Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 09, 2015 | Jun. 30, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | FIRST ACCEPTANCE CORP /DE/ | ||
Entity Central Index Key | 1017907 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 41,015,927 | ||
Entity Public Float | $38,151,194 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Investments, available-for-sale at fair value (amortized cost of $119,119 and $126,873, respectively) | $125,085 | $130,248 |
Cash and cash equivalents | 102,429 | 72,033 |
Premiums and fees receivable, net of allowance of $392 and $311, respectively | 56,344 | 46,228 |
Deferred tax asset, net | 16,521 | |
Other investments | 10,530 | 7,513 |
Other assets | 6,234 | 6,471 |
Property and equipment, net | 3,173 | 3,512 |
Deferred acquisition costs | 3,459 | 2,902 |
Identifiable intangible assets | 4,800 | 4,800 |
TOTAL ASSETS | 328,575 | 273,707 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Loss and loss adjustment expense reserves | 96,613 | 84,286 |
Unearned premiums and fees | 67,942 | 55,983 |
Debentures payable | 40,341 | 40,301 |
Other liabilities | 16,715 | 16,205 |
Total liabilities | 221,611 | 196,775 |
Stockholders’ equity: | ||
Preferred stock, $.01 par value, 10,000 shares authorized | ||
Common stock, $.01 par value, 75,000 shares authorized; 41,016 and 40,983 shares issued and outstanding, respectively | 410 | 410 |
Additional paid-in capital | 457,242 | 456,993 |
Accumulated other comprehensive income, net of tax of $923 and $0, respectively | 5,090 | 3,375 |
Accumulated deficit | -355,778 | -383,846 |
Total stockholders’ equity | 106,964 | 76,932 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $328,575 | $273,707 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ||
Amortized cost of investments | $119,119 | $126,873 |
Allowance for premiums and fees receivable | 392 | 311 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 41,016,000 | 40,983,000 |
Common stock, shares outstanding | 41,016,000 | 40,983,000 |
Accumulated Other Comprehensive Income | $923 | $0 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues: | |||
Premiums earned | $218,315 | $199,700 | $185,644 |
Commission and fee income | 39,733 | 35,125 | 32,574 |
Investment income | 5,123 | 5,716 | 6,599 |
Net realized gains (losses) on investments, available-for-sale (includes $23, $(29) and $3,242, respectively, of accumulated other comprehensive income reclassifications for unrealized gains (losses)) | 23 | -29 | 3,242 |
Total revenues | 263,194 | 240,512 | 228,059 |
Costs and expenses: | |||
Losses and loss adjustment expenses | 161,302 | 142,839 | 148,223 |
Insurance operating expenses | 87,515 | 82,822 | 82,127 |
Other operating expenses | 996 | 987 | 922 |
Stock-based compensation | 185 | 243 | 604 |
Depreciation and amortization | 1,767 | 2,053 | 2,203 |
Interest expense | 1,706 | 1,738 | 3,025 |
Total costs and expenses | 253,471 | 230,682 | 237,104 |
Income (loss) before income taxes | 9,723 | 9,830 | -9,045 |
Provision (benefit) for income taxes (includes $8, $(10) and $1,135, respectively, of income tax expense/benefit from reclassification items) | -18,345 | 650 | -5 |
Net income (loss) | 28,068 | 9,180 | -9,040 |
Net income (loss) per share: | |||
Basic | $0.68 | $0.22 | ($0.22) |
Diluted | $0.68 | $0.22 | ($0.22) |
Number of shares used to calculate net income (loss) per share: | |||
Basic | 40,985 | 40,930 | 40,861 |
Diluted | 41,283 | 41,092 | 40,861 |
Reconciliation of net income (loss) to comprehensive income (loss): | |||
Net income (loss) | 28,068 | 9,180 | -9,040 |
Unrealized change in investments (net of tax of $923, $0 and $0, respectively) | 1,715 | -5,329 | -1,546 |
Comprehensive income (loss) | 29,783 | 3,851 | -10,586 |
Detail of net realized gains (losses) on investments, available-for-sale: | |||
Net realized gains on sales and redemptions | 23 | 32 | 3,265 |
OTTI charges reclassified from other comprehensive income (loss) | -61 | -23 | |
OTTI charges recognized in net income (loss) | -61 | -23 | |
Net realized gains (losses) on investments, available-for-sale | $23 | ($29) | $3,242 |
CONSOLIDATED_STATEMENTS_OF_OPE1
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||
Accumulated other comprehensive income reclassification for unrealized gains (losses) | $23 | ($29) | $3,242 |
Income tax expense from reclassification items | $8 | ($10) | $1,135 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] |
In Thousands | |||||
Beginning balance at Dec. 31, 2011 | $82,729 | $409 | $456,056 | $10,250 | ($383,986) |
Beginning balance, Shares at Dec. 31, 2011 | 40,928 | ||||
Net income | -9,040 | -9,040 | |||
Net unrealized change on investments (net of tax of $0) | -1,546 | -1,546 | |||
Forfeitures and repurchases of restricted common stock, Value | -6 | -6 | |||
Forfeitures and repurchases of restricted common stock, Shares | -6 | ||||
Stock-based compensation, Value | 604 | 604 | |||
Issuance of shares under Employee Stock Purchase Plan, Value | 52 | 1 | 51 | ||
Issuance of shares under Employee Stock Purchase Plan, Shares | 40 | ||||
Ending balance at Dec. 31, 2012 | 72,793 | 410 | 456,705 | 8,704 | -393,026 |
Ending balance, Shares at Dec. 31, 2012 | 40,962 | ||||
Net income | 9,180 | 9,180 | |||
Net unrealized change on investments (net of tax of $0) | -5,329 | -5,329 | |||
Forfeitures and repurchases of restricted common stock, Value | -7 | -1 | -6 | ||
Forfeitures and repurchases of restricted common stock, Shares | -19 | ||||
Stock-based compensation, Value | 243 | 243 | |||
Stock-based compensation, Shares | 5 | ||||
Issuance of shares under Employee Stock Purchase Plan, Value | 52 | 1 | 51 | ||
Issuance of shares under Employee Stock Purchase Plan, Shares | 35 | ||||
Ending balance at Dec. 31, 2013 | 76,932 | 410 | 456,993 | 3,375 | -383,846 |
Ending balance, Shares at Dec. 31, 2013 | 40,983 | 40,983 | |||
Net income | 28,068 | 28,068 | |||
Net unrealized change on investments (net of tax of $0) | 1,715 | 1,715 | |||
Forfeitures and repurchases of restricted common stock, Value | -10 | -10 | |||
Forfeitures and repurchases of restricted common stock, Shares | -4 | ||||
Stock-based compensation, Value | 185 | 185 | |||
Stock-based compensation, Shares | 6 | ||||
Issuance of shares under Employee Stock Purchase Plan, Value | 74 | 74 | |||
Issuance of shares under Employee Stock Purchase Plan, Shares | 31 | ||||
Ending balance at Dec. 31, 2014 | $106,964 | $410 | $457,242 | $5,090 | ($355,778) |
Ending balance, Shares at Dec. 31, 2014 | 41,016 | 41,016 |
CONSOLIDATED_STATEMENTS_OF_STO1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) (Accumulated Other Comprehensive Income (Loss) [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Tax on unrealized change on investments | $923 | $0 | $0 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income (loss) | $28,068 | $9,180 | ($9,040) |
Adjustments to reconcile net income (loss) to cash used in operating activities: | |||
Depreciation and amortization | 1,767 | 2,053 | 2,203 |
Stock-based compensation | 185 | 243 | 604 |
Deferred income taxes | -19,223 | -2 | 3 |
Other-than-temporary impairment on investment securities | 61 | 23 | |
Net realized gains on sales and redemptions of investments | -23 | -32 | -3,265 |
Investment income and equity in earnings from other investments | -85 | -399 | |
Other | 224 | 280 | 330 |
Change in: | |||
Premiums and fees receivable | -10,197 | -937 | -3,915 |
Loss and loss adjustment expense reserves | 12,327 | 5,026 | 9,824 |
Unearned premiums and fees | 11,959 | 891 | 4,628 |
Other | 2,007 | 1,391 | 2,409 |
Net cash provided by operating activities | 27,009 | 17,755 | 3,804 |
Cash flows from investing activities: | |||
Purchases of investments, available-for-sale | -12,314 | -18,616 | -33,174 |
Purchases of other investments | -3,080 | -7,139 | |
Maturities and redemptions of investments, available-for-sale | 19,941 | 21,769 | 41,969 |
Sales of investments, available-for-sale | 26,343 | ||
Capital expenditures | -1,427 | -914 | -3,603 |
Other | 193 | 23 | -1 |
Net cash provided by (used in) investing activities | 3,313 | -4,877 | 31,534 |
Cash flows from financing activities: | |||
Net proceeds from issuance of common stock | 74 | 51 | 52 |
Other | -37 | ||
Net cash provided by financing activities | 74 | 51 | 15 |
Net increase in cash and cash equivalents | 30,396 | 12,929 | 35,353 |
Cash and cash equivalents, beginning of year | 72,033 | 59,104 | 23,751 |
Cash and cash equivalents, end of year | $102,429 | $72,033 | $59,104 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Summary of Significant Accounting Policies | ||
1 | Summary of Significant Accounting Policies | |
General | ||
First Acceptance Corporation (the “Company”) is a holding company based in Nashville, Tennessee with operating subsidiaries whose primary operations include the selling, servicing and underwriting of non-standard personal automobile insurance and related products. The Company writes non-standard personal automobile insurance in 12 states and is licensed as an insurer in 13 additional states. The Company issues policies of insurance through three wholly-owned subsidiaries: First Acceptance Insurance Company, Inc., First Acceptance Insurance Company of Georgia, Inc. and First Acceptance Insurance Company of Tennessee, Inc. (collectively, the “Insurance Companies”). | ||
Basis of Consolidation and Reporting | ||
The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries which are all wholly owned. The accounts of First Acceptance Statutory Trust I (“FAST I”) are not consolidated since it does not meet the requirements for consolidation of FASB ASC 810, Consolidation (see Note 10). These financial statements have been prepared in conformity with U.S. generally accepted accounting principles. All intercompany accounts and transactions have been eliminated in consolidation. | ||
Use of Estimates | ||
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. It also requires disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported revenues and expenses during the period. Actual results could differ from those estimates. | ||
Investments | ||
Investments, available-for-sale at fair value, include bonds with fixed principal payment schedules and mortgage-backed securities which are amortized using the retrospective method. These securities and investments in mutual funds are carried at fair value with the corresponding unrealized appreciation or depreciation, net of deferred income taxes, reported in other comprehensive income (loss). | ||
Premiums and discounts on collateralized mortgage obligations (“CMOs”) are amortized over a period based on estimated future principal payments, including prepayments. Prepayment assumptions are reviewed periodically and adjusted to reflect actual prepayments and changes in expectations. The most significant determinants of prepayments are the difference between interest rates on the underlying mortgages and the current mortgage loan rates and the structure of the security. Other factors affecting prepayments include the size, type and age of underlying mortgages, the geographic location of the mortgaged properties and the credit worthiness of the borrowers. Variations from anticipated prepayments will affect the life and yield of these securities. | ||
Investment securities are exposed to various risks such as interest rate, market and credit risk. Fair values of securities fluctuate based on changing market conditions. Significant changes in market conditions could materially affect portfolio value in the near term. Management reviews investments for impairment on a quarterly basis. Fair values of investments are based on prices quoted in the most active market for each security. If quoted prices are not available, fair value is estimated based on the fair value of comparable securities, discounted cash flow models or similar methods. Any decline in the fair value of any available-for-sale security below cost that is deemed to be other-than-temporary would result in a reduction in the amortized cost of the security. | ||
If management can assert that it does not intend to sell an impaired fixed maturity security and it is more likely than not that it will not have to sell the security before recovery of its amortized cost basis, then an entity must separate other-than-temporary impairments (“OTTI”) into the following two components: (i) the amount related to credit losses (charged against income) and (ii) the amount related to all other factors (recorded in other comprehensive income). The credit-related portion of an OTTI is measured by comparing a security’s amortized cost to the present value of its current expected cash flows discounted at its effective yield prior to the impairment charge. If management intends to sell an impaired security, or it is more likely than not that it will be required to sell the security before recovery, an impairment charge is required to reduce the amortized cost of that security to fair value. | ||
Realized gains and losses on sales and redemptions of securities are computed based on specific identification. | ||
Cash and Cash Equivalents | ||
Cash and cash equivalents consist of bank demand deposits and highly-liquid investments including overnight collateralized repurchase agreements. All investments with maturities of three months or less at the date of purchase are considered cash equivalents. | ||
Other Investments | ||
Other investments consist of limited partnership interests and an investment in the common stock of a real estate investment trust (“REIT”). Limited partnership interests are recorded at net asset value or the equity method of accounting if the Company is deemed to have significant influence as a result of its ownership percentage. Based on the underlying investments of the limited partnerships, their carrying value approximates fair value. Valuations are based upon the GAAP financial statements of the partnerships which are required to be audited annually. The common stock of the REIT is recorded at a fair value with the corresponding unrealized appreciation or depreciation, net of deferred income taxes, reported in other comprehensive income (loss). | ||
The change in net asset value of limited partnership interests and any dividends paid by the REIT are recorded in investment income in the consolidated statements of comprehensive income (loss). | ||
Revenue Recognition | ||
Insurance premiums earned include policy and renewal fees and are recognized on a pro-rata basis over the respective terms of the policies. Written premiums are recorded as of the effective date of the policies for the full policy premium, although most policyholders elect to pay on a monthly installment basis. Premiums and fees are generally collected in advance of providing risk coverage, minimizing the Company’s exposure to credit risk. Premiums receivable are recorded net of an estimated allowance for uncollectible amounts. | ||
Commission and fee income includes installment fees recognized when billed, commissions and fees from ancillary products recognized on a pro-rata basis over the respective terms of the contracts, and commissions and related policy fees, written for third-party insurance companies, recognized, at the date the customer is initially billed or as of the effective date of the insurance policy, whichever is later. | ||
Income Taxes | ||
Income taxes are accounted for under the liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | ||
A valuation allowance for the deferred taxes is established based upon management’s estimate of whether it is more likely than not that the Company would not realize tax benefits in future periods to the full extent available. Changes in the valuation allowance are recognized in income during the period in which the circumstances that cause such a change in management’s estimate occur. | ||
The Company accounts for income tax uncertainties under the provisions of FASB ASC 740, Income Taxes. The Company has recognized no additional liability or reduction in deferred tax assets for unrecognized tax benefits at December 31, 2014 and 2013. Any interest and penalties incurred in connection with income taxes are recorded as a component of the provision for income taxes. The Company is generally not subject to U.S. federal, state or local income tax examinations by tax authorities for taxable years prior to 2010. | ||
Property and Equipment | ||
Property and equipment are initially recorded at cost. Depreciation is provided over the estimated useful lives of the assets (generally ranging from three to seven years) using the straight-line method. Leasehold improvements are amortized over the shorter of the lives of the respective leases or the service lives of the improvements. Repairs and maintenance are charged to expense as incurred. Equipment under capitalized lease obligations is stated at the present value of the minimum lease payments at the beginning of the lease term. | ||
Foreclosed Real Estate Held for Sale | ||
Foreclosed real estate held for sale is recorded at the lower of cost or fair value less estimated costs to sell. The Company periodically reviews its portfolio of foreclosed real estate held for sale using current information including (i) independent appraisals, (ii) general economic factors affecting the area where the property is located, (iii) recent sales activity and asking prices for comparable properties and (iv) costs to sell and/or develop that would serve to lower the expected proceeds from the disposal of the real estate. Gains (losses) realized on liquidation are recorded directly to operations and included in revenues. Foreclosed real estate held for sale assets of $0.8 million at December 31, 2014 and 2013 are included within other assets in the accompanying consolidated balance sheets. | ||
Deferred Acquisition Costs | ||
Deferred acquisition costs include premium taxes and other variable underwriting and direct sales costs incurred in connection with writing successful new and renewal business. These costs are deferred and amortized over the policy period in which the related premiums are earned, to the extent that such costs are deemed recoverable from future unearned premiums and anticipated investment income. Advertising costs are expensed when incurred and are not a part of deferred acquisition costs. Amortization expense for the years ended December 31, 2014, 2013 and 2012 was $11.4 million, $11.1 million and $11.4 million, respectively, and is included within insurance operating expenses in the accompanying consolidated statements of operations and comprehensive income (loss). | ||
Identifiable Intangible Assets | ||
Identifiable intangible assets are attributable to the Company’s insurance operations and were initially recorded at their estimated fair values at the date of acquisition. Identifiable intangible assets, primarily comprised of trade names, having an indefinite useful life, are not amortized for financial statement purposes. The Company performs required annual impairment tests of its identifiable intangible assets as of June 30th of each fiscal year. In the event that facts and circumstances indicate that the identifiable intangible assets may be impaired, an interim impairment test would be required. | ||
The Company follows the guidelines of ASU 2012-02, Intangibles — Goodwill and Other (Topic 350), which allows companies to waive comparing the fair value of indefinite-lived intangible assets to their carrying amounts in assessing the recoverability of these assets if, based on qualitative factors, it is more likely than not that the fair value of the indefinite-lived intangible assets is greater than their carrying amounts. | ||
Loss and Loss Adjustment Expense Reserves | ||
Loss and loss adjustment expense reserves are undiscounted and represent case-basis estimates of reported losses and estimates based on certain actuarial assumptions regarding the past experience of reported losses, including an estimate of losses incurred but not reported. Management believes that the loss and loss adjustment reserves are adequate to cover the ultimate associated liability. However, such estimates may be more or less than the amount ultimately paid when the claims are finally settled. | ||
Recent Accounting Pronouncements | ||
In October 2010, the FASB issued Accounting Standards Update (“ASU”) No. 2010-26, Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts (a consensus of the FASB Emerging Issues Task Force) (Topic 944), which clarifies what costs should be deferred by insurance companies when issuing or renewing insurance contracts. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2011. The Company adopted this standard on a prospective basis on January 1, 2012 and, in connection therewith, recognized additional expense of $0.4 million over the first six months of 2012, consistent with the Company’s insurance policy terms and estimated deferred acquisition costs amortization period. | ||
In May 2011, the FASB issued ASU No. 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs, which amends certain measurement and disclosure requirements related to fair value measurements to improve consistency with international reporting standards. The Company adopted the provisions of this guidance in the quarter ended March 31, 2012. The adoption of this guidance did not have an impact on the Company’s financial position or results of operations. | ||
In June 2011, the FASB issued ASU No. 2011-05, Presentation of Comprehensive Income, which requires a company to present components of net income and other comprehensive income in one continuous statement or in two separate, but consecutive statements. There are no changes to the components that are recognized in net income or other comprehensive income under current GAAP. The Company adopted the provisions of this guidance in the quarter ended March 31, 2012. The adoption of this guidance did not have an impact on the Company’s financial position or results of operations, other than the presentation thereof. | ||
In September 2011, the FASB issued ASU 2011-08, Intangibles — Goodwill and Other (Topic 350), which allows companies to waive comparing the fair value of a reporting unit to its carrying amount in assessing the recoverability of goodwill if, based on qualitative factors, it is more likely than not that the fair value of a reporting unit is greater than its carrying amount. The Company adopted the provisions of this guidance in the quarter ended March 31, 2012. The adoption of this guidance did not have an impact on the Company’s financial position or results of operations. | ||
In July 2012, the FASB issued ASU 2012-02, Intangibles — Goodwill and Other (Topic 350), which allows companies to waive comparing the fair value of indefinite-lived intangible assets to their carrying amounts in assessing the recoverability of these assets if, based on qualitative factors, it is more likely than not that the fair value of the indefinite-lived intangible assets is greater than their carrying amounts. The Company early adopted the provisions of this guidance in the quarter ended June 30, 2012. The adoption of this guidance did not have an impact on the Company’s financial position or results of operations. | ||
In February 2013, the FASB issued ASU No. 2013-02, Presentation of Comprehensive Income, which requires a company to provide information about the amounts reclassified out of accumulated other comprehensive income by component. There are no changes to the components that are recognized in net income or other comprehensive income under current GAAP. The Company adopted the provisions of this guidance in the quarter ended March 31, 2013. The adoption of this guidance did not have an impact on the Company’s financial position or results of operations, other than the presentation thereof. | ||
In May 2014, the FASB and the International Accounting Standards Board (“IASB”) jointly issued a new revenue recognition standard, ASU No. 2014-09, “Revenue from Contracts with Customers”, that will supersede virtually all revenue recognition guidance in GAAP and International Financial Reporting Standards (“IFRS”). This guidance has an effective date for public companies for annual and interim periods beginning after December 15, 2016, with early adoption not permitted. The standard is intended to increase comparability across industries and jurisdictions. The underlying principle of the new standard is that a business or other organization will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects what it expects in exchange for the goods or services. The new standard will not change accounting guidance for insurance contracts. However, the Company is currently evaluating this guidance as it relates to non-insurance arrangements and any impact it will have on future consolidated financial statements. At this time the impact is unknown. | ||
In June 2014, the FASB made a decision to require insurance companies to make additional disclosures about short-term duration contracts. This guidance has an effective date for public companies for annual reporting periods beginning after December 15, 2014 and interim reporting periods beginning after December 15, 2015, with early adoption permitted. The Company believes that it will be reasonably able to comply with these requirements. | ||
Supplemental Cash Flow Information | ||
During the years ended December 31, 2014, 2013 and 2012, the Company paid $0.7 million, $0.5 million and $0.2 million, respectively, in income taxes and $1.7 million, $1.7 million and $3.0 million, respectively, in interest. | ||
Basic and Diluted Net Income (Loss) Per Share | ||
Basic net income (loss) per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares, while diluted net income (loss) per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of such common shares and dilutive share equivalents. Dilutive share equivalents result from the assumed exercise of employee stock options and vesting of restricted common stock and are calculated using the treasury stock method. | ||
Fair_Value
Fair Value | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value | 2 | Fair Value | |||||||||||||||
Fair value is the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are generally based upon observable and unobservable inputs. Observable inputs are based on market data from independent sources, while unobservable inputs reflect the Company’s view of market assumptions in the absence of observable market information. All assets and liabilities that are carried at fair value are classified and disclosed in one of the following categories: | |||||||||||||||||
Level 1 - | Quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||
Level 2 - | Quoted market prices for similar assets or liabilities in active markets; quoted prices by independent pricing services for identical or similar assets or liabilities in markets that are not active; and valuations, using models or other valuation techniques that use observable market data. All significant inputs are observable, or derived from observable information in the marketplace, or are supported by observable levels at which transactions are executed in the market place. | ||||||||||||||||
Level 3 - | Instruments that use non-binding broker quotes or model driven valuations that do not have observable market data or those that are estimated based on an ownership interest to which a proportionate share of net assets is attributed. | ||||||||||||||||
The Company categorizes valuation methods used in its identifiable intangible assets impairment tests as Level 3. To determine the fair value of acquired trademarks and trade names, the Company uses the relief-from-royalty method, which requires the Company to estimate the future revenue for the related brands, the appropriate royalty rate and the weighted average cost of capital. The Company also categorizes valuation methods used to fair value its investments in other investments as Level 3, since these investments have redemption and transfer restrictions and are therefore not readily marketable. | |||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
The carrying values and fair values of certain of the Company’s financial instruments were as follows (in thousands). | |||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||
Value | Value | Value | Value | ||||||||||||||
Assets: | |||||||||||||||||
Investments, available-for-sale | $ | 125,085 | $ | 125,085 | $ | 130,248 | $ | 130,248 | |||||||||
Other investments | 10,530 | 10,530 | 7,513 | 7,513 | |||||||||||||
Liabilities: | |||||||||||||||||
Debentures payable | 40,341 | 19,606 | 40,301 | 15,006 | |||||||||||||
The fair values as presented represent the Company’s best estimates and may not be substantiated by comparisons to independent markets. The fair value of the debentures payable is categorized as Level 3, since it was based on current market rates offered for debt with similar risks and maturities an unobservable input categorized as Level 3. Carrying values of certain financial instruments, such as cash and cash equivalents and premiums and fees receivable, approximate fair value due to the short-term nature of the instruments and are not required to be disclosed. Therefore, the aggregate of the fair values presented in the preceding table does not purport to represent the Company’s underlying value. | |||||||||||||||||
The Company holds available-for-sale investments and other investments. Other investments include limited partnership interests which are carried at either net asset value or under the equity method which approximate fair value, and an investment in the common stock of a REIT. The following tables present the fair-value measurements for each major category of assets that are measured on a recurring basis (in thousands). | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
December 31, 2014 | Total | Quoted Prices | Significant | Significant | |||||||||||||
in Active | Other | Unobservable | |||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||
Assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Fixed maturities, available-for-sale: | |||||||||||||||||
U.S. government and agencies | $ | 8,290 | $ | 8,290 | $ | — | $ | — | |||||||||
State | 725 | — | 725 | — | |||||||||||||
Political subdivisions | 506 | — | 506 | — | |||||||||||||
Revenue and assessment | 16,360 | — | 16,360 | — | |||||||||||||
Corporate bonds | 75,119 | — | 75,119 | — | |||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||
Agency backed | 4,807 | — | 4,807 | — | |||||||||||||
Non-agency backed – residential | 4,137 | — | 4,137 | — | |||||||||||||
Non-agency backed – commercial | 3,078 | — | 3,078 | — | |||||||||||||
Total fixed maturities, available-for-sale | 113,022 | 8,290 | 104,732 | — | |||||||||||||
Preferred stock, available-for-sale | 1,767 | 1,767 | — | — | |||||||||||||
Mutual funds, available-for-sale | 10,296 | 10,296 | — | — | |||||||||||||
Total investments, available-for-sale | 125,085 | 20,353 | 104,732 | — | |||||||||||||
Other investments | 10,530 | — | — | 10,530 | |||||||||||||
Cash and cash equivalents | 102,429 | 102,429 | — | — | |||||||||||||
Total | $ | 238,044 | $ | 122,782 | $ | 104,732 | $ | 10,530 | |||||||||
Fair Value Measurements Using | |||||||||||||||||
December 31, 2013 | Total | Quoted Prices | Significant | Significant | |||||||||||||
in Active | Other | Unobservable | |||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||
Assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Fixed maturities, available-for-sale: | |||||||||||||||||
U.S. government and agencies | $ | 12,485 | $ | 12,485 | $ | — | $ | — | |||||||||
State | 736 | — | 736 | — | |||||||||||||
Political subdivisions | 1,652 | — | 1,652 | — | |||||||||||||
Revenue and assessment | 13,618 | — | 13,618 | — | |||||||||||||
Corporate bonds | 73,325 | — | 73,325 | — | |||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||
Agency backed | 7,514 | — | 7,514 | — | |||||||||||||
Non-agency backed – residential | 4,660 | — | 4,660 | — | |||||||||||||
Non-agency backed – commercial | 3,943 | — | 3,943 | — | |||||||||||||
Total fixed maturities, available-for-sale | 117,933 | 12,485 | 105,448 | — | |||||||||||||
Preferred stock, available-for-sale | 1,578 | 1,578 | — | — | |||||||||||||
Mutual funds, available-for-sale | 10,737 | 10,737 | — | — | |||||||||||||
Total investments, available-for-sale | 130,248 | 24,800 | 105,448 | — | |||||||||||||
Other investments | 7,513 | — | — | 7,513 | |||||||||||||
Cash and cash equivalents | 72,033 | 72,033 | — | — | |||||||||||||
Total | $ | 209,794 | $ | 96,833 | $ | 105,448 | $ | 7,513 | |||||||||
The fair values of the Company’s investments are determined by management after taking into consideration available sources of data. All of the portfolio valuations classified as Level 1 or Level 2 in the above tables are priced exclusively by utilizing the services of independent pricing sources using observable market data. The Level 2 classified security valuations are obtained from a single independent pricing service. The Level 3 classified securities in the table above consist of other investments for which fair value is estimated based on the Company’s ownership interest. There were no transfers between Level 1 and Level 2 for years ended December 31, 2014 and 2013. The Company’s policy is to recognize transfers between levels at the end of the reporting period based on specific identification. The Company has not made any adjustments to the prices obtained from the independent pricing sources. | |||||||||||||||||
The Company has reviewed the pricing techniques and methodologies of the independent pricing service for Level 2 investments and believes that its policies adequately consider market activity, either based on specific transactions for the security valued or based on modeling of securities with similar credit quality, duration, yield and structure that were recently traded. The Company monitored security-specific valuation trends and has made inquiries with the pricing service about material changes or the absence of expected changes to understand the underlying factors and inputs and to validate the reasonableness of the pricing. | |||||||||||||||||
The following table represents the quantitative disclosure for those assets classified as Level 3 during the year ended December 31, 2014 (in thousands). | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Significant Unobservable Inputs (Level 3) | |||||||||||||||||
Limited partnership interests | |||||||||||||||||
carried at | |||||||||||||||||
Net Asset | Equity | Common Stock at Fair Value | Total | ||||||||||||||
Value | Method | ||||||||||||||||
Balance at December 31, 2013 | $ | 3,314 | $ | 4,199 | $ | — | $ | 7,513 | |||||||||
Gains included in net income | 81 | 4 | — | 85 | |||||||||||||
Gains included in comprehensive income | — | — | 47 | 47 | |||||||||||||
Investments and capital calls | 2,180 | — | 900 | 3,080 | |||||||||||||
Distributions received | (195 | ) | — | — | (195 | ) | |||||||||||
Transfers into and out of Level 3 | — | — | — | — | |||||||||||||
Balance at December 31, 2014 | $ | 5,380 | $ | 4,203 | $ | 947 | $ | 10,530 | |||||||||
Investments
Investments | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Investments Debt And Equity Securities [Abstract] | |||||||||||||||||||||||||
Investments | 3 | Investments | |||||||||||||||||||||||
Investments, Available-for-Sale | |||||||||||||||||||||||||
The following tables summarize the Company’s investment securities (in thousands). | |||||||||||||||||||||||||
December 31, 2014 | Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
U.S. government and agencies | $ | 8,039 | $ | 277 | $ | -26 | $ | 8,290 | |||||||||||||||||
State | 698 | 27 | — | 725 | |||||||||||||||||||||
Political subdivisions | 500 | 6 | — | 506 | |||||||||||||||||||||
Revenue and assessment | 14,856 | 1,522 | -18 | 16,360 | |||||||||||||||||||||
Corporate bonds | 73,051 | 2,698 | -630 | 75,119 | |||||||||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||||||
Agency backed | 4,647 | 160 | — | 4,807 | |||||||||||||||||||||
Non-agency backed – residential | 3,513 | 624 | — | 4,137 | |||||||||||||||||||||
Non-agency backed – commercial | 2,414 | 664 | — | 3,078 | |||||||||||||||||||||
Total fixed maturities, available-for-sale | 107,718 | 5,978 | -674 | 113,022 | |||||||||||||||||||||
Preferred stock, available-for-sale | 1,500 | 267 | — | 1,767 | |||||||||||||||||||||
Mutual funds, available-for-sale | 9,901 | 403 | -8 | 10,296 | |||||||||||||||||||||
$ | 119,119 | $ | 6,648 | $ | -682 | $ | 125,085 | ||||||||||||||||||
December 31, 2013 | Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
U.S. government and agencies | $ | 12,006 | $ | 495 | $ | (16 | ) | $ | 12,485 | ||||||||||||||||
State | 697 | 39 | — | 736 | |||||||||||||||||||||
Political subdivisions | 1,601 | 51 | — | 1,652 | |||||||||||||||||||||
Revenue and assessment | 13,050 | 579 | (11 | ) | 13,618 | ||||||||||||||||||||
Corporate bonds | 73,461 | 2,127 | (2,263 | ) | 73,325 | ||||||||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||||||
Agency backed | 7,113 | 401 | — | 7,514 | |||||||||||||||||||||
Non-agency backed – residential | 4,181 | 480 | (1 | ) | 4,660 | ||||||||||||||||||||
Non-agency backed – commercial | 3,363 | 580 | — | 3,943 | |||||||||||||||||||||
Total fixed maturities, available-for-sale | 115,472 | 4,752 | (2,291 | ) | 117,933 | ||||||||||||||||||||
Preferred stock, available-for-sale | 1,500 | 78 | — | 1,578 | |||||||||||||||||||||
Mutual funds, available-for-sale | 9,901 | 836 | — | 10,737 | |||||||||||||||||||||
$ | 126,873 | $ | 5,666 | $ | (2,291 | ) | $ | 130,248 | |||||||||||||||||
The following tables set forth the scheduled maturities of the Company’s fixed maturity securities based on their fair values (in thousands). Actual maturities may differ from contractual maturities because certain securities may be called or prepaid by the issuers. | |||||||||||||||||||||||||
December 31, 2014 | Securities | Securities | Securities | All | |||||||||||||||||||||
with | with | with No | Fixed | ||||||||||||||||||||||
Unrealized | Unrealized | Unrealized | Maturity | ||||||||||||||||||||||
Gains | Losses | Gains or | Securities | ||||||||||||||||||||||
Losses | |||||||||||||||||||||||||
One year or less | $ | 8,791 | $ | — | $ | — | $ | 8,791 | |||||||||||||||||
After one through five years | 22,140 | 12,888 | — | 35,028 | |||||||||||||||||||||
After five through ten years | 24,980 | 21,450 | — | 46,430 | |||||||||||||||||||||
After ten years | 9,009 | 1,742 | — | 10,751 | |||||||||||||||||||||
No single maturity date | 12,022 | — | — | 12,022 | |||||||||||||||||||||
$ | 76,942 | $ | 36,080 | $ | — | $ | 113,022 | ||||||||||||||||||
December 31, 2013 | Securities | Securities | Securities | All | |||||||||||||||||||||
with | with | with No | Fixed | ||||||||||||||||||||||
Unrealized | Unrealized | Unrealized | Maturity | ||||||||||||||||||||||
Gains | Losses | Gains or | Securities | ||||||||||||||||||||||
Losses | |||||||||||||||||||||||||
One year or less | $ | 14,305 | $ | — | $ | — | $ | 14,305 | |||||||||||||||||
After one through five years | 25,667 | 10,888 | — | 36,555 | |||||||||||||||||||||
After five through ten years | 20,445 | 22,836 | — | 43,281 | |||||||||||||||||||||
After ten years | 3,667 | 4,008 | — | 7,675 | |||||||||||||||||||||
No single maturity date | 15,928 | 189 | — | 16,117 | |||||||||||||||||||||
$ | 80,012 | $ | 37,921 | $ | — | $ | 117,933 | ||||||||||||||||||
The fair value and gross unrealized losses of investments, available-for-sale, by the length of time that individual securities have been in a continuous unrealized loss position follows (in thousands). | |||||||||||||||||||||||||
December 31, 2014 | Less than 12 months | 12 months or longer | Total Gross | ||||||||||||||||||||||
Unrealized | |||||||||||||||||||||||||
Fair | Gross | Fair | Gross | Losses | |||||||||||||||||||||
Value | Unrealized | Value | Unrealized | ||||||||||||||||||||||
Losses | Losses | ||||||||||||||||||||||||
U.S. government and agencies | $ | 5,012 | $ | -26 | $ | — | $ | — | $ | -26 | |||||||||||||||
State | — | — | — | — | — | ||||||||||||||||||||
Political subdivisions | — | — | — | — | — | ||||||||||||||||||||
Revenue and assessment | 2,820 | -18 | — | — | -18 | ||||||||||||||||||||
Corporate bonds | 7,681 | -38 | 20,567 | -592 | -630 | ||||||||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||||||
Agency backed | — | — | — | — | — | ||||||||||||||||||||
Non-agency backed – residential | — | — | — | — | — | ||||||||||||||||||||
Non-agency backed – commercial | — | — | — | — | — | ||||||||||||||||||||
Total fixed maturities, available-for-sale | 15,513 | -82 | 20,567 | -592 | -674 | ||||||||||||||||||||
Preferred stock, available-for-sale | — | — | — | — | — | ||||||||||||||||||||
Mutual funds, available-for-sale | 1,992 | -8 | — | — | -8 | ||||||||||||||||||||
$ | 17,505 | $ | -90 | $ | 20,567 | $ | -592 | $ | -682 | ||||||||||||||||
December 31, 2013 | Less than 12 months | 12 months or longer | Total Gross | ||||||||||||||||||||||
Unrealized | |||||||||||||||||||||||||
Fair | Gross | Fair | Gross | Losses | |||||||||||||||||||||
Value | Unrealized | Value | Unrealized | ||||||||||||||||||||||
Losses | Losses | ||||||||||||||||||||||||
U.S. government and agencies | $ | 988 | $ | (16 | ) | $ | — | $ | — | $ | (16 | ) | |||||||||||||
State | — | — | — | — | — | ||||||||||||||||||||
Political subdivisions | — | — | — | — | — | ||||||||||||||||||||
Revenue and assessment | 983 | (11 | ) | — | — | (11 | ) | ||||||||||||||||||
Corporate bonds | 21,781 | (993 | ) | 13,980 | (1,270 | ) | (2,263 | ) | |||||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||||||
Agency backed | — | — | — | — | — | ||||||||||||||||||||
Non-agency backed – residential | 189 | (1 | ) | — | — | (1 | ) | ||||||||||||||||||
Non-agency backed – commercial | — | — | — | — | — | ||||||||||||||||||||
Total fixed maturities, available-for-sale | 23,941 | (1,021 | ) | 13,980 | (1,270 | ) | (2,291 | ) | |||||||||||||||||
Preferred stock, available-for-sale | — | — | — | — | — | ||||||||||||||||||||
Mutual funds, available-for-sale | — | — | — | — | — | ||||||||||||||||||||
$ | 23,941 | $ | (1,021 | ) | $ | 13,980 | $ | (1,270 | ) | $ | (2,291 | ) | |||||||||||||
The following table reflects the number of fixed maturity securities with gross unrealized gains and losses. Gross unrealized losses are further segregated by the length of time that individual securities have been in a continuous unrealized loss position. | |||||||||||||||||||||||||
At: | Gross Unrealized Losses | Gross | |||||||||||||||||||||||
Unrealized | |||||||||||||||||||||||||
Less than | Greater | Gains | |||||||||||||||||||||||
or equal to | than 12 | ||||||||||||||||||||||||
12 months | months | ||||||||||||||||||||||||
December 31, 2014 | 9 | 9 | 80 | ||||||||||||||||||||||
December 31, 2013 | 12 | 7 | 83 | ||||||||||||||||||||||
The following tables reflect the fair value and gross unrealized losses of those fixed maturity securities in a continuous unrealized loss position for greater than 12 months. Gross unrealized losses are further segregated by the percentage of amortized cost (in thousands, except number of securities). | |||||||||||||||||||||||||
Gross Unrealized Losses | Number | Fair | Gross | ||||||||||||||||||||||
at December 31, 2014: | of | Value | Unrealized | ||||||||||||||||||||||
Securities | Losses | ||||||||||||||||||||||||
Less than or equal to 10% | 9 | $ | 20,567 | $ | -592 | ||||||||||||||||||||
Greater than 10% | — | — | — | ||||||||||||||||||||||
9 | $ | 20,567 | $ | -592 | |||||||||||||||||||||
Gross Unrealized Losses | Number | Fair | Gross | ||||||||||||||||||||||
at December 31, 2013: | of | Value | Unrealized | ||||||||||||||||||||||
Securities | Losses | ||||||||||||||||||||||||
Less than or equal to 10% | 7 | $ | 13,980 | $ | (1,270 | ) | |||||||||||||||||||
Greater than 10% | — | — | — | ||||||||||||||||||||||
7 | $ | 13,980 | $ | (1,270 | ) | ||||||||||||||||||||
The following tables set forth the amount of gross unrealized losses by current severity (as compared to amortized cost) and length of time that individual securities have been in a continuous unrealized loss position (in thousands). | |||||||||||||||||||||||||
Length of | Fair Value of | Gross | Severity of Gross Unrealized Losses | ||||||||||||||||||||||
Gross Unrealized Losses | Securities with | Unrealized | |||||||||||||||||||||||
at December 31, 2014: | Gross | Losses | |||||||||||||||||||||||
Unrealized | |||||||||||||||||||||||||
Losses | Less | 5% to | Greater | ||||||||||||||||||||||
than 5% | 10% | than | |||||||||||||||||||||||
10% | |||||||||||||||||||||||||
Less than or equal to: | |||||||||||||||||||||||||
Three months | $ | 17,505 | $ | -90 | $ | (90 | ) | $ | — | $ | — | ||||||||||||||
Six months | — | — | — | — | — | ||||||||||||||||||||
Nine months | — | — | — | — | — | ||||||||||||||||||||
Twelve months | — | — | — | — | — | ||||||||||||||||||||
Greater than twelve months | 20,567 | -592 | -592 | — | — | ||||||||||||||||||||
Total | $ | 38,072 | $ | -682 | $ | -682 | $ | — | $ | — | |||||||||||||||
Length of | Fair Value of | Gross | Severity of Gross Unrealized Losses | ||||||||||||||||||||||
Gross Unrealized Losses | Securities with | Unrealized | |||||||||||||||||||||||
at December 31, 2013: | Gross | Losses | |||||||||||||||||||||||
Unrealized | |||||||||||||||||||||||||
Losses | Less | 5% to | Greater | ||||||||||||||||||||||
than 5% | 10% | than | |||||||||||||||||||||||
10% | |||||||||||||||||||||||||
Less than or equal to: | |||||||||||||||||||||||||
Three months | $ | 6,417 | $ | (40 | ) | $ | (40 | ) | $ | — | $ | — | |||||||||||||
Six months | 1,653 | (129 | ) | — | (129 | ) | — | ||||||||||||||||||
Nine months | 15,871 | (852 | ) | (153 | ) | (699 | ) | — | |||||||||||||||||
Twelve months | — | — | — | — | — | ||||||||||||||||||||
Greater than twelve months | 13,980 | (1,270 | ) | (85 | ) | (1,185 | ) | — | |||||||||||||||||
Total | $ | 37,921 | $ | (2,291 | ) | $ | (278 | ) | $ | (2,013 | ) | $ | — | ||||||||||||
Other Investments | |||||||||||||||||||||||||
Other investments consist of the common stock of a real estate investment trust and limited partnership interests in three funds that invest in (i) commercial real estate and secured commercial real estate loans acquired from financial intuitions, (ii) small balance distressed secured loans and debt securities and (iii) undervalued international publicly-traded equities. These investments have redemption and transfer restrictions; however, the Company does not intend to sell these investments, and it is more likely than not that the Company will not be required to sell them before the expiration of such restrictions. At December 31, 2014, the Company had unfunded commitments of $2.3 million with two of these investments. | |||||||||||||||||||||||||
Restrictions | |||||||||||||||||||||||||
At December 31, 2014, fixed maturities and cash equivalents with a fair value and amortized cost of $5.3 million were on deposit with various insurance departments as a requirement of doing business in those states. Cash equivalents with a fair value and amortized cost of $9.4 million were on deposit with another insurance company as collateral for an assumed reinsurance contract. | |||||||||||||||||||||||||
Investment Income and Net Realized Gains and Losses | |||||||||||||||||||||||||
The major categories of investment income follow (in thousands). | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Fixed maturities, available-for-sale | $ | 4,481 | $ | 4,914 | $ | 6,434 | |||||||||||||||||||
Mutual funds, available-for-sale | 832 | 766 | 613 | ||||||||||||||||||||||
Other investments | 85 | 399 | — | ||||||||||||||||||||||
Other | 214 | 213 | 171 | ||||||||||||||||||||||
Investment expenses | (489 | ) | (576 | ) | (619 | ) | |||||||||||||||||||
$ | 5,123 | $ | 5,716 | $ | 6,599 | ||||||||||||||||||||
The components of net realized gains (losses) on investments, available-for-sale follow (in thousands). | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Gains | $ | 85 | $ | 100 | $ | 3,296 | |||||||||||||||||||
Losses | (62 | ) | (68 | ) | (31 | ) | |||||||||||||||||||
Other-than-temporary impairment | — | (61 | ) | (23 | ) | ||||||||||||||||||||
$ | 23 | $ | (29 | ) | $ | 3,242 | |||||||||||||||||||
Realized gains and losses on sales and redemptions are computed based on specific identification. The non-credit related portion of OTTI is included in other comprehensive income (loss). The amounts of non-credit OTTI for securities still owned was $0.9 million for non-agency backed residential CMOs and $0.2 million for non-agency backed commercial at December 31, 2014 and 2013. | |||||||||||||||||||||||||
Other-Than-Temporary Impairment | |||||||||||||||||||||||||
The Company separates OTTI into the following two components: (i) the amount related to credit losses, which is recognized in the consolidated statement of operations and comprehensive income (loss) and (ii) the amount related to all other factors, which is recorded in other comprehensive income (loss). The credit-related portion of an OTTI is measured by comparing a security’s amortized cost to the present value of its current expected cash flows discounted at its effective yield prior to the impairment charge. | |||||||||||||||||||||||||
The determination of whether unrealized losses are “other-than-temporary” requires judgment based on subjective as well as objective factors. The Company routinely monitors its investment portfolio for changes in fair value that might indicate potential impairments and performs detailed reviews on such securities. Changes in fair value are evaluated to determine the extent to which such changes are attributable to (i) fundamental factors specific to the issuer or (ii) market-related factors such as interest rates or sector declines. | |||||||||||||||||||||||||
Securities with declines attributable to issuer-specific fundamentals are reviewed to identify all available evidence to estimate the potential for impairment. Resources used include historical financial data included in filings with the United States Securities and Exchange Commission (“SEC”) for corporate bonds and performance data regarding the underlying loans for CMOs. Securities with declines attributable solely to market or sector declines where the Company does not intend to sell the security and it is more likely than not that the Company will not be required to sell the security before the full recovery of its amortized cost basis are not deemed to be other-than-temporarily impaired. | |||||||||||||||||||||||||
The issuer-specific factors considered in reaching the conclusion that securities with declines are not other-than-temporary include (i) the extent and duration of the decline in fair value, including the duration of any significant decline in value, (ii) whether the security is current as to payments of principal and interest, (iii) a valuation of any underlying collateral, (iv) current and future conditions and trends for both the business and its industry, (v) changes in cash flow assumptions for CMOs and (vi) rating agency actions. Based on these factors, the Company makes a determination as to the probability of recovering principal and interest on the security. | |||||||||||||||||||||||||
The number and amount of securities for which the Company has recognized OTTI charges in net income (loss) are presented in the following tables (in thousands, except for the number of securities). | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Number | OTTI | Number | OTTI | Number | OTTI | ||||||||||||||||||||
of | of | of | |||||||||||||||||||||||
Securities | Securities | Securities | |||||||||||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||||||
Non-agency backed – residential | — | $ | — | 1 | $ | (61 | ) | 2 | $ | (8 | ) | ||||||||||||||
Non-agency backed – commercial | — | — | — | — | 1 | (15 | ) | ||||||||||||||||||
— | — | 1 | (61 | ) | 3 | (23 | ) | ||||||||||||||||||
Portion of loss recognized in accumulated other comprehensive income (loss) | — | — | — | ||||||||||||||||||||||
Net OTTI recognized in net income (loss) | $ | — | $ | (61 | ) | $ | (23 | ) | |||||||||||||||||
The following is a progression of the credit-related portion of OTTI on investments owned at December 31, 2014, 2013 and 2012 (in thousands). | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Beginning balance | $ | (2,632 | ) | $ | (2,666 | ) | $ | (3,425 | ) | ||||||||||||||||
Additional credit impairments on: | |||||||||||||||||||||||||
Previously impaired securities | — | (61 | ) | (23 | ) | ||||||||||||||||||||
Securities without previous impairments | — | — | — | ||||||||||||||||||||||
— | (61 | ) | (23 | ) | |||||||||||||||||||||
Reductions for securities sold (realized) | — | 95 | 782 | ||||||||||||||||||||||
$ | (2,632 | ) | $ | (2,632 | ) | $ | (2,666 | ) | |||||||||||||||||
The Company believes that the remaining securities having unrealized losses at December 31, 2014 were not other-than-temporarily impaired. The Company also does not intend to sell any of these securities and it is more likely than not that the Company will not be required to sell any of these securities before the recovery of their amortized cost basis. |
Reinsurance
Reinsurance | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Insurance [Abstract] | |||||||||||||||||||||||||
Reinsurance | 4 | Reinsurance | |||||||||||||||||||||||
Total premiums written and earned are summarized as follows (in thousands). | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Written | Earned | Written | Earned | Written | Earned | ||||||||||||||||||||
Direct | $ | 200,983 | $ | 191,093 | $ | 177,376 | $ | 176,588 | $ | 168,990 | $ | 164,715 | |||||||||||||
Assumed | 29,311 | 27,487 | 23,768 | 23,313 | 21,517 | 21,121 | |||||||||||||||||||
Ceded | (265 | ) | (265 | ) | (201 | ) | (201 | ) | (192 | ) | (192 | ) | |||||||||||||
Total | $ | 230,029 | $ | 218,315 | $ | 200,943 | $ | 199,700 | $ | 190,315 | $ | 185,644 | |||||||||||||
Assumed business represents private-passenger non-standard automobile insurance premiums in Texas written through a program with a county mutual insurance company and assumed by the Company through 100% quota-share reinsurance. The percentages of premiums assumed to net premiums written for the years ended December 31, 2014, 2013 and 2012 were 13%, 12% and 11%, respectively. | |||||||||||||||||||||||||
In August 2010, the Insurance Companies began utilizing excess-of-loss reinsurance with an unaffiliated reinsurer to limit their exposure to losses under liability coverages for policies issued with limits greater than the minimum statutory requirements. In November 2013, this excess-of-loss reinsurance was expanded to include higher liability limits on tenant homeowner policies. Although the reinsurance agreements contractually obligate the reinsurer to reimburse the Company for their share of losses, they do not discharge the primary liability of the Company, which remains contingently liable in the event the reinsurer is unable to meet their contractual obligations. | |||||||||||||||||||||||||
At December 31, 2014, the Insurance Companies had unsecured aggregate reinsurance receivables of $0.4 million. | |||||||||||||||||||||||||
Ceded premiums earned and reinsurance recoveries on losses and loss adjustment expenses were as follows (in thousands): | |||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Ceded premiums earned | $ | 265 | $ | 201 | $ | 192 | |||||||||||||||||||
Reinsurance recoveries on losses and loss adjustment expenses | $ | 137 | $ | 285 | $ | 163 | |||||||||||||||||||
StockBased_Compensation_Plans
Stock-Based Compensation Plans | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||||||||||||||||
Stock-Based Compensation Plans | 5 | Stock-Based Compensation Plans | |||||||||||||||
Employee Stock-Based Incentive Plan | |||||||||||||||||
The Company has issued stock options (“Stock Option Awards”) and restricted common stock (“Restricted Stock Awards”) to employees and directors under its Amended and Restated First Acceptance Corporation 2002 Long Term Incentive Plan (the “Plan”) and accounts for such issuances in accordance with FASB ASC 718, Compensation – Stock Compensation. At December 31, 2014, there were 6,255,156 shares remaining available for issuance under the Plan. Stock Option Awards are generally granted with an exercise price equal to or greater than the market price of the Company’s stock at the date of grant. Stock Option Awards expire over five or ten years from the date of grant and vest in designated installments over four or five years through January 2016, while the Restricted Stock Awards vested in designated installments through November 2014. Certain awards provide for accelerated vesting if there is a change in control (as defined in the Plan). | |||||||||||||||||
On January 31, 2012, the Compensation Committee of the Board of Directors of the Company awarded two executive officers Stock Option Awards to purchase 750,000 and 75,000 shares of the Company’s common stock at an exercise price of $1.45 per share and vest 40% and 20%, respectively, upon grant with the remainder vesting in equal installments over three and four years, respectively. Additionally, these Stock Option Awards expire on January 31, 2017. Compensation expense related to these Stock Option Awards was $522 thousand, of which $504 thousand was amortized through December 2014 and the remaining $18 thousand will be amortized through January 2016. The fair value of these Stock Option Awards was estimated at the grant date using the Black-Scholes option pricing model with an expected volatility of 73%, a risk-free interest rate of 0.71%, a dividend yield rate of zero, and a five-year expected term. Based on the calculation using the Black-Scholes option pricing model, the grant date fair value of options granted was $0.63 per share. Expected volatility is based on the historical volatility in the price of the Company’s common stock since April 2004. The risk-free interest rate is the five-year Treasury rate, based on the term of the options. The dividend yield assumption is based on our history and expectation of dividend payments on common stock. The expected term represents the period of time that these Stock Option Awards are expected to remain outstanding. | |||||||||||||||||
Compensation expense related to Stock Option Awards is calculated under the fair value method and is recorded on a straight-line basis over the vesting period. There were no Stock Option Awards granted during the years ended December 31, 2014 and 2013. At December 31, 2014, the weighted average remaining contractual life of options outstanding and exercisable/vested was approximately 2.4 years for both. | |||||||||||||||||
A summary of the activity for the Company’s Stock Option Awards is presented below (in thousands, except per share data). | |||||||||||||||||
Options | Exercise | Weighted | Aggregate | ||||||||||||||
Price | Average | Intrinsic | |||||||||||||||
Exercise | Value | ||||||||||||||||
Price | |||||||||||||||||
Options outstanding at December 31, 2011 | 4,500 | $3.00-$8.13 | $ | 3.06 | |||||||||||||
Granted | 825 | $1.45 | $ | 1.45 | |||||||||||||
Forfeited | (3,730 | ) | $3.00-$3.04 | $ | 3 | ||||||||||||
Options outstanding at December 31, 2012 | 1,595 | $1.45-$8.13 | $ | 2.38 | |||||||||||||
Forfeited | (358 | ) | $3.04 | $ | 3.04 | ||||||||||||
Options outstanding at December 31, 2013 | 1,237 | $1.45-$8.13 | $ | 2.19 | |||||||||||||
Forfeited | (117 | ) | $5.22 | $ | 5.22 | ||||||||||||
Options outstanding at December 31, 2014 | 1,120 | $1.45-$3.04 | $ | 1.87 | $ | 908 | |||||||||||
Options exercisable/vested at December 31, 2014 | 940 | $ | 1.95 | $ | 710 | ||||||||||||
A summary of the activity for the Company’s Restricted Stock Awards is presented below (in thousands, except per share data). | |||||||||||||||||
Restricted | Weighted | ||||||||||||||||
Stock | Average | ||||||||||||||||
Awards | Grant Date | ||||||||||||||||
Fair Value | |||||||||||||||||
Restricted Stock Awards outstanding at December 31, 2011 | 95 | $ | 2.36 | ||||||||||||||
Vested | (34 | ) | $ | 2.36 | |||||||||||||
Forfeited | (1 | ) | $ | 2.5 | |||||||||||||
Restricted Stock Awards outstanding at December 31, 2012 | 60 | $ | 2.35 | ||||||||||||||
Vested | (29 | ) | $ | 2.38 | |||||||||||||
Forfeited | (14 | ) | $ | 2.36 | |||||||||||||
Restricted Stock Awards outstanding at December 31, 2013 | 17 | $ | 2.29 | ||||||||||||||
Vested | (17 | ) | $ | 2.29 | |||||||||||||
Restricted Stock Awards outstanding at December 31, 2014 | - | $ | 0 | ||||||||||||||
In the table above, the number of shares vested includes 75,135 shares surrendered by the employees to the Company for payment of minimum tax withholding obligations. Shares of stock withheld for purposes of satisfying minimum tax withholding obligations are again available for issuance under the Plan. | |||||||||||||||||
There were no Restricted Stock Awards granted during the years ended December 31, 2014, 2013 and 2012. The aggregate fair values of Restricted Stock Awards vested during the years ended December 31, 2014, 2013 and 2012 were $54 thousand, $99 thousand and $134 thousand, respectively, at the date of vesting. | |||||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||
The Company’s Board of Directors adopted the First Acceptance Corporation Employee Stock Purchase Plan (“ESPP”) whereby eligible employees may purchase shares of the Company’s common stock at a price equal to the lower of the closing market price on the first or last trading day of a six-month period. ESPP participants can authorize payroll deductions, administered through an independent plan custodian, of up to 15% of their salary to purchase semi-annually (June 30 and December 31) up to $25,000 of the Company’s common stock during each calendar year. The Company has reserved 400,000 shares of common stock for issuance under the ESPP. Employees purchased approximately 31,000, 35,000, and 40,000 shares during the years ended December 31, 2014, 2013 and 2012, respectively. Compensation expense attributable to subscriptions to purchase shares under the ESPP was $11,000, $7,000 and $11,000 for the years ended December 31, 2014, 2013 and 2012, respectively. At December 31, 2014, 87,635 shares remain available for issuance under the ESPP. | |||||||||||||||||
Employee_Benefit_Plan
Employee Benefit Plan | 12 Months Ended | |
Dec. 31, 2014 | ||
Compensation And Retirement Disclosure [Abstract] | ||
Employee Benefit Plan | 6 | Employee Benefit Plan |
The Company sponsors a defined contribution retirement plan (“401k Plan”) under Section 401(k) of the Internal Revenue Code. The 401k Plan covers substantially all employees who meet specified service requirements. Under the 401k Plan, the Company may, at its discretion, match 100% of the first 3% of an employee’s salary plus 50% of the next 2% up to the maximum allowed by the Internal Revenue Code. The Company’s contributions to the 401k Plan for the years ended December 31, 2014, 2013 and 2012 were $0.7 million, $0.6 million and $0.6 million, respectively, and are included within insurance operating expenses in the accompanying consolidated statements of operations and comprehensive income (loss). |
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property Plant And Equipment [Abstract] | |||||||||
Property and Equipment | 7 | Property and Equipment | |||||||
The components of property and equipment are as follows (in thousands). | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Furniture and equipment | $ | 10,660 | $ | 9,736 | |||||
Leasehold improvements | 5,000 | 4,999 | |||||||
Capitalized leases | 238 | 238 | |||||||
Aircraft | 190 | 190 | |||||||
16,088 | 15,163 | ||||||||
Less: Accumulated depreciation | (12,915 | ) | (11,651 | ) | |||||
Property and equipment, net | $ | 3,173 | $ | 3,512 | |||||
Depreciation and amortization expense related to property and equipment was $1.8 million, $2.1 million and $2.2 million for the years ended December 31, 2014, 2013 and 2012, respectively. Included within the furniture and equipment and the leasehold improvements categories at December 31, 2014 above are capitalized assets totaling $0.2 million not yet in service. These assets are related to the Company’s strategic investments in its retail stores and the website. |
Lease_Commitments
Lease Commitments | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Leases [Abstract] | |||||
Lease Commitments | 8 | Lease Commitments | |||
The Company is committed under various operating lease agreements for office space. Certain lease agreements contain renewal options and rent escalation clauses. Rental expense for the year ended December 31, 2014, 2013 and 2012 was $8.9 million, $9.2 million and $9.5 million, respectively, and is included within insurance operating expenses in the accompanying consolidated statements of operations and comprehensive income (loss). Future minimum lease payments under these agreements follow (in thousands). | |||||
Year Ending December 31, | Amount | ||||
2015 | $ | 6,819 | |||
2016 | 3,828 | ||||
2017 | 1,592 | ||||
2018 | 514 | ||||
2019 | 234 | ||||
Thereafter | 357 | ||||
Total | $ | 13,344 | |||
Losses_and_Loss_Adjustment_Exp
Losses and Loss Adjustment Expenses Incurred and Paid | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Insurance [Abstract] | |||||||||||||
Losses and Loss Adjustment Expenses Incurred and Paid | 9 | Losses and Loss Adjustment Expenses Incurred and Paid | |||||||||||
Information regarding the reserve for unpaid losses and LAE is as follows (in thousands). | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Liability for unpaid losses and LAE at beginning of year, gross | $ | 84,286 | $ | 79,260 | $ | 69,436 | |||||||
Reinsurance balances receivable | -305 | (260 | ) | (187 | ) | ||||||||
Liability for unpaid losses and LAE at beginning of year, net | 83,981 | 79,000 | 69,249 | ||||||||||
Add: Provision for losses and LAE: | |||||||||||||
Current year | 166,185 | 145,877 | 144,207 | ||||||||||
Prior years | (4,883 | ) | (3,038 | ) | 4,016 | ||||||||
Net losses and LAE incurred | 161,302 | 142,839 | 148,223 | ||||||||||
Less: Losses and LAE paid: | |||||||||||||
Current year | 98,442 | 88,726 | 89,157 | ||||||||||
Prior years | 50,590 | 49,132 | 49,315 | ||||||||||
Net losses and LAE paid | 149,032 | 137,858 | 138,472 | ||||||||||
Liability for unpaid losses and LAE at end of year, net | 96,251 | 83,981 | 79,000 | ||||||||||
Reinsurance balances receivable | 362 | 305 | 260 | ||||||||||
Liability for unpaid losses and LAE at end of year, gross | $ | 96,613 | $ | 84,286 | $ | 79,260 | |||||||
The favorable change in the estimate of unpaid losses and loss adjustment expenses of $4.9 million for the year ended December 31, 2014 was primarily related to bodily injury claims occurring in accident years 2010 through 2013. The favorable change in the estimate of unpaid losses and loss adjustment expenses of $3.0 million for the year ended December 31, 2013 was primarily related to bodily injury claims occurring in accident years 2010 through 2012, partially offset by unfavorable loss and loss adjustment expense development on Florida personal injury protection claims. | |||||||||||||
The unfavorable change in the estimate of unpaid losses and loss adjustment expenses of $4.0 million for the year ended December 31, 2012 was primarily due to higher than expected severity with Florida personal injury protection claims and with Georgia bodily injury claims in older accident periods, and unfavorable loss adjustment expense development that was primarily related to higher than expected legal expenses for bodily injury claims for accident years 2010 and prior. | |||||||||||||
Debentures_Payable
Debentures Payable | 12 Months Ended | |
Dec. 31, 2014 | ||
Debt Disclosure [Abstract] | ||
Debentures Payable | 10 | Debentures Payable |
In June 2007, First Acceptance Statutory Trust I (“FAST I”), a wholly-owned unconsolidated subsidiary trust of the Company, issued 40,000 shares of preferred securities at $1,000 per share to outside investors and 1,240 shares of common securities to the Company, also at $1,000 per share. FAST I used the proceeds from the sale of the preferred securities to purchase $41.2 million of junior subordinated debentures from the Company. The sole assets of FAST I are $41.2 million of junior subordinated debentures issued by the Company. The debentures will mature on July 30, 2037 and are redeemable by the Company in whole or in part beginning on July 30, 2012, at which time the preferred securities are callable. The debentures paid a fixed rate of 9.277% until July 30, 2012, after which the rate became variable (Three-Month LIBOR plus 375 basis points, resetting quarterly). The interest rate related to the debentures was 3.983% for the period from November 2014 to January 2015 and reset to 4.005% for February 2015 through April 2015. | ||
The obligations of the Company under the junior subordinated debentures represent full and unconditional guarantees by the Company of FAST I’s obligations for the preferred securities. Dividends on the preferred securities are cumulative, payable quarterly in arrears and are deferrable at the Company’s option for up to five years. The dividends on these securities, which have not been deferred, are the same as the interest on the debentures. The Company cannot pay dividends on its common stock during such deferments. | ||
The debentures are classified as debentures payable in the Company’s consolidated balance sheets and the interest paid on these debentures is classified as interest expense in the consolidated statements of operations and comprehensive income (loss). At December 31, 2014, the unamortized debt discount of $0.9 million is being amortized to interest expense over the term of the debentures. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | 11 | Income Taxes | |||||||||||
The provision (benefit) for income taxes consisted of the following (in thousands). | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Federal: | |||||||||||||
Current | $ | 228 | $ | 175 | $ | — | |||||||
Deferred | (19,098 | ) | (4 | ) | — | ||||||||
(18,870 | ) | 171 | — | ||||||||||
State: | |||||||||||||
Current | 650 | 476 | (8 | ) | |||||||||
Deferred | (125 | ) | 3 | 3 | |||||||||
525 | 479 | (5 | ) | ||||||||||
$ | (18,345 | ) | $ | 650 | $ | (5 | ) | ||||||
The provision (benefit) for income taxes differs from the amounts computed by applying the statutory federal corporate tax rate of 35% to income (loss) before income taxes as a result of the following (in thousands). | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Provision (benefit) for income taxes at statutory rate | $ | 3,403 | $ | 3,440 | $ | (3,166 | ) | ||||||
Tax effect of: | |||||||||||||
Tax-exempt investment income | (21 | ) | (27 | ) | (18 | ) | |||||||
Change in the beginning of the year balance of the valuation allowance for deferred tax assets allocated to income taxes | (22,427 | ) | (4,277 | ) | 580 | ||||||||
Stock-based compensation | 137 | 1,133 | 2,552 | ||||||||||
State income taxes | 525 | 479 | (5 | ) | |||||||||
Other | 38 | (98 | ) | 52 | |||||||||
$ | (18,345 | ) | $ | 650 | $ | (5 | ) | ||||||
The tax effects of temporary differences that give rise to the net deferred tax assets and liabilities are presented below (in thousands). | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Net operating loss carryforwards | $ | 6,180 | $ | 9,949 | |||||||||
Stock option compensation | 402 | 516 | |||||||||||
Unearned premiums and loss and loss adjustment expense reserves | 5,614 | 4,898 | |||||||||||
Goodwill and identifiable intangible assets | 5,404 | 6,311 | |||||||||||
Alternative minimum tax (“AMT”) credit carryforwards | 2,004 | 1,784 | |||||||||||
Accrued expenses and other nondeductible items | 1,201 | 1,182 | |||||||||||
Other | 3,127 | 1,875 | |||||||||||
23,932 | 26,515 | ||||||||||||
Deferred tax liabilities: | |||||||||||||
Deferred acquisition costs | (1,211 | ) | (1,016 | ) | |||||||||
Identifiable intangible assets | (1,872 | ) | (1,872 | ) | |||||||||
Net unrealized change on investments | (2,105 | ) | (1,181 | ) | |||||||||
Other | (460 | ) | — | ||||||||||
(5,648 | ) | (4,069 | ) | ||||||||||
Total net deferred tax asset | 18,284 | 22,446 | |||||||||||
Less: Valuation allowance | (1,763 | ) | (24,224 | ) | |||||||||
Net deferred tax asset (liability) | $ | 16,521 | $ | (1,778 | ) | ||||||||
The Company had a valuation allowance of $1.8 million and $24.2 million at December 31, 2014 and 2013, respectively, to reduce the net deferred tax asset to the amount that is more likely than not to be realized. The change in the total valuation allowance for the year ended December 31, 2014 was a decrease of $22.4 million resulting from a change in management’s judgment regarding the realizability of the deferred tax asset. For the year ended December 31, 2014, a $1.2 million adjustment to the valuation allowance related to the unrealized change on investments was included in net income. The change in the valuation allowance was also net of the utilization of $9.8 million in NOL carryforwards. | |||||||||||||
In assessing the realization of deferred tax assets, management considered whether it was more likely than not that some portion or all of the net deferred tax asset will not be realized. The Company is required to assess whether a valuation allowance should be established against the Company’s net deferred tax asset based on the consideration of all available evidence using a more likely than not standard. In making such judgments, significant weight is given to evidence that can be objectively verified. In assessing the Company’s ability to support the realizability of its net deferred tax asset, management considered both positive and negative evidence. The Company placed greater weight on historical results than on the Company’s outlook for future profitability and in establishing a deferred tax valuation allowance at December 31, 2013. Negative evidence including a twelve quarter cumulative taxable loss resulted in the establishment of a full valuation allowance from June 30, 2009 through September 30, 2014. As of December 31, 2014, the Company’s historical results now reflect a twelve quarter cumulative taxable income which management considers to be a trend of positive evidence in assessing the realizability of its net deferred tax asset. Based on this fact and the Company’s outlook for future profitability, the deferred tax asset valuation allowance was adjusted this period and resulted in the aforementioned change in the valuation allowance. The remaining allowance at December 31, 2014 relates to certain amounts that are not more likely than not expected to be realized. | |||||||||||||
The change in the total valuation allowance for the year ended December 31, 2013 was a decrease of $4.2 million. For the year ended December 31, 2013, the change in the calculation allowance included decreases of $1.9 million related to the unrealized change on investments included in other comprehensive income (loss) and was net of the utilization of $8.6 million in NOL carryforwards. | |||||||||||||
The change in the total valuation allowance for the year ended December 31, 2012 was an increase of $1.2 million. For the year ended December 31, 2012, the change in the calculation allowance included increases of $0.5 million related to the unrealized change on investments included in other comprehensive income (loss). | |||||||||||||
At December 31, 2014, the Company had gross state NOL carryforwards of $7.1 million that begin to expire in 2020. At December 31, 2014, the Company had gross federal NOL carryforwards of $17.7 million that begin to expire in 2031. In addition, the Company had AMT credit carryforwards of $2.0 million that have no expiration date. At December 31, 2014, the Company had gross state NOL carryforwards of $7.1 million that begin to expire in 2020. | |||||||||||||
Net_Income_Loss_Per_Share
Net Income (Loss) Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Net Income (Loss) Per Share | 12 | Net Income (Loss) Per Share | |||||||||||
Basic EPS are computed using the weighted average number of shares outstanding. Diluted EPS are computed using the weighted average number of shares outstanding adjusted for the incremental shares attributed to outstanding securities with a right to purchase or convert into common stock. | |||||||||||||
The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands, except per share data). | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net income (loss) | $ | 28,068 | $ | 9,180 | $ | (9,040 | ) | ||||||
Weighted average common basic shares | 40,985 | 40,930 | 40,861 | ||||||||||
Effect of dilutive securities | 298 | 162 | — | ||||||||||
Weighted average common dilutive shares | 41,283 | 41,092 | 40,861 | ||||||||||
Basic net income (loss) per share | $ | 0.68 | $ | 0.22 | $ | (0.22 | ) | ||||||
Diluted net income (loss) per share | $ | 0.68 | $ | 0.22 | $ | (0.22 | ) | ||||||
For the year ended December 31, 2014, the computation of diluted net income per share included exercisable options to purchase approximately 0.8 million shares that had a dilutive effect of 298 thousand shares. Options to purchase 295 thousand shares for the year ended December 31, 2014 were not included in the computation of diluted net income (loss) per share as their exercise prices were in excess of the average stock prices for the periods. | |||||||||||||
For the year ended December 31, 2013, the computation of diluted net income per share included 17 thousand shares of unvested restricted common stock and exercisable options to purchase approximately 0.9 million shares that had a dilutive effect of 145 thousand shares. Options to purchase 412 thousand shares for the year ended December 31, 2013 were not included in the computation of diluted net income (loss) per share as their exercise prices were in excess of the average stock prices for the periods presented. | |||||||||||||
For the year ended December 31, 2012, the computation of diluted net loss per share did not include approximately 0.1 million shares of unvested restricted common stock as their inclusion would have been anti-dilutive. Options to purchase 1.6 million shares for the year ended December 31, 2012 were not included in the computation of diluted net income (loss) per share as their exercise prices were in excess of the average stock prices for the periods presented. |
Concentrations_of_Credit_Risk
Concentrations of Credit Risk | 12 Months Ended | |
Dec. 31, 2014 | ||
Risks And Uncertainties [Abstract] | ||
Concentrations of Credit Risk | 13 | Concentrations of Credit Risk |
At December 31, 2014, the Company had certain concentrations of credit risk with several financial institutions in the form of cash and cash equivalents, which amounted to $102.4 million. For purposes of evaluating credit risk, the stability of financial institutions conducting business with the Company, the amount of collateral posted and the amount of available Federal Deposit Insurance Corporation insurance is periodically reviewed. If the financial institutions failed to completely perform under terms of the financial instruments, the exposure for credit loss would be the amount of the financial instruments less amounts covered by regulatory insurance. | ||
The Company primarily transacts business either directly with its policyholders or through independently-owned insurance agencies in Tennessee who exclusively write non-standard personal automobile insurance policies on behalf of the Company. Direct policyholders make payments directly to the Company. Balances due from policyholders are generally secured by the related unearned premium. The Company requires a down payment at the time the policy is originated and subsequent scheduled payments are monitored in order to prevent the Company from providing coverage beyond the date for which payment has been received. If subsequent payments are not made timely, the policy is generally canceled at no loss to the Company. Policyholders whose premiums are written through the independent agencies make their payments to these agencies that in turn remit these payments to the Company. Balances due to the Company resulting from premium payments made to these agencies are unsecured. | ||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | |
Dec. 31, 2014 | ||
Related Party Transactions [Abstract] | ||
Related Party Transactions | 14 | Related Party Transactions |
Certain of the Company’s executives are covered by employment agreements covering, among other items, base compensation, incentive-bonus determinations and payments in the event of termination or a change in control of the Company. | ||
Litigation
Litigation | 12 Months Ended | |
Dec. 31, 2014 | ||
Commitments And Contingencies Disclosure [Abstract] | ||
Litigation | 15 | Litigation |
The Company is named as a defendant in various lawsuits, arising in the ordinary course of business, generally relating to its insurance operations. All legal actions relating to claims made under insurance policies are considered by the Company in establishing its loss and loss adjustment expense reserves. The Company also faces lawsuits from time to time that seek damages beyond policy limits, commonly known as bad faith claims, as well as class action and individual lawsuits that involve issues arising in the course of the Company’s business. The Company continually evaluates potential liabilities and reserves for litigation of these types using the criteria established by FASB ASC 450, Contingencies (“FASB ASC 450”). Pursuant to FASB ASC 450, reserves for a loss may only be recognized if the likelihood of occurrence is probable and the amount can be reasonably estimated. If a loss, while not probable, is judged to be reasonably possible, management will disclose, if it can be estimated, a possible range of loss or state that an estimate cannot be made. Management evaluates each legal action and records reserves for losses as warranted by establishing a reserve in its consolidated balance sheets in loss and loss adjustment expense reserves for bad faith claims and in other liabilities for other lawsuits. Legal fees are expensed as incurred. Amounts incurred are recorded in the Company’s consolidated statements of operations and comprehensive income (loss) in losses and loss adjustment expenses for bad faith claims and in insurance operating expenses for other lawsuits unless otherwise disclosed. | ||
In January 2014, one current and three former employees filed a class action lawsuit against the Company in the U.S. District Court for the Middle District of Tennessee. The case is styled Lykins, et al. v. First Acceptance Corporation, et al. The suit alleges the Company violated the Fair Labor Standards Act by misclassifying its insurance agents as exempt employees. Plaintiffs seek unpaid wages, overtime, attorneys’ fees and costs. The Company answered the plaintiffs’ Complaint and denied all of the allegations contained therein. In April 2014, the case was conditionally certified as a class action, and a notice regarding the case was sent to all potential class members. Approximately 200 individuals chose to participate in the case during the opt-in period which closed on July 15, 2014. The Company strongly disagrees with the allegations and will put forth a vigorous defense. The case is still in its early stages of discovery. This litigation will likely have a lengthy duration. Therefore, an estimate of the ultimate impact of this litigation on the Company, if any, cannot be made at this time. | ||
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Segment Information | 16 | Segment Information | |||||||||||
The Company operates in two business segments with its primary focus being the selling, servicing and underwriting of non-standard personal automobile insurance. The real estate and corporate segment consists of the activities related to the disposition of foreclosed real estate held for sale, interest expense associated with all debt and other general corporate overhead expenses. | |||||||||||||
The following table presents selected financial data by business segment (in thousands). | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Revenues: | |||||||||||||
Insurance | $ | 263,133 | $ | 240,460 | $ | 227,966 | |||||||
Real estate and corporate | 61 | 52 | 93 | ||||||||||
Consolidated total | $ | 263,194 | $ | 240,512 | $ | 228,059 | |||||||
Income (loss) before income taxes: | |||||||||||||
Insurance | $ | 12,549 | $ | 12,748 | $ | (4,588 | ) | ||||||
Real estate and corporate | (2,826 | ) | (2,918 | ) | (4,457 | ) | |||||||
Consolidated total | $ | 9,723 | $ | 9,830 | $ | (9,045 | ) | ||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Total assets: | |||||||||||||
Insurance | $ | 302,529 | $ | 262,869 | |||||||||
Real estate and corporate | 26,046 | 10,838 | |||||||||||
Consolidated total | $ | 328,575 | $ | 273,707 | |||||||||
Statutory_Financial_Informatio
Statutory Financial Information and Accounting Policies | 12 Months Ended | |
Dec. 31, 2014 | ||
Insurance [Abstract] | ||
Statutory Financial Information and Accounting Policies | 17 | Statutory Financial Information and Accounting Policies |
The statutory-basis financial statements of the Insurance Companies are prepared in accordance with accounting practices prescribed or permitted by the Department of Insurance in each respective state of domicile. Each state of domicile requires that insurance companies domiciled in the state prepare their statutory-basis financial statements in accordance with the National Association of Insurance Commissioners Accounting Practices and Procedures Manual subject to any deviations prescribed or permitted by the insurance commissioner in each state of domicile. The Insurance Companies are required to report their risk-based capital (“RBC”) each December 31. Failure to maintain an adequate RBC could subject the Insurance Companies to regulatory action and could restrict the payment of dividends. At December 31, 2014, the RBC levels of the Insurance Companies did not subject them to any regulatory action. | ||
At December 31, 2014 and 2013, on an unaudited consolidated statutory basis, the capital and surplus of the Insurance Companies was $96.6 million and $95.0 million, respectively. For the years ended December 31, 2014, 2013 and 2012, consolidated statutory net income (loss) of the Insurance Companies was $1.0 million, $4.2 million and $(12.7) million, respectively. | ||
The maximum amount of dividends which can be paid by First Acceptance Insurance Company, Inc. (“FAIC”) to the Company, without the prior approval of the Texas insurance commissioner, is limited to the greater of 10% of statutory capital and surplus at December 31st of the next preceding year or net income for the year. In addition, dividends may only be paid from unassigned funds (surplus) and an insurance company’s remaining surplus must be both reasonable in relation to its outstanding liabilities and adequate to its financial needs. At December 31, 2014, FAIC could pay $2.0 million in ordinary dividends to the Company without prior regulatory approval. |
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Selected Quarterly Financial Data (Unaudited) | 18 | Selected Quarterly Financial Data (unaudited) | |||||||||||||||
Interim results are not necessarily indicative of fiscal year performance because of the impact of seasonal and short-term variations. Selected quarterly financial data is summarized as follows (in thousands, except per share data). | |||||||||||||||||
Total | Income | Net Income | Basic and | ||||||||||||||
Revenues | before | Diluted Net | |||||||||||||||
Income Taxes | Income | ||||||||||||||||
per Share | |||||||||||||||||
Year Ended December 31, 2014: | |||||||||||||||||
December 31, 2014 | $ | 67,928 | $ | 3,076 | $ | 21,968 | $ | 0.54 | |||||||||
September 30, 2014 | 65,604 | 2,377 | 2,120 | 0.05 | |||||||||||||
June 30, 2014 | 67,120 | 3,723 | 3,469 | 0.08 | |||||||||||||
March 31, 2014 | 62,542 | 547 | 511 | 0.01 | |||||||||||||
Year Ended December 31, 2013: | |||||||||||||||||
December 31, 2013 | $ | 59,152 | $ | 3,363 | $ | 3,158 | $ | 0.07 | |||||||||
September 30, 2013 | 59,578 | 2,096 | 1,932 | 0.05 | |||||||||||||
June 30, 2013 | 62,493 | 2,254 | 2,066 | 0.05 | |||||||||||||
March 31, 2013 | 59,289 | 2,117 | 2,024 | 0.05 | |||||||||||||
Income before income taxes for the quarter ended December 31, 2014 of $3.1 million included $2.6 million of favorable development in the Company’s estimate of unpaid loss and loss adjustment expenses. | |||||||||||||||||
Net income for the quarter ended December 31, 2014 of $22.0 million included $20.2 million in benefit for income taxes resulting from the change in the deferred tax valuation allowance. | |||||||||||||||||
Income before income taxes for the quarter ended December 31, 2013 of $3.4 million included $2.6 million of favorable development in the Company’s estimate of unpaid loss and loss adjustment expenses. |
Financial_Information_of_Regis
Financial Information of Registrant (Parent Company) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |||||||||||||
Financial Information of Registrant (Parent Company) | FIRST ACCEPTANCE CORPORATION AND SUBSIDIARIES | ||||||||||||
SCHEDULE II. FINANCIAL INFORMATION OF REGISTRANT (PARENT COMPANY) | |||||||||||||
(in thousands) | |||||||||||||
December 31, | |||||||||||||
Balance Sheets | 2014 | 2013 | |||||||||||
Assets: | |||||||||||||
Investment in subsidiaries, at equity in net assets | $ | 126,494 | $ | 108,356 | |||||||||
Cash and cash equivalents | 15,836 | 8,578 | |||||||||||
Deferred tax asset | 7,965 | 94 | |||||||||||
Other assets | 2,274 | 2,262 | |||||||||||
$ | 152,569 | $ | 119,289 | ||||||||||
Liabilities: | |||||||||||||
Debentures payable | $ | 40,341 | $ | 40,301 | |||||||||
Other liabilities | 5,264 | 2,055 | |||||||||||
Stockholders’ equity | 106,964 | 76,932 | |||||||||||
$ | 152,569 | $ | 119,289 | ||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Statements of Operations | |||||||||||||
Investment income | $ | 61 | $ | 52 | $ | 93 | |||||||
Equity in income (loss) of subsidiaries, net of tax | 23,804 | 11,657 | (6,830 | ) | |||||||||
Expenses | (2,887 | ) | (2,529 | ) | (2,303 | ) | |||||||
Income (loss) before income taxes | 20,978 | 9,180 | (9,040 | ) | |||||||||
Benefit for income taxes | (7,090 | ) | — | — | |||||||||
Net income (loss) | $ | 28,068 | $ | 9,180 | $ | (9,040 | ) | ||||||
Year Ended December 31, | |||||||||||||
Statements of Cash Flows | 2014 | 2013 | 2012 | ||||||||||
Cash flows from operating activities: | |||||||||||||
Net income (loss) | $ | 28,068 | $ | 9,180 | $ | (9,040 | ) | ||||||
Equity in income (loss) of subsidiaries, net of tax | -23,804 | (11,657 | ) | 6,830 | |||||||||
Stock-based compensation | 185 | 243 | 604 | ||||||||||
Deferred income taxes | -7,871 | (2 | ) | 1 | |||||||||
Other | 30 | (4 | ) | (6 | ) | ||||||||
Change in assets and liabilities | 3,197 | 790 | 792 | ||||||||||
Net cash used in operating activities | -195 | (1,450 | ) | (819 | ) | ||||||||
Cash flows from investing activities: | |||||||||||||
Dividends from subsidiary | 7,425 | 6,635 | 5,150 | ||||||||||
Maturities of investments, available-for-sale | — | — | 3,518 | ||||||||||
Improvements to foreclosed real estate | -2 | (2 | ) | (2 | ) | ||||||||
Investments in subsidiaries | -44 | — | (13,000 | ) | |||||||||
Net cash provided by investing activities | 7,379 | 6,633 | (4,334 | ) | |||||||||
Cash flows from financing activities: | |||||||||||||
Net proceeds from issuance of common stock | 74 | 51 | 52 | ||||||||||
Net cash provided by (used in) financing activities | 74 | 51 | 52 | ||||||||||
Net increase in cash and cash equivalents | 7,258 | 5,234 | (5,101 | ) | |||||||||
Cash and cash equivalents, beginning of year | 8,578 | 3,344 | 8,445 | ||||||||||
Cash and cash equivalents, end of year | $ | 15,836 | $ | 8,578 | $ | 3,344 | |||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
General | General |
First Acceptance Corporation (the “Company”) is a holding company based in Nashville, Tennessee with operating subsidiaries whose primary operations include the selling, servicing and underwriting of non-standard personal automobile insurance and related products. The Company writes non-standard personal automobile insurance in 12 states and is licensed as an insurer in 13 additional states. The Company issues policies of insurance through three wholly-owned subsidiaries: First Acceptance Insurance Company, Inc., First Acceptance Insurance Company of Georgia, Inc. and First Acceptance Insurance Company of Tennessee, Inc. (collectively, the “Insurance Companies”). | |
Basis of Consolidation and Reporting | Basis of Consolidation and Reporting |
The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries which are all wholly owned. The accounts of First Acceptance Statutory Trust I (“FAST I”) are not consolidated since it does not meet the requirements for consolidation of FASB ASC 810, Consolidation (see Note 10). These financial statements have been prepared in conformity with U.S. generally accepted accounting principles. All intercompany accounts and transactions have been eliminated in consolidation. | |
Use of Estimates | Use of Estimates |
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. It also requires disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported revenues and expenses during the period. Actual results could differ from those estimates. | |
Investments | Investments |
Investments, available-for-sale at fair value, include bonds with fixed principal payment schedules and mortgage-backed securities which are amortized using the retrospective method. These securities and investments in mutual funds are carried at fair value with the corresponding unrealized appreciation or depreciation, net of deferred income taxes, reported in other comprehensive income (loss). | |
Premiums and discounts on collateralized mortgage obligations (“CMOs”) are amortized over a period based on estimated future principal payments, including prepayments. Prepayment assumptions are reviewed periodically and adjusted to reflect actual prepayments and changes in expectations. The most significant determinants of prepayments are the difference between interest rates on the underlying mortgages and the current mortgage loan rates and the structure of the security. Other factors affecting prepayments include the size, type and age of underlying mortgages, the geographic location of the mortgaged properties and the credit worthiness of the borrowers. Variations from anticipated prepayments will affect the life and yield of these securities. | |
Investment securities are exposed to various risks such as interest rate, market and credit risk. Fair values of securities fluctuate based on changing market conditions. Significant changes in market conditions could materially affect portfolio value in the near term. Management reviews investments for impairment on a quarterly basis. Fair values of investments are based on prices quoted in the most active market for each security. If quoted prices are not available, fair value is estimated based on the fair value of comparable securities, discounted cash flow models or similar methods. Any decline in the fair value of any available-for-sale security below cost that is deemed to be other-than-temporary would result in a reduction in the amortized cost of the security. | |
If management can assert that it does not intend to sell an impaired fixed maturity security and it is more likely than not that it will not have to sell the security before recovery of its amortized cost basis, then an entity must separate other-than-temporary impairments (“OTTI”) into the following two components: (i) the amount related to credit losses (charged against income) and (ii) the amount related to all other factors (recorded in other comprehensive income). The credit-related portion of an OTTI is measured by comparing a security’s amortized cost to the present value of its current expected cash flows discounted at its effective yield prior to the impairment charge. If management intends to sell an impaired security, or it is more likely than not that it will be required to sell the security before recovery, an impairment charge is required to reduce the amortized cost of that security to fair value. | |
Realized gains and losses on sales and redemptions of securities are computed based on specific identification. | |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Cash and cash equivalents consist of bank demand deposits and highly-liquid investments including overnight collateralized repurchase agreements. All investments with maturities of three months or less at the date of purchase are considered cash equivalents. | |
Other Investments | Other Investments |
Other investments consist of limited partnership interests and an investment in the common stock of a real estate investment trust (“REIT”). Limited partnership interests are recorded at net asset value or the equity method of accounting if the Company is deemed to have significant influence as a result of its ownership percentage. Based on the underlying investments of the limited partnerships, their carrying value approximates fair value. Valuations are based upon the GAAP financial statements of the partnerships which are required to be audited annually. The common stock of the REIT is recorded at a fair value with the corresponding unrealized appreciation or depreciation, net of deferred income taxes, reported in other comprehensive income (loss). | |
The change in net asset value of limited partnership interests and any dividends paid by the REIT are recorded in investment income in the consolidated statements of comprehensive income (loss). | |
Revenue Recognition | Revenue Recognition |
Insurance premiums earned include policy and renewal fees and are recognized on a pro-rata basis over the respective terms of the policies. Written premiums are recorded as of the effective date of the policies for the full policy premium, although most policyholders elect to pay on a monthly installment basis. Premiums and fees are generally collected in advance of providing risk coverage, minimizing the Company’s exposure to credit risk. Premiums receivable are recorded net of an estimated allowance for uncollectible amounts. | |
Commission and fee income includes installment fees recognized when billed, commissions and fees from ancillary products recognized on a pro-rata basis over the respective terms of the contracts, and commissions and related policy fees, written for third-party insurance companies, recognized, at the date the customer is initially billed or as of the effective date of the insurance policy, whichever is later. | |
Income Taxes | Income Taxes |
Income taxes are accounted for under the liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | |
A valuation allowance for the deferred taxes is established based upon management’s estimate of whether it is more likely than not that the Company would not realize tax benefits in future periods to the full extent available. Changes in the valuation allowance are recognized in income during the period in which the circumstances that cause such a change in management’s estimate occur. | |
The Company accounts for income tax uncertainties under the provisions of FASB ASC 740, Income Taxes. The Company has recognized no additional liability or reduction in deferred tax assets for unrecognized tax benefits at December 31, 2014 and 2013. Any interest and penalties incurred in connection with income taxes are recorded as a component of the provision for income taxes. The Company is generally not subject to U.S. federal, state or local income tax examinations by tax authorities for taxable years prior to 2010. | |
Property and Equipment | Property and Equipment |
Property and equipment are initially recorded at cost. Depreciation is provided over the estimated useful lives of the assets (generally ranging from three to seven years) using the straight-line method. Leasehold improvements are amortized over the shorter of the lives of the respective leases or the service lives of the improvements. Repairs and maintenance are charged to expense as incurred. Equipment under capitalized lease obligations is stated at the present value of the minimum lease payments at the beginning of the lease term. | |
Foreclosed Real Estate Held for Sale | Foreclosed Real Estate Held for Sale |
Foreclosed real estate held for sale is recorded at the lower of cost or fair value less estimated costs to sell. The Company periodically reviews its portfolio of foreclosed real estate held for sale using current information including (i) independent appraisals, (ii) general economic factors affecting the area where the property is located, (iii) recent sales activity and asking prices for comparable properties and (iv) costs to sell and/or develop that would serve to lower the expected proceeds from the disposal of the real estate. Gains (losses) realized on liquidation are recorded directly to operations and included in revenues. Foreclosed real estate held for sale assets of $0.8 million at December 31, 2014 and 2013 are included within other assets in the accompanying consolidated balance sheets. | |
Deferred Acquisition Costs | Deferred Acquisition Costs |
Deferred acquisition costs include premium taxes and other variable underwriting and direct sales costs incurred in connection with writing successful new and renewal business. These costs are deferred and amortized over the policy period in which the related premiums are earned, to the extent that such costs are deemed recoverable from future unearned premiums and anticipated investment income. Advertising costs are expensed when incurred and are not a part of deferred acquisition costs. Amortization expense for the years ended December 31, 2014, 2013 and 2012 was $11.4 million, $11.1 million and $11.4 million, respectively, and is included within insurance operating expenses in the accompanying consolidated statements of operations and comprehensive income (loss). | |
Identifiable Intangible Assets | Identifiable Intangible Assets |
Identifiable intangible assets are attributable to the Company’s insurance operations and were initially recorded at their estimated fair values at the date of acquisition. Identifiable intangible assets, primarily comprised of trade names, having an indefinite useful life, are not amortized for financial statement purposes. The Company performs required annual impairment tests of its identifiable intangible assets as of June 30th of each fiscal year. In the event that facts and circumstances indicate that the identifiable intangible assets may be impaired, an interim impairment test would be required. | |
The Company follows the guidelines of ASU 2012-02, Intangibles — Goodwill and Other (Topic 350), which allows companies to waive comparing the fair value of indefinite-lived intangible assets to their carrying amounts in assessing the recoverability of these assets if, based on qualitative factors, it is more likely than not that the fair value of the indefinite-lived intangible assets is greater than their carrying amounts. | |
Loss and Loss Adjustment Expense Reserves | Loss and Loss Adjustment Expense Reserves |
Loss and loss adjustment expense reserves are undiscounted and represent case-basis estimates of reported losses and estimates based on certain actuarial assumptions regarding the past experience of reported losses, including an estimate of losses incurred but not reported. Management believes that the loss and loss adjustment reserves are adequate to cover the ultimate associated liability. However, such estimates may be more or less than the amount ultimately paid when the claims are finally settled. | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
In October 2010, the FASB issued Accounting Standards Update (“ASU”) No. 2010-26, Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts (a consensus of the FASB Emerging Issues Task Force) (Topic 944), which clarifies what costs should be deferred by insurance companies when issuing or renewing insurance contracts. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2011. The Company adopted this standard on a prospective basis on January 1, 2012 and, in connection therewith, recognized additional expense of $0.4 million over the first six months of 2012, consistent with the Company’s insurance policy terms and estimated deferred acquisition costs amortization period. | |
In May 2011, the FASB issued ASU No. 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs, which amends certain measurement and disclosure requirements related to fair value measurements to improve consistency with international reporting standards. The Company adopted the provisions of this guidance in the quarter ended March 31, 2012. The adoption of this guidance did not have an impact on the Company’s financial position or results of operations. | |
In June 2011, the FASB issued ASU No. 2011-05, Presentation of Comprehensive Income, which requires a company to present components of net income and other comprehensive income in one continuous statement or in two separate, but consecutive statements. There are no changes to the components that are recognized in net income or other comprehensive income under current GAAP. The Company adopted the provisions of this guidance in the quarter ended March 31, 2012. The adoption of this guidance did not have an impact on the Company’s financial position or results of operations, other than the presentation thereof. | |
In September 2011, the FASB issued ASU 2011-08, Intangibles — Goodwill and Other (Topic 350), which allows companies to waive comparing the fair value of a reporting unit to its carrying amount in assessing the recoverability of goodwill if, based on qualitative factors, it is more likely than not that the fair value of a reporting unit is greater than its carrying amount. The Company adopted the provisions of this guidance in the quarter ended March 31, 2012. The adoption of this guidance did not have an impact on the Company’s financial position or results of operations. | |
In July 2012, the FASB issued ASU 2012-02, Intangibles — Goodwill and Other (Topic 350), which allows companies to waive comparing the fair value of indefinite-lived intangible assets to their carrying amounts in assessing the recoverability of these assets if, based on qualitative factors, it is more likely than not that the fair value of the indefinite-lived intangible assets is greater than their carrying amounts. The Company early adopted the provisions of this guidance in the quarter ended June 30, 2012. The adoption of this guidance did not have an impact on the Company’s financial position or results of operations. | |
In February 2013, the FASB issued ASU No. 2013-02, Presentation of Comprehensive Income, which requires a company to provide information about the amounts reclassified out of accumulated other comprehensive income by component. There are no changes to the components that are recognized in net income or other comprehensive income under current GAAP. The Company adopted the provisions of this guidance in the quarter ended March 31, 2013. The adoption of this guidance did not have an impact on the Company’s financial position or results of operations, other than the presentation thereof. | |
In May 2014, the FASB and the International Accounting Standards Board (“IASB”) jointly issued a new revenue recognition standard, ASU No. 2014-09, “Revenue from Contracts with Customers”, that will supersede virtually all revenue recognition guidance in GAAP and International Financial Reporting Standards (“IFRS”). This guidance has an effective date for public companies for annual and interim periods beginning after December 15, 2016, with early adoption not permitted. The standard is intended to increase comparability across industries and jurisdictions. The underlying principle of the new standard is that a business or other organization will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects what it expects in exchange for the goods or services. The new standard will not change accounting guidance for insurance contracts. However, the Company is currently evaluating this guidance as it relates to non-insurance arrangements and any impact it will have on future consolidated financial statements. At this time the impact is unknown. | |
In June 2014, the FASB made a decision to require insurance companies to make additional disclosures about short-term duration contracts. This guidance has an effective date for public companies for annual reporting periods beginning after December 15, 2014 and interim reporting periods beginning after December 15, 2015, with early adoption permitted. The Company believes that it will be reasonably able to comply with these requirements. | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information |
During the years ended December 31, 2014, 2013 and 2012, the Company paid $0.7 million, $0.5 million and $0.2 million, respectively, in income taxes and $1.7 million, $1.7 million and $3.0 million, respectively, in interest. | |
Basic and Diluted Net Income (Loss) Per Share | Basic and Diluted Net Income (Loss) Per Share |
Basic net income (loss) per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares, while diluted net income (loss) per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of such common shares and dilutive share equivalents. Dilutive share equivalents result from the assumed exercise of employee stock options and vesting of restricted common stock and are calculated using the treasury stock method. |
Fair_Value_Tables
Fair Value (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Presentation of Carrying Values and Fair Values of Certain of Company's Financial Instruments | The carrying values and fair values of certain of the Company’s financial instruments were as follows (in thousands). | ||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||
Value | Value | Value | Value | ||||||||||||||
Assets: | |||||||||||||||||
Investments, available-for-sale | $ | 125,085 | $ | 125,085 | $ | 130,248 | $ | 130,248 | |||||||||
Other investments | 10,530 | 10,530 | 7,513 | 7,513 | |||||||||||||
Liabilities: | |||||||||||||||||
Debentures payable | 40,341 | 19,606 | 40,301 | 15,006 | |||||||||||||
Presentation of Fair-Value Measurements for Each Major Category of Assets Measured on Recurring Basis | The following tables present the fair-value measurements for each major category of assets that are measured on a recurring basis (in thousands). | ||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
December 31, 2014 | Total | Quoted Prices | Significant | Significant | |||||||||||||
in Active | Other | Unobservable | |||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||
Assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Fixed maturities, available-for-sale: | |||||||||||||||||
U.S. government and agencies | $ | 8,290 | $ | 8,290 | $ | — | $ | — | |||||||||
State | 725 | — | 725 | — | |||||||||||||
Political subdivisions | 506 | — | 506 | — | |||||||||||||
Revenue and assessment | 16,360 | — | 16,360 | — | |||||||||||||
Corporate bonds | 75,119 | — | 75,119 | — | |||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||
Agency backed | 4,807 | — | 4,807 | — | |||||||||||||
Non-agency backed – residential | 4,137 | — | 4,137 | — | |||||||||||||
Non-agency backed – commercial | 3,078 | — | 3,078 | — | |||||||||||||
Total fixed maturities, available-for-sale | 113,022 | 8,290 | 104,732 | — | |||||||||||||
Preferred stock, available-for-sale | 1,767 | 1,767 | — | — | |||||||||||||
Mutual funds, available-for-sale | 10,296 | 10,296 | — | — | |||||||||||||
Total investments, available-for-sale | 125,085 | 20,353 | 104,732 | — | |||||||||||||
Other investments | 10,530 | — | — | 10,530 | |||||||||||||
Cash and cash equivalents | 102,429 | 102,429 | — | — | |||||||||||||
Total | $ | 238,044 | $ | 122,782 | $ | 104,732 | $ | 10,530 | |||||||||
Fair Value Measurements Using | |||||||||||||||||
December 31, 2013 | Total | Quoted Prices | Significant | Significant | |||||||||||||
in Active | Other | Unobservable | |||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||
Assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Fixed maturities, available-for-sale: | |||||||||||||||||
U.S. government and agencies | $ | 12,485 | $ | 12,485 | $ | — | $ | — | |||||||||
State | 736 | — | 736 | — | |||||||||||||
Political subdivisions | 1,652 | — | 1,652 | — | |||||||||||||
Revenue and assessment | 13,618 | — | 13,618 | — | |||||||||||||
Corporate bonds | 73,325 | — | 73,325 | — | |||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||
Agency backed | 7,514 | — | 7,514 | — | |||||||||||||
Non-agency backed – residential | 4,660 | — | 4,660 | — | |||||||||||||
Non-agency backed – commercial | 3,943 | — | 3,943 | — | |||||||||||||
Total fixed maturities, available-for-sale | 117,933 | 12,485 | 105,448 | — | |||||||||||||
Preferred stock, available-for-sale | 1,578 | 1,578 | — | — | |||||||||||||
Mutual funds, available-for-sale | 10,737 | 10,737 | — | — | |||||||||||||
Total investments, available-for-sale | 130,248 | 24,800 | 105,448 | — | |||||||||||||
Other investments | 7,513 | — | — | 7,513 | |||||||||||||
Cash and cash equivalents | 72,033 | 72,033 | — | — | |||||||||||||
Total | $ | 209,794 | $ | 96,833 | $ | 105,448 | $ | 7,513 | |||||||||
Quantitative Disclosure for Assets Classified as Level 3 | The following table represents the quantitative disclosure for those assets classified as Level 3 during the year ended December 31, 2014 (in thousands). | ||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Significant Unobservable Inputs (Level 3) | |||||||||||||||||
Limited partnership interests | |||||||||||||||||
carried at | |||||||||||||||||
Net Asset | Equity | Common Stock at Fair Value | Total | ||||||||||||||
Value | Method | ||||||||||||||||
Balance at December 31, 2013 | $ | 3,314 | $ | 4,199 | $ | — | $ | 7,513 | |||||||||
Gains included in net income | 81 | 4 | — | 85 | |||||||||||||
Gains included in comprehensive income | — | — | 47 | 47 | |||||||||||||
Investments and capital calls | 2,180 | — | 900 | 3,080 | |||||||||||||
Distributions received | (195 | ) | — | — | (195 | ) | |||||||||||
Transfers into and out of Level 3 | — | — | — | — | |||||||||||||
Balance at December 31, 2014 | $ | 5,380 | $ | 4,203 | $ | 947 | $ | 10,530 | |||||||||
Investments_Tables
Investments (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Investments Debt And Equity Securities [Abstract] | |||||||||||||||||||||||||
Summary of Company's Investment Securities | The following tables summarize the Company’s investment securities (in thousands). | ||||||||||||||||||||||||
December 31, 2014 | Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
U.S. government and agencies | $ | 8,039 | $ | 277 | $ | -26 | $ | 8,290 | |||||||||||||||||
State | 698 | 27 | — | 725 | |||||||||||||||||||||
Political subdivisions | 500 | 6 | — | 506 | |||||||||||||||||||||
Revenue and assessment | 14,856 | 1,522 | -18 | 16,360 | |||||||||||||||||||||
Corporate bonds | 73,051 | 2,698 | -630 | 75,119 | |||||||||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||||||
Agency backed | 4,647 | 160 | — | 4,807 | |||||||||||||||||||||
Non-agency backed – residential | 3,513 | 624 | — | 4,137 | |||||||||||||||||||||
Non-agency backed – commercial | 2,414 | 664 | — | 3,078 | |||||||||||||||||||||
Total fixed maturities, available-for-sale | 107,718 | 5,978 | -674 | 113,022 | |||||||||||||||||||||
Preferred stock, available-for-sale | 1,500 | 267 | — | 1,767 | |||||||||||||||||||||
Mutual funds, available-for-sale | 9,901 | 403 | -8 | 10,296 | |||||||||||||||||||||
$ | 119,119 | $ | 6,648 | $ | -682 | $ | 125,085 | ||||||||||||||||||
December 31, 2013 | Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
U.S. government and agencies | $ | 12,006 | $ | 495 | $ | (16 | ) | $ | 12,485 | ||||||||||||||||
State | 697 | 39 | — | 736 | |||||||||||||||||||||
Political subdivisions | 1,601 | 51 | — | 1,652 | |||||||||||||||||||||
Revenue and assessment | 13,050 | 579 | (11 | ) | 13,618 | ||||||||||||||||||||
Corporate bonds | 73,461 | 2,127 | (2,263 | ) | 73,325 | ||||||||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||||||
Agency backed | 7,113 | 401 | — | 7,514 | |||||||||||||||||||||
Non-agency backed – residential | 4,181 | 480 | (1 | ) | 4,660 | ||||||||||||||||||||
Non-agency backed – commercial | 3,363 | 580 | — | 3,943 | |||||||||||||||||||||
Total fixed maturities, available-for-sale | 115,472 | 4,752 | (2,291 | ) | 117,933 | ||||||||||||||||||||
Preferred stock, available-for-sale | 1,500 | 78 | — | 1,578 | |||||||||||||||||||||
Mutual funds, available-for-sale | 9,901 | 836 | — | 10,737 | |||||||||||||||||||||
$ | 126,873 | $ | 5,666 | $ | (2,291 | ) | $ | 130,248 | |||||||||||||||||
Scheduled Maturities of Company's Fixed Maturity Securities Based on their Fair Values | The following tables set forth the scheduled maturities of the Company’s fixed maturity securities based on their fair values (in thousands). Actual maturities may differ from contractual maturities because certain securities may be called or prepaid by the issuers. | ||||||||||||||||||||||||
December 31, 2014 | Securities | Securities | Securities | All | |||||||||||||||||||||
with | with | with No | Fixed | ||||||||||||||||||||||
Unrealized | Unrealized | Unrealized | Maturity | ||||||||||||||||||||||
Gains | Losses | Gains or | Securities | ||||||||||||||||||||||
Losses | |||||||||||||||||||||||||
One year or less | $ | 8,791 | $ | — | $ | — | $ | 8,791 | |||||||||||||||||
After one through five years | 22,140 | 12,888 | — | 35,028 | |||||||||||||||||||||
After five through ten years | 24,980 | 21,450 | — | 46,430 | |||||||||||||||||||||
After ten years | 9,009 | 1,742 | — | 10,751 | |||||||||||||||||||||
No single maturity date | 12,022 | — | — | 12,022 | |||||||||||||||||||||
$ | 76,942 | $ | 36,080 | $ | — | $ | 113,022 | ||||||||||||||||||
December 31, 2013 | Securities | Securities | Securities | All | |||||||||||||||||||||
with | with | with No | Fixed | ||||||||||||||||||||||
Unrealized | Unrealized | Unrealized | Maturity | ||||||||||||||||||||||
Gains | Losses | Gains or | Securities | ||||||||||||||||||||||
Losses | |||||||||||||||||||||||||
One year or less | $ | 14,305 | $ | — | $ | — | $ | 14,305 | |||||||||||||||||
After one through five years | 25,667 | 10,888 | — | 36,555 | |||||||||||||||||||||
After five through ten years | 20,445 | 22,836 | — | 43,281 | |||||||||||||||||||||
After ten years | 3,667 | 4,008 | — | 7,675 | |||||||||||||||||||||
No single maturity date | 15,928 | 189 | — | 16,117 | |||||||||||||||||||||
$ | 80,012 | $ | 37,921 | $ | — | $ | 117,933 | ||||||||||||||||||
Fair Value and Gross Unrealized Losses of Investments, Available-for-Sale, by the Length of Time | The fair value and gross unrealized losses of investments, available-for-sale, by the length of time that individual securities have been in a continuous unrealized loss position follows (in thousands). | ||||||||||||||||||||||||
December 31, 2014 | Less than 12 months | 12 months or longer | Total Gross | ||||||||||||||||||||||
Unrealized | |||||||||||||||||||||||||
Fair | Gross | Fair | Gross | Losses | |||||||||||||||||||||
Value | Unrealized | Value | Unrealized | ||||||||||||||||||||||
Losses | Losses | ||||||||||||||||||||||||
U.S. government and agencies | $ | 5,012 | $ | -26 | $ | — | $ | — | $ | -26 | |||||||||||||||
State | — | — | — | — | — | ||||||||||||||||||||
Political subdivisions | — | — | — | — | — | ||||||||||||||||||||
Revenue and assessment | 2,820 | -18 | — | — | -18 | ||||||||||||||||||||
Corporate bonds | 7,681 | -38 | 20,567 | -592 | -630 | ||||||||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||||||
Agency backed | — | — | — | — | — | ||||||||||||||||||||
Non-agency backed – residential | — | — | — | — | — | ||||||||||||||||||||
Non-agency backed – commercial | — | — | — | — | — | ||||||||||||||||||||
Total fixed maturities, available-for-sale | 15,513 | -82 | 20,567 | -592 | -674 | ||||||||||||||||||||
Preferred stock, available-for-sale | — | — | — | — | — | ||||||||||||||||||||
Mutual funds, available-for-sale | 1,992 | -8 | — | — | -8 | ||||||||||||||||||||
$ | 17,505 | $ | -90 | $ | 20,567 | $ | -592 | $ | -682 | ||||||||||||||||
December 31, 2013 | Less than 12 months | 12 months or longer | Total Gross | ||||||||||||||||||||||
Unrealized | |||||||||||||||||||||||||
Fair | Gross | Fair | Gross | Losses | |||||||||||||||||||||
Value | Unrealized | Value | Unrealized | ||||||||||||||||||||||
Losses | Losses | ||||||||||||||||||||||||
U.S. government and agencies | $ | 988 | $ | (16 | ) | $ | — | $ | — | $ | (16 | ) | |||||||||||||
State | — | — | — | — | — | ||||||||||||||||||||
Political subdivisions | — | — | — | — | — | ||||||||||||||||||||
Revenue and assessment | 983 | (11 | ) | — | — | (11 | ) | ||||||||||||||||||
Corporate bonds | 21,781 | (993 | ) | 13,980 | (1,270 | ) | (2,263 | ) | |||||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||||||
Agency backed | — | — | — | — | — | ||||||||||||||||||||
Non-agency backed – residential | 189 | (1 | ) | — | — | (1 | ) | ||||||||||||||||||
Non-agency backed – commercial | — | — | — | — | — | ||||||||||||||||||||
Total fixed maturities, available-for-sale | 23,941 | (1,021 | ) | 13,980 | (1,270 | ) | (2,291 | ) | |||||||||||||||||
Preferred stock, available-for-sale | — | — | — | — | — | ||||||||||||||||||||
Mutual funds, available-for-sale | — | — | — | — | — | ||||||||||||||||||||
$ | 23,941 | $ | (1,021 | ) | $ | 13,980 | $ | (1,270 | ) | $ | (2,291 | ) | |||||||||||||
Number of Fixed Maturity Securities with Gross Unrealized Gains and Losses | The following table reflects the number of fixed maturity securities with gross unrealized gains and losses. Gross unrealized losses are further segregated by the length of time that individual securities have been in a continuous unrealized loss position. | ||||||||||||||||||||||||
At: | Gross Unrealized Losses | Gross | |||||||||||||||||||||||
Unrealized | |||||||||||||||||||||||||
Less than | Greater | Gains | |||||||||||||||||||||||
or equal to | than 12 | ||||||||||||||||||||||||
12 months | months | ||||||||||||||||||||||||
December 31, 2014 | 9 | 9 | 80 | ||||||||||||||||||||||
December 31, 2013 | 12 | 7 | 83 | ||||||||||||||||||||||
Fair Value and Gross Unrealized Losses of Fixed Maturity Securities in Continuous Unrealized Loss Position for Greater than 12 Months | The following tables reflect the fair value and gross unrealized losses of those fixed maturity securities in a continuous unrealized loss position for greater than 12 months. Gross unrealized losses are further segregated by the percentage of amortized cost (in thousands, except number of securities). | ||||||||||||||||||||||||
Gross Unrealized Losses | Number | Fair | Gross | ||||||||||||||||||||||
at December 31, 2014: | of | Value | Unrealized | ||||||||||||||||||||||
Securities | Losses | ||||||||||||||||||||||||
Less than or equal to 10% | 9 | $ | 20,567 | $ | -592 | ||||||||||||||||||||
Greater than 10% | — | — | — | ||||||||||||||||||||||
9 | $ | 20,567 | $ | -592 | |||||||||||||||||||||
Gross Unrealized Losses | Number | Fair | Gross | ||||||||||||||||||||||
at December 31, 2013: | of | Value | Unrealized | ||||||||||||||||||||||
Securities | Losses | ||||||||||||||||||||||||
Less than or equal to 10% | 7 | $ | 13,980 | $ | (1,270 | ) | |||||||||||||||||||
Greater than 10% | — | — | — | ||||||||||||||||||||||
7 | $ | 13,980 | $ | (1,270 | ) | ||||||||||||||||||||
Gross Unrealized Losses by Current Severity and Length of Time that Individual Securities have been in Continuous Unrealized Loss Position | The following tables set forth the amount of gross unrealized losses by current severity (as compared to amortized cost) and length of time that individual securities have been in a continuous unrealized loss position (in thousands). | ||||||||||||||||||||||||
Length of | Fair Value of | Gross | Severity of Gross Unrealized Losses | ||||||||||||||||||||||
Gross Unrealized Losses | Securities with | Unrealized | |||||||||||||||||||||||
at December 31, 2014: | Gross | Losses | |||||||||||||||||||||||
Unrealized | |||||||||||||||||||||||||
Losses | Less | 5% to | Greater | ||||||||||||||||||||||
than 5% | 10% | than | |||||||||||||||||||||||
10% | |||||||||||||||||||||||||
Less than or equal to: | |||||||||||||||||||||||||
Three months | $ | 17,505 | $ | -90 | $ | (90 | ) | $ | — | $ | — | ||||||||||||||
Six months | — | — | — | — | — | ||||||||||||||||||||
Nine months | — | — | — | — | — | ||||||||||||||||||||
Twelve months | — | — | — | — | — | ||||||||||||||||||||
Greater than twelve months | 20,567 | -592 | -592 | — | — | ||||||||||||||||||||
Total | $ | 38,072 | $ | -682 | $ | -682 | $ | — | $ | — | |||||||||||||||
Length of | Fair Value of | Gross | Severity of Gross Unrealized Losses | ||||||||||||||||||||||
Gross Unrealized Losses | Securities with | Unrealized | |||||||||||||||||||||||
at December 31, 2013: | Gross | Losses | |||||||||||||||||||||||
Unrealized | |||||||||||||||||||||||||
Losses | Less | 5% to | Greater | ||||||||||||||||||||||
than 5% | 10% | than | |||||||||||||||||||||||
10% | |||||||||||||||||||||||||
Less than or equal to: | |||||||||||||||||||||||||
Three months | $ | 6,417 | $ | (40 | ) | $ | (40 | ) | $ | — | $ | — | |||||||||||||
Six months | 1,653 | (129 | ) | — | (129 | ) | — | ||||||||||||||||||
Nine months | 15,871 | (852 | ) | (153 | ) | (699 | ) | — | |||||||||||||||||
Twelve months | — | — | — | — | — | ||||||||||||||||||||
Greater than twelve months | 13,980 | (1,270 | ) | (85 | ) | (1,185 | ) | — | |||||||||||||||||
Total | $ | 37,921 | $ | (2,291 | ) | $ | (278 | ) | $ | (2,013 | ) | $ | — | ||||||||||||
Major Categories of Investment Income | The major categories of investment income follow (in thousands). | ||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Fixed maturities, available-for-sale | $ | 4,481 | $ | 4,914 | $ | 6,434 | |||||||||||||||||||
Mutual funds, available-for-sale | 832 | 766 | 613 | ||||||||||||||||||||||
Other investments | 85 | 399 | — | ||||||||||||||||||||||
Other | 214 | 213 | 171 | ||||||||||||||||||||||
Investment expenses | (489 | ) | (576 | ) | (619 | ) | |||||||||||||||||||
$ | 5,123 | $ | 5,716 | $ | 6,599 | ||||||||||||||||||||
Components of Net Realized Gains (Losses) on Investments, Available-For-Sale at Fair Value | The components of net realized gains (losses) on investments, available-for-sale follow (in thousands). | ||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Gains | $ | 85 | $ | 100 | $ | 3,296 | |||||||||||||||||||
Losses | (62 | ) | (68 | ) | (31 | ) | |||||||||||||||||||
Other-than-temporary impairment | — | (61 | ) | (23 | ) | ||||||||||||||||||||
$ | 23 | $ | (29 | ) | $ | 3,242 | |||||||||||||||||||
Number and Amount of Securities for which Company has Recognized OTTI Charges in Net Income (Loss) | The number and amount of securities for which the Company has recognized OTTI charges in net income (loss) are presented in the following tables (in thousands, except for the number of securities). | ||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Number | OTTI | Number | OTTI | Number | OTTI | ||||||||||||||||||||
of | of | of | |||||||||||||||||||||||
Securities | Securities | Securities | |||||||||||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||||||
Non-agency backed – residential | — | $ | — | 1 | $ | (61 | ) | 2 | $ | (8 | ) | ||||||||||||||
Non-agency backed – commercial | — | — | — | — | 1 | (15 | ) | ||||||||||||||||||
— | — | 1 | (61 | ) | 3 | (23 | ) | ||||||||||||||||||
Portion of loss recognized in accumulated other comprehensive income (loss) | — | — | — | ||||||||||||||||||||||
Net OTTI recognized in net income (loss) | $ | — | $ | (61 | ) | $ | (23 | ) | |||||||||||||||||
Progression of Credit-Related Portion of OTTI on Investments | The following is a progression of the credit-related portion of OTTI on investments owned at December 31, 2014, 2013 and 2012 (in thousands). | ||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Beginning balance | $ | (2,632 | ) | $ | (2,666 | ) | $ | (3,425 | ) | ||||||||||||||||
Additional credit impairments on: | |||||||||||||||||||||||||
Previously impaired securities | — | (61 | ) | (23 | ) | ||||||||||||||||||||
Securities without previous impairments | — | — | — | ||||||||||||||||||||||
— | (61 | ) | (23 | ) | |||||||||||||||||||||
Reductions for securities sold (realized) | — | 95 | 782 | ||||||||||||||||||||||
$ | (2,632 | ) | $ | (2,632 | ) | $ | (2,666 | ) | |||||||||||||||||
Reinsurance_Tables
Reinsurance (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Insurance [Abstract] | |||||||||||||||||||||||||
Effects of Reinsurance Premium Written and Earned | Total premiums written and earned are summarized as follows (in thousands). | ||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Written | Earned | Written | Earned | Written | Earned | ||||||||||||||||||||
Direct | $ | 200,983 | $ | 191,093 | $ | 177,376 | $ | 176,588 | $ | 168,990 | $ | 164,715 | |||||||||||||
Assumed | 29,311 | 27,487 | 23,768 | 23,313 | 21,517 | 21,121 | |||||||||||||||||||
Ceded | (265 | ) | (265 | ) | (201 | ) | (201 | ) | (192 | ) | (192 | ) | |||||||||||||
Total | $ | 230,029 | $ | 218,315 | $ | 200,943 | $ | 199,700 | $ | 190,315 | $ | 185,644 | |||||||||||||
Ceded Premiums Earned and Reinsurance Recoveries on Losses and Loss Adjustment Expenses | Ceded premiums earned and reinsurance recoveries on losses and loss adjustment expenses were as follows (in thousands): | ||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Ceded premiums earned | $ | 265 | $ | 201 | $ | 192 | |||||||||||||||||||
Reinsurance recoveries on losses and loss adjustment expenses | $ | 137 | $ | 285 | $ | 163 | |||||||||||||||||||
StockBased_Compensation_Plans_
Stock-Based Compensation Plans (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||||||||||||||||
Summary of the Activity for the Company's Stock Option Awards | A summary of the activity for the Company’s Stock Option Awards is presented below (in thousands, except per share data). | ||||||||||||||||
Options | Exercise | Weighted | Aggregate | ||||||||||||||
Price | Average | Intrinsic | |||||||||||||||
Exercise | Value | ||||||||||||||||
Price | |||||||||||||||||
Options outstanding at December 31, 2011 | 4,500 | $3.00-$8.13 | $ | 3.06 | |||||||||||||
Granted | 825 | $1.45 | $ | 1.45 | |||||||||||||
Forfeited | (3,730 | ) | $3.00-$3.04 | $ | 3 | ||||||||||||
Options outstanding at December 31, 2012 | 1,595 | $1.45-$8.13 | $ | 2.38 | |||||||||||||
Forfeited | (358 | ) | $3.04 | $ | 3.04 | ||||||||||||
Options outstanding at December 31, 2013 | 1,237 | $1.45-$8.13 | $ | 2.19 | |||||||||||||
Forfeited | (117 | ) | $5.22 | $ | 5.22 | ||||||||||||
Options outstanding at December 31, 2014 | 1,120 | $1.45-$3.04 | $ | 1.87 | $ | 908 | |||||||||||
Options exercisable/vested at December 31, 2014 | 940 | $ | 1.95 | $ | 710 | ||||||||||||
Summary of the Activity for the Company's Restricted Stock Awards | A summary of the activity for the Company’s Restricted Stock Awards is presented below (in thousands, except per share data). | ||||||||||||||||
Restricted | Weighted | ||||||||||||||||
Stock | Average | ||||||||||||||||
Awards | Grant Date | ||||||||||||||||
Fair Value | |||||||||||||||||
Restricted Stock Awards outstanding at December 31, 2011 | 95 | $ | 2.36 | ||||||||||||||
Vested | (34 | ) | $ | 2.36 | |||||||||||||
Forfeited | (1 | ) | $ | 2.5 | |||||||||||||
Restricted Stock Awards outstanding at December 31, 2012 | 60 | $ | 2.35 | ||||||||||||||
Vested | (29 | ) | $ | 2.38 | |||||||||||||
Forfeited | (14 | ) | $ | 2.36 | |||||||||||||
Restricted Stock Awards outstanding at December 31, 2013 | 17 | $ | 2.29 | ||||||||||||||
Vested | (17 | ) | $ | 2.29 | |||||||||||||
Restricted Stock Awards outstanding at December 31, 2014 | - | $ | 0 | ||||||||||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property Plant And Equipment [Abstract] | |||||||||
Components of Property and Equipment | The components of property and equipment are as follows (in thousands). | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Furniture and equipment | $ | 10,660 | $ | 9,736 | |||||
Leasehold improvements | 5,000 | 4,999 | |||||||
Capitalized leases | 238 | 238 | |||||||
Aircraft | 190 | 190 | |||||||
16,088 | 15,163 | ||||||||
Less: Accumulated depreciation | (12,915 | ) | (11,651 | ) | |||||
Property and equipment, net | $ | 3,173 | $ | 3,512 | |||||
Lease_Commitments_Tables
Lease Commitments (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Leases [Abstract] | |||||
Summary of Future Minimum Lease Payments | Future minimum lease payments under these agreements follow (in thousands). | ||||
Year Ending December 31, | Amount | ||||
2015 | $ | 6,819 | |||
2016 | 3,828 | ||||
2017 | 1,592 | ||||
2018 | 514 | ||||
2019 | 234 | ||||
Thereafter | 357 | ||||
Total | $ | 13,344 | |||
Losses_and_Loss_Adjustment_Exp1
Losses and Loss Adjustment Expenses Incurred and Paid (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Insurance [Abstract] | |||||||||||||
Information Regarding the Reserve for Unpaid Losses and LAE | Information regarding the reserve for unpaid losses and LAE is as follows (in thousands). | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Liability for unpaid losses and LAE at beginning of year, gross | $ | 84,286 | $ | 79,260 | $ | 69,436 | |||||||
Reinsurance balances receivable | -305 | (260 | ) | (187 | ) | ||||||||
Liability for unpaid losses and LAE at beginning of year, net | 83,981 | 79,000 | 69,249 | ||||||||||
Add: Provision for losses and LAE: | |||||||||||||
Current year | 166,185 | 145,877 | 144,207 | ||||||||||
Prior years | (4,883 | ) | (3,038 | ) | 4,016 | ||||||||
Net losses and LAE incurred | 161,302 | 142,839 | 148,223 | ||||||||||
Less: Losses and LAE paid: | |||||||||||||
Current year | 98,442 | 88,726 | 89,157 | ||||||||||
Prior years | 50,590 | 49,132 | 49,315 | ||||||||||
Net losses and LAE paid | 149,032 | 137,858 | 138,472 | ||||||||||
Liability for unpaid losses and LAE at end of year, net | 96,251 | 83,981 | 79,000 | ||||||||||
Reinsurance balances receivable | 362 | 305 | 260 | ||||||||||
Liability for unpaid losses and LAE at end of year, gross | $ | 96,613 | $ | 84,286 | $ | 79,260 | |||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Provision (Benefit) for Income Taxes | The provision (benefit) for income taxes consisted of the following (in thousands). | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Federal: | |||||||||||||
Current | $ | 228 | $ | 175 | $ | — | |||||||
Deferred | (19,098 | ) | (4 | ) | — | ||||||||
(18,870 | ) | 171 | — | ||||||||||
State: | |||||||||||||
Current | 650 | 476 | (8 | ) | |||||||||
Deferred | (125 | ) | 3 | 3 | |||||||||
525 | 479 | (5 | ) | ||||||||||
$ | (18,345 | ) | $ | 650 | $ | (5 | ) | ||||||
Provision (Benefit) for Income Taxes Differs from Amounts Computed by Applying Statutory Federal Corporate Tax Rate | The provision (benefit) for income taxes differs from the amounts computed by applying the statutory federal corporate tax rate of 35% to income (loss) before income taxes as a result of the following (in thousands). | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Provision (benefit) for income taxes at statutory rate | $ | 3,403 | $ | 3,440 | $ | (3,166 | ) | ||||||
Tax effect of: | |||||||||||||
Tax-exempt investment income | (21 | ) | (27 | ) | (18 | ) | |||||||
Change in the beginning of the year balance of the valuation allowance for deferred tax assets allocated to income taxes | (22,427 | ) | (4,277 | ) | 580 | ||||||||
Stock-based compensation | 137 | 1,133 | 2,552 | ||||||||||
State income taxes | 525 | 479 | (5 | ) | |||||||||
Other | 38 | (98 | ) | 52 | |||||||||
$ | (18,345 | ) | $ | 650 | $ | (5 | ) | ||||||
Summary of Net Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to the net deferred tax assets and liabilities are presented below (in thousands). | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Net operating loss carryforwards | $ | 6,180 | $ | 9,949 | |||||||||
Stock option compensation | 402 | 516 | |||||||||||
Unearned premiums and loss and loss adjustment expense reserves | 5,614 | 4,898 | |||||||||||
Goodwill and identifiable intangible assets | 5,404 | 6,311 | |||||||||||
Alternative minimum tax (“AMT”) credit carryforwards | 2,004 | 1,784 | |||||||||||
Accrued expenses and other nondeductible items | 1,201 | 1,182 | |||||||||||
Other | 3,127 | 1,875 | |||||||||||
23,932 | 26,515 | ||||||||||||
Deferred tax liabilities: | |||||||||||||
Deferred acquisition costs | (1,211 | ) | (1,016 | ) | |||||||||
Identifiable intangible assets | (1,872 | ) | (1,872 | ) | |||||||||
Net unrealized change on investments | (2,105 | ) | (1,181 | ) | |||||||||
Other | (460 | ) | — | ||||||||||
(5,648 | ) | (4,069 | ) | ||||||||||
Total net deferred tax asset | 18,284 | 22,446 | |||||||||||
Less: Valuation allowance | (1,763 | ) | (24,224 | ) | |||||||||
Net deferred tax asset (liability) | $ | 16,521 | $ | (1,778 | ) | ||||||||
Net_Income_Loss_Per_Share_Tabl
Net Income (Loss) Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Computation of Basic and Diluted Net Income (Loss) Per Share | The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands, except per share data). | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net income (loss) | $ | 28,068 | $ | 9,180 | $ | (9,040 | ) | ||||||
Weighted average common basic shares | 40,985 | 40,930 | 40,861 | ||||||||||
Effect of dilutive securities | 298 | 162 | — | ||||||||||
Weighted average common dilutive shares | 41,283 | 41,092 | 40,861 | ||||||||||
Basic net income (loss) per share | $ | 0.68 | $ | 0.22 | $ | (0.22 | ) | ||||||
Diluted net income (loss) per share | $ | 0.68 | $ | 0.22 | $ | (0.22 | ) | ||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Selected Financial Data by Business Segment | The following table presents selected financial data by business segment (in thousands). | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Revenues: | |||||||||||||
Insurance | $ | 263,133 | $ | 240,460 | $ | 227,966 | |||||||
Real estate and corporate | 61 | 52 | 93 | ||||||||||
Consolidated total | $ | 263,194 | $ | 240,512 | $ | 228,059 | |||||||
Income (loss) before income taxes: | |||||||||||||
Insurance | $ | 12,549 | $ | 12,748 | $ | (4,588 | ) | ||||||
Real estate and corporate | (2,826 | ) | (2,918 | ) | (4,457 | ) | |||||||
Consolidated total | $ | 9,723 | $ | 9,830 | $ | (9,045 | ) | ||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Total assets: | |||||||||||||
Insurance | $ | 302,529 | $ | 262,869 | |||||||||
Real estate and corporate | 26,046 | 10,838 | |||||||||||
Consolidated total | $ | 328,575 | $ | 273,707 | |||||||||
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Selected Quarterly Financial Data | Interim results are not necessarily indicative of fiscal year performance because of the impact of seasonal and short-term variations. Selected quarterly financial data is summarized as follows (in thousands, except per share data). | ||||||||||||||||
Total | Income | Net Income | Basic and | ||||||||||||||
Revenues | before | Diluted Net | |||||||||||||||
Income Taxes | Income | ||||||||||||||||
per Share | |||||||||||||||||
Year Ended December 31, 2014: | |||||||||||||||||
December 31, 2014 | $ | 67,928 | $ | 3,076 | $ | 21,968 | $ | 0.54 | |||||||||
September 30, 2014 | 65,604 | 2,377 | 2,120 | 0.05 | |||||||||||||
June 30, 2014 | 67,120 | 3,723 | 3,469 | 0.08 | |||||||||||||
March 31, 2014 | 62,542 | 547 | 511 | 0.01 | |||||||||||||
Year Ended December 31, 2013: | |||||||||||||||||
December 31, 2013 | $ | 59,152 | $ | 3,363 | $ | 3,158 | $ | 0.07 | |||||||||
September 30, 2013 | 59,578 | 2,096 | 1,932 | 0.05 | |||||||||||||
June 30, 2013 | 62,493 | 2,254 | 2,066 | 0.05 | |||||||||||||
March 31, 2013 | 59,289 | 2,117 | 2,024 | 0.05 | |||||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2012 |
State | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Number of states in which company writes non-standard personal automobile insurance | 12 | |||
Number of states in which company is licensed as an insurer | 13 | |||
Original maturities period of highly liquid investments | 3 months | |||
Foreclosed real estate held for sale assets | $0.80 | $0.80 | ||
Amortization expenses | 11.4 | 11.1 | 11.4 | |
Income taxes | 0.7 | 0.5 | 0.2 | |
Interest expense | 1.7 | 1.7 | 3 | |
ASU 2010-26 [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Additional amortization expense on deferred acquisition costs | $0.40 | |||
Minimum [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Estimated useful lives of the assets | 3 years | |||
Maximum [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Estimated useful lives of the assets | 7 years |
Fair_Value_Presentation_of_Car
Fair Value - Presentation of Carrying Values and Fair Values of Certain of Company's Financial Instruments (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets: | ||
Investments, available-for-sale | $125,085 | $130,248 |
Other investments | 10,530 | 7,513 |
Liabilities: | ||
Debentures payable | 40,341 | 40,301 |
Carrying Value [Member] | ||
Assets: | ||
Investments, available-for-sale | 125,085 | 130,248 |
Other investments | 10,530 | 7,513 |
Liabilities: | ||
Debentures payable | 40,341 | 40,301 |
Fair Value [Member] | ||
Assets: | ||
Investments, available-for-sale | 125,085 | 130,248 |
Other investments | 10,530 | 7,513 |
Liabilities: | ||
Debentures payable | $19,606 | $15,006 |
Fair_Value_Presentation_of_Fai
Fair Value - Presentation of Fair-Value Measurements for Each Major Category of Assets Measured on Recurring Basis (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments, available-for-sale | $125,085 | $130,248 |
Other investments | 10,530 | 7,513 |
Fair Value Measurements Using [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments, available-for-sale | 125,085 | 130,248 |
Other investments | 10,530 | 7,513 |
Cash and cash equivalents | 102,429 | 72,033 |
Total | 238,044 | 209,794 |
Preferred Stock | Fair Value Measurements Using [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments, available-for-sale | 1,767 | 1,578 |
Equity Funds | Fair Value Measurements Using [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Mutual funds, available-for-sale | 10,296 | 10,737 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value Measurements Using [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments, available-for-sale | 20,353 | 24,800 |
Cash and cash equivalents | 102,429 | 72,033 |
Total | 122,782 | 96,833 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Preferred Stock | Fair Value Measurements Using [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments, available-for-sale | 1,767 | 1,578 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity Funds | Fair Value Measurements Using [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Mutual funds, available-for-sale | 10,296 | 10,737 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value Measurements Using [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments, available-for-sale | 104,732 | 105,448 |
Total | 104,732 | 105,448 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value Measurements Using [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 10,530 | 7,513 |
Total | 10,530 | 7,513 |
Fixed Maturities | Fair Value Measurements Using [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments, available-for-sale | 113,022 | 117,933 |
Fixed Maturities | US Government Agencies Debt Securities | Fair Value Measurements Using [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments, available-for-sale | 8,290 | 12,485 |
Fixed Maturities | State Securities | Fair Value Measurements Using [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments, available-for-sale | 725 | 736 |
Fixed Maturities | Political Subdivisions Securities | Fair Value Measurements Using [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments, available-for-sale | 506 | 1,652 |
Fixed Maturities | Revenue And Assessment Securities | Fair Value Measurements Using [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments, available-for-sale | 16,360 | 13,618 |
Fixed Maturities | Corporate Bond Securities | Fair Value Measurements Using [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments, available-for-sale | 75,119 | 73,325 |
Fixed Maturities | Collateralized Agency Backed Obligations | Fair Value Measurements Using [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments, available-for-sale | 4,807 | 7,514 |
Fixed Maturities | Collateralized Non Agency Backed Residential Obligations | Fair Value Measurements Using [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments, available-for-sale | 4,137 | 4,660 |
Fixed Maturities | Collateralized Non Agency Backed Commercial Obligations | Fair Value Measurements Using [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments, available-for-sale | 3,078 | 3,943 |
Fixed Maturities | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value Measurements Using [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments, available-for-sale | 8,290 | 12,485 |
Fixed Maturities | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | US Government Agencies Debt Securities | Fair Value Measurements Using [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments, available-for-sale | 8,290 | 12,485 |
Fixed Maturities | Significant Other Observable Inputs (Level 2) [Member] | Fair Value Measurements Using [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments, available-for-sale | 104,732 | 105,448 |
Fixed Maturities | Significant Other Observable Inputs (Level 2) [Member] | State Securities | Fair Value Measurements Using [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments, available-for-sale | 725 | 736 |
Fixed Maturities | Significant Other Observable Inputs (Level 2) [Member] | Political Subdivisions Securities | Fair Value Measurements Using [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments, available-for-sale | 506 | 1,652 |
Fixed Maturities | Significant Other Observable Inputs (Level 2) [Member] | Revenue And Assessment Securities | Fair Value Measurements Using [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments, available-for-sale | 16,360 | 13,618 |
Fixed Maturities | Significant Other Observable Inputs (Level 2) [Member] | Corporate Bond Securities | Fair Value Measurements Using [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments, available-for-sale | 75,119 | 73,325 |
Fixed Maturities | Significant Other Observable Inputs (Level 2) [Member] | Collateralized Agency Backed Obligations | Fair Value Measurements Using [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments, available-for-sale | 4,807 | 7,514 |
Fixed Maturities | Significant Other Observable Inputs (Level 2) [Member] | Collateralized Non Agency Backed Residential Obligations | Fair Value Measurements Using [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments, available-for-sale | 4,137 | 4,660 |
Fixed Maturities | Significant Other Observable Inputs (Level 2) [Member] | Collateralized Non Agency Backed Commercial Obligations | Fair Value Measurements Using [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments, available-for-sale | $3,078 | $3,943 |
Fair_Value_Additional_Informat
Fair Value - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value Disclosures [Abstract] | ||
Transfers between level 1 and level 2 | $0 | $0 |
Fair_Value_Quantitative_Disclo
Fair Value - Quantitative Disclosure for Assets Classified as Level 3 (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Balance at December 31, 2013 | $7,513 |
Gains included in net income | 85 |
Gains included in comprehensive income | 47 |
Investments and capital calls | 3,080 |
Distributions received | -195 |
Balance at December 31, 2014 | 10,530 |
Common Stock at Fair Value [Member] | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Gains included in comprehensive income | 47 |
Investments and capital calls | 900 |
Balance at December 31, 2014 | 947 |
Net Asset Value [Member] | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Balance at December 31, 2013 | 3,314 |
Gains included in net income | 81 |
Investments and capital calls | 2,180 |
Distributions received | -195 |
Balance at December 31, 2014 | 5,380 |
Equity Method [Member] | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Balance at December 31, 2013 | 4,199 |
Gains included in net income | 4 |
Balance at December 31, 2014 | $4,203 |
Investments_Summary_of_Company
Investments - Summary of Company's Investment Securities (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Investment Securities [Line Items] | ||
Amortized Cost | $119,119 | $126,873 |
Gross Unrealized Gains | 6,648 | 5,666 |
Gross Unrealized Losses | -682 | -2,291 |
Fair Value | 125,085 | 130,248 |
Preferred Stock | ||
Investment Securities [Line Items] | ||
Amortized Cost | 1,500 | 1,500 |
Gross Unrealized Gains | 267 | 78 |
Fair Value | 1,767 | 1,578 |
Equity Funds | ||
Investment Securities [Line Items] | ||
Amortized Cost | 9,901 | 9,901 |
Gross Unrealized Gains | 403 | 836 |
Gross Unrealized Losses | -8 | |
Fair Value | 10,296 | 10,737 |
Fixed Maturities | ||
Investment Securities [Line Items] | ||
Amortized Cost | 107,718 | 115,472 |
Gross Unrealized Gains | 5,978 | 4,752 |
Gross Unrealized Losses | -674 | -2,291 |
Fair Value | 113,022 | 117,933 |
Fixed Maturities | US Government Agencies Debt Securities | ||
Investment Securities [Line Items] | ||
Amortized Cost | 8,039 | 12,006 |
Gross Unrealized Gains | 277 | 495 |
Gross Unrealized Losses | -26 | -16 |
Fair Value | 8,290 | 12,485 |
Fixed Maturities | State Securities | ||
Investment Securities [Line Items] | ||
Amortized Cost | 698 | 697 |
Gross Unrealized Gains | 27 | 39 |
Fair Value | 725 | 736 |
Fixed Maturities | Political Subdivisions Securities | ||
Investment Securities [Line Items] | ||
Amortized Cost | 500 | 1,601 |
Gross Unrealized Gains | 6 | 51 |
Fair Value | 506 | 1,652 |
Fixed Maturities | Revenue And Assessment Securities | ||
Investment Securities [Line Items] | ||
Amortized Cost | 14,856 | 13,050 |
Gross Unrealized Gains | 1,522 | 579 |
Gross Unrealized Losses | -18 | -11 |
Fair Value | 16,360 | 13,618 |
Fixed Maturities | Corporate Bond Securities | ||
Investment Securities [Line Items] | ||
Amortized Cost | 73,051 | 73,461 |
Gross Unrealized Gains | 2,698 | 2,127 |
Gross Unrealized Losses | -630 | -2,263 |
Fair Value | 75,119 | 73,325 |
Fixed Maturities | Agency Backed [Member] | ||
Investment Securities [Line Items] | ||
Amortized Cost | 4,647 | 7,113 |
Gross Unrealized Gains | 160 | 401 |
Fair Value | 4,807 | 7,514 |
Fixed Maturities | Collateralized Non Agency Backed Residential Obligations | ||
Investment Securities [Line Items] | ||
Amortized Cost | 3,513 | 4,181 |
Gross Unrealized Gains | 624 | 480 |
Gross Unrealized Losses | -1 | |
Fair Value | 4,137 | 4,660 |
Fixed Maturities | Collateralized Non Agency Backed Commercial Obligations | ||
Investment Securities [Line Items] | ||
Amortized Cost | 2,414 | 3,363 |
Gross Unrealized Gains | 664 | 580 |
Fair Value | $3,078 | $3,943 |
Investments_Scheduled_Maturiti
Investments - Scheduled Maturities of Company's Fixed Maturity Securities Based on their Fair Values (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities with Unrealized Losses, Total | $38,072 | $37,921 |
Fixed Maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities with Unrealized Gains, One year or less | 8,791 | 14,305 |
Securities with Unrealized Gains, After one through five years | 22,140 | 25,667 |
Securities with Unrealized Gains, After five through ten years | 24,980 | 20,445 |
Securities with Unrealized Gains, After ten years | 9,009 | 3,667 |
Securities with Unrealized Gains, No single maturity date | 12,022 | 15,928 |
Securities with Unrealized Gains, Total | 76,942 | 80,012 |
Securities with Unrealized Losses, After one through five years | 12,888 | 10,888 |
Securities with Unrealized Losses, After five through ten years | 21,450 | 22,836 |
Securities with Unrealized Losses, After ten years | 1,742 | 4,008 |
Securities with Unrealized Losses, No single maturity date | 189 | |
Securities with Unrealized Losses, Total | 36,080 | 37,921 |
All Fixed Maturity Securities, One year or less | 8,791 | 14,305 |
All Fixed Maturity Securities, After one through five years | 35,028 | 36,555 |
All Fixed Maturity Securities, After five through ten years | 46,430 | 43,281 |
All Fixed Maturity Securities, After ten years | 10,751 | 7,675 |
All Fixed Maturity Securities, No single maturity date | 12,022 | 16,117 |
All Fixed Maturity Securities, Total | $113,022 | $117,933 |
Investments_Fair_Value_and_Gro
Investments - Fair Value and Gross Unrealized Losses of Investments, Available-for-Sale, by the Length of Time (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair value | $17,505 | $23,941 |
Less than 12 months, Gross Unrealized Losses | -90 | -1,021 |
12 months or longer, Fair value | 20,567 | 13,980 |
12 months or longer, Gross Unrealized Losses | -592 | -1,270 |
Total Gross Unrealized Losses | -682 | -2,291 |
U.S. Government and Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair value | 5,012 | 988 |
Less than 12 months, Gross Unrealized Losses | -26 | -16 |
Total Gross Unrealized Losses | -26 | -16 |
Revenue and Assessment [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair value | 2,820 | 983 |
Less than 12 months, Gross Unrealized Losses | -18 | -11 |
Total Gross Unrealized Losses | -18 | -11 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair value | 7,681 | 21,781 |
Less than 12 months, Gross Unrealized Losses | -38 | -993 |
12 months or longer, Fair value | 20,567 | 13,980 |
12 months or longer, Gross Unrealized Losses | -592 | -1,270 |
Total Gross Unrealized Losses | -630 | -2,263 |
Non-Agency Backed - Residential [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair value | 189 | |
Less than 12 months, Gross Unrealized Losses | -1 | |
Total Gross Unrealized Losses | -1 | |
Total Fixed Maturities, Available-for-Sale [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair value | 15,513 | 23,941 |
Less than 12 months, Gross Unrealized Losses | -82 | -1,021 |
12 months or longer, Fair value | 20,567 | 13,980 |
12 months or longer, Gross Unrealized Losses | -592 | -1,270 |
Total Gross Unrealized Losses | -674 | -2,291 |
Mutual Fund, Available-for-Sale [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair value | 1,992 | |
Less than 12 months, Gross Unrealized Losses | -8 | |
Total Gross Unrealized Losses | ($8) |
Investments_Number_of_Fixed_Ma
Investments - Number of Fixed Maturity Securities with Gross Unrealized Gains and Losses (Detail) | Dec. 31, 2014 | Dec. 31, 2013 |
Security | Security | |
Investments Debt And Equity Securities [Abstract] | ||
Number of Securities with Gross Unrealized Losses Less than or equal to 12 months | 9 | 12 |
Number of Securities with Gross Unrealized Losses Greater than 12 months | 9 | 7 |
Number of Securities with Gross Unrealized Gains | 80 | 83 |
Investments_Fair_Value_and_Gro1
Investments - Fair Value and Gross Unrealized Losses of Fixed Maturity Securities in Continuous Unrealized Loss Position for Greater than 12 Months (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Security | Security |
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities | 9 | 7 |
Fair Value | $20,567 | $13,980 |
12 months or longer, Gross Unrealized Losses | -592 | -1,270 |
Less Than or Equal to 10% [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities | 9 | 7 |
Fair Value | 20,567 | 13,980 |
12 months or longer, Gross Unrealized Losses | ($592) | ($1,270) |
Investments_Gross_Unrealized_L
Investments - Gross Unrealized Losses by Current Severity and Length of Time that Individual Securities have been in Continuous Unrealized Loss Position (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investment Maturity Date [Line Items] | ||
Fair Value of Securities with Gross Unrealized Losses | $38,072 | $37,921 |
Gross Unrealized Losses | -682 | -2,291 |
Less Than 5% [Member] | ||
Investment Maturity Date [Line Items] | ||
Gross Unrealized Losses | -682 | -278 |
5% to 10% [Member] | ||
Investment Maturity Date [Line Items] | ||
Gross Unrealized Losses | -2,013 | |
Three Months [Member] | ||
Investment Maturity Date [Line Items] | ||
Fair Value of Securities with Gross Unrealized Losses | 17,505 | 6,417 |
Gross Unrealized Losses | -90 | -40 |
Three Months [Member] | Less Than 5% [Member] | ||
Investment Maturity Date [Line Items] | ||
Gross Unrealized Losses | -90 | -40 |
Six Months [Member] | ||
Investment Maturity Date [Line Items] | ||
Fair Value of Securities with Gross Unrealized Losses | 1,653 | |
Gross Unrealized Losses | -129 | |
Six Months [Member] | 5% to 10% [Member] | ||
Investment Maturity Date [Line Items] | ||
Gross Unrealized Losses | -129 | |
Nine Months [Member] | ||
Investment Maturity Date [Line Items] | ||
Fair Value of Securities with Gross Unrealized Losses | 15,871 | |
Gross Unrealized Losses | -852 | |
Nine Months [Member] | Less Than 5% [Member] | ||
Investment Maturity Date [Line Items] | ||
Gross Unrealized Losses | -153 | |
Nine Months [Member] | 5% to 10% [Member] | ||
Investment Maturity Date [Line Items] | ||
Gross Unrealized Losses | -699 | |
Greater Than 12 Months [Member] | ||
Investment Maturity Date [Line Items] | ||
Fair Value of Securities with Gross Unrealized Losses | 20,567 | 13,980 |
Gross Unrealized Losses | -592 | -1,270 |
Greater Than 12 Months [Member] | Less Than 5% [Member] | ||
Investment Maturity Date [Line Items] | ||
Gross Unrealized Losses | -592 | -85 |
Greater Than 12 Months [Member] | 5% to 10% [Member] | ||
Investment Maturity Date [Line Items] | ||
Gross Unrealized Losses | ($1,185) |
Investments_Additional_Informa
Investments - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ||
Number of investment funds | 3 | |
Unfunded commitments | $2.30 | |
Fixed maturities and cash equivalents on deposit with various insurance departments at fair value and amortized cost | 5.3 | |
Cash equivalents on deposit with another insurance company at fair value and amortized cost | 9.4 | |
Collateralized Mortgage Obligations [Member] | Collateralized Non Agency Backed Residential Obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Non credit other than temporary impairment for securities | 0.9 | 0.9 |
Collateralized Mortgage Obligations [Member] | Collateralized Non Agency Backed Commercial Obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Non credit other than temporary impairment for securities | $0.20 | $0.20 |
Investments_Major_Categories_o
Investments - Major Categories of Investment Income (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net Investment Income [Line Items] | |||
Investment income | $5,123 | $5,716 | $6,599 |
Investment expenses | -489 | -576 | -619 |
Fixed maturities, available-for-sale [Member] | |||
Net Investment Income [Line Items] | |||
Investment income | 4,481 | 4,914 | 6,434 |
Mutual funds, available-for-sale [Member] | |||
Net Investment Income [Line Items] | |||
Investment income | 832 | 766 | 613 |
Other investments [Member] | |||
Net Investment Income [Line Items] | |||
Investment income | 85 | 399 | |
Other [Member] | |||
Net Investment Income [Line Items] | |||
Investment income | $214 | $213 | $171 |
Investments_Components_of_Net_
Investments - Components of Net Realized Gains (Losses) on Investments, Available-for-Sale at Fair Value (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Investments Debt And Equity Securities [Abstract] | |||
Gains | $85 | $100 | $3,296 |
Losses | -62 | -68 | -31 |
OTTI charges reclassified from other comprehensive income and recognized in net income | -61 | -23 | |
Net realized gains (losses) on investments, available-for-sale | $23 | ($29) | $3,242 |
Investments_Number_and_Amount_
Investments - Number and Amount of Securities for which Company has Recognized OTTI Charges in Net Income (Loss) (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Security | Security | |
Schedule of Available-for-sale Securities [Line Items] | ||
Collateralized mortgage obligations by number of securities | 1 | 3 |
OTTI charges reclassified from other comprehensive income and recognized in net income | ($61) | ($23) |
Collateralized Mortgage Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Other-than-temporary impairment ("OTTI") charges | -61 | -23 |
Non-Agency Backed - Residential [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Collateralized mortgage obligations by number of securities | 1 | 2 |
Non-Agency Backed - Residential [Member] | Collateralized Mortgage Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Other-than-temporary impairment ("OTTI") charges | -61 | -8 |
Non-Agency Backed - Commercial [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Collateralized mortgage obligations by number of securities | 1 | |
Non-Agency Backed - Commercial [Member] | Collateralized Mortgage Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Other-than-temporary impairment ("OTTI") charges | ($15) |
Investments_Progression_of_Cre
Investments - Progression of Credit-Related Portion of OTTI on Investments (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 |
Investments Debt And Equity Securities [Abstract] | |||
Beginning balance | ($2,666) | ($3,425) | ($2,632) |
Additional credit impairments on: | |||
Previously impaired securities | -61 | -23 | |
Total additional credit impairments securities | -61 | -23 | |
Reductions for securities sold (realized) | 95 | 782 | |
Ending balance | ($2,632) | ($2,666) | ($2,632) |
Reinsurance_Effects_of_Reinsur
Reinsurance - Effects of Reinsurance Premium Written and Earned (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Insurance [Abstract] | |||
Direct Written | $200,983 | $177,376 | $168,990 |
Assumed Written | 29,311 | 23,768 | 21,517 |
Ceded Written | -265 | -201 | -192 |
Written Total | 230,029 | 200,943 | 190,315 |
Direct Earned | 191,093 | 176,588 | 164,715 |
Assumed Earned | 27,487 | 23,313 | 21,121 |
Ceded Earned | -265 | -201 | -192 |
Earned Total | $218,315 | $199,700 | $185,644 |
Reinsurance_Additional_Informa
Reinsurance - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Insurance [Abstract] | |||
Percentage of quota-share reinsurance | 100.00% | ||
Percentages of premiums | 13.00% | 12.00% | 11.00% |
Unsecured aggregate reinsurance receivables | $0.40 |
Reinsurance_Ceded_Premiums_Ear
Reinsurance - Ceded Premiums Earned and Reinsurance Recoveries on Losses and Loss Adjustment Expenses (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Insurance [Abstract] | |||
Ceded premiums earned | $265 | $201 | $192 |
Reinsurance recoveries on losses and loss adjustment expenses | $137 | $285 | $163 |
StockBased_Compensation_Plans_1
Stock-Based Compensation Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Employee | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Remaining available shares for issuance under the plan | 6,255,156 | ||
Stock Option Awards expiry range | 5 years | ||
Vest in designated installments over | 4 years | ||
Stock Option Awards to purchase shares of the company's common stock | 2 | ||
Stock Option Awards granted | 0 | 0 | 825,000 |
Exercise price per share | $1.45 | ||
Stock Option Awards expiration date | 31-Jan-17 | ||
Compensation expense related to Stock Option | $522,000 | ||
Compensation expense related to Stock Option amortized | 504,000 | ||
Remaining Compensation expense amortized through January 2016 | 18,000 | ||
Fair value of Stock Option Awards with expected volatility | 73.00% | ||
Risk-free interest rate | 0.71% | ||
Dividend yield rate | 0.00% | ||
Expected term | 5 years | ||
Value of options granted per share | $0.63 | ||
Risk-free interest rate, duration | 5 years | ||
Weighted average remaining contractual life of options outstanding | 2 years 4 months 24 days | ||
Exercisable/vested | 2 years 4 months 24 days | ||
Number of shares vested | 75,135 | ||
Compensation expense to purchase shares under the ESPP | 185,000 | 243,000 | 604,000 |
Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of authorize payroll deductions | 15.00% | ||
Maximum Amount of outstanding stock to be subscribed | 25,000 | ||
Company reserved shares of common stock for issuance under the ESPP | 400,000 | ||
Employees purchase shares | 31,000 | 35,000 | 40,000 |
Compensation expense to purchase shares under the ESPP | 11,000 | 7,000 | 11,000 |
Shares remain available for issuance under the ESPP | 87,635 | ||
Executive Officer One [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock Option Awards granted | 750,000 | ||
Vesting percent of shares | 40.00% | ||
Remainder vesting in equal installments | 3 years | ||
Executive Officer Two [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock Option Awards granted | 75,000 | ||
Vesting percent of shares | 20.00% | ||
Remainder vesting in equal installments | 4 years | ||
Employee Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock Option Awards expiry range | 10 years | ||
Vest in designated installments over | 5 years | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted Stock Awards granted | 0 | 0 | 0 |
Aggregate fair values of Restricted Stock Awards vested | $54,000 | $99,000 | $134,000 |
StockBased_Compensation_Plans_2
Stock-Based Compensation Plans - Summary of the Activity for the Company's Stock Option Awards (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options outstanding, Options, Beginning Balance | 1,237,000 | 1,595,000 | 4,500,000 |
Granted, Options | 0 | 0 | 825,000 |
Forfeited, Options | -117,000 | -358,000 | -3,730,000 |
Options outstanding, Options, Ending Balance | 1,120,000 | 1,237,000 | 1,595,000 |
Options exercisable/vested at December 31, 2014 | 940,000 | ||
Granted, Exercise Price | $1.45 | ||
Forfeited, Exercise Price | $5.22 | $3.04 | |
Options outstanding, Weighted Average Exercise Price, Beginning Balance | $2.19 | $2.38 | $3.06 |
Granted, Weighted Average Exercise Price | $1.45 | ||
Forfeited, Weighted Average Exercise Price | $5.22 | $3.04 | $3 |
Options outstanding, Weighted Average Exercise Price, Ending Balance | $1.87 | $2.19 | $2.38 |
Options exercisable/vested at December 31, 2014, Weighted Average Exercise Price | $1.95 | ||
Options outstanding, Aggregate Intrinsic Value, Ending balance | $908 | ||
Options exercisable/vested at December 31, 2014, Aggregate Intrinsic Value | $710 | ||
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding, Exercise Price, Beginning Balance | $3 | ||
Forfeited, Exercise Price | $3 | ||
Options Outstanding, Exercise Price, Ending Balance | $1.45 | $1.45 | $1.45 |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding, Exercise Price, Beginning Balance | $8.13 | ||
Forfeited, Exercise Price | $3.04 | ||
Options Outstanding, Exercise Price, Ending Balance | $3.04 | $8.13 | $8.13 |
StockBased_Compensation_Plans_3
Stock-Based Compensation Plans - Summary of the Activity for the Company's Restricted Stock Awards (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted Average Grant Date Fair Value, Beginning Balance | $2.29 | $2.35 | $2.36 |
Weighted Average Grant Date Fair Value, Vested | $2.29 | $2.38 | $2.36 |
Weighted Average Grant Date Fair Value, Forfeited | $2.36 | $2.50 | |
Weighted Average Grant Date Fair Value, Ending Balance | $0 | $2.29 | $2.35 |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted Stock Awards outstanding, Beginning Balance | 17 | 60 | 95 |
Vested | -17 | -29 | -34 |
Forfeited | -14 | -1 | |
Restricted Stock Awards outstanding, Ending Balance | 17 | 60 |
Employee_Benefit_Plan_Addition
Employee Benefit Plan - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule Of Sale Of Subsidiary [Abstract] | |||
Defined contribution plan employer matching contribution percent for three percent of employee contribution | 100.00% | ||
Initial employee salary percentage with full employer contribution | 3.00% | ||
Defined contribution plan employer matching contribution percent for two percent of employee contribution | 50.00% | ||
Additional employee salary percentage with partly employer contribution | 2.00% | ||
Company's contributions to Plan | $0.70 | $0.60 | $0.60 |
Property_and_Equipment_Compone
Property and Equipment - Components of Property and Equipment (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $16,088 | $15,163 |
Less: Accumulated depreciation | -12,915 | -11,651 |
Property and equipment, net | 3,173 | 3,512 |
Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 10,660 | 9,736 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 5,000 | 4,999 |
Capitalized Leases [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 238 | 238 |
Aircraft [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $190 | $190 |
Property_and_Equipment_Additio
Property and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Property Plant And Equipment Useful Life And Values [Abstract] | |||
Depreciation and amortization expense | $1,767,000 | $2,053,000 | $2,203,000 |
Capitalized assets | $200,000 |
Lease_Commitments_Additional_I
Lease Commitments - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Leases [Abstract] | |||
Rental expense | $8.90 | $9.20 | $9.50 |
Lease_Commitments_Summary_of_F
Lease Commitments - Summary of Future Minimum Lease Payments (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Leases [Abstract] | |
2015 | $6,819 |
2016 | 3,828 |
2017 | 1,592 |
2018 | 514 |
2019 | 234 |
Thereafter | 357 |
Total | $13,344 |
Losses_and_Loss_Adjustment_Exp2
Losses and Loss Adjustment Expenses Incurred and Paid - Information Regarding the Reserve for Unpaid Losses and LAE (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Insurance [Abstract] | |||||
Liability for unpaid losses and LAE at beginning of year, gross | $84,286 | $79,260 | $69,436 | ||
Reinsurance balances receivable, beginning balance | -305 | -260 | -187 | ||
Liability for unpaid losses and LAE at beginning of year, net | 83,981 | 79,000 | 69,249 | ||
Add: Provision for losses and LAE: | |||||
Current year | 166,185 | 145,877 | 144,207 | ||
Prior years | -4,883 | -3,038 | 4,016 | ||
Net losses and LAE incurred | 161,302 | 142,839 | 148,223 | ||
Less: Losses and LAE paid: | |||||
Current year | 98,442 | 88,726 | 89,157 | ||
Prior years | 2,600 | 2,600 | 50,590 | 49,132 | 49,315 |
Net losses and LAE paid | 149,032 | 137,858 | 138,472 | ||
Liability for unpaid losses and LAE at end of year, net | 96,251 | 83,981 | 96,251 | 83,981 | 79,000 |
Reinsurance balances receivable, ending balance | 362 | 305 | 362 | 305 | 260 |
Liability for unpaid losses and LAE at end of year, gross | $96,613 | $84,286 | $96,613 | $84,286 | $79,260 |
Losses_and_Loss_Adjustment_Exp3
Losses and Loss Adjustment Expenses Incurred and Paid - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Insurance [Abstract] | |||
Unpaid losses and loss adjustment expenses | $4,883 | $3,038 | ($4,016) |
Debentures_Payable_Additional_
Debentures Payable - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Apr. 30, 2015 | Jan. 31, 2015 | Jul. 30, 2012 |
Debt Instrument [Line Items] | ||||
Preferred stock shares issued by unconsolidated trust | 40,000 | |||
Common stock shares issued by unconsolidated trust | 1,240 | |||
Price of preferred and common shares issued by unconsolidated trust | $1,000 | |||
Period for deferral of preferred securities dividend | 5 years | |||
Unamortized debt discount | $0.90 | |||
Junior Subordinated Debentures [Member] | ||||
Debt Instrument [Line Items] | ||||
Debentures paid fixed rate | 9.28% | |||
Variable rate | Three-Month LIBOR plus 375 basis points | |||
Variable rate basis point | 3.75% | |||
Proceeds to unconsolidated trust from issuance of junior subordinated debenture sale of preferred stock shares | $41.20 | |||
Maturity date | 30-Jul-37 | |||
Junior Subordinated Debentures [Member] | Scenario Forecast [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.01% | |||
Junior Subordinated Debentures [Member] | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 3.98% |
Income_Taxes_Provision_Benefit
Income Taxes - Provision (Benefit) for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Federal: | |||
Current | $228 | $175 | |
Deferred | -19,098 | -4 | |
Gross Federal | -18,870 | 171 | |
State: | |||
Current | 650 | 476 | -8 |
Deferred | -125 | 3 | 3 |
Gross State | 525 | 479 | -5 |
Income tax expense (benefit) | ($18,345) | $650 | ($5) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes [Line Items] | |||
Statutory federal corporate tax rate | 35.00% | ||
Valuation allowance | $1,763,000 | $24,224,000 | |
Change in the total valuation allowance | 22,400,000 | 4,200,000 | 1,200,000 |
Change in the valuation allowance related to unrealized change in investments | 1,200,000 | 500,000 | |
Utilization of valuation allowance associated with net operating loss carry forwards | 9,800,000 | 8,600,000 | |
Changes in calculation allowance of income tax | 1,900,000 | ||
AMT credit carryforwards | 2,004,000 | 1,784,000 | |
State and Local Jurisdiction [Member] | |||
Income Taxes [Line Items] | |||
Gross Federal NOL carryforwards | 7,100,000 | ||
NOL carryforwards expire date | 2020 | ||
Domestic Country [Member] | |||
Income Taxes [Line Items] | |||
Gross Federal NOL carryforwards | $17,700,000 | ||
NOL carryforwards expire date | 2031 |
Income_Taxes_Provision_Benefit1
Income Taxes - Provision (Benefit) for Income Taxes Differs from Amounts Computed by Applying Statutory Federal Corporate Tax Rate (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Provision (benefit) for income taxes at statutory rate | $3,403 | $3,440 | ($3,166) |
Tax effect of: | |||
Tax-exempt investment income | -21 | -27 | -18 |
Change in the beginning of the year balance of the valuation allowance for deferred tax assets allocated to income taxes | -22,427 | -4,277 | 580 |
Stock-based compensation | 137 | 1,133 | 2,552 |
State income taxes | 525 | 479 | -5 |
Other | 38 | -98 | 52 |
Income tax expense (benefit) | ($18,345) | $650 | ($5) |
Income_Taxes_Summary_of_Net_De
Income Taxes - Summary of Net Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Net operating loss carryforwards | $6,180 | $9,949 |
Stock option compensation | 402 | 516 |
Unearned premiums and loss and loss adjustment expense reserves | 5,614 | 4,898 |
Goodwill and identifiable intangible assets | 5,404 | 6,311 |
Alternative minimum tax (“AMTâ€) credit carryforwards | 2,004 | 1,784 |
Accrued expenses and other nondeductible items | 1,201 | 1,182 |
Other | 3,127 | 1,875 |
Deferred Tax Assets, Gross, Total | 23,932 | 26,515 |
Deferred tax liabilities: | ||
Deferred acquisition costs | -1,211 | -1,016 |
Identifiable intangible assets | -1,872 | -1,872 |
Net unrealized change on investments | -2,105 | -1,181 |
Other | -460 | |
Deferred tax liabilities, gross | -5,648 | -4,069 |
Total net deferred tax asset | 18,284 | 22,446 |
Less: Valuation allowance | -1,763 | -24,224 |
Net deferred tax asset (liability) | $16,521 | ($1,778) |
Net_Income_Loss_Per_Share_Comp
Net Income (Loss) Per Share - Computation of Basic and Diluted Net Income (Loss) Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||||||||||
Net income (loss) | $21,968 | $2,120 | $3,469 | $511 | $3,158 | $1,932 | $2,066 | $2,024 | $28,068 | $9,180 | ($9,040) |
Weighted average common basic shares | 40,985 | 40,930 | 40,861 | ||||||||
Effect of dilutive securities | 298 | 162 | |||||||||
Weighted average common dilutive shares | 41,283 | 41,092 | 40,861 | ||||||||
Basic net income (loss) per share | $0.68 | $0.22 | ($0.22) | ||||||||
Diluted net income (loss) per share | $0.68 | $0.22 | ($0.22) |
Net_Income_Loss_Per_Share_Addi
Net Income (Loss) Per Share - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Earnings Per Share [Line Items] | |||
Exercisable options outstanding that enable to purchase shares | 800,000 | 900,000 | |
Restricted Stock [Member] | |||
Earnings Per Share [Line Items] | |||
Shares with dilutive effect and included in computation of diluted income (loss) per share | 17,000 | 100,000 | |
Equity Option [Member] | |||
Earnings Per Share [Line Items] | |||
Shares with dilutive effect and included in computation of diluted income (loss) per share | 298,000 | 145,000 | |
Options excluded from computation of diluted income (loss) per share due to anti-dilutive effect | 295,000 | 412,000 | 1,600,000 |
Concentrations_of_Credit_Risk_
Concentrations of Credit Risk - Additional Information (Detail) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Risks And Uncertainties [Abstract] | |
Cash and cash equivalents | $102.40 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Segment | |
Segment Reporting [Abstract] | |
Number of business segments | 2 |
Segment_Information_Selected_F
Segment Information - Selected Financial Data by Business Segment (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $67,928 | $65,604 | $67,120 | $62,542 | $59,152 | $59,578 | $62,493 | $59,289 | $263,194 | $240,512 | $228,059 |
Income (loss) before income taxes | 3,076 | 2,377 | 3,723 | 547 | 3,363 | 2,096 | 2,254 | 2,117 | 9,723 | 9,830 | -9,045 |
Total assets | 328,575 | 273,707 | 328,575 | 273,707 | |||||||
Insurance [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 263,133 | 240,460 | 227,966 | ||||||||
Income (loss) before income taxes | 12,549 | 12,748 | -4,588 | ||||||||
Total assets | 302,529 | 262,869 | 302,529 | 262,869 | |||||||
Real Estate and Corporate [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 61 | 52 | 93 | ||||||||
Income (loss) before income taxes | -2,826 | -2,918 | -4,457 | ||||||||
Total assets | $26,046 | $10,838 | $26,046 | $10,838 |
Statutory_Financial_Informatio1
Statutory Financial Information and Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Insurance [Abstract] | |||
Capital and surplus of the Insurance Companies | $96.60 | $95 | |
Statutory net income (loss) of the Insurance Companies | 1 | 4.2 | -12.7 |
Maximum dividends to be paid as a percentage of statutory capital and surplus without the prior approval of the Texas insurance commissioner | 10.00% | ||
Ordinary dividends received | $2 |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data (Unaudited) - Selected Quarterly Financial Data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total Revenues | $67,928 | $65,604 | $67,120 | $62,542 | $59,152 | $59,578 | $62,493 | $59,289 | $263,194 | $240,512 | $228,059 |
Income before Income Taxes | 3,076 | 2,377 | 3,723 | 547 | 3,363 | 2,096 | 2,254 | 2,117 | 9,723 | 9,830 | -9,045 |
Net income | $21,968 | $2,120 | $3,469 | $511 | $3,158 | $1,932 | $2,066 | $2,024 | $28,068 | $9,180 | ($9,040) |
Basic and Diluted Net Income per Share | $0.54 | $0.05 | $0.08 | $0.01 | $0.07 | $0.05 | $0.05 | $0.05 |
Selected_Quarterly_Financial_D3
Selected Quarterly Financial Data (Unaudited) - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Income before Income Taxes | $3,076,000 | $2,377,000 | $3,723,000 | $547,000 | $3,363,000 | $2,096,000 | $2,254,000 | $2,117,000 | $9,723,000 | $9,830,000 | ($9,045,000) |
Prior period losses and LAE paid in current period | 2,600,000 | 2,600,000 | 50,590,000 | 49,132,000 | 49,315,000 | ||||||
Net income | 21,968,000 | 2,120,000 | 3,469,000 | 511,000 | 3,158,000 | 1,932,000 | 2,066,000 | 2,024,000 | 28,068,000 | 9,180,000 | -9,040,000 |
Benefit for income taxes from change in deferred tax valuation allowance | $20,200,000 |
Financial_Information_of_Regis1
Financial Information of Registrant (Parent Company) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
ASSETS | ||||
Cash and cash equivalents | $102,429 | $72,033 | $59,104 | $23,751 |
Deferred tax asset | 16,521 | |||
Other assets | 6,234 | 6,471 | ||
TOTAL ASSETS | 328,575 | 273,707 | ||
Liabilities: | ||||
Debentures payable | 40,341 | 40,301 | ||
Other liabilities | 16,715 | 16,205 | ||
Stockholders’ equity | 106,964 | 76,932 | 72,793 | 82,729 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 328,575 | 273,707 | ||
Parent Company [Member] | ||||
ASSETS | ||||
Investment in subsidiaries, at equity in net assets | 126,494 | 108,356 | ||
Cash and cash equivalents | 15,836 | 8,578 | 3,344 | 8,445 |
Deferred tax asset | 7,965 | 94 | ||
Other assets | 2,274 | 2,262 | ||
TOTAL ASSETS | 152,569 | 119,289 | ||
Liabilities: | ||||
Debentures payable | 40,341 | 40,301 | ||
Other liabilities | 5,264 | 2,055 | ||
Stockholders’ equity | 106,964 | 76,932 | ||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $152,569 | $119,289 |
Financial_Information_of_Regis2
Financial Information of Registrant (Parent Company) (Detail 1) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statements of Operations | |||||||||||
Investment income | $5,123 | $5,716 | $6,599 | ||||||||
Equity in income (loss) of subsidiaries, net of tax | 85 | 399 | |||||||||
Income (loss) before income taxes | 3,076 | 2,377 | 3,723 | 547 | 3,363 | 2,096 | 2,254 | 2,117 | 9,723 | 9,830 | -9,045 |
Benefit for income taxes | -18,345 | 650 | -5 | ||||||||
Net income (loss) | 21,968 | 2,120 | 3,469 | 511 | 3,158 | 1,932 | 2,066 | 2,024 | 28,068 | 9,180 | -9,040 |
Parent Company [Member] | |||||||||||
Statements of Operations | |||||||||||
Investment income | 61 | 52 | 93 | ||||||||
Equity in income (loss) of subsidiaries, net of tax | 23,804 | 11,657 | -6,830 | ||||||||
Expenses | -2,887 | -2,529 | -2,303 | ||||||||
Income (loss) before income taxes | 20,978 | 9,180 | -9,040 | ||||||||
Benefit for income taxes | -7,090 | ||||||||||
Net income (loss) | $28,068 | $9,180 | ($9,040) |
Financial_Information_of_Regis3
Financial Information of Registrant (Parent Company) (Detail 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||||||||||
Net income (loss) | $21,968 | $2,120 | $3,469 | $511 | $3,158 | $1,932 | $2,066 | $2,024 | $28,068 | $9,180 | ($9,040) |
Investment income and equity in earnings from other investments | -85 | -399 | |||||||||
Stock-based compensation | 185 | 243 | 604 | ||||||||
Deferred income taxes | -19,223 | -2 | 3 | ||||||||
Other | 224 | 280 | 330 | ||||||||
Cash flows from investing activities: | |||||||||||
Dividends from subsidiary | 2,000 | ||||||||||
Maturities of investments, available-for-sale | 19,941 | 21,769 | 41,969 | ||||||||
Cash flows from financing activities: | |||||||||||
Net proceeds from issuance of common stock | 74 | 51 | 52 | ||||||||
Net increase in cash and cash equivalents | 30,396 | 12,929 | 35,353 | ||||||||
Cash and cash equivalents, beginning of year | 72,033 | 59,104 | 72,033 | 59,104 | 23,751 | ||||||
Cash and cash equivalents, end of year | 102,429 | 72,033 | 102,429 | 72,033 | 59,104 | ||||||
Parent Company [Member] | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | 28,068 | 9,180 | -9,040 | ||||||||
Investment income and equity in earnings from other investments | -23,804 | -11,657 | 6,830 | ||||||||
Stock-based compensation | 185 | 243 | 604 | ||||||||
Deferred income taxes | -7,871 | -2 | 1 | ||||||||
Other | 30 | -4 | -6 | ||||||||
Change in assets and liabilities | 3,197 | 790 | 792 | ||||||||
Net cash used in operating activities | -195 | -1,450 | -819 | ||||||||
Cash flows from investing activities: | |||||||||||
Dividends from subsidiary | 7,425 | 6,635 | 5,150 | ||||||||
Maturities of investments, available-for-sale | 3,518 | ||||||||||
Improvements to foreclosed real estate | -2 | -2 | -2 | ||||||||
Investments in subsidiaries | -44 | -13,000 | |||||||||
Net cash provided by investing activities | 7,379 | 6,633 | -4,334 | ||||||||
Cash flows from financing activities: | |||||||||||
Net proceeds from issuance of common stock | 74 | 51 | 52 | ||||||||
Net cash provided by (used in) financing activities | 74 | 51 | 52 | ||||||||
Net increase in cash and cash equivalents | 7,258 | 5,234 | -5,101 | ||||||||
Cash and cash equivalents, beginning of year | 8,578 | 3,344 | 8,578 | 3,344 | 8,445 | ||||||
Cash and cash equivalents, end of year | $15,836 | $8,578 | $15,836 | $8,578 | $3,344 |