Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 06, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
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 | 41,234,729 | ||
Entity Public Float | $ 17,613,488 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Investments, available-for-sale at fair value (amortized cost of $129,742 and $117,902, respectively) | $ 129,945 | $ 117,212 |
Cash, cash equivalents, and restricted cash | 115,477 | 118,681 |
Premiums, fees, and commissions receivable, net of allowance of $275 and $279 | 69,624 | 66,393 |
Deferred tax assets, net | 20,549 | 35,641 |
Other investments | 9,750 | 9,994 |
Other assets | 6,438 | 6,078 |
Property and equipment, net | 2,888 | 4,213 |
Deferred acquisition costs | 4,947 | 4,852 |
Goodwill | 29,384 | 29,384 |
Identifiable intangible assets, net | 6,857 | 7,626 |
TOTAL ASSETS | 395,859 | 400,074 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Loss and loss adjustment expense reserves | 159,130 | 161,079 |
Unearned premiums and fees | 82,620 | 78,861 |
Debentures payable | 40,348 | 40,302 |
Term loan from principal stockholder | 29,805 | 29,779 |
Accrued expenses | 5,975 | 7,089 |
Other liabilities | 13,224 | 10,476 |
Total liabilities | 331,102 | 327,586 |
Stockholders’ equity: | ||
Preferred stock, $.01 par value, 10,000 shares authorized | ||
Common stock, $.01 par value, 75,000 shares authorized; 41,235 and 41,160 issued and outstanding, respectively | 413 | 412 |
Additional paid-in capital | 458,124 | 457,750 |
Accumulated other comprehensive income, net of tax of $(990) and $(1,110), respectively | 1,900 | 1,316 |
Accumulated deficit | (395,680) | (386,990) |
Total stockholders’ equity | 64,757 | 72,488 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 395,859 | $ 400,074 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | ||
Amortized cost of investments | $ 129,742 | $ 117,902 |
Allowance for premiums, fees and Commission receivable | $ 275 | $ 279 |
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 | 41,235,000 | 41,235,000 |
Common stock, shares outstanding | 41,160,000 | 41,160,000 |
Accumulated Other Comprehensive Income, tax | $ (990) | $ (1,110) |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues: | |||
Premiums earned | $ 278,221,000 | $ 303,328,000 | $ 266,987,000 |
Commission and fee income | 64,581,000 | 75,596,000 | 59,892,000 |
Investment income | 4,719,000 | 4,649,000 | 5,024,000 |
Gain on sale of foreclosed real estate | 1,237,000 | ||
Net realized (losses) gains on investments, available-for-sale (includes $4,745 of accumulated other comprehensive loss reclassification for net unrealized gains in 2016) | (3,000) | 4,813,000 | (11,000) |
Total revenues | 347,518,000 | 389,623,000 | 331,892,000 |
Costs and expenses: | |||
Losses and loss adjustment expenses | 220,785,000 | 309,002,000 | 219,031,000 |
Insurance operating expenses | 111,323,000 | 116,510,000 | 105,254,000 |
Other operating expenses | 1,133,000 | 1,219,000 | 1,126,000 |
Litigation settlement | 3,677,000 | ||
Stock-based compensation | 299,000 | 207,000 | 144,000 |
Depreciation | 2,068,000 | 2,540,000 | 1,751,000 |
Amortization of identifiable intangible assets | 789,000 | 956,000 | 514,000 |
Interest expense | 4,535,000 | 4,319,000 | 2,967,000 |
Total costs and expenses | 340,932,000 | 434,753,000 | 334,464,000 |
Income (loss) before income taxes | 6,586,000 | (45,130,000) | (2,572,000) |
Provision (benefit) for income taxes | 15,190,000 | (15,848,000) | (642,000) |
Net loss | $ (8,604,000) | $ (29,282,000) | $ (1,930,000) |
Net loss per share: | |||
Basic | $ (0.21) | $ (0.71) | $ (0.05) |
Diluted | $ (0.21) | $ (0.71) | $ (0.05) |
Number of shares used to calculate net loss per share: | |||
Basic | 41,286 | 41,085 | 41,030 |
Diluted | 41,286 | 41,085 | 41,030 |
Reconciliation of net loss to other comprehensive loss: | |||
Net loss | $ (8,604,000) | $ (29,282,000) | $ (1,930,000) |
Unrealized change in investments: | |||
Unrealized change in investments arising during the period, net of tax of $204, $489 and $(861), respectively | 498,000 | 909,000 | (1,599,000) |
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 | (8,106,000) | (31,457,000) | (3,529,000) |
Detail of net realized (losses) gains on investments, available-for-sale: | |||
Net realized (losses) gains on sales and redemptions | (3,000) | 4,960,000 | (11,000) |
Other-than-temporary impairment charges | 0 | (147,000) | 0 |
Net realized (losses) gains on investments, available-for-sale | $ (3,000) | $ 4,813,000 | $ (11,000) |
CONSOLIDATED STATEMENTS OF OPE5
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE 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, 2014 | $ 106,964 | $ 410 | $ 457,242 | $ 5,090 | $ (355,778) |
Beginning balance, Shares at Dec. 31, 2014 | 41,016 | ||||
Net loss | (1,930) | (1,930) | |||
Net unrealized change on investments (net of tax (benefit) provision of $(861), (1,172) & $204 for year 2015, 2016 & 2017 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 | ||||
Net loss | (29,282) | (29,282) | |||
Net unrealized change on investments (net of tax (benefit) provision of $(861), (1,172) & $204 for year 2015, 2016 & 2017 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 | |||
Net loss | $ (8,604) | (8,604) | |||
Net unrealized change on investments (net of tax (benefit) provision of $(861), (1,172) & $204 for year 2015, 2016 & 2017 respectively) | 498 | 498 | |||
Stock-based compensation, Value | 299 | 299 | |||
Stock-based compensation, Shares | 7 | ||||
Issuance of shares under Employee Stock Purchase Plan, Value | 76 | $ 1 | 75 | ||
Issuance of shares under Employee Stock Purchase Plan, Shares | 68 | ||||
Reclassification of deferred tax resulting from change in corporate tax rate | 86 | (86) | |||
Ending balance at Dec. 31, 2017 | $ 64,757 | $ 413 | $ 458,124 | $ 1,900 | $ (395,680) |
Ending balance, Shares at Dec. 31, 2017 | 41,160 | 41,235 |
CONSOLIDATED STATEMENTS OF STO7
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Tax provision (benefit) on net unrealized change on investments | $ 204 | $ 489 | $ (861) |
Accumulated Other Comprehensive Income (Loss) | |||
Tax provision (benefit) on net unrealized change on investments | $ 204 | $ (1,172) | $ (861) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net loss | $ (8,604,000) | $ (29,282,000) | $ (1,930,000) |
Adjustments to reconcile net loss to cash provided (used in) by operating activities: | |||
Depreciation | 2,068,000 | 2,540,000 | 1,751,000 |
Amortization of identifiable intangible assets | 789,000 | 956,000 | 514,000 |
Stock-based compensation | 299,000 | 207,000 | 144,000 |
Deferred income taxes | 14,883,000 | (16,176,000) | (917,000) |
Other-than-temporary impairment on investments, available-for-sale | 0 | 147,000 | 0 |
Net realized losses (gains) on sales and redemptions of investments | 3,000 | (4,960,000) | 11,000 |
Investment income from other investments | (440,000) | (427,000) | (396,000) |
Gain on sale of foreclosed real estate, net | (1,237,000) | ||
Other | 155,000 | 108,000 | 261,000 |
Change in: | |||
Premiums, fees, and commission receivable | (3,227,000) | 3,663,000 | (13,457,000) |
Loss and loss adjustment expense reserves | (1,949,000) | 39,008,000 | 25,458,000 |
Unearned premiums and fees | 3,759,000 | (4,565,000) | 15,484,000 |
Other liabilities | 2,748,000 | (5,130,000) | 1,500,000 |
Other | (1,483,000) | 1,520,000 | 884,000 |
Net cash provided by (used in) operating activities | 9,001,000 | (13,628,000) | 29,307,000 |
Cash flows from investing activities: | |||
Purchases of investments, available-for-sale | (26,770,000) | (62,982,000) | (25,383,000) |
Maturities and redemptions of investments, available-for-sale | 14,774,000 | 11,028,000 | 15,988,000 |
Sales of fixed maturities, available-for-sale | 66,880,000 | ||
Purchases of other investments | (133,000) | (957,000) | (2,190,000) |
Distributions from other investments | 631,000 | 3,270,000 | 2,088,000 |
Capital expenditures | (763,000) | (2,263,000) | (2,768,000) |
Acquisition of identifiable intangible assets | (20,000) | (91,000) | (205,000) |
Proceeds from sale of foreclosed real estate, net | 1,769,000 | ||
Business acquired through asset purchase | (33,770,000) | ||
Net cash (used in) provided by investing activities | (12,281,000) | 16,654,000 | (46,240,000) |
Cash flows from financing activities: | |||
Proceeds from term loan from principal stockholder | 30,000,000 | ||
Net proceeds from issuance of common stock | 76,000 | 68,000 | 91,000 |
Net cash provided by financing activities | 76,000 | 68,000 | 30,091,000 |
Net change in cash, cash equivalents, and restricted cash | (3,204,000) | 3,094,000 | 13,158,000 |
Cash, cash equivalents, and restricted cash, beginning of period | 118,681,000 | 115,587,000 | 102,429,000 |
Cash, cash equivalents, and restricted cash, end of period | $ 115,477,000 | $ 118,681,000 | $ 115,587,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
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 2017, our insurance operations generated revenue from selling non-standard personal automobile insurance products and related products in 16 states and conducted our servicing and underwriting operations in 13 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. 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, 2017 and December 31, 2016, the Company had restricted cash equivalents of $18.5 million and $18.6 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. 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. 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 are included within other assets in the accompanying consolidated balance sheets at both December 31, 2017 and 2016. 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, 2017, 2016 and 2015 was $16.9 million, $18.9 million and $16.3 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, 2017 and 2016, identifiable intangible assets were $6.9 million and $7.6 million, respectively, stated net of accumulated amortization expense of $2.3 million and $1.5 million, respectively. The remaining amortization expense over the five succeeding fiscal years is $0.6 million, $0.5 million, $0.4 million, $0.3 million, and $0.2 million. 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. 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 a review of the relevant factors, the Company prepared a qualitative analysis for its annual impairment testing as of October 1, 2017, which 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,” Approximately 18% of the Company’s total revenues are subject to the guidance in ASU No. 2014-09. Historically, approximately 40% of these revenues are in the form of commissions paid by third party insurance carriers which are earned upon the effective date of bound coverage, less an estimated allowance for return commissions based upon historical experience, since no significant performance obligation remains in these arrangements after coverage is bound and the control of the underlying insurance policy is transferred to the customer. Approximately 30% of these revenues are in the form of commissions paid by a third-party entity on the sales of ancillary insurance products that are earned on a pro-rata basis over the life of the underlying contracts, since the Company has a contractual performance obligation for these contracts. Approximately 30% of these revenues are derived from various fees related to insurance contracts that are recognized into income as the related services are performed and costs are incurred. Based on our evaluation of this guidance, including contract reviews, the Company did not determine any impact to our consolidated financial statements in applying this new guidance as of January 1, 2018. 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 March 2016, the FASB issued ASU No. 2016-09, “ Improvements to Employee Share-Based Payment Accounting 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” In April 2017, the FASB issued ASU No. 2017-08, “Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities” In May 2017, the FASB issued ASU No. 2017-09, “Compensation-Stock Compensation (Topic 718), Scope of Modification Accounting” In February 2018, the FASB issued ASU No. 2018-02 “ Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income Supplemental Cash Flow Information During the years ended December 31, 2017, 2016 and 2015, the Company paid $0.4 million, $0.3 million and $0.7 million, respectively, in income taxes and $4.4 million, $4.2 million and $1.7 million, respectively, in interest. Basic and Diluted Net Loss Per Share Basic net loss per share is computed by dividing net loss available to common shareholders by the weighted average number of common shares, while diluted net loss per share is computed by dividing net loss 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, 2017 | |
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, 2017 December 31, 2016 Carrying Fair Carrying Fair Value Value Value Value Assets: Investments, available-for-sale $ 129,945 $ 129,945 $ 117,212 $ 117,212 Other investments 9,750 9,750 9,994 9,994 Liabilities: Debentures payable 40,348 21,248 40,302 11,488 Term loan from principal stockholder 29,805 26,691 29,779 15,000 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 shareholder 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, fees, and commissions receivable, approximate fair value due to the short-term nature of the instruments and are not required to be disclosed. Therefore, the aggregate of the fair values presented in the preceding table does not purport to represent the Company’s underlying value. The 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, 2017 Total (Level 1) (Level 2) (Level 3) (NAV) Fixed maturities, available-for-sale: U.S. government and agencies $ 19,347 $ 19,347 $ — $ — $ — Political subdivisions 4,083 — 4,083 — — Revenue and assessment 5,318 — 5,318 — — Corporate bonds 42,975 — 42,975 — — Collateralized mortgage obligations: Agency backed 39,104 — 39,104 — — Non-agency backed – residential 2,670 — 2,670 — — Non-agency backed – commercial 405 — 405 — — Total fixed maturities, available-for-sale 113,902 19,347 94,555 — — Preferred stock, available-for-sale 3,104 3,104 — — — Mutual funds, available-for-sale 12,939 12,939 — — — Total investments, available-for-sale 129,945 35,390 94,555 — — Other investments 9,750 — — 4,750 5,000 Cash, cash equivalents, and restricted cash 115,477 115,477 — — — Total $ 255,172 $ 150,867 $ 94,555 $ 4,750 $ 5,000 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 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 at December 31, 2017 has been determined using a recent observable market transaction and at December 31, 2016 using a model-driven valuation that did not have observable market data. There were no transfers between Level 1 and Level 2 for years ended December 31, 2017 and 2016. 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, 2017 (in thousands). Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Common Stock at Fair Value Balance at December 31, 2016 $ 4,858 Gains included in net loss — Losses included in comprehensive loss (186 ) Investments and capital calls 78 Distributions received — Transfers into and out of Level 3 — Balance at December 31, 2017 $ 4,750 |
Investments
Investments | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 Cost Gains Losses Value U.S. government and agencies $ 19,642 $ 70 $ (365 ) $ 19,347 Political subdivisions 4,111 — (28 ) 4,083 Revenue and assessment 5,145 178 (5 ) 5,318 Corporate bonds 44,070 50 (1,145 ) 42,975 Collateralized mortgage obligations: Agency backed 39,823 61 (780 ) 39,104 Non-agency backed – residential 2,059 617 (6 ) 2,670 Non-agency backed – commercial 54 351 — 405 Total fixed maturities, available-for-sale 114,904 1,327 (2,329 ) 113,902 Preferred stock, available-for-sale 3,025 193 (114 ) 3,104 Mutual funds, available-for-sale 11,813 1,126 — 12,939 $ 129,742 $ 2,646 $ (2,443 ) $ 129,945 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 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, 2017 Gains Losses Losses Securities One year or less $ 2,219 $ — $ — $ 2,219 After one through five years 4,798 26,818 — 31,616 After five through ten years 1,750 28,372 — 30,122 After ten years 4,715 3,052 — 7,767 No single maturity date 12,991 29,187 — 42,178 $ 26,473 $ 87,429 $ — $ 113,902 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, 2017 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Gross Losses U.S. government and agencies $ 7,746 $ (72 ) $ 10,020 $ (293 ) $ (365 ) Political subdivisions 4,083 (28 ) — — (28 ) Revenue and assessment 1,067 (5 ) — — (5 ) Corporate bonds 10,730 (123 ) 25,235 (1,022 ) (1,145 ) Collateralized mortgage obligations: Agency backed 9,085 (95 ) 19,730 (685 ) (780 ) Non-agency backed – residential 265 (1 ) 106 (5 ) (6 ) Non-agency backed – commercial — — — — — Total fixed maturities, available-for-sale 32,976 (324 ) 55,091 (2,005 ) (2,329 ) Preferred stock, available-for-sale — — 1,411 (114 ) (114 ) Mutual funds, available-for-sale — — — — — $ 32,976 $ (324 ) $ 56,502 $ (2,119 ) $ (2,443 ) 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 ) 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, 2017 12 26 31 December 31, 2016 37 — 40 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, 2017. Gross unrealized losses are further segregated by the percentage of amortized cost (in thousands, except number of securities). There were no fixed maturity securities in a continuous unrealized loss position for greater than 12 months as of December 31, 2016. Number Gross Gross Unrealized Losses of Fair Unrealized at December 31, 2017: Securities Value Losses Less than or equal to 10% 26 $ 56,502 (2,119 ) Greater than 10% — — — 26 $ 56,502 $ (2,119 ) 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, 2017: Losses Losses than 5% 10% than 10% Less than or equal to: Three months $ 10,682 $ (55 ) $ (55 ) $ — $ — Six months 22,294 (269 ) (269 ) — — Nine months — — — — — Twelve months — — — — — Greater than twelve months 56,502 (2,119 ) (1,648 ) (471 ) — Total $ 89,478 $ (2,443 ) $ (1,972 ) $ (471 ) $ — 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 ) $ — Other Investments Other investments consist of the common stock of a REIT and limited partnership interests in three funds that invest in (i) commercial real estate and secured commercial real estate loans acquired from financial intuitions, (ii) undervalued international publicly-traded equities and (iii) a pre-identified pool of select buyout private equity funds. These investments have redemption and transfer restrictions. The Company withdrew from another limited partnership investment and received the final withdrawal installment in July 2016. The Company does not intend to sell any of 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, 2017, the Company had unfunded commitments of $2.5 million with two of these investments. Restrictions At December 31, 2017, fixed maturities and cash equivalents with a fair value and amortized cost of $6.2 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 $18.3 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, 2017 2016 2015 Fixed maturities, available-for-sale $ 2,996 $ 3,558 $ 4,220 Mutual funds, available-for-sale 680 704 666 Other investments 440 427 396 Cash and cash equivalents 1,083 448 236 Investment expenses (480 ) (488 ) (494 ) $ 4,719 $ 4,649 $ 5,024 The components of net realized (losses) gains on investments, available-for-sale follow (in thousands). Year Ended December 31, 2017 2016 2015 Gains $ — $ 4,982 $ 15 Losses (3 ) (22 ) (26 ) Other than temporary impairment — (147 ) — $ (3 ) $ 4,813 $ (11 ) 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. The amounts of non-credit OTTI for securities still owned was $1.0 million at both December 31, 2017 and 2016. 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 and (ii) the amount related to all other factors, which is recorded in other comprehensive loss. The credit-related portion of an OTTI is measured by comparing a security’s amortized cost to the present value of its current expected cash flows discounted at its effective yield prior to the impairment charge. The determination of whether unrealized losses are “other-than-temporary” requires judgment based on subjective as well as objective factors. The Company routinely monitors its investment portfolio for changes in fair value that might indicate potential impairments and performs detailed reviews on such securities. Changes in fair value are evaluated to determine the extent to which such changes are attributable to (i) fundamental factors specific to the issuer or (ii) market-related factors such as interest rates or sector declines. Securities with declines attributable to issuer-specific fundamentals are reviewed to identify all available evidence to estimate the potential for impairment. Resources used include historical financial data included in filings with the United States Securities and Exchange Commission (“SEC”) for corporate bonds and performance data regarding the underlying loans for CMOs. Securities with declines attributable solely to market or sector declines where the Company does not intend to sell the security and it is more likely than not that the Company will not be required to sell the security before the full recovery of its amortized cost basis are not deemed to be other-than-temporarily impaired. The issuer-specific factors considered in reaching the conclusion that securities with declines are not other-than-temporary include (i) the extent and duration of the decline in fair value, including the duration of any significant decline in value, (ii) whether the security is current as to payments of principal and interest, (iii) a valuation of any underlying collateral, (iv) current and future conditions and trends for both the business and its industry, (v) changes in cash flow assumptions for CMOs and (vi) rating agency actions. Based on these factors, the Company makes a determination as to the probability of recovering principal and interest on the security. The Company did not recognize any OTTI charges in net loss for the years ended December 31, 2017 and 2015. 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 following is a progression of the credit-related portion of OTTI on investments owned at December 31, 2017, 2016, and 2015 (in thousands). Year Ended December 31, 2017 2016 2015 Beginning balance $ (2,184 ) $ (2,632 ) $ (2,632 ) Additional credit impairments on: Previously impaired securities — — — Securities without previous impairments — (147 ) — — (147 ) — Reductions for securities deemed worthless and realized 314 595 — $ (1,870 ) $ (2,184 ) $ (2,632 ) The Company believes that the remaining securities having unrealized losses at |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [Abstract] | |
Reinsurance | 4. Reinsurance Total premiums written and earned are summarized as follows (in thousands). Year Ended December 31, 2017 2016 2015 Written Earned Written Earned Written Earned Direct $ 254,530 $ 248,803 $ 262,110 $ 265,256 $ 247,498 $ 233,652 Assumed 28,072 29,843 37,381 38,522 35,500 33,707 Ceded (425 ) (425 ) (450 ) (450 ) (372 ) (372 ) Total $ 282,177 $ 278,221 $ 299,041 $ 303,328 $ 282,626 $ 266,987 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 10%, 13%, and 13% for each of the years ended December 31, 2017, 2016 and 2015, 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, 2017, the Insurance Companies had unsecured aggregate reinsurance receivables of $0.9 million. Ceded premiums earned and reinsurance recoveries on losses and loss adjustment expenses were as follows (in thousands): Year Ended December 31, 2017 2016 2015 Ceded premiums earned $ 425 $ 450 $ 372 Reinsurance recoveries on losses and loss adjustment expenses $ 208 $ 589 $ 239 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2017 | |
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. All 120,000 options outstanding expire on March 17, 2018 having a $3.04 exercise price. 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, 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 Forfeited (850 ) $1.45-$3.04 $ 1.64 Options outstanding at December 31, 2017 120 $ 3.04 $ 3.04 $ - Options exercisable/vested at December 31, 2017 120 $ 3.04 $ - The following table summarizes Restricted Stock Units that the Compensation Committee of the Board of Directors of the Company awarded to executive officers (in thousands, except per share data). 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 and is recorded on a straight-line basis over the vesting period. Number of Restricted Stock Units Weighted Average Grant-Date Fair Value per Share Non-vested at January 1, 2015 — $ — Granted 141 2.44 Vested — — Forfeited — — Non-vested at December 31, 2015 141 2.44 Granted 146 2.30 Vested (39 ) 2.40 Forfeited (79 ) 2.37 Non-vested at December 31, 2016 169 2.36 Granted 586 1.21 Vested — — Forfeited — — Non-vested at December 31, 2017 755 $ 1.46 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’s Board of Directors may at any time amend the ESPP in any respect, including termination of the ESPP, without notice to the employees. The Company has reserved 600,000 shares of common stock for issuance under the ESPP. Employees purchased approximately 68,000, 64,000, and 37,000 shares during the years ended December 31, 2017, 2016 and 2015, respectively. Compensation expense attributable to subscriptions to purchase shares under the ESPP was $20 thousand, $19 thousand and $12 thousand for the years ended December 31, 2017, 2016 and 2015, respectively. At December 31, 2017, 118,456 shares remain available for issuance under the ESPP. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017, 2016 and 2015 were $1.3 million, $1.1 million and $1.0 million, respectively, and are included within insurance operating expenses in the accompanying consolidated statements of operations and comprehensive loss. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 2016 Furniture and equipment $ 16,208 $ 15,583 Leasehold improvements 3,877 3,844 Aircraft 190 190 20,275 19,617 Less: Accumulated depreciation (17,387 ) (15,404 ) Property and equipment, net $ 2,888 $ 4,213 Depreciation expense related to property and equipment was |
Lease Commitments
Lease Commitments | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017, 2016 and 2015 was $9.9 million, $11.3 million and $11.2 million, respectively, and is included within insurance operating expenses in the accompanying consolidated statements of operations and comprehensive loss. Future minimum lease payments primarily under these agreements follow (in thousands). For the Year Ended December 31, Amount 2018 $ 6,363 2019 4,101 2020 2,383 2021 1,429 2022 756 Thereafter 2,133 Total $ 17,165 |
Losses and Loss Adjustment Expe
Losses and Loss Adjustment Expenses Incurred and Paid | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [Abstract] | |
Losses and Loss Adjustment Expenses Incurred and Paid | 9. Losses and Loss Adjustment Expenses Incurred and Paid The Company underwrites primarily a single product in the form of a non-standard personal automobile policy. Although this product can vary in terms of its coverages (liability and physical damage), disaggregation by these coverages is not considered meaningful due to the relative immateriality of the physical damage component which is only approximately 5% of the ending liability for unpaid losses and LAE. Additionally, the amount of renters coverage sold as an optional product is likewise immaterial. Information regarding the reserve for unpaid losses and loss adjustment expenses (“LAE”) is as follows (in thousands). Year Ended December 31, 2017 2016 2015 Liability for unpaid losses and LAE at beginning of year, gross $ 161,079 $ 122,071 $ 96,613 Reinsurance balances receivable (769 ) (464 ) (362 ) Liability for unpaid losses and LAE at beginning of year, net 160,310 121,607 96,251 Add: Provision for losses and LAE: Current year 223,056 278,366 218,186 Prior year (2,271 ) 30,636 845 Net losses and LAE incurred 220,785 309,002 219,031 Less: Losses and LAE paid: Current year 120,708 163,792 129,216 Prior year 102,097 106,507 64,459 Net losses and LAE paid 222,805 270,299 193,675 Liability for unpaid losses and LAE at end of year, net 158,290 160,310 121,607 Reinsurance balances receivable 840 769 464 Liability for unpaid losses and LAE at end of year, gross $ 159,130 $ 161,079 $ 122,071 The favorable change in the estimate of unpaid losses and loss adjustment expenses of $2.3 million for the year ended December 31, 2017 was the net result of favorable LAE development related to bodily injury claims over the 2014-2016 accident years, offset by unfavorable development on losses related to bodily injury severity over the 2014-2016 accident years. 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 information about incurred and paid claims development for the 2008 to 2016 years, and the average annual percentage payout of incurred claims by age as of December 31, 2017, 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 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) 2008 187,583 174,921 174,312 175,044 175,849 176,468 176,947 177,190 177,226 $ 177,892 2009 146,584 140,539 140,501 141,936 142,819 142,772 142,546 142,705 142,703 2010 135,458 133,283 134,470 134,446 134,191 134,144 133,983 134,000 2011 126,384 126,886 126,272 126,373 125,810 125,670 125,703 2012 144,231 140,111 140,249 140,673 141,375 141,100 2013 145,878 140,775 142,053 144,076 144,450 2014 166,179 165,991 171,827 171,372 2015 218,186 240,419 240,388 2016 278,366 275,768 2017 223,056 Total $ 1,776,432 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 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 year (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) 2008 122,207 160,366 169,373 172,768 174,688 175,700 176,331 176,907 177,154 $ 177,159 2009 92,372 127,355 135,701 139,436 141,399 142,294 142,441 142,654 142,700 2010 87,319 120,301 128,843 131,878 132,989 133,648 133,896 133,981 2011 82,945 113,199 120,790 123,888 125,012 125,383 125,541 2012 89,159 123,869 133,397 137,968 139,781 140,554 2013 88,726 124,021 134,931 141,444 143,481 2014 98,437 144,943 162,702 167,973 2015 129,216 208,533 227,388 2016 163,792 238,657 2017 120,708 Total $ 1,618,142 Total outstanding reserves for unpaid losses and LAE, net of reinsurance $ 158,290 As of December 31, 2017, 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 2008 $ 177,892 $ — 100,189 2009 142,703 — 78,607 2010 134,000 17 71,138 2011 125,703 138 66,310 2012 141,100 366 73,546 2013 144,450 741 74,057 2014 171,372 2,449 85,334 2015 240,388 9,183 109,847 2016 275,768 27,195 117,923 2017 223,056 63,131 85,508 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. (Unaudited) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Non-standard auto 57.4 % 28.9 % 8.2 % 3.4 % 1.3 % 0.5 % 0.2 % 0.1 % 0.0 % 0.0 % |
Debentures Payable and Term Loa
Debentures Payable and Term Loan From Principal Stockholder | 12 Months Ended |
Dec. 31, 2017 | |
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 4.637% to 5.128% during 2017. In January 2018, the interest rate reset to 5.517% through April 2018. 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, 2017, 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, 2017 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, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes The Tax Cuts and Jobs Act (the “Act”) was enacted on December 22, 2017. The Act makes broad changes to U.S. federal tax law including but not limited to a reduction in the federal corporate tax rate from 35% to 21%, and temporary differences related to the computation of tax loss and loss adjustment expense reserves and limitations on the interest expense deduction. The SEC staff issued Staff Accounting Bulletin No. 118 ("SAB 118") to address situations where a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting under ASC Topic 740 for certain income tax effects of the Act for the reporting period of enactment. SAB 118 allows the Company to provide a provisional estimate of the impacts of the Act during a measurement period similar to the measurement period used when accounting for business combinations. Adjustments to provisional estimates and additional impacts from Tax Reform must be recorded as they are identified during the measurement period as provided for in SAB 118. At December 31, 2017, we have made an estimate of the effects on our existing deferred tax balances and recognized a provisional amount of $12.5 million which is included as a component of the provision for income taxes. We remeasured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is 21% for federal purposes. However, we are still analyzing certain aspects of the Act and refining our calculations which could potentially affect the measurement of these balances as permitted under SAB 118. The benefit for income taxes consisted of the following (in thousands). Year Ended December 31, 2017 2016 2015 Federal: Current $ 123 $ — $ 20 Deferred 14,760 (16,024 ) (893 ) 14,883 (16,024 ) (873 ) State: Current 184 328 255 Deferred 123 (152 ) (24 ) 307 176 231 $ 15,190 $ (15,848 ) $ (642 ) The provision (benefit) for income taxes differs from the amounts computed by applying the statutory federal corporate tax rate of 21% to (loss) income before income taxes as a result of the following (in thousands). Year Ended December 31, 2017 2016 2015 Provision (benefit) for income taxes at statutory rate $ 2,305 $ (15,796 ) $ (900 ) Tax effect of: Tax-exempt investment income (66 ) (48 ) (22 ) Change in the beginning of the period balance of the valuation allowance for deferred tax assets allocated to federal income taxes 1 (157 ) 9 Stock-based compensation 229 64 22 State income taxes, net of federal income tax benefit and state valuation allowance 243 60 142 Effect of federal tax law change 12,509 - - Other items (31 ) 29 107 $ 15,190 $ (15,848 ) $ (642 ) 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, 2017 2016 Deferred tax assets: Net operating loss carryforwards $ 13,380 $ 24,208 Stock-based compensation 164 404 Unearned premiums and loss and loss adjustment expense reserves 5,408 6,752 Goodwill and identifiable intangible assets 853 2,832 Alternative minimum tax (“AMT”) credit carryforwards 1,991 2,015 Accrued expenses and other nondeductible items 1,292 1,345 Other 2,434 3,619 25,522 41,175 Deferred tax liabilities: Deferred acquisition costs (1,039 ) (1,698 ) Identifiable intangible assets (1,200 ) (1,872 ) Loss reserve discounting (1,206 ) — Other (191 ) (92 ) (3,636 ) (3,662 ) Total net deferred tax asset 21,886 37,513 Less: Valuation allowance (1,337 ) (1,872 ) Net deferred tax asset $ 20,549 $ 35,641 The Company had a valuation allowance of $1.3 and $1.9 million at December 31, 2017 and 2016, 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 incurred a pre-tax loss of $45.1 million in 2016, which is a source of negative evidence, we placed greater weight on the Company’s outlook for future taxable income over the allowable time period for realization of the DTA, the Company has 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, 2017, $13.4 million of the DTA related to net operating loss carryforwards do not expire until 2032 through 2036 and $2.0 million in AMT (“Alternative Minimum Tax”) credit carryforwards are fully refundable by 2021 under the new tax legislation if not utilized. 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. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 12. Net Loss Per Share Basic EPS are computed using the weighted average number of shares outstanding. Diluted EPS are computed using the weighted average number of shares outstanding adjusted for the incremental shares attributed to outstanding securities with a right to purchase or convert into common stock. The following table sets forth the computation of basic and diluted net (loss) income per share (in thousands, except per share data). Year Ended December 31, 2017 2016 2015 Net loss $ (8,604 ) $ (29,282 ) $ (1,930 ) Weighted average common basic shares 41,286 41,085 41,030 Basic and diluted net loss per share $ (0.21 ) $ (0.71 ) $ (0.05 ) For the year ended December 31, 2017, the computation of diluted net loss per share did not include restricted stock units convertible into 755 thousand shares, a dilutive effect of 103 thousand shares, since their inclusion would have been anti-dilutive. Options to purchase 120 thousand shares for the year ended December 31, 2017 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, 2016, the computation of diluted net loss 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 loss 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. |
Concentrations of Credit Risk
Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2017 | |
Risks And Uncertainties [Abstract] | |
Concentrations of Credit Risk | 13. Concentrations of Credit Risk At December 31, 2017, 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 $115.5 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, 2017 | |
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 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
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 following table presents selected financial data by business segment (in thousands). Year Ended December 31, 2017 2016 2015 Revenues: Insurance $ 347,448 $ 388,323 $ 331,828 Real estate and corporate 70 1,300 64 Consolidated total $ 347,518 $ 389,623 $ 331,892 Income (loss) before income taxes: Insurance $ 12,483 $ (40,685 ) $ 338 Real estate and corporate (5,897 ) (4,445 ) (2,910 ) Consolidated total $ 6,586 $ (45,130 ) $ (2,572 ) December 31, 2017 2016 Total assets: Insurance $ 361,869 $ 354,008 Real estate and corporate 33,990 46,066 Consolidated total $ 395,859 $ 400,074 |
Statutory Financial Information
Statutory Financial Information and Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 and 2016, on a consolidated statutory basis, the capital and surplus of the Insurance Companies was $66.1 million and $58.9 million, respectively. For the years ended December 31, 2017, 2016 and 2015, consolidated statutory net income (loss) of the Insurance Companies was $2.8 million, ($52.0) million and ($7.3) 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, 2017 | |
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 years ended December 31, 2017 and 2016 were $167 thousand and $112 thousand, respectively. 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. |
Current Liquidity and Statutory
Current Liquidity and Statutory Capital and Surplus | 12 Months Ended |
Dec. 31, 2017 | |
Current Liquidity And Statutory Capital And Surplus [Abstract] | |
Current Liquidity and Statutory Capital and Surplus | 18. 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, 2017, 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, 2017 had combined statutory capital and surplus of $66.1 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. 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 4.27-to-1 at December 31, 2017 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 guideline. For the year ended December 31, 2017, the insurance company subsidiaries experienced an increase in combined statutory capital and surplus of $7.2 million and a reduction in premiums written by $17.0 million, or 6%. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | 19 . 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, 2017: December 31, 2017 $ 82,054 $ 3,139 $ (10,429 ) $ (0.26 ) September 30, 2017 85,984 3,351 1,998 0.05 June 30, 2017 91,411 (1,480 ) (903 ) (0.02 ) March 31, 2017 88,069 1,576 730 0.02 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 ) Net (loss) income for the quarter ended December 31, 2017 included a reduction in the deferred tax asset of $12.5 million as a result of the enactment of legislation to reduce the corporate income tax rate. Income before income taxes for the quarter ended June 30, 2016 included unfavorable loss development of $25.8 million. |
Financial Information of Regist
Financial Information of Registrant (Parent Company) | 12 Months Ended |
Dec. 31, 2017 | |
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 2017 2016 Assets: Investment in subsidiaries, at equity in net assets $ 119,517 $ 112,479 Cash and cash equivalents 2,310 3,457 Loan to wholly-owned subsidiary 19,610 23,610 Deferred tax asset 14,883 25,828 Other assets 1,671 1,655 $ 157,991 $ 167,029 Liabilities: Debentures payable $ 40,348 $ 40,302 Term loan from principal stockholder 29,805 29,779 Other liabilities 23,081 24,460 Stockholders' equity 64,757 72,488 $ 157,991 $ 167,029 Year Ended December 31, Statement of Operations 2017 2016 2015 Interest income $ 2,944 $ 2,283 $ 1,328 Equity in income (loss) of subsidiaries, net of tax 3,390 (27,428 ) (441 ) Expenses (7,180 ) (4,508 ) (4,238 ) Loss before income taxes (846 ) (29,653 ) (3,351 ) Provision (benefit) for income taxes 7,758 (371 ) (1,421 ) Net loss $ (8,604 ) $ (29,282 ) $ (1,930 ) Year Ended December 31, Statement of Cash Flows 2017 2016 2015 Cash flows from operating activities: Net loss $ (8,604 ) $ (29,282 ) $ (1,930 ) Equity in (income) loss of subsidiaries, net of tax (3,390 ) 27,428 441 Stock-based compensation 299 207 144 Deferred income taxes 10,945 (17,179 ) (684 ) Other 71 95 (203 ) Change in assets and liabilities (1,394 ) 17,300 2,385 Net cash (used in) provided by operating activities (2,073 ) (1,431 ) 153 Cash flows from investing activities: Dividends from subsidiary 850 1,225 2,025 Loan to wholly-owned subsidiary 4,000 6,400 (30,010 ) Investments in subsidiaries (4,000 ) (10,900 ) (10,000 ) Net cash (used in) provided by investing activities 850 (3,275 ) (37,985 ) Cash flows from financing activities: Proceeds from term loan from principal stockholder — — 30,000 Net proceeds from issuance of common stock 76 68 91 Net cash provided by financing activities 76 68 30,091 Net change in cash and cash equivalents (1,147 ) (4,638 ) (7,741 ) Cash and cash equivalents, beginning of period 3,457 8,095 15,836 Cash and cash equivalents, end of period $ 2,310 $ 3,457 $ 8,095 |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
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 2017, our insurance operations generated revenue from selling non-standard personal automobile insurance products and related products in 16 states and conducted our servicing and underwriting operations in 13 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. 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, 2017 and December 31, 2016, the Company had restricted cash equivalents of $18.5 million and $18.6 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. 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. |
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 are included within other assets in the accompanying consolidated balance sheets at both December 31, 2017 and 2016. 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, 2017, 2016 and 2015 was $16.9 million, $18.9 million and $16.3 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, 2017 and 2016, identifiable intangible assets were $6.9 million and $7.6 million, respectively, stated net of accumulated amortization expense of $2.3 million and $1.5 million, respectively. The remaining amortization expense over the five succeeding fiscal years is $0.6 million, $0.5 million, $0.4 million, $0.3 million, and $0.2 million. 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. 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 a review of the relevant factors, the Company prepared a qualitative analysis for its annual impairment testing as of October 1, 2017, which 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,” Approximately 18% of the Company’s total revenues are subject to the guidance in ASU No. 2014-09. Historically, approximately 40% of these revenues are in the form of commissions paid by third party insurance carriers which are earned upon the effective date of bound coverage, less an estimated allowance for return commissions based upon historical experience, since no significant performance obligation remains in these arrangements after coverage is bound and the control of the underlying insurance policy is transferred to the customer. Approximately 30% of these revenues are in the form of commissions paid by a third-party entity on the sales of ancillary insurance products that are earned on a pro-rata basis over the life of the underlying contracts, since the Company has a contractual performance obligation for these contracts. Approximately 30% of these revenues are derived from various fees related to insurance contracts that are recognized into income as the related services are performed and costs are incurred. Based on our evaluation of this guidance, including contract reviews, the Company did not determine any impact to our consolidated financial statements in applying this new guidance as of January 1, 2018. 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 March 2016, the FASB issued ASU No. 2016-09, “ Improvements to Employee Share-Based Payment Accounting 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” In April 2017, the FASB issued ASU No. 2017-08, “Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities” In May 2017, the FASB issued ASU No. 2017-09, “Compensation-Stock Compensation (Topic 718), Scope of Modification Accounting” In February 2018, the FASB issued ASU No. 2018-02 “ Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income |
Supplemental Cash Flow Information | Supplemental Cash Flow Information During the years ended December 31, 2017, 2016 and 2015, the Company paid $0.4 million, $0.3 million and $0.7 million, respectively, in income taxes and $4.4 million, $4.2 million and $1.7 million, respectively, in interest. |
Basic and Diluted Net Loss Per Share | Basic and Diluted Net Loss Per Share Basic net loss per share is computed by dividing net loss available to common shareholders by the weighted average number of common shares, while diluted net loss per share is computed by dividing net loss 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, 2017 | |
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, 2017 December 31, 2016 Carrying Fair Carrying Fair Value Value Value Value Assets: Investments, available-for-sale $ 129,945 $ 129,945 $ 117,212 $ 117,212 Other investments 9,750 9,750 9,994 9,994 Liabilities: Debentures payable 40,348 21,248 40,302 11,488 Term loan from principal stockholder 29,805 26,691 29,779 15,000 |
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, 2017 Total (Level 1) (Level 2) (Level 3) (NAV) Fixed maturities, available-for-sale: U.S. government and agencies $ 19,347 $ 19,347 $ — $ — $ — Political subdivisions 4,083 — 4,083 — — Revenue and assessment 5,318 — 5,318 — — Corporate bonds 42,975 — 42,975 — — Collateralized mortgage obligations: Agency backed 39,104 — 39,104 — — Non-agency backed – residential 2,670 — 2,670 — — Non-agency backed – commercial 405 — 405 — — Total fixed maturities, available-for-sale 113,902 19,347 94,555 — — Preferred stock, available-for-sale 3,104 3,104 — — — Mutual funds, available-for-sale 12,939 12,939 — — — Total investments, available-for-sale 129,945 35,390 94,555 — — Other investments 9,750 — — 4,750 5,000 Cash, cash equivalents, and restricted cash 115,477 115,477 — — — Total $ 255,172 $ 150,867 $ 94,555 $ 4,750 $ 5,000 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 |
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, 2017 (in thousands). Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Common Stock at Fair Value Balance at December 31, 2016 $ 4,858 Gains included in net loss — Losses included in comprehensive loss (186 ) Investments and capital calls 78 Distributions received — Transfers into and out of Level 3 — Balance at December 31, 2017 $ 4,750 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 Cost Gains Losses Value U.S. government and agencies $ 19,642 $ 70 $ (365 ) $ 19,347 Political subdivisions 4,111 — (28 ) 4,083 Revenue and assessment 5,145 178 (5 ) 5,318 Corporate bonds 44,070 50 (1,145 ) 42,975 Collateralized mortgage obligations: Agency backed 39,823 61 (780 ) 39,104 Non-agency backed – residential 2,059 617 (6 ) 2,670 Non-agency backed – commercial 54 351 — 405 Total fixed maturities, available-for-sale 114,904 1,327 (2,329 ) 113,902 Preferred stock, available-for-sale 3,025 193 (114 ) 3,104 Mutual funds, available-for-sale 11,813 1,126 — 12,939 $ 129,742 $ 2,646 $ (2,443 ) $ 129,945 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 |
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, 2017 Gains Losses Losses Securities One year or less $ 2,219 $ — $ — $ 2,219 After one through five years 4,798 26,818 — 31,616 After five through ten years 1,750 28,372 — 30,122 After ten years 4,715 3,052 — 7,767 No single maturity date 12,991 29,187 — 42,178 $ 26,473 $ 87,429 $ — $ 113,902 |
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, 2017 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Gross Losses U.S. government and agencies $ 7,746 $ (72 ) $ 10,020 $ (293 ) $ (365 ) Political subdivisions 4,083 (28 ) — — (28 ) Revenue and assessment 1,067 (5 ) — — (5 ) Corporate bonds 10,730 (123 ) 25,235 (1,022 ) (1,145 ) Collateralized mortgage obligations: Agency backed 9,085 (95 ) 19,730 (685 ) (780 ) Non-agency backed – residential 265 (1 ) 106 (5 ) (6 ) Non-agency backed – commercial — — — — — Total fixed maturities, available-for-sale 32,976 (324 ) 55,091 (2,005 ) (2,329 ) Preferred stock, available-for-sale — — 1,411 (114 ) (114 ) Mutual funds, available-for-sale — — — — — $ 32,976 $ (324 ) $ 56,502 $ (2,119 ) $ (2,443 ) 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 ) |
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, 2017 12 26 31 December 31, 2016 37 — 40 |
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, 2017. Gross unrealized losses are further segregated by the percentage of amortized cost (in thousands, except number of securities). There were no fixed maturity securities in a continuous unrealized loss position for greater than 12 months as of December 31, 2016. Number Gross Gross Unrealized Losses of Fair Unrealized at December 31, 2017: Securities Value Losses Less than or equal to 10% 26 $ 56,502 (2,119 ) Greater than 10% — — — 26 $ 56,502 $ (2,119 ) |
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, 2017: Losses Losses than 5% 10% than 10% Less than or equal to: Three months $ 10,682 $ (55 ) $ (55 ) $ — $ — Six months 22,294 (269 ) (269 ) — — Nine months — — — — — Twelve months — — — — — Greater than twelve months 56,502 (2,119 ) (1,648 ) (471 ) — Total $ 89,478 $ (2,443 ) $ (1,972 ) $ (471 ) $ — 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 ) $ — |
Major Categories of Investment Income | The major categories of investment income follow (in thousands). Year Ended December 31, 2017 2016 2015 Fixed maturities, available-for-sale $ 2,996 $ 3,558 $ 4,220 Mutual funds, available-for-sale 680 704 666 Other investments 440 427 396 Cash and cash equivalents 1,083 448 236 Investment expenses (480 ) (488 ) (494 ) $ 4,719 $ 4,649 $ 5,024 |
Components of Net Realized (Losses) Gains on Investments, Available-For-Sale at Fair Value | The components of net realized (losses) gains on investments, available-for-sale follow (in thousands). Year Ended December 31, 2017 2016 2015 Gains $ — $ 4,982 $ 15 Losses (3 ) (22 ) (26 ) Other than temporary impairment — (147 ) — $ (3 ) $ 4,813 $ (11 ) |
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, 2017, 2016, and 2015 (in thousands). Year Ended December 31, 2017 2016 2015 Beginning balance $ (2,184 ) $ (2,632 ) $ (2,632 ) Additional credit impairments on: Previously impaired securities — — — Securities without previous impairments — (147 ) — — (147 ) — Reductions for securities deemed worthless and realized 314 595 — $ (1,870 ) $ (2,184 ) $ (2,632 ) |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [Abstract] | |
Effects of Reinsurance Premium Written and Earned | Total premiums written and earned are summarized as follows (in thousands). Year Ended December 31, 2017 2016 2015 Written Earned Written Earned Written Earned Direct $ 254,530 $ 248,803 $ 262,110 $ 265,256 $ 247,498 $ 233,652 Assumed 28,072 29,843 37,381 38,522 35,500 33,707 Ceded (425 ) (425 ) (450 ) (450 ) (372 ) (372 ) Total $ 282,177 $ 278,221 $ 299,041 $ 303,328 $ 282,626 $ 266,987 |
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, 2017 2016 2015 Ceded premiums earned $ 425 $ 450 $ 372 Reinsurance recoveries on losses and loss adjustment expenses $ 208 $ 589 $ 239 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 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 Forfeited (850 ) $1.45-$3.04 $ 1.64 Options outstanding at December 31, 2017 120 $ 3.04 $ 3.04 $ - Options exercisable/vested at December 31, 2017 120 $ 3.04 $ - |
Summary of Restricted Stock Units | The following table summarizes Restricted Stock Units that the Compensation Committee of the Board of Directors of the Company awarded to executive officers (in thousands, except per share data) Number of Restricted Stock Units Weighted Average Grant-Date Fair Value per Share Non-vested at January 1, 2015 — $ — Granted 141 2.44 Vested — — Forfeited — — Non-vested at December 31, 2015 141 2.44 Granted 146 2.30 Vested (39 ) 2.40 Forfeited (79 ) 2.37 Non-vested at December 31, 2016 169 2.36 Granted 586 1.21 Vested — — Forfeited — — Non-vested at December 31, 2017 755 $ 1.46 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 2016 Furniture and equipment $ 16,208 $ 15,583 Leasehold improvements 3,877 3,844 Aircraft 190 190 20,275 19,617 Less: Accumulated depreciation (17,387 ) (15,404 ) Property and equipment, net $ 2,888 $ 4,213 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Summary of Future Minimum Lease Payments | Future minimum lease payments primarily under these agreements follow (in thousands). For the Year Ended December 31, Amount 2018 $ 6,363 2019 4,101 2020 2,383 2021 1,429 2022 756 Thereafter 2,133 Total $ 17,165 |
Losses and Loss Adjustment Ex36
Losses and Loss Adjustment Expenses Incurred and Paid (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [Abstract] | |
Information Regarding the Reserve for Unpaid Losses and Loss Adjustment Expenses | The Company underwrites primarily a single product in the form of a non-standard personal automobile policy. Although this product can vary in terms of its coverages (liability and physical damage), disaggregation by these coverages is not considered meaningful due to the relative immateriality of the physical damage component which is only approximately 5% of the ending liability for unpaid losses and LAE. Additionally, the amount of renters coverage sold as an optional product is likewise immaterial. Information regarding the reserve for unpaid losses and loss adjustment expenses (“LAE”) is as follows (in thousands). Year Ended December 31, 2017 2016 2015 Liability for unpaid losses and LAE at beginning of year, gross $ 161,079 $ 122,071 $ 96,613 Reinsurance balances receivable (769 ) (464 ) (362 ) Liability for unpaid losses and LAE at beginning of year, net 160,310 121,607 96,251 Add: Provision for losses and LAE: Current year 223,056 278,366 218,186 Prior year (2,271 ) 30,636 845 Net losses and LAE incurred 220,785 309,002 219,031 Less: Losses and LAE paid: Current year 120,708 163,792 129,216 Prior year 102,097 106,507 64,459 Net losses and LAE paid 222,805 270,299 193,675 Liability for unpaid losses and LAE at end of year, net 158,290 160,310 121,607 Reinsurance balances receivable 840 769 464 Liability for unpaid losses and LAE at end of year, gross $ 159,130 $ 161,079 $ 122,071 |
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 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) 2008 187,583 174,921 174,312 175,044 175,849 176,468 176,947 177,190 177,226 $ 177,892 2009 146,584 140,539 140,501 141,936 142,819 142,772 142,546 142,705 142,703 2010 135,458 133,283 134,470 134,446 134,191 134,144 133,983 134,000 2011 126,384 126,886 126,272 126,373 125,810 125,670 125,703 2012 144,231 140,111 140,249 140,673 141,375 141,100 2013 145,878 140,775 142,053 144,076 144,450 2014 166,179 165,991 171,827 171,372 2015 218,186 240,419 240,388 2016 278,366 275,768 2017 223,056 Total $ 1,776,432 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 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 year (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) 2008 122,207 160,366 169,373 172,768 174,688 175,700 176,331 176,907 177,154 $ 177,159 2009 92,372 127,355 135,701 139,436 141,399 142,294 142,441 142,654 142,700 2010 87,319 120,301 128,843 131,878 132,989 133,648 133,896 133,981 2011 82,945 113,199 120,790 123,888 125,012 125,383 125,541 2012 89,159 123,869 133,397 137,968 139,781 140,554 2013 88,726 124,021 134,931 141,444 143,481 2014 98,437 144,943 162,702 167,973 2015 129,216 208,533 227,388 2016 163,792 238,657 2017 120,708 Total $ 1,618,142 Total outstanding reserves for unpaid losses and LAE, net of reinsurance $ 158,290 |
Schedule of Frequency of Claims | As of December 31, 2017, 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 2008 $ 177,892 $ — 100,189 2009 142,703 — 78,607 2010 134,000 17 71,138 2011 125,703 138 66,310 2012 141,100 366 73,546 2013 144,450 741 74,057 2014 171,372 2,449 85,334 2015 240,388 9,183 109,847 2016 275,768 27,195 117,923 2017 223,056 63,131 85,508 |
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. (Unaudited) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Non-standard auto 57.4 % 28.9 % 8.2 % 3.4 % 1.3 % 0.5 % 0.2 % 0.1 % 0.0 % 0.0 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Benefit for Income Taxes | The benefit for income taxes consisted of the following (in thousands). Year Ended December 31, 2017 2016 2015 Federal: Current $ 123 $ — $ 20 Deferred 14,760 (16,024 ) (893 ) 14,883 (16,024 ) (873 ) State: Current 184 328 255 Deferred 123 (152 ) (24 ) 307 176 231 $ 15,190 $ (15,848 ) $ (642 ) |
Provision (Benefit) for Income Taxes Differs from Amounts Computed by Applying Statutory Federal Corporate Tax Rate | The provision (benefit) for income taxes differs from the amounts computed by applying the statutory federal corporate tax rate of 21% to (loss) income before income taxes as a result of the following (in thousands). Year Ended December 31, 2017 2016 2015 Provision (benefit) for income taxes at statutory rate $ 2,305 $ (15,796 ) $ (900 ) Tax effect of: Tax-exempt investment income (66 ) (48 ) (22 ) Change in the beginning of the period balance of the valuation allowance for deferred tax assets allocated to federal income taxes 1 (157 ) 9 Stock-based compensation 229 64 22 State income taxes, net of federal income tax benefit and state valuation allowance 243 60 142 Effect of federal tax law change 12,509 - - Other items (31 ) 29 107 $ 15,190 $ (15,848 ) $ (642 ) |
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, 2017 2016 Deferred tax assets: Net operating loss carryforwards $ 13,380 $ 24,208 Stock-based compensation 164 404 Unearned premiums and loss and loss adjustment expense reserves 5,408 6,752 Goodwill and identifiable intangible assets 853 2,832 Alternative minimum tax (“AMT”) credit carryforwards 1,991 2,015 Accrued expenses and other nondeductible items 1,292 1,345 Other 2,434 3,619 25,522 41,175 Deferred tax liabilities: Deferred acquisition costs (1,039 ) (1,698 ) Identifiable intangible assets (1,200 ) (1,872 ) Loss reserve discounting (1,206 ) — Other (191 ) (92 ) (3,636 ) (3,662 ) Total net deferred tax asset 21,886 37,513 Less: Valuation allowance (1,337 ) (1,872 ) Net deferred tax asset $ 20,549 $ 35,641 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 2016 2015 Net loss $ (8,604 ) $ (29,282 ) $ (1,930 ) Weighted average common basic shares 41,286 41,085 41,030 Basic and diluted net loss per share $ (0.21 ) $ (0.71 ) $ (0.05 ) |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 2016 2015 Revenues: Insurance $ 347,448 $ 388,323 $ 331,828 Real estate and corporate 70 1,300 64 Consolidated total $ 347,518 $ 389,623 $ 331,892 Income (loss) before income taxes: Insurance $ 12,483 $ (40,685 ) $ 338 Real estate and corporate (5,897 ) (4,445 ) (2,910 ) Consolidated total $ 6,586 $ (45,130 ) $ (2,572 ) December 31, 2017 2016 Total assets: Insurance $ 361,869 $ 354,008 Real estate and corporate 33,990 46,066 Consolidated total $ 395,859 $ 400,074 |
Selected Quarterly Financial 40
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017: December 31, 2017 $ 82,054 $ 3,139 $ (10,429 ) $ (0.26 ) September 30, 2017 85,984 3,351 1,998 0.05 June 30, 2017 91,411 (1,480 ) (903 ) (0.02 ) March 31, 2017 88,069 1,576 730 0.02 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 ) |
Summary of Significant Accoun41
Summary of Significant Accounting Policies - Additional Information (Detail) | May 04, 2016USD ($)Land | Dec. 31, 2017USD ($)State | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Indefinite-lived Intangible Assets [Line Items] | ||||
Number of states in which company writes non-standard personal automobile insurance | State | 16 | |||
Number of state in which company conducts servicing and underwriting operations | State | 13 | |||
Maximum maturity period of cash equivalents included in investments | 3 months | |||
Restricted cash equivalents | $ 18,500,000 | $ 18,600,000 | ||
Additional liability or reduction in deferred tax assets for unrecognized tax benefits | 0 | 0 | ||
Foreclosed real estate held for sale assets | 200,000 | 200,000 | ||
Tract of land sold | Land | 1 | |||
Gain on sale of land | $ 1,200,000 | 1,237,000 | ||
Amortization expenses | 16,900,000 | 18,900,000 | $ 16,300,000 | |
Identifiable intangible asset | 6,900,000 | 7,600,000 | ||
Accumulated amortization expense | 2,300,000 | 1,500,000 | ||
Estimated amortization expense, Year 1 | 600,000 | |||
Estimated amortization expense, Year 2 | 500,000 | |||
Estimated amortization expense, Year 3 | 400,000 | |||
Estimated amortization expense, Year 4 | 300,000 | |||
Estimated amortization expense, Year 5 | 200,000 | |||
Undiscounted contractual cash payments remaining on leased properties | 17,165,000 | |||
Income taxes | 400,000 | 300,000 | 700,000 | |
Interest expense | $ 4,400,000 | $ 4,200,000 | $ 1,700,000 | |
ASU No. 2014-09 | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Percentage of total revenue subject to guidance | 18.00% | |||
Percentage of revenue related to commissions paid by third party insurance carriers | 40.00% | |||
Percentage of revenue related to commissions paid by third party ancillary insurance products | 30.00% | |||
Percentage of revenue from billing fees related to insurance contracts | 30.00% | |||
ASU No. 2016-02 | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Undiscounted contractual cash payments remaining on leased properties | $ 17,200,000 | |||
ASU No. 2018-02 | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Reclassification of deferred tax liability from accumulated other comprehensive income to accumulated deficit | $ 86,000 | |||
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, 2017 | Dec. 31, 2016 |
Assets: | ||
Investments, available-for-sale | $ 129,945 | $ 117,212 |
Other investments | 9,750 | 9,994 |
Carrying Value | ||
Assets: | ||
Investments, available-for-sale | 129,945 | 117,212 |
Other investments | 9,750 | 9,994 |
Liabilities: | ||
Debentures payable | 40,348 | 40,302 |
Term loan from principal stockholder | 29,805 | 29,779 |
Fair Value | ||
Assets: | ||
Investments, available-for-sale | 129,945 | 117,212 |
Other investments | 9,750 | 9,994 |
Liabilities: | ||
Debentures payable | 21,248 | 11,488 |
Term loan from principal stockholder | $ 26,691 | $ 15,000 |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investments, available-for-sale | $ 129,945 | $ 117,212 | |
Other investments | 9,750 | 9,994 | |
Cash, cash equivalents, and restricted cash | 115,477 | 118,681 | |
Total | 255,172 | 245,887 | |
Other investments, proportionate share of net assets | 5,000 | $ 5,136 | |
Total, proportionate share of net assets | 5,000 | $ 5,136 | |
Fixed Maturities | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investments, available-for-sale | 113,902 | 101,589 | |
Fixed Maturities | U.S. government and agencies | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investments, available-for-sale | 19,347 | 18,951 | |
Fixed Maturities | Political subdivisions | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investments, available-for-sale | 4,083 | 4,165 | |
Fixed Maturities | Revenue and assessment | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investments, available-for-sale | 5,318 | 5,683 | |
Fixed Maturities | Corporate bonds | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investments, available-for-sale | 42,975 | 45,540 | |
Fixed Maturities | Collateralized mortgage obligations: Agency Backed | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investments, available-for-sale | 39,104 | 22,422 | |
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 | 2,670 | 2,933 | |
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 | 405 | 1,895 | |
Preferred stock, available-for-sale | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investments, available-for-sale | 3,104 | 3,112 | |
Mutual funds, available-for-sale | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investments, available-for-sale | 12,939 | 12,511 | |
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 | 35,390 | 34,574 | |
Cash, cash equivalents, and restricted cash | 115,477 | 118,681 | |
Total | 150,867 | 153,255 | |
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 | 19,347 | 18,951 | |
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 | 19,347 | 18,951 | |
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 | 3,104 | 3,112 | |
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 | 12,939 | 12,511 | |
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 | 94,555 | 82,638 | |
Total | 94,555 | 82,638 | |
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 | 94,555 | 82,638 | |
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 | 4,083 | 4,165 | |
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 | 5,318 | 5,683 | |
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 | 42,975 | 45,540 | |
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 | 39,104 | 22,422 | |
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 | 2,670 | 2,933 | |
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 | 405 | 1,895 | |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Other investments | 4,750 | 4,858 | |
Total | $ 4,750 | $ 4,858 |
Fair Value - Additional Informa
Fair Value - Additional Information (Detail) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
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, 2017USD ($) | |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | |
Balance at December 31, 2016 | $ 4,858 |
Losses included in comprehensive loss | (186) |
Investments and capital calls | 78 |
Balance at December 31, 2017 | $ 4,750 |
Investments - Summary of Compan
Investments - Summary of Company's Investment Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Investment Securities [Line Items] | ||
Amortized Cost | $ 129,742 | $ 117,902 |
Gross Unrealized Gains | 2,646 | 2,389 |
Gross Unrealized Losses | (2,443) | (3,079) |
Fair Value | 129,945 | 117,212 |
Fixed Maturities | ||
Investment Securities [Line Items] | ||
Amortized Cost | 114,904 | 103,064 |
Gross Unrealized Gains | 1,327 | 1,493 |
Gross Unrealized Losses | (2,329) | (2,968) |
Fair Value | 113,902 | 101,589 |
Fixed Maturities | U.S. government and agencies | ||
Investment Securities [Line Items] | ||
Amortized Cost | 19,642 | 19,142 |
Gross Unrealized Gains | 70 | 112 |
Gross Unrealized Losses | (365) | (303) |
Fair Value | 19,347 | 18,951 |
Fixed Maturities | Political subdivisions | ||
Investment Securities [Line Items] | ||
Amortized Cost | 4,111 | 4,233 |
Gross Unrealized Losses | (28) | (68) |
Fair Value | 4,083 | 4,165 |
Fixed Maturities | Revenue and assessment | ||
Investment Securities [Line Items] | ||
Amortized Cost | 5,145 | 5,539 |
Gross Unrealized Gains | 178 | 185 |
Gross Unrealized Losses | (5) | (41) |
Fair Value | 5,318 | 5,683 |
Fixed Maturities | Corporate bonds | ||
Investment Securities [Line Items] | ||
Amortized Cost | 44,070 | 47,238 |
Gross Unrealized Gains | 50 | 107 |
Gross Unrealized Losses | (1,145) | (1,805) |
Fair Value | 42,975 | 45,540 |
Fixed Maturities | Collateralized mortgage obligations: Agency Backed | ||
Investment Securities [Line Items] | ||
Amortized Cost | 39,823 | 23,093 |
Gross Unrealized Gains | 61 | 73 |
Gross Unrealized Losses | (780) | (744) |
Fair Value | 39,104 | 22,422 |
Fixed Maturities | Collateralized mortgage obligations: Non-agency backed - residential | ||
Investment Securities [Line Items] | ||
Amortized Cost | 2,059 | 2,411 |
Gross Unrealized Gains | 617 | 529 |
Gross Unrealized Losses | (6) | (7) |
Fair Value | 2,670 | 2,933 |
Fixed Maturities | Collateralized mortgage obligations: Non-agency backed - commercial | ||
Investment Securities [Line Items] | ||
Amortized Cost | 54 | 1,408 |
Gross Unrealized Gains | 351 | 487 |
Fair Value | 405 | 1,895 |
Preferred stock, available-for-sale | ||
Investment Securities [Line Items] | ||
Amortized Cost | 3,025 | 3,025 |
Gross Unrealized Gains | 193 | 198 |
Gross Unrealized Losses | (114) | (111) |
Fair Value | 3,104 | 3,112 |
Mutual funds, available-for-sale | ||
Investment Securities [Line Items] | ||
Amortized Cost | 11,813 | 11,813 |
Gross Unrealized Gains | 1,126 | 698 |
Fair Value | $ 12,939 | $ 12,511 |
Investments - Scheduled Maturit
Investments - Scheduled Maturities of Company's Fixed Maturity Securities Based on their Fair Values (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Securities with Unrealized Losses, Total | $ 89,478 | $ 86,000 |
Fixed Maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities with Unrealized Gains, One year or less | 2,219 | |
Securities with Unrealized Gains, After one through five years | 4,798 | |
Securities with Unrealized Gains, After five through ten years | 1,750 | |
Securities with Unrealized Gains, After ten years | 4,715 | |
Securities with Unrealized Gains, No single maturity date | 12,991 | |
Securities with Unrealized Gains, Total | 26,473 | |
Securities with Unrealized Losses, After one through five years | 26,818 | |
Securities with Unrealized Losses, After five through ten years | 28,372 | |
Securities with Unrealized Losses, After ten years | 3,052 | |
Securities with Unrealized Losses, No single maturity date | 29,187 | |
Securities with Unrealized Losses, Total | 87,429 | |
All Fixed Maturity Securities, One year or less | 2,219 | |
All Fixed Maturity Securities, After one through five years | 31,616 | |
All Fixed Maturity Securities, After five through ten years | 30,122 | |
All Fixed Maturity Securities, After ten years | 7,767 | |
All Fixed Maturity Securities, No single maturity date | 42,178 | |
All Fixed Maturity Securities, Total | $ 113,902 |
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, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair value | $ 32,976 | $ 86,000 |
Less than 12 months, Gross Unrealized Losses | (324) | (3,079) |
12 months or longer, Fair value | 56,502 | |
12 months or longer, Gross Unrealized Losses | (2,119) | |
Total Gross Unrealized Losses | (2,443) | (3,079) |
Total Fixed Maturities, Available-for-Sale | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair value | 32,976 | 84,585 |
Less than 12 months, Gross Unrealized Losses | (324) | (2,968) |
12 months or longer, Fair value | 55,091 | |
12 months or longer, Gross Unrealized Losses | (2,005) | |
Total Gross Unrealized Losses | (2,329) | (2,968) |
U.S. Government and Agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair value | 7,746 | 14,837 |
Less than 12 months, Gross Unrealized Losses | (72) | (303) |
12 months or longer, Fair value | 10,020 | |
12 months or longer, Gross Unrealized Losses | (293) | |
Total Gross Unrealized Losses | (365) | (303) |
Political Subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair value | 4,083 | 4,166 |
Less than 12 months, Gross Unrealized Losses | (28) | (68) |
Total Gross Unrealized Losses | (28) | (68) |
Revenue and Assessment | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair value | 1,067 | 2,783 |
Less than 12 months, Gross Unrealized Losses | (5) | (41) |
Total Gross Unrealized Losses | (5) | (41) |
Corporate Bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair value | 10,730 | 41,057 |
Less than 12 months, Gross Unrealized Losses | (123) | (1,805) |
12 months or longer, Fair value | 25,235 | |
12 months or longer, Gross Unrealized Losses | (1,022) | |
Total Gross Unrealized Losses | (1,145) | (1,805) |
Agency Backed | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair value | 9,085 | 21,637 |
Less than 12 months, Gross Unrealized Losses | (95) | (744) |
12 months or longer, Fair value | 19,730 | |
12 months or longer, Gross Unrealized Losses | (685) | |
Total Gross Unrealized Losses | (780) | (744) |
Non-Agency Backed - Residential | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair value | 265 | 105 |
Less than 12 months, Gross Unrealized Losses | (1) | (7) |
12 months or longer, Fair value | 106 | |
12 months or longer, Gross Unrealized Losses | (5) | |
Total Gross Unrealized Losses | (6) | (7) |
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) | |
12 months or longer, Fair value | 1,411 | |
12 months or longer, Gross Unrealized Losses | (114) | |
Total Gross Unrealized Losses | $ (114) | $ (111) |
Investments - Number of Fixed M
Investments - Number of Fixed Maturity Securities with Gross Unrealized Gains and Losses (Detail) - Security | Dec. 31, 2017 | Dec. 31, 2016 |
Investments Debt And Equity Securities [Abstract] | ||
Number of Securities with Gross Unrealized Losses Less than or equal to 12 months | 12 | 37 |
Number of Securities with Gross Unrealized Losses Greater than 12 months | 26 | 0 |
Number of Securities with Gross Unrealized Gains | 31 | 40 |
Investments - Additional Inform
Investments - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2017USD ($)SecurityFund | Dec. 31, 2016USD ($)Security | Dec. 31, 2015USD ($) | |
Investments Debt And Equity Securities [Abstract] | |||
Number of securities | Security | 26 | 0 | |
Number of investment funds | Fund | 3 | ||
Unfunded commitments | $ 2,500,000 | ||
Fixed maturities and cash equivalents on deposit with various insurance departments at fair value and amortized cost | 6,200,000 | ||
Cash equivalents on deposit with another insurance company at fair value and amortized cost | 18,300,000 | ||
Non credit other than temporary impairment for securities | 1,000,000 | $ 1,000,000 | |
OTTI charges recognized in net loss | $ 0 | $ 147,000 | $ 0 |
Investments - Fair Value and 51
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, 2017USD ($)Security | Dec. 31, 2016Security |
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities | Security | 26 | 0 |
Fair Value | $ 56,502 | |
Gross Unrealized Losses | $ (2,119) | |
Percentage of amortized cost less than or equal to 10% | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities | Security | 26 | |
Fair Value | $ 56,502 | |
Gross Unrealized Losses | $ (2,119) |
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, 2017 | Dec. 31, 2016 |
Investment Maturity Date [Line Items] | ||
Fair Value of Securities with Gross Unrealized Losses | $ 89,478 | $ 86,000 |
Gross Unrealized Losses | (2,443) | (3,079) |
Percentage of amortized cost less than 5% | ||
Investment Maturity Date [Line Items] | ||
Gross Unrealized Losses | (1,972) | (1,693) |
Percentage of amortized cost 5% to 10% | ||
Investment Maturity Date [Line Items] | ||
Gross Unrealized Losses | (471) | (1,386) |
Less than or equals to three months | ||
Investment Maturity Date [Line Items] | ||
Fair Value of Securities with Gross Unrealized Losses | 10,682 | 58,550 |
Gross Unrealized Losses | (55) | (1,886) |
Less than or equals to three months | Percentage of amortized cost less than 5% | ||
Investment Maturity Date [Line Items] | ||
Gross Unrealized Losses | (55) | (1,461) |
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 | 22,294 | 27,193 |
Gross Unrealized Losses | (269) | (1,186) |
Less than or equals to six months | Percentage of amortized cost less than 5% | ||
Investment Maturity Date [Line Items] | ||
Gross Unrealized Losses | (269) | (232) |
Less than or equals to six months | Percentage of amortized cost 5% to 10% | ||
Investment Maturity Date [Line Items] | ||
Gross Unrealized Losses | (954) | |
Less than or equals to nine months | ||
Investment Maturity Date [Line Items] | ||
Fair Value of Securities with Gross Unrealized Losses | 152 | |
Less than or equals to twelve months | ||
Investment Maturity Date [Line Items] | ||
Fair Value of Securities with Gross Unrealized Losses | 105 | |
Gross Unrealized Losses | (7) | |
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 | 56,502 | |
Gross Unrealized Losses | (2,119) | |
Greater than 12 months | Percentage of amortized cost less than 5% | ||
Investment Maturity Date [Line Items] | ||
Gross Unrealized Losses | (1,648) | |
Greater than 12 months | Percentage of amortized cost 5% to 10% | ||
Investment Maturity Date [Line Items] | ||
Gross Unrealized Losses | $ (471) |
Investments - Major Categories
Investments - Major Categories of Investment Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net Investment Income [Line Items] | |||
Investment expenses | $ (480) | $ (488) | $ (494) |
Net investment income | 4,719 | 4,649 | 5,024 |
Fixed Maturities | |||
Net Investment Income [Line Items] | |||
Gross investment income | 2,996 | 3,558 | 4,220 |
Mutual funds, available-for-sale | |||
Net Investment Income [Line Items] | |||
Gross investment income | 680 | 704 | 666 |
Other investments | |||
Net Investment Income [Line Items] | |||
Gross investment income | 440 | 427 | 396 |
Cash and cash equivalents | |||
Net Investment Income [Line Items] | |||
Gross investment income | $ 1,083 | $ 448 | $ 236 |
Investments - Components of Net
Investments - Components of Net Realized (Losses) Gains on Investments, Available-for-Sale at Fair Value (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investments Debt And Equity Securities [Abstract] | |||
Gains | $ 4,982,000 | $ 15,000 | |
Losses | $ (3,000) | (22,000) | (26,000) |
Other than temporary impairment | 0 | (147,000) | 0 |
Net realized (losses) gains on investments, available-for-sale | $ (3,000) | $ 4,813,000 | $ (11,000) |
Investments - Progression of Cr
Investments - Progression of Credit-Related Portion of OTTI on Investments (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investments Debt And Equity Securities [Abstract] | |||
Beginning balance | $ (2,184) | $ (2,632) | $ (2,632) |
Additional credit impairments on: | |||
Previously impaired securities | 0 | 0 | |
Securities without previous impairments | (147) | 0 | |
Total additional credit impairments securities | (147) | 0 | |
Reductions for securities deemed worthless and realized | 314 | 595 | |
Ending balance | $ (1,870) | $ (2,184) | $ (2,632) |
Reinsurance - Effects of Reinsu
Reinsurance - Effects of Reinsurance Premium Written and Earned (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Insurance [Abstract] | |||
Direct Written | $ 254,530 | $ 262,110 | $ 247,498 |
Assumed Written | 28,072 | 37,381 | 35,500 |
Ceded Written | (425) | (450) | (372) |
Written Total | 282,177 | 299,041 | 282,626 |
Direct Earned | 248,803 | 265,256 | 233,652 |
Assumed Earned | 29,843 | 38,522 | 33,707 |
Ceded Earned | (425) | (450) | (372) |
Earned Total | $ 278,221 | $ 303,328 | $ 266,987 |
Reinsurance - Additional Inform
Reinsurance - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Insurance [Abstract] | |||
Percentage of quota-share reinsurance | 100.00% | ||
Percentages of premiums | 10.00% | 13.00% | 13.00% |
Unsecured aggregate reinsurance receivables | $ 0.9 |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Insurance [Abstract] | |||
Ceded premiums earned | $ 425 | $ 450 | $ 372 |
Reinsurance recoveries on losses and loss adjustment expenses | $ 208 | $ 589 | $ 239 |
Stock-Based Compensation Plan59
Stock-Based Compensation Plans - Additional Information (Detail) - USD ($) | 12 Months Ended | 72 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Remaining available shares for issuance under the plan | 6,450,143 | ||||
Stock Option Awards expiry range | 5 years | ||||
Stock Option Awards granted | 0 | ||||
Options outstanding | 120,000 | 970,000 | 1,085,000 | 120,000 | 1,120,000 |
Exercise price of options | $ 3.04 | $ 3.04 | |||
Stock Option Awards expiration date | Mar. 17, 2018 | ||||
Compensation expense to purchase shares under the ESPP | $ 299,000 | $ 207,000 | $ 144,000 | ||
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 | 68,000 | 64,000 | 37,000 | ||
Compensation expense to purchase shares under the ESPP | $ 20,000 | $ 19,000 | $ 12,000 | ||
Shares remain available for issuance under the ESPP | 118,456 | 118,456 | |||
Employee Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock Option Awards expiry range | 10 years |
Stock-Based Compensation Plan60
Stock-Based Compensation Plans - Summary of the Activity for the Company's Stock Option Awards (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options outstanding, Options, Beginning Balance | 970,000 | 1,085,000 | 1,120,000 |
Forfeited, Options | (850,000) | (115,000) | (35,000) |
Options outstanding, Options, Ending Balance | 120,000 | 970,000 | 1,085,000 |
Options exercisable/vested at December 31, 2017 | 120,000 | ||
Forfeited, Exercise Price | $ 3.04 | ||
Options Outstanding, Exercise Price, Ending Balance | $ 3.04 | ||
Options outstanding, Weighted Average Exercise Price, Beginning Balance | 1.81 | $ 1.83 | 1.87 |
Forfeited, Weighted Average Exercise Price | 1.64 | 2 | 3.04 |
Options outstanding, Weighted Average Exercise Price, Ending Balance | 3.04 | 1.81 | 1.83 |
Options exercisable/vested at December 31, 2017, Weighted Average Exercise Price | 3.04 | ||
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 | 1.45 | |
Options Outstanding, Exercise Price, Ending Balance | 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 | 3.04 |
Forfeited, Exercise Price | $ 3.04 | 3.04 | |
Options Outstanding, Exercise Price, Ending Balance | $ 3.04 | $ 3.04 |
Stock-Based Compensation Plan61
Stock-Based Compensation Plans - Summary of Restricted Stock Units (Detail) - Restricted stock - Executive Officer - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-vested, Number of Stock Units, Beginning Balance | 169 | 141 | |
Granted, Number of Stock Units | 586 | 146 | 141 |
Vested, Number of Stock Units | (39) | ||
Forfeited, Number of Stock Units | (79) | ||
Non-vested, Number of Stock Units, Ending Balance | 755 | 169 | 141 |
Non-vested, Weighted Average Grant-Date Fair Value per Share, Beginning Balance | $ 2.36 | $ 2.44 | |
Granted, Weighted Average Grant-Date Fair Value per Share | 1.21 | 2.30 | $ 2.44 |
Vested, Weighted Average Grant-Date Fair Value per Share | 2.40 | ||
Forfeited, Weighted Average Grant-Date Fair Value per Share | 2.37 | ||
Non-vested, Weighted Average Grant-Date Fair Value per Share, Ending Balance | $ 1.46 | $ 2.36 | $ 2.44 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
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 | $ 1.3 | $ 1.1 | $ 1 |
Property and Equipment - Compon
Property and Equipment - Components of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 20,275 | $ 19,617 |
Less: Accumulated depreciation | (17,387) | (15,404) |
Property and equipment, net | 2,888 | 4,213 |
Furniture and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 16,208 | 15,583 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 3,877 | 3,844 |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property Plant And Equipment Useful Life And Values [Abstract] | |||
Depreciation expense | $ 2,068 | $ 2,540 | $ 1,751 |
Lease Commitments - Additional
Lease Commitments - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Leases [Abstract] | |||
Rental expense | $ 9.9 | $ 11.3 | $ 11.2 |
Lease Commitments - Summary of
Lease Commitments - Summary of Future Minimum Lease Payments (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Leases [Abstract] | |
2,018 | $ 6,363 |
2,019 | 4,101 |
2,020 | 2,383 |
2,021 | 1,429 |
2,022 | 756 |
Thereafter | 2,133 |
Total | $ 17,165 |
Losses and Loss Adjustment Ex67
Losses and Loss Adjustment Expenses Incurred and Paid - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Insurance [Abstract] | |||
Percentage of physical damage component on ending liability for unpaid losses and loss adjustment expenses | 5.00% | ||
Unpaid losses and loss adjustment expenses | $ 2,271 | $ (30,636) | $ (845) |
Losses and Loss Adjustment Ex68
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Insurance [Abstract] | |||
Liability for unpaid losses and LAE at beginning of year, gross | $ 161,079 | $ 122,071 | $ 96,613 |
Reinsurance balances receivable, beginning balance | (769) | (464) | (362) |
Liability for unpaid losses and LAE at beginning of year, net | 160,310 | 121,607 | 96,251 |
Add: Provision for losses and LAE: | |||
Current year | 223,056 | 278,366 | 218,186 |
Prior year | (2,271) | 30,636 | 845 |
Net losses and LAE incurred | 220,785 | 309,002 | 219,031 |
Less: Losses and LAE paid: | |||
Current year | 120,708 | 163,792 | 129,216 |
Prior year | 102,097 | 106,507 | 64,459 |
Net losses and LAE paid | 222,805 | 270,299 | 193,675 |
Liability for unpaid losses and LAE at end of year, net | 158,290 | 160,310 | 121,607 |
Reinsurance balances receivable, ending balance | 840 | 769 | 464 |
Liability for unpaid losses and LAE at end of year, gross | $ 159,130 | $ 161,079 | $ 122,071 |
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, 2017 | 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 |
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | $ 1,776,432 | |||||||||
Accident Year 2008 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | 177,892 | $ 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 | 142,703 | 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 | 134,000 | 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 | 125,703 | 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 | 141,100 | 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 | 144,450 | 144,076 | 142,053 | 140,775 | $ 145,878 | |||||
Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | 171,372 | 171,827 | 165,991 | $ 166,179 | ||||||
Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | 240,388 | 240,419 | $ 218,186 | |||||||
Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | 275,768 | $ 278,366 | ||||||||
Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | $ 223,056 |
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, 2017 | 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 |
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 1,618,142 | |||||||||
Total outstanding reserves for unpaid losses and LAE, net of reinsurance | 158,290 | |||||||||
Accident Year 2008 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | 177,159 | $ 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 | 142,700 | 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 | 133,981 | 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 | 125,541 | 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 | 140,554 | 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 | 143,481 | 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 | 167,973 | 162,702 | 144,943 | $ 98,437 | ||||||
Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | 227,388 | 208,533 | $ 129,216 | |||||||
Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | 238,657 | $ 163,792 | ||||||||
Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 120,708 |
Losses and Loss Adjustment Ex71
Losses and Loss Adjustment Expenses Incurred and Paid - Schedule of Frequency of Claims (Detail) $ in Thousands | Dec. 31, 2017USD ($)Claim | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2009USD ($) | Dec. 31, 2008USD ($) |
Claims Development [Line Items] | ||||||||||
Incurred losses and LAE, net of reinsurance | $ 1,776,432 | |||||||||
Accident Year 2008 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and LAE, net of reinsurance | $ 177,892 | $ 177,226 | $ 177,190 | $ 176,947 | $ 176,468 | $ 175,849 | $ 175,044 | $ 174,312 | $ 174,921 | $ 187,583 |
Cumulative number of reported claims | Claim | 100,189 | |||||||||
Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and LAE, net of reinsurance | $ 142,703 | 142,705 | 142,546 | 142,772 | 142,819 | 141,936 | 140,501 | 140,539 | $ 146,584 | |
Cumulative number of reported claims | Claim | 78,607 | |||||||||
Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and LAE, net of reinsurance | $ 134,000 | 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 | $ 17 | |||||||||
Cumulative number of reported claims | Claim | 71,138 | |||||||||
Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and LAE, net of reinsurance | $ 125,703 | 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 | $ 138 | |||||||||
Cumulative number of reported claims | Claim | 66,310 | |||||||||
Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and LAE, net of reinsurance | $ 141,100 | 141,375 | 140,673 | 140,249 | 140,111 | $ 144,231 | ||||
Total of incurred but not reported liabilities plus expected development on reported claims | $ 366 | |||||||||
Cumulative number of reported claims | Claim | 73,546 | |||||||||
Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and LAE, net of reinsurance | $ 144,450 | 144,076 | 142,053 | 140,775 | $ 145,878 | |||||
Total of incurred but not reported liabilities plus expected development on reported claims | $ 741 | |||||||||
Cumulative number of reported claims | Claim | 74,057 | |||||||||
Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and LAE, net of reinsurance | $ 171,372 | 171,827 | 165,991 | $ 166,179 | ||||||
Total of incurred but not reported liabilities plus expected development on reported claims | $ 2,449 | |||||||||
Cumulative number of reported claims | Claim | 85,334 | |||||||||
Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and LAE, net of reinsurance | $ 240,388 | 240,419 | $ 218,186 | |||||||
Total of incurred but not reported liabilities plus expected development on reported claims | $ 9,183 | |||||||||
Cumulative number of reported claims | Claim | 109,847 | |||||||||
Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and LAE, net of reinsurance | $ 275,768 | $ 278,366 | ||||||||
Total of incurred but not reported liabilities plus expected development on reported claims | $ 27,195 | |||||||||
Cumulative number of reported claims | Claim | 117,923 | |||||||||
Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and LAE, net of reinsurance | $ 223,056 | |||||||||
Total of incurred but not reported liabilities plus expected development on reported claims | $ 63,131 | |||||||||
Cumulative number of reported claims | Claim | 85,508 |
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, 2017 |
Insurance [Abstract] | |
Average historical annual percentage payout of incurred losses by age, net of reinsurance, year 1 | 57.40% |
Average historical annual percentage payout of incurred losses by age, net of reinsurance, year 2 | 28.90% |
Average historical annual percentage payout of incurred losses by age, net of reinsurance, year 3 | 8.20% |
Average historical annual percentage payout of incurred losses by age, net of reinsurance, year 4 | 3.40% |
Average historical annual percentage payout of incurred losses by age, net of reinsurance, year 5 | 1.30% |
Average historical annual percentage payout of incurred losses by age, net of reinsurance, year 6 | 0.50% |
Average historical annual percentage payout of incurred losses by age, net of reinsurance, year 7 | 0.20% |
Average historical annual percentage payout of incurred losses by age, net of reinsurance, year 8 | 0.10% |
Average historical annual percentage payout of incurred losses by age, net of reinsurance, year 9 | 0.00% |
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, 2018 | Dec. 31, 2017 | 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 | 5.517% | ||||
Junior Subordinated Debentures | Minimum | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 4.637% | ||||
Junior Subordinated Debentures | Maximum | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 5.128% | ||||
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 - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Line Items] | ||||||||||||
Statutory federal corporate tax rate | 35.00% | |||||||||||
Estimate effects on deferred tax balances and recognized provisional amount included as component of provision for income taxes | $ 12,500 | $ 12,509 | ||||||||||
Valuation allowance | 1,337 | $ 1,872 | 1,337 | $ 1,872 | ||||||||
Pre-tax loss | 3,139 | $ 3,351 | $ (1,480) | $ 1,576 | (5,822) | $ (327) | $ (30,607) | $ (8,374) | 6,586 | (45,130) | $ (2,572) | |
DTA related to net operating loss carryforwards | 13,380 | 24,208 | $ 13,380 | 24,208 | ||||||||
DTA related to operating loss carryforwards expiration, description | do not expire until 2032 through 2036 | |||||||||||
AMT carryforwards | $ 1,991 | $ 2,015 | $ 1,991 | $ 2,015 | ||||||||
Scenario, Forecast | ||||||||||||
Income Taxes [Line Items] | ||||||||||||
Statutory federal corporate tax rate | 21.00% |
Income Taxes - Benefit for Inco
Income Taxes - Benefit for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Federal: | |||
Current | $ 123 | $ 20 | |
Deferred | 14,760 | $ (16,024) | (893) |
Gross Federal | 14,883 | (16,024) | (873) |
State: | |||
Current | 184 | 328 | 255 |
Deferred | 123 | (152) | (24) |
Gross State | 307 | 176 | 231 |
Income tax expense (benefit) | $ 15,190 | $ (15,848) | $ (642) |
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 | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Provision (benefit) for income taxes at statutory rate | $ 2,305 | $ (15,796) | $ (900) | |
Tax effect of: | ||||
Tax-exempt investment income | (66) | (48) | (22) | |
Change in the beginning of the period balance of the valuation allowance for deferred tax assets allocated to federal income taxes | 1 | (157) | 9 | |
Stock-based compensation | 229 | 64 | 22 | |
State income taxes, net of federal income tax benefit and state valuation allowance | 243 | 60 | 142 | |
Effect of federal tax law change | $ 12,500 | 12,509 | ||
Other items | (31) | 29 | 107 | |
Income tax expense (benefit) | $ 15,190 | $ (15,848) | $ (642) |
Income Taxes - Summary of Net D
Income Taxes - Summary of Net Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 13,380 | $ 24,208 |
Stock-based compensation | 164 | 404 |
Unearned premiums and loss and loss adjustment expense reserves | 5,408 | 6,752 |
Goodwill and identifiable intangible assets | 853 | 2,832 |
Alternative minimum tax (“AMT”) credit carryforwards | 1,991 | 2,015 |
Accrued expenses and other nondeductible items | 1,292 | 1,345 |
Other | 2,434 | 3,619 |
Deferred Tax Assets, Gross, Total | 25,522 | 41,175 |
Deferred tax liabilities: | ||
Deferred acquisition costs | (1,039) | (1,698) |
Identifiable intangible assets | (1,200) | (1,872) |
Loss reserve discounting | (1,206) | |
Other | (191) | (92) |
Deferred tax liabilities, gross | (3,636) | (3,662) |
Total net deferred tax asset | 21,886 | 37,513 |
Less: Valuation allowance | (1,337) | (1,872) |
Net deferred tax asset | $ 20,549 | $ 35,641 |
Net Loss Per Share - Computatio
Net Loss 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, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||||||||||
Net loss | $ (10,429) | $ 1,998 | $ (903) | $ 730 | $ (3,545) | $ (333) | $ (19,899) | $ (5,505) | $ (8,604) | $ (29,282) | $ (1,930) |
Weighted average common basic shares | 41,286 | 41,085 | 41,030 | ||||||||
Basic and diluted net loss per share | $ (0.26) | $ 0.05 | $ (0.02) | $ 0.02 | $ (0.09) | $ (0.01) | $ (0.48) | $ (0.13) | $ (0.21) | $ (0.71) | $ (0.05) |
Net Loss Per Share - Additional
Net Loss Per Share - Additional Information (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Equity option | |||
Earnings Per Share [Line Items] | |||
Exercisable options outstanding that enable to purchase shares | 750 | 825 | |
Shares with dilutive effect and included in computation of diluted loss per share | 127 | 319 | |
Options excluded from computation of diluted loss per share due to anti-dilutive effect | 120 | 220 | 260 |
Restricted stock | |||
Earnings Per Share [Line Items] | |||
Exercisable options outstanding that enable to purchase shares | 755 | 169 | 141 |
Shares with dilutive effect and included in computation of diluted loss per share | 103 | 17 | 26 |
Concentrations of Credit Risk -
Concentrations of Credit Risk - Additional Information (Detail) $ in Millions | Dec. 31, 2017USD ($) |
Risks And Uncertainties [Abstract] | |
Cash, cash equivalents, and restricted cash | $ 115.5 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017Segment | |
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, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 82,054 | $ 85,984 | $ 91,411 | $ 88,069 | $ 87,806 | $ 102,115 | $ 102,754 | $ 96,948 | $ 347,518 | $ 389,623 | $ 331,892 |
Income (loss) before income taxes | 3,139 | $ 3,351 | $ (1,480) | $ 1,576 | (5,822) | $ (327) | $ (30,607) | $ (8,374) | 6,586 | (45,130) | (2,572) |
Total assets | 395,859 | 400,074 | 395,859 | 400,074 | |||||||
Insurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 347,448 | 388,323 | 331,828 | ||||||||
Income (loss) before income taxes | 12,483 | (40,685) | 338 | ||||||||
Total assets | 361,869 | 354,008 | 361,869 | 354,008 | |||||||
Real estate and Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 70 | 1,300 | 64 | ||||||||
Income (loss) before income taxes | (5,897) | (4,445) | $ (2,910) | ||||||||
Total assets | $ 33,990 | $ 46,066 | $ 33,990 | $ 46,066 |
Statutory Financial Informati83
Statutory Financial Information and Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Insurance [Abstract] | |||
Capital and surplus of the Insurance Companies | $ 66,100,000 | $ 58,900,000 | |
Statutory net income (loss) of the Insurance Companies | $ 2,800,000 | $ (52,000,000) | $ (7,300,000) |
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, 2017 | 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 | $ 167 | $ 112 |
Current Liquidity and Statuto85
Current Liquidity and Statutory Capital and Surplus - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Current Liquidity And Statutory Capital And Surplus [Line Items] | ||
Long-term debt obligations | $ 70 | |
Statutory capital and surplus balance | $ 66.1 | $ 58.9 |
Ratio of net premiums to statutory capital and surplus | 4.27% | |
Increase in statutory capital and surplus | $ 7.2 | |
Reduction in premiums written | $ 17 | |
Percentage of reduction in premiums written | 6.00% | |
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 86
Selected Quarterly Financial Data (Unaudited) - Selected Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total Revenues | $ 82,054 | $ 85,984 | $ 91,411 | $ 88,069 | $ 87,806 | $ 102,115 | $ 102,754 | $ 96,948 | $ 347,518 | $ 389,623 | $ 331,892 |
(Loss) Income Before Income Taxes | 3,139 | 3,351 | (1,480) | 1,576 | (5,822) | (327) | (30,607) | (8,374) | 6,586 | (45,130) | (2,572) |
Net (Loss) Income | $ (10,429) | $ 1,998 | $ (903) | $ 730 | $ (3,545) | $ (333) | $ (19,899) | $ (5,505) | $ (8,604) | $ (29,282) | $ (1,930) |
Basic and Diluted Net (Loss) Income Per Share | $ (0.26) | $ 0.05 | $ (0.02) | $ 0.02 | $ (0.09) | $ (0.01) | $ (0.48) | $ (0.13) | $ (0.21) | $ (0.71) | $ (0.05) |
Selected Quarterly Financial 87
Selected Quarterly Financial Data (Unaudited) - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Jun. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||
Effect of federal tax law change | $ 12,500 | $ 12,509 | |||
Unfavorable loss development included in income before income taxes | $ 25,800 | $ 220,785 | $ 309,002 | $ 219,031 |
Financial Information of Regi88
Financial Information of Registrant (Parent Company) (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||||
Deferred tax asset | $ 20,549 | $ 35,641 | ||
Other assets | 6,438 | 6,078 | ||
TOTAL ASSETS | 395,859 | 400,074 | ||
Liabilities: | ||||
Debentures payable | 40,348 | 40,302 | ||
Term loan from principal stockholder | 29,805 | 29,779 | ||
Other liabilities | 13,224 | 10,476 | ||
Stockholders' equity | 64,757 | 72,488 | $ 103,670 | $ 106,964 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 395,859 | 400,074 | ||
Parent Company | ||||
ASSETS | ||||
Investment in subsidiaries, at equity in net assets | 119,517 | 112,479 | ||
Cash and cash equivalents | 2,310 | 3,457 | $ 8,095 | $ 15,836 |
Loan to wholly-owned subsidiary | 19,610 | 23,610 | ||
Deferred tax asset | 14,883 | 25,828 | ||
Other assets | 1,671 | 1,655 | ||
TOTAL ASSETS | 157,991 | 167,029 | ||
Liabilities: | ||||
Debentures payable | 40,348 | 40,302 | ||
Term loan from principal stockholder | 29,805 | 29,779 | ||
Other liabilities | 23,081 | 24,460 | ||
Stockholders' equity | 64,757 | 72,488 | ||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 157,991 | $ 167,029 |
Financial Information of Regi89
Financial Information of Registrant (Parent Company) (Detail 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Operations | |||||||||||
Interest income | $ 4,719 | $ 4,649 | $ 5,024 | ||||||||
Equity in income (loss) of subsidiaries, net of tax | 440 | 427 | 396 | ||||||||
Income (loss) before income taxes | $ 3,139 | $ 3,351 | $ (1,480) | $ 1,576 | $ (5,822) | $ (327) | $ (30,607) | $ (8,374) | 6,586 | (45,130) | (2,572) |
Provision (benefit) for income taxes | 15,190 | (15,848) | (642) | ||||||||
Net loss | $ (10,429) | $ 1,998 | $ (903) | $ 730 | $ (3,545) | $ (333) | $ (19,899) | $ (5,505) | (8,604) | (29,282) | (1,930) |
Parent Company | |||||||||||
Statement of Operations | |||||||||||
Interest income | 2,944 | 2,283 | 1,328 | ||||||||
Equity in income (loss) of subsidiaries, net of tax | 3,390 | (27,428) | (441) | ||||||||
Expenses | (7,180) | (4,508) | (4,238) | ||||||||
Income (loss) before income taxes | (846) | (29,653) | (3,351) | ||||||||
Provision (benefit) for income taxes | 7,758 | (371) | (1,421) | ||||||||
Net loss | $ (8,604) | $ (29,282) | $ (1,930) |
Financial Information of Regi90
Financial Information of Registrant (Parent Company) (Detail 2) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||||||||||
Net loss | $ (10,429,000) | $ 1,998,000 | $ (903,000) | $ 730,000 | $ (3,545,000) | $ (333,000) | $ (19,899,000) | $ (5,505,000) | $ (8,604,000) | $ (29,282,000) | $ (1,930,000) |
Equity in (income) loss of subsidiaries, net of tax | (440,000) | (427,000) | (396,000) | ||||||||
Stock-based compensation | 299,000 | 207,000 | 144,000 | ||||||||
Deferred income taxes | 14,883,000 | (16,176,000) | (917,000) | ||||||||
Other | 155,000 | 108,000 | 261,000 | ||||||||
Net cash provided by (used in) operating activities | 9,001,000 | (13,628,000) | 29,307,000 | ||||||||
Cash flows from investing activities: | |||||||||||
Dividends from subsidiary | 0 | ||||||||||
Net cash (used in) provided by investing activities | (12,281,000) | 16,654,000 | (46,240,000) | ||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from term loan from principal stockholder | 30,000,000 | ||||||||||
Net proceeds from issuance of common stock | 76,000 | 68,000 | 91,000 | ||||||||
Net cash provided by financing activities | 76,000 | 68,000 | 30,091,000 | ||||||||
Parent Company | |||||||||||
Cash flows from operating activities: | |||||||||||
Net loss | (8,604,000) | (29,282,000) | (1,930,000) | ||||||||
Equity in (income) loss of subsidiaries, net of tax | (3,390,000) | 27,428,000 | 441,000 | ||||||||
Stock-based compensation | 299,000 | 207,000 | 144,000 | ||||||||
Deferred income taxes | 10,945,000 | (17,179,000) | (684,000) | ||||||||
Other | 71,000 | 95,000 | (203,000) | ||||||||
Change in assets and liabilities | (1,394,000) | 17,300,000 | 2,385,000 | ||||||||
Net cash provided by (used in) operating activities | (2,073,000) | (1,431,000) | 153,000 | ||||||||
Cash flows from investing activities: | |||||||||||
Dividends from subsidiary | 850,000 | 1,225,000 | 2,025,000 | ||||||||
Loan to wholly-owned subsidiary | 4,000,000 | 6,400,000 | (30,010,000) | ||||||||
Investments in subsidiaries | (4,000,000) | (10,900,000) | (10,000,000) | ||||||||
Net cash (used in) provided by investing activities | 850,000 | (3,275,000) | (37,985,000) | ||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from term loan from principal stockholder | 30,000,000 | ||||||||||
Net proceeds from issuance of common stock | 76,000 | 68,000 | 91,000 | ||||||||
Net cash provided by financing activities | 76,000 | 68,000 | 30,091,000 | ||||||||
Net change in cash and cash equivalents | (1,147,000) | (4,638,000) | (7,741,000) | ||||||||
Cash and cash equivalents, beginning of period | $ 3,457,000 | $ 8,095,000 | 3,457,000 | 8,095,000 | 15,836,000 | ||||||
Cash and cash equivalents, end of period | $ 2,310,000 | $ 3,457,000 | $ 2,310,000 | $ 3,457,000 | $ 8,095,000 |