Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 15, 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 | AMSF | ||
Entity Registrant Name | AMERISAFE INC | ||
Entity Central Index Key | 1,018,979 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 19,245,915 | ||
Entity Public Float | $ 1,085.7 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Investments: | ||
Fixed maturity securities—held-to-maturity, at amortized cost (fair value $639,309 and $568,931 in 2017 and 2016, respectively) | $ 629,668 | $ 562,434 |
Fixed maturity securities—available-for-sale, at fair value (cost $461,236 and $479,871 in 2017 and 2016, respectively) | 465,594 | 479,097 |
Equity securities—available-for-sale, at fair value (cost $8,503 and $0 in 2017 and 2016, respectively) | 9,282 | 33 |
Short-term investments | 25,770 | 29,580 |
Other investments | 13,330 | |
Total investments | 1,130,314 | 1,084,474 |
Cash and cash equivalents | 55,559 | 58,936 |
Amounts recoverable from reinsurers | 90,133 | 83,666 |
Premiums receivable, net of allowance | 174,234 | 183,005 |
Deferred income taxes | 19,262 | 33,811 |
Accrued interest receivable | 10,635 | 11,360 |
Property and equipment, net | 6,128 | 6,636 |
Deferred policy acquisition costs | 20,251 | 19,300 |
Federal income tax recoverable | 1,761 | |
Other assets | 9,959 | 37,668 |
Total assets | 1,518,236 | 1,518,856 |
Liabilities: | ||
Reserves for loss and loss adjustment expenses | 771,845 | 742,776 |
Unearned premiums | 157,270 | 162,028 |
Reinsurance premiums payable | 28 | |
Amounts held for others | 36,908 | 31,974 |
Policyholder deposits | 48,364 | 49,130 |
Insurance-related assessments | 28,246 | 31,742 |
Federal income tax payable | 4,017 | |
Accounts payable and other liabilities | 37,076 | 31,510 |
Payable for investments purchased | 13,104 | 9,501 |
Total liabilities | 1,092,813 | 1,062,706 |
Shareholders’ equity: | ||
Common stock: voting—$0.01 par value authorized shares—50,000,000 in 2017 and 2016; 20,504,165 and 20,488,385 shares issued and 19,245,915 and 19,230,135 shares outstanding in 2017 and 2016, respectively | 204 | 204 |
Additional paid-in capital | 210,081 | 208,390 |
Treasury stock at cost (1,258,250 shares in 2017 and 2016) | (22,370) | (22,370) |
Accumulated earnings | 233,896 | 270,418 |
Accumulated other comprehensive income (loss), net | 3,612 | (492) |
Total shareholders’ equity | 425,423 | 456,150 |
Total liabilities and shareholders’ equity | $ 1,518,236 | $ 1,518,856 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | ||
Fixed maturity securities, fair value | $ 639,309 | $ 568,931 |
Fixed maturity securities, cost | 461,236 | 479,871 |
Equity securities, cost | $ 8,503 | $ 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 20,504,165 | 20,488,385 |
Common stock, shares outstanding | 19,245,915 | 19,230,135 |
Treasury stock, shares | 1,258,250 | 1,258,250 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues | |||
Net premiums earned | $ 346,156 | $ 368,704 | $ 375,894 |
Net investment income | 29,281 | 28,106 | 27,902 |
Net realized losses on investments | (647) | (494) | (2,494) |
Loss on disposal of assets | (2) | (1) | (664) |
Fee and other income | 420 | 347 | 316 |
Total revenues | 375,208 | 396,662 | 400,954 |
Expenses | |||
Loss and loss adjustment expenses incurred | 209,324 | 199,031 | 214,573 |
Underwriting and certain other operating costs | 28,333 | 29,470 | 32,162 |
Commissions | 24,812 | 26,243 | 27,509 |
Salaries and benefits | 25,631 | 24,881 | 24,442 |
Policyholder dividends | 4,868 | 4,216 | 1,301 |
Total expenses | 292,968 | 283,841 | 299,987 |
Income before income taxes | 82,240 | 112,821 | 100,967 |
Income tax expense | 36,009 | 34,956 | 30,505 |
Net income | 46,231 | 77,865 | 70,462 |
Net income available to common shareholders | $ 46,231 | $ 77,865 | $ 70,462 |
Earnings per share | |||
Basic | $ 2.41 | $ 4.08 | $ 3.72 |
Diluted | $ 2.40 | $ 4.05 | $ 3.69 |
Shares used in computing earnings per share | |||
Basic | 19,165,489 | 19,105,806 | 18,941,077 |
Diluted | 19,245,866 | 19,203,650 | 19,119,186 |
Extraordinary cash dividends declared per common share | $ 3.50 | $ 3.25 | $ 3 |
Cash dividends declared per common share | $ 0.80 | $ 0.72 | $ 0.60 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - 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 Income And Comprehensive Income [Abstract] | |||||||||||
Net income | $ 649 | $ 16,577 | $ 15,481 | $ 13,524 | $ 19,073 | $ 17,896 | $ 16,639 | $ 24,257 | $ 46,231 | $ 77,865 | $ 70,462 |
Other comprehensive income: | |||||||||||
Unrealized gain (loss) on securities, net of tax | 4,104 | (3,079) | (223) | ||||||||
Comprehensive income | $ 1,228 | $ 17,194 | $ 17,437 | $ 14,476 | $ 11,985 | $ 16,183 | $ 19,568 | $ 27,051 | $ 50,335 | $ 74,786 | $ 70,239 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Treasury Stock [Member] | Accumulated Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Beginning Balance at Dec. 31, 2014 | $ 446,968 | $ 201 | $ 199,138 | $ (22,370) | $ 267,189 | $ 2,810 |
Beginning Balance, Shares at Dec. 31, 2014 | 20,155,936 | |||||
Treasury Stock Beginning Balance, Shares at Dec. 31, 2014 | (1,258,250) | |||||
Comprehensive income: | ||||||
Net income | 70,462 | 70,462 | ||||
Other comprehensive income: | ||||||
Change in unrealized gains loss, net of tax | (223) | (223) | ||||
Comprehensive income | 70,239 | |||||
Common stock issued upon exercise of options | 1,844 | $ 2 | 1,842 | |||
Common stock issued upon exercise of options, Shares | 193,204 | |||||
Restricted common stock issued | 502 | 502 | ||||
Restricted common stock issued, Shares | 39,256 | |||||
Share-based compensation | 1,003 | 1,003 | ||||
Tax benefit from share-based payments | 2,203 | 2,203 | ||||
Dividends to shareholders | (68,778) | (68,778) | ||||
Ending Balance at Dec. 31, 2015 | 453,981 | $ 203 | 204,688 | $ (22,370) | 268,873 | 2,587 |
Ending Balance, Shares at Dec. 31, 2015 | 20,388,396 | |||||
Treasury Stock Ending Balance, Shares at Dec. 31, 2015 | (1,258,250) | |||||
Comprehensive income: | ||||||
Net income | 77,865 | 77,865 | ||||
Other comprehensive income: | ||||||
Change in unrealized gains loss, net of tax | (3,079) | (3,079) | ||||
Comprehensive income | 74,786 | |||||
Common stock issued upon exercise of options | 837 | $ 1 | 836 | |||
Common stock issued upon exercise of options, Shares | 68,879 | |||||
Restricted common stock issued | 603 | 603 | ||||
Restricted common stock issued, Shares | 31,110 | |||||
Share-based compensation | 1,268 | 1,268 | ||||
Tax benefit from share-based payments | 995 | 995 | ||||
Dividends to shareholders | (76,320) | (76,320) | ||||
Ending Balance at Dec. 31, 2016 | $ 456,150 | $ 204 | 208,390 | $ (22,370) | 270,418 | (492) |
Ending Balance, Shares at Dec. 31, 2016 | 20,488,385 | 20,488,385 | ||||
Treasury Stock Ending Balance, Shares at Dec. 31, 2016 | (1,258,250) | (1,258,250) | ||||
Comprehensive income: | ||||||
Net income | $ 46,231 | 46,231 | ||||
Other comprehensive income: | ||||||
Change in unrealized gains loss, net of tax | 4,104 | 4,104 | ||||
Comprehensive income | 50,335 | |||||
Restricted common stock issued | 396 | 396 | ||||
Restricted common stock issued, Shares | 15,780 | |||||
Share-based compensation | 1,295 | 1,295 | ||||
Dividends to shareholders | (82,753) | (82,753) | ||||
Ending Balance at Dec. 31, 2017 | $ 425,423 | $ 204 | $ 210,081 | $ (22,370) | $ 233,896 | $ 3,612 |
Ending Balance, Shares at Dec. 31, 2017 | 20,504,165 | 20,504,165 | ||||
Treasury Stock Ending Balance, Shares at Dec. 31, 2017 | (1,258,250) | (1,258,250) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating activities | |||
Net income | $ 46,231 | $ 77,865 | $ 70,462 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 984 | 1,181 | 1,348 |
Net amortization of investments | 14,015 | 16,247 | 16,424 |
Deferred income taxes | 12,800 | (2,249) | 1,446 |
Net realized losses on investments | 647 | 509 | 2,494 |
Net realized losses on disposal of assets | 2 | 1 | 664 |
Share-based compensation | 2,018 | 1,603 | 1,223 |
Changes in operating assets and liabilities: | |||
Premiums receivable, net | 8,771 | 2,359 | (6,447) |
Accrued interest receivable | 725 | 325 | (48) |
Deferred policy acquisition costs | (951) | 1,112 | (763) |
Amounts held by others | 27,848 | 1,016 | (27,847) |
Other assets | (1,882) | 1,631 | (1,042) |
Reserves for loss and loss adjustment expenses | 29,069 | 24,743 | 30,431 |
Unearned premiums | (4,758) | (5,955) | (593) |
Reinsurance balances | (6,495) | 7,285 | (5,878) |
Amounts held for others and policyholder deposits | 4,168 | (17,066) | 6,621 |
Accounts payable and other liabilities | (2,382) | 3,605 | 4,364 |
Net cash provided by operating activities | 130,810 | 114,212 | 92,859 |
Investing activities | |||
Purchases of investments held-to-maturity | (222,104) | (102,830) | (178,010) |
Purchases of investments available-for-sale | (117,020) | (216,466) | (135,915) |
Purchases of short-term investments | (62,687) | (35,295) | (12,246) |
Proceeds from maturities of investments held-to-maturity | 152,995 | 177,159 | 160,834 |
Proceeds from sales and maturities of investments available-for-sale | 112,180 | 115,552 | 78,637 |
Proceeds from sales and maturities of short-term investments | 72,400 | 13,040 | 37,833 |
Proceeds from redemptions of other investments | 13,172 | ||
Purchases of property and equipment | (478) | (1,638) | (953) |
Net cash used in investing activities | (51,542) | (50,478) | (49,820) |
Financing activities | |||
Proceeds from stock option exercises | 837 | 1,844 | |
Tax benefit from share-based payments | 995 | 2,203 | |
Dividends to shareholders | (82,645) | (76,111) | (68,561) |
Net cash used in financing activities | (82,645) | (74,279) | (64,514) |
Change in cash and cash equivalents | (3,377) | (10,545) | (21,475) |
Cash and cash equivalents at beginning of year | 58,936 | 69,481 | 90,956 |
Cash and cash equivalents at end of year | 55,559 | 58,936 | 69,481 |
Supplemental disclosure of cash flow information | |||
Income taxes paid | $ 28,255 | $ 31,500 | $ 23,851 |
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 Organization AMERISAFE, Inc. is an insurance holding company incorporated in the state of Texas. The accompanying consolidated financial statements include the accounts of AMERISAFE and its subsidiaries: American Interstate Insurance Company (“AIIC”) and its insurance subsidiaries, Silver Oak Casualty, Inc. (“SOCI”) and American Interstate Insurance Company of Texas (“AIICTX”), Amerisafe Risk Services, Inc. (“RISK”) and Amerisafe General Agency, Inc. (“AGAI”). AIIC and SOCI are property and casualty insurance companies organized under the laws of the state of Nebraska. AIICTX is a property and casualty insurance company organized under the laws of the state of Texas. RISK, a wholly owned subsidiary of the Company, is a claims and safety service company currently servicing only affiliated insurance companies. AGAI, a wholly owned subsidiary of the Company, is a general agent for the Company. AGAI sells insurance, which is underwritten by AIIC, SOCI and AIICTX, as well as by nonaffiliated insurance carriers. The assets and operations of AGAI are not significant to that of the Company and its consolidated subsidiaries. The terms “AMERISAFE,” the “Company,” “we,” “us” or “our” refer to AMERISAFE, Inc. and its consolidated subsidiaries, as the context requires. The Company provides workers’ compensation insurance for small to mid-sized employers engaged in hazardous industries, principally construction, trucking, logging and lumber, manufacturing, agriculture, maritime, and oil and gas. Assets and revenues of AIIC and its subsidiaries represent at least 95% of comparable consolidated amounts of the Company for each of 2017, 2016 and 2015. Basis of Presentation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States, or GAAP. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Adopted Accounting Guidance In May 2015, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update No. 2015-07, Fair Value Measurements (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) In May 2015, FASB issued Accounting Standards Update, or ASU, 2015-09, Financial Services – Insurance (Topic 944): Disclosures about Short-Duration Contracts. The guidance requires additional disclosures for short-duration insurance contracts. New disclosures are to include more information about initial claim estimates and subsequent adjustments to those estimates, the methodologies and judgments used to estimate claims, and the timing, frequency, and severity of claims. This standard was effective for us beginning with our 2016 annual financial statement. The guidance requires a change in disclosure only (see Note 9 to our financial statements), and thus has no impact on our financial condition or results of operations. In March 2016, FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The new guidance requires that all tax effects related to share-based payments be made through the income statement at the time of settlement as opposed to recognizing excess tax benefits in additional paid-in capital. It also requires the cash flows resulting from share-based payments to be included as an operating activity. In addition to the changes, the guidance permits reporting entities to elect to estimate forfeitures related to share-based payments or recognize them as they occur. The threshold to qualify for equity classification has also been revised to permit withholding up to the maximum statutory tax rates in the applicable jurisdictions. The adoption of this new guidance in the first quarter of 2017 did not have a material impact on our financial condition and results of operations. Prospective Accounting Guidance On February 15, 2018 the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220). This ASU provides new guidance on reclassification from Other Comprehensive Income (OCI) of tax effects related to recently passed tax reform legislation. The guidance gives entities the option to reclassify to retained earnings tax effects related to items in accumulated other comprehensive income (OCI) deemed to be stranded as a result of tax reform. The guidance is effective for us in the first quarter of 2018 and will be applied retrospectively. The Company’s policy for releasing income tax effects from accumulated OCI will be the individual securities approach for available-for-sale securities. Based on our understanding of the guidance available as of the filing date, we do not expect the adoption of this guidance to have a material impact on our financial condition and results of operations. On December 22, 2017, the SEC issued Staff Accounting Bulletin (SAB) 118 which provides guidance on accounting for tax effects of the Tax Act. The Tax Act required Property and Casualty taxpayers to discount loss reserves based solely on IRS factors and no longer by reference to historical payment patterns. As the IRS has yet to release the 2018 discount factors, we have been unable to reasonably estimate the impact of the change in loss reserve discounting factors and therefore have not adjusted our deferred tax balances at December 31, 2017 for the impact of these changes. As prescribed by SAB 118, we continue to utilize the discount factors based on existing accounting guidance and the provisions of the tax laws that were in effect immediately prior to enactment of the Tax Act. Once the IRS has released the 2018 loss reserve discount factors, we will complete our analysis and include the effect of the difference in the reserve discount factors in the period the analysis is complete or the impact is reasonably estimable. In May 2014, the FASB issued ASU 2014-09 (Topic 606): Revenue from Contract s In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. This guidance requires fair value measurement for equity investments (not including those that result in consolidation of the investee or use the equity method of accounting) and the recognition of changes in fair value to be presented as a component of net income. The guidance also revises the disclosure requirements related to fair value changes of liabilities presented in comprehensive income, eliminates disclosure related to the methods and assumptions underlying fair value for financial instruments measured at amortized cost, and simplifies impairment assessments for equity investments without readily determinable fair values. This standard is effective for us in the first quarter of 2018. Based on the equity investments currently held by the Company, there would not be a material impact on the Company's financial condition and results of operations if the new guidance were to be adopted in the current accounting period. The impact on the Company's results of operations and financial position at the date of adoption will be determined by the equity investments held by the Company and the economic conditions at that time. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). Under current guidance for lessees, leases are only included on the balance sheet if certain criteria, classifying the contract as a capital lease, are met. The new guidance requires a lessee to recognize a lease liability and a right of use asset for all leases extending beyond twelve months. The new guidance is effective for us in the first quarter of 2019. Upon adoption, leases will be recognized and measured at the beginning of the earliest period presented using a modified retrospective approach. Adoption of the guidance is not expected to have a material effect on the Company’s consolidated financial statements as the Company does not have any significant leases. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses. The new guidance replaces the methodology of credit loss impairment, which currently, delays the recognition of credit losses until a probable loss has been incurred. The new guidance requires credit losses for securities measured at amortized cost, to be determined using current expected credit losses estimates. These estimates are to be derived from historical, current and reasonable supporting forecasts, including prepayments and estimates, and will be recorded through a valuation allowance account that will run through the income statement. The same method will be used for available-for-sale securities, but the valuation allowance will be limited to the amount by which the fair value is below amortized cost. The standard is effective for us in the first quarter of 2020. The Company will continue to monitor and evaluate the impact as the implementation date approaches. All other issued but not yet effective accounting and reporting standards as of December 31, 2017 are either not applicable to the Company or are not expected to have a material impact on the Company. Investments The Company has the ability and positive intent to hold certain investments until maturity. Therefore, fixed maturity securities classified as held-to-maturity are recorded at amortized cost. Equity securities and fixed maturity securities classified as available-for-sale are recorded at fair value. Temporary changes in the fair value of these securities are reported in shareholders’ equity as a component of other comprehensive income, net of deferred income taxes. Investment income is recognized as it is earned. The discount or premium on fixed maturity securities is amortized using the “constant yield” method. Anticipated prepayments, where applicable, are considered when determining the amortization of premiums or discounts. Realized investment gains and losses are determined using the specific identification method. The Company regularly reviews the fair value of its investments. Impairment of an investment security results in a reduction of the carrying value of the security and the realization of a loss when the fair value of the security declines below the cost or amortized cost, as applicable, for the security and the impairment is deemed to be other-than-temporary. The Company regularly reviews its investment portfolio to evaluate the existence of other-than-temporary declines in the fair value of investments. The Company considers various factors in determining if a decline in the fair value of an individual security is other-than-temporary, including but not limited to a reduction or interruption in scheduled cash flows, the financial condition of the issuer, how long and by how much the fair value has been below amortized cost, losses due to credit concerns, downgrades and the Company’s intent to sell or ability to hold the security. Other-than-temporary impairment losses on equity securities are recognized in net income and are measured as the difference between cost and fair value. Impairment losses on fixed maturities are recognized in the financial statements depending on the facts and circumstances related to the specific security. If we intend to sell a security or it is more likely than not that we would be required to sell a security before the recovery of its amortized cost, less any current period credit loss, an other-than-temporary impairment would be recognized in net income for the difference between amortized cost and fair value. If we do not expect to recover the amortized cost basis, we do not plan to sell the security and if it is not more likely than not that we would be required to sell a security before the recovery of its amortized cost, less any current period credit loss, the recognition of the other-than-temporary impairment is bifurcated. The credit loss portion would be recognized in net income and the noncredit loss portion in other comprehensive income. Cash and Cash Equivalents Cash equivalents include short-term money market funds and corporate bonds with an original maturity of 90 days or less. Short-Term Investments Short-term investments include municipal securities, corporate bonds and certificates of deposit with an original maturity greater than 90 days but less than one year. Other Investments Other investments consisted of a limited partnership interest that was accounted for under the equity method, valued using the net asset value provided by the general partner of the limited partnership, which approximates the fair value of the interest. The limited partnership’s objective was to generate absolute returns by investing long and short in publicly-traded global securities. The investment in the limited partnership was fully redeemed during 2017. The Company has no unfunded commitments to the limited partnership. Premiums Receivable Premiums receivable consist primarily of premium-related balances due from policyholders. The Company considers premiums receivable as past due based on the payment terms of the underlying policy. The balance is shown net of the allowance for doubtful accounts. Receivables due from insureds are charged off when a determination has been made by management that a specific balance will not be collected. An estimate of amounts that are likely to be charged off is established as an allowance for doubtful accounts as of the balance sheet date. The estimate is primarily comprised of specific balances that are considered probable to be charged off after all collection efforts have ceased, as well as historical trends and an analysis of the aging of the receivables. Property and Equipment The Company’s property and equipment, including certain costs incurred to develop or obtain software for internal use, are stated at cost less accumulated depreciation. Depreciation is calculated primarily by the straight-line method over the estimated useful lives of the respective assets, generally 39 years for buildings and three to seven years for all other fixed assets. Deferred Policy Acquisition Costs The direct costs of successfully acquiring and renewing business are capitalized to the extent recoverable and are amortized over the effective period of the related insurance policies in proportion to premium revenue earned. These capitalized costs consist mainly of sales commissions, premium taxes and other underwriting costs. The Company evaluates deferred policy acquisition costs for recoverability by comparing the unearned premiums to the estimated total expected claim costs and related expenses, offset by anticipated investment income. The Company would reduce the deferred costs if the unearned premiums were less than expected claims and expenses after considering investment income, and report any adjustments in amortization of deferred policy acquisition costs. There were no adjustments necessary in 2017, 2016 or 2015. Reserves for Loss and Loss Adjustment Expenses Reserves for loss and loss adjustment expenses represent the estimated ultimate cost of all reported and unreported losses incurred through December 31. The Company does not discount loss and loss adjustment expense reserves. The reserves for loss and loss adjustment expenses are estimated using individual case-basis valuations, statistical analyses and estimates based upon experience for unreported claims and their associated loss and loss adjustment expenses. Such estimates may be more or less than the amounts ultimately paid when the claims are settled. The estimates are subject to the effects of trends in loss severity and frequency. Although considerable variability is inherent in these estimates, management believes that the reserves for loss and loss adjustment expenses are adequate. The estimates are continually reviewed and adjusted as necessary as experience develops or new information becomes known. Any such adjustments are included in income from current operations. Subrogation recoverables, as well as deductible recoverables from policyholders, are estimated using individual case-basis valuations and aggregate estimates. Deductibles that are recoverable from policyholders and other recoverables from state funds decrease the liability for loss and loss adjustment expenses. The Company funds its obligations under certain settled claims where the payment pattern and ultimate cost are fixed and determinable on an individual claim basis through the purchase of annuities. These annuities are purchased from unaffiliated carriers and name the claimant as payee. The cost of purchasing the annuity is recorded as paid loss and loss adjustment expenses. To the extent the annuity funds estimated future claims, reserves for loss and loss adjustment expense are reduced. Premium Revenue Premiums on workers’ compensation insurance are based on actual payroll costs or production during the policy term and are normally billed monthly in arrears or annually. However, the Company generally requires a deposit at the inception of a policy. Premium revenue is earned on a pro rata basis over periods covered by the policies. The reserve for unearned premiums on these policies is computed on a daily pro rata basis. The Company estimates the annual premiums to be paid by its policyholders when the Company issues the policies and records those amounts on the balance sheet as premiums receivable. The Company conducts premium audits on all of its voluntary business policyholders annually, upon the expiration of each policy, including when the policy is renewed. The purpose of these audits is to verify that policyholders have accurately reported their payroll expenses and employee job classifications, and therefore have paid the Company the premium required under the terms of the policies. The difference between the estimated premium and the ultimate premium is referred to as “earned but unbilled” premium, or EBUB premium. EBUB premium can be higher or lower than the estimated premium. EBUB premium is subject to significant variability and can either increase or decrease earned premium based upon several factors, including changes in premium growth, industry mix and economic conditions. Due to the timing of audits and other adjustments, ultimate premium earned is generally not determined for several months after the expiration of the policy. The Company estimates EBUB premiums on a quarterly basis using historical data and applying various assumptions based on the current market and economic conditions, and records an adjustment to premium, related losses, and expenses as warranted. Reinsurance Reinsurance premiums, losses and allocated loss adjustment expenses are accounted for on a basis consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Amounts recoverable from reinsurers include balances currently owed to the Company for losses and allocated loss adjustment expenses that have been paid to policyholders, amounts that are currently reserved for and will be recoverable once the related expense has been paid and experience-rated commissions recoverable upon commutation. Upon management’s determination that an amount due from a reinsurer is uncollectible due to the reinsurer’s insolvency or other matters, the amount is written off. Ceding commissions are earned from certain reinsurance companies and are intended to reimburse the Company for policy acquisition costs related to those premiums ceded to the reinsurers. Ceding commission income is recognized over the effective period of the related insurance policies in proportion to premium revenue earned and is reflected as a reduction in underwriting and certain other operating costs. Experience-rated commissions are earned from certain reinsurance companies based on the financial results of the applicable risks ceded to the reinsurers. These commission revenues on reinsurance contracts are recognized during the related reinsurance treaty period and are based on the same assumptions used for recording loss and allocated loss adjustment expenses. These commissions are reflected as a reduction in underwriting and certain other operating costs and are adjusted as necessary as experience develops or new information becomes known. Any such adjustments are included in income from current operations. Experience-rated commissions increased underwriting and certain other operating costs by $0.2 million in 2017 compared to no impact in 2016 and an increase of $0.3 million in 2015. In December 2016, the Company commuted reinsurance agreements with Hannover Reinsurance Limited (Ireland) (“Hannover”) and Tokio Millennium Re Limited (“Tokio”) covering portions of accident years 2011 through 2013. The Company received cash of $0.2 million and an additional $25.4 million payment effectuated solely through offset against the balance of the funds withheld account under the reinsurance agreements in exchange for releasing Hannover and Tokio from their reinsurance obligations under the commuted agreements. Both Hannover and Tokio remain obligated to the subsidiaries of the Company under other reinsurance agreements. As a result of the commutation, the effect on the Company’s net income in the year ended December 31, 2016 was immaterial. Fee and Other Income The Company recognizes income related to commissions earned by AGAI as the related services are performed. Advertising All advertising expenditures incurred by the Company are charged to expense in the period to which they relate and are included in underwriting and certain other operating costs in the consolidated statements of income. Total advertising expenses incurred were $0.5 million in 2017 and $0.7 million in 2016 and 2015. Income Taxes The Company accounts for income taxes using the liability method. The provision for income taxes has two components, amounts currently payable or receivable and deferred amounts. Deferred income tax assets and liabilities are recognized for the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred income tax assets and liabilities are measured using 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 income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company considers deferred tax assets to be recoverable if it is probable that the related tax losses can be offset by future taxable income. The Company includes reversal of existing temporary differences, tax planning strategies available and future operating income in this assessment. To the extent the deferred tax assets exceed the amount expected to be recovered in future years, the Company records a valuation allowance for the amount determined unrecoverable. Insurance-Related Assessments Insurance-related assessments are accrued in the period in which they have been incurred. The Company is subject to a variety of assessments related to insurance commerce, including those by state guaranty funds and workers’ compensation second-injury funds. State guaranty fund assessments are used by state insurance oversight agencies to cover losses of policyholders of insolvent or rehabilitated insurance companies and for the operating expenses of such agencies. Assessments based on premiums are generally paid one year after the calendar year in which the premium is written, while assessments based on losses are generally paid within one year of the calendar year in which the loss is paid. Policyholder Dividends The Company writes certain policies for which the policyholder may participate in favorable claims experience through a dividend. An estimated provision for workers’ compensation policyholders’ dividends is accrued as the related premiums are earned. Dividends do not become a fixed liability unless and until declared by the respective Boards of Directors of AMERISAFE’s insurance subsidiaries. The dividend to which a policyholder may be entitled is set forth in the policy and is related to the amount of losses sustained under the policy. Dividends are calculated after the policy expiration. The Company is able to estimate the policyholder dividend liability because the Company has information regarding the underlying loss experience of the policies written with dividend provisions and can estimate future dividend payments from the policy terms. Earnings Per Share The Company computes earnings per share (EPS) in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 260, Earnings Per Share. Basic EPS is calculated by dividing income available to common shareholders by the weighted-average number of common shares outstanding during the period. The diluted EPS calculation includes potential common shares assumed issued under the treasury stock method, which reflects the potential dilution that would occur if any outstanding options or warrants were exercised or restricted stock becomes vested. Share-Based Compensation The Company recognizes the impact of its share-based compensation in accordance with FASB ASC Topic 718, Compensation-Stock Compensation. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2017 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | 2. Investments Short-term investments held at December 31, 2017 include $ 25.8 million of U.S. Treasury securities and obligation of U.S. government agencies. Short-term investments held at December 31, 2016 include $21.9 million of U.S. Treasury securities and obligations of U.S. government agencies, $4.9 million of states and political subdivisions and $2.8 million of corporate bonds.. AMERISAFE redeemed an investment in a limited partnership hedge fund accounted for under the equity method in 2017. The gross unrealized gains and losses on, and the amortized cost and fair value of, those investments classified as held-to-maturity at December 31, 2017 are summarized as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) States and political subdivisions $ 460,428 $ 9,628 $ (955 ) $ 469,101 Corporate bonds 100,024 190 (167 ) 100,047 Commercial mortgage-backed securities — — — — U.S. agency-based mortgage-backed securities 10,260 625 (40 ) 10,845 U.S. Treasury securities and obligations of U.S. government agencies 57,657 548 (198 ) 58,007 Asset-backed securities 1,299 25 (15 ) 1,309 Totals $ 629,668 $ 11,016 $ (1,375 ) $ 639,309 The gross unrealized gains and losses on, and the cost or amortized cost and fair value of, those investments classified as available-for-sale at December 31, 2017 are summarized as follows: Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Fixed maturity: States and political subdivisions $ 244,898 $ 6,819 $ (577 ) $ 251,140 Corporate bonds 130,210 224 (212 ) 130,222 U.S. agency-based mortgage-backed securities 18,813 — (799 ) 18,014 U.S. Treasury securities and obligations of U.S. government agencies 67,315 29 (1,126 ) 66,218 Total fixed maturity 461,236 7,072 (2,714 ) 465,594 Equity securities 8,503 779 — 9,282 Other investments — — — — Totals $ 469,739 $ 7,851 $ (2,714 ) $ 474,876 The gross unrealized gains and losses on, and the amortized cost and fair value of, those investments classified as held-to-maturity at December 31, 2016 are summarized as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) States and political subdivisions $ 394,875 $ 7,622 $ (3,014 ) $ 399,483 Corporate bonds 143,858 423 (265 ) 144,016 Commercial mortgage-backed securities 70 — — 70 U.S. agency-based mortgage-backed securities 9,967 948 — 10,915 U.S. Treasury securities and obligations of U.S. government agencies 11,737 746 (67 ) 12,416 Asset-backed securities 1,927 163 (59 ) 2,031 Totals $ 562,434 $ 9,902 $ (3,405 ) $ 568,931 The gross unrealized gains and losses on, and the cost or amortized cost and fair value of, those investments classified as available-for-sale at December 31, 2016 are summarized as follows: Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Fixed maturity: States and political subdivisions $ 231,168 $ 4,340 $ (3,215 ) $ 232,293 Corporate bonds 182,350 436 (271 ) 182,515 U.S. agency-based mortgage-backed securities 10,428 17 (1,103 ) 9,342 U.S. Treasury securities and obligations of U.S. government agencies 55,925 — (978 ) 54,947 Total fixed maturity 479,871 4,793 (5,567 ) 479,097 Equity securities — 33 — 33 Other investments 10,000 3,330 — 13,330 Totals $ 489,871 $ 8,156 $ (5,567 ) $ 492,460 A summary of the amortized cost and fair value of investments in fixed maturity securities, classified as held-to-maturity at December 31, 2017, by contractual maturity, is as follows: Amortized Cost Fair Value (in thousands) Maturity: Within one year $ 88,215 $ 88,556 After one year through five years 271,580 273,810 After five years through ten years 98,748 100,745 After ten years 159,566 164,044 U.S. agency-based mortgage-backed securities 10,260 10,845 Asset-backed securities 1,299 1,309 Totals $ 629,668 $ 639,309 A summary of the amortized cost and fair value of investments in fixed maturity securities, classified as available-for-sale at December 31, 2017, by contractual maturity, is as follows: Amortized Cost Fair Value (in thousands) Maturity: Within one year $ 76,194 $ 76,211 After one year through five years 153,483 153,092 After five years through ten years 43,442 43,606 After ten years 169,304 174,671 U.S. agency-based mortgage-backed securities 18,813 18,014 Totals $ 461,236 $ 465,594 Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations with or without call or prepayment penalties. At December 31, 2017, there were $18.7 million of held-to-maturity investments and $2.4 million of available-for-sale investments on deposit with regulatory agencies of states in which the Company does business. A summary of the Company’s realized gains and losses on sales, calls or redemptions of investments for 2017, 2016 and 2015 is as follows: Fixed Maturity Securities Available for Sale Equity Securities Other Total (in thousands) Year ended December 31, 2017 Proceeds from sales $ 14,591 $ 1 $ 13,172 $ 27,764 Gross realized investment gains $ 485 $ 1 $ — $ 486 Gross realized investment (losses) (5 ) — — (5 ) Net realized investment gains 480 1 — 481 Other, including losses on calls and redemptions (520 ) — (608 ) (1,128 ) Net realized gains (losses) on investments $ (40 ) $ 1 $ (608 ) $ (647 ) Year ended December 31, 2016 Proceeds from sales $ 54,730 $ — $ 4,609 $ 59,339 Gross realized investment gains $ 823 $ — $ 68 $ 891 Gross realized investment (losses) (1,728 ) — — (1,728 ) Net realized investment gains (losses) (905 ) — 68 (837 ) Other, including gains on calls and redemptions 274 — 69 343 Net realized gains (losses) on investments $ (631 ) $ — $ 137 $ (494 ) Year ended December 31, 2015 Proceeds from sales $ 4,432 $ — $ — $ 4,432 Gross realized investment gains $ 177 $ — $ — $ 177 Gross realized investment (losses) (162 ) — — (162 ) Net realized investment gains 15 — — 15 Impairments (2,653 ) — — (2,653 ) Other, including gains on calls and redemptions 102 — 42 144 Net realized gains (losses) on investments $ (2,536 ) $ — $ 42 $ (2,494 ) In 2016, the Company sold $3.0 million in bonds that were classified as held-to-maturity. In February, Moody’s downgraded the bonds to B2 from B1 citing increasing liquidity concerns and also placed the bonds on negative outlook indicating the rating could be downgraded further. Given the evidence of significant credit deterioration, the Company elected to sell the bonds for $3.0 million, recognizing a $0.1 million realized gain. Major categories of the Company’s net investment income are summarized as follows: Year Ended December 31, 2017 2016 2015 (in thousands) Gross investment income: Fixed maturity securities $ 28,961 $ 27,837 $ 28,498 Equity securities 201 — — Short-term investments and cash and cash equivalents 1,117 348 149 Other investments 104 1,568 763 Total gross investment income 30,383 29,753 29,410 Investment expenses (1,102 ) (1,647 ) (1,508 ) Net investment income $ 29,281 $ 28,106 $ 27,902 The following table summarizes the fair value and gross unrealized losses on securities, aggregated by major investment category and length of time that the individual securities have been in a continuous unrealized loss position: Less Than 12 Months 12 Months or Greater Total Fair Value of Investments with Unrealized Losses Gross Unrealized Losses Fair Value of Investments with Unrealized Losses Gross Unrealized Losses Fair Value of Investments with Unrealized Losses Gross Unrealized Losses (in thousands) December 31, 2017 Held-to-Maturity Fixed maturity securities: States and political subdivisions $ 110,698 $ 654 $ 19,895 $ 301 $ 130,593 $ 955 Corporate bonds 56,425 156 4,121 11 60,546 167 U.S. agency-based mortgage-backed securities 2,798 40 — — 2,798 40 U.S. Treasury securities and obligations of U.S. government agencies 48,153 122 3,948 76 52,101 198 Asset-backed securities — — 967 15 967 15 Total held-to-maturity securities 218,074 972 28,931 403 247,005 1,375 Available-for Sale Fixed maturity securities: States and political subdivisions $ 23,365 $ 86 $ 19,153 $ 491 $ 42,518 $ 577 Corporate bonds 82,795 171 5,888 41 88,683 212 U.S. agency-based mortgage-backed securities 14,686 59 3,328 740 18,014 799 U.S. Treasury securities and obligations of U.S. government agencies 14,730 204 47,716 922 62,446 1,126 Total available-for-sale securities 135,576 520 76,085 2,194 211,661 2,714 Total $ 353,650 $ 1,492 $ 105,016 $ 2,597 $ 458,666 $ 4,089 December 31, 2016 Held-to-Maturity Fixed maturity securities: States and political subdivisions $ 157,507 $ 3,014 $ — $ — $ 157,507 $ 3,014 Corporate bonds 44,654 202 6,292 63 50,946 265 U.S. Treasury securities and obligations of U.S. government agencies 3,968 67 — — 3,968 67 Asset-backed securities — — 1,173 59 1,173 59 Total held-to-maturity securities 206,129 3,283 7,465 122 213,594 3,405 Available-for Sale Fixed maturity securities: States and political subdivisions $ 73,505 $ 2,976 $ 4,523 $ 239 $ 78,028 $ 3,215 Corporate bonds 41,419 111 7,922 160 49,341 271 U.S. agency-based mortgage-backed securities 3,702 48 3,607 1,055 7,309 1,103 U.S. Treasury securities and obligations of U.S. government agencies 54,947 978 — — 54,947 978 Total available-for-sale securities 173,573 4,113 16,052 1,454 189,625 5,567 Total $ 379,702 $ 7,396 $ 23,517 $ 1,576 $ 403,219 $ 8,972 At December 31, 2017, the Company held 299 individual fixed maturity securities that were in an unrealized loss position, of which 61 were in a continuous unrealized loss position for longer than 12 months. The Company regularly reviews its investment portfolio to evaluate the necessity of recording impairment losses for other-than-temporary declines in the fair value of our investments. The Company considers various factors in determining if a decline in the fair value of an individual security is other-than-temporary. The key factors considered are: • any reduction or elimination of preferred dividends, or nonpayment of scheduled principal or interest payments; • the financial condition and near-term prospects of the issuer of the applicable security, including any specific events that may affect its operations or earnings; • how long and by how much the fair value of the security has been below its cost or amortized cost; • any downgrades of the security by a rating agency; • our intent not to sell the security for a sufficient time period for it to recover its value; • the likelihood of being forced to sell the security before the recovery of its value; and • an evaluation as to whether there are any credit losses on debt securities. We reviewed all securities with unrealized losses in accordance with the impairment policy described above. The Company determined that the unrealized losses in the fixed maturity securities portfolio related primarily to changes in market interest rates since the date of purchase, current conditions in the capital markets and the impact of those conditions on market liquidity and prices generally. We expect to recover the carrying value of these securities as it is not more likely than not that we will be required to sell the securities before the recovery of its amortized cost basis. In 2017, there were no impairment losses recognized for other-than-temporary declines in the fair value of our investments. |
Premiums Receivable
Premiums Receivable | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [Abstract] | |
Premiums Receivable | 3. Premiums Receivable Premiums receivable consist primarily of premium-related balances due from policyholders. The balance is shown net of the allowance for doubtful accounts. The components of premiums receivable are shown below: December 31, 2017 2016 (in thousands) Premiums receivable $ 179,460 $ 188,217 Allowance for doubtful accounts (5,226 ) (5,212 ) Premiums receivable, net $ 174,234 $ 183,005 The following summarizes the activity in the allowance for doubtful accounts: December 31, 2017 2016 2015 (in thousands) Balance, beginning of year $ 5,212 $ 4,852 $ 5,211 Provision for bad debts 1,394 1,646 806 Write-offs (1,380 ) (1,286 ) (1,165 ) Balance, end of year $ 5,226 $ 5,212 $ 4,852 Included in premiums receivable at December 31, 2017, 2016 and 2015 is the Company’s estimate for EBUB premium of $6.3 million, $7.7 million and $7.6 million, respectively. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [Abstract] | |
Deferred Policy Acquisition Costs | 4. Deferred Policy Acquisition Costs Deferred policy acquisition costs represent those costs that are incremental and directly related to the successful acquisition of new or the renewal of existing insurance contracts. We defer incremental costs that result directly from, and are essential to, the acquisition or renewal of an insurance contract. We also defer a portion of employee total compensation costs directly related to time spent performing specific acquisition or renewal activities. These costs are deferred and expensed over the life of the related policies. Major categories of the Company’s deferred policy acquisition costs are summarized as follows: December 31, 2017 2016 (in thousands) Agents’ commissions $ 15,238 $ 15,286 Premium taxes 3,395 2,578 Deferred underwriting expenses 1,618 1,436 Total deferred policy acquisition costs $ 20,251 $ 19,300 The following summarizes the activity in the deferred policy acquisition costs: Year Ended December 31, 2017 2016 2015 (in thousands) Balance, beginning of year $ 19,300 $ 20,412 $ 19,649 Policy acquisition costs deferred 43,960 43,209 45,604 Amortization expense during the year (43,009 ) (44,321 ) (44,841 ) Balance, end of year $ 20,251 $ 19,300 $ 20,412 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 5. Property and Equipment Property and equipment consist of the following: December 31, 2017 2016 (in thousands) Land and office building $ 7,713 $ 7,515 Furniture and equipment 6,578 6,509 Software 6,856 6,739 Automobiles 74 74 21,221 20,837 Accumulated depreciation (15,093 ) (14,201 ) Property and equipment, net $ 6,128 $ 6,636 Furniture and equipment included property held under capital leases of $0.2 million at December 31, 2017. Accumulated depreciation includes $58,000 that is related to these properties at December 31, 2017. Furniture and equipment included property held under capital leases of $0.2 million at December 31, 2016. Accumulated depreciation includes $80,000 that is related to these properties at December 31, 2016. Furniture and equipment included property held under capital leases of $0.1 million at December 31, 2015. Accumulated depreciation includes $97,000 that is related to these properties at December 31, 2015. The capital lease obligations related to these properties are included in accounts payable and other liabilities. Future minimum lease payments related to the capital lease obligations are detailed below (in thousands): 2018 $ 47 2019 47 2020 48 2021 4 Present value of net minimum lease payments $ 146 The Company made a partial disposition election under tax regulations to write-off capitalized amounts for book and tax purposes of certain fixed assets and deductible repairs in the amount of $0.6 million in 2015. This amount is included in “Loss on disposal of assets.” |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [Abstract] | |
Reinsurance | 6. Reinsurance The Company cedes certain premiums and losses to various reinsurers under quota share and excess-of-loss treaties. These reinsurance arrangements provide for greater diversification of business, allow management to control exposure to potential losses arising from large risks, and provide additional capacity for growth. Ceded reinsurance contracts do not relieve the Company from its obligations to policyholders. The Company remains liable to its policyholders for the portion reinsured to the extent that any reinsurer does not meet the obligations assumed under the reinsurance agreements. To minimize its exposure to significant losses from reinsurer insolvencies, the Company evaluates the financial condition of its reinsurers and monitors concentrations of credit risk arising from similar geographic regions, activities, or economic characteristics of the reinsurers on a continual basis. The effect of reinsurance on premiums written and earned in 2017, 2016 and 2015 was as follows: 2017 Premiums 2016 Premiums 2015 Premiums Written Earned Written Earned Written Earned (in thousands) Gross $ 350,267 $ 355,025 $ 373,055 $ 379,011 $ 386,529 $ 387,122 Ceded (8,869 ) (8,869 ) (10,307 ) (10,307 ) (11,228 ) (11,228 ) Net premiums $ 341,398 $ 346,156 $ 362,748 $ 368,704 $ 375,301 $ 375,894 The amounts recoverable from reinsurers consist of the following: December 31, 2017 2016 (in thousands) Unpaid losses recoverable: Case basis $ 66,061 $ 49,361 Incurred but not reported 18,828 28,895 Paid losses recoverable 554 485 Experience-rated commissions recoverable 4,690 4,925 Total $ 90,133 $ 83,666 Amounts recoverable from reinsurers consists of ceded case reserves, ceded incurred but not reported (“IBNR”) reserves, paid losses recoverable and experience-rated commissions recoverable. Ceded case and ceded IBNR reserves represent the portion of gross loss and loss adjustment expense liabilities that are recoverable under reinsurance agreements, but are not yet due from reinsurers. Paid losses recoverable are receivables currently due from reinsurers for ceded paid losses. The Company considers paid losses recoverable outstanding for more than 90 days to be past due. At December 31, 2017, there were no paid losses recoverable past due. Experience-rated commissions recoverable represents earned commission from certain reinsurance companies based on the financial results of the applicable risks ceded to the reinsurers, and these amounts declined during 2016 as a result of the December 2016 commutation of the 2011 through 2013 reinsurance agreements with Hannover and Tokio. The Company received reinsurance recoveries of $1.6 million in 2017, $0.5 The Company generally secures large reinsurance recoverable balances with various forms of collateral, including funds withheld accounts, irrevocable letters of credit and secured trusts. At December 31, 2017, reinsurance recoverables from reinsurers that exceeded 1.5% of statutory surplus of the Company’s insurance subsidiaries are shown below (in thousands). Reinsurer A.M. Best Rating Amounts Recoverable as of December 31, 2017 (in thousands) Hannover Reinsurance Limited (Ireland) (1) A+ $ 36,905 Odyssey America Reinsurance Corporation A 12,464 Minnesota Workers’ Compensation Reinsurance Association (1) NR 7,761 Allianz Risk Transfer AG (Bermuda) (1) A+ 7,551 Clearwater Insurance (2) NR 5,755 Other reinsurers 19,697 Total amounts recoverable from reinsurers 90,133 Funds withheld and letters of credit related to the above recoverables (47,719 ) Total unsecured amounts recoverable from reinsurers $ 42,414 (1) Current participant in our 2018 reinsurance program. (2) Subsidiary of Fairfax Financial is no longer rated by A.M. Best. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes The Company’s deferred income tax assets and liabilities are as follows: December 31, 2017 2016 (in thousands) Deferred income tax assets: Discounting of net unpaid loss and loss adjustment expenses $ 8,830 $ 16,035 Unearned premiums 8,466 14,483 Accrued expenses and other 2,359 3,640 State income tax 782 617 Accrued policyholder dividends 1,918 2,024 Impaired securities 42 70 Capital loss carryforward 190 15 Accrued insurance-related assessments 3,256 5,323 Net unrealized loss on securities — 265 Total deferred tax assets 25,843 42,472 Deferred income tax liabilities: Deferred policy acquisition costs (5,317 ) (8,492 ) Callable bond amortization (8 ) (10 ) Unrealized gain on securities available-for-sale (1,070 ) — Property and equipment and other (3 ) 204 Salvage and subrogation (183 ) (363 ) Total deferred income tax liabilities (6,581 ) (8,661 ) Net deferred income taxes $ 19,262 $ 33,811 The components of consolidated income tax expense (benefit) are as follows: Year Ended December 31, 2017 2016 2015 (in thousands) Current: Federal $ 22,477 $ 35,602 $ 28,047 State 732 1,603 1,012 23,209 37,205 29,059 Deferred: Federal 12,965 (2,120 ) 1,343 State (165 ) (129 ) 103 12,800 (2,249 ) 1,446 Total $ 36,009 $ 34,956 $ 30,505 During 2017, 2016 and 2015, there was no valuation allowance on the Company’s deferred income tax assets and liabilities. Income tax expense from operations is different from the amount computed by applying the U.S. federal income tax statutory rate of 35% to income before income taxes as follows: Year Ended December 31, 2017 2016 2015 (in thousands) Income tax computed at federal statutory tax rate $ 28,784 $ 39,487 $ 35,338 Tax-exempt interest, net (5,707 ) (5,370 ) (5,630 ) State income tax 311 913 762 Dividends received deduction (48 ) (125 ) (19 ) Revaluation of net deferred income tax assets 12,620 — — Other 49 51 54 $ 36,009 $ 34,956 $ 30,505 On December 22, 2017, the Tax Act was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017. As a result, we have recorded $12.6 million as additional income tax expense related to our net deferred tax assets revalued at the new lower rate of 21% in the fourth quarter of 2017, the period in which the legislation was enacted. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. There were no uncertain tax positions as of December 31, 2017, 2016 and 2015. Tax years 2014 through 2017 are subject to examination by the federal and state taxing authorities. |
Line of Credit
Line of Credit | 12 Months Ended |
Dec. 31, 2017 | |
Text Block [Abstract] | |
Line of Credit | 8. Line of Credit The Company has an agreement providing for a line of credit in the maximum amount of $20.0 million with Frost Bank. The agreement expires in December 2019. Under the agreement, advances may be made either in the form of loans or letters of credit. Borrowings under the agreement accrue at interest rates based upon prime rate or LIBOR. Under the agreement, the Company pays a fee of 0.25% on the unused portion of the loan in arrears quarterly, or a fee of $50,000 annually, assuming the line of credit is not used during the calendar year. The line of credit is unsecured. No borrowings or letters of credit were outstanding under the line of credit arrangement at December 31, 2017 or 2016. |
Loss and Loss Adjustment Expens
Loss and Loss Adjustment Expenses | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [Abstract] | |
Loss and Loss Adjustment Expenses | 9. Loss and Loss Adjustment Expenses The following development tables provide the incurred and paid claims and allocated claim adjustment expenses, net of reinsurance, for workers’ compensation and general liability for accident years 2008 through 2017. The incurred but not reported (“IBNR”) claims and claims frequency is included for each accident year presented. Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance As of For the Years Ended December 31, December 31, 2017 (Dollars in thousands) Total IBNR Plus Expected Cumulative Development Number of Accident Unaudited (1) on Reported Claims Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Claims Reported 2008 $ 196,923 $ 200,371 $ 195,619 $ 190,905 $ 187,695 $ 184,547 $ 182,846 $ 183,608 $ 182,901 $ 182,646 $ 2,649 6,487 2009 - 185,359 188,746 188,462 187,943 184,006 182,274 177,795 176,586 177,015 3,345 5,371 2010 - - 179,156 202,479 208,035 205,769 198,861 193,029 191,000 189,403 5,805 5,971 2011 - - - 196,384 199,522 199,163 198,213 195,262 192,988 191,126 6,968 6,041 2012 - - - - 222,549 222,075 212,738 193,515 184,460 182,859 7,840 5,746 2013 - - - - - 241,810 241,811 233,656 220,457 214,701 10,501 5,762 2014 - - - - - - 268,846 268,846 249,097 235,058 13,503 5,827 2015 - - - - - - - 262,573 262,573 252,514 22,863 5,506 2016 - - - - - - - - 250,491 250,491 17,066 5,346 2017 - - - - - - - - - 244,094 7,964 4,919 Total $ 2,119,907 $ 98,504 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, (Dollars in thousands) Accident Unaudited (1) Claim Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Frequency (2) 2008 $ 47,685 $ 103,057 $ 132,515 $ 147,377 $ 157,388 $ 163,933 $ 166,814 $ 170,347 $ 171,496 $ 173,138 20.98 2009 - 42,332 96,173 123,946 142,667 150,925 155,365 158,214 159,345 160,580 19.82 2010 - - 47,520 108,714 141,029 156,974 165,834 169,565 172,426 175,019 24.94 2011 - - - 53,329 111,029 140,831 153,968 161,639 165,967 167,757 22.81 2012 - - - - 50,579 107,467 133,658 149,161 154,553 157,206 18.72 2013 - - - - - 51,396 119,507 150,304 165,994 172,479 16.54 2014 - - - - - - 53,060 119,820 153,320 169,736 14.96 2015 - - - - - - - 54,141 121,599 151,818 14.22 2016 - - - - - - - - 52,238 115,713 14.11 2017 - - - - - - - - - 56,951 13.86 Total 1,500,397 All outstanding claim liabilities before 2008, net of reinsurance 67,446 Liabilities for claims and claim adjustment expenses, net of reinsurance 686,956 (1) Data presented for these calendar years is required supplementary information, which is unaudited. (2) Frequency, as calculated above, refers to reported claims divided by gross premium earned. The average annual percentage payout of incurred claims by age, net of reinsurance, for workers’ compensation and general liability as of December 31, 2017 is summarized below. Since workers’ compensation has long payout periods, the table below shows less than 100% in the years disclosed. This is required supplementary information, which is unaudited. Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 24.3% 29.6% 14.9% 8.1% 4.1% 2.4% 1.4% 1.3% 0.7% 0.9% The following table provides a reconciliation of the beginning and ending reserve balances, net of related amounts recoverable from reinsurers, for 2017, 2016 and 2015: Year Ended December 31, 2017 2016 2015 (in thousands) Balance, beginning of period $ 742,776 $ 718,033 $ 687,602 Less amounts recoverable from reinsurers on unpaid loss and loss adjustment expenses 78,256 64,858 59,334 Net balance, beginning of period 664,520 653,175 628,268 Add incurred related to: Current accident year 244,094 250,337 262,387 Prior accident years (34,770 ) (51,306 ) (47,814 ) Total incurred 209,324 199,031 214,573 Less paid related to: Current accident year 56,951 52,085 53,955 Prior accident years 129,937 135,601 135,711 Total paid 186,888 187,686 189,666 Net balance, end of period 686,956 664,520 653,175 Add amounts recoverable from reinsurers on unpaid loss and loss adjustment expenses 84,889 78,256 64,858 Balance, end of period $ 771,845 $ 742,776 $ 718,033 The foregoing reconciliation reflects favorable development of the net reserves at December 31, 2017, 2016 and 2015. The favorable development reduced loss and loss adjustment expenses incurred by $34.8 million in 2017, driven primarily by accident years 2013, 2014 and 2015 of $5.8 million, $14.0 million and $10.1 million, respectively. In 2016 and 2015, the Company recorded favorable development of $51.3 million and $47.8 million, respectively. The revisions to the Company’s reserves reflect new information gained by claims adjusters in the normal course of adjusting claims and is reflected in the financial statements when the information becomes available. It is typical for more serious claims to take several years or longer to settle and the Company continually revises estimates as more information about claimants’ medical conditions and potential disability becomes known and the claims get closer to being settled. Multiple factors can cause loss development both unfavorable and favorable. The favorable loss development we experienced across accident years was largely due to favorable case reserve development from closed claims and claims where the worker had reached maximum medical improvement. Reserves established for workers’ compensation insurance have included the exposure to occupational disease or accidents related to asbestos or environmental claims. The exposure to asbestos claims emanate from the direct sale of workers’ compensation insurance. These claims resulted from industry workers who were exposed to tremolite asbestos dust and electricians and carpenters who were exposed to products that contained asbestos. There has been no known exposure to asbestos claims arising from assumed business. The emergence of these claims is slow and highly unpredictable. The Company estimates full impact of the asbestos exposure by establishing full case basis reserves on all known losses. Reserves for losses incurred but not reported (IBNR) include a provision for development of reserves on reported losses. Reserves are established for loss adjustment expenses (LAE) associated with these case and IBNR loss reserves. The following table details our exposures to various asbestos related claims: Year Ended December 31, 2017 2016 2015 (in thousands) Reserves for loss and LAE at beginning of year $ 1,487 $ 958 $ 819 Incurred losses and LAE during the current year 556 816 444 Loss and LAE payments (295 ) (287 ) (305 ) Reserves for loss and LAE at end of year $ 1,748 $ 1,487 $ 958 The Company has historically written general liability coverages that are reported in other liability lines of business. These coverages may be associated with the property and casualty industry’s exposure to environmental claims. However, the Company has not been notified by any insured for which exposure exists due to these types of claims. Company management believes potential exposure to environmental claims to be remote. Therefore, the Company has no loss or loss adjustment expense reserves for such liabilities. The anticipated effect of inflation is implicitly considered when estimating liabilities for loss and loss adjustment expenses. Average severities are projected based on historical trends adjusted for implemented changes in underwriting standards, policy provisions and general economic trends. These anticipated trends are monitored based on actual development and are modified if necessary. |
Statutory Accounting and Regula
Statutory Accounting and Regulatory Requirements | 12 Months Ended |
Dec. 31, 2017 | |
Text Block [Abstract] | |
Statutory Accounting and Regulatory Requirements | 10. Statutory Accounting and Regulatory Requirements The Company’s insurance subsidiaries file financial statements prepared in accordance with statutory accounting principles prescribed or permitted by the insurance regulatory authorities of the states in which the subsidiaries are domiciled. Statutory-basis shareholders’ capital and surplus at December 31, 2017, 2016 and 2015 of the directly owned insurance subsidiary, AIIC, and the combined statutory-basis net income and realized investment gains for all AMERISAFE’s insurance subsidiaries for the three years in the period ended December 31, 2017, were as follows (in thousands): 2017 2016 2015 Capital and surplus $ 382,062 $ 394,016 $ 371,365 Net income 61,628 79,858 71,937 Net realized losses on investments (647 ) (504 ) (3,131 ) Property and casualty insurance companies are subject to certain risk-based capital requirements, or RBC requirements, specified by the National Association of Insurance Commissioners. Under these requirements, a target minimum amount of capital and surplus maintained by a property/casualty insurance company is determined based on the various risk factors related to it. At December 31, 2017, the capital and surplus of AIIC and its subsidiaries exceeded the minimum RBC requirement. Pursuant to regulatory requirements, AIIC cannot pay dividends to the Company in excess of the greater of 10% of statutory surplus, or statutory net income, excluding realized investment gains, for the preceding 12-month period, without the prior approval of the Nebraska Director of Insurance. However, for purposes of this dividend calculation, net income from the previous two calendar years may be carried forward to the extent that it has not already been paid out as dividends. AIIC paid $78.9 million in dividends to the Company in 2017, $67.0 million in 2016 and $50.0 million in 2015. Based upon the dividend limitation described above, AIIC could pay to the Company dividends of up to $65.5 million in 2018 without seeking regulatory approval. |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Capital Stock | 11. Capital Stock Common Stock The Company is authorized to issue 50,000,000 shares of common stock, par value $0.01 per share. At December 31, 2017, there were 20,504,165 shares of common stock issued and 19,245,915 shares outstanding. Preferred Stock The Company is authorized to issue 10,000,000 shares of preferred stock, par value $0.01 per share. At December 31, 2017, there were no shares of preferred stock outstanding. |
Stock Options and Restricted St
Stock Options and Restricted Stock | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Options and Restricted Stock | 12. Stock Options and Restricted Stock 2005 Incentive Plan The AMERISAFE 2005 Equity Incentive Plan (the “2005 Incentive Plan”) is administered by the Compensation Committee of the Board and was designed to provide incentive compensation to executive officers and other key management personnel. The 2005 Incentive Plan permitted awards in the form of incentive stock options, as defined in Section 422(b) of the Internal Revenue Code of 1986, non-qualified stock options, restricted shares of common stock and restricted stock units. In connection with the approval of the 2012 Equity and Incentive Compensation Plan by the Company’s shareholders, no further grants will be made under the 2005 Incentive Plan. All grants made under the 2005 Incentive plan will continue in effect, subject to the terms and conditions of the 2005 Incentive Plan. Stock options granted under the 2005 Incentive Plan have an exercise price of not less than 100% of the fair value of the common stock on the date of grant. Stock option grants are exercisable, subject to vesting requirements determined by the Compensation Committee, for periods of up to ten years from the date of grant. Stock options generally expire 90 days after the cessation of an optionee’s service as an employee. However, in the case of an optionee’s death or disability, the unexercised portion of a stock option remains exercisable for up to one year after the optionee’s death or disability. Stock options granted under the 2005 Incentive Plan are not transferable, except by will or the laws of descent and distribution. The Company uses the Black-Scholes-Merton option pricing model to estimate the fair value of each option on the date of grant. The expected terms of options are developed by considering the Company’s historical attrition rate for those employees at the officer level, who are eligible to receive options. Further, the Company aggregates individual awards into homogenous groups based upon grant date. Expected volatility is estimated using daily historical volatility for six companies within the property and casualty insurance sector. The Company believes that historical volatility of this peer group is currently the best estimate of expected volatility of the market price of the Company’s common shares. The dividend yield was assumed to be zero as the Company did not pay cash dividends until 2013. The risk-free interest rate is the yield on the grant date of U.S. Treasury zero coupon securities with a maturity comparable to the expected term of the options. The following table summarizes information about the stock options outstanding under the 2005 Incentive Plan at December 31, 2015, 2016 and 2017: Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (in years) Outstanding at January 1, 2015 282,083 11.30 3.6 Granted — — — Exercised (193,204 ) 9.55 — Canceled, forfeited, or expired — — — Outstanding at December 31, 2015 88,879 12.10 4.3 Exercisable at December 31, 2015 88,879 12.10 4.3 Outstanding at January 1, 2016 88,879 12.10 4.3 Granted — — — Exercised (68,879 ) 12.14 3.3 Canceled, forfeited, or expired — — — Outstanding at December 31, 2016 20,000 8.71 3.1 Exercisable at December 31, 2016 20,000 8.71 3.1 Outstanding at January 1, 2017 20,000 8.71 3.1 Granted — — — Exercised — — — Canceled, forfeited, or expired — — — Outstanding at December 31, 2017 20,000 5.21 2.1 Exercisable at December 31, 2017 20,000 5.21 2.1 2017 2016 2015 (in thousands) Cash received from option exercises $ — $ 837 $ 1,844 Total tax benefits realized for tax deductions from options exercised — 833 2,109 Total intrinsic value of options exercised — 2,967 6,969 Grant date fair value of options vested — — — Aggregate intrinsic value of vested options outstanding 1,128 1,073 3,448 The following table summarizes information about the restricted stock outstanding under the 2005 Incentive Plan at December 31, 2017: Shares Weighted- Average Grant- Date Fair Value per Share Nonvested balance at January 1, 2015 2,400 27.35 Granted — — Vested (800 ) 27.35 Forfeited — — Nonvested balance at December 31, 2015 1,600 27.35 Granted — — Vested (800 ) 27.35 Forfeited — — Nonvested balance at December 31, 2016 800 27.35 Granted — — Vested (800 ) 27.35 Forfeited — — Nonvested balance at December 31, 2017 — — The Company recognized compensation expense of $56,000 in 2017 and $58,000 in 2016 and $138,000 in 2015, related to awards made under the 2005 Incentive Plan. There were no tax benefits realized for tax deductions from vesting of restricted stock in 2017. Tax benefits realized for tax deductions from vesting of restricted stock in 2016 and 2015 were $110,000 and $81,000, respectively. 2012 Equity and Incentive Compensation Plan In 2012, the Company’s shareholders approved the AMERISAFE 2012 Equity and Incentive Compensation Plan (the “2012 Incentive Plan”). The 2012 Incentive Plan is administered by the Compensation Committee of the Board and is designed to attract, retain and motivate non-employee directors, officers, key employees and consultants by providing incentives for superior performance. The 2012 Incentive Plan authorizes the grant of equity-based compensation in the form of option rights, appreciation rights, restricted shares, restricted stock units, cash incentive awards, performance shares and units, and other types of awards. A maximum of 500,000 shares of common stock may be issued or transferred upon the exercise of option rights or appreciation rights, as restricted shares and released from substantial risk of forfeiture, in payment of restricted stock units, in payment of performance shares or performance units that have been earned, as awards of shares of common stock, as other awards granted under the 2012 Incentive Plan, or in payment of dividend equivalents paid with respect to awards made under the plan subject to adjustment in the event of a merger, stock dividend, stock split or similar event, which may be original issue shares or treasury shares or a combination of the two. In 2017, 9,326 shares of restricted stock were granted under the 2012 Incentive Plan, which will vest through 2022. In 2016, 27,077 shares of restricted stock were granted under the 2012 Incentive Plan, which will vest through 2021. At December 31, 2017, there were 346,451 shares of common stock available for future awards under the 2012 Incentive Plan. The following table summarizes information about the restricted stock outstanding under the 2012 Incentive Plan at December 31, 2017: Shares Weighted- AverageGrant- Date Fair Value per Share Nonvested balance at January 1, 2015 72,921 34.59 Granted 50,461 45.80 Vested (27,537 ) 37.27 Forfeited (18,317 ) 35.48 Nonvested balance at December 31, 2015 77,528 40.57 Granted 27,077 54.44 Vested (26,294 ) 45.18 Forfeited (1,919 ) — Nonvested balance at December 31, 2016 76,392 43.91 Granted 9,326 55.58 Vested (24,839 ) 43.89 Forfeited — — Nonvested balance at December 31, 2017 60,879 45.71 The Company recognized compensation expense of $884,000, $849,000 and $599,000 in 2017, 2016 and 2015, respectively, related to share-based grants. The Company recognized compensation expense of $724,000, $334,000 and $220,000 in 2017 2016 and 2015, respectively, related to long-term incentive awards under the 2012 Incentive Plan. The long-term incentive award is a liability award. Non-Employee Director Restricted Stock Plan The AMERISAFE Non-Employee Director Restricted Stock Plan (the “Restricted Stock Plan”) is administered by the Compensation Committee of the Board and provides for the automatic grant of restricted stock awards to non-employee directors of the Company. Awards to non-employee directors are generally subject to terms including non-transferability, immediate vesting upon death or total disability of a director, forfeiture of unvested shares upon termination of service by a director and acceleration of vesting upon a change of control of the Company. The maximum number of shares of common stock that may be issued pursuant to restricted stock awards under the Restricted Stock Plan is 100,000 shares, subject to the authority of the Board to adjust this amount in the event of a merger, consolidation, reorganization, stock split, combination of shares, recapitalization or similar transaction affecting the common stock. At December 31, 2017, there were 13,668 shares of common stock available for future awards under the Restricted Stock Plan. Under the Restricted Stock Plan, each non-employee director is automatically granted a restricted stock award for a number of shares equal to $50,000 divided by the closing price of the Company’s common stock on the date of the annual meeting of shareholders at which the non-employee director is elected or is continuing as a member of the Board. Each restricted stock award vests on the date of the next annual meeting of shareholders following the date of grant, subject to the continued service of the non-employee director. Under the terms of the Restricted Stock Plan, the Company’s Board of Directors may increase the dollar amount of the annual award to an amount up to $75,000 without shareholder approval. As of December 31, 2017, there were 6,454 shares of restricted stock outstanding under the Non-Employee Director Restricted Stock Plan, all of which will vest on the date of the annual meeting of shareholders in 2018. The following table summarizes information about the restricted stock outstanding under the Non-Employee Director Restricted Stock Plan at December 31, 2017: Shares Weighted- Average Grant- Date Fair Value per Share Nonvested balance at January 1, 2015 5,229 37.27 Granted 7,112 44.26 Vested (5,229 ) 37.27 Forfeited — — Nonvested balance at December 31, 2015 7,112 44.26 Granted 5,952 63.57 Vested (7,488 ) 44.54 Forfeited — — Nonvested balance at December 31, 2016 5,576 64.50 Granted 6,454 54.20 Vested (5,576 ) 64.50 Forfeited — — Nonvested balance at December 31, 2017 6,454 54.20 The Company recognized compensation expense of $355,000 in 2017, $361,000 in 2016 and $266,000 in 2015 related to the Non-Employee Director Restricted Stock Plan. There were no tax benefits realized for tax deductions from vesting of restricted stock in 2017. Total tax benefits realized for tax deductions from vesting of restricted stock in 2016 and 2015 were $52,000 and $13,000, respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 13. Earnings Per Share Diluted earnings per share includes common shares assumed issued under the “treasury stock method,” which reflects the potential dilution that would occur if any outstanding options are exercised. Diluted earnings per share also includes the “if converted” method for participating securities if the result is dilutive. The calculation of basic and diluted EPS for the years ended December 31, 2017, 2016 and 2015 are presented below. For the Year Ended December 31, 2017 2016 2015 (in thousands, except earnings per share amounts) Basic EPS: Net income available to common shareholders – basic $ 46,231 $ 77,865 $ 70,462 Basic weighted-average common shares 19,165 19,106 18,941 Basic earnings per share $ 2.41 $ 4.08 $ 3.72 Diluted EPS: Net income available to common shareholders - diluted $ 46,231 $ 77,865 $ 70,462 Diluted weighted average common shares: Weighted average common shares 19,165 19,106 18,941 Stock options and restricted stock 81 98 178 Diluted weighted average common shares 19,246 19,204 19,119 Diluted earnings per common share $ 2.40 $ 4.05 $ 3.69 The table below sets forth the reconciliation of the weighted average shares used for the basic and diluted EPS calculation. Years Ended 2017 2016 2015 Basic weighted average common shares 19,165,489 19,105,806 18,941,077 Add: Other common shares eligible for common dividends: Weighted average restricted shares and stock options (including tax benefit component) 80,377 97,844 178,109 Diluted weighted average common shares 19,245,866 19,203,650 19,119,186 |
Comprehensive Income and Accumu
Comprehensive Income and Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Comprehensive Income and Accumulated Other Comprehensive Income | 14. Comprehensive Income and Accumulated Other Comprehensive Income Comprehensive income includes net income plus unrealized gains/losses on our available-for-sale investment securities, net of tax. The following table illustrates the changes in the balance of each component of accumulated other comprehensive income (loss) for each period presented in the financial statements. Year Ended December 31, 2017 2016 2015 (in thousands) Beginning balance $ (492 ) $ 2,587 $ 2,810 Other comprehensive income (loss) before reclassification 4,823 (3,231 ) (1,584 ) Amounts reclassified from accumulated other comprehensive income (loss) (719 ) 152 1,361 Net current period other comprehensive income (loss) 4,104 (3,079 ) (223 ) Ending balance $ 3,612 $ (492 ) $ 2,587 The sale or other-than-temporary impairment (OTTI) of an available-for-sale security results in amounts being reclassified from accumulated other comprehensive income to current period net income. The effects of reclassifications out of accumulated other comprehensive income by the respective line items of net income are presented in the following table. Component of Accumulated Other Comprehensive Income (Loss) Year Ended December 31, Affected line item in the statement of income 2017 2016 2015 (in thousands) Unrealized gains (losses) on available-for- sale securities $ 1,106 $ (234 ) $ (494 ) Net realized losses on investments Other-than-temporary impairment — — (1,600 ) Net realized losses on investments 1,106 (234 ) (2,094 ) Income before income taxes (387 ) 82 733 Income tax expense $ 719 $ (152 ) $ (1,361 ) Net income Pre-Tax Amount Tax Expense Net-of-Tax Amount (in thousands) December 31, 2017 Unrealized gain on securities: Unrealized gain on available-for-sale securities $ 6,960 $ 2,137 $ 4,823 Reclassification adjustment for losses realized in net income (1,106 ) (387 ) (719 ) Net unrealized gain 5,854 1,750 4,104 Other comprehensive income $ 5,854 $ 1,750 $ 4,104 December 31, 2016 Unrealized loss on securities: Unrealized loss on available-for-sale securities $ (4,908 ) $ (1,718 ) $ (3,190 ) Less amortization of differences between fair value and amortized cost for fixed maturity security transfer (63 ) (22 ) (41 ) Reclassification adjustment for gains realized in net income 234 82 152 Net unrealized loss (4,737 ) (1,658 ) (3,079 ) Other comprehensive loss $ (4,737 ) $ (1,658 ) $ (3,079 ) December 31, 2015 Unrealized loss on securities: Unrealized loss on available-for-sale securities $ (2,572 ) $ (900 ) $ (1,672 ) Change in unrealized losses on available-for-sale securities with OTTI 176 62 114 Less amortization of differences between fair value and amortized cost for fixed maturity security transfer (40 ) (14 ) (26 ) Reclassification adjustment for gains realized in net income 2,093 732 1,361 Net unrealized loss (343 ) (120 ) (223 ) Other comprehensive loss $ (343 ) $ (120 ) $ (223 ) |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plan | 15. Employee Benefit Plan The Company’s 401(k) benefit plan is available to all employees. The Company matches up to 3% of employee compensation for participating employees, subject to certain limitations. Employees are fully vested in employer contributions to this plan after five years. Company contributions to this plan were $0.6 million in 2017 and $0.4 million in 2016 and 2015. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 16. Commitments and Contingencies The Company is a party to various legal actions arising principally from claims made under insurance policies and contracts. Those actions are considered by the Company in estimating reserves for loss and loss adjustment expenses. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s consolidated financial position or results of operations. The Company provides workers’ compensation insurance in several states that maintain second-injury funds. Incurred losses on qualifying claims that exceed certain amounts may be recovered from these state funds. There is no assurance that the applicable states will continue to provide funding under these programs. The Company manages risk on certain long-duration claims by settling these claims through the purchase of annuities from unaffiliated carriers. In the event these carriers are unable to meet their obligations under these contracts, the Company could be liable to the claimants. The following table summarizes (in thousands) the fair value of the annuities at December 31, 2017, that the Company has purchased to satisfy its obligations. Life Insurance Company A.M. Best Rating Statement Value of Annuities Exceeding 1% of Statutory Surplus Pacific Life and Annuity Company A+ $ 17,068 American General Life Insurance Company A 14,952 New York Life Insurance Company A++ 11,312 Travelers Life and Annuity A 10,471 Metropolitan Life Insurance Company A+ 6,993 John Hancock Life Insurance Company A+ 6,284 Athene Annuity and Life Company A 4,760 United of Omaha A+ 4,375 Other 19,721 $ 95,936 Substantially all of the annuities are issued or guaranteed by life insurance companies that have an A.M. Best Company rating of “A” (Excellent) or better. The Company leases equipment and office space under noncancelable operating leases. At December 31, 2017, future minimum lease payments are as follows (in thousands): 2018 $ 135 2019 47 2020 37 2021 37 2022 37 $ 293 Rental expense was $0.1 million in 2017 and $0.2 million in 2016 and 2015. |
Concentration of Operations
Concentration of Operations | 12 Months Ended |
Dec. 31, 2017 | |
Text Block [Abstract] | |
Concentration of Operations | 17. Concentration of Operations The Company derives its premium revenues from its operations in the workers’ compensation insurance line of business. Net premiums earned during 2017, 2016 and 2015 for the top ten states in 2017 and all others are shown below: 2017 2016 2015 Dollars Percent Dollars Percent Dollars Percent (Dollars in thousands) Georgia $ 40,801 11.8 % $ 38,168 10.4 % $ 40,497 10.8 % Florida 34,615 10.0 % 29,051 7.9 % 24,792 6.6 % Pennsylvania 32,931 9.5 % 39,460 10.7 % 36,294 9.7 % Louisiana 25,422 7.3 % 30,426 8.3 % 38,874 10.3 % Illinois 22,169 6.4 % 25,796 7.0 % 23,285 6.2 % North Carolina 18,388 5.3 % 20,784 5.6 % 20,062 5.3 % Virginia 16,298 4.7 % 16,599 4.5 % 15,656 4.2 % Minnesota 13,968 4.0 % 15,130 4.1 % 14,618 3.9 % Wisconsin 13,790 4.0 % 13,544 3.7 % 11,203 3.0 % South Carolina 13,327 3.9 % 13,897 3.8 % 12,955 3.4 % All others 114,447 33.1 % 125,849 34.0 % 137,658 36.6 % Total net premiums earned $ 346,156 100.0 % $ 368,704 100.0 % $ 375,894 100.0 % |
Fair Values of Financial Instru
Fair Values of Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Values of Financial Instruments | 18. Fair Values of Financial Instruments The Company determines fair value amounts for financial instruments using available third-party market information. When such information is not available, the Company determines the fair value amounts using appropriate valuation methodologies. Nonfinancial instruments such as real estate, property and equipment, deferred policy acquisition costs, deferred income taxes and loss and loss adjustment expense reserves are excluded from the fair value disclosure. Cash and Cash Equivalents —The carrying amounts reported in the accompanying consolidated balance sheets for these financial instruments approximate their fair values. Investments —The fair values for fixed maturity and equity securities are based on quoted market prices where available. For those securities not actively traded, fair values were obtained from a third-party investment manager. Short Term Investments —The carrying amounts reported in the accompanying consolidated balance sheets for these financial instruments approximate their fair value. Other Investments — Other investments consisted of a limited partnership interest that was accounted for under the equity method valued using the net asset value provided by the general partner of the limited partnership, which approximates the fair value of the interest. The limited partnership’s objective was to generate absolute returns by investing long and short in publicly-traded global securities. The investment in the limited partnership was fully redeemed during 2017. The Company has no unfunded commitments to the limited partnership. The following table summarizes the carrying or reported values and corresponding fair values for financial instruments: December 31, 2017 2016 Carrying Amount Fair Value Carrying Amount Fair Value (in thousands) Assets: Fixed maturity securities—held to maturity $ 629,668 $ 639,309 $ 562,434 $ 568,931 Fixed maturity securities—available for sale 465,594 465,594 479,097 479,097 Equity securities 9,282 9,282 33 33 Short-term investments 25,770 25,770 29,580 29,580 Other investments — — 13,330 13,330 Cash and cash equivalents 55,559 55,559 58,936 58,936 The Company carries available-for-sale securities at fair value in our consolidated financial statements and determines fair value measurements and disclosure in accordance with FASB ASC Topic 820, Fair Value Measurements and Disclosures. The Company determines the fair values of its financial instruments based on the fair value hierarchy established in ASC Topic 820, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard defines fair value, describes three levels of inputs that may be used to measure fair value, and expands disclosures about fair value measurements. Fair value is defined in ASC Topic 820 as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is the price to sell an asset or transfer a liability and, therefore, represents an exit price, not an entry price. Fair value is the exit price in the principal market (or, if lacking a principal market, the most advantageous market) in which the reporting entity would transact. Fair value is a market-based measurement, not an entity-specific measurement, and, as such, is determined based on the assumptions that market participants would use in pricing the asset or liability. The exit price objective of a fair value measurement applies regardless of the reporting entity’s intent and/or ability to sell the asset or transfer the liability at the measurement date. ASC Topic 820 requires the use of valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present value amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset, also known as current replacement cost. Valuation techniques used to measure fair value are to be consistently applied. In ASC Topic 820, inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, for example, the risk inherent in a particular valuation technique used to measure fair value (such as a pricing model) and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable: • Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. • Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. Valuation techniques used to measure fair value are intended to maximize the use of observable inputs and minimize the use of unobservable inputs. ASC Topic 820 establishes a fair value hierarchy that prioritizes the use of inputs used in valuation techniques into the following three levels: • Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. • Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, or inputs that are derived principally from or corroborated by observable market data. • Level 3 inputs are unobservable inputs for the asset or liability. Unobservable inputs are to be used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. The fair values of the Company’s investments are based upon prices provided by an independent pricing service. The Company has reviewed these prices for reasonableness and has not adjusted any prices received from the independent provider. Securities reported at fair value utilizing Level 1 inputs represent assets whose fair value is determined based upon observable unadjusted quoted market prices for identical assets in active markets. Level 2 securities represent assets whose fair value is determined using observable market information such as previous day trade prices, quotes from less active markets or quoted prices of securities with similar characteristics. There were no transfers between Level 1 and Level 2 during the year ended December 31, 2017. Assets and liabilities measured at fair value on a recurring basis as of December 31, 2017 and 2016 are as follows: December 31, 2017 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value (in thousands) Financial instruments carried at fair value, classified as part of: Securities available for sale—fixed maturity: States and political subdivisions $ — $ 251,140 $ — $ 251,140 Corporate bonds — 130,222 — 130,222 U.S. agency-based mortgage-backed securities — 18,014 — 18,014 U.S. Treasury securities and obligations of U.S. government agencies 66,218 — — 66,218 Total available for sale—fixed maturity 66,218 399,376 — 465,594 Securities available for sale—equity: Domestic common stock 9,248 — 34 9,282 Total available for sale $ 75,466 $ 399,376 $ 34 $ 474,876 December 31, 2016 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value (in thousands) Financial instruments carried at fair value, classified as part of: Securities available for sale—fixed maturity: States and political subdivisions $ — $ 232,293 $ — $ 232,293 Corporate bonds — 182,515 — 182,515 U.S. agency-based mortgage-backed securities — 9,342 — 9,342 U.S. Treasury securities and obligations of U.S. government agencies 54,947 — — 54,947 Total available for sale—fixed maturity 54,947 424,150 — 479,097 Securities available for sale—equity: Domestic common stock 33 — — 33 Total available for sale $ 54,980 $ 424,150 $ — $ 479,130 Assets and liabilities measured at amortized cost as of December 31, 2017 and 2016 are as follows: December 31, 2017 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value (in thousands) Securities held-to-maturity—fixed maturity: States and political subdivisions $ — $ 469,101 $ — $ 469,101 Corporate bonds — 100,047 — 100,047 Commercial mortgage-backed securities — — — — U.S. agency-based mortgage-backed securities — 10,845 — 10,845 U.S. Treasury securities 6,750 — — 6,750 Obligations of U.S. government agencies — 51,257 — 51,257 Asset-backed securities — 1,309 — 1,309 Total held-to-maturity $ 6,750 $ 632,559 $ — $ 639,309 December 31, 2016 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value (in thousands) Securities held-to-maturity—fixed maturity: States and political subdivisions $ — $ 399,483 $ — $ 399,483 Corporate bonds — 144,016 — 144,016 Commercial mortgage-backed securities — 70 — 70 U.S. agency-based mortgage-backed securities — 10,915 — 10,915 U.S. Treasury securities 6,779 — — 6,779 Obligations of U.S. government agencies — 5,637 — 5,637 Asset-backed securities — 2,031 — 2,031 Total held-to-maturity $ 6,779 $ 562,152 $ — $ 568,931 The following table presents summary information regarding changes in the fair value of assets measured at fair value using Level 3 input. December 31, 2017 December 31, 2016 (in thousands) Balance, beginning of period $ — $ — Transfer into Level 3 34 — Balance, end of period $ 34 $ — There was an immaterial transfer between Level 1 and Level 3 due to the reclassification of a common stock security with unobservable fair value inputs. At December 31, 2017, the Company held one security measured at fair value on a nonrecurring basis due to a recognized impairment of $100,000. The security is valued using Level 2 inputs and had a value of $13,000 at December 31, 2017. The security was valued at fair value at the time of impairment and is currently being carried at the adjusted amortized cost. The fair value of the security is $34,000 at December 31, 2017. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | 19. Quarterly Financial Data (Unaudited) The following table represents unaudited quarterly financial data for the years ended December 31, 2017 and 2016. Three Months Ended March 31 June 30 September 30 December 31 (in thousands, except per share amounts) 2017 Net premiums earned $ 90,912 $ 82,749 $ 85,118 $ 87,377 Net investment income 6,710 7,471 7,788 7,312 Net realized gains (losses) on investments (181 ) (388 ) (192 ) 114 Total revenues 97,542 89,925 92,804 94,937 Income before income taxes 18,733 22,151 23,556 17,800 Net income 13,524 15,481 16,577 649 Net income available to common shareholders 13,524 15,481 16,577 649 Earnings per share: Basic $ 0.71 $ 0.81 $ 0.86 $ 0.03 Diluted $ 0.70 $ 0.81 $ 0.86 $ 0.03 Comprehensive income 14,476 17,437 17,194 1,228 Extraordinary cash dividends declared per common share $ — $ — $ — $ 3.50 Cash dividends declared per common share $ 0.20 $ 0.20 $ 0.20 $ 0.20 2016 Net premiums earned $ 95,961 $ 90,728 $ 89,918 $ 92,097 Net investment income 6,044 6,201 8,006 7,855 Net realized gains (losses) on investments 248 545 181 (1,468 ) Total revenues 102,335 97,563 98,206 98,558 Income before income taxes 34,395 24,615 26,027 27,784 Net income 24,257 16,639 17,896 19,073 Net income available to common shareholders 24,257 16,639 17,896 19,073 Earnings per share: Basic $ 1.27 $ 0.87 $ 0.94 $ 1.00 Diluted $ 1.27 $ 0.87 $ 0.93 $ 0.99 Comprehensive income 27,051 19,568 16,183 11,985 Extraordinary cash dividends declared per common share $ — $ — $ — $ 3.25 Cash dividends declared per common share $ 0.18 $ 0.18 $ 0.18 $ 0.18 |
Capital Management
Capital Management | 12 Months Ended |
Dec. 31, 2017 | |
Text Block [Abstract] | |
Capital Management | 20. Capital Management The Company’s Board of Directors initiated a share repurchase program in February 2010. In October 2016, the Board reauthorized this program with a limit of $25.0 million with no expiration date. There were no shares repurchased under this program in 2017. Since the beginning of this plan, the Company has repurchased a total of 1,258,250 shares for $22.4 million, or an average price of $17.78, including commissions. In 2013, the Company’s Board of Directors initiated a regular quarterly dividend. During 2017, the Company’s Board of Directors declared a quarterly dividend of $0.20 per share compared to $0.18 per share in 2016, $0.15 per share in 2015, $0.12 per share in 2014 and $0.08 per share in 2013. The Company declared extraordinary dividends totaling $3.50 per share in 2017, $3.25 per share in 2016, $3.00 per share in 2015 and $1.50 per share in 2014. The Company did not pay any extraordinary cash dividends in 2013. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 21. Subsequent Events On February 22, 2018 the Company declared a regular quarterly cash dividend of $0.22 per share payable on March 23, 2018 to shareholders of record as of March 9, 2018. In 2017, the Company paid a quarterly cash dividend of $0.20 per share. The Board intends to continue to consider the payment of a regular cash dividend each calendar quarter. On an annualized basis, the cash dividend is expected to be $0.88 per share. |
Schedule II. Condensed Financia
Schedule II. Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Schedule II. Condensed Financial Information of Registrant | Schedule II. Condensed Financial Information of Registrant AMERISAFE, INC. CONDENSED BALANCE SHEETS December 31, 2017 2016 (in thousands) Assets Investments: Equity securities—available-for-sale $ 9,248 $ — Short-term investments 7,962 11,939 Other investments — 13,330 Investment in subsidiaries 386,844 415,767 Total investments 404,054 441,036 Cash and cash equivalents 16,351 9,596 Deferred income taxes 302 675 Notes receivable from subsidiaries 1,711 1,587 Property and equipment, net 1,359 1,942 Federal income tax recoverable 3,525 3,091 Other assets 887 657 $ 428,189 $ 458,584 Liabilities, redeemable preferred stock and shareholders’ equity Total liabilities 2,766 2,434 Shareholders' equity (net of Treasury stock of $22,370 at December 31, 2017 and 2016) 425,423 456,150 $ 428,189 $ 458,584 Schedule II. Condensed Financial Information of Registrant – (Continued) AMERISAFE, INC. CONDENSED STATEMENTS OF INCOME Year Ended December 31, 2017 2016 2015 (in thousands) Revenues Net investment income $ 679 $ 1,509 $ 854 Fee and other income 6,890 5,843 5,893 Total revenues 7,569 7,352 6,747 Expenses Other operating costs 7,569 7,352 6,747 Total expenses 7,569 7,352 6,747 Income (loss) before income taxes and equity in earnings of subsidiaries — — — Income tax expense (benefit) 125 (156 ) (57 ) Gain (loss) before equity in earnings of subsidiaries (125 ) 156 57 Equity in net income of subsidiaries 46,356 77,709 70,405 Net income $ 46,231 $ 77,865 $ 70,462 Schedule II. Condensed Financial Information of Registrant – (Continued) AMERISAFE, INC. CONDENSED STATEMENTS OF CASH FLOWS Year Ended December 31, 2017 2016 2015 (in thousands) Operating activities Net cash (used in) provided by operating activities $ 15,138 $ 2,771 $ (1,727 ) Investing activities Purchases of investments (37,361 ) (11,940 ) — Proceeds from sales of investments 33,000 — 250 Purchases of property and equipment (277 ) (924 ) (627 ) Dividends from subsidiary 78,900 67,000 50,000 Net cash provided by investing activities 74,262 54,136 49,623 Financing activities Proceeds from stock option exercises — 837 1,844 Tax benefit from share-based payments — 995 2,204 Dividends to shareholders (82,645 ) (76,111 ) (68,561 ) Net cash used in financing activities (82,645 ) (74,279 ) (64,513 ) Change in cash and cash equivalents 6,755 (17,372 ) (16,617 ) Cash and cash equivalents at beginning of year 9,596 26,968 43,585 Cash and cash equivalents at end of year $ 16,351 $ 9,596 $ 26,968 |
Schedule VI. Supplemental Infor
Schedule VI. Supplemental Information Concerning Property-Casualty Insurance Operations | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Information For Property Casualty Insurance Underwriters [Abstract] | |
Schedule VI. Supplemental Information Concerning Property-Casualty Insurance Operations | Schedule VI. Supplemental Information Concerning Property—Casualty Insurance Operations AMERISAFE, INC. AND SUBSIDIARIES Deferred Policy Acquisition Costs Reserves for Unpaid Loss and Loss Adjustment Expense Unearned Premium Net Premiums Earned Net Investment Income Loss and LAE Related to Current Period Loss and LAE Related to Prior Periods Amortization of Deferred Policy Acquisition Costs Paid Claims and Claim Adjustment Expenses Net Premiums Written (in thousands) 2017 $ 20,251 $ 771,845 $ 157,270 $ 346,156 $ 29,281 $ 244,094 $ (34,770 ) $ (43,009 ) $ 186,888 $ 341,398 2016 19,300 742,776 162,028 368,704 28,106 250,337 (51,306 ) (44,321 ) 187,686 362,748 2015 20,412 718,033 167,983 375,894 27,902 262,387 (47,814 ) (44,841 ) 189,666 375,301 |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Organization | Organization AMERISAFE, Inc. is an insurance holding company incorporated in the state of Texas. The accompanying consolidated financial statements include the accounts of AMERISAFE and its subsidiaries: American Interstate Insurance Company (“AIIC”) and its insurance subsidiaries, Silver Oak Casualty, Inc. (“SOCI”) and American Interstate Insurance Company of Texas (“AIICTX”), Amerisafe Risk Services, Inc. (“RISK”) and Amerisafe General Agency, Inc. (“AGAI”). AIIC and SOCI are property and casualty insurance companies organized under the laws of the state of Nebraska. AIICTX is a property and casualty insurance company organized under the laws of the state of Texas. RISK, a wholly owned subsidiary of the Company, is a claims and safety service company currently servicing only affiliated insurance companies. AGAI, a wholly owned subsidiary of the Company, is a general agent for the Company. AGAI sells insurance, which is underwritten by AIIC, SOCI and AIICTX, as well as by nonaffiliated insurance carriers. The assets and operations of AGAI are not significant to that of the Company and its consolidated subsidiaries. The terms “AMERISAFE,” the “Company,” “we,” “us” or “our” refer to AMERISAFE, Inc. and its consolidated subsidiaries, as the context requires. The Company provides workers’ compensation insurance for small to mid-sized employers engaged in hazardous industries, principally construction, trucking, logging and lumber, manufacturing, agriculture, maritime, and oil and gas. Assets and revenues of AIIC and its subsidiaries represent at least 95% of comparable consolidated amounts of the Company for each of 2017, 2016 and 2015. |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States, or GAAP. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Adopted Accounting Guidance | Adopted Accounting Guidance In May 2015, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update No. 2015-07, Fair Value Measurements (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) In May 2015, FASB issued Accounting Standards Update, or ASU, 2015-09, Financial Services – Insurance (Topic 944): Disclosures about Short-Duration Contracts. The guidance requires additional disclosures for short-duration insurance contracts. New disclosures are to include more information about initial claim estimates and subsequent adjustments to those estimates, the methodologies and judgments used to estimate claims, and the timing, frequency, and severity of claims. This standard was effective for us beginning with our 2016 annual financial statement. The guidance requires a change in disclosure only (see Note 9 to our financial statements), and thus has no impact on our financial condition or results of operations. In March 2016, FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The new guidance requires that all tax effects related to share-based payments be made through the income statement at the time of settlement as opposed to recognizing excess tax benefits in additional paid-in capital. It also requires the cash flows resulting from share-based payments to be included as an operating activity. In addition to the changes, the guidance permits reporting entities to elect to estimate forfeitures related to share-based payments or recognize them as they occur. The threshold to qualify for equity classification has also been revised to permit withholding up to the maximum statutory tax rates in the applicable jurisdictions. The adoption of this new guidance in the first quarter of 2017 did not have a material impact on our financial condition and results of operations. |
Prospective Accounting Guidance | Prospective Accounting Guidance On February 15, 2018 the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220). This ASU provides new guidance on reclassification from Other Comprehensive Income (OCI) of tax effects related to recently passed tax reform legislation. The guidance gives entities the option to reclassify to retained earnings tax effects related to items in accumulated other comprehensive income (OCI) deemed to be stranded as a result of tax reform. The guidance is effective for us in the first quarter of 2018 and will be applied retrospectively. The Company’s policy for releasing income tax effects from accumulated OCI will be the individual securities approach for available-for-sale securities. Based on our understanding of the guidance available as of the filing date, we do not expect the adoption of this guidance to have a material impact on our financial condition and results of operations. On December 22, 2017, the SEC issued Staff Accounting Bulletin (SAB) 118 which provides guidance on accounting for tax effects of the Tax Act. The Tax Act required Property and Casualty taxpayers to discount loss reserves based solely on IRS factors and no longer by reference to historical payment patterns. As the IRS has yet to release the 2018 discount factors, we have been unable to reasonably estimate the impact of the change in loss reserve discounting factors and therefore have not adjusted our deferred tax balances at December 31, 2017 for the impact of these changes. As prescribed by SAB 118, we continue to utilize the discount factors based on existing accounting guidance and the provisions of the tax laws that were in effect immediately prior to enactment of the Tax Act. Once the IRS has released the 2018 loss reserve discount factors, we will complete our analysis and include the effect of the difference in the reserve discount factors in the period the analysis is complete or the impact is reasonably estimable. In May 2014, the FASB issued ASU 2014-09 (Topic 606): Revenue from Contract s In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. This guidance requires fair value measurement for equity investments (not including those that result in consolidation of the investee or use the equity method of accounting) and the recognition of changes in fair value to be presented as a component of net income. The guidance also revises the disclosure requirements related to fair value changes of liabilities presented in comprehensive income, eliminates disclosure related to the methods and assumptions underlying fair value for financial instruments measured at amortized cost, and simplifies impairment assessments for equity investments without readily determinable fair values. This standard is effective for us in the first quarter of 2018. Based on the equity investments currently held by the Company, there would not be a material impact on the Company's financial condition and results of operations if the new guidance were to be adopted in the current accounting period. The impact on the Company's results of operations and financial position at the date of adoption will be determined by the equity investments held by the Company and the economic conditions at that time. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). Under current guidance for lessees, leases are only included on the balance sheet if certain criteria, classifying the contract as a capital lease, are met. The new guidance requires a lessee to recognize a lease liability and a right of use asset for all leases extending beyond twelve months. The new guidance is effective for us in the first quarter of 2019. Upon adoption, leases will be recognized and measured at the beginning of the earliest period presented using a modified retrospective approach. Adoption of the guidance is not expected to have a material effect on the Company’s consolidated financial statements as the Company does not have any significant leases. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses. The new guidance replaces the methodology of credit loss impairment, which currently, delays the recognition of credit losses until a probable loss has been incurred. The new guidance requires credit losses for securities measured at amortized cost, to be determined using current expected credit losses estimates. These estimates are to be derived from historical, current and reasonable supporting forecasts, including prepayments and estimates, and will be recorded through a valuation allowance account that will run through the income statement. The same method will be used for available-for-sale securities, but the valuation allowance will be limited to the amount by which the fair value is below amortized cost. The standard is effective for us in the first quarter of 2020. The Company will continue to monitor and evaluate the impact as the implementation date approaches. All other issued but not yet effective accounting and reporting standards as of December 31, 2017 are either not applicable to the Company or are not expected to have a material impact on the Company. |
Investments | Investments The Company has the ability and positive intent to hold certain investments until maturity. Therefore, fixed maturity securities classified as held-to-maturity are recorded at amortized cost. Equity securities and fixed maturity securities classified as available-for-sale are recorded at fair value. Temporary changes in the fair value of these securities are reported in shareholders’ equity as a component of other comprehensive income, net of deferred income taxes. Investment income is recognized as it is earned. The discount or premium on fixed maturity securities is amortized using the “constant yield” method. Anticipated prepayments, where applicable, are considered when determining the amortization of premiums or discounts. Realized investment gains and losses are determined using the specific identification method. The Company regularly reviews the fair value of its investments. Impairment of an investment security results in a reduction of the carrying value of the security and the realization of a loss when the fair value of the security declines below the cost or amortized cost, as applicable, for the security and the impairment is deemed to be other-than-temporary. The Company regularly reviews its investment portfolio to evaluate the existence of other-than-temporary declines in the fair value of investments. The Company considers various factors in determining if a decline in the fair value of an individual security is other-than-temporary, including but not limited to a reduction or interruption in scheduled cash flows, the financial condition of the issuer, how long and by how much the fair value has been below amortized cost, losses due to credit concerns, downgrades and the Company’s intent to sell or ability to hold the security. Other-than-temporary impairment losses on equity securities are recognized in net income and are measured as the difference between cost and fair value. Impairment losses on fixed maturities are recognized in the financial statements depending on the facts and circumstances related to the specific security. If we intend to sell a security or it is more likely than not that we would be required to sell a security before the recovery of its amortized cost, less any current period credit loss, an other-than-temporary impairment would be recognized in net income for the difference between amortized cost and fair value. If we do not expect to recover the amortized cost basis, we do not plan to sell the security and if it is not more likely than not that we would be required to sell a security before the recovery of its amortized cost, less any current period credit loss, the recognition of the other-than-temporary impairment is bifurcated. The credit loss portion would be recognized in net income and the noncredit loss portion in other comprehensive income. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents include short-term money market funds and corporate bonds with an original maturity of 90 days or less. |
Short-Term Investments | Short-Term Investments Short-term investments include municipal securities, corporate bonds and certificates of deposit with an original maturity greater than 90 days but less than one year. |
Other Investments | Other Investments Other investments consisted of a limited partnership interest that was accounted for under the equity method, valued using the net asset value provided by the general partner of the limited partnership, which approximates the fair value of the interest. The limited partnership’s objective was to generate absolute returns by investing long and short in publicly-traded global securities. The investment in the limited partnership was fully redeemed during 2017. The Company has no unfunded commitments to the limited partnership. |
Premiums Receivable | Premiums Receivable Premiums receivable consist primarily of premium-related balances due from policyholders. The Company considers premiums receivable as past due based on the payment terms of the underlying policy. The balance is shown net of the allowance for doubtful accounts. Receivables due from insureds are charged off when a determination has been made by management that a specific balance will not be collected. An estimate of amounts that are likely to be charged off is established as an allowance for doubtful accounts as of the balance sheet date. The estimate is primarily comprised of specific balances that are considered probable to be charged off after all collection efforts have ceased, as well as historical trends and an analysis of the aging of the receivables. |
Property and Equipment | Property and Equipment The Company’s property and equipment, including certain costs incurred to develop or obtain software for internal use, are stated at cost less accumulated depreciation. Depreciation is calculated primarily by the straight-line method over the estimated useful lives of the respective assets, generally 39 years for buildings and three to seven years for all other fixed assets. |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs The direct costs of successfully acquiring and renewing business are capitalized to the extent recoverable and are amortized over the effective period of the related insurance policies in proportion to premium revenue earned. These capitalized costs consist mainly of sales commissions, premium taxes and other underwriting costs. The Company evaluates deferred policy acquisition costs for recoverability by comparing the unearned premiums to the estimated total expected claim costs and related expenses, offset by anticipated investment income. The Company would reduce the deferred costs if the unearned premiums were less than expected claims and expenses after considering investment income, and report any adjustments in amortization of deferred policy acquisition costs. There were no adjustments necessary in 2017, 2016 or 2015. |
Reserves for Loss and Loss Adjustment Expenses | Reserves for Loss and Loss Adjustment Expenses Reserves for loss and loss adjustment expenses represent the estimated ultimate cost of all reported and unreported losses incurred through December 31. The Company does not discount loss and loss adjustment expense reserves. The reserves for loss and loss adjustment expenses are estimated using individual case-basis valuations, statistical analyses and estimates based upon experience for unreported claims and their associated loss and loss adjustment expenses. Such estimates may be more or less than the amounts ultimately paid when the claims are settled. The estimates are subject to the effects of trends in loss severity and frequency. Although considerable variability is inherent in these estimates, management believes that the reserves for loss and loss adjustment expenses are adequate. The estimates are continually reviewed and adjusted as necessary as experience develops or new information becomes known. Any such adjustments are included in income from current operations. Subrogation recoverables, as well as deductible recoverables from policyholders, are estimated using individual case-basis valuations and aggregate estimates. Deductibles that are recoverable from policyholders and other recoverables from state funds decrease the liability for loss and loss adjustment expenses. The Company funds its obligations under certain settled claims where the payment pattern and ultimate cost are fixed and determinable on an individual claim basis through the purchase of annuities. These annuities are purchased from unaffiliated carriers and name the claimant as payee. The cost of purchasing the annuity is recorded as paid loss and loss adjustment expenses. To the extent the annuity funds estimated future claims, reserves for loss and loss adjustment expense are reduced. |
Premium Revenue | Premium Revenue Premiums on workers’ compensation insurance are based on actual payroll costs or production during the policy term and are normally billed monthly in arrears or annually. However, the Company generally requires a deposit at the inception of a policy. Premium revenue is earned on a pro rata basis over periods covered by the policies. The reserve for unearned premiums on these policies is computed on a daily pro rata basis. The Company estimates the annual premiums to be paid by its policyholders when the Company issues the policies and records those amounts on the balance sheet as premiums receivable. The Company conducts premium audits on all of its voluntary business policyholders annually, upon the expiration of each policy, including when the policy is renewed. The purpose of these audits is to verify that policyholders have accurately reported their payroll expenses and employee job classifications, and therefore have paid the Company the premium required under the terms of the policies. The difference between the estimated premium and the ultimate premium is referred to as “earned but unbilled” premium, or EBUB premium. EBUB premium can be higher or lower than the estimated premium. EBUB premium is subject to significant variability and can either increase or decrease earned premium based upon several factors, including changes in premium growth, industry mix and economic conditions. Due to the timing of audits and other adjustments, ultimate premium earned is generally not determined for several months after the expiration of the policy. The Company estimates EBUB premiums on a quarterly basis using historical data and applying various assumptions based on the current market and economic conditions, and records an adjustment to premium, related losses, and expenses as warranted. |
Reinsurance | Reinsurance Reinsurance premiums, losses and allocated loss adjustment expenses are accounted for on a basis consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Amounts recoverable from reinsurers include balances currently owed to the Company for losses and allocated loss adjustment expenses that have been paid to policyholders, amounts that are currently reserved for and will be recoverable once the related expense has been paid and experience-rated commissions recoverable upon commutation. Upon management’s determination that an amount due from a reinsurer is uncollectible due to the reinsurer’s insolvency or other matters, the amount is written off. Ceding commissions are earned from certain reinsurance companies and are intended to reimburse the Company for policy acquisition costs related to those premiums ceded to the reinsurers. Ceding commission income is recognized over the effective period of the related insurance policies in proportion to premium revenue earned and is reflected as a reduction in underwriting and certain other operating costs. Experience-rated commissions are earned from certain reinsurance companies based on the financial results of the applicable risks ceded to the reinsurers. These commission revenues on reinsurance contracts are recognized during the related reinsurance treaty period and are based on the same assumptions used for recording loss and allocated loss adjustment expenses. These commissions are reflected as a reduction in underwriting and certain other operating costs and are adjusted as necessary as experience develops or new information becomes known. Any such adjustments are included in income from current operations. Experience-rated commissions increased underwriting and certain other operating costs by $0.2 million in 2017 compared to no impact in 2016 and an increase of $0.3 million in 2015. In December 2016, the Company commuted reinsurance agreements with Hannover Reinsurance Limited (Ireland) (“Hannover”) and Tokio Millennium Re Limited (“Tokio”) covering portions of accident years 2011 through 2013. The Company received cash of $0.2 million and an additional $25.4 million payment effectuated solely through offset against the balance of the funds withheld account under the reinsurance agreements in exchange for releasing Hannover and Tokio from their reinsurance obligations under the commuted agreements. Both Hannover and Tokio remain obligated to the subsidiaries of the Company under other reinsurance agreements. As a result of the commutation, the effect on the Company’s net income in the year ended December 31, 2016 was immaterial. |
Fee and Other Income | Fee and Other Income The Company recognizes income related to commissions earned by AGAI as the related services are performed. |
Advertising | Advertising All advertising expenditures incurred by the Company are charged to expense in the period to which they relate and are included in underwriting and certain other operating costs in the consolidated statements of income. Total advertising expenses incurred were $0.5 million in 2017 and $0.7 million in 2016 and 2015. |
Income Taxes | Income Taxes The Company accounts for income taxes using the liability method. The provision for income taxes has two components, amounts currently payable or receivable and deferred amounts. Deferred income tax assets and liabilities are recognized for the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred income tax assets and liabilities are measured using 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 income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company considers deferred tax assets to be recoverable if it is probable that the related tax losses can be offset by future taxable income. The Company includes reversal of existing temporary differences, tax planning strategies available and future operating income in this assessment. To the extent the deferred tax assets exceed the amount expected to be recovered in future years, the Company records a valuation allowance for the amount determined unrecoverable. |
Insurance-Related Assessments | Insurance-Related Assessments Insurance-related assessments are accrued in the period in which they have been incurred. The Company is subject to a variety of assessments related to insurance commerce, including those by state guaranty funds and workers’ compensation second-injury funds. State guaranty fund assessments are used by state insurance oversight agencies to cover losses of policyholders of insolvent or rehabilitated insurance companies and for the operating expenses of such agencies. Assessments based on premiums are generally paid one year after the calendar year in which the premium is written, while assessments based on losses are generally paid within one year of the calendar year in which the loss is paid. |
Policyholder Dividends | Policyholder Dividends The Company writes certain policies for which the policyholder may participate in favorable claims experience through a dividend. An estimated provision for workers’ compensation policyholders’ dividends is accrued as the related premiums are earned. Dividends do not become a fixed liability unless and until declared by the respective Boards of Directors of AMERISAFE’s insurance subsidiaries. The dividend to which a policyholder may be entitled is set forth in the policy and is related to the amount of losses sustained under the policy. Dividends are calculated after the policy expiration. The Company is able to estimate the policyholder dividend liability because the Company has information regarding the underlying loss experience of the policies written with dividend provisions and can estimate future dividend payments from the policy terms. |
Earnings Per Share | Earnings Per Share The Company computes earnings per share (EPS) in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 260, Earnings Per Share. Basic EPS is calculated by dividing income available to common shareholders by the weighted-average number of common shares outstanding during the period. The diluted EPS calculation includes potential common shares assumed issued under the treasury stock method, which reflects the potential dilution that would occur if any outstanding options or warrants were exercised or restricted stock becomes vested. |
Share-Based Compensation | Share-Based Compensation The Company recognizes the impact of its share-based compensation in accordance with FASB ASC Topic 718, Compensation-Stock Compensation. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Gross Unrealized Gains and Losses and Amortized Cost and Fair Value of Investments Classified as Held-to-maturity | The gross unrealized gains and losses on, and the amortized cost and fair value of, those investments classified as held-to-maturity at December 31, 2017 are summarized as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) States and political subdivisions $ 460,428 $ 9,628 $ (955 ) $ 469,101 Corporate bonds 100,024 190 (167 ) 100,047 Commercial mortgage-backed securities — — — — U.S. agency-based mortgage-backed securities 10,260 625 (40 ) 10,845 U.S. Treasury securities and obligations of U.S. government agencies 57,657 548 (198 ) 58,007 Asset-backed securities 1,299 25 (15 ) 1,309 Totals $ 629,668 $ 11,016 $ (1,375 ) $ 639,309 The gross unrealized gains and losses on, and the amortized cost and fair value of, those investments classified as held-to-maturity at December 31, 2016 are summarized as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) States and political subdivisions $ 394,875 $ 7,622 $ (3,014 ) $ 399,483 Corporate bonds 143,858 423 (265 ) 144,016 Commercial mortgage-backed securities 70 — — 70 U.S. agency-based mortgage-backed securities 9,967 948 — 10,915 U.S. Treasury securities and obligations of U.S. government agencies 11,737 746 (67 ) 12,416 Asset-backed securities 1,927 163 (59 ) 2,031 Totals $ 562,434 $ 9,902 $ (3,405 ) $ 568,931 |
Gross Unrealized Gains and Losses and Cost or Amortized Cost and Fair Value of Investments Classified as Available-for-sale | The gross unrealized gains and losses on, and the cost or amortized cost and fair value of, those investments classified as available-for-sale at December 31, 2017 are summarized as follows: Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Fixed maturity: States and political subdivisions $ 244,898 $ 6,819 $ (577 ) $ 251,140 Corporate bonds 130,210 224 (212 ) 130,222 U.S. agency-based mortgage-backed securities 18,813 — (799 ) 18,014 U.S. Treasury securities and obligations of U.S. government agencies 67,315 29 (1,126 ) 66,218 Total fixed maturity 461,236 7,072 (2,714 ) 465,594 Equity securities 8,503 779 — 9,282 Other investments — — — — Totals $ 469,739 $ 7,851 $ (2,714 ) $ 474,876 The gross unrealized gains and losses on, and the cost or amortized cost and fair value of, those investments classified as available-for-sale at December 31, 2016 are summarized as follows: Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Fixed maturity: States and political subdivisions $ 231,168 $ 4,340 $ (3,215 ) $ 232,293 Corporate bonds 182,350 436 (271 ) 182,515 U.S. agency-based mortgage-backed securities 10,428 17 (1,103 ) 9,342 U.S. Treasury securities and obligations of U.S. government agencies 55,925 — (978 ) 54,947 Total fixed maturity 479,871 4,793 (5,567 ) 479,097 Equity securities — 33 — 33 Other investments 10,000 3,330 — 13,330 Totals $ 489,871 $ 8,156 $ (5,567 ) $ 492,460 |
A Summary of the Company's Realized Gains and Losses on Sales, Calls or Redemptions of Investments | A summary of the Company’s realized gains and losses on sales, calls or redemptions of investments for 2017, 2016 and 2015 is as follows: Fixed Maturity Securities Available for Sale Equity Securities Other Total (in thousands) Year ended December 31, 2017 Proceeds from sales $ 14,591 $ 1 $ 13,172 $ 27,764 Gross realized investment gains $ 485 $ 1 $ — $ 486 Gross realized investment (losses) (5 ) — — (5 ) Net realized investment gains 480 1 — 481 Other, including losses on calls and redemptions (520 ) — (608 ) (1,128 ) Net realized gains (losses) on investments $ (40 ) $ 1 $ (608 ) $ (647 ) Year ended December 31, 2016 Proceeds from sales $ 54,730 $ — $ 4,609 $ 59,339 Gross realized investment gains $ 823 $ — $ 68 $ 891 Gross realized investment (losses) (1,728 ) — — (1,728 ) Net realized investment gains (losses) (905 ) — 68 (837 ) Other, including gains on calls and redemptions 274 — 69 343 Net realized gains (losses) on investments $ (631 ) $ — $ 137 $ (494 ) Year ended December 31, 2015 Proceeds from sales $ 4,432 $ — $ — $ 4,432 Gross realized investment gains $ 177 $ — $ — $ 177 Gross realized investment (losses) (162 ) — — (162 ) Net realized investment gains 15 — — 15 Impairments (2,653 ) — — (2,653 ) Other, including gains on calls and redemptions 102 — 42 144 Net realized gains (losses) on investments $ (2,536 ) $ — $ 42 $ (2,494 ) |
Major Categories of the Company's Net Investment Income | Major categories of the Company’s net investment income are summarized as follows: Year Ended December 31, 2017 2016 2015 (in thousands) Gross investment income: Fixed maturity securities $ 28,961 $ 27,837 $ 28,498 Equity securities 201 — — Short-term investments and cash and cash equivalents 1,117 348 149 Other investments 104 1,568 763 Total gross investment income 30,383 29,753 29,410 Investment expenses (1,102 ) (1,647 ) (1,508 ) Net investment income $ 29,281 $ 28,106 $ 27,902 |
Investment Securities Continuous Unrealized Loss Position | The following table summarizes the fair value and gross unrealized losses on securities, aggregated by major investment category and length of time that the individual securities have been in a continuous unrealized loss position: Less Than 12 Months 12 Months or Greater Total Fair Value of Investments with Unrealized Losses Gross Unrealized Losses Fair Value of Investments with Unrealized Losses Gross Unrealized Losses Fair Value of Investments with Unrealized Losses Gross Unrealized Losses (in thousands) December 31, 2017 Held-to-Maturity Fixed maturity securities: States and political subdivisions $ 110,698 $ 654 $ 19,895 $ 301 $ 130,593 $ 955 Corporate bonds 56,425 156 4,121 11 60,546 167 U.S. agency-based mortgage-backed securities 2,798 40 — — 2,798 40 U.S. Treasury securities and obligations of U.S. government agencies 48,153 122 3,948 76 52,101 198 Asset-backed securities — — 967 15 967 15 Total held-to-maturity securities 218,074 972 28,931 403 247,005 1,375 Available-for Sale Fixed maturity securities: States and political subdivisions $ 23,365 $ 86 $ 19,153 $ 491 $ 42,518 $ 577 Corporate bonds 82,795 171 5,888 41 88,683 212 U.S. agency-based mortgage-backed securities 14,686 59 3,328 740 18,014 799 U.S. Treasury securities and obligations of U.S. government agencies 14,730 204 47,716 922 62,446 1,126 Total available-for-sale securities 135,576 520 76,085 2,194 211,661 2,714 Total $ 353,650 $ 1,492 $ 105,016 $ 2,597 $ 458,666 $ 4,089 December 31, 2016 Held-to-Maturity Fixed maturity securities: States and political subdivisions $ 157,507 $ 3,014 $ — $ — $ 157,507 $ 3,014 Corporate bonds 44,654 202 6,292 63 50,946 265 U.S. Treasury securities and obligations of U.S. government agencies 3,968 67 — — 3,968 67 Asset-backed securities — — 1,173 59 1,173 59 Total held-to-maturity securities 206,129 3,283 7,465 122 213,594 3,405 Available-for Sale Fixed maturity securities: States and political subdivisions $ 73,505 $ 2,976 $ 4,523 $ 239 $ 78,028 $ 3,215 Corporate bonds 41,419 111 7,922 160 49,341 271 U.S. agency-based mortgage-backed securities 3,702 48 3,607 1,055 7,309 1,103 U.S. Treasury securities and obligations of U.S. government agencies 54,947 978 — — 54,947 978 Total available-for-sale securities 173,573 4,113 16,052 1,454 189,625 5,567 Total $ 379,702 $ 7,396 $ 23,517 $ 1,576 $ 403,219 $ 8,972 |
Held-to-Maturity Securities [Member] | |
Summary of Amortized Cost and Fair Value of Investments in Fixed Maturity Securities, by Contractual Maturity | A summary of the amortized cost and fair value of investments in fixed maturity securities, classified as held-to-maturity at December 31, 2017, by contractual maturity, is as follows: Amortized Cost Fair Value (in thousands) Maturity: Within one year $ 88,215 $ 88,556 After one year through five years 271,580 273,810 After five years through ten years 98,748 100,745 After ten years 159,566 164,044 U.S. agency-based mortgage-backed securities 10,260 10,845 Asset-backed securities 1,299 1,309 Totals $ 629,668 $ 639,309 |
Available-for-Sale Securities [Member] | |
Summary of Amortized Cost and Fair Value of Investments in Fixed Maturity Securities, by Contractual Maturity | A summary of the amortized cost and fair value of investments in fixed maturity securities, classified as available-for-sale at December 31, 2017, by contractual maturity, is as follows: Amortized Cost Fair Value (in thousands) Maturity: Within one year $ 76,194 $ 76,211 After one year through five years 153,483 153,092 After five years through ten years 43,442 43,606 After ten years 169,304 174,671 U.S. agency-based mortgage-backed securities 18,813 18,014 Totals $ 461,236 $ 465,594 |
Premiums Receivable (Tables)
Premiums Receivable (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [Abstract] | |
Components of Premiums Receivable | The components of premiums receivable are shown below: December 31, 2017 2016 (in thousands) Premiums receivable $ 179,460 $ 188,217 Allowance for doubtful accounts (5,226 ) (5,212 ) Premiums receivable, net $ 174,234 $ 183,005 |
Summarizes the Activity in the Allowance for Doubtful Accounts | The following summarizes the activity in the allowance for doubtful accounts: December 31, 2017 2016 2015 (in thousands) Balance, beginning of year $ 5,212 $ 4,852 $ 5,211 Provision for bad debts 1,394 1,646 806 Write-offs (1,380 ) (1,286 ) (1,165 ) Balance, end of year $ 5,226 $ 5,212 $ 4,852 |
Deferred Policy Acquisition C34
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [Abstract] | |
Schedule of Major Categories of the Deferred Policy Acquisition Costs | Major categories of the Company’s deferred policy acquisition costs are summarized as follows: December 31, 2017 2016 (in thousands) Agents’ commissions $ 15,238 $ 15,286 Premium taxes 3,395 2,578 Deferred underwriting expenses 1,618 1,436 Total deferred policy acquisition costs $ 20,251 $ 19,300 |
Schedule of the Activity in the Deferred Policy Acquisition Costs | The following summarizes the activity in the deferred policy acquisition costs: Year Ended December 31, 2017 2016 2015 (in thousands) Balance, beginning of year $ 19,300 $ 20,412 $ 19,649 Policy acquisition costs deferred 43,960 43,209 45,604 Amortization expense during the year (43,009 ) (44,321 ) (44,841 ) Balance, end of year $ 20,251 $ 19,300 $ 20,412 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consist of the following: December 31, 2017 2016 (in thousands) Land and office building $ 7,713 $ 7,515 Furniture and equipment 6,578 6,509 Software 6,856 6,739 Automobiles 74 74 21,221 20,837 Accumulated depreciation (15,093 ) (14,201 ) Property and equipment, net $ 6,128 $ 6,636 |
Schedule of Future Minimum Lease Payments for Capital Lease Obligations | Future minimum lease payments related to the capital lease obligations are detailed below (in thousands): 2018 $ 47 2019 47 2020 48 2021 4 Present value of net minimum lease payments $ 146 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [Abstract] | |
Schedule of the Effect of Reinsurance on Premiums Written and Earned | The effect of reinsurance on premiums written and earned in 2017, 2016 and 2015 was as follows: 2017 Premiums 2016 Premiums 2015 Premiums Written Earned Written Earned Written Earned (in thousands) Gross $ 350,267 $ 355,025 $ 373,055 $ 379,011 $ 386,529 $ 387,122 Ceded (8,869 ) (8,869 ) (10,307 ) (10,307 ) (11,228 ) (11,228 ) Net premiums $ 341,398 $ 346,156 $ 362,748 $ 368,704 $ 375,301 $ 375,894 |
Schedule of the Amounts Recoverable from Reinsurers | The amounts recoverable from reinsurers consist of the following: December 31, 2017 2016 (in thousands) Unpaid losses recoverable: Case basis $ 66,061 $ 49,361 Incurred but not reported 18,828 28,895 Paid losses recoverable 554 485 Experience-rated commissions recoverable 4,690 4,925 Total $ 90,133 $ 83,666 |
Schedule of Unsecured Reinsurance Recoverables from Reinsurers | Reinsurer A.M. Best Rating Amounts Recoverable as of December 31, 2017 (in thousands) Hannover Reinsurance Limited (Ireland) (1) A+ $ 36,905 Odyssey America Reinsurance Corporation A 12,464 Minnesota Workers’ Compensation Reinsurance Association (1) NR 7,761 Allianz Risk Transfer AG (Bermuda) (1) A+ 7,551 Clearwater Insurance (2) NR 5,755 Other reinsurers 19,697 Total amounts recoverable from reinsurers 90,133 Funds withheld and letters of credit related to the above recoverables (47,719 ) Total unsecured amounts recoverable from reinsurers $ 42,414 (1) Current participant in our 2018 reinsurance program. (2) Subsidiary of Fairfax Financial is no longer rated by A.M. Best. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Company's Deferred Income Tax Assets and Liabilities | The Company’s deferred income tax assets and liabilities are as follows: December 31, 2017 2016 (in thousands) Deferred income tax assets: Discounting of net unpaid loss and loss adjustment expenses $ 8,830 $ 16,035 Unearned premiums 8,466 14,483 Accrued expenses and other 2,359 3,640 State income tax 782 617 Accrued policyholder dividends 1,918 2,024 Impaired securities 42 70 Capital loss carryforward 190 15 Accrued insurance-related assessments 3,256 5,323 Net unrealized loss on securities — 265 Total deferred tax assets 25,843 42,472 Deferred income tax liabilities: Deferred policy acquisition costs (5,317 ) (8,492 ) Callable bond amortization (8 ) (10 ) Unrealized gain on securities available-for-sale (1,070 ) — Property and equipment and other (3 ) 204 Salvage and subrogation (183 ) (363 ) Total deferred income tax liabilities (6,581 ) (8,661 ) Net deferred income taxes $ 19,262 $ 33,811 |
Components of Consolidated Income Tax Expense (Benefit) | The components of consolidated income tax expense (benefit) are as follows: Year Ended December 31, 2017 2016 2015 (in thousands) Current: Federal $ 22,477 $ 35,602 $ 28,047 State 732 1,603 1,012 23,209 37,205 29,059 Deferred: Federal 12,965 (2,120 ) 1,343 State (165 ) (129 ) 103 12,800 (2,249 ) 1,446 Total $ 36,009 $ 34,956 $ 30,505 |
Income Tax Expense from Operations from the Amount Computed by Applying the U.S. Federal Income Tax Statutory Rate of 35% to Income Before Income Taxes | Income tax expense from operations is different from the amount computed by applying the U.S. federal income tax statutory rate of 35% to income before income taxes as follows: Year Ended December 31, 2017 2016 2015 (in thousands) Income tax computed at federal statutory tax rate $ 28,784 $ 39,487 $ 35,338 Tax-exempt interest, net (5,707 ) (5,370 ) (5,630 ) State income tax 311 913 762 Dividends received deduction (48 ) (125 ) (19 ) Revaluation of net deferred income tax assets 12,620 — — Other 49 51 54 $ 36,009 $ 34,956 $ 30,505 |
Loss and Loss Adjustment Expe38
Loss and Loss Adjustment Expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [Abstract] | |
Summary of Development Tables of Incurred and Paid Claims and Allocated Claim Adjustment Expenses Net of Reinsurance | Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance As of For the Years Ended December 31, December 31, 2017 (Dollars in thousands) Total IBNR Plus Expected Cumulative Development Number of Accident Unaudited (1) on Reported Claims Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Claims Reported 2008 $ 196,923 $ 200,371 $ 195,619 $ 190,905 $ 187,695 $ 184,547 $ 182,846 $ 183,608 $ 182,901 $ 182,646 $ 2,649 6,487 2009 - 185,359 188,746 188,462 187,943 184,006 182,274 177,795 176,586 177,015 3,345 5,371 2010 - - 179,156 202,479 208,035 205,769 198,861 193,029 191,000 189,403 5,805 5,971 2011 - - - 196,384 199,522 199,163 198,213 195,262 192,988 191,126 6,968 6,041 2012 - - - - 222,549 222,075 212,738 193,515 184,460 182,859 7,840 5,746 2013 - - - - - 241,810 241,811 233,656 220,457 214,701 10,501 5,762 2014 - - - - - - 268,846 268,846 249,097 235,058 13,503 5,827 2015 - - - - - - - 262,573 262,573 252,514 22,863 5,506 2016 - - - - - - - - 250,491 250,491 17,066 5,346 2017 - - - - - - - - - 244,094 7,964 4,919 Total $ 2,119,907 $ 98,504 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, (Dollars in thousands) Accident Unaudited (1) Claim Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Frequency (2) 2008 $ 47,685 $ 103,057 $ 132,515 $ 147,377 $ 157,388 $ 163,933 $ 166,814 $ 170,347 $ 171,496 $ 173,138 20.98 2009 - 42,332 96,173 123,946 142,667 150,925 155,365 158,214 159,345 160,580 19.82 2010 - - 47,520 108,714 141,029 156,974 165,834 169,565 172,426 175,019 24.94 2011 - - - 53,329 111,029 140,831 153,968 161,639 165,967 167,757 22.81 2012 - - - - 50,579 107,467 133,658 149,161 154,553 157,206 18.72 2013 - - - - - 51,396 119,507 150,304 165,994 172,479 16.54 2014 - - - - - - 53,060 119,820 153,320 169,736 14.96 2015 - - - - - - - 54,141 121,599 151,818 14.22 2016 - - - - - - - - 52,238 115,713 14.11 2017 - - - - - - - - - 56,951 13.86 Total 1,500,397 All outstanding claim liabilities before 2008, net of reinsurance 67,446 Liabilities for claims and claim adjustment expenses, net of reinsurance 686,956 (1) Data presented for these calendar years is required supplementary information, which is unaudited. (2) Frequency, as calculated above, refers to reported claims divided by gross premium earned. |
Summary of Average Annual Percentage Payout of Incurred Claims by Age Net of Reinsurance for Worker's Compensation and General Liability | The average annual percentage payout of incurred claims by age, net of reinsurance, for workers’ compensation and general liability as of December 31, 2017 is summarized below. Since workers’ compensation has long payout periods, the table below shows less than 100% in the years disclosed. This is required supplementary information, which is unaudited. Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 24.3% 29.6% 14.9% 8.1% 4.1% 2.4% 1.4% 1.3% 0.7% 0.9% |
Reconciliation of Beginning and Ending Reserve Balances, Net of Related Amounts Recoverable from Reinsurers | The following table provides a reconciliation of the beginning and ending reserve balances, net of related amounts recoverable from reinsurers, for 2017, 2016 and 2015: Year Ended December 31, 2017 2016 2015 (in thousands) Balance, beginning of period $ 742,776 $ 718,033 $ 687,602 Less amounts recoverable from reinsurers on unpaid loss and loss adjustment expenses 78,256 64,858 59,334 Net balance, beginning of period 664,520 653,175 628,268 Add incurred related to: Current accident year 244,094 250,337 262,387 Prior accident years (34,770 ) (51,306 ) (47,814 ) Total incurred 209,324 199,031 214,573 Less paid related to: Current accident year 56,951 52,085 53,955 Prior accident years 129,937 135,601 135,711 Total paid 186,888 187,686 189,666 Net balance, end of period 686,956 664,520 653,175 Add amounts recoverable from reinsurers on unpaid loss and loss adjustment expenses 84,889 78,256 64,858 Balance, end of period $ 771,845 $ 742,776 $ 718,033 |
Summary Exposures to Various Asbestos Related Claims | The following table details our exposures to various asbestos related claims: Year Ended December 31, 2017 2016 2015 (in thousands) Reserves for loss and LAE at beginning of year $ 1,487 $ 958 $ 819 Incurred losses and LAE during the current year 556 816 444 Loss and LAE payments (295 ) (287 ) (305 ) Reserves for loss and LAE at end of year $ 1,748 $ 1,487 $ 958 |
Statutory Accounting and Regu39
Statutory Accounting and Regulatory Requirements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text Block [Abstract] | |
Insurance Subsidiaries | Statutory-basis shareholders’ capital and surplus at December 31, 2017, 2016 and 2015 of the directly owned insurance subsidiary, AIIC, and the combined statutory-basis net income and realized investment gains for all AMERISAFE’s insurance subsidiaries for the three years in the period ended December 31, 2017, were as follows (in thousands): 2017 2016 2015 Capital and surplus $ 382,062 $ 394,016 $ 371,365 Net income 61,628 79,858 71,937 Net realized losses on investments (647 ) (504 ) (3,131 ) |
Stock Options and Restricted 40
Stock Options and Restricted Stock (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Options Outstanding | The following table summarizes information about the stock options outstanding under the 2005 Incentive Plan at December 31, 2015, 2016 and 2017: Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (in years) Outstanding at January 1, 2015 282,083 11.30 3.6 Granted — — — Exercised (193,204 ) 9.55 — Canceled, forfeited, or expired — — — Outstanding at December 31, 2015 88,879 12.10 4.3 Exercisable at December 31, 2015 88,879 12.10 4.3 Outstanding at January 1, 2016 88,879 12.10 4.3 Granted — — — Exercised (68,879 ) 12.14 3.3 Canceled, forfeited, or expired — — — Outstanding at December 31, 2016 20,000 8.71 3.1 Exercisable at December 31, 2016 20,000 8.71 3.1 Outstanding at January 1, 2017 20,000 8.71 3.1 Granted — — — Exercised — — — Canceled, forfeited, or expired — — — Outstanding at December 31, 2017 20,000 5.21 2.1 Exercisable at December 31, 2017 20,000 5.21 2.1 |
Weighted Average Grant Date Fair Values of Options Granted | 2017 2016 2015 (in thousands) Cash received from option exercises $ — $ 837 $ 1,844 Total tax benefits realized for tax deductions from options exercised — 833 2,109 Total intrinsic value of options exercised — 2,967 6,969 Grant date fair value of options vested — — — Aggregate intrinsic value of vested options outstanding 1,128 1,073 3,448 |
Restricted Stock Outstanding | The following table summarizes information about the restricted stock outstanding under the 2005 Incentive Plan at December 31, 2017: Shares Weighted- Average Grant- Date Fair Value per Share Nonvested balance at January 1, 2015 2,400 27.35 Granted — — Vested (800 ) 27.35 Forfeited — — Nonvested balance at December 31, 2015 1,600 27.35 Granted — — Vested (800 ) 27.35 Forfeited — — Nonvested balance at December 31, 2016 800 27.35 Granted — — Vested (800 ) 27.35 Forfeited — — Nonvested balance at December 31, 2017 — — The following table summarizes information about the restricted stock outstanding under the 2012 Incentive Plan at December 31, 2017: Shares Weighted- AverageGrant- Date Fair Value per Share Nonvested balance at January 1, 2015 72,921 34.59 Granted 50,461 45.80 Vested (27,537 ) 37.27 Forfeited (18,317 ) 35.48 Nonvested balance at December 31, 2015 77,528 40.57 Granted 27,077 54.44 Vested (26,294 ) 45.18 Forfeited (1,919 ) — Nonvested balance at December 31, 2016 76,392 43.91 Granted 9,326 55.58 Vested (24,839 ) 43.89 Forfeited — — Nonvested balance at December 31, 2017 60,879 45.71 The following table summarizes information about the restricted stock outstanding under the Non-Employee Director Restricted Stock Plan at December 31, 2017: Shares Weighted- Average Grant- Date Fair Value per Share Nonvested balance at January 1, 2015 5,229 37.27 Granted 7,112 44.26 Vested (5,229 ) 37.27 Forfeited — — Nonvested balance at December 31, 2015 7,112 44.26 Granted 5,952 63.57 Vested (7,488 ) 44.54 Forfeited — — Nonvested balance at December 31, 2016 5,576 64.50 Granted 6,454 54.20 Vested (5,576 ) 64.50 Forfeited — — Nonvested balance at December 31, 2017 6,454 54.20 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Earnings Per Share | The calculation of basic and diluted EPS for the years ended December 31, 2017, 2016 and 2015 are presented below. For the Year Ended December 31, 2017 2016 2015 (in thousands, except earnings per share amounts) Basic EPS: Net income available to common shareholders – basic $ 46,231 $ 77,865 $ 70,462 Basic weighted-average common shares 19,165 19,106 18,941 Basic earnings per share $ 2.41 $ 4.08 $ 3.72 Diluted EPS: Net income available to common shareholders - diluted $ 46,231 $ 77,865 $ 70,462 Diluted weighted average common shares: Weighted average common shares 19,165 19,106 18,941 Stock options and restricted stock 81 98 178 Diluted weighted average common shares 19,246 19,204 19,119 Diluted earnings per common share $ 2.40 $ 4.05 $ 3.69 |
Calculation of Percentage of Net Income Allocable to Common Shareholders | The table below sets forth the reconciliation of the weighted average shares used for the basic and diluted EPS calculation. Years Ended 2017 2016 2015 Basic weighted average common shares 19,165,489 19,105,806 18,941,077 Add: Other common shares eligible for common dividends: Weighted average restricted shares and stock options (including tax benefit component) 80,377 97,844 178,109 Diluted weighted average common shares 19,245,866 19,203,650 19,119,186 |
Comprehensive Income and Accu42
Comprehensive Income and Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income (AOCI) | The following table illustrates the changes in the balance of each component of accumulated other comprehensive income (loss) for each period presented in the financial statements. Year Ended December 31, 2017 2016 2015 (in thousands) Beginning balance $ (492 ) $ 2,587 $ 2,810 Other comprehensive income (loss) before reclassification 4,823 (3,231 ) (1,584 ) Amounts reclassified from accumulated other comprehensive income (loss) (719 ) 152 1,361 Net current period other comprehensive income (loss) 4,104 (3,079 ) (223 ) Ending balance $ 3,612 $ (492 ) $ 2,587 |
Reclassification Out of Accumulated Other Comprehensive Income | The effects of reclassifications out of accumulated other comprehensive income by the respective line items of net income are presented in the following table. Component of Accumulated Other Comprehensive Income (Loss) Year Ended December 31, Affected line item in the statement of income 2017 2016 2015 (in thousands) Unrealized gains (losses) on available-for- sale securities $ 1,106 $ (234 ) $ (494 ) Net realized losses on investments Other-than-temporary impairment — — (1,600 ) Net realized losses on investments 1,106 (234 ) (2,094 ) Income before income taxes (387 ) 82 733 Income tax expense $ 719 $ (152 ) $ (1,361 ) Net income |
Other Comprehensive Income | Pre-Tax Amount Tax Expense Net-of-Tax Amount (in thousands) December 31, 2017 Unrealized gain on securities: Unrealized gain on available-for-sale securities $ 6,960 $ 2,137 $ 4,823 Reclassification adjustment for losses realized in net income (1,106 ) (387 ) (719 ) Net unrealized gain 5,854 1,750 4,104 Other comprehensive income $ 5,854 $ 1,750 $ 4,104 December 31, 2016 Unrealized loss on securities: Unrealized loss on available-for-sale securities $ (4,908 ) $ (1,718 ) $ (3,190 ) Less amortization of differences between fair value and amortized cost for fixed maturity security transfer (63 ) (22 ) (41 ) Reclassification adjustment for gains realized in net income 234 82 152 Net unrealized loss (4,737 ) (1,658 ) (3,079 ) Other comprehensive loss $ (4,737 ) $ (1,658 ) $ (3,079 ) December 31, 2015 Unrealized loss on securities: Unrealized loss on available-for-sale securities $ (2,572 ) $ (900 ) $ (1,672 ) Change in unrealized losses on available-for-sale securities with OTTI 176 62 114 Less amortization of differences between fair value and amortized cost for fixed maturity security transfer (40 ) (14 ) (26 ) Reclassification adjustment for gains realized in net income 2,093 732 1,361 Net unrealized loss (343 ) (120 ) (223 ) Other comprehensive loss $ (343 ) $ (120 ) $ (223 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Fair Value of Annuities | The following table summarizes (in thousands) the fair value of the annuities at December 31, 2017, that the Company has purchased to satisfy its obligations. Life Insurance Company A.M. Best Rating Statement Value of Annuities Exceeding 1% of Statutory Surplus Pacific Life and Annuity Company A+ $ 17,068 American General Life Insurance Company A 14,952 New York Life Insurance Company A++ 11,312 Travelers Life and Annuity A 10,471 Metropolitan Life Insurance Company A+ 6,993 John Hancock Life Insurance Company A+ 6,284 Athene Annuity and Life Company A 4,760 United of Omaha A+ 4,375 Other 19,721 $ 95,936 |
Future Minimum Lease Payments | The Company leases equipment and office space under noncancelable operating leases. At December 31, 2017, future minimum lease payments are as follows (in thousands): 2018 $ 135 2019 47 2020 37 2021 37 2022 37 $ 293 |
Concentration of Operations (Ta
Concentration of Operations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text Block [Abstract] | |
Net Premiums Earned for the Top Ten States | Net premiums earned during 2017, 2016 and 2015 for the top ten states in 2017 and all others are shown below: 2017 2016 2015 Dollars Percent Dollars Percent Dollars Percent (Dollars in thousands) Georgia $ 40,801 11.8 % $ 38,168 10.4 % $ 40,497 10.8 % Florida 34,615 10.0 % 29,051 7.9 % 24,792 6.6 % Pennsylvania 32,931 9.5 % 39,460 10.7 % 36,294 9.7 % Louisiana 25,422 7.3 % 30,426 8.3 % 38,874 10.3 % Illinois 22,169 6.4 % 25,796 7.0 % 23,285 6.2 % North Carolina 18,388 5.3 % 20,784 5.6 % 20,062 5.3 % Virginia 16,298 4.7 % 16,599 4.5 % 15,656 4.2 % Minnesota 13,968 4.0 % 15,130 4.1 % 14,618 3.9 % Wisconsin 13,790 4.0 % 13,544 3.7 % 11,203 3.0 % South Carolina 13,327 3.9 % 13,897 3.8 % 12,955 3.4 % All others 114,447 33.1 % 125,849 34.0 % 137,658 36.6 % Total net premiums earned $ 346,156 100.0 % $ 368,704 100.0 % $ 375,894 100.0 % |
Fair Values of Financial Inst45
Fair Values of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Summary of Carrying or Reported Values and Corresponding Fair Values for Financial Instruments | The following table summarizes the carrying or reported values and corresponding fair values for financial instruments: December 31, 2017 2016 Carrying Amount Fair Value Carrying Amount Fair Value (in thousands) Assets: Fixed maturity securities—held to maturity $ 629,668 $ 639,309 $ 562,434 $ 568,931 Fixed maturity securities—available for sale 465,594 465,594 479,097 479,097 Equity securities 9,282 9,282 33 33 Short-term investments 25,770 25,770 29,580 29,580 Other investments — — 13,330 13,330 Cash and cash equivalents 55,559 55,559 58,936 58,936 |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis as of December 31, 2017 and 2016 are as follows: December 31, 2017 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value (in thousands) Financial instruments carried at fair value, classified as part of: Securities available for sale—fixed maturity: States and political subdivisions $ — $ 251,140 $ — $ 251,140 Corporate bonds — 130,222 — 130,222 U.S. agency-based mortgage-backed securities — 18,014 — 18,014 U.S. Treasury securities and obligations of U.S. government agencies 66,218 — — 66,218 Total available for sale—fixed maturity 66,218 399,376 — 465,594 Securities available for sale—equity: Domestic common stock 9,248 — 34 9,282 Total available for sale $ 75,466 $ 399,376 $ 34 $ 474,876 December 31, 2016 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value (in thousands) Financial instruments carried at fair value, classified as part of: Securities available for sale—fixed maturity: States and political subdivisions $ — $ 232,293 $ — $ 232,293 Corporate bonds — 182,515 — 182,515 U.S. agency-based mortgage-backed securities — 9,342 — 9,342 U.S. Treasury securities and obligations of U.S. government agencies 54,947 — — 54,947 Total available for sale—fixed maturity 54,947 424,150 — 479,097 Securities available for sale—equity: Domestic common stock 33 — — 33 Total available for sale $ 54,980 $ 424,150 $ — $ 479,130 |
Schedule of Assets and Liabilities Measured at Amortized Cost | Assets and liabilities measured at amortized cost as of December 31, 2017 and 2016 are as follows: December 31, 2017 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value (in thousands) Securities held-to-maturity—fixed maturity: States and political subdivisions $ — $ 469,101 $ — $ 469,101 Corporate bonds — 100,047 — 100,047 Commercial mortgage-backed securities — — — — U.S. agency-based mortgage-backed securities — 10,845 — 10,845 U.S. Treasury securities 6,750 — — 6,750 Obligations of U.S. government agencies — 51,257 — 51,257 Asset-backed securities — 1,309 — 1,309 Total held-to-maturity $ 6,750 $ 632,559 $ — $ 639,309 December 31, 2016 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value (in thousands) Securities held-to-maturity—fixed maturity: States and political subdivisions $ — $ 399,483 $ — $ 399,483 Corporate bonds — 144,016 — 144,016 Commercial mortgage-backed securities — 70 — 70 U.S. agency-based mortgage-backed securities — 10,915 — 10,915 U.S. Treasury securities 6,779 — — 6,779 Obligations of U.S. government agencies — 5,637 — 5,637 Asset-backed securities — 2,031 — 2,031 Total held-to-maturity $ 6,779 $ 562,152 $ — $ 568,931 |
Summary of Information Regarding Changes in Fair Value of Assets Measured at Fair Value | The following table presents summary information regarding changes in the fair value of assets measured at fair value using Level 3 input. December 31, 2017 December 31, 2016 (in thousands) Balance, beginning of period $ — $ — Transfer into Level 3 34 — Balance, end of period $ 34 $ — |
Quarterly Financial Data (Una46
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Financial Data | The following table represents unaudited quarterly financial data for the years ended December 31, 2017 and 2016. Three Months Ended March 31 June 30 September 30 December 31 (in thousands, except per share amounts) 2017 Net premiums earned $ 90,912 $ 82,749 $ 85,118 $ 87,377 Net investment income 6,710 7,471 7,788 7,312 Net realized gains (losses) on investments (181 ) (388 ) (192 ) 114 Total revenues 97,542 89,925 92,804 94,937 Income before income taxes 18,733 22,151 23,556 17,800 Net income 13,524 15,481 16,577 649 Net income available to common shareholders 13,524 15,481 16,577 649 Earnings per share: Basic $ 0.71 $ 0.81 $ 0.86 $ 0.03 Diluted $ 0.70 $ 0.81 $ 0.86 $ 0.03 Comprehensive income 14,476 17,437 17,194 1,228 Extraordinary cash dividends declared per common share $ — $ — $ — $ 3.50 Cash dividends declared per common share $ 0.20 $ 0.20 $ 0.20 $ 0.20 2016 Net premiums earned $ 95,961 $ 90,728 $ 89,918 $ 92,097 Net investment income 6,044 6,201 8,006 7,855 Net realized gains (losses) on investments 248 545 181 (1,468 ) Total revenues 102,335 97,563 98,206 98,558 Income before income taxes 34,395 24,615 26,027 27,784 Net income 24,257 16,639 17,896 19,073 Net income available to common shareholders 24,257 16,639 17,896 19,073 Earnings per share: Basic $ 1.27 $ 0.87 $ 0.94 $ 1.00 Diluted $ 1.27 $ 0.87 $ 0.93 $ 0.99 Comprehensive income 27,051 19,568 16,183 11,985 Extraordinary cash dividends declared per common share $ — $ — $ — $ 3.25 Cash dividends declared per common share $ 0.18 $ 0.18 $ 0.18 $ 0.18 |
Summary of Significant Accoun47
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule Of Accounting Policies [Line Items] | |||
Percentage of comparable consolidated amounts | 95.00% | 95.00% | 95.00% |
Original maturity of cash equivalent | 90 days | ||
Experience rated commission and other operating costs | $ 200,000 | $ 0 | $ 300,000 |
Cash received, under reinsurance agreements | 200,000 | ||
Commutation payment adjusted through offset against balance of funds | 25,400,000 | ||
Advertising expense | $ 500,000 | $ 700,000 | $ 700,000 |
Assessment Related premium Payment period | 1 year | ||
Assessment Related loss Payment period | 1 year | ||
Land and Office Building [Member] | |||
Schedule Of Accounting Policies [Line Items] | |||
Estimated useful life of assets | 39 years | ||
Limited Partnership [Member] | |||
Schedule Of Accounting Policies [Line Items] | |||
Unfunded commitments | $ 0 | ||
Minimum [Member] | |||
Schedule Of Accounting Policies [Line Items] | |||
Short-term investments maturity period | 90 days | ||
Minimum [Member] | Other Fixed Assets [Member] | |||
Schedule Of Accounting Policies [Line Items] | |||
Estimated useful life of assets | 3 years | ||
Maximum [Member] | |||
Schedule Of Accounting Policies [Line Items] | |||
Short-term investments maturity period | one year | ||
Maximum [Member] | Other Fixed Assets [Member] | |||
Schedule Of Accounting Policies [Line Items] | |||
Estimated useful life of assets | 7 years |
Investments - Additional Inform
Investments - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2017USD ($)Security | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Investment [Line Items] | |||
Short-term investments | $ 25,770,000 | $ 29,580,000 | |
Sale of securities classified as held to maturity | 3,000,000 | ||
Gain of held-to-maturity investment securities | 100,000 | ||
Individual fixed maturity held in unrealized loss position | Security | 299 | ||
Individual fixed maturity held in unrealized loss position longer than 12 months | Security | 61 | ||
Impairment losses recognized | $ 0 | $ 2,653,000 | |
Held-to-Maturity Securities [Member] | |||
Investment [Line Items] | |||
Investments on deposit with regulatory agencies | 18,700,000 | ||
Available-for-Sale Securities [Member] | |||
Investment [Line Items] | |||
Investments on deposit with regulatory agencies | 2,400,000 | ||
Corporate Bonds [Member] | |||
Investment [Line Items] | |||
Short-term investments | 2,800,000 | ||
U.S. Treasury Securities and Obligations of U.S. Government Agencies [Member] | |||
Investment [Line Items] | |||
Short-term investments | $ 25,800,000 | 21,900,000 | |
States and Political Subdivisions [Member] | |||
Investment [Line Items] | |||
Short-term investments | $ 4,900,000 |
Investments - Gross Unrealized
Investments - Gross Unrealized Gains and Losses and Amortized Cost and Fair Value of Investments Classified as Held-to-Maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Investment [Line Items] | ||
Held-to-maturity, Amortized Cost, Totals | $ 629,668 | $ 562,434 |
Held-to-Maturity, Gross Unrealized Gains | 11,016 | 9,902 |
Held-to-Maturity, Gross Unrealized Losses | (1,375) | (3,405) |
Held-to-Maturity, Fair Value | 639,309 | 568,931 |
States and Political Subdivisions [Member] | ||
Investment [Line Items] | ||
Held-to-maturity, Amortized Cost, Totals | 460,428 | 394,875 |
Held-to-Maturity, Gross Unrealized Gains | 9,628 | 7,622 |
Held-to-Maturity, Gross Unrealized Losses | (955) | (3,014) |
Held-to-Maturity, Fair Value | 469,101 | 399,483 |
Corporate Bonds [Member] | ||
Investment [Line Items] | ||
Held-to-maturity, Amortized Cost, Totals | 100,024 | 143,858 |
Held-to-Maturity, Gross Unrealized Gains | 190 | 423 |
Held-to-Maturity, Gross Unrealized Losses | (167) | (265) |
Held-to-Maturity, Fair Value | 100,047 | 144,016 |
Commercial Mortgage-Backed Securities [Member] | ||
Investment [Line Items] | ||
Held-to-maturity, Amortized Cost, Totals | 70 | |
Held-to-Maturity, Fair Value | 70 | |
U.S. Agency-Based Mortgage-Backed Securities [Member] | ||
Investment [Line Items] | ||
Held-to-maturity, Amortized Cost, Totals | 10,260 | 9,967 |
Held-to-Maturity, Gross Unrealized Gains | 625 | 948 |
Held-to-Maturity, Gross Unrealized Losses | (40) | |
Held-to-Maturity, Fair Value | 10,845 | 10,915 |
U.S. Treasury Securities and Obligations of U.S. Government Agencies [Member] | ||
Investment [Line Items] | ||
Held-to-maturity, Amortized Cost, Totals | 57,657 | 11,737 |
Held-to-Maturity, Gross Unrealized Gains | 548 | 746 |
Held-to-Maturity, Gross Unrealized Losses | (198) | (67) |
Held-to-Maturity, Fair Value | 58,007 | 12,416 |
Asset-Backed Securities [Member] | ||
Investment [Line Items] | ||
Held-to-maturity, Amortized Cost, Totals | 1,299 | 1,927 |
Held-to-Maturity, Gross Unrealized Gains | 25 | 163 |
Held-to-Maturity, Gross Unrealized Losses | (15) | (59) |
Held-to-Maturity, Fair Value | $ 1,309 | $ 2,031 |
Investments - Gross Unrealize50
Investments - Gross Unrealized Gains and Losses and Cost or Amortized Cost and Fair Value of Investments Classified as Available-for-Sale (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Investment [Line Items] | ||
Available-for-Sale, Cost or Amortized Cost | $ 469,739 | $ 489,871 |
Available-for-Sale, Gross Unrealized Gains | 7,851 | 8,156 |
Available-for-Sale, Gross Unrealized Losses | (2,714) | (5,567) |
Available-for-Sale, Fair Value | 474,876 | 492,460 |
Other Investments [Member] | ||
Investment [Line Items] | ||
Available-for-Sale, Cost or Amortized Cost | 10,000 | |
Available-for-Sale, Gross Unrealized Gains | 3,330 | |
Available-for-Sale, Fair Value | 13,330 | |
Total Fixed Maturity [Member] | ||
Investment [Line Items] | ||
Available-for-Sale, Cost or Amortized Cost | 461,236 | 479,871 |
Available-for-Sale, Gross Unrealized Gains | 7,072 | 4,793 |
Available-for-Sale, Gross Unrealized Losses | (2,714) | (5,567) |
Available-for-Sale, Fair Value | 465,594 | 479,097 |
States and Political Subdivisions [Member] | ||
Investment [Line Items] | ||
Available-for-Sale, Cost or Amortized Cost | 244,898 | 231,168 |
Available-for-Sale, Gross Unrealized Gains | 6,819 | 4,340 |
Available-for-Sale, Gross Unrealized Losses | (577) | (3,215) |
Available-for-Sale, Fair Value | 251,140 | 232,293 |
Corporate Bonds [Member] | ||
Investment [Line Items] | ||
Available-for-Sale, Cost or Amortized Cost | 130,210 | 182,350 |
Available-for-Sale, Gross Unrealized Gains | 224 | 436 |
Available-for-Sale, Gross Unrealized Losses | (212) | (271) |
Available-for-Sale, Fair Value | 130,222 | 182,515 |
U.S. Agency-Based Mortgage-Backed Securities [Member] | ||
Investment [Line Items] | ||
Available-for-Sale, Cost or Amortized Cost | 18,813 | 10,428 |
Available-for-Sale, Gross Unrealized Gains | 17 | |
Available-for-Sale, Gross Unrealized Losses | (799) | (1,103) |
Available-for-Sale, Fair Value | 18,014 | 9,342 |
U.S. Treasury Securities and Obligations of U.S. Government Agencies [Member] | ||
Investment [Line Items] | ||
Available-for-Sale, Cost or Amortized Cost | 67,315 | 55,925 |
Available-for-Sale, Gross Unrealized Gains | 29 | |
Available-for-Sale, Gross Unrealized Losses | (1,126) | (978) |
Available-for-Sale, Fair Value | 66,218 | 54,947 |
Equity Securities [Member] | ||
Investment [Line Items] | ||
Available-for-Sale, Cost or Amortized Cost | 8,503 | |
Available-for-Sale, Gross Unrealized Gains | 779 | 33 |
Available-for-Sale, Fair Value | $ 9,282 | $ 33 |
Investments - Summary of Amorti
Investments - Summary of Amortized Cost and Fair Value of Investments in Fixed Maturity Securities, Classified as Held-to-Maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Investment [Line Items] | ||
Within one year, Amortized Cost | $ 88,215 | |
After one year through five years, Amortized Cost | 271,580 | |
After five years through ten years, Amortized Cost | 98,748 | |
After ten years, Amortized Cost | 159,566 | |
Held-to-maturity, Amortized Cost, Totals | 629,668 | $ 562,434 |
Within one year, Fair Value | 88,556 | |
After one year through five years, Fair Value | 273,810 | |
After five years through ten years, Fair Value | 100,745 | |
After ten years, Fair Value | 164,044 | |
Held-to-maturity, Fair Value, Totals | 639,309 | $ 568,931 |
U.S. Agency-Based Mortgage-Backed Securities [Member] | ||
Investment [Line Items] | ||
Held-to-maturity, Amortized Cost | 10,260 | |
Held-to-maturity, Fair Value | 10,845 | |
Asset-Backed Securities [Member] | ||
Investment [Line Items] | ||
Held-to-maturity, Amortized Cost | 1,299 | |
Held-to-maturity, Fair Value | $ 1,309 |
Investments - Summary of Amor52
Investments - Summary of Amortized Cost and Fair Value of Investments in Fixed Maturity Securities, Classified as Available-for-Sale (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Investment [Line Items] | ||
Within one year, Amortized Cost | $ 76,194 | |
After one year through five years, Amortized Cost | 153,483 | |
After five years through ten years, Amortized Cost | 43,442 | |
After ten years, Amortized Cost | 169,304 | |
Total, Amortized Cost | 461,236 | $ 479,871 |
Within one year, Fair Value | 76,211 | |
After one year through five years, Fair Value | 153,092 | |
After five years through ten years, Fair Value | 43,606 | |
After ten years, Fair Value | 174,671 | |
Total, Fair Value | 465,594 | $ 479,097 |
U.S. Agency-Based Mortgage-Backed Securities [Member] | ||
Investment [Line Items] | ||
Available-for-sale securities, Amortized Cost | 18,813 | |
Available-for-sale securities, Fair value | $ 18,014 |
Investments - A Summary of the
Investments - A Summary of the Company's Realized Gains and Losses on Sales, Calls or Redemptions of Investments (Detail) - 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 | |
Investment [Line Items] | |||||||||||
Proceeds from sales | $ 27,764,000 | $ 59,339,000 | $ 4,432,000 | ||||||||
Gross realized investment gains | 486,000 | 891,000 | 177,000 | ||||||||
Gross realized investment (losses) | (5,000) | (1,728,000) | (162,000) | ||||||||
Net realized investment gains (losses) | 481,000 | (837,000) | 15,000 | ||||||||
Impairments | 0 | (2,653,000) | |||||||||
Other, including gains (losses) on calls and redemptions | (1,128,000) | 343,000 | 144,000 | ||||||||
Net realized gains (losses) on investments | $ 114,000 | $ (192,000) | $ (388,000) | $ (181,000) | $ (1,468,000) | $ 181,000 | $ 545,000 | $ 248,000 | (647,000) | (494,000) | (2,494,000) |
Fixed Maturity Securities Available for Sale [Member] | |||||||||||
Investment [Line Items] | |||||||||||
Proceeds from sales | 14,591,000 | 54,730,000 | 4,432,000 | ||||||||
Gross realized investment gains | 485,000 | 823,000 | 177,000 | ||||||||
Gross realized investment (losses) | (5,000) | (1,728,000) | (162,000) | ||||||||
Net realized investment gains (losses) | 480,000 | (905,000) | 15,000 | ||||||||
Impairments | (2,653,000) | ||||||||||
Other, including gains (losses) on calls and redemptions | (520,000) | 274,000 | 102,000 | ||||||||
Net realized gains (losses) on investments | (40,000) | (631,000) | (2,536,000) | ||||||||
Equity Securities [Member] | |||||||||||
Investment [Line Items] | |||||||||||
Proceeds from sales | 1,000 | ||||||||||
Gross realized investment gains | 1,000 | ||||||||||
Net realized investment gains (losses) | 1,000 | ||||||||||
Net realized gains (losses) on investments | 1,000 | ||||||||||
Other [Member] | |||||||||||
Investment [Line Items] | |||||||||||
Proceeds from sales | 13,172,000 | 4,609,000 | |||||||||
Gross realized investment gains | 68,000 | ||||||||||
Net realized investment gains (losses) | 68,000 | ||||||||||
Other, including gains (losses) on calls and redemptions | (608,000) | 69,000 | 42,000 | ||||||||
Net realized gains (losses) on investments | $ (608,000) | $ 137,000 | $ 42,000 |
Investments - Major Categories
Investments - Major Categories of the Company's Net Investment Income (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 | |
Investment [Line Items] | |||||||||||
Total gross investment income | $ 30,383 | $ 29,753 | $ 29,410 | ||||||||
Investment expenses | (1,102) | (1,647) | (1,508) | ||||||||
Net investment income | $ 7,312 | $ 7,788 | $ 7,471 | $ 6,710 | $ 7,855 | $ 8,006 | $ 6,201 | $ 6,044 | 29,281 | 28,106 | 27,902 |
Fixed Maturity Securities Available for Sale [Member] | |||||||||||
Investment [Line Items] | |||||||||||
Total gross investment income | 28,961 | 27,837 | 28,498 | ||||||||
Equity Securities [Member] | |||||||||||
Investment [Line Items] | |||||||||||
Total gross investment income | 201 | ||||||||||
Short-term Investments [Member] | |||||||||||
Investment [Line Items] | |||||||||||
Total gross investment income | 1,117 | 348 | 149 | ||||||||
Other Investments [Member] | |||||||||||
Investment [Line Items] | |||||||||||
Total gross investment income | $ 104 | $ 1,568 | $ 763 |
Investments - Investment Securi
Investments - Investment Securities Continuous Unrealized Loss Position (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Investment [Line Items] | ||
Held-to-maturity securities, Fair Value of Investments with Unrealized Losses, Less Than 12 Months | $ 218,074 | $ 206,129 |
Held-to-maturity securities, Gross Unrealized Losses, Less Than 12 Months | 972 | 3,283 |
Held-to-maturity securities, Fair Value of Investments with Unrealized Losses, 12 Months or Greater | 28,931 | 7,465 |
Held-to-maturity securities, Gross Unrealized Losses, 12 Months or Greater | 403 | 122 |
Held-to-maturity securities, Fair Value of Investments with Unrealized Losses, Total | 247,005 | 213,594 |
Held-to-maturity securities, Gross Unrealized Losses, Total | 1,375 | 3,405 |
Available-for Sale, Fair value of Investments with Unrealized Losses, Less Than 12 Months | 135,576 | 173,573 |
Available-for Sale, Gross Unrealized Losses, Less Than 12 Months | 520 | 4,113 |
Available-for Sale, Fair Value of Investments with Unrealized Losses, 12 Months or Greater | 76,085 | 16,052 |
Available-for Sale, Gross Unrealized Losses, 12 Months or Greater | 2,194 | 1,454 |
Available-for Sale, Fair Value of Investments with Unrealized Losses, Total | 211,661 | 189,625 |
Available-for Sale, Gross Unrealized Losses, Total | 2,714 | 5,567 |
Fair Value of Investments with Unrealized Losses, Less Than 12 months | 353,650 | 379,702 |
Gross Unrealized Loss, Less Than 12 Months | 1,492 | 7,396 |
Fair Value of Investments with Unrealized Losses, 12 Months or Greater | 105,016 | 23,517 |
Gross Unrealized Losses, 12 Months or Greater | 2,597 | 1,576 |
Fair Value of Investments with Unrealized Losses, Total | 458,666 | 403,219 |
Gross Unrealized Losses, Total | 4,089 | 8,972 |
States and Political Subdivisions [Member] | ||
Investment [Line Items] | ||
Held-to-maturity securities, Fair Value of Investments with Unrealized Losses, Less Than 12 Months | 110,698 | 157,507 |
Held-to-maturity securities, Gross Unrealized Losses, Less Than 12 Months | 654 | 3,014 |
Held-to-maturity securities, Fair Value of Investments with Unrealized Losses, 12 Months or Greater | 19,895 | |
Held-to-maturity securities, Gross Unrealized Losses, 12 Months or Greater | 301 | |
Held-to-maturity securities, Fair Value of Investments with Unrealized Losses, Total | 130,593 | 157,507 |
Held-to-maturity securities, Gross Unrealized Losses, Total | 955 | 3,014 |
Available-for Sale, Fair value of Investments with Unrealized Losses, Less Than 12 Months | 23,365 | 73,505 |
Available-for Sale, Gross Unrealized Losses, Less Than 12 Months | 86 | 2,976 |
Available-for Sale, Fair Value of Investments with Unrealized Losses, 12 Months or Greater | 19,153 | 4,523 |
Available-for Sale, Gross Unrealized Losses, 12 Months or Greater | 491 | 239 |
Available-for Sale, Fair Value of Investments with Unrealized Losses, Total | 42,518 | 78,028 |
Available-for Sale, Gross Unrealized Losses, Total | 577 | 3,215 |
Corporate Bonds [Member] | ||
Investment [Line Items] | ||
Held-to-maturity securities, Fair Value of Investments with Unrealized Losses, Less Than 12 Months | 56,425 | 44,654 |
Held-to-maturity securities, Gross Unrealized Losses, Less Than 12 Months | 156 | 202 |
Held-to-maturity securities, Fair Value of Investments with Unrealized Losses, 12 Months or Greater | 4,121 | 6,292 |
Held-to-maturity securities, Gross Unrealized Losses, 12 Months or Greater | 11 | 63 |
Held-to-maturity securities, Fair Value of Investments with Unrealized Losses, Total | 60,546 | 50,946 |
Held-to-maturity securities, Gross Unrealized Losses, Total | 167 | 265 |
Available-for Sale, Fair value of Investments with Unrealized Losses, Less Than 12 Months | 82,795 | 41,419 |
Available-for Sale, Gross Unrealized Losses, Less Than 12 Months | 171 | 111 |
Available-for Sale, Fair Value of Investments with Unrealized Losses, 12 Months or Greater | 5,888 | 7,922 |
Available-for Sale, Gross Unrealized Losses, 12 Months or Greater | 41 | 160 |
Available-for Sale, Fair Value of Investments with Unrealized Losses, Total | 88,683 | 49,341 |
Available-for Sale, Gross Unrealized Losses, Total | 212 | 271 |
Asset-Backed Securities [Member] | ||
Investment [Line Items] | ||
Held-to-maturity securities, Fair Value of Investments with Unrealized Losses, 12 Months or Greater | 967 | 1,173 |
Held-to-maturity securities, Gross Unrealized Losses, 12 Months or Greater | 15 | 59 |
Held-to-maturity securities, Fair Value of Investments with Unrealized Losses, Total | 967 | 1,173 |
Held-to-maturity securities, Gross Unrealized Losses, Total | 15 | 59 |
U.S. Agency-Based Mortgage-Backed Securities [Member] | ||
Investment [Line Items] | ||
Held-to-maturity securities, Fair Value of Investments with Unrealized Losses, Less Than 12 Months | 2,798 | |
Held-to-maturity securities, Gross Unrealized Losses, Less Than 12 Months | 40 | |
Held-to-maturity securities, Fair Value of Investments with Unrealized Losses, Total | 2,798 | |
Held-to-maturity securities, Gross Unrealized Losses, Total | 40 | |
Available-for Sale, Fair value of Investments with Unrealized Losses, Less Than 12 Months | 14,686 | 3,702 |
Available-for Sale, Gross Unrealized Losses, Less Than 12 Months | 59 | 48 |
Available-for Sale, Fair Value of Investments with Unrealized Losses, 12 Months or Greater | 3,328 | 3,607 |
Available-for Sale, Gross Unrealized Losses, 12 Months or Greater | 740 | 1,055 |
Available-for Sale, Fair Value of Investments with Unrealized Losses, Total | 18,014 | 7,309 |
Available-for Sale, Gross Unrealized Losses, Total | 799 | 1,103 |
U.S. Treasury Securities and Obligations of U.S. Government Agencies [Member] | ||
Investment [Line Items] | ||
Held-to-maturity securities, Fair Value of Investments with Unrealized Losses, Less Than 12 Months | 48,153 | 3,968 |
Held-to-maturity securities, Gross Unrealized Losses, Less Than 12 Months | 122 | 67 |
Held-to-maturity securities, Fair Value of Investments with Unrealized Losses, 12 Months or Greater | 3,948 | |
Held-to-maturity securities, Gross Unrealized Losses, 12 Months or Greater | 76 | |
Held-to-maturity securities, Fair Value of Investments with Unrealized Losses, Total | 52,101 | 3,968 |
Held-to-maturity securities, Gross Unrealized Losses, Total | 198 | 67 |
Available-for Sale, Fair value of Investments with Unrealized Losses, Less Than 12 Months | 14,730 | 54,947 |
Available-for Sale, Gross Unrealized Losses, Less Than 12 Months | 204 | 978 |
Available-for Sale, Fair Value of Investments with Unrealized Losses, 12 Months or Greater | 47,716 | |
Available-for Sale, Gross Unrealized Losses, 12 Months or Greater | 922 | |
Available-for Sale, Fair Value of Investments with Unrealized Losses, Total | 62,446 | 54,947 |
Available-for Sale, Gross Unrealized Losses, Total | $ 1,126 | $ 978 |
Premiums Receivable - Component
Premiums Receivable - Components of Premiums Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Premiums Receivable, Net [Abstract] | ||||
Premiums receivable | $ 179,460 | $ 188,217 | ||
Allowance for doubtful accounts | (5,226) | (5,212) | $ (4,852) | $ (5,211) |
Premiums receivable, net | $ 174,234 | $ 183,005 |
Premiums Receivable - Summarize
Premiums Receivable - Summarizes the Activity in the Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Premiums Receivable, Allowance for Doubtful Accounts [Roll Forward] | |||
Balance, beginning of year | $ 5,212 | $ 4,852 | $ 5,211 |
Provision for bad debts | 1,394 | 1,646 | 806 |
Write-offs | (1,380) | (1,286) | (1,165) |
Balance, end of year | $ 5,226 | $ 5,212 | $ 4,852 |
Premiums Receivable - Additiona
Premiums Receivable - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Premiums Receivable, Net [Abstract] | |||
Earned but Unbilled | $ 6.3 | $ 7.7 | $ 7.6 |
Deferred Policy Acquisition C59
Deferred Policy Acquisition Costs - Schedule of Major Categories of the Deferred Policy Acquisition Costs (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred Charges Insurers [Abstract] | ||||
Agents’ commissions | $ 15,238 | $ 15,286 | ||
Premium taxes | 3,395 | 2,578 | ||
Deferred underwriting expenses | 1,618 | 1,436 | ||
Total deferred policy acquisition costs | $ 20,251 | $ 19,300 | $ 20,412 | $ 19,649 |
Deferred Policy Acquisition C60
Deferred Policy Acquisition Costs - Schedule of Activity in the Deferred Policy Acquisition Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Balance, beginning of year | $ 19,300 | $ 20,412 | $ 19,649 |
Policy acquisition costs deferred | 43,960 | 43,209 | 45,604 |
Amortization expense during the year | (43,009) | (44,321) | (44,841) |
Balance, end of year | $ 20,251 | $ 19,300 | $ 20,412 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $ 21,221 | $ 20,837 |
Accumulated depreciation | (15,093) | (14,201) |
Property and equipment, net | 6,128 | 6,636 |
Land and Office Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 7,713 | 7,515 |
Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 6,578 | 6,509 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 6,856 | 6,739 |
Automobiles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $ 74 | $ 74 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |||
Property and equipment held under capital lease | $ 100,000 | $ 200,000 | $ 200,000 |
Accumulated depreciation | 97,000 | $ 58,000 | $ 80,000 |
Loss on disposal of assets | $ (600,000) |
Property and Equipment - Sche63
Property and Equipment - Schedule of Future Minimum Lease Payments for Capital Lease Obligations (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Property Plant And Equipment [Abstract] | |
2,018 | $ 47 |
2,019 | 47 |
2,020 | 48 |
2,021 | 4 |
Present value of net minimum lease payments | $ 146 |
Reinsurance - Schedule of the E
Reinsurance - Schedule of the Effect of Reinsurance on Premiums Written and Earned (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 | |
Premiums Written and Earned [Abstract] | |||||||||||
Gross Written | $ 350,267 | $ 373,055 | $ 386,529 | ||||||||
Ceded Written | (8,869) | (10,307) | (11,228) | ||||||||
Net premiums Written | 341,398 | 362,748 | 375,301 | ||||||||
Gross Earned | 355,025 | 379,011 | 387,122 | ||||||||
Ceded Earned | (8,869) | (10,307) | (11,228) | ||||||||
Net premiums Earned | $ 87,377 | $ 85,118 | $ 82,749 | $ 90,912 | $ 92,097 | $ 89,918 | $ 90,728 | $ 95,961 | $ 346,156 | $ 368,704 | $ 375,894 |
Reinsurance - Schedule of the A
Reinsurance - Schedule of the Amounts Recoverable from Reinsurers (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Unpaid losses recoverable: | ||
Case basis | $ 66,061 | $ 49,361 |
Incurred but not reported | 18,828 | 28,895 |
Paid losses recoverable | 554 | 485 |
Experience-rated commissions recoverable | 4,690 | 4,925 |
Total reinsurance recoverables | $ 90,133 | $ 83,666 |
Reinsurance - Additional Inform
Reinsurance - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Insurance [Abstract] | |||
Paid losses recoverable outstanding due date | 90 days | ||
Paid losses recoverable past due | $ 0 | ||
Received reinsurance recoveries | $ 1,600,000 | $ 500,000 | $ 1,000,000 |
Unsecured reinsurance recoverable by reinsurer reporting threshold | 1.50% |
Reinsurance - Schedule of Unsec
Reinsurance - Schedule of Unsecured Reinsurance Recoverables from Reinsurers (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Ceded Credit Risk [Line Items] | |||
Amounts recoverable from reinsurers | $ 90,133 | $ 83,666 | |
Funds withheld and letters of credit related to the above recoverables | (47,719) | ||
Total unsecured amounts recoverable from reinsurers | 42,414 | ||
Reinsurance Recoverable [Member] | Reinsurer Concentration Risk | |||
Ceded Credit Risk [Line Items] | |||
Amounts recoverable from reinsurers | 90,133 | ||
Reinsurance Recoverable [Member] | Reinsurer Concentration Risk | Hannover Reinsurance Limited (Ireland) [Member] | A.M. Best Rating, A+ [Member] | |||
Ceded Credit Risk [Line Items] | |||
Amounts recoverable from reinsurers | [1] | 36,905 | |
Reinsurance Recoverable [Member] | Reinsurer Concentration Risk | Odyssey America Reinsurance Corporation [Member] | A.M. Best Rating, A [Member] | |||
Ceded Credit Risk [Line Items] | |||
Amounts recoverable from reinsurers | 12,464 | ||
Reinsurance Recoverable [Member] | Reinsurer Concentration Risk | Allianz Risk Transfer AG (Bermuda) [Member] | A.M. Best Rating, A+ [Member] | |||
Ceded Credit Risk [Line Items] | |||
Amounts recoverable from reinsurers | [1] | 7,551 | |
Reinsurance Recoverable [Member] | Reinsurer Concentration Risk | Minnesota Workers’ Compensation Reinsurance Association [Member] | |||
Ceded Credit Risk [Line Items] | |||
Amounts recoverable from reinsurers | [1] | 7,761 | |
Reinsurance Recoverable [Member] | Reinsurer Concentration Risk | Clearwater Insurance [Member] | |||
Ceded Credit Risk [Line Items] | |||
Amounts recoverable from reinsurers | [2] | 5,755 | |
Reinsurance Recoverable [Member] | Reinsurer Concentration Risk | Other Reinsurers [Member] | |||
Ceded Credit Risk [Line Items] | |||
Amounts recoverable from reinsurers | $ 19,697 | ||
[1] | Current participant in our 2018 reinsurance program. | ||
[2] | Subsidiary of Fairfax Financial is no longer rated by A.M. Best. |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Company's Deferred Income Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred income tax assets: | ||
Discounting of net unpaid loss and loss adjustment expenses | $ 8,830 | $ 16,035 |
Unearned premiums | 8,466 | 14,483 |
Accrued expenses and other | 2,359 | 3,640 |
State income tax | 782 | 617 |
Accrued policyholder dividends | 1,918 | 2,024 |
Impaired securities | 42 | 70 |
Capital loss carryforward | 190 | 15 |
Accrued insurance-related assessments | 3,256 | 5,323 |
Net unrealized loss on securities | 265 | |
Total deferred tax assets | 25,843 | 42,472 |
Deferred income tax liabilities: | ||
Deferred policy acquisition costs | (5,317) | (8,492) |
Callable bond amortization | (8) | (10) |
Unrealized gain on securities available-for-sale | (1,070) | |
Property and equipment and other | (3) | 204 |
Salvage and subrogation | (183) | (363) |
Total deferred income tax liabilities | (6,581) | (8,661) |
Net deferred income taxes | $ 19,262 | $ 33,811 |
Income Taxes - Components of Co
Income Taxes - Components of Consolidated Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | |||
Federal | $ 22,477 | $ 35,602 | $ 28,047 |
State | 732 | 1,603 | 1,012 |
Total Current | 23,209 | 37,205 | 29,059 |
Deferred: | |||
Federal | 12,965 | (2,120) | 1,343 |
State | (165) | (129) | 103 |
Total Deferred | 12,800 | (2,249) | 1,446 |
Income tax expense, Total | $ 36,009 | $ 34,956 | $ 30,505 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Line Items] | |||||
Valuation allowance | $ 0 | $ 0 | $ 0 | $ 0 | |
U.S. federal income tax statutory rate | 35.00% | ||||
Revaluation of net deferred income tax assets | $ 12,600,000 | $ 12,620,000 | |||
Uncertain tax positions | $ 0 | $ 0 | $ 0 | ||
Scenario, Forecast [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
U.S. federal income tax statutory rate | 21.00% |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense from Operations from the Amount Computed by Applying the U.S. Federal Income Tax Statutory Rate of 35% to Income Before Income Taxes (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] | ||||
Income tax computed at federal statutory tax rate | $ 28,784 | $ 39,487 | $ 35,338 | |
Tax-exempt interest, net | (5,707) | (5,370) | (5,630) | |
State income tax | 311 | 913 | 762 | |
Dividends received deduction | (48) | (125) | (19) | |
Revaluation of net deferred income tax assets | $ 12,600 | 12,620 | ||
Other | 49 | 51 | 54 | |
Income tax expense, Total | $ 36,009 | $ 34,956 | $ 30,505 |
Line of Credit - Additional Inf
Line of Credit - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Line of Credit Facility [Line Items] | ||
Maximum amount of line of credit | $ 20,000,000 | |
Line of credit facility expiration date | Dec. 31, 2019 | |
Outstanding borrowings or letters of credit | $ 0 | $ 0 |
Line of Credit Facility Expired December 2019 [Member] | ||
Line of Credit Facility [Line Items] | ||
Payment on unused portion of the loan | 0.25% | |
Total fee | $ 50,000 |
Loss and Loss Adjustment Expe73
Loss and Loss Adjustment Expenses - Development Tables of Incurred and Paid Claims and Allocated Claim Adjustment Expenses Net of Reinsurance (Detail) $ in Thousands | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2017USD ($)Claim | Dec. 31, 2016USD ($) | [1] | Dec. 31, 2015USD ($) | [1] | Dec. 31, 2014USD ($) | [1] | Dec. 31, 2013USD ($) | [1] | Dec. 31, 2012USD ($) | [1] | Dec. 31, 2011USD ($) | [1] | Dec. 31, 2010USD ($) | [1] | Dec. 31, 2009USD ($) | [1] | Dec. 31, 2008USD ($) | [1] | ||
Claims Development [Line Items] | ||||||||||||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 2,119,907 | |||||||||||||||||||
Total IBNR Plus Expected Development on Reported Claims | 98,504 | |||||||||||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,500,397 | |||||||||||||||||||
All outstanding claim liabilities before 2008, net of reinsurance | 67,446 | |||||||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 686,956 | |||||||||||||||||||
Accident Year 2008 [Member] | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 182,646 | $ 182,901 | $ 183,608 | $ 182,846 | $ 184,547 | $ 187,695 | $ 190,905 | $ 195,619 | $ 200,371 | $ 196,923 | ||||||||||
Total IBNR Plus Expected Development on Reported Claims | $ 2,649 | |||||||||||||||||||
Cumulative Number of Claims Reported | Claim | 6,487 | |||||||||||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 173,138 | 171,496 | 170,347 | 166,814 | 163,933 | 157,388 | 147,377 | 132,515 | 103,057 | $ 47,685 | ||||||||||
Claim Frequency | [2] | 20.98% | ||||||||||||||||||
Accident Year 2009 [Member] | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 177,015 | 176,586 | 177,795 | 182,274 | 184,006 | 187,943 | 188,462 | 188,746 | 185,359 | |||||||||||
Total IBNR Plus Expected Development on Reported Claims | $ 3,345 | |||||||||||||||||||
Cumulative Number of Claims Reported | Claim | 5,371 | |||||||||||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 160,580 | 159,345 | 158,214 | 155,365 | 150,925 | 142,667 | 123,946 | 96,173 | $ 42,332 | |||||||||||
Claim Frequency | [2] | 19.82% | ||||||||||||||||||
Accident Year 2010 [Member] | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 189,403 | 191,000 | 193,029 | 198,861 | 205,769 | 208,035 | 202,479 | 179,156 | ||||||||||||
Total IBNR Plus Expected Development on Reported Claims | $ 5,805 | |||||||||||||||||||
Cumulative Number of Claims Reported | Claim | 5,971 | |||||||||||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 175,019 | 172,426 | 169,565 | 165,834 | 156,974 | 141,029 | 108,714 | $ 47,520 | ||||||||||||
Claim Frequency | [2] | 24.94% | ||||||||||||||||||
Accident Year 2011 [Member] | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 191,126 | 192,988 | 195,262 | 198,213 | 199,163 | 199,522 | 196,384 | |||||||||||||
Total IBNR Plus Expected Development on Reported Claims | $ 6,968 | |||||||||||||||||||
Cumulative Number of Claims Reported | Claim | 6,041 | |||||||||||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 167,757 | 165,967 | 161,639 | 153,968 | 140,831 | 111,029 | $ 53,329 | |||||||||||||
Claim Frequency | [2] | 22.81% | ||||||||||||||||||
Accident Year 2012 [Member] | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 182,859 | 184,460 | 193,515 | 212,738 | 222,075 | 222,549 | ||||||||||||||
Total IBNR Plus Expected Development on Reported Claims | $ 7,840 | |||||||||||||||||||
Cumulative Number of Claims Reported | Claim | 5,746 | |||||||||||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 157,206 | 154,553 | 149,161 | 133,658 | 107,467 | $ 50,579 | ||||||||||||||
Claim Frequency | [2] | 18.72% | ||||||||||||||||||
Accident Year 2013 [Member] | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 214,701 | 220,457 | 233,656 | 241,811 | 241,810 | |||||||||||||||
Total IBNR Plus Expected Development on Reported Claims | $ 10,501 | |||||||||||||||||||
Cumulative Number of Claims Reported | Claim | 5,762 | |||||||||||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 172,479 | 165,994 | 150,304 | 119,507 | $ 51,396 | |||||||||||||||
Claim Frequency | [2] | 16.54% | ||||||||||||||||||
Accident Year 2014 [Member] | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 235,058 | 249,097 | 268,846 | 268,846 | ||||||||||||||||
Total IBNR Plus Expected Development on Reported Claims | $ 13,503 | |||||||||||||||||||
Cumulative Number of Claims Reported | Claim | 5,827 | |||||||||||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 169,736 | 153,320 | 119,820 | $ 53,060 | ||||||||||||||||
Claim Frequency | [2] | 14.96% | ||||||||||||||||||
Accident Year 2015 [Member] | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 252,514 | 262,573 | 262,573 | |||||||||||||||||
Total IBNR Plus Expected Development on Reported Claims | $ 22,863 | |||||||||||||||||||
Cumulative Number of Claims Reported | Claim | 5,506 | |||||||||||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 151,818 | 121,599 | $ 54,141 | |||||||||||||||||
Claim Frequency | [2] | 14.22% | ||||||||||||||||||
Accident Year 2016 [Member] | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 250,491 | 250,491 | ||||||||||||||||||
Total IBNR Plus Expected Development on Reported Claims | $ 17,066 | |||||||||||||||||||
Cumulative Number of Claims Reported | Claim | 5,346 | |||||||||||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 115,713 | $ 52,238 | ||||||||||||||||||
Claim Frequency | [2] | 14.11% | ||||||||||||||||||
Accident Year 2017 [Member] | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 244,094 | |||||||||||||||||||
Total IBNR Plus Expected Development on Reported Claims | $ 7,964 | |||||||||||||||||||
Cumulative Number of Claims Reported | Claim | 4,919 | |||||||||||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 56,951 | |||||||||||||||||||
Claim Frequency | [2] | 13.86% | ||||||||||||||||||
[1] | Data presented for these calendar years is required supplementary information, which is unaudited. | |||||||||||||||||||
[2] | Frequency, as calculated above, refers to reported claims divided by gross premium earned. |
Loss and Loss Adjustment Expe74
Loss and Loss Adjustment Expenses - Summary of Average Annual Percentage Payout Of Incurred Claims By Age Net of Reinsurance For Worker's Compensation and general Liability (Unaudited) (Detail) | Dec. 31, 2017 |
Shortduration Insurance Contracts Liability For Unpaid Claims And Allocated Claim Adjustment Expense Net [Abstract] | |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 1 | 24.30% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 2 | 29.60% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 3 | 14.90% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 4 | 8.10% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 5 | 4.10% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 6 | 2.40% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 7 | 1.40% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 8 | 1.30% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 9 | 0.70% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 10 | 0.90% |
Loss and Loss Adjustment Expe75
Loss and Loss Adjustment Expenses - Reconciliation of Beginning and Ending Reserve Balances, Net of Related Amounts Recoverable from Reinsurers (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Roll Forward In Liability For Unpaid Claims And Claims Adjustment Expense [Abstract] | |||
Balance, beginning of period | $ 742,776 | $ 718,033 | $ 687,602 |
Less amounts recoverable from reinsurers on unpaid loss and loss adjustment expenses | 78,256 | 64,858 | 59,334 |
Net balance, beginning of period | 664,520 | 653,175 | 628,268 |
Add incurred related to: | |||
Current accident year | 244,094 | 250,337 | 262,387 |
Prior accident years | (34,770) | (51,306) | (47,814) |
Total incurred | 209,324 | 199,031 | 214,573 |
Less paid related to: | |||
Current accident year | 56,951 | 52,085 | 53,955 |
Prior accident years | 129,937 | 135,601 | 135,711 |
Total paid | 186,888 | 187,686 | 189,666 |
Net balance, end of period | 686,956 | 664,520 | 653,175 |
Add amounts recoverable from reinsurers on unpaid loss and loss adjustment expenses | 84,889 | 78,256 | 64,858 |
Balance, end of period | $ 771,845 | $ 742,776 | $ 718,033 |
Loss and Loss Adjustment Expe76
Loss and Loss Adjustment Expenses - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Unpaid Losses And Loss Expenses [Line Items] | |||
Loss and LAE Related to Prior Periods | $ 34,770 | $ 51,306 | $ 47,814 |
Accident Year 2013 [Member] | |||
Unpaid Losses And Loss Expenses [Line Items] | |||
Loss and LAE Related to Prior Periods | 5,800 | ||
Accident Year 2014 [Member] | |||
Unpaid Losses And Loss Expenses [Line Items] | |||
Loss and LAE Related to Prior Periods | 14,000 | ||
Accident Year 2015 [Member] | |||
Unpaid Losses And Loss Expenses [Line Items] | |||
Loss and LAE Related to Prior Periods | $ 10,100 |
Loss and Loss Adjustment Expe77
Loss and Loss Adjustment Expenses - Summary Exposures to Various Asbestos Related Claims (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Asbestos Claims [Line Items] | |||
Balance, beginning of period | $ 742,776 | $ 718,033 | $ 687,602 |
Incurred losses and LAE during the current year | 209,324 | 199,031 | 214,573 |
Loss and LAE payments | (56,951) | (52,085) | (53,955) |
Balance, end of period | 771,845 | 742,776 | 718,033 |
Asbestos Issue [Member] | |||
Asbestos Claims [Line Items] | |||
Balance, beginning of period | 1,487 | 958 | 819 |
Incurred losses and LAE during the current year | 556 | 816 | 444 |
Loss and LAE payments | (295) | (287) | (305) |
Balance, end of period | $ 1,748 | $ 1,487 | $ 958 |
Statutory Accounting and Regu78
Statutory Accounting and Regulatory Requirements - Insurance Subsidiaries (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Insurance [Abstract] | |||
Capital and surplus | $ 382,062 | $ 394,016 | $ 371,365 |
Net income | 61,628 | 79,858 | 71,937 |
Net realized losses on investments | $ (647) | $ (504) | $ (3,131) |
Statutory Accounting and Regu79
Statutory Accounting and Regulatory Requirements - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Insurance [Abstract] | |||
Dividends to the Company | 10.00% | ||
Dividends paid | $ 78.9 | $ 67 | $ 50 |
Dividends permissible to pay without seeking regulatory approval | $ 65.5 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Equity [Abstract] | ||
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares issued | 20,504,165 | 20,488,385 |
Common stock, shares outstanding | 19,245,915 | 19,230,135 |
Preferred stock, shares authorized | 10,000,000 | |
Preferred stock, par value | $ 0.01 | |
Preferred stock, shares outstanding | 0 |
Stock Options and Restricted 81
Stock Options and Restricted Stock - Additional Information (Detail) | 12 Months Ended | ||||
Dec. 31, 2017USD ($)Companyshares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)shares | Dec. 31, 2013USD ($) | Dec. 31, 2014shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total tax expense | $ 995,000 | $ 2,203,000 | |||
2005 Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options exercise price | 100.00% | ||||
Duration for Stock option grants exercisable | 10 years | ||||
Expiration of stock option | 90 days | ||||
Unexercised portion of stock option remains exercisable | 1 year | ||||
Number of companies used for the estimation of expected volatility | Company | 6 | ||||
Dividend yield assumed | 0.00% | ||||
Cash dividends paid | $ 0 | ||||
Compensation expense | $ 56,000 | 58,000 | 138,000 | ||
Total tax expense | $ 0 | $ 110,000 | $ 81,000 | ||
Restricted stock outstanding | shares | 800 | 1,600 | 2,400 | ||
2012 Equity and Incentive Compensation Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares authorized under incentive plan | shares | 500,000 | ||||
Restricted stock granted | shares | 9,326 | 27,077 | |||
Common stock available for future awards | shares | 346,451 | ||||
2012 Equity and Incentive Compensation Plan [Member] | Share Based Grants [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expense | $ 884,000 | $ 849,000 | $ 599,000 | ||
2012 Equity and Incentive Compensation Plan [Member] | Long-Term Incentive Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expense | 724,000 | 334,000 | 220,000 | ||
Non-Employee Director Restricted Stock Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expense | 355,000 | 361,000 | 266,000 | ||
Total tax expense | $ 0 | $ 52,000 | $ 13,000 | ||
Shares authorized under incentive plan | shares | 100,000 | ||||
Restricted stock granted | shares | 6,454 | 5,952 | 7,112 | ||
Common stock available for future awards | shares | 13,668 | ||||
Restricted stock award for a number of shares | $ 50,000 | ||||
Restricted stock outstanding | shares | 6,454 | 5,576 | 7,112 | 5,229 | |
Non-Employee Director Restricted Stock Plan [Member] | Restricted Stock [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Increase in annual restricted stock award | $ 75,000 |
Stock Options and Restricted 82
Stock Options and Restricted Stock - Stock Options Outstanding (Detail) - 2005 Incentive Plan [Member] - $ / shares | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares outstanding, Beginning balance | 20,000 | 88,879 | 282,083 | |
Shares, Granted | 0 | 0 | 0 | |
Shares, Exercised | 0 | (68,879) | (193,204) | |
Shares Canceled, forfeited, or expired | 0 | 0 | 0 | |
Shares outstanding, Ending balance | 20,000 | 20,000 | 88,879 | 282,083 |
Shares exercisable, Ending balance | 20,000 | 20,000 | 88,879 | |
Weighted- Average Exercise Price, Beginning balance | $ 8.71 | $ 12.10 | $ 11.30 | |
Weighted- Average Exercise Price, Granted | 0 | 0 | 0 | |
Weighted- Average Exercise Price, Exercised | 0 | 12.14 | 9.55 | |
Weighted- Average Exercise Price, Canceled, forfeited, or expired | 0 | 0 | 0 | |
Weighted- Average Exercise Price, Ending balance | 5.21 | 8.71 | 12.10 | $ 11.30 |
Weighted- Average Exercise Price, Exercisable Ending balance | $ 5.21 | $ 8.71 | $ 12.10 | |
Weighted- Average Remaining Contractual Life (in years) | 2 years 1 month 6 days | 3 years 1 month 6 days | 4 years 3 months 18 days | 3 years 7 months 6 days |
Weighted- Average Remaining Contractual Life (in years), Exercised | 3 years 3 months 18 days | |||
Weighted- Average Remaining Contractual Life (in years), Exercisable | 2 years 1 month 6 days | 3 years 1 month 6 days | 4 years 3 months 18 days |
Stock Options and Restricted 83
Stock Options and Restricted Stock - Weighted Average Grant Date Fair Values of Options Granted (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Cash received from option exercises | $ 837 | $ 1,844 | |
Total tax benefits realized for tax deductions from options exercised | 833 | 2,109 | |
Total intrinsic value of options exercised | 2,967 | 6,969 | |
Aggregate intrinsic value of vested options outstanding | $ 1,128 | $ 1,073 | $ 3,448 |
Stock Options and Restricted 84
Stock Options and Restricted Stock - Restricted Stock Outstanding (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
2005 Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares, Nonvested outstanding, Beginning balance | 800 | 1,600 | 2,400 |
Shares, Vested | (800) | (800) | (800) |
Shares, Nonvested outstanding, Ending balance | 800 | 1,600 | |
Weighted-Average Grant-Date Fair Value per Share, Beginning balance | $ 27.35 | $ 27.35 | $ 27.35 |
Weighted-Average Grant-Date Fair Value per Share, Vested | $ 27.35 | 27.35 | 27.35 |
Weighted-Average Grant-Date Fair Value per Share, Ending balance | $ 27.35 | $ 27.35 | |
2012 Incentive Plan [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares, Nonvested outstanding, Beginning balance | 76,392 | 77,528 | 72,921 |
Shares, Granted | 9,326 | 27,077 | 50,461 |
Shares, Vested | (24,839) | (26,294) | (27,537) |
Shares, Forfeited | (1,919) | (18,317) | |
Shares, Nonvested outstanding, Ending balance | 60,879 | 76,392 | 77,528 |
Weighted-Average Grant-Date Fair Value per Share, Beginning balance | $ 43.91 | $ 40.57 | $ 34.59 |
Weighted-Average Grant-Date Fair Value per Share, Granted | 55.58 | 54.44 | 45.80 |
Weighted-Average Grant-Date Fair Value per Share, Vested | 43.89 | 45.18 | 37.27 |
Weighted-Average Grant-Date Fair Value per Share, Forfeited | 35.48 | ||
Weighted-Average Grant-Date Fair Value per Share, Ending balance | $ 45.71 | $ 43.91 | $ 40.57 |
Non-Employee Director Restricted Stock Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares, Nonvested outstanding, Beginning balance | 5,576 | 7,112 | 5,229 |
Shares, Granted | 6,454 | 5,952 | 7,112 |
Shares, Vested | (5,576) | (7,488) | (5,229) |
Shares, Nonvested outstanding, Ending balance | 6,454 | 5,576 | 7,112 |
Weighted-Average Grant-Date Fair Value per Share, Beginning balance | $ 64.50 | $ 44.26 | $ 37.27 |
Weighted-Average Grant-Date Fair Value per Share, Granted | 54.20 | 63.57 | 44.26 |
Weighted-Average Grant-Date Fair Value per Share, Vested | 64.50 | 44.54 | 37.27 |
Weighted-Average Grant-Date Fair Value per Share, Ending balance | $ 54.20 | $ 64.50 | $ 44.26 |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation of Basic and Diluted Earnings Per Share (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 | |
Earnings Per Share Basic [Abstract] | |||||||||||
Net income available to common shareholders – basic | $ 649 | $ 16,577 | $ 15,481 | $ 13,524 | $ 19,073 | $ 17,896 | $ 16,639 | $ 24,257 | $ 46,231 | $ 77,865 | $ 70,462 |
Basic weighted-average common shares | 19,165,489 | 19,105,806 | 18,941,077 | ||||||||
Basic earnings per share | $ 0.03 | $ 0.86 | $ 0.81 | $ 0.71 | $ 1 | $ 0.94 | $ 0.87 | $ 1.27 | $ 2.41 | $ 4.08 | $ 3.72 |
Net income available to common shareholders - diluted | $ 46,231 | $ 77,865 | $ 70,462 | ||||||||
Weighted average common shares | 19,165,489 | 19,105,806 | 18,941,077 | ||||||||
Stock options and restricted stock | 80,377 | 97,844 | 178,109 | ||||||||
Diluted weighted average common shares | 19,245,866 | 19,203,650 | 19,119,186 | ||||||||
Diluted earnings per common share | $ 0.03 | $ 0.86 | $ 0.81 | $ 0.70 | $ 0.99 | $ 0.93 | $ 0.87 | $ 1.27 | $ 2.40 | $ 4.05 | $ 3.69 |
Earnings Per Share - Calculat86
Earnings Per Share - Calculation of Percentage of Net Income Allocable to Common Shareholders (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||
Basic weighted-average common shares | 19,165,489 | 19,105,806 | 18,941,077 |
Add: Other common shares eligible for common dividends: | |||
Weighted average restricted shares and stock options (including tax benefit component) | 80,377 | 97,844 | 178,109 |
Diluted weighted average common shares | 19,245,866 | 19,203,650 | 19,119,186 |
Comprehensive Income and Accu87
Comprehensive Income and Accumulated Other Comprehensive Income - Schedule of Changes in Accumulated Other Comprehensive Income (AOCI) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | $ 456,150 | $ 453,981 | $ 446,968 |
Net current period other comprehensive income (loss) | 4,104 | (3,079) | (223) |
Ending Balance | 425,423 | 456,150 | 453,981 |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | (492) | 2,587 | 2,810 |
Other comprehensive income (loss) before reclassification | 4,823 | (3,231) | (1,584) |
Amounts reclassified from accumulated other comprehensive income (loss) | (719) | 152 | 1,361 |
Net current period other comprehensive income (loss) | 4,104 | (3,079) | (223) |
Ending Balance | $ 3,612 | $ (492) | $ 2,587 |
Comprehensive Income and Accu88
Comprehensive Income and Accumulated Other Comprehensive Income - Reclassification Out of Accumulated Other Comprehensive Income (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 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Income before income taxes | $ 17,800 | $ 23,556 | $ 22,151 | $ 18,733 | $ 27,784 | $ 26,027 | $ 24,615 | $ 34,395 | $ 82,240 | $ 112,821 | $ 100,967 |
Income tax expense | (36,009) | (34,956) | (30,505) | ||||||||
Net income | $ 649 | $ 16,577 | $ 15,481 | $ 13,524 | $ 19,073 | $ 17,896 | $ 16,639 | $ 24,257 | 46,231 | 77,865 | 70,462 |
Changes in Net Unrealized Gains (Losses) on Investment Securities [Member] | Reclassification Out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Unrealized gains (losses) on available-for- sale securities | 1,106 | (234) | (494) | ||||||||
Other-than-temporary impairment | (1,600) | ||||||||||
Income before income taxes | 1,106 | (234) | (2,094) | ||||||||
Income tax expense | (387) | 82 | 733 | ||||||||
Net income | $ 719 | $ (152) | $ (1,361) |
Comprehensive Income and Accu89
Comprehensive Income and Accumulated Other Comprehensive Income - Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Equity [Abstract] | |||
Unrealized gain (loss) on available-for-sale securities, Pre-tax Amount | $ 6,960 | $ (4,908) | $ (2,572) |
Change in unrealized losses on available-for-sale securities with OTTI, Pre-Tax Amount | 176 | ||
Less amortization of differences between fair value and amortized cost for fixed maturity security transfer, Pre-tax Amount | (63) | (40) | |
Reclassification adjustment for gains (losses) realized in net income, Pre-Tax Amount | (1,106) | 234 | 2,093 |
Net unrealized gain loss, Pre-Tax Amount | 5,854 | (4,737) | (343) |
Other comprehensive income (loss), Pre-Tax Amount | 5,854 | (4,737) | (343) |
Unrealized gain loss on available-for-sale securities, Tax Expense | 2,137 | (1,718) | (900) |
Change in unrealized losses on available-for-sale securities with OTTI, Tax Expense | 62 | ||
Less amortization of differences between fair value and amortized cost for fixed maturity security transfer, Tax Expense | (22) | (14) | |
Reclassification adjustment for gains (losses) realized in net income, Tax Expense | (387) | 82 | 732 |
Net unrealized gain loss, Tax Expense | 1,750 | (1,658) | (120) |
Other comprehensive income (loss), Tax Expense | 1,750 | (1,658) | (120) |
Unrealized gain (loss) on available-for-sale securities, Net-of-Tax Amount | 4,823 | (3,190) | (1,672) |
Change in unrealized losses on available-for-sale securities with OTTI, Net-of-Tax Amount | 114 | ||
Less amortization of differences between fair value and amortized cost for fixed maturity security transfer, Net-of-Tax Amount | (41) | (26) | |
Reclassification adjustment for gains (losses) realized in net income, Net-of-Tax Amount | (719) | 152 | 1,361 |
Net unrealized gain loss, Net-of-Tax Amount | 4,104 | (3,079) | (223) |
Other comprehensive income (loss), Net-of-Tax Amount | $ 4,104 | $ (3,079) | $ (223) |
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 | |
Compensation And Retirement Disclosure [Abstract] | |||
Defined contribution plan name | 401(k) benefit plan | ||
Matches employee compensation for participating employees | 3.00% | ||
Fully vested in employer contributions | 5 years | ||
Defined contribution this plan | $ 0.6 | $ 0.4 | $ 0.4 |
Commitments and Contingencies -
Commitments and Contingencies - Fair Value of Annuities (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Commitments And Contingencies [Line Items] | |
Statement value of annuities exceeding 1% of statutory surplus | $ 95,936 |
Pacific Life and Annuity Company [Member] | A.M. Best Rating, A+ [Member] | |
Commitments And Contingencies [Line Items] | |
Statement value of annuities exceeding 1% of statutory surplus | 17,068 |
American General Life Insurance Company [Member] | A.M. Best Rating, A [Member] | |
Commitments And Contingencies [Line Items] | |
Statement value of annuities exceeding 1% of statutory surplus | 14,952 |
New York Life Insurance Company [Member] | A.M. Best Rating, A++ [Member] | |
Commitments And Contingencies [Line Items] | |
Statement value of annuities exceeding 1% of statutory surplus | 11,312 |
Travelers Life and Annuity [Member] | A.M. Best Rating, A [Member] | |
Commitments And Contingencies [Line Items] | |
Statement value of annuities exceeding 1% of statutory surplus | 10,471 |
Metropolitan Life Insurance Company [Member] | A.M. Best Rating, A+ [Member] | |
Commitments And Contingencies [Line Items] | |
Statement value of annuities exceeding 1% of statutory surplus | 6,993 |
John Hancock Life Insurance Company [Member] | A.M. Best Rating, A+ [Member] | |
Commitments And Contingencies [Line Items] | |
Statement value of annuities exceeding 1% of statutory surplus | 6,284 |
Athene Annuity and Life Company [Member] | A.M. Best Rating, A [Member] | |
Commitments And Contingencies [Line Items] | |
Statement value of annuities exceeding 1% of statutory surplus | 4,760 |
United of Omaha [Member] | A.M. Best Rating, A+ [Member] | |
Commitments And Contingencies [Line Items] | |
Statement value of annuities exceeding 1% of statutory surplus | 4,375 |
Other [Member] | |
Commitments And Contingencies [Line Items] | |
Statement value of annuities exceeding 1% of statutory surplus | $ 19,721 |
Commitments and Contingencies92
Commitments and Contingencies - Future Minimum Lease Payments (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Operating Leases Future Minimum Payments Due [Abstract] | |
2,018 | $ 135 |
2,019 | 47 |
2,020 | 37 |
2,021 | 37 |
2,022 | 37 |
Total future minimum lease payments | $ 293 |
Commitments and Contingencies93
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Rent expense | $ 0.1 | $ 0.2 | $ 0.2 |
Concentration of Operations - N
Concentration of Operations - Net Premiums Earned for the Top Ten States (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 | |
Schedule Of Premiums Earned Net By Segment [Line Items] | |||||||||||
Net premiums earned | $ 87,377 | $ 85,118 | $ 82,749 | $ 90,912 | $ 92,097 | $ 89,918 | $ 90,728 | $ 95,961 | $ 346,156 | $ 368,704 | $ 375,894 |
Premium earned percentage | 100.00% | 100.00% | 100.00% | ||||||||
Georgia [Member] | |||||||||||
Schedule Of Premiums Earned Net By Segment [Line Items] | |||||||||||
Net premiums earned | $ 40,801 | $ 38,168 | $ 40,497 | ||||||||
Premium earned percentage | 11.80% | 10.40% | 10.80% | ||||||||
Florida [Member] | |||||||||||
Schedule Of Premiums Earned Net By Segment [Line Items] | |||||||||||
Net premiums earned | $ 34,615 | $ 29,051 | $ 24,792 | ||||||||
Premium earned percentage | 10.00% | 7.90% | 6.60% | ||||||||
Pennsylvania [Member] | |||||||||||
Schedule Of Premiums Earned Net By Segment [Line Items] | |||||||||||
Net premiums earned | $ 32,931 | $ 39,460 | $ 36,294 | ||||||||
Premium earned percentage | 9.50% | 10.70% | 9.70% | ||||||||
Louisiana [Member] | |||||||||||
Schedule Of Premiums Earned Net By Segment [Line Items] | |||||||||||
Net premiums earned | $ 25,422 | $ 30,426 | $ 38,874 | ||||||||
Premium earned percentage | 7.30% | 8.30% | 10.30% | ||||||||
Illinois [Member] | |||||||||||
Schedule Of Premiums Earned Net By Segment [Line Items] | |||||||||||
Net premiums earned | $ 22,169 | $ 25,796 | $ 23,285 | ||||||||
Premium earned percentage | 6.40% | 7.00% | 6.20% | ||||||||
North Carolina [Member] | |||||||||||
Schedule Of Premiums Earned Net By Segment [Line Items] | |||||||||||
Net premiums earned | $ 18,388 | $ 20,784 | $ 20,062 | ||||||||
Premium earned percentage | 5.30% | 5.60% | 5.30% | ||||||||
Virginia [Member] | |||||||||||
Schedule Of Premiums Earned Net By Segment [Line Items] | |||||||||||
Net premiums earned | $ 16,298 | $ 16,599 | $ 15,656 | ||||||||
Premium earned percentage | 4.70% | 4.50% | 4.20% | ||||||||
Minnesota [Member] | |||||||||||
Schedule Of Premiums Earned Net By Segment [Line Items] | |||||||||||
Net premiums earned | $ 13,968 | $ 15,130 | $ 14,618 | ||||||||
Premium earned percentage | 4.00% | 4.10% | 3.90% | ||||||||
Wisconsin [Member] | |||||||||||
Schedule Of Premiums Earned Net By Segment [Line Items] | |||||||||||
Net premiums earned | $ 13,790 | $ 13,544 | $ 11,203 | ||||||||
Premium earned percentage | 4.00% | 3.70% | 3.00% | ||||||||
South Carolina [Member] | |||||||||||
Schedule Of Premiums Earned Net By Segment [Line Items] | |||||||||||
Net premiums earned | $ 13,327 | $ 13,897 | $ 12,955 | ||||||||
Premium earned percentage | 3.90% | 3.80% | 3.40% | ||||||||
All Others [Member] | |||||||||||
Schedule Of Premiums Earned Net By Segment [Line Items] | |||||||||||
Net premiums earned | $ 114,447 | $ 125,849 | $ 137,658 | ||||||||
Premium earned percentage | 33.10% | 34.00% | 36.60% |
Fair Values of Financial Inst95
Fair Values of Financial Instruments - Summary of Carrying or Reported Values and Corresponding Fair Values for Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed maturity securities—held to maturity | $ 639,309 | $ 568,931 |
Securities held to maturity, carrying value | 629,668 | 562,434 |
Fixed maturity securities—available for sale | 465,594 | 479,097 |
Equity securities | 9,282 | 33 |
Short-term investments | 25,770 | 29,580 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed maturity securities—held to maturity | 639,309 | 568,931 |
Fixed maturity securities—available for sale | 465,594 | 479,097 |
Equity securities | 9,282 | 33 |
Short-term investments | 25,770 | 29,580 |
Other investments | 13,330 | |
Cash and cash equivalents | 55,559 | 58,936 |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed maturity securities—held to maturity | 629,668 | 562,434 |
Fixed maturity securities—available for sale | 465,594 | 479,097 |
Equity securities | 9,282 | 33 |
Short-term investments | 25,770 | 29,580 |
Other investments | 13,330 | |
Cash and cash equivalents | $ 55,559 | $ 58,936 |
Fair Values of Financial Inst96
Fair Values of Financial Instruments - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-Sale, Fair Value | $ 474,876 | $ 492,460 |
Equity Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-Sale, Fair Value | 9,282 | 33 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-Sale, Fair Value | 474,876 | 479,130 |
Fair Value, Measurements, Recurring [Member] | Debt Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-Sale, Fair Value | 465,594 | 479,097 |
Fair Value, Measurements, Recurring [Member] | Common Stock [Member] | Equity Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-Sale, Fair Value | 9,282 | 33 |
Fair Value, Measurements, Recurring [Member] | States and Political Subdivisions [Member] | Debt Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-Sale, Fair Value | 251,140 | 232,293 |
Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | Debt Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-Sale, Fair Value | 130,222 | 182,515 |
Fair Value, Measurements, Recurring [Member] | U.S. Agency-Based Mortgage-Backed Securities [Member] | Debt Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-Sale, Fair Value | 18,014 | 9,342 |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury Securities and Obligations of U.S. Government Agencies [Member] | Debt Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-Sale, Fair Value | 66,218 | 54,947 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-Sale, Fair Value | 75,466 | 54,980 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Debt Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-Sale, Fair Value | 66,218 | 54,947 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Common Stock [Member] | Equity Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-Sale, Fair Value | 9,248 | 33 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | U.S. Treasury Securities and Obligations of U.S. Government Agencies [Member] | Debt Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-Sale, Fair Value | 66,218 | 54,947 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-Sale, Fair Value | 399,376 | 424,150 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Debt Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-Sale, Fair Value | 399,376 | 424,150 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | States and Political Subdivisions [Member] | Debt Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-Sale, Fair Value | 251,140 | 232,293 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate Bonds [Member] | Debt Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-Sale, Fair Value | 130,222 | 182,515 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | U.S. Agency-Based Mortgage-Backed Securities [Member] | Debt Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-Sale, Fair Value | 18,014 | $ 9,342 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-Sale, Fair Value | 34 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Common Stock [Member] | Equity Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-Sale, Fair Value | $ 34 |
Fair Values of Financial Inst97
Fair Values of Financial Instruments - Schedule of Assets and Liabilities Measured at Amortized Cost (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | $ 639,309 | $ 568,931 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | 6,750 | 6,779 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | 632,559 | 562,152 |
States and Political Subdivisions [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | 469,101 | 399,483 |
States and Political Subdivisions [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | 469,101 | 399,483 |
Corporate Bonds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | 100,047 | 144,016 |
Corporate Bonds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | 100,047 | 144,016 |
Commercial Mortgage-Backed Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | 70 | |
Commercial Mortgage-Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | 70 | |
U.S. Agency-Based Mortgage-Backed Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | 10,845 | 10,915 |
U.S. Agency-Based Mortgage-Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | 10,845 | 10,915 |
U.S. Treasury Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | 6,750 | 6,779 |
U.S. Treasury Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | 6,750 | 6,779 |
Obligations of U.S. Government Agencies [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | 51,257 | 5,637 |
Obligations of U.S. Government Agencies [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | 51,257 | 5,637 |
Asset-Backed Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | 1,309 | 2,031 |
Asset-Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | $ 1,309 | $ 2,031 |
Fair Values of Financial Inst98
Fair Values of Financial Instruments - Summary of Information Regarding Changes in Fair Value of Assets Measured at Fair Value (Detail) - Fair Value, Inputs, Level 3 [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Transfer into Level 3 | $ 34 |
Balance, end of period | $ 34 |
Fair Values of Financial Inst99
Fair Values of Financial Instruments - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities held to maturity, carrying value | $ 629,668,000 | $ 562,434,000 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Recognized impairment | 100,000 | |
Securities held to maturity, carrying value | 13,000 | |
Securities held to maturity, fair value | $ 34,000 |
Quarterly Financial Data (Un100
Quarterly Financial Data (Unaudited) - Unaudited 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 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||
Net premiums earned | $ 87,377 | $ 85,118 | $ 82,749 | $ 90,912 | $ 92,097 | $ 89,918 | $ 90,728 | $ 95,961 | $ 346,156 | $ 368,704 | $ 375,894 | ||
Net investment income | 7,312 | 7,788 | 7,471 | 6,710 | 7,855 | 8,006 | 6,201 | 6,044 | 29,281 | 28,106 | 27,902 | ||
Net realized gains (losses) on investments | 114 | (192) | (388) | (181) | (1,468) | 181 | 545 | 248 | (647) | (494) | (2,494) | ||
Total revenues | 94,937 | 92,804 | 89,925 | 97,542 | 98,558 | 98,206 | 97,563 | 102,335 | 375,208 | 396,662 | 400,954 | ||
Income before income taxes | 17,800 | 23,556 | 22,151 | 18,733 | 27,784 | 26,027 | 24,615 | 34,395 | 82,240 | 112,821 | 100,967 | ||
Net income | 649 | 16,577 | 15,481 | 13,524 | 19,073 | 17,896 | 16,639 | 24,257 | 46,231 | 77,865 | 70,462 | ||
Net income available to common shareholders | $ 649 | $ 16,577 | $ 15,481 | $ 13,524 | $ 19,073 | $ 17,896 | $ 16,639 | $ 24,257 | $ 46,231 | $ 77,865 | $ 70,462 | ||
Earnings per share: | |||||||||||||
Basic | $ 0.03 | $ 0.86 | $ 0.81 | $ 0.71 | $ 1 | $ 0.94 | $ 0.87 | $ 1.27 | $ 2.41 | $ 4.08 | $ 3.72 | ||
Diluted | $ 0.03 | $ 0.86 | $ 0.81 | $ 0.70 | $ 0.99 | $ 0.93 | $ 0.87 | $ 1.27 | $ 2.40 | $ 4.05 | $ 3.69 | ||
Comprehensive income | $ 1,228 | $ 17,194 | $ 17,437 | $ 14,476 | $ 11,985 | $ 16,183 | $ 19,568 | $ 27,051 | $ 50,335 | $ 74,786 | $ 70,239 | ||
Extraordinary cash dividends declared per common share | $ 3.50 | $ 3.25 | $ 3.50 | $ 3.25 | $ 3 | $ 1.50 | $ 0 | ||||||
Cash dividends declared per common share | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.80 | $ 0.72 | $ 0.60 |
Capital Management - Additional
Capital Management - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 31, 2016 | |
Equity [Abstract] | ||||||||
Share repurchase program, new limit amount | $ 25,000,000 | |||||||
Shares repurchased under the program | 0 | |||||||
Shares repurchased | 1,258,250 | 1,258,250 | 1,258,250 | 1,258,250 | ||||
Shares repurchased, value | $ 22,370,000 | $ 22,370,000 | $ 22,370,000 | $ 22,370,000 | ||||
Shares repurchased, average price | $ 17.78 | |||||||
Quarterly dividend per share | $ 0.20 | $ 0.18 | 0.20 | $ 0.18 | $ 0.15 | $ 0.12 | $ 0.08 | |
Extraordinary dividends declared per share | $ 3.50 | $ 3.25 | $ 3.50 | $ 3.25 | $ 3 | $ 1.50 | $ 0 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - $ / shares | Feb. 22, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Subsequent Event [Line Items] | |||||||
Cash dividend per share | $ 0.20 | $ 0.18 | $ 0.15 | $ 0.12 | $ 0.08 | ||
Scenario, Forecast [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Expected cash dividend per share | $ 0.88 | ||||||
Dividend Declared [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Cash dividend per share | $ 0.20 | ||||||
Subsequent Event [Member] | Dividend Declared [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Cash dividend per share | $ 0.22 | ||||||
Date of payment to shareholders entitled to dividends | Mar. 23, 2018 | ||||||
Date of record of shareholders entitled to dividends | Mar. 9, 2018 |
Schedule II. Condensed Finan103
Schedule II. Condensed Financial Information of Registrant - Condensed Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||||
Equity securities | $ 9,282 | $ 33 | ||
Short-term investments | 25,770 | 29,580 | ||
Other investments | 13,330 | |||
Total investments | 1,130,314 | 1,084,474 | ||
Cash and cash equivalents | 55,559 | 58,936 | $ 69,481 | $ 90,956 |
Deferred income taxes | 19,262 | 33,811 | ||
Property and equipment, net | 6,128 | 6,636 | ||
Federal income tax recoverable | 1,761 | |||
Other assets | 9,959 | 37,668 | ||
Total assets | 1,518,236 | 1,518,856 | ||
Liabilities, redeemable preferred stock and shareholders’ equity | ||||
Total liabilities | 1,092,813 | 1,062,706 | ||
Shareholders' equity (net of Treasury stock of $22,370 at December 31, 2017 and 2016) | 425,423 | 456,150 | 453,981 | 446,968 |
Total liabilities and shareholders’ equity | 1,518,236 | 1,518,856 | ||
Parent Company [Member] | ||||
Assets | ||||
Equity securities | 9,248 | |||
Short-term investments | 7,962 | 11,939 | ||
Other investments | 13,330 | |||
Investment in subsidiaries | 386,844 | 415,767 | ||
Total investments | 404,054 | 441,036 | ||
Cash and cash equivalents | 16,351 | 9,596 | $ 26,968 | $ 43,585 |
Deferred income taxes | 302 | 675 | ||
Notes receivable from subsidiaries | 1,711 | 1,587 | ||
Property and equipment, net | 1,359 | 1,942 | ||
Federal income tax recoverable | 3,525 | 3,091 | ||
Other assets | 887 | 657 | ||
Total assets | 428,189 | 458,584 | ||
Liabilities, redeemable preferred stock and shareholders’ equity | ||||
Total liabilities | 2,766 | 2,434 | ||
Shareholders' equity (net of Treasury stock of $22,370 at December 31, 2017 and 2016) | 425,423 | 456,150 | ||
Total liabilities and shareholders’ equity | $ 428,189 | $ 458,584 |
Schedule II. Condensed Finan104
Schedule II. Condensed Financial Information of Registrant - Condensed Balance Sheets (Parenthetical) (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Net of Treasury stock | $ 22,370 | $ 22,370 |
Parent Company [Member] | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Net of Treasury stock | $ 22,370 | $ 22,370 |
Schedule II. Condensed Finan105
Schedule II. Condensed Financial Information of Registrant - Condensed Statements of Income (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 | |
Revenues | |||||||||||
Net investment income | $ 7,312 | $ 7,788 | $ 7,471 | $ 6,710 | $ 7,855 | $ 8,006 | $ 6,201 | $ 6,044 | $ 29,281 | $ 28,106 | $ 27,902 |
Fee and other income | 420 | 347 | 316 | ||||||||
Total revenues | 94,937 | 92,804 | 89,925 | 97,542 | 98,558 | 98,206 | 97,563 | 102,335 | 375,208 | 396,662 | 400,954 |
Expenses | |||||||||||
Total expenses | 292,968 | 283,841 | 299,987 | ||||||||
Income tax expense (benefit) | 36,009 | 34,956 | 30,505 | ||||||||
Net income | $ 649 | $ 16,577 | $ 15,481 | $ 13,524 | $ 19,073 | $ 17,896 | $ 16,639 | $ 24,257 | 46,231 | 77,865 | 70,462 |
Parent Company [Member] | |||||||||||
Revenues | |||||||||||
Net investment income | 679 | 1,509 | 854 | ||||||||
Fee and other income | 6,890 | 5,843 | 5,893 | ||||||||
Total revenues | 7,569 | 7,352 | 6,747 | ||||||||
Expenses | |||||||||||
Other operating costs | 7,569 | 7,352 | 6,747 | ||||||||
Total expenses | 7,569 | 7,352 | 6,747 | ||||||||
Income tax expense (benefit) | 125 | (156) | (57) | ||||||||
Gain (loss) before equity in earnings of subsidiaries | (125) | 156 | 57 | ||||||||
Equity in net income of subsidiaries | 46,356 | 77,709 | 70,405 | ||||||||
Net income | $ 46,231 | $ 77,865 | $ 70,462 |
Schedule II. Condensed Finan106
Schedule II. Condensed Financial Information of Registrant - Condensed Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating activities | |||
Net cash (used in) provided by operating activities | $ 130,810 | $ 114,212 | $ 92,859 |
Investing activities | |||
Purchases of property and equipment | (478) | (1,638) | (953) |
Net cash used in investing activities | (51,542) | (50,478) | (49,820) |
Financing activities | |||
Proceeds from stock option exercises | 837 | 1,844 | |
Tax benefit from share-based payments | 995 | 2,203 | |
Dividends to shareholders | (82,645) | (76,111) | (68,561) |
Net cash used in financing activities | (82,645) | (74,279) | (64,514) |
Change in cash and cash equivalents | (3,377) | (10,545) | (21,475) |
Cash and cash equivalents at beginning of year | 58,936 | 69,481 | 90,956 |
Cash and cash equivalents at end of year | 55,559 | 58,936 | 69,481 |
Parent Company [Member] | |||
Operating activities | |||
Net cash (used in) provided by operating activities | 15,138 | 2,771 | (1,727) |
Investing activities | |||
Purchases of investments | (37,361) | (11,940) | |
Proceeds from sales of investments | 33,000 | 250 | |
Purchases of property and equipment | (277) | (924) | (627) |
Dividends from subsidiary | 78,900 | 67,000 | 50,000 |
Net cash used in investing activities | 74,262 | 54,136 | 49,623 |
Financing activities | |||
Proceeds from stock option exercises | 837 | 1,844 | |
Tax benefit from share-based payments | 995 | 2,204 | |
Dividends to shareholders | (82,645) | (76,111) | (68,561) |
Net cash used in financing activities | (82,645) | (74,279) | (64,513) |
Change in cash and cash equivalents | 6,755 | (17,372) | (16,617) |
Cash and cash equivalents at beginning of year | 9,596 | 26,968 | 43,585 |
Cash and cash equivalents at end of year | $ 16,351 | $ 9,596 | $ 26,968 |
Schedule VI. Supplemental In107
Schedule VI. Supplemental Information Concerning Property-Casualty Insurance Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Supplemental Information For Property Casualty Insurance Underwriters [Abstract] | |||
Deferred Policy Acquisition Costs | $ 20,251 | $ 19,300 | $ 20,412 |
Reserves for Unpaid Loss and Loss Adjustment Expense | 771,845 | 742,776 | 718,033 |
Unearned Premium | 157,270 | 162,028 | 167,983 |
Net Premiums Earned | 346,156 | 368,704 | 375,894 |
Net Investment Income | 29,281 | 28,106 | 27,902 |
Loss and LAE Related to Current Period | 244,094 | 250,337 | 262,387 |
Loss and LAE Related to Prior Periods | (34,770) | (51,306) | (47,814) |
Amortization of Deferred Policy Acquisition Costs | (43,009) | (44,321) | (44,841) |
Paid Claims and Claim Adjustment Expenses | 186,888 | 187,686 | 189,666 |
Net Premiums Written | $ 341,398 | $ 362,748 | $ 375,301 |