Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 13, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | FAC | ||
Entity Registrant Name | FIRST ACCEPTANCE CORP /DE/ | ||
Entity Central Index Key | 1,017,907 | ||
Current Fiscal Year End Date | --12-31 | ||
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 | 41,160,011 | ||
Entity Public Float | $ 21,757,026 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Investments, available-for-sale at fair value (amortized cost of $117,902 and $128,304, respectively) | $ 117,212 | $ 131,582 |
Cash, cash equivalents, and restricted cash | 118,681 | 115,587 |
Premiums, fees, and commissions receivable, net of allowance of $279 and $454 | 66,393 | 69,881 |
Deferred tax assets, net | 35,641 | 18,301 |
Other investments | 9,994 | 11,256 |
Other assets | 6,078 | 6,950 |
Property and equipment, net | 4,213 | 5,141 |
Deferred acquisition costs | 4,852 | 5,509 |
Goodwill | 29,384 | 29,429 |
Identifiable intangible assets, net | 7,626 | 8,491 |
TOTAL ASSETS | 400,074 | 402,127 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Loss and loss adjustment expense reserves | 161,079 | 122,071 |
Unearned premiums and fees | 78,861 | 83,426 |
Debentures payable | 40,302 | 40,256 |
Term loan from principal stockholder | 29,779 | 29,753 |
Accrued expenses | 7,089 | 7,345 |
Other liabilities | 10,476 | 15,606 |
Total liabilities | 327,586 | 298,457 |
Stockholders’ equity: | ||
Preferred stock, $.01 par value, 10,000 shares authorized | ||
Common stock, $.01 par value, 75,000 shares authorized; 41,160 and 41,060 issued and outstanding, respectively | 412 | 411 |
Additional paid-in capital | 457,750 | 457,476 |
Accumulated other comprehensive income, net of tax of $(1,110) and $62, respectively | 1,316 | 3,491 |
Accumulated deficit | (386,990) | (357,708) |
Total stockholders’ equity | 72,488 | 103,670 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 400,074 | $ 402,127 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Amortized cost of investments | $ 117,902 | $ 128,304 |
Allowance for premiums, fees and Commission receivable | $ 279 | $ 454 |
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 | 41,160,000 | 41,060,000 |
Common stock, shares outstanding | 41,160,000 | 41,060,000 |
Accumulated Other Comprehensive Income, tax | $ (1,110) | $ 62 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues: | |||
Premiums earned | $ 303,328,000 | $ 266,987,000 | $ 218,315,000 |
Commission and fee income | 75,596,000 | 59,892,000 | 39,733,000 |
Investment income | 4,649,000 | 5,024,000 | 5,123,000 |
Gain on sale of foreclosed real estate | 1,237,000 | ||
Net realized gains (losses) on investments, available-for-sale (includes $4,745 of accumulated other comprehensive loss reclassification for net unrealized gains in 2016) | 4,813,000 | (11,000) | 23,000 |
Total revenues | 389,623,000 | 331,892,000 | 263,194,000 |
Costs and expenses: | |||
Losses and loss adjustment expenses | 309,002,000 | 219,031,000 | 161,302,000 |
Insurance operating expenses | 116,510,000 | 105,254,000 | 87,328,000 |
Other operating expenses | 1,219,000 | 1,126,000 | 996,000 |
Litigation settlement | 3,677,000 | 187,000 | |
Stock-based compensation | 207,000 | 144,000 | 185,000 |
Depreciation | 2,540,000 | 1,751,000 | 1,767,000 |
Amortization of identifiable intangible assets | 956,000 | 514,000 | |
Interest expense | 4,319,000 | 2,967,000 | 1,706,000 |
Total costs and expenses | 434,753,000 | 334,464,000 | 253,471,000 |
(Loss) income before income taxes | (45,130,000) | (2,572,000) | 9,723,000 |
Benefit for income taxes | (15,848,000) | (642,000) | (18,345,000) |
Net (loss) income | $ (29,282,000) | $ (1,930,000) | $ 28,068,000 |
Net (loss) income per share: | |||
Basic | $ (0.71) | $ (0.05) | $ 0.68 |
Diluted | $ (0.71) | $ (0.05) | $ 0.68 |
Number of shares used to calculate net (loss) income per share: | |||
Basic | 41,085 | 41,030 | 40,985 |
Diluted | 41,085 | 41,030 | 41,283 |
Reconciliation of net (loss) income to other comprehensive (loss) income: | |||
Net (loss) income | $ (29,282,000) | $ (1,930,000) | $ 28,068,000 |
Unrealized change in investments: | |||
Unrealized change in investments arising during the period, net of tax of $489, $(861) and $923, respectively | 909,000 | (1,599,000) | 1,715,000 |
Reclassification of net realized gains on investments, available-for- sale, included in net loss, net of tax of $(1,661) in 2016 | (3,084,000) | ||
Comprehensive (loss) income | (31,457,000) | (3,529,000) | 29,783,000 |
Detail of net realized gains (losses) on investments, available-for-sale: | |||
Net realized gains (losses) on sales and redemptions | 4,960,000 | (11,000) | 23,000 |
Other-than-temporary impairment charges | (147,000) | 0 | 0 |
Net realized gains (losses) on investments, available-for-sale | $ 4,813,000 | $ (11,000) | $ 23,000 |
CONSOLIDATED STATEMENTS OF OPE5
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Income Statement [Abstract] | |
Accumulated other comprehensive loss reclassification for net unrealized gains | $ 4,745 |
Unrealized change in investments, tax | 489 |
Reclassification of net realized gains on investments, tax | $ (1,661) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning balance at Dec. 31, 2013 | $ 76,932 | $ 410 | $ 456,993 | $ 3,375 | $ (383,846) |
Beginning balance, Shares at Dec. 31, 2013 | 40,983 | ||||
Net income (loss) | 28,068 | 28,068 | |||
Net unrealized change on investments (net of tax (benefit) of $923, $(861) & (1,172) for year 2014, 2015 & 2016 respectively) | 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 | ||||
Net income (loss) | (1,930) | (1,930) | |||
Net unrealized change on investments (net of tax (benefit) of $923, $(861) & (1,172) for year 2014, 2015 & 2016 respectively) | (1,599) | (1,599) | |||
Stock-based compensation, Value | 144 | 144 | |||
Stock-based compensation, Shares | 7 | ||||
Issuance of shares under Employee Stock Purchase Plan, Value | 91 | $ 1 | 90 | ||
Issuance of shares under Employee Stock Purchase Plan, Shares | 37 | ||||
Ending balance at Dec. 31, 2015 | $ 103,670 | $ 411 | 457,476 | 3,491 | (357,708) |
Ending balance, Shares at Dec. 31, 2015 | 41,060 | 41,060 | |||
Net income (loss) | $ (29,282) | (29,282) | |||
Net unrealized change on investments (net of tax (benefit) of $923, $(861) & (1,172) for year 2014, 2015 & 2016 respectively) | (2,175) | (2,175) | |||
Stock-based compensation, Value | 207 | 207 | |||
Stock-based compensation, Shares | 7 | ||||
Vested restricted stock units, net of repurchases, Value | (10) | (10) | |||
Vested restricted stock units, net of repurchases, Shares | 29 | ||||
Issuance of shares under Employee Stock Purchase Plan, Value | 78 | $ 1 | 77 | ||
Issuance of shares under Employee Stock Purchase Plan, Shares | 64 | ||||
Ending balance at Dec. 31, 2016 | $ 72,488 | $ 412 | $ 457,750 | $ 1,316 | $ (386,990) |
Ending balance, Shares at Dec. 31, 2016 | 41,160 | 41,160 |
CONSOLIDATED STATEMENTS OF STO7
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Tax (benefit) on net unrealized change on investments | $ 489 | $ (861) | $ 923 |
Accumulated Other Comprehensive Income (Loss) | |||
Tax (benefit) on net unrealized change on investments | $ (1,172) | $ (861) | $ 923 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net (loss) income | $ (29,282,000) | $ (1,930,000) | $ 28,068,000 |
Adjustments to reconcile net (loss) income to cash provided by operating activities: | |||
Depreciation | 2,540,000 | 1,751,000 | 1,767,000 |
Amortization of identifiable intangible assets | 956,000 | 514,000 | |
Stock-based compensation | 207,000 | 144,000 | 185,000 |
Deferred income taxes | (16,176,000) | (917,000) | (19,223,000) |
Other-than-temporary impairment on investments, available-for-sale | 147,000 | 0 | 0 |
Net realized (gains) losses on sales and redemptions of investments | (4,960,000) | 11,000 | (23,000) |
Investment income from other investments | (427,000) | (396,000) | (85,000) |
Gain on sale of foreclosed real estate, net | (1,237,000) | ||
Other | 108,000 | 261,000 | 224,000 |
Change in: | |||
Premiums, fees, and commission receivable | 3,663,000 | (13,457,000) | (10,197,000) |
Loss and loss adjustment expense reserves | 39,008,000 | 25,458,000 | 12,327,000 |
Unearned premiums and fees | (4,565,000) | 15,484,000 | 11,959,000 |
Other liabilities | (5,130,000) | 1,500,000 | 510,000 |
Other | 1,520,000 | 884,000 | 1,497,000 |
Net cash (used in) provided by operating activities | (13,628,000) | 29,307,000 | 27,009,000 |
Cash flows from investing activities: | |||
Purchases of investments, available-for-sale | (62,982,000) | (25,383,000) | (12,314,000) |
Maturities and redemptions of investments, available-for-sale | 11,028,000 | 15,988,000 | 19,941,000 |
Sales of fixed maturities, available-for-sale | 66,880,000 | ||
Purchases of other investments | (957,000) | (2,190,000) | (3,080,000) |
Distributions from other investments | 3,270,000 | 2,088,000 | 195,000 |
Capital expenditures | (2,263,000) | (2,768,000) | (1,427,000) |
Acquisition of identifiable intangible assets | (91,000) | (205,000) | (2,000) |
Proceeds from sale of foreclosed real estate, net | 1,769,000 | ||
Business acquired through asset purchase | (33,770,000) | ||
Net cash provided by (used in) investing activities | 16,654,000 | (46,240,000) | 3,313,000 |
Cash flows from financing activities: | |||
Proceeds from term loan from principal stockholder | 30,000,000 | ||
Net proceeds from issuance of common stock | 68,000 | 91,000 | 74,000 |
Net cash provided by financing activities | 68,000 | 30,091,000 | 74,000 |
Net change in cash, cash equivalents, and restricted cash | 3,094,000 | 13,158,000 | 30,396,000 |
Cash, cash equivalents, and restricted cash, beginning of period | 115,587,000 | 102,429,000 | 72,033,000 |
Cash, cash equivalents, and restricted cash, end of period | $ 118,681,000 | $ 115,587,000 | $ 102,429,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
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. In 2016, our insurance operations generated revenue from selling non-standard personal automobile insurance products and related products in 17 states and conducted our servicing and underwriting operations in 14 states. In December 2016, we closed all of our retail locations and ceased writing new business in the state of Missouri. The Company issued 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 ( . 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 (loss) income. 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, which are charged against income, and (ii) the amount related to all other factors, which are recorded in other comprehensive (loss) 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, Cash Equivalents, and Restricted Cash Cash, cash equivalents, and restricted cash consist of bank demand deposits and other highly-liquid investments. All investments with maturities of three months or less at the date of purchase are considered cash equivalents. At December 31, 2016 and December 31, 2015 the Company had restricted cash equivalents of $18.6 million and $9.4 million, respectively. 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 which 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 (loss) income. 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 (loss) income. 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 respected 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. A liability for returned commissions is established for the amount of commission income received that the Company estimates (based on historical experience) will be returned to third-party insurance companies as a result of policy cancellations. 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 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 five 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 $0.2 million and $0.8 million at December 31, 2016 and 2015, respectively, are included within other assets in the accompanying consolidated balance sheets. On May 4, 2016, the Company sold one tract of land resulting in a gain of $1.2 million. 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, 2016, 2015 and 2014 was $18.9 million, $16.3 million and $11.4 million, respectively, and is included within insurance operating expenses in the accompanying consolidated statements of operations and comprehensive (loss) income. Goodwill and Other Identifiable Intangible Assets Goodwill and identifiable intangible assets are attributable to the Company’s insurance operations and were initially recorded at their estimated fair values at their dates of acquisition. Identifiable intangible assets with an indefinite life, (trade name and state insurance licenses) are not amortized for financial statement purposes while those with a definite life (policy renewal rights, customer relationships, and software licenses) are amortized in proportion to projected policy expirations or life of the asset. At December 31, 2016 and 2015, identifiable intangible assets were $7.6 million and $8.5 million, respectively, stated net of accumulated amortization expense of $1.5 million and $0.5 million, respectively. The estimated amortization expense for the five succeeding fiscal years is $0.8 million, $0.6 million, $0.5 million, $0.4 million, and $0.3 million. Effective with an accounting change made during the quarter ended December 31, 2015, the Company performs required annual impairment tests of its goodwill and identifiable intangible assets as of October 1st of each year. In the event that facts and circumstances indicate that goodwill or identifiable intangible assets may be impaired, an interim impairment test would be required. For goodwill impairment analysis purposes, the Company considers the Titan Agencies to be a separate reporting unit (see note 18). The Company follows the accounting guidelines, which allows companies to waive comparing the fair value of goodwill and 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 goodwill and intangible assets is greater than their carrying amounts. Based on recent entity-specific events, the Company elected to prepare a quantitative analysis for its annual impairment testing as of October 1, 2016. This review did not indicate any impairment. 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. Evaluation of Going Concern Conformity with U.S. generally accepted accounting principles requires the Company to evaluate whether there are conditions and events that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the financial statements are issued. Management’s evaluation determined that the Company does not have substantial doubt continuing one year after the financial statements are issued. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) and the International Accounting Standards Board (“IASB”) jointly issued a new revenue recognition standard, Accounting Standard Update (“ASU”) No. 2014-09, “ Revenue from Contracts with Customers,” In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” In April 2015, the FASB issued ASU No. 2015-05, “ Intangibles-Goodwill and Other-Internal Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement” In May 2015, the FASB issued ASU No. 2015-09, “ Financial Services-Insurance (Topic 944): Disclosures about Short-Duration Contracts” In January 2016, the FASB issued ASU No. 2016-01, “ Financial Instruments – Overall (Subtopic 825-20): Recognition and Measure of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU No. 2016-02, “ Leases (Topic 842) In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326)” In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” In January 2017, the FASB issued ASU No. 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” Supplemental Cash Flow Information During the years ended December 31, 2016, 2015 and 2014, the Company paid $0.2 million, $0.7 million and $0.7 million, respectively, in income taxes and $4.2 million, $1.7 million and $1.7 million, respectively, in interest. Basic and Diluted Net (Loss) Income Per Share Basic net (loss) income per share is computed by dividing net (loss) income available to common shareholders by the weighted average number of common shares, while diluted net (loss) income per share is computed by dividing net (loss) income available to common shareholders by the weighted average number of such common shares and dilutive share equivalents. Dilutive share equivalents may result from the assumed exercise of employee stock options and restricted stock units and are calculated using the treasury stock method. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 2. 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 marketplace. Level 3 - Instruments that use non-binding broker quotes or model driven valuations that do not have observable market data. NAV - Calculated net asset value (“NAV”) based on an ownership interest to which a proportionate share of net assets is attributed. The Company categorizes valuation methods used in both its identifiable intangible assets initial measurement and 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. To determine the fair value of the acquired policy renewal rights and customer relationships, the Company uses an “excess earnings” method that relied on projected future net cash flows and included key assumptions for the customer retention and renewal rates. The data used in these methods is not observable in the market. 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, 2016 December 31, 2015 Carrying Fair Carrying Fair Value Value Value Value Assets: Investments, available-for-sale $ 117,212 $ 117,212 $ 131,582 $ 131,582 Other investments 9,994 9,994 11,256 11,256 Liabilities: Debentures payable 40,302 11,488 40,256 20,275 Term loan from principal stockholder 29,779 15,000 29,753 28,504 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 and the term loan from principal stockholder are categorized as Level 3, since they were 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 do not purport to represent the Company’s underlying value. The following tables present the fair-value measurements for each major category of assets that are measured on a recurring basis (in thousands). Certain other investments are carried at net asset value which approximates fair value. Fair Value Measurements Using Quoted Prices Significant in Active Other Significant Proportionate Markets for Observable Unobservable Share of Identical Assets Inputs Inputs Net Assets December 31, 2016 Total (Level 1) (Level 2) (Level 3) (NAV) Fixed maturities, available-for-sale: U.S. government and agencies $ 18,951 $ 18,951 $ — $ — $ — Political subdivisions 4,165 — 4,165 — — Revenue and assessment 5,683 — 5,683 — — Corporate bonds 45,540 — 45,540 — — Collateralized mortgage obligations: Agency backed 22,422 — 22,422 — — Non-agency backed – residential 2,933 — 2,933 — — Non-agency backed – commercial 1,895 — 1,895 — — Total fixed maturities, available-for-sale 101,589 18,951 82,638 — — Preferred stock, available-for-sale 3,112 3,112 — — — Mutual funds, available-for-sale 12,511 12,511 — — — Total investments, available-for-sale 117,212 34,574 82,638 — — Other investments 9,994 — — 4,858 5,136 Cash, cash equivalents, and restricted cash 118,681 118,681 — — — Total $ 245,887 $ 153,255 $ 82,638 $ 4,858 $ 5,136 Fair Value Measurements Using Quoted Prices Significant in Active Other Significant Proportionate Markets for Observable Unobservable Share of Identical Assets Inputs Inputs Net Assets December 31, 2015 Total (Level 1) (Level 2) (Level 3) (NAV) Fixed maturities, available-for-sale: U.S. government and agencies $ 13,113 $ 13,113 $ — $ — $ — State 702 — 702 — — Political subdivisions 4,363 — 4,363 — — Revenue and assessment 12,644 — 12,644 — — Corporate bonds 80,785 — 80,785 — — Collateralized mortgage obligations: Agency backed 873 — 873 — — Non-agency backed – residential 3,455 — 3,455 — — Non-agency backed – commercial 2,507 — 2,507 — — Total fixed maturities, available-for-sale 118,442 13,113 105,329 — — Preferred stock, available-for-sale 1,723 1,723 — — — Mutual funds, available-for-sale 11,417 11,417 — — — Total investments, available-for-sale 131,582 26,253 105,329 — — Other investment 11,256 — — 3,276 7,980 Cash and cash equivalents 115,587 115,587 — — — Total $ 258,425 $ 141,840 $ 105,329 $ 3,276 $ 7,980 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 security in the table above consists of an investment in the common stock of a REIT for which fair value has been determined using a model driven valuation that does not have observable market data. There were no transfers between Level 1 and Level 2 for years ended December 31, 2016 and 2015. 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 source. 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. Likewise, the Company reviews the Level 3 valuation model 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, 2016 (in thousands). Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Common Stock at Fair Value Balance at December 31, 2015 $ 3,276 Gains included in net loss — Gains included in comprehensive loss 625 Investments and capital calls 957 Distributions received — Transfers into and out of Level 3 — Balance at December 31, 2016 $ 4,858 |
Investments
Investments | 12 Months Ended |
Dec. 31, 2016 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | 3. Investments Investments, Available-for-Sale The following tables summarize the Company’s investment securities (in thousands). Gross Gross Amortized Unrealized Unrealized Fair December 31, 2016 Cost Gains Losses Value U.S. government and agencies $ 19,142 $ 112 $ (303 ) $ 18,951 Political subdivisions 4,233 — (68 ) 4,165 Revenue and assessment 5,539 185 (41 ) 5,683 Corporate bonds 47,238 107 (1,805 ) 45,540 Collateralized mortgage obligations: Agency backed 23,093 73 (744 ) 22,422 Non-agency backed – residential 2,411 529 (7 ) 2,933 Non-agency backed – commercial 1,408 487 — 1,895 Total fixed maturities, available-for-sale 103,064 1,493 (2,968 ) 101,589 Preferred stock, available-for-sale 3,025 198 (111 ) 3,112 Mutual funds, available-for-sale 11,813 698 — 12,511 $ 117,902 $ 2,389 $ (3,079 ) $ 117,212 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2015 Cost Gains Losses Value U.S. government and agencies $ 13,036 $ 162 $ (85 ) $ 13,113 State 698 4 — 702 Political subdivisions 4,354 9 — 4,363 Revenue and assessment 11,770 895 (21 ) 12,644 Corporate bonds 79,426 2,022 (663 ) 80,785 Collateralized mortgage obligations: Agency backed 793 80 — 873 Non-agency backed – residential 2,877 579 (1 ) 3,455 Non-agency backed – commercial 1,891 616 — 2,507 Total fixed maturities, available-for-sale 114,845 4,367 (770 ) 118,442 Preferred stock, available-for-sale 1,500 223 — 1,723 Mutual funds, available-for-sale 11,959 120 (662 ) 11,417 $ 128,304 $ 4,710 $ (1,432 ) $ 131,582 The following table sets 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. Securities Securities Securities with No All with with Unrealized Fixed Unrealized Unrealized Gains or Maturity December 31, 2016 Gains Losses Losses Securities One year or less $ 2,302 $ 6,577 $ — $ 8,879 After one through five years 7,596 23,015 — 30,611 After five through ten years — 33,098 — 33,098 After ten years 1,751 — — 1,751 No single maturity date 5,507 21,743 — 27,250 $ 17,156 $ 84,433 $ — $ 101,589 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). Less than 12 months 12 months or longer December 31, 2016 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Gross Losses U.S. government and agencies $ 14,837 $ (303 ) $ — $ — $ (303 ) Political subdivisions 4,166 (68 ) — — (68 ) Revenue and assessment 2,783 (41 ) — — (41 ) Corporate bonds 41,057 (1,805 ) — — (1,805 ) Collateralized mortgage obligations: Agency backed 21,637 (744 ) — — (744 ) Non-agency backed – residential 105 (7 ) — — (7 ) Non-agency backed – commercial — — — — — Total fixed maturities, available-for-sale 84,585 (2,968 ) — — (2,968 ) Preferred stock, available-for-sale 1,415 (111 ) — — (111 ) Mutual funds, available-for-sale — — — — - $ 86,000 $ (3,079 ) $ — $ — $ (3,079 ) Less than 12 months 12 months or longer December 31, 2015 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Gross Losses U.S. government and agencies $ 8,946 $ (85 ) $ — $ — $ (85 ) State — — — — — Political subdivisions — — — — — Revenue and assessment 1,733 (21 ) — — (21 ) Corporate bonds 30,172 (422 ) 7,689 (241 ) (663 ) Collateralized mortgage obligations: Agency backed — — — — — Non-agency backed – residential 5 (1 ) — — (1 ) Non-agency backed – commercial 189 — — — — Total fixed maturities, available-for-sale 41,045 (529 ) 7,689 (241 ) (770 ) Preferred stock, available-for-sale — — — — — Mutual funds, available-for-sale 8,839 (662 ) — — (662 ) $ 49,884 $ (1,191 ) $ 7,689 $ (241 ) $ (1,432 ) 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. Gross Unrealized Losses Less than Greater Gross or equal to than 12 Unrealized At: 12 months months Gains December 31, 2016 37 — 40 December 31, 2015 21 4 70 There were no fixed maturity securities in a continuous unrealized loss position for greater than 12 months as of December 31, 2016.The following table reflects the fair value and gross unrealized losses of those fixed maturity securities in a continuous unrealized loss position for greater than 12 months as of December 31, 2015. Gross unrealized losses are further segregated by the percentage of amortized cost (in thousands, except number of securities). Number Gross Gross Unrealized Losses of Fair Unrealized at December 31, 2015: Securities Value Losses Less than or equal to 10% 4 $ 7,689 (241 ) Greater than 10% — — — 4 $ 7,689 $ (241 ) 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). Fair Value of Securities with Length of Gross Gross Severity of Gross Unrealized Losses Gross Unrealized Losses Unrealized Unrealized Less 5% to Greater at December 31, 2016: Losses Losses than 5% 10% than 10% Less than or equal to: Three months $ 58,550 $ (1,886 ) $ (1,461 ) $ (425 ) $ — Six months 27,193 (1,186 ) (232 ) (954 ) — Nine months 152 — — — — Twelve months 105 (7 ) — (7 ) — Greater than twelve months — — — — — Total $ 86,000 $ (3,079 ) $ (1,693 ) $ (1,386 ) $ — Fair Value of Securities with Length of Gross Gross Severity of Gross Unrealized Losses Gross Unrealized Losses Unrealized Unrealized Less 5% to Greater at December 31, 2015: Losses Losses than 5% 10% than 10% Less than or equal to: Three months $ 20,899 $ (130 ) $ (130 ) $ — $ — Six months 7,036 (465 ) — (465 ) — Nine months 14,057 (395 ) (197 ) (197 ) (1 ) Twelve months 7,892 (201 ) (201 ) — — Greater than twelve months 7,689 (241 ) (241 ) — — Total $ 57,573 $ (1,432 ) $ (769 ) $ (662 ) $ (1 ) Other Investments Other investments consist of the common stock of a REIT and limited partnership interests in two funds that invest in (i) commercial real estate and secured commercial real estate loans acquired from financial intuitions and (ii) undervalued international publicly-traded equities. These investments have redemption and transfer restrictions. The Company recently withdrew from one limited partnership investment and received the final withdrawal installment in July 2016. The Company does not intend to sell the remaining 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, 2016, the Company had unfunded commitments of $0.2 million with two of these investments. Restrictions At December 31, 2016, fixed maturities and cash equivalents with a fair value and amortized cost of $6.4 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 $17.0 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, 2016 2015 2014 Fixed maturities, available-for-sale $ 3,558 $ 4,220 $ 4,481 Mutual funds, available-for-sale 704 666 832 Other investments 427 396 85 Other 448 236 214 Investment expenses (488 ) (494 ) (489 ) $ 4,649 $ 5,024 $ 5,123 The components of net realized gains (losses) on investments, available-for-sale follow (in thousands). Year Ended December 31, 2016 2015 2014 Gains $ 4,982 $ 15 $ 85 Losses (22 ) (26 ) (62 ) Other than temporary impairment (147 ) — — $ 4,813 $ (11 ) $ 23 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 (loss) income. The amounts of non-credit OTTI for securities still owned was $1.0 million and $1.2 million at December 31, 2016 and 2015, respectively. 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 (loss) income and (ii) the amount related to all other factors, which is recorded in other comprehensive (loss) 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. 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 Company recognized an OTTI charge for one mutual fund resulting in a loss of $147 thousand for the year ending December 31, 2016. The Company did not recognize any OTTI charges in net (loss) income for the years ended December 31, 2015 and 2014. The following is a progression of the credit-related portion of OTTI on investments owned at December 31, 2016, 2015, and 2014 (in thousands). Year Ended December 31, 2016 2015 2014 Beginning balance $ (2,632 ) $ (2,632 ) $ (2,632 ) Additional credit impairments on: Previously impaired securities — — — Securities without previous impairments (147 ) — — (147 ) — — Reductions for securities deemed worthless (realized) 595 — — $ (2,184 ) $ (2,632 ) $ (2,632 ) The Company believes that the remaining securities having unrealized losses at |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2016 | |
Insurance [Abstract] | |
Reinsurance | 4. Reinsurance Total premiums written and earned are summarized as follows (in thousands). Year Ended December 31, 2016 2015 2014 Written Earned Written Earned Written Earned Direct $ 262,110 $ 265,256 $ 247,498 $ 233,652 $ 200,983 $ 191,093 Assumed 37,381 38,522 35,500 33,707 29,311 27,487 Ceded (450 ) (450 ) (372 ) (372 ) (265 ) (265 ) Total $ 299,041 $ 303,328 $ 282,626 $ 266,987 $ 230,029 $ 218,315 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 was 13% for each of the years ended December 31, 2016, 2015 and 2014, respectively. The Insurance Companies utilize excess-of-loss reinsurance with an unaffiliated reinsurer to limit their exposure to losses under liability coverages for automobile policies issued with limits greater than the minimum statutory requirements and for tenant homeowner policies with higher liability limits. 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, 2016, the Insurance Companies had unsecured aggregate reinsurance receivables of $0.8 million. Ceded premiums earned and reinsurance recoveries on losses and loss adjustment expenses were as follows (in thousands): Year Ended December 31, 2016 2015 2014 Ceded premiums earned $ 450 $ 372 $ 265 Reinsurance recoveries on losses and loss adjustment expenses $ 589 $ 239 $ 137 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2016 | |
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 stock units (“Restricted Stock Units”) 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 Stock Option Awards were all 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 were all fully vested as of January 2016. Compensation expense related to Stock Option Awards was calculated under the fair value method and recorded on a straight-line basis over the vesting period. No Stock Option Awards have been granted since January 2012, and of those outstanding, 750,000 expired unexercised at January 31, 2017 and 220,000 having a $3.04 exercise price expire on March 17, 2018. A summary of the activity for the Company’s Stock Option Awards is presented below (in thousands, except per share data). Options Exercise Price Weighted Average Exercise Price Aggregated Intrinsic Value 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 Forfeited (35 ) $ 3.04 $ 3.04 Options outstanding at December 31, 2015 1,085 $1.45-$3.04 $ 1.83 Forfeited (115 ) $1.45-$3.04 $ 2.00 Options outstanding at December 31, 2016 970 $1.45-$3.04 $ 1.81 $ - Options exercisable/vested at December 31, 2016 970 $ 1.81 $ - On March 15, 2016 and March 10, 2015 respectively, the Compensation Committee of the Board of Directors of the Company awarded 146 thousand and 141 thousand Restricted Stock Units to executive officers. Such Restricted Stock Units will vest, and an equal number of shares of common stock will be deliverable upon the third anniversary of the dates of grants. Compensation expense related to the units was calculated based upon the closing market prices of the common stock on the dates of grants ($2.30 and $2.44) and is recorded on a straight-line basis over the vesting period. 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 600,000 shares of common stock for issuance under the ESPP. Employees purchased approximately 64,000, 37,000, and 31,000 shares during the years ended December 31, 2016, 2015 and 2014, respectively. Compensation expense attributable to subscriptions to purchase shares under the ESPP was $19 thousand, $12 thousand and $11 thousand for the years ended December 31, 2016, 2015 and 2014, respectively. At December 31, 2016, 186,174 shares remain available for issuance under the ESPP. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016, 2015 and 2014 were $1.1 million, $1.0 million and $0.7 million, respectively, and are included within insurance operating expenses in the accompanying consolidated statements of operations and comprehensive (loss) income. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 7. Property and Equipment The components of property and equipment are as follows (in thousands). Year Ended December 31, 2016 2015 Furniture and equipment $ 15,583 $ 12,878 Leasehold improvements 3,844 6,451 Capitalized leases — 238 Aircraft 190 190 19,617 19,757 Less: Accumulated depreciation (15,404 ) (14,616 ) Property and equipment, net $ 4,213 $ 5,141 Depreciation expense related to property and equipment was |
Lease Commitments
Lease Commitments | 12 Months Ended |
Dec. 31, 2016 | |
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 years ended December 31, 2016, 2015 and 2014 was $11.3 million, $11.2 million and $8.9 million, respectively, and is included within insurance operating expenses in the accompanying consolidated statements of operations and comprehensive (loss) income. Future minimum lease payments under these agreements follow (in thousands). For the Year Ended December 31, Amount 2017 $ 6,339 2018 4,036 2019 2,021 2020 1,041 2021 700 Thereafter 2,670 Total $ 16,807 |
Losses and Loss Adjustment Expe
Losses and Loss Adjustment Expenses Incurred and Paid | 12 Months Ended |
Dec. 31, 2016 | |
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 loss adjustment expenses (“LAE”) is as follows (in thousands). Year Ended December 31, 2016 2015 2014 Liability for unpaid losses and LAE at beginning of year, gross $ 122,071 $ 96,613 $ 84,286 Reinsurance balances receivable (464 ) (362 ) (305 ) Liability for unpaid losses and LAE at beginning of year, net 121,607 96,251 83,981 Add: Provision for losses and LAE: Current year 278,366 218,186 166,179 Prior year 30,636 845 (4,877 ) Net losses and LAE incurred 309,002 219,031 161,302 Less: Losses and LAE paid: Current year 163,792 129,216 98,437 Prior year 106,507 64,459 50,595 Net losses and LAE paid 270,299 193,675 149,032 Liability for unpaid losses and LAE at end of year, net 160,310 121,607 96,251 Reinsurance balances receivable 769 464 362 Liability for unpaid losses and LAE at end of year, gross $ 161,079 $ 122,071 $ 96,613 The unfavorable change in the estimate of unpaid losses and loss adjustment expenses of $30.6 million for the year ended December 31, 2016 was the result of increased losses primarily from the 2015 accident year across all major coverages. The most significant causes of the development were a greater than usual emergence of reported claims and higher bodily injury severity. The unfavorable change in the estimate of unpaid losses and loss adjustment expenses of $0.8 million for the year ended December 31, 2015 was largely the result of an increase in bodily injury loss adjustment expenses (primarily outside legal costs) driven by the overall increase in claim frequency. The favorable change in the estimate of unpaid losses and loss adjustment expenses of $4.8 million for the year ended December 31, 2014 was primarily related to bodily injury claims occurring in accident years 2010 through 2013. The information about incurred and paid claims development for the 2007 to 2015 years, and the average annual percentage payout of incurred claims by age as of December 31, 2016, is presented as required supplementary information. Incurred losses and loss adjustment expenses, net of reinsurance, by accident year are as follows (in thousands). For the years ended December 31, Accident year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) 2007 $ 233,004 $ 230,360 $ 228,601 $ 228,716 $ 231,729 $ 231,931 $ 231,058 $ 230,931 $ 230,877 $ 230,862 2008 187,583 174,921 174,312 175,044 175,849 176,468 176,947 177,190 177,226 2009 146,584 140,539 140,501 141,936 142,819 142,772 142,546 142,705 2010 135,458 133,283 134,470 134,446 134,191 134,144 133,983 2011 126,384 126,886 126,272 126,373 125,810 125,670 2012 144,231 140,111 140,249 140,673 141,375 2013 145,878 140,775 142,053 144,076 2014 166,179 165,991 171,827 2015 218,186 240,419 2016 278,366 Total $ 1,786,509 Cumulative paid losses and loss adjustment expenses, net of reinsurance, by accident year are as follows (in thousands). For the years ended December 31, Accident 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 year (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) 2007 $ 157,162 $ 210,678 $ 222,406 $ 225,978 $ 228,304 $ 231,493 $ 230,891 $ 230,892 $ 230,873 $ 230,860 2008 122,207 160,366 169,373 172,768 174,688 175,700 176,331 176,907 177,154 2009 92,372 127,355 135,701 139,436 141,399 142,294 142,441 142,654 2010 87,319 120,301 128,843 131,878 132,989 133,648 133,896 2011 82,945 113,199 120,790 123,888 125,012 125,383 2012 89,159 123,869 133,397 137,968 139,781 2013 88,726 124,021 134,931 141,444 2014 98,437 144,943 162,702 2015 129,216 208,533 2016 163,792 Total $ 1,626,199 Total outstanding reserves for unpaid losses and LAE, net of reinsurance $ 160,310 As of December 31, 2016, frequency of claims by accident based on number of claimants is as follows. Accident year Incurred losses and LAE, net of reinsurance Total of incurred but not reported liabilities plus expected development on reported claims Cumulative number of reported claims 2007 $ 230,862 $ 3 117,206 2008 177,226 33 100,188 2009 142,705 26 78,607 2010 133,983 62 71,008 2011 125,670 211 65,831 2012 141,375 597 73,164 2013 144,076 1,784 73,714 2014 171,827 6,003 84,791 2015 240,419 21,968 108,755 2016 278,366 69,261 112,441 The average historical annual percentage payout of incurred losses by age, net of reinsurance is as follows. The amounts reflected below represent the average length of time between the occurrence of a loss and its payment. These percentages are averages of the years present and therefore may not equal 100%. (Unaudited) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Non-standard auto 62.7 % 25.2 % 6.6 % 2.7 % 1.1 % 0.7 % 0.1 % 0.2 % 0.1 % 0.0 % |
Debentures Payable and Term Loa
Debentures Payable and Term Loan From Principal Stockholder | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debentures Payable and Term Loan From Principal Stockholder | 10. Debentures Payable and Term Loan from Principal Stockholder 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 currently redeemable by the Company in whole or in part and 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 ranged from 4.366% to 4.637% during 2016. In January 2017, the interest rate reset to 4.789% through April 2017. 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 (loss) income. At December 31, 2016, the unamortized debt discount and issuance costs of $0.9 million are being amortized to interest expense over the term of the debentures. On June 29, 2015, to finance the acquisition of the Titan Agencies, the Company borrowed the full amount under a $30 million Loan Agreement (the “Loan Agreement”) with Diamond Family Investments, LP, an affiliate of Gerald J. Ford, the Company’s controlling stockholder. The Loan Agreement provided a $30 million interest-only senior term loan facility, maturing in full on June 29, 2025. Commencing June 29, 2016, the Company has the right to prepay the loan in whole or in part, in cash, without premium or penalty, upon written notice to the lender. Amounts prepaid under the Loan Agreement may not be reborrowed. The term loan outstanding under the Loan Agreement bears interest at a rate of 8% per annum. The Loan Agreement contains certain representations, warranties and covenants. The Loan Agreement also contains customary events of default, including but not limited to: nonpayment; material inaccuracy of representations and warranties; violations of covenants; cross-default to material indebtedness; certain material judgments; certain bankruptcies and liquidations; invalidity of the loan documents and related events; and a change of control (as defined in the Loan Agreement). At December 31, 2016 the unamortized loan issuance costs of $0.2 million are being amortized to interest expense over the term of the loan. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes The benefit for income taxes consisted of the following (in thousands). Year Ended December 31, 2016 2015 2014 Federal: Current $ — $ 20 $ 228 Deferred (16,024 ) (893 ) (19,098 ) (16,024 ) (873 ) (18,870 ) State: Current 328 255 650 Deferred (152 ) (24 ) (125 ) 176 231 525 $ (15,848 ) $ (642 ) $ (18,345 ) The benefit for income taxes differs from the amounts computed by applying the statutory federal corporate tax rate of 35% to (loss) income before income taxes as a result of the following (in thousands). Year Ended December 31, 2016 2015 2014 (Benefit) provision for income taxes at statutory rate $ (15,796 ) $ (900 ) $ 3,403 Tax effect of: Tax-exempt investment income (48 ) (22 ) (21 ) Change in the beginning of the period balance of the valuation allowance for deferred tax assets allocated to federal income taxes (157 ) 9 (22,427 ) Stock-based compensation 64 22 137 State income taxes, net of federal income tax benefit and state valuation allowance 60 142 525 Other items 29 107 38 $ (15,848 ) $ (642 ) $ (18,345 ) The tax effects of temporary differences that give rise to the net deferred tax assets and liabilities are presented below (in thousands). Year Ended December 31, 2016 2015 Deferred tax assets: Net operating loss carryforwards $ 24,208 $ 6,859 Stock-based compensation 404 421 Unearned premiums and loss and loss adjustment expense reserves 6,752 6,797 Goodwill and identifiable intangible assets 2,832 4,252 Alternative minimum tax (“AMT”) credit carryforwards 2,015 2,015 Accrued expenses and other nondeductible items 1,345 1,551 Other 3,619 3,528 41,175 25,423 Deferred tax liabilities: Deferred acquisition costs (1,698 ) (1,928 ) Identifiable intangible assets (1,872 ) (1,872 ) Net unrealized gain on investments (73 ) (1,244 ) Other (19 ) (332 ) (3,662 ) (5,376 ) Total net deferred tax asset 37,513 20,047 Less: Valuation allowance (1,872 ) (1,746 ) Net deferred tax asset $ 35,641 $ 18,301 The Company had a valuation allowance of $1.9 and $1.7 million at December 31, 2016 and 2015, respectively, relating to certain amounts that are more likely than not to be realized. In assessing our ability to realize the deferred tax asset (“DTA”), both positive and negative evidence are used to evaluate the allowance. Although the Company has incurred a pre-tax loss of $45.1 million which is a source of negative evidence, greater weight was placed on the Company’s outlook for future taxable income over the allowable time period for realization of the DTA and concluded that it is more likely than not that the remaining DTA will be realized. Regarding the length of time available to realize the DTA, at December 31, 2016, $24.2 million of the DTA related to net operating loss carryforwards do not expire until 2031 through 2036 and $2.0 million in AMT (“Alternative Minimum Tax”) carryforwards have no expiration date. The DTA valuation allowance may be adjusted in future periods if management determines that it is more likely than not that some portion or all of the DTA will not be realized. In the event the DTA valuation allowance is adjusted, the Company would record an income tax expense for the adjustment. Prior to December 31, 2014, the Company had a full valuation allowance against its deferred tax asset based upon past negative evidence in the form of historical taxable losses. Based upon positive evidence from recent taxable income at the time and the Company’s then outlook for future profitability, the deferred tax valuation allowance for the year ended December 31, 2014 was decreased by $22.4 million. |
Net (Loss) Income Per Share
Net (Loss) Income Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Net (Loss) Income Per Share | 12. Net (Loss) Income 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 (loss) income per share (in thousands, except per share data). Year Ended December 31, 2016 2015 2014 Net (loss) income $ (29,282 ) $ (1,930 ) $ 28,068 Weighted average common basic shares 41,085 41,030 40,985 Effect of dilutive securities — — 298 Weighted average common dilutive shares 41,085 41,030 41,283 Basic and diluted net (loss) income per share $ (0.71 ) $ (0.05 ) $ 0.68 For the year ended December 31, 2016, the computation of diluted net income per share did not include options to purchase approximately 750 thousand shares, a dilutive effect of 127 thousand shares, and restricted stock units convertible into 169 thousand shares, a dilutive effect of 17 thousand shares, since their inclusion would have been anti-dilutive. Options to purchase 220 thousand shares for the year ended December 31, 2016 were not included in the computation of diluted net loss per share as their exercise prices were in excess of the average stock prices for the year. For the year ended December 31, 2015, the computation of diluted net income per share did not include options to purchase approximately 825 thousand shares, a dilutive effect of 319 thousand shares, and restricted stock units convertible into 141 thousand shares, a dilutive effect of 26 thousand shares, since their inclusion would have been anti-dilutive. Options to purchase 260 thousand shares for the year ended December 31, 2015 were not included in the computation of diluted net loss per share as their exercise prices were in excess of the average stock prices for the year. 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 per share as their exercise prices were in excess of the average stock prices for the year. |
Concentrations of Credit Risk
Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2016 | |
Risks And Uncertainties [Abstract] | |
Concentrations of Credit Risk | 13. Concentrations of Credit Risk At December 31, 2016, the Company had certain concentrations of credit risk with several financial institutions in the form of cash, cash equivalents, and restricted cash, which amounted to $118.7 million. For purposes of evaluating credit risk, the stability of financial institutions conducting business with the Company 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 who 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. |
Litigation
Litigation | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Litigation | 14. 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 In 2015, in order to avoid lengthy and costly litigation, the Company and the plaintiffs involved entered into a stipulation of settlement providing for the release and dismissal of all asserted claims related to two cases involving alleged violations of the Fair Labor Standards Act in exchange for an aggregate payment $3.2 million. The total financial impact of this litigation on the Company, including the aggregate settlement payment, related payroll taxes and the Company’s legal costs in connection with the defense of the litigation, has been presented separately in the consolidated statements of operations and comprehensive (loss) income under the litigation settlement expense line item for all periods presented. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | 15. 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 insurance segment includes the former Titan retail locations since their July 1, 2015 acquisition. See Note 18 for additional information on this business combination. The following table presents selected financial data by business segment (in thousands). Year Ended December 31, 2016 2015 2014 Revenues: Insurance $ 388,323 $ 331,828 $ 263,133 Real estate and corporate 1,300 64 61 Consolidated total $ 389,623 $ 331,892 $ 263,194 (Loss) income before income taxes: Insurance $ (40,685 ) $ 338 $ 12,549 Real estate and corporate (4,445 ) (2,910 ) (2,826 ) Consolidated total $ (45,130 ) $ (2,572 ) $ 9,723 December 31, 2016 2015 Total assets: Insurance $ 354,008 $ 373,475 Real estate and corporate 46,066 28,652 Consolidated total $ 400,074 $ 402,127 |
Statutory Financial Information
Statutory Financial Information and Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Insurance [Abstract] | |
Statutory Financial Information and Accounting Policies | 16. 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 At December 31, 2016 and 2015, on a consolidated statutory basis, the capital and surplus of the Insurance Companies was $58.9 million and $98.8 million, respectively. For the years ended December 31, 2016, 2015 and 2014, consolidated statutory net (loss) income of the Insurance Companies was ($52.0) million, ($7.3) million and $1.0 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 31 st |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Parties | 17. Related Parties In April 2016, the Company entered into standard agreements for Treasury and Custodial Services with a bank indirectly owned 15% by our principal stockholder. The fees under these agreements for the year ended December 31, 2016 were $112 thousand. As further detailed in note 10, in June 2015, the Company borrowed $30 million from Diamond Family Investments, LP, an affiliate of Gerald J. Ford, the Company’s controlling stockholder, to finance the acquisition described in note 18. |
Business Combination
Business Combination | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Business Combination | 18. Business Combination Acquisition of the Titan Agencies On July 1, 2015, in order to expand its geographic presence, the Company completed the acquisition of certain assets of Titan Insurance Services, Inc. and Titan Auto Insurance of New Mexico, Inc. (the “Titan Agencies”). These agencies sell private passenger non-standard automobile insurance and complimentary products, principally in California, but also in Texas, Arizona, Florida, Nevada and New Mexico. The Titan Agencies were previously owned and operated by Nationwide. Pursuant to the Asset Purchase Agreement (the “APA”), the Company acquired the assets of 83 retail stores for total consideration of $36.0 million, which included liabilities assumed estimated to be $2.3 million. The Company has accounted for the acquisition as a business combination applying the acquisition method. The results of the acquired retail locations have been included in the Company’s consolidated statement of operations and comprehensive (loss) income from the July 1, Liabilities assumed included a $2.0 million estimate of the expected liability for returned commissions as of the closing date. This liability was subject to change based on the actual amount of returned commissions and the Company’s final estimation of this liability resulted in a $0.8 million reduction in goodwill through June 30, 2016. |
Current Liquidity and Statutory
Current Liquidity and Statutory Capital and Surplus | 12 Months Ended |
Dec. 31, 2016 | |
Current Liquidity And Statutory Capital And Surplus [Abstract] | |
Current Liquidity and Statutory Capital and Surplus | 19. Current Liquidity and Statutory Capital and Surplus The Company has $70.0 million in long-term borrowings of which $40.0 million matures in 2037 and $30.0 million matures in 2025. At December 31, 2016, the Company was in compliance with the covenants related to these borrowings. Such borrowings are not obligations of the Company’s regulated insurance company subsidiaries who at December 31, 2016 had combined statutory capital and surplus of $58.9 million. The Company believes that it has sufficient liquidity to meet its current obligations in the foreseeable future, including the payment of interest on its long-term borrowings which it currently funds through the cash flows of its agency operations which are generated outside the Company’s regulated insurance company subsidiaries and are not subject to any limitation on the payment of dividends to the holding company. The Company has three insurance company subsidiaries that are organized and domiciled under the insurance statutes of Texas, Georgia, and Tennessee. The insurance company subsidiaries operate under licenses issued by various state insurance authorities. Such licenses may be of perpetual duration or periodically renewable, provided the insurance company subsidiaries continue to meet applicable regulatory requirements. For the year ended December 31, 2016, the insurance company subsidiaries experienced a reduction in combined statutory capital and surplus of $39.9 million, primarily as a result of unfavorable loss development. The National Association of Insurance Commissioners (“NAIC”) Model Act for risk-based capital provides formulas to determine each December 31 on an annual basis the amount of statutory capital and surplus that an insurance company needs to ensure that it has an acceptable expectation of not becoming financially impaired. Failure to meet applicable minimum risk-based capital requirements could subject our insurance company subsidiaries to further examination or corrective action imposed by state regulators, including limitations on their writing of additional business, state supervision or even liquidation. Risk-based capital calculations are only made as of each December 31, and the three insurance company subsidiaries were each above the minimum regulatory company action levels as of December 31, 2016. There are also statutory guidelines that suggest that on an annual calendar year basis an insurance company should not exceed a ratio of net premiums written to statutory capital and surplus of 3-to-1. On a combined basis, the ratio for the insurance company subsidiaries of net premiums written for the last twelve months to statutory capital and surplus was 5.08-to-1 at December 31, 2016 which is in excess of the suggested guidelines. Management is currently operating under a business plan to reduce premium writings and increase statutory capital and surplus to address the net premiums written to statutory capital and surplus guidelines. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | 20 . 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 Revenues (Loss) Income Before Income Taxes Net (Loss) Income Basic and Diluted Net (Loss) Income Per Share Year Ended December 31, 2016: December 31, 2016 $ 87,806 $ (5,822 ) $ (3,545 ) $ (0.09 ) September 30, 2016 102,115 (327 ) (333 ) (0.01 ) June 30, 2016 102,754 (30,607 ) (19,899 ) (0.48 ) March 31, 2016 96,948 (8,374 ) (5,505 ) (0.13 ) Year Ended December 31, 2015: December 31, 2015 $ 88,536 $ 458 $ 287 $ - September 30, 2015 87,620 (4,524 ) (3,018 ) (0.07 ) June 30, 2015 80,631 690 315 0.01 March 31, 2015 75,105 804 486 0.01 Income before income taxes for the quarter ended June 30, 2016 included unfavorable loss development of $25.8 million. Income before income taxes for the quarter ended September 31, 2015 included a $3.4 million litigation settlement. |
Financial Information of Regist
Financial Information of Registrant (Parent Company) | 12 Months Ended |
Dec. 31, 2016 | |
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 2016 2015 Assets: Investment in subsidiaries, at equity in net assets $ 112,479 $ 132,430 Cash and cash equivalents 3,457 8,095 Loan to wholly-owned subsidiary 23,610 30,010 Deferred tax asset 25,828 8,649 Other assets 1,655 2,142 $ 167,029 $ 181,326 Liabilities: Debentures payable $ 40,302 $ 40,256 Term loan from principal stockholder 29,779 29,753 Other liabilities 24,460 7,647 Stockholders' equity 72,488 103,670 $ 167,029 $ 181,326 Year Ended December 31, Statement of Operations 2016 2015 2014 Interest income $ 2,283 $ 1,328 $ 61 Equity in (loss) income of subsidiaries, net of tax (27,428 ) (441 ) 23,804 Expenses (4,508 ) (4,238 ) (2,887 ) (Loss) income before income taxes (29,653 ) (3,351 ) 20,978 Benefit for income taxes (371 ) (1,421 ) (7,090 ) Net (loss) income $ (29,282 ) $ (1,930 ) $ 28,068 Year Ended December 31, Statement of Cash Flows 2016 2015 2014 Cash flows from operating activities: Net (loss) income $ (29,282 ) $ (1,930 ) $ 28,068 Equity in (income) loss of subsidiaries, net of tax 27,428 441 (23,804 ) Stock-based compensation 207 144 185 Deferred income taxes (17,179 ) (684 ) (7,871 ) Other 95 (203 ) 28 Change in assets and liabilities 17,300 2,385 3,197 Net cash (used in) provided by operating activities (1,431 ) 153 (197 ) Cash flows from investing activities: Dividends from subsidiary 1,225 2,025 7,425 Loan to wholly-owned subsidiary 6,400 (30,010 ) — Investments in subsidiaries (10,900 ) (10,000 ) (44 ) Net cash (used in) provided by investing activities (3,275 ) (37,985 ) 7,381 Cash flows from financing activities: Proceeds from term loan from principal stockholder — 30,000 — Net proceeds from issuance of common stock 68 91 74 Net cash provided by financing activities 68 30,091 74 Net change in cash and cash equivalents (4,638 ) (7,741 ) 7,258 Cash and cash equivalents, beginning of period 8,095 15,836 8,578 Cash and cash equivalents, end of period $ 3,457 $ 8,095 $ 15,836 |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
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. In 2016, our insurance operations generated revenue from selling non-standard personal automobile insurance products and related products in 17 states and conducted our servicing and underwriting operations in 14 states. In December 2016, we closed all of our retail locations and ceased writing new business in the state of Missouri. The Company issued 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 ( . |
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 (loss) income. 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, which are charged against income, and (ii) the amount related to all other factors, which are recorded in other comprehensive (loss) 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, Cash Equivalents, and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash Cash, cash equivalents, and restricted cash consist of bank demand deposits and other highly-liquid investments. All investments with maturities of three months or less at the date of purchase are considered cash equivalents. At December 31, 2016 and December 31, 2015 the Company had restricted cash equivalents of $18.6 million and $9.4 million, respectively. |
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 which 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 (loss) income. 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 (loss) income. |
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 respected 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. A liability for returned commissions is established for the amount of commission income received that the Company estimates (based on historical experience) will be returned to third-party insurance companies as a result of policy cancellations. |
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 |
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 five 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 $0.2 million and $0.8 million at December 31, 2016 and 2015, respectively, are included within other assets in the accompanying consolidated balance sheets. On May 4, 2016, the Company sold one tract of land resulting in a gain of $1.2 million. |
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, 2016, 2015 and 2014 was $18.9 million, $16.3 million and $11.4 million, respectively, and is included within insurance operating expenses in the accompanying consolidated statements of operations and comprehensive (loss) income. |
Goodwill and Other Identifiable Intangible Assets | Goodwill and Other Identifiable Intangible Assets Goodwill and identifiable intangible assets are attributable to the Company’s insurance operations and were initially recorded at their estimated fair values at their dates of acquisition. Identifiable intangible assets with an indefinite life, (trade name and state insurance licenses) are not amortized for financial statement purposes while those with a definite life (policy renewal rights, customer relationships, and software licenses) are amortized in proportion to projected policy expirations or life of the asset. At December 31, 2016 and 2015, identifiable intangible assets were $7.6 million and $8.5 million, respectively, stated net of accumulated amortization expense of $1.5 million and $0.5 million, respectively. The estimated amortization expense for the five succeeding fiscal years is $0.8 million, $0.6 million, $0.5 million, $0.4 million, and $0.3 million. Effective with an accounting change made during the quarter ended December 31, 2015, the Company performs required annual impairment tests of its goodwill and identifiable intangible assets as of October 1st of each year. In the event that facts and circumstances indicate that goodwill or identifiable intangible assets may be impaired, an interim impairment test would be required. For goodwill impairment analysis purposes, the Company considers the Titan Agencies to be a separate reporting unit (see note 18). The Company follows the accounting guidelines, which allows companies to waive comparing the fair value of goodwill and 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 goodwill and intangible assets is greater than their carrying amounts. Based on recent entity-specific events, the Company elected to prepare a quantitative analysis for its annual impairment testing as of October 1, 2016. This review did not indicate any impairment. |
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. |
Evaluation of Going Concern | Evaluation of Going Concern Conformity with U.S. generally accepted accounting principles requires the Company to evaluate whether there are conditions and events that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the financial statements are issued. Management’s evaluation determined that the Company does not have substantial doubt continuing one year after the financial statements are issued. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) and the International Accounting Standards Board (“IASB”) jointly issued a new revenue recognition standard, Accounting Standard Update (“ASU”) No. 2014-09, “ Revenue from Contracts with Customers,” In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” In April 2015, the FASB issued ASU No. 2015-05, “ Intangibles-Goodwill and Other-Internal Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement” In May 2015, the FASB issued ASU No. 2015-09, “ Financial Services-Insurance (Topic 944): Disclosures about Short-Duration Contracts” In January 2016, the FASB issued ASU No. 2016-01, “ Financial Instruments – Overall (Subtopic 825-20): Recognition and Measure of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU No. 2016-02, “ Leases (Topic 842) In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326)” In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” In January 2017, the FASB issued ASU No. 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” |
Supplemental Cash Flow Information | Supplemental Cash Flow Information During the years ended December 31, 2016, 2015 and 2014, the Company paid $0.2 million, $0.7 million and $0.7 million, respectively, in income taxes and $4.2 million, $1.7 million and $1.7 million, respectively, in interest. |
Basic and Diluted Net (Loss) Income Per Share | Basic and Diluted Net (Loss) Income Per Share Basic net (loss) income per share is computed by dividing net (loss) income available to common shareholders by the weighted average number of common shares, while diluted net (loss) income per share is computed by dividing net (loss) income available to common shareholders by the weighted average number of such common shares and dilutive share equivalents. Dilutive share equivalents may result from the assumed exercise of employee stock options and restricted stock units and are calculated using the treasury stock method. |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Presentation of Carrying Values and Fair Values of Certain Financial Instruments | The carrying values and fair values of certain of the Company’s financial instruments were as follows (in thousands). December 31, 2016 December 31, 2015 Carrying Fair Carrying Fair Value Value Value Value Assets: Investments, available-for-sale $ 117,212 $ 117,212 $ 131,582 $ 131,582 Other investments 9,994 9,994 11,256 11,256 Liabilities: Debentures payable 40,302 11,488 40,256 20,275 Term loan from principal stockholder 29,779 15,000 29,753 28,504 |
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). Certain other investments are carried at net asset value which approximates fair value. Fair Value Measurements Using Quoted Prices Significant in Active Other Significant Proportionate Markets for Observable Unobservable Share of Identical Assets Inputs Inputs Net Assets December 31, 2016 Total (Level 1) (Level 2) (Level 3) (NAV) Fixed maturities, available-for-sale: U.S. government and agencies $ 18,951 $ 18,951 $ — $ — $ — Political subdivisions 4,165 — 4,165 — — Revenue and assessment 5,683 — 5,683 — — Corporate bonds 45,540 — 45,540 — — Collateralized mortgage obligations: Agency backed 22,422 — 22,422 — — Non-agency backed – residential 2,933 — 2,933 — — Non-agency backed – commercial 1,895 — 1,895 — — Total fixed maturities, available-for-sale 101,589 18,951 82,638 — — Preferred stock, available-for-sale 3,112 3,112 — — — Mutual funds, available-for-sale 12,511 12,511 — — — Total investments, available-for-sale 117,212 34,574 82,638 — — Other investments 9,994 — — 4,858 5,136 Cash, cash equivalents, and restricted cash 118,681 118,681 — — — Total $ 245,887 $ 153,255 $ 82,638 $ 4,858 $ 5,136 Fair Value Measurements Using Quoted Prices Significant in Active Other Significant Proportionate Markets for Observable Unobservable Share of Identical Assets Inputs Inputs Net Assets December 31, 2015 Total (Level 1) (Level 2) (Level 3) (NAV) Fixed maturities, available-for-sale: U.S. government and agencies $ 13,113 $ 13,113 $ — $ — $ — State 702 — 702 — — Political subdivisions 4,363 — 4,363 — — Revenue and assessment 12,644 — 12,644 — — Corporate bonds 80,785 — 80,785 — — Collateralized mortgage obligations: Agency backed 873 — 873 — — Non-agency backed – residential 3,455 — 3,455 — — Non-agency backed – commercial 2,507 — 2,507 — — Total fixed maturities, available-for-sale 118,442 13,113 105,329 — — Preferred stock, available-for-sale 1,723 1,723 — — — Mutual funds, available-for-sale 11,417 11,417 — — — Total investments, available-for-sale 131,582 26,253 105,329 — — Other investment 11,256 — — 3,276 7,980 Cash and cash equivalents 115,587 115,587 — — — Total $ 258,425 $ 141,840 $ 105,329 $ 3,276 $ 7,980 |
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, 2016 (in thousands). Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Common Stock at Fair Value Balance at December 31, 2015 $ 3,276 Gains included in net loss — Gains included in comprehensive loss 625 Investments and capital calls 957 Distributions received — Transfers into and out of Level 3 — Balance at December 31, 2016 $ 4,858 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Company's Investment Securities | The following tables summarize the Company’s investment securities (in thousands). Gross Gross Amortized Unrealized Unrealized Fair December 31, 2016 Cost Gains Losses Value U.S. government and agencies $ 19,142 $ 112 $ (303 ) $ 18,951 Political subdivisions 4,233 — (68 ) 4,165 Revenue and assessment 5,539 185 (41 ) 5,683 Corporate bonds 47,238 107 (1,805 ) 45,540 Collateralized mortgage obligations: Agency backed 23,093 73 (744 ) 22,422 Non-agency backed – residential 2,411 529 (7 ) 2,933 Non-agency backed – commercial 1,408 487 — 1,895 Total fixed maturities, available-for-sale 103,064 1,493 (2,968 ) 101,589 Preferred stock, available-for-sale 3,025 198 (111 ) 3,112 Mutual funds, available-for-sale 11,813 698 — 12,511 $ 117,902 $ 2,389 $ (3,079 ) $ 117,212 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2015 Cost Gains Losses Value U.S. government and agencies $ 13,036 $ 162 $ (85 ) $ 13,113 State 698 4 — 702 Political subdivisions 4,354 9 — 4,363 Revenue and assessment 11,770 895 (21 ) 12,644 Corporate bonds 79,426 2,022 (663 ) 80,785 Collateralized mortgage obligations: Agency backed 793 80 — 873 Non-agency backed – residential 2,877 579 (1 ) 3,455 Non-agency backed – commercial 1,891 616 — 2,507 Total fixed maturities, available-for-sale 114,845 4,367 (770 ) 118,442 Preferred stock, available-for-sale 1,500 223 — 1,723 Mutual funds, available-for-sale 11,959 120 (662 ) 11,417 $ 128,304 $ 4,710 $ (1,432 ) $ 131,582 |
Scheduled Maturities of Company's Fixed Maturity Securities Based on their Fair Values | The following table sets 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. Securities Securities Securities with No All with with Unrealized Fixed Unrealized Unrealized Gains or Maturity December 31, 2016 Gains Losses Losses Securities One year or less $ 2,302 $ 6,577 $ — $ 8,879 After one through five years 7,596 23,015 — 30,611 After five through ten years — 33,098 — 33,098 After ten years 1,751 — — 1,751 No single maturity date 5,507 21,743 — 27,250 $ 17,156 $ 84,433 $ — $ 101,589 |
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). Less than 12 months 12 months or longer December 31, 2016 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Gross Losses U.S. government and agencies $ 14,837 $ (303 ) $ — $ — $ (303 ) Political subdivisions 4,166 (68 ) — — (68 ) Revenue and assessment 2,783 (41 ) — — (41 ) Corporate bonds 41,057 (1,805 ) — — (1,805 ) Collateralized mortgage obligations: Agency backed 21,637 (744 ) — — (744 ) Non-agency backed – residential 105 (7 ) — — (7 ) Non-agency backed – commercial — — — — — Total fixed maturities, available-for-sale 84,585 (2,968 ) — — (2,968 ) Preferred stock, available-for-sale 1,415 (111 ) — — (111 ) Mutual funds, available-for-sale — — — — - $ 86,000 $ (3,079 ) $ — $ — $ (3,079 ) Less than 12 months 12 months or longer December 31, 2015 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Gross Losses U.S. government and agencies $ 8,946 $ (85 ) $ — $ — $ (85 ) State — — — — — Political subdivisions — — — — — Revenue and assessment 1,733 (21 ) — — (21 ) Corporate bonds 30,172 (422 ) 7,689 (241 ) (663 ) Collateralized mortgage obligations: Agency backed — — — — — Non-agency backed – residential 5 (1 ) — — (1 ) Non-agency backed – commercial 189 — — — — Total fixed maturities, available-for-sale 41,045 (529 ) 7,689 (241 ) (770 ) Preferred stock, available-for-sale — — — — — Mutual funds, available-for-sale 8,839 (662 ) — — (662 ) $ 49,884 $ (1,191 ) $ 7,689 $ (241 ) $ (1,432 ) |
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. Gross Unrealized Losses Less than Greater Gross or equal to than 12 Unrealized At: 12 months months Gains December 31, 2016 37 — 40 December 31, 2015 21 4 70 |
Fair Value and Gross Unrealized Losses of Fixed Maturity Securities in Continuous Unrealized Loss Position for Greater than 12 Months | The following table reflects the fair value and gross unrealized losses of those fixed maturity securities in a continuous unrealized loss position for greater than 12 months as of December 31, 2015. Gross unrealized losses are further segregated by the percentage of amortized cost (in thousands, except number of securities). Number Gross Gross Unrealized Losses of Fair Unrealized at December 31, 2015: Securities Value Losses Less than or equal to 10% 4 $ 7,689 (241 ) Greater than 10% — — — 4 $ 7,689 $ (241 ) |
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). Fair Value of Securities with Length of Gross Gross Severity of Gross Unrealized Losses Gross Unrealized Losses Unrealized Unrealized Less 5% to Greater at December 31, 2016: Losses Losses than 5% 10% than 10% Less than or equal to: Three months $ 58,550 $ (1,886 ) $ (1,461 ) $ (425 ) $ — Six months 27,193 (1,186 ) (232 ) (954 ) — Nine months 152 — — — — Twelve months 105 (7 ) — (7 ) — Greater than twelve months — — — — — Total $ 86,000 $ (3,079 ) $ (1,693 ) $ (1,386 ) $ — Fair Value of Securities with Length of Gross Gross Severity of Gross Unrealized Losses Gross Unrealized Losses Unrealized Unrealized Less 5% to Greater at December 31, 2015: Losses Losses than 5% 10% than 10% Less than or equal to: Three months $ 20,899 $ (130 ) $ (130 ) $ — $ — Six months 7,036 (465 ) — (465 ) — Nine months 14,057 (395 ) (197 ) (197 ) (1 ) Twelve months 7,892 (201 ) (201 ) — — Greater than twelve months 7,689 (241 ) (241 ) — — Total $ 57,573 $ (1,432 ) $ (769 ) $ (662 ) $ (1 ) |
Major Categories of Investment Income | The major categories of investment income follow (in thousands). Year Ended December 31, 2016 2015 2014 Fixed maturities, available-for-sale $ 3,558 $ 4,220 $ 4,481 Mutual funds, available-for-sale 704 666 832 Other investments 427 396 85 Other 448 236 214 Investment expenses (488 ) (494 ) (489 ) $ 4,649 $ 5,024 $ 5,123 |
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, 2016 2015 2014 Gains $ 4,982 $ 15 $ 85 Losses (22 ) (26 ) (62 ) Other than temporary impairment (147 ) — — $ 4,813 $ (11 ) $ 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, 2016, 2015, and 2014 (in thousands). Year Ended December 31, 2016 2015 2014 Beginning balance $ (2,632 ) $ (2,632 ) $ (2,632 ) Additional credit impairments on: Previously impaired securities — — — Securities without previous impairments (147 ) — — (147 ) — — Reductions for securities deemed worthless (realized) 595 — — $ (2,184 ) $ (2,632 ) $ (2,632 ) |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Insurance [Abstract] | |
Effects of Reinsurance Premium Written and Earned | Total premiums written and earned are summarized as follows (in thousands). Year Ended December 31, 2016 2015 2014 Written Earned Written Earned Written Earned Direct $ 262,110 $ 265,256 $ 247,498 $ 233,652 $ 200,983 $ 191,093 Assumed 37,381 38,522 35,500 33,707 29,311 27,487 Ceded (450 ) (450 ) (372 ) (372 ) (265 ) (265 ) Total $ 299,041 $ 303,328 $ 282,626 $ 266,987 $ 230,029 $ 218,315 |
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): Year Ended December 31, 2016 2015 2014 Ceded premiums earned $ 450 $ 372 $ 265 Reinsurance recoveries on losses and loss adjustment expenses $ 589 $ 239 $ 137 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 Price Weighted Average Exercise Price Aggregated Intrinsic Value 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 Forfeited (35 ) $ 3.04 $ 3.04 Options outstanding at December 31, 2015 1,085 $1.45-$3.04 $ 1.83 Forfeited (115 ) $1.45-$3.04 $ 2.00 Options outstanding at December 31, 2016 970 $1.45-$3.04 $ 1.81 $ - Options exercisable/vested at December 31, 2016 970 $ 1.81 $ - |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Components of Property and Equipment | The components of property and equipment are as follows (in thousands). Year Ended December 31, 2016 2015 Furniture and equipment $ 15,583 $ 12,878 Leasehold improvements 3,844 6,451 Capitalized leases — 238 Aircraft 190 190 19,617 19,757 Less: Accumulated depreciation (15,404 ) (14,616 ) Property and equipment, net $ 4,213 $ 5,141 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Summary of Future Minimum Lease Payments | Future minimum lease payments under these agreements follow (in thousands). For the Year Ended December 31, Amount 2017 $ 6,339 2018 4,036 2019 2,021 2020 1,041 2021 700 Thereafter 2,670 Total $ 16,807 |
Losses and Loss Adjustment Ex37
Losses and Loss Adjustment Expenses Incurred and Paid (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Insurance [Abstract] | |
Information Regarding the Reserve for Unpaid Losses and Loss Adjustment Expenses | Information regarding the reserve for unpaid losses and loss adjustment expenses (“LAE”) is as follows (in thousands). Year Ended December 31, 2016 2015 2014 Liability for unpaid losses and LAE at beginning of year, gross $ 122,071 $ 96,613 $ 84,286 Reinsurance balances receivable (464 ) (362 ) (305 ) Liability for unpaid losses and LAE at beginning of year, net 121,607 96,251 83,981 Add: Provision for losses and LAE: Current year 278,366 218,186 166,179 Prior year 30,636 845 (4,877 ) Net losses and LAE incurred 309,002 219,031 161,302 Less: Losses and LAE paid: Current year 163,792 129,216 98,437 Prior year 106,507 64,459 50,595 Net losses and LAE paid 270,299 193,675 149,032 Liability for unpaid losses and LAE at end of year, net 160,310 121,607 96,251 Reinsurance balances receivable 769 464 362 Liability for unpaid losses and LAE at end of year, gross $ 161,079 $ 122,071 $ 96,613 |
Schedule of Incurred and Cumulative Paid Losses and Loss Adjustment Expenses, Net of Reinsurance | Incurred losses and loss adjustment expenses, net of reinsurance, by accident year are as follows (in thousands). For the years ended December 31, Accident year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) 2007 $ 233,004 $ 230,360 $ 228,601 $ 228,716 $ 231,729 $ 231,931 $ 231,058 $ 230,931 $ 230,877 $ 230,862 2008 187,583 174,921 174,312 175,044 175,849 176,468 176,947 177,190 177,226 2009 146,584 140,539 140,501 141,936 142,819 142,772 142,546 142,705 2010 135,458 133,283 134,470 134,446 134,191 134,144 133,983 2011 126,384 126,886 126,272 126,373 125,810 125,670 2012 144,231 140,111 140,249 140,673 141,375 2013 145,878 140,775 142,053 144,076 2014 166,179 165,991 171,827 2015 218,186 240,419 2016 278,366 Total $ 1,786,509 Cumulative paid losses and loss adjustment expenses, net of reinsurance, by accident year are as follows (in thousands). For the years ended December 31, Accident 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 year (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) 2007 $ 157,162 $ 210,678 $ 222,406 $ 225,978 $ 228,304 $ 231,493 $ 230,891 $ 230,892 $ 230,873 $ 230,860 2008 122,207 160,366 169,373 172,768 174,688 175,700 176,331 176,907 177,154 2009 92,372 127,355 135,701 139,436 141,399 142,294 142,441 142,654 2010 87,319 120,301 128,843 131,878 132,989 133,648 133,896 2011 82,945 113,199 120,790 123,888 125,012 125,383 2012 89,159 123,869 133,397 137,968 139,781 2013 88,726 124,021 134,931 141,444 2014 98,437 144,943 162,702 2015 129,216 208,533 2016 163,792 Total $ 1,626,199 Total outstanding reserves for unpaid losses and LAE, net of reinsurance $ 160,310 |
Schedule of Frequency of Claims | As of December 31, 2016, frequency of claims by accident based on number of claimants is as follows. Accident year Incurred losses and LAE, net of reinsurance Total of incurred but not reported liabilities plus expected development on reported claims Cumulative number of reported claims 2007 $ 230,862 $ 3 117,206 2008 177,226 33 100,188 2009 142,705 26 78,607 2010 133,983 62 71,008 2011 125,670 211 65,831 2012 141,375 597 73,164 2013 144,076 1,784 73,714 2014 171,827 6,003 84,791 2015 240,419 21,968 108,755 2016 278,366 69,261 112,441 |
Schedule of Average Historical Annual Percentage Payout of Incurred Losses By Age, Net of Reinsurance (Unaudited) | The average historical annual percentage payout of incurred losses by age, net of reinsurance is as follows. The amounts reflected below represent the average length of time between the occurrence of a loss and its payment. These percentages are averages of the years present and therefore may not equal 100%. (Unaudited) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Non-standard auto 62.7 % 25.2 % 6.6 % 2.7 % 1.1 % 0.7 % 0.1 % 0.2 % 0.1 % 0.0 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Benefit for Income Taxes | The benefit for income taxes consisted of the following (in thousands). Year Ended December 31, 2016 2015 2014 Federal: Current $ — $ 20 $ 228 Deferred (16,024 ) (893 ) (19,098 ) (16,024 ) (873 ) (18,870 ) State: Current 328 255 650 Deferred (152 ) (24 ) (125 ) 176 231 525 $ (15,848 ) $ (642 ) $ (18,345 ) |
Provision (Benefit) for Income Taxes Differs from Amounts Computed by Applying Statutory Federal Corporate Tax Rate | The benefit for income taxes differs from the amounts computed by applying the statutory federal corporate tax rate of 35% to (loss) income before income taxes as a result of the following (in thousands). Year Ended December 31, 2016 2015 2014 (Benefit) provision for income taxes at statutory rate $ (15,796 ) $ (900 ) $ 3,403 Tax effect of: Tax-exempt investment income (48 ) (22 ) (21 ) Change in the beginning of the period balance of the valuation allowance for deferred tax assets allocated to federal income taxes (157 ) 9 (22,427 ) Stock-based compensation 64 22 137 State income taxes, net of federal income tax benefit and state valuation allowance 60 142 525 Other items 29 107 38 $ (15,848 ) $ (642 ) $ (18,345 ) |
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). Year Ended December 31, 2016 2015 Deferred tax assets: Net operating loss carryforwards $ 24,208 $ 6,859 Stock-based compensation 404 421 Unearned premiums and loss and loss adjustment expense reserves 6,752 6,797 Goodwill and identifiable intangible assets 2,832 4,252 Alternative minimum tax (“AMT”) credit carryforwards 2,015 2,015 Accrued expenses and other nondeductible items 1,345 1,551 Other 3,619 3,528 41,175 25,423 Deferred tax liabilities: Deferred acquisition costs (1,698 ) (1,928 ) Identifiable intangible assets (1,872 ) (1,872 ) Net unrealized gain on investments (73 ) (1,244 ) Other (19 ) (332 ) (3,662 ) (5,376 ) Total net deferred tax asset 37,513 20,047 Less: Valuation allowance (1,872 ) (1,746 ) Net deferred tax asset $ 35,641 $ 18,301 |
Net (Loss) Income Per Share (Ta
Net (Loss) Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net (Loss) Income Per Share | The following table sets forth the computation of basic and diluted net (loss) income per share (in thousands, except per share data). Year Ended December 31, 2016 2015 2014 Net (loss) income $ (29,282 ) $ (1,930 ) $ 28,068 Weighted average common basic shares 41,085 41,030 40,985 Effect of dilutive securities — — 298 Weighted average common dilutive shares 41,085 41,030 41,283 Basic and diluted net (loss) income per share $ (0.71 ) $ (0.05 ) $ 0.68 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 2015 2014 Revenues: Insurance $ 388,323 $ 331,828 $ 263,133 Real estate and corporate 1,300 64 61 Consolidated total $ 389,623 $ 331,892 $ 263,194 (Loss) income before income taxes: Insurance $ (40,685 ) $ 338 $ 12,549 Real estate and corporate (4,445 ) (2,910 ) (2,826 ) Consolidated total $ (45,130 ) $ (2,572 ) $ 9,723 December 31, 2016 2015 Total assets: Insurance $ 354,008 $ 373,475 Real estate and corporate 46,066 28,652 Consolidated total $ 400,074 $ 402,127 |
Selected Quarterly Financial 41
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 Revenues (Loss) Income Before Income Taxes Net (Loss) Income Basic and Diluted Net (Loss) Income Per Share Year Ended December 31, 2016: December 31, 2016 $ 87,806 $ (5,822 ) $ (3,545 ) $ (0.09 ) September 30, 2016 102,115 (327 ) (333 ) (0.01 ) June 30, 2016 102,754 (30,607 ) (19,899 ) (0.48 ) March 31, 2016 96,948 (8,374 ) (5,505 ) (0.13 ) Year Ended December 31, 2015: December 31, 2015 $ 88,536 $ 458 $ 287 $ - September 30, 2015 87,620 (4,524 ) (3,018 ) (0.07 ) June 30, 2015 80,631 690 315 0.01 March 31, 2015 75,105 804 486 0.01 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies - Additional Information (Detail) | May 04, 2016USD ($)Land | Dec. 31, 2016USD ($)State | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Indefinite-lived Intangible Assets [Line Items] | ||||
Number of states in which company writes non-standard personal automobile insurance | State | 17 | |||
Number of state in which company conducts servicing and underwriting operations | State | 14 | |||
Maximum maturity period of cash equivalents included in investments | 3 months | |||
Restricted cash equivalents | $ 18,600,000 | $ 9,400,000 | ||
Additional liability or reduction in deferred tax assets for unrecognized tax benefits | 0 | 0 | ||
Foreclosed real estate held for sale assets | 200,000 | 800,000 | ||
Tract of land sold | Land | 1 | |||
Gain on sale of land | $ 1,200,000 | 1,237,000 | ||
Amortization expenses | 18,900,000 | 16,300,000 | $ 11,400,000 | |
Identifiable intangible asset | 7,600,000 | 8,500,000 | ||
Accumulated amortization expense | 1,500,000 | 500,000 | ||
Estimated amortization expense, Year 1 | 800,000 | |||
Estimated amortization expense, Year 2 | 600,000 | |||
Estimated amortization expense, Year 3 | 500,000 | |||
Estimated amortization expense, Year 4 | 400,000 | |||
Estimated amortization expense, Year 5 | 300,000 | |||
Amount included in identifiable intangibles assets | 7,626,000 | 8,491,000 | ||
Income taxes | 200,000 | 700,000 | 700,000 | |
Interest expense | 4,200,000 | $ 1,700,000 | $ 1,700,000 | |
Accounting Standards Update, 2015-05 | Software Licenses | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Amount included in identifiable intangibles assets | $ 5,000 | |||
Minimum | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Estimated useful lives of the assets | 3 years | |||
Maximum | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Estimated useful lives of the assets | 5 years |
Fair Value - Presentation of Ca
Fair Value - Presentation of Carrying Values and Fair Values of Certain Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Assets: | ||
Investments, available-for-sale | $ 117,212 | $ 131,582 |
Other investments | 9,994 | 11,256 |
Liabilities: | ||
Debentures payable | 40,302 | 40,256 |
Term loan from principal stockholder | 29,779 | 29,753 |
Carrying Value | ||
Assets: | ||
Investments, available-for-sale | 117,212 | 131,582 |
Other investments | 9,994 | 11,256 |
Liabilities: | ||
Debentures payable | 40,302 | 40,256 |
Term loan from principal stockholder | 29,779 | 29,753 |
Fair Value | ||
Assets: | ||
Investments, available-for-sale | 117,212 | 131,582 |
Other investments | 9,994 | 11,256 |
Liabilities: | ||
Debentures payable | 11,488 | 20,275 |
Term loan from principal stockholder | $ 15,000 | $ 28,504 |
Fair Value - Presentation of Fa
Fair Value - Presentation of Fair-Value Measurements for Each Major Category of Assets Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Investments, available-for-sale | $ 117,212 | $ 131,582 | ||
Other investments | 9,994 | 11,256 | ||
Cash, cash equivalents, and restricted cash | 118,681 | 115,587 | $ 102,429 | $ 72,033 |
Cash and cash equivalents | 115,587 | |||
Total | 245,887 | 258,425 | ||
Other investments | 5,136 | 7,980 | ||
Total | 5,136 | 7,980 | ||
Fixed Maturities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Investments, available-for-sale | 101,589 | 118,442 | ||
Fixed Maturities | U.S. government and agencies | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Investments, available-for-sale | 18,951 | 13,113 | ||
Fixed Maturities | State | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Investments, available-for-sale | 702 | |||
Fixed Maturities | Political subdivisions | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Investments, available-for-sale | 4,165 | 4,363 | ||
Fixed Maturities | Revenue and assessment | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Investments, available-for-sale | 5,683 | 12,644 | ||
Fixed Maturities | Corporate bonds | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Investments, available-for-sale | 45,540 | 80,785 | ||
Fixed Maturities | Collateralized mortgage obligations: Agency Backed | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Investments, available-for-sale | 22,422 | 873 | ||
Fixed Maturities | Collateralized mortgage obligations: Non-agency backed - residential | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Investments, available-for-sale | 2,933 | 3,455 | ||
Fixed Maturities | Collateralized mortgage obligations: Non-agency backed - commercial | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Investments, available-for-sale | 1,895 | 2,507 | ||
Preferred stock, available-for-sale | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Investments, available-for-sale | 3,112 | 1,723 | ||
Mutual funds, available-for-sale | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Investments, available-for-sale | 12,511 | 11,417 | ||
Fair Value Measurements Using Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Investments, available-for-sale | 34,574 | 26,253 | ||
Cash, cash equivalents, and restricted cash | 118,681 | |||
Cash and cash equivalents | 115,587 | |||
Total | 153,255 | 141,840 | ||
Fair Value Measurements Using Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed Maturities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Investments, available-for-sale | 18,951 | 13,113 | ||
Fair Value Measurements Using Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed Maturities | U.S. government and agencies | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Investments, available-for-sale | 18,951 | 13,113 | ||
Fair Value Measurements Using Quoted Prices in Active Markets for Identical Assets (Level 1) | Preferred stock, available-for-sale | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Investments, available-for-sale | 3,112 | 1,723 | ||
Fair Value Measurements Using Quoted Prices in Active Markets for Identical Assets (Level 1) | Mutual funds, available-for-sale | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Investments, available-for-sale | 12,511 | 11,417 | ||
Fair Value Measurements Using Significant Other Observable Inputs (Level 2) | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Investments, available-for-sale | 82,638 | 105,329 | ||
Total | 82,638 | 105,329 | ||
Fair Value Measurements Using Significant Other Observable Inputs (Level 2) | Fixed Maturities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Investments, available-for-sale | 82,638 | 105,329 | ||
Fair Value Measurements Using Significant Other Observable Inputs (Level 2) | Fixed Maturities | State | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Investments, available-for-sale | 702 | |||
Fair Value Measurements Using Significant Other Observable Inputs (Level 2) | Fixed Maturities | Political subdivisions | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Investments, available-for-sale | 4,165 | 4,363 | ||
Fair Value Measurements Using Significant Other Observable Inputs (Level 2) | Fixed Maturities | Revenue and assessment | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Investments, available-for-sale | 5,683 | 12,644 | ||
Fair Value Measurements Using Significant Other Observable Inputs (Level 2) | Fixed Maturities | Corporate bonds | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Investments, available-for-sale | 45,540 | 80,785 | ||
Fair Value Measurements Using Significant Other Observable Inputs (Level 2) | Fixed Maturities | Collateralized mortgage obligations: Agency Backed | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Investments, available-for-sale | 22,422 | 873 | ||
Fair Value Measurements Using Significant Other Observable Inputs (Level 2) | Fixed Maturities | Collateralized mortgage obligations: Non-agency backed - residential | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Investments, available-for-sale | 2,933 | 3,455 | ||
Fair Value Measurements Using Significant Other Observable Inputs (Level 2) | Fixed Maturities | Collateralized mortgage obligations: Non-agency backed - commercial | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Investments, available-for-sale | 1,895 | 2,507 | ||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Other investments | 4,858 | 3,276 | ||
Total | $ 4,858 | $ 3,276 |
Fair Value - Additional Informa
Fair Value - Additional Information (Detail) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value Disclosures [Abstract] | ||
Transfers between level 1 and level 2 | $ 0 | $ 0 |
Transfers between level 2 and level 1 | $ 0 | $ 0 |
Fair Value - Quantitative Discl
Fair Value - Quantitative Disclosure for Assets Classified as Level 3 (Detail) - Common Stock at Fair Value $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | |
Balance at December 31, 2015 | $ 3,276 |
Gains included in comprehensive loss | 625 |
Investments and capital calls | 957 |
Balance at December 31, 2016 | $ 4,858 |
Investments - Summary of Compan
Investments - Summary of Company's Investment Securities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Investment Securities [Line Items] | ||
Amortized Cost | $ 117,902 | $ 128,304 |
Gross Unrealized Gains | 2,389 | 4,710 |
Gross Unrealized Losses | (3,079) | (1,432) |
Fair Value | 117,212 | 131,582 |
Fixed Maturities | ||
Investment Securities [Line Items] | ||
Amortized Cost | 103,064 | 114,845 |
Gross Unrealized Gains | 1,493 | 4,367 |
Gross Unrealized Losses | (2,968) | (770) |
Fair Value | 101,589 | 118,442 |
Fixed Maturities | U.S. government and agencies | ||
Investment Securities [Line Items] | ||
Amortized Cost | 19,142 | 13,036 |
Gross Unrealized Gains | 112 | 162 |
Gross Unrealized Losses | (303) | (85) |
Fair Value | 18,951 | 13,113 |
Fixed Maturities | Political subdivisions | ||
Investment Securities [Line Items] | ||
Amortized Cost | 4,233 | 4,354 |
Gross Unrealized Gains | 9 | |
Gross Unrealized Losses | (68) | |
Fair Value | 4,165 | 4,363 |
Fixed Maturities | Revenue and assessment | ||
Investment Securities [Line Items] | ||
Amortized Cost | 5,539 | 11,770 |
Gross Unrealized Gains | 185 | 895 |
Gross Unrealized Losses | (41) | (21) |
Fair Value | 5,683 | 12,644 |
Fixed Maturities | Corporate bonds | ||
Investment Securities [Line Items] | ||
Amortized Cost | 47,238 | 79,426 |
Gross Unrealized Gains | 107 | 2,022 |
Gross Unrealized Losses | (1,805) | (663) |
Fair Value | 45,540 | 80,785 |
Fixed Maturities | Collateralized mortgage obligations: Agency Backed | ||
Investment Securities [Line Items] | ||
Amortized Cost | 23,093 | 793 |
Gross Unrealized Gains | 73 | 80 |
Gross Unrealized Losses | (744) | |
Fair Value | 22,422 | 873 |
Fixed Maturities | Collateralized mortgage obligations: Non-agency backed - residential | ||
Investment Securities [Line Items] | ||
Amortized Cost | 2,411 | 2,877 |
Gross Unrealized Gains | 529 | 579 |
Gross Unrealized Losses | (7) | (1) |
Fair Value | 2,933 | 3,455 |
Fixed Maturities | Collateralized mortgage obligations: Non-agency backed - commercial | ||
Investment Securities [Line Items] | ||
Amortized Cost | 1,408 | 1,891 |
Gross Unrealized Gains | 487 | 616 |
Fair Value | 1,895 | 2,507 |
Fixed Maturities | State | ||
Investment Securities [Line Items] | ||
Amortized Cost | 698 | |
Gross Unrealized Gains | 4 | |
Fair Value | 702 | |
Preferred stock, available-for-sale | ||
Investment Securities [Line Items] | ||
Amortized Cost | 3,025 | 1,500 |
Gross Unrealized Gains | 198 | 223 |
Gross Unrealized Losses | (111) | |
Fair Value | 3,112 | 1,723 |
Mutual funds, available-for-sale | ||
Investment Securities [Line Items] | ||
Amortized Cost | 11,813 | 11,959 |
Gross Unrealized Gains | 698 | 120 |
Gross Unrealized Losses | (662) | |
Fair Value | $ 12,511 | $ 11,417 |
Investments - Scheduled Maturit
Investments - Scheduled Maturities of Company's Fixed Maturity Securities Based on their Fair Values (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Securities with Unrealized Losses, Total | $ 86,000 | $ 57,573 |
Fixed Maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities with Unrealized Gains, One year or less | 2,302 | |
Securities with Unrealized Gains, After one through five years | 7,596 | |
Securities with Unrealized Gains, After ten years | 1,751 | |
Securities with Unrealized Gains, No single maturity date | 5,507 | |
Securities with Unrealized Gains, Total | 17,156 | |
Securities with Unrealized Losses, One year or less | 6,577 | |
Securities with Unrealized Losses, After one through five years | 23,015 | |
Securities with Unrealized Losses, After five through ten years | 33,098 | |
Securities with Unrealized Losses, No single maturity date | 21,743 | |
Securities with Unrealized Losses, Total | 84,433 | |
All Fixed Maturity Securities, One year or less | 8,879 | |
All Fixed Maturity Securities, After one through five years | 30,611 | |
All Fixed Maturity Securities, After five through ten years | 33,098 | |
All Fixed Maturity Securities, After ten years | 1,751 | |
All Fixed Maturity Securities, No single maturity date | 27,250 | |
All Fixed Maturity Securities, Total | $ 101,589 |
Investments - Fair Value and Gr
Investments - Fair Value and Gross Unrealized Losses of Investments, Available-for-Sale, by the Length of Time (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair value | $ 86,000 | $ 49,884 |
Less than 12 months, Gross Unrealized Losses | (3,079) | (1,191) |
12 months or longer, Fair value | 7,689 | |
12 months or longer, Gross Unrealized Losses | (241) | |
Total Gross Unrealized Losses | (3,079) | (1,432) |
Total Fixed Maturities, Available-for-Sale | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair value | 84,585 | 41,045 |
Less than 12 months, Gross Unrealized Losses | (2,968) | (529) |
12 months or longer, Fair value | 7,689 | |
12 months or longer, Gross Unrealized Losses | (241) | |
Total Gross Unrealized Losses | (2,968) | (770) |
Mutual Fund, Available-for-Sale | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair value | 8,839 | |
Less than 12 months, Gross Unrealized Losses | (662) | |
Total Gross Unrealized Losses | (662) | |
U.S. Government and Agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair value | 14,837 | 8,946 |
Less than 12 months, Gross Unrealized Losses | (303) | (85) |
Total Gross Unrealized Losses | (303) | (85) |
Political Subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair value | 4,166 | |
Less than 12 months, Gross Unrealized Losses | (68) | |
Total Gross Unrealized Losses | (68) | |
Revenue and Assessment | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair value | 2,783 | 1,733 |
Less than 12 months, Gross Unrealized Losses | (41) | (21) |
Total Gross Unrealized Losses | (41) | (21) |
Corporate Bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair value | 41,057 | 30,172 |
Less than 12 months, Gross Unrealized Losses | (1,805) | (422) |
12 months or longer, Fair value | 7,689 | |
12 months or longer, Gross Unrealized Losses | (241) | |
Total Gross Unrealized Losses | (1,805) | (663) |
Agency Backed | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair value | 21,637 | |
Less than 12 months, Gross Unrealized Losses | (744) | |
Total Gross Unrealized Losses | (744) | |
Non-Agency Backed - Residential | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair value | 105 | 5 |
Less than 12 months, Gross Unrealized Losses | (7) | (1) |
Total Gross Unrealized Losses | (7) | (1) |
Collateralized mortgage obligations: Non-agency backed - commercial | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair value | $ 189 | |
Preferred Stock, available-for-sale | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair value | 1,415 | |
Less than 12 months, Gross Unrealized Losses | (111) | |
Total Gross Unrealized Losses | $ (111) |
Investments - Number of Fixed M
Investments - Number of Fixed Maturity Securities with Gross Unrealized Gains and Losses (Detail) - Security | Dec. 31, 2016 | Dec. 31, 2015 |
Investments Debt And Equity Securities [Abstract] | ||
Number of Securities with Gross Unrealized Losses Less than or equal to 12 months | 37 | 21 |
Number of Securities with Gross Unrealized Losses Greater than 12 months | 0 | 4 |
Number of Securities with Gross Unrealized Gains | 40 | 70 |
Investments - Additional Inform
Investments - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2016USD ($)SecurityFund | Dec. 31, 2015USD ($)Security | Dec. 31, 2014USD ($) | |
Investments Debt And Equity Securities [Abstract] | |||
Number of securities | Security | 0 | 4 | |
Number of investment funds | Fund | 2 | ||
Unfunded commitments | $ 200,000 | ||
Fixed maturities and cash equivalents on deposit with various insurance departments at fair value and amortized cost | 6,400,000 | ||
Cash equivalents on deposit with another insurance company at fair value and amortized cost | 17,000,000 | ||
Non credit other than temporary impairment for securities | 1,000,000 | $ 1,200,000 | |
OTTI charges recognized in net (loss) income | $ 147,000 | $ 0 | $ 0 |
Investments - Fair Value and 52
Investments - Fair Value and Gross Unrealized Losses of Fixed Maturity Securities in Continuous Unrealized Loss Position for Greater than 12 Months (Detail) $ in Thousands | Dec. 31, 2016Security | Dec. 31, 2015USD ($)Security |
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities | Security | 0 | 4 |
Fair Value | $ 7,689 | |
Gross Unrealized Losses | $ (241) | |
Percentage of amortized cost less than or equal to 10% | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities | Security | 4 | |
Fair Value | $ 7,689 | |
Gross Unrealized Losses | $ (241) |
Investments - Gross Unrealized
Investments - Gross Unrealized Losses by Current Severity and Length of Time that Individual Securities have been in Continuous Unrealized Loss Position (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Investment Maturity Date [Line Items] | ||
Fair Value of Securities with Gross Unrealized Losses | $ 86,000 | $ 57,573 |
Gross Unrealized Losses | (3,079) | (1,432) |
Percentage of amortized cost less than 5% | ||
Investment Maturity Date [Line Items] | ||
Gross Unrealized Losses | (1,693) | (769) |
Percentage of amortized cost 5% to 10% | ||
Investment Maturity Date [Line Items] | ||
Gross Unrealized Losses | (1,386) | (662) |
Percentage of amortized cost greater than 10% | ||
Investment Maturity Date [Line Items] | ||
Gross Unrealized Losses | (1) | |
Less than or equals to three months | ||
Investment Maturity Date [Line Items] | ||
Fair Value of Securities with Gross Unrealized Losses | 58,550 | 20,899 |
Gross Unrealized Losses | (1,886) | (130) |
Less than or equals to three months | Percentage of amortized cost less than 5% | ||
Investment Maturity Date [Line Items] | ||
Gross Unrealized Losses | (1,461) | (130) |
Less than or equals to three months | Percentage of amortized cost 5% to 10% | ||
Investment Maturity Date [Line Items] | ||
Gross Unrealized Losses | (425) | |
Less than or equals to six months | ||
Investment Maturity Date [Line Items] | ||
Fair Value of Securities with Gross Unrealized Losses | 27,193 | 7,036 |
Gross Unrealized Losses | (1,186) | (465) |
Less than or equals to six months | Percentage of amortized cost less than 5% | ||
Investment Maturity Date [Line Items] | ||
Gross Unrealized Losses | (232) | |
Less than or equals to six months | Percentage of amortized cost 5% to 10% | ||
Investment Maturity Date [Line Items] | ||
Gross Unrealized Losses | (954) | (465) |
Less than or equals to nine months | ||
Investment Maturity Date [Line Items] | ||
Fair Value of Securities with Gross Unrealized Losses | 152 | 14,057 |
Gross Unrealized Losses | (395) | |
Less than or equals to nine months | Percentage of amortized cost less than 5% | ||
Investment Maturity Date [Line Items] | ||
Gross Unrealized Losses | (197) | |
Less than or equals to nine months | Percentage of amortized cost 5% to 10% | ||
Investment Maturity Date [Line Items] | ||
Gross Unrealized Losses | (197) | |
Less than or equals to nine months | Percentage of amortized cost greater than 10% | ||
Investment Maturity Date [Line Items] | ||
Gross Unrealized Losses | (1) | |
Less than or equals to twelve months | ||
Investment Maturity Date [Line Items] | ||
Fair Value of Securities with Gross Unrealized Losses | 105 | 7,892 |
Gross Unrealized Losses | (7) | (201) |
Less than or equals to twelve months | Percentage of amortized cost less than 5% | ||
Investment Maturity Date [Line Items] | ||
Gross Unrealized Losses | (201) | |
Less than or equals to twelve months | Percentage of amortized cost 5% to 10% | ||
Investment Maturity Date [Line Items] | ||
Gross Unrealized Losses | $ (7) | |
Greater than 12 months | ||
Investment Maturity Date [Line Items] | ||
Fair Value of Securities with Gross Unrealized Losses | 7,689 | |
Gross Unrealized Losses | (241) | |
Greater than 12 months | Percentage of amortized cost less than 5% | ||
Investment Maturity Date [Line Items] | ||
Gross Unrealized Losses | $ (241) |
Investments - Major Categories
Investments - Major Categories of Investment Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net Investment Income [Line Items] | |||
Investment expenses | $ (488) | $ (494) | $ (489) |
Net investment income | 4,649 | 5,024 | 5,123 |
Fixed Maturities | |||
Net Investment Income [Line Items] | |||
Gross investment income | 3,558 | 4,220 | 4,481 |
Mutual funds, available-for-sale | |||
Net Investment Income [Line Items] | |||
Gross investment income | 704 | 666 | 832 |
Other investments | |||
Net Investment Income [Line Items] | |||
Gross investment income | 427 | 396 | 85 |
Other | |||
Net Investment Income [Line Items] | |||
Gross investment income | $ 448 | $ 236 | $ 214 |
Investments - Components of Net
Investments - Components of Net Realized Gains (Losses) on Investments, Available-for-Sale at Fair Value (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Investments Debt And Equity Securities [Abstract] | |||
Gains | $ 4,982,000 | $ 15,000 | $ 85,000 |
Losses | (22,000) | (26,000) | (62,000) |
Other than temporary impairment | (147,000) | 0 | 0 |
Net realized gains (losses) on investments, available-for-sale | $ 4,813,000 | $ (11,000) | $ 23,000 |
Investments - Progression of Cr
Investments - Progression of Credit-Related Portion of OTTI on Investments (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Investments Debt And Equity Securities [Abstract] | |||
Beginning balance | $ (2,632) | $ (2,632) | $ (2,632) |
Additional credit impairments on: | |||
Previously impaired securities | 0 | 0 | 0 |
Securities without previous impairments | (147) | 0 | 0 |
Total additional credit impairments securities | (147) | 0 | 0 |
Reductions for securities deemed worthless (realized) | 595 | 0 | 0 |
Ending balance | $ (2,184) | $ (2,632) | $ (2,632) |
Reinsurance - Effects of Reinsu
Reinsurance - Effects of Reinsurance Premium Written and Earned (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Insurance [Abstract] | |||
Direct Written | $ 262,110 | $ 247,498 | $ 200,983 |
Assumed Written | 37,381 | 35,500 | 29,311 |
Ceded Written | (450) | (372) | (265) |
Written Total | 299,041 | 282,626 | 230,029 |
Direct Earned | 265,256 | 233,652 | 191,093 |
Assumed Earned | 38,522 | 33,707 | 27,487 |
Ceded Earned | (450) | (372) | (265) |
Earned Total | $ 303,328 | $ 266,987 | $ 218,315 |
Reinsurance - Additional Inform
Reinsurance - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Insurance [Abstract] | |||
Percentage of quota-share reinsurance | 100.00% | ||
Percentages of premiums | 13.00% | 13.00% | 13.00% |
Unsecured aggregate reinsurance receivables | $ 0.8 |
Reinsurance - Ceded Premiums Ea
Reinsurance - Ceded Premiums Earned and Reinsurance Recoveries on Losses and Loss Adjustment Expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Insurance [Abstract] | |||
Ceded premiums earned | $ 450 | $ 372 | $ 265 |
Reinsurance recoveries on losses and loss adjustment expenses | $ 589 | $ 239 | $ 137 |
Stock-Based Compensation Plan60
Stock-Based Compensation Plans - Additional Information (Detail) - USD ($) | Jan. 31, 2017 | Mar. 15, 2016 | Mar. 10, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Remaining available shares for issuance under the plan | 7,332,533 | |||||||
Stock Option Awards expiry range | 5 years | |||||||
Stock Option Awards granted | 0 | |||||||
Options outstanding | 970,000 | 1,085,000 | 1,120,000 | 970,000 | 1,237,000 | |||
Compensation expense to purchase shares under the ESPP | $ 207,000 | $ 144,000 | $ 185,000 | |||||
Employee Stock Purchase Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of authorize payroll deductions | 15.00% | 15.00% | ||||||
Maximum Amount of outstanding stock to be subscribed | $ 25,000 | |||||||
Company reserved shares of common stock for issuance under the ESPP | 600,000 | 600,000 | ||||||
Employees purchase shares | 64,000 | 37,000 | 31,000 | |||||
Compensation expense to purchase shares under the ESPP | $ 19,000 | $ 12,000 | $ 11,000 | |||||
Shares remain available for issuance under the ESPP | 186,174 | 186,174 | ||||||
Subsequent Event | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options expired unexercised | 750,000 | |||||||
Options outstanding | 220,000 | |||||||
Exercise price of options unexercised | $ 3.04 | |||||||
Stock Option Awards expiration date | Mar. 17, 2018 | |||||||
Employee Stock Options | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock Option Awards expiry range | 10 years | |||||||
Restricted stock | Executive Officer | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Closing market price per share of common stock | $ 2.30 | $ 2.44 | ||||||
Compensation awarded restricted stock units | 146,000 | 141,000 |
Stock-Based Compensation Plan61
Stock-Based Compensation Plans - Summary of the Activity for the Company's Stock Option Awards (Detail) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options outstanding, Options, Beginning Balance | 1,085 | 1,120 | 1,237 |
Forfeited, Options | (115) | (35) | (117) |
Options outstanding, Options, Ending Balance | 970 | 1,085 | 1,120 |
Options exercisable/vested at December 31, 2016 | 970 | ||
Forfeited, Exercise Price | $ 3.04 | $ 5.22 | |
Options outstanding, Weighted Average Exercise Price, Beginning Balance | $ 1.83 | 1.87 | 2.19 |
Forfeited, Weighted Average Exercise Price | 2 | 3.04 | 5.22 |
Options outstanding, Weighted Average Exercise Price, Ending Balance | 1.81 | 1.83 | 1.87 |
Options exercisable/vested at December 31, 2016, Weighted Average Exercise Price | 1.81 | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding, Exercise Price, Beginning Balance | 1.45 | 1.45 | 1.45 |
Forfeited, Exercise Price | 1.45 | ||
Options Outstanding, Exercise Price, Ending Balance | 1.45 | 1.45 | 1.45 |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding, Exercise Price, Beginning Balance | 3.04 | 3.04 | 8.13 |
Forfeited, Exercise Price | 3.04 | ||
Options Outstanding, Exercise Price, Ending Balance | $ 3.04 | $ 3.04 | $ 3.04 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
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 | $ 1.1 | $ 1 | $ 0.7 |
Property and Equipment - Compon
Property and Equipment - Components of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 19,617 | $ 19,757 |
Less: Accumulated depreciation | (15,404) | (14,616) |
Property and equipment, net | 4,213 | 5,141 |
Furniture and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 15,583 | 12,878 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 3,844 | 6,451 |
Capitalized Leases | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 238 | |
Aircraft | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 190 | $ 190 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property Plant And Equipment Useful Life And Values [Abstract] | |||
Depreciation expense | $ 2,540 | $ 1,751 | $ 1,767 |
Lease Commitments - Additional
Lease Commitments - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Leases [Abstract] | |||
Rental expense | $ 11.3 | $ 11.2 | $ 8.9 |
Lease Commitments - Summary of
Lease Commitments - Summary of Future Minimum Lease Payments (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Leases [Abstract] | |
2,017 | $ 6,339 |
2,018 | 4,036 |
2,019 | 2,021 |
2,020 | 1,041 |
2,021 | 700 |
Thereafter | 2,670 |
Total | $ 16,807 |
Losses and Loss Adjustment Ex67
Losses and Loss Adjustment Expenses Incurred and Paid - Information Regarding the Reserve for Unpaid Losses and Loss Adjustment Expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Insurance [Abstract] | |||
Liability for unpaid losses and LAE at beginning of year, gross | $ 122,071 | $ 96,613 | $ 84,286 |
Reinsurance balances receivable, beginning balance | (464) | (362) | (305) |
Liability for unpaid losses and LAE at beginning of year, net | 121,607 | 96,251 | 83,981 |
Add: Provision for losses and LAE: | |||
Current year | 278,366 | 218,186 | 166,179 |
Prior year | 30,636 | 845 | (4,877) |
Net losses and LAE incurred | 309,002 | 219,031 | 161,302 |
Less: Losses and LAE paid: | |||
Current year | 163,792 | 129,216 | 98,437 |
Prior year | 106,507 | 64,459 | 50,595 |
Net losses and LAE paid | 270,299 | 193,675 | 149,032 |
Liability for unpaid losses and LAE at end of year, net | 160,310 | 121,607 | 96,251 |
Reinsurance balances receivable, ending balance | 769 | 464 | 362 |
Liability for unpaid losses and LAE at end of year, gross | $ 161,079 | $ 122,071 | $ 96,613 |
Losses and Loss Adjustment Ex68
Losses and Loss Adjustment Expenses Incurred and Paid - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Insurance [Abstract] | |||
Unpaid losses and loss adjustment expenses | $ (30,636) | $ (845) | $ 4,877 |
Losses and Loss Adjustment Ex69
Losses and Loss Adjustment Expenses Incurred and Paid - Schedule of Incurred Losses and Loss Adjustment Expenses, Net of Reinsurance (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2008 | Dec. 31, 2007 |
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | $ 1,786,509 | |||||||||
Accident Year 2007 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | 230,862 | $ 230,877 | $ 230,931 | $ 231,058 | $ 231,931 | $ 231,729 | $ 228,716 | $ 228,601 | $ 230,360 | $ 233,004 |
Accident Year 2008 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | 177,226 | 177,190 | 176,947 | 176,468 | 175,849 | 175,044 | 174,312 | 174,921 | $ 187,583 | |
Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | 142,705 | 142,546 | 142,772 | 142,819 | 141,936 | 140,501 | 140,539 | $ 146,584 | ||
Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | 133,983 | 134,144 | 134,191 | 134,446 | 134,470 | 133,283 | $ 135,458 | |||
Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | 125,670 | 125,810 | 126,373 | 126,272 | 126,886 | $ 126,384 | ||||
Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | 141,375 | 140,673 | 140,249 | 140,111 | $ 144,231 | |||||
Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | 144,076 | 142,053 | 140,775 | $ 145,878 | ||||||
Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | 171,827 | 165,991 | $ 166,179 | |||||||
Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | 240,419 | $ 218,186 | ||||||||
Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | $ 278,366 |
Losses and Loss Adjustment Ex70
Losses and Loss Adjustment Expenses Incurred and Paid - Schedule of Cumulative Paid Losses and Loss Adjustment Expenses, Net of Reinsurance (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2008 | Dec. 31, 2007 |
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 1,626,199 | |||||||||
Total outstanding reserves for unpaid losses and LAE, net of reinsurance | 160,310 | |||||||||
Accident Year 2007 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | 230,860 | $ 230,873 | $ 230,892 | $ 230,891 | $ 231,493 | $ 228,304 | $ 225,978 | $ 222,406 | $ 210,678 | $ 157,162 |
Accident Year 2008 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | 177,154 | 176,907 | 176,331 | 175,700 | 174,688 | 172,768 | 169,373 | 160,366 | $ 122,207 | |
Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | 142,654 | 142,441 | 142,294 | 141,399 | 139,436 | 135,701 | 127,355 | $ 92,372 | ||
Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | 133,896 | 133,648 | 132,989 | 131,878 | 128,843 | 120,301 | $ 87,319 | |||
Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | 125,383 | 125,012 | 123,888 | 120,790 | 113,199 | $ 82,945 | ||||
Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | 139,781 | 137,968 | 133,397 | 123,869 | $ 89,159 | |||||
Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | 141,444 | 134,931 | 124,021 | $ 88,726 | ||||||
Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | 162,702 | 144,943 | $ 98,437 | |||||||
Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | 208,533 | $ 129,216 | ||||||||
Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 163,792 |
Losses and Loss Adjustment Ex71
Losses and Loss Adjustment Expenses Incurred and Paid - Schedule of Frequency of Claims (Detail) $ in Thousands | Dec. 31, 2016USD ($)Claim | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2009USD ($) | Dec. 31, 2008USD ($) | Dec. 31, 2007USD ($) |
Claims Development [Line Items] | ||||||||||
Incurred losses and LAE, net of reinsurance | $ 1,786,509 | |||||||||
Accident Year 2007 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and LAE, net of reinsurance | 230,862 | $ 230,877 | $ 230,931 | $ 231,058 | $ 231,931 | $ 231,729 | $ 228,716 | $ 228,601 | $ 230,360 | $ 233,004 |
Total of incurred but not reported liabilities plus expected development on reported claims | $ 3 | |||||||||
Cumulative number of reported claims | Claim | 117,206 | |||||||||
Accident Year 2008 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and LAE, net of reinsurance | $ 177,226 | 177,190 | 176,947 | 176,468 | 175,849 | 175,044 | 174,312 | 174,921 | $ 187,583 | |
Total of incurred but not reported liabilities plus expected development on reported claims | $ 33 | |||||||||
Cumulative number of reported claims | Claim | 100,188 | |||||||||
Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and LAE, net of reinsurance | $ 142,705 | 142,546 | 142,772 | 142,819 | 141,936 | 140,501 | 140,539 | $ 146,584 | ||
Total of incurred but not reported liabilities plus expected development on reported claims | $ 26 | |||||||||
Cumulative number of reported claims | Claim | 78,607 | |||||||||
Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and LAE, net of reinsurance | $ 133,983 | 134,144 | 134,191 | 134,446 | 134,470 | 133,283 | $ 135,458 | |||
Total of incurred but not reported liabilities plus expected development on reported claims | $ 62 | |||||||||
Cumulative number of reported claims | Claim | 71,008 | |||||||||
Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and LAE, net of reinsurance | $ 125,670 | 125,810 | 126,373 | 126,272 | 126,886 | $ 126,384 | ||||
Total of incurred but not reported liabilities plus expected development on reported claims | $ 211 | |||||||||
Cumulative number of reported claims | Claim | 65,831 | |||||||||
Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and LAE, net of reinsurance | $ 141,375 | 140,673 | 140,249 | 140,111 | $ 144,231 | |||||
Total of incurred but not reported liabilities plus expected development on reported claims | $ 597 | |||||||||
Cumulative number of reported claims | Claim | 73,164 | |||||||||
Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and LAE, net of reinsurance | $ 144,076 | 142,053 | 140,775 | $ 145,878 | ||||||
Total of incurred but not reported liabilities plus expected development on reported claims | $ 1,784 | |||||||||
Cumulative number of reported claims | Claim | 73,714 | |||||||||
Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and LAE, net of reinsurance | $ 171,827 | 165,991 | $ 166,179 | |||||||
Total of incurred but not reported liabilities plus expected development on reported claims | $ 6,003 | |||||||||
Cumulative number of reported claims | Claim | 84,791 | |||||||||
Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and LAE, net of reinsurance | $ 240,419 | $ 218,186 | ||||||||
Total of incurred but not reported liabilities plus expected development on reported claims | $ 21,968 | |||||||||
Cumulative number of reported claims | Claim | 108,755 | |||||||||
Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and LAE, net of reinsurance | $ 278,366 | |||||||||
Total of incurred but not reported liabilities plus expected development on reported claims | $ 69,261 | |||||||||
Cumulative number of reported claims | Claim | 112,441 |
Losses and Loss Adjustment Ex72
Losses and Loss Adjustment Expenses Incurred and Paid - Schedule of Average Historical Annual Percentage Payout of Incurred Losses By Age, Net of Reinsurance (Unaudited) (Detail) | Dec. 31, 2016 |
Insurance [Abstract] | |
Average historical annual percentage payout of incurred losses by age, net of reinsurance, year 1 | 62.70% |
Average historical annual percentage payout of incurred losses by age, net of reinsurance, year 2 | 25.20% |
Average historical annual percentage payout of incurred losses by age, net of reinsurance, year 3 | 6.60% |
Average historical annual percentage payout of incurred losses by age, net of reinsurance, year 4 | 2.70% |
Average historical annual percentage payout of incurred losses by age, net of reinsurance, year 5 | 1.10% |
Average historical annual percentage payout of incurred losses by age, net of reinsurance, year 6 | 0.70% |
Average historical annual percentage payout of incurred losses by age, net of reinsurance, year 7 | 0.10% |
Average historical annual percentage payout of incurred losses by age, net of reinsurance, year 8 | 0.20% |
Average historical annual percentage payout of incurred losses by age, net of reinsurance, year 9 | 0.10% |
Average historical annual percentage payout of incurred losses by age, net of reinsurance, year 10 | 0.00% |
Debentures Payable and Term L73
Debentures Payable and Term Loan From Principal Stockholder - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Jun. 30, 2007 | Apr. 30, 2017 | Dec. 31, 2016 | Jun. 29, 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 and issuance costs | $ 0.9 | ||||
Junior Subordinated Debentures | |||||
Debt Instrument [Line Items] | |||||
Debentures paid fixed rate | 9.277% | ||||
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 | $ 41.2 | ||||
Maturity date | Jul. 30, 2037 | ||||
Junior Subordinated Debentures | Scenario Forecast | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 4.789% | ||||
Junior Subordinated Debentures | Minimum | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 4.366% | ||||
Junior Subordinated Debentures | Maximum | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 4.637% | ||||
Senior Term Loan Facility | Diamond Family Investments L P | Loan Agreement | |||||
Debt Instrument [Line Items] | |||||
Maturity date | Jun. 29, 2025 | ||||
Term loan borrowed | $ 30 | ||||
Term loan outstanding, interest rate | 8.00% | ||||
Net of unamortized loan issuance costs | $ 0.2 |
Income Taxes - Benefit for Inco
Income Taxes - Benefit for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Federal: | |||
Current | $ 20 | $ 228 | |
Deferred | $ (16,024) | (893) | (19,098) |
Gross Federal | (16,024) | (873) | (18,870) |
State: | |||
Current | 328 | 255 | 650 |
Deferred | (152) | (24) | (125) |
Gross State | 176 | 231 | 525 |
Income tax expense (benefit) | $ (15,848) | $ (642) | $ (18,345) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||||||||||
Statutory federal corporate tax rate | 35.00% | ||||||||||
Valuation allowance | $ 1,872 | $ 1,746 | $ 1,872 | $ 1,746 | |||||||
Pre-tax loss | (5,822) | $ (327) | $ (30,607) | $ (8,374) | 458 | $ (4,524) | $ 690 | $ 804 | (45,130) | (2,572) | $ 9,723 |
DTA related to net operating loss carryforwards | 24,208 | 6,859 | $ 24,208 | 6,859 | |||||||
DTA related to operating loss carryforwards expiration, description | do not expire until 2031 through 2036 | ||||||||||
AMT carryforwards | $ 2,015 | $ 2,015 | $ 2,015 | $ 2,015 | |||||||
Change in the total valuation allowance | $ 22,400 |
Income Taxes - Provision (Benef
Income Taxes - Provision (Benefit) for Income Taxes Differs from Amounts Computed by Applying Statutory Federal Corporate Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
(Benefit) provision for income taxes at statutory rate | $ (15,796) | $ (900) | $ 3,403 |
Tax effect of: | |||
Tax-exempt investment income | (48) | (22) | (21) |
Change in the beginning of the period balance of the valuation allowance for deferred tax assets allocated to federal income taxes | (157) | 9 | (22,427) |
Stock-based compensation | 64 | 22 | 137 |
State income taxes, net of federal income tax benefit and state valuation allowance | 60 | 142 | 525 |
Other items | 29 | 107 | 38 |
Income tax expense (benefit) | $ (15,848) | $ (642) | $ (18,345) |
Income Taxes - Summary of Net D
Income Taxes - Summary of Net Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 24,208 | $ 6,859 |
Stock-based compensation | 404 | 421 |
Unearned premiums and loss and loss adjustment expense reserves | 6,752 | 6,797 |
Goodwill and identifiable intangible assets | 2,832 | 4,252 |
Alternative minimum tax (“AMT”) credit carryforwards | 2,015 | 2,015 |
Accrued expenses and other nondeductible items | 1,345 | 1,551 |
Other | 3,619 | 3,528 |
Deferred Tax Assets, Gross, Total | 41,175 | 25,423 |
Deferred tax liabilities: | ||
Deferred acquisition costs | (1,698) | (1,928) |
Identifiable intangible assets | (1,872) | (1,872) |
Net unrealized gain on investments | (73) | (1,244) |
Other | (19) | (332) |
Deferred tax liabilities, gross | (3,662) | (5,376) |
Total net deferred tax asset | 37,513 | 20,047 |
Less: Valuation allowance | (1,872) | (1,746) |
Net deferred tax asset | $ 35,641 | $ 18,301 |
Net (Loss) Income Per Share - C
Net (Loss) Income Per Share - Computation of Basic and Diluted Net (Loss) Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||||||||||
Net (loss) income | $ (3,545) | $ (333) | $ (19,899) | $ (5,505) | $ 287 | $ (3,018) | $ 315 | $ 486 | $ (29,282) | $ (1,930) | $ 28,068 |
Weighted average common basic shares | 41,085 | 41,030 | 40,985 | ||||||||
Effect of dilutive securities | 298 | ||||||||||
Weighted average common dilutive shares | 41,085 | 41,030 | 41,283 | ||||||||
Basic and diluted net (loss) income per share | $ (0.09) | $ (0.01) | $ (0.48) | $ (0.13) | $ (0.07) | $ 0.01 | $ 0.01 | $ (0.71) | $ (0.05) | $ 0.68 |
Net (Loss) Income Per Share - A
Net (Loss) Income Per Share - Additional Information (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Equity option | |||
Earnings Per Share [Line Items] | |||
Exercisable options outstanding that enable to purchase shares | 750 | 825 | 800 |
Shares with dilutive effect and included in computation of diluted income (loss) per share | 127 | 319 | 298 |
Options excluded from computation of diluted income (loss) per share due to anti-dilutive effect | 220 | 260 | 295 |
Restricted stock | |||
Earnings Per Share [Line Items] | |||
Exercisable options outstanding that enable to purchase shares | 169 | 141 | |
Shares with dilutive effect and included in computation of diluted income (loss) per share | 17 | 26 |
Concentrations of Credit Risk -
Concentrations of Credit Risk - Additional Information (Detail) $ in Millions | Dec. 31, 2016USD ($) |
Risks And Uncertainties [Abstract] | |
Cash, cash equivalents, and restricted cash | $ 118.7 |
Litigation - Additional Informa
Litigation - Additional Information (Detail) $ in Millions | 3 Months Ended | 12 Months Ended |
Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($)Case | |
Loss Contingencies [Line Items] | ||
Litigation settlement, amount | $ | $ 3.4 | $ 3.2 |
Settled Litigation | ||
Loss Contingencies [Line Items] | ||
Number of alleged violation cases | Case | 2 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2016Segment | |
Segment Reporting [Abstract] | |
Number of business segments | 2 |
Segment Information - Selected
Segment Information - Selected Financial Data by Business Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 87,806 | $ 102,115 | $ 102,754 | $ 96,948 | $ 88,536 | $ 87,620 | $ 80,631 | $ 75,105 | $ 389,623 | $ 331,892 | $ 263,194 |
(Loss) income before income taxes | (5,822) | $ (327) | $ (30,607) | $ (8,374) | 458 | $ (4,524) | $ 690 | $ 804 | (45,130) | (2,572) | 9,723 |
Total assets | 400,074 | 402,127 | 400,074 | 402,127 | |||||||
Insurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 388,323 | 331,828 | 263,133 | ||||||||
(Loss) income before income taxes | (40,685) | 338 | 12,549 | ||||||||
Total assets | 354,008 | 373,475 | 354,008 | 373,475 | |||||||
Real estate and Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,300 | 64 | 61 | ||||||||
(Loss) income before income taxes | (4,445) | (2,910) | $ (2,826) | ||||||||
Total assets | $ 46,066 | $ 28,652 | $ 46,066 | $ 28,652 |
Statutory Financial Informati84
Statutory Financial Information and Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Insurance [Abstract] | |||
Capital and surplus of the Insurance Companies | $ 58,900,000 | $ 98,800,000 | |
Statutory net (loss) income of the Insurance Companies | $ (52,000,000) | $ (7,300,000) | $ 1,000,000 |
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 | $ 0 |
Related Parties - Additional In
Related Parties - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Apr. 30, 2016 | Dec. 31, 2016 | Jun. 29, 2015 | |
Related Party Transaction [Line Items] | |||
Percentage of indirect ownership by principal stockholder | 15.00% | ||
Senior Term Loan Facility | Diamond Family Investments L P | Loan Agreement | |||
Related Party Transaction [Line Items] | |||
Term loan borrowed | $ 30,000 | ||
Treasury And Custodial Services Agreements | |||
Related Party Transaction [Line Items] | |||
Fees for related party services | $ 112 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) - Titan Acquisition $ in Millions | Jul. 01, 2015USD ($)Stores | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) |
Business Acquisition [Line Items] | |||
Estimate of expected liability | $ 2 | ||
Reduction in goodwill | $ 0.8 | ||
Asset Purchase Agreement | |||
Business Acquisition [Line Items] | |||
Business acquisition, effective date of completion | Jul. 1, 2015 | ||
Payments to acquire businesses, gross | $ 36 | ||
Number of retail stores | Stores | 83 | ||
Business combination, liabilities assumed | $ 2.3 |
Current Liquidity and Statuto87
Current Liquidity and Statutory Capital and Surplus - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Current Liquidity And Statutory Capital And Surplus [Line Items] | ||
Long-term debt obligations | $ 70 | |
Statutory capital and surplus balance | 58.9 | $ 98.8 |
Reduction in statutory capital and surplus | $ 39.9 | |
Ratio of net premiums to statutory capital and surplus | 5.08% | |
Minimum | ||
Current Liquidity And Statutory Capital And Surplus [Line Items] | ||
Ratio of net premiums to statutory capital and surplus | 3.00% | |
Long-term debt matures on 2037 | ||
Current Liquidity And Statutory Capital And Surplus [Line Items] | ||
Long-term debt obligations | $ 40 | |
Long-term debt matures on 2025 | ||
Current Liquidity And Statutory Capital And Surplus [Line Items] | ||
Long-term debt obligations | $ 30 |
Selected Quarterly Financial 88
Selected Quarterly Financial Data (Unaudited) - Selected Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total Revenues | $ 87,806 | $ 102,115 | $ 102,754 | $ 96,948 | $ 88,536 | $ 87,620 | $ 80,631 | $ 75,105 | $ 389,623 | $ 331,892 | $ 263,194 |
(Loss) income before income taxes | (5,822) | (327) | (30,607) | (8,374) | 458 | (4,524) | 690 | 804 | (45,130) | (2,572) | 9,723 |
Net (loss) income | $ (3,545) | $ (333) | $ (19,899) | $ (5,505) | $ 287 | $ (3,018) | $ 315 | $ 486 | $ (29,282) | $ (1,930) | $ 28,068 |
Basic and Diluted Net (Loss) Income Per Share | $ (0.09) | $ (0.01) | $ (0.48) | $ (0.13) | $ (0.07) | $ 0.01 | $ 0.01 | $ (0.71) | $ (0.05) | $ 0.68 |
Selected Quarterly Financial 89
Selected Quarterly Financial Data (Unaudited) - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||
Unfavorable loss development included in income before income taxes | $ 25,800 | $ 309,002 | $ 219,031 | $ 161,302 | |
Litigation settlement, amount | $ 3,400 | $ 3,200 |
Financial Information of Regi90
Financial Information of Registrant (Parent Company) (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
ASSETS | ||||
Deferred tax asset | $ 35,641 | $ 18,301 | ||
Other assets | 6,078 | 6,950 | ||
TOTAL ASSETS | 400,074 | 402,127 | ||
Liabilities: | ||||
Debentures payable | 40,302 | 40,256 | ||
Term loan from principal stockholder | 29,779 | 29,753 | ||
Other liabilities | 10,476 | 15,606 | ||
Stockholders' equity | 72,488 | 103,670 | $ 106,964 | $ 76,932 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 400,074 | 402,127 | ||
Parent Company | ||||
ASSETS | ||||
Investment in subsidiaries, at equity in net assets | 112,479 | 132,430 | ||
Cash and cash equivalents | 3,457 | 8,095 | $ 15,836 | $ 8,578 |
Loan to wholly-owned subsidiary | 23,610 | 30,010 | ||
Deferred tax asset | 25,828 | 8,649 | ||
Other assets | 1,655 | 2,142 | ||
TOTAL ASSETS | 167,029 | 181,326 | ||
Liabilities: | ||||
Debentures payable | 40,302 | 40,256 | ||
Term loan from principal stockholder | 29,779 | 29,753 | ||
Other liabilities | 24,460 | 7,647 | ||
Stockholders' equity | 72,488 | 103,670 | ||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 167,029 | $ 181,326 |
Financial Information of Regi91
Financial Information of Registrant (Parent Company) (Detail 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Operations | |||||||||||
Interest income | $ 4,649 | $ 5,024 | $ 5,123 | ||||||||
Equity in (loss) income of subsidiaries, net of tax | 427 | 396 | 85 | ||||||||
(Loss) income before income taxes | $ (5,822) | $ (327) | $ (30,607) | $ (8,374) | $ 458 | $ (4,524) | $ 690 | $ 804 | (45,130) | (2,572) | 9,723 |
Benefit for income taxes | (15,848) | (642) | (18,345) | ||||||||
Net (loss) income | $ (3,545) | $ (333) | $ (19,899) | $ (5,505) | $ 287 | $ (3,018) | $ 315 | $ 486 | (29,282) | (1,930) | 28,068 |
Parent Company | |||||||||||
Statement of Operations | |||||||||||
Interest income | 2,283 | 1,328 | 61 | ||||||||
Equity in (loss) income of subsidiaries, net of tax | (27,428) | (441) | 23,804 | ||||||||
Expenses | (4,508) | (4,238) | (2,887) | ||||||||
(Loss) income before income taxes | (29,653) | (3,351) | 20,978 | ||||||||
Benefit for income taxes | (371) | (1,421) | (7,090) | ||||||||
Net (loss) income | $ (29,282) | $ (1,930) | $ 28,068 |
Financial Information of Regi92
Financial Information of Registrant (Parent Company) (Detail 2) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||||||||||
Net (loss) income | $ (3,545,000) | $ (333,000) | $ (19,899,000) | $ (5,505,000) | $ 287,000 | $ (3,018,000) | $ 315,000 | $ 486,000 | $ (29,282,000) | $ (1,930,000) | $ 28,068,000 |
Equity in (income) loss of subsidiaries, net of tax | (427,000) | (396,000) | (85,000) | ||||||||
Stock-based compensation | 207,000 | 144,000 | 185,000 | ||||||||
Deferred income taxes | (16,176,000) | (917,000) | (19,223,000) | ||||||||
Other | 108,000 | 261,000 | 224,000 | ||||||||
Net cash (used in) provided by operating activities | (13,628,000) | 29,307,000 | 27,009,000 | ||||||||
Cash flows from investing activities: | |||||||||||
Dividends from subsidiary | 0 | ||||||||||
Net cash provided by (used in) investing activities | 16,654,000 | (46,240,000) | 3,313,000 | ||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from term loan from principal stockholder | 30,000,000 | ||||||||||
Net proceeds from issuance of common stock | 68,000 | 91,000 | 74,000 | ||||||||
Net cash provided by financing activities | 68,000 | 30,091,000 | 74,000 | ||||||||
Parent Company | |||||||||||
Cash flows from operating activities: | |||||||||||
Net (loss) income | (29,282,000) | (1,930,000) | 28,068,000 | ||||||||
Equity in (income) loss of subsidiaries, net of tax | 27,428,000 | 441,000 | (23,804,000) | ||||||||
Stock-based compensation | 207,000 | 144,000 | 185,000 | ||||||||
Deferred income taxes | (17,179,000) | (684,000) | (7,871,000) | ||||||||
Other | 95,000 | (203,000) | 28,000 | ||||||||
Change in assets and liabilities | 17,300,000 | 2,385,000 | 3,197,000 | ||||||||
Net cash (used in) provided by operating activities | (1,431,000) | 153,000 | (197,000) | ||||||||
Cash flows from investing activities: | |||||||||||
Dividends from subsidiary | 1,225,000 | 2,025,000 | 7,425,000 | ||||||||
Loan to wholly-owned subsidiary | 6,400,000 | (30,010,000) | |||||||||
Investments in subsidiaries | (10,900,000) | (10,000,000) | (44,000) | ||||||||
Net cash provided by (used in) investing activities | (3,275,000) | (37,985,000) | 7,381,000 | ||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from term loan from principal stockholder | 30,000,000 | ||||||||||
Net proceeds from issuance of common stock | 68,000 | 91,000 | 74,000 | ||||||||
Net cash provided by financing activities | 68,000 | 30,091,000 | 74,000 | ||||||||
Net change in cash and cash equivalents | (4,638,000) | (7,741,000) | 7,258,000 | ||||||||
Cash and cash equivalents, beginning of period | $ 8,095,000 | $ 15,836,000 | 8,095,000 | 15,836,000 | 8,578,000 | ||||||
Cash and cash equivalents, end of period | $ 3,457,000 | $ 8,095,000 | $ 3,457,000 | $ 8,095,000 | $ 15,836,000 |