mortgage loans, net | $ 41,283 | $ 45,421 |
Percent of Total | 100% | 100% |
Total mortgage loans | Mortgage Loans by Property Type | Multifamily | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Mortgage loans, net | $ 8,448 | $ 8,507 |
Percent of Total | 20.50% | 18.70% |
Total mortgage loans | Mortgage Loans by Property Type | Office | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Mortgage loans, net | $ 10,784 | $ 10,950 |
Percent of Total | 26.10% | 24.10% |
Total mortgage loans | Mortgage Loans by Property Type | Industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Mortgage loans, net | $ 9,949 | $ 9,985 |
Percent of Total | 24.10% | 22% |
Total mortgage loans | Mortgage Loans by Property Type | Retail | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Mortgage loans, net | $ 10,000 | $ 10,000 |
Percent of Total | 24.20% | 22% |
Total mortgage loans | Mortgage Loans by Property Type | Mixed use/Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Mortgage loans, net | $ 2,102 | $ 5,979 |
Percent of Total | 5.10% | 13.20% |
Less than 65% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total amortized cost | $ 32,718 | $ 36,762 |
65%-75% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total amortized cost | $ 8,565 | $ 8,659 |
Fair Value of Financial Inst_10
Fair Value of Financial Instruments - Amortized Cost Basis by Year of Origination and Credit Quality Indicator (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | $ 8,134 | |
2022 | 99 | |
2020 | 5,204 | |
2019 | 7,802 | |
2018 | 20,044 | |
Total | 41,283 | $ 45,421 |
Current-period write-offs | ||
2023 | 0 | |
2022 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
Total | 0 | |
Current-period recoveries | 0 | |
Current-period net write-offs | 0 | |
1-2 internal grade | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 8,134 | |
2022 | 99 | |
2020 | 5,204 | |
2019 | 7,802 | |
2018 | 13,456 | |
Total | 34,695 | |
3-4 internal grade | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 6,588 | |
Total | 6,588 | |
5 internal grade | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
Total | 0 | |
6 internal grade | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
Total | 0 | |
7 internal grade | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
Total | $ 0 |
Fair Value of Financial Inst_11
Fair Value of Financial Instruments - Rollforward of Allowance for Mortgage Loan Losses (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Rollforward of allowance for mortgage loan losses: | |
Beginning balance, January 1, 2024 | $ 55 |
Current-period provision for expected credit losses | 0 |
Write-off charged against the allowance, if any | 0 |
Recoveries of amounts previously written off, if any | (10) |
Ending balance of the allowance for mortgage loan losses, June 30, 2024 | $ 45 |
Reserves for Losses and Loss _3
Reserves for Losses and Loss Settlement Expenses (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Gross liability for losses and loss settlement expenses at beginning of year | $ 1,638,755 | $ 1,497,274 |
Ceded losses and loss settlement expenses | (191,640) | (146,875) |
Net liability for losses and loss settlement expenses at beginning of year | 1,447,115 | 1,350,399 |
Losses and loss settlement expenses incurred for claims occurring during | ||
Current year | 378,121 | 701,664 |
Prior years | 2,850 | 67,750 |
Total incurred | 380,971 | 769,414 |
Losses and loss settlement expense payments for claims occurring during | ||
Current year | 61,548 | 191,899 |
Prior years | 216,453 | 480,800 |
Total paid | 278,001 | 672,699 |
Net liability for losses and loss settlement expenses at end of period | 1,550,085 | 1,447,115 |
Ceded losses and loss settlement expenses | 205,654 | 191,640 |
Gross liability for losses and loss settlement expenses at end of period | $ 1,755,739 | $ 1,638,755 |
Reserves for Losses and Loss _4
Reserves for Losses and Loss Settlement Expenses - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Insurance [Abstract] | ||
Reserve development | $ 2,850 | $ 67,750 |
Employee Benefits (Details)
Employee Benefits (Details) - Pension Plan - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Net periodic benefit cost | ||||
Service cost | $ 822 | $ 954 | $ 1,643 | $ 1,909 |
Interest cost | 2,478 | 2,526 | 4,957 | 5,053 |
Expected return on plan assets | (3,635) | (3,756) | (7,271) | (7,513) |
Amortization of prior service credit | (724) | (820) | (1,448) | (1,640) |
Amortization of net loss | 0 | 52 | 0 | 104 |
Net periodic benefit cost | $ (1,059) | $ (1,044) | $ (2,118) | $ (2,087) |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Dec. 31, 2023 | Dec. 31, 2008 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 1,555 | $ 1,100 | |||
Stock-based compensation expense to be recognized through results of operations | $ 11,158 | $ 11,158 | |||
Employee Stock Award Plan-2008 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares available for issuance (in shares) | 938,814 | 938,814 | 1,150,834 | 1,900,000 | |
Employee Stock Award Plan-2008 | Options Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expiration period | 10 years | ||||
Employee Stock Award Plan-2008 | Three years | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights percentage | 20% | ||||
Employee Stock Award Plan-2008 | Three years | Restricted Stock Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Employee Stock Award Plan-2008 | Five years | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights percentage | 33.30% | ||||
Employee Stock Award Plan-2008 | Five years | Restricted Stock Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 5 years | ||||
Director Plan - 2005 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares available for issuance (in shares) | 71,410 | 71,410 | 103,600 | 300,000 |
Stock-Based Compensation - Acti
Stock-Based Compensation - Activity in the Stock Plan (Details) - shares | 6 Months Ended | 186 Months Ended |
Jun. 30, 2024 | Jun. 30, 2024 | |
Employee Stock Award Plan-2008 | ||
Share-based Compensation Arrangement by Share-based Payment Award Available for Grant [Roll Forward] | ||
Beginning balance (in shares) | 1,150,834 | 1,900,000 |
Additional shares authorized (in shares) | 0 | 2,150,000 |
Number of awards granted (in shares) | (374,839) | (4,348,696) |
Number of awards forfeited or expired (in shares) | 162,819 | 1,237,510 |
Ending balance (in shares) | 938,814 | 938,814 |
Number of unrestricted stock awards granted (in shares) | 374,839 | 4,348,696 |
Employee Stock Award Plan-2008 | Options Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award Available for Grant [Roll Forward] | ||
Number of option awards exercised (in shares) | 0 | 1,537,336 |
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) | 34,881 | 335,317 |
Director Plan - 2005 | ||
Share-based Compensation Arrangement by Share-based Payment Award Available for Grant [Roll Forward] | ||
Beginning balance (in shares) | 103,600 | 300,000 |
Additional shares authorized (in shares) | 0 | 150,000 |
Number of awards granted (in shares) | (32,190) | (418,808) |
Number of awards forfeited or expired (in shares) | 0 | 40,218 |
Ending balance (in shares) | 71,410 | 71,410 |
Number of unrestricted stock awards granted (in shares) | 32,190 | 418,808 |
Director Plan - 2005 | Options Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award Available for Grant [Roll Forward] | ||
Number of option awards exercised (in shares) | 0 | 152,336 |
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) | 31,380 | 169,336 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-based Compensation Expense (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Share-Based Payment Arrangement [Abstract] | |
2024 | $ 3,155 |
2025 | 4,707 |
2026 | 2,746 |
2027 | 550 |
2028 | 0 |
Total | $ 11,158 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Basic and Diluted Earnings per Share [Line Items] | ||||
Net income (loss) | $ (2,735) | $ (56,382) | $ 10,767 | $ (55,688) |
Weighted-average common shares outstanding, basic (in shares) | 25,314,456 | 25,249,073 | 25,294,698 | 25,234,834 |
Weighted-average common shares outstanding, diluted (in shares) | 25,314,456 | 25,249,073 | 25,895,481 | 25,234,834 |
Earnings (loss) per common share, basic (in dollars per share) | $ (0.11) | $ (2.23) | $ 0.43 | $ (2.21) |
Earnings (loss) per common share, diluted (in dollars per share) | $ (0.11) | $ (2.23) | $ 0.42 | $ (2.21) |
Awards excluded from diluted earnings per share calculation (in shares) | 662,378 | 826,259 | 662,378 | 822,692 |
Restricted Stock Unit Awards | ||||
Basic and Diluted Earnings per Share [Line Items] | ||||
Add dilutive effect of share-based awards outstanding (in shares) | 0 | 0 | 599,982 | 0 |
Stock Options | ||||
Basic and Diluted Earnings per Share [Line Items] | ||||
Add dilutive effect of share-based awards outstanding (in shares) | 0 | 0 | 801 | 0 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | 6 Months Ended | |||
Jun. 30, 2024 | May 31, 2024 | Jun. 30, 2023 | Dec. 15, 2020 | |
Line of Credit Facility [Line Items] | ||||
Interest expense | $ 1,719,000 | |||
Surplus Notes | ||||
Line of Credit Facility [Line Items] | ||||
Principal amount | $ 50,000,000 | |||
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 | |||
Senior Notes | ||||
Line of Credit Facility [Line Items] | ||||
Principal amount | $ 70,000,000 | |||
Interest expense | 540,000 | |||
Applicable Interest Rate | 9% | |||
Debt issuance costs, gross | $ 3,050,000 | |||
Federal Home Loan Bank Advances | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 452,700,000 | |||
Outstanding balance on credit facility | $ 0 | $ 0 |
Debt - Interest Payable (Detail
Debt - Interest Payable (Details) - Surplus Notes | Jun. 30, 2024 |
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% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | $ 736,766 | $ 751,795 | $ 733,745 | $ 740,114 |
Change in accumulated other comprehensive income (loss) before reclassifications | (5,794) | (16,143) | (15,155) | (2,568) |
Reclassification adjustments from accumulated other comprehensive income (loss) | 970 | 161 | 2,996 | 629 |
Ending balance | 726,595 | 676,366 | 726,595 | 676,366 |
Total | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (58,292) | (73,453) | (50,957) | (87,496) |
Ending balance | (63,116) | $ (89,435) | (63,116) | $ (89,435) |
Net unrealized gain (loss) on investments | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (73,707) | (66,967) | ||
Change in accumulated other comprehensive income (loss) before reclassifications | (5,257) | (14,023) | ||
Reclassification adjustments from accumulated other comprehensive income (loss) | 970 | 2,996 | ||
Ending balance | (77,994) | (77,994) | ||
Liability for underfunded employee benefit costs | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | 15,438 | 16,010 | ||
Change in accumulated other comprehensive income (loss) before reclassifications | (572) | (1,144) | ||
Reclassification adjustments from accumulated other comprehensive income (loss) | 0 | 0 | ||
Ending balance | 14,866 | 14,866 | ||
Foreign currency translation adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (23) | 0 | ||
Change in accumulated other comprehensive income (loss) before reclassifications | 35 | 12 | ||
Reclassification adjustments from accumulated other comprehensive income (loss) | 0 | 0 | ||
Ending balance | $ 12 | $ 12 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Jun. 30, 2024 lease_agreement |
Lessee, Lease, Description [Line Items] | |
Number of lease arrangements | 6 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms | 1 year |
Lease extension option terms | 6 months |
Term of contract | 2 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms | 7 years |
Lease extension option terms | 5 years |
Term of contract | 9 years |
Leases - Components of Operatin
Leases - Components of Operating Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Components of lease expense: | ||||
Operating lease expense | $ 2,354 | $ 2,210 | $ 4,754 | $ 4,397 |
Less lessor income | 145 | 133 | 291 | 266 |
Less sublease income | 133 | 126 | 266 | 160 |
Net lease expense | 2,076 | 1,951 | 4,197 | 3,971 |
Cash flows information related to leases: | ||||
Operating cash outflow from operating leases | $ 2,080 | $ 1,991 | $ 4,184 | $ 4,043 |