Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 17, 2017 | Jun. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | PROASSURANCE CORP | ||
Entity Central Index Key | 1,127,703 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 53,258,396 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 2,791,152,592 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Investments | ||
Fixed maturities, available for sale, at fair value; amortized cost, $2,586,821 and $2,722,063, respectively | $ 2,613,406 | $ 2,760,287 |
Equity securities, trading, at fair value; cost, $353,744 and $319,320, respectively | 387,274 | 322,353 |
Short-term investments | 442,084 | 119,236 |
Business owned life insurance | 60,134 | 57,213 |
Investment in unconsolidated subsidiaries | 340,906 | 311,908 |
Other investments, $31,501 and $30,611 at fair value, respectively, otherwise at cost or amortized cost | 81,892 | 79,133 |
Total Investments | 3,925,696 | 3,650,130 |
Cash and cash equivalents | 117,347 | 241,100 |
Premiums receivable | 223,480 | 217,034 |
Receivable from reinsurers on paid losses and loss adjustment expenses | 5,446 | 9,249 |
Receivable from reinsurers on unpaid losses and loss adjustment expenses | 273,475 | 249,350 |
Prepaid reinsurance premiums | 39,723 | 34,050 |
Deferred policy acquisition costs | 46,809 | 44,388 |
Deferred tax asset, net | 10,256 | 15,097 |
Real estate, net | 31,814 | 38,470 |
Intangible assets | 84,406 | 92,462 |
Goodwill | 210,725 | 210,725 |
Other assets | 96,004 | 103,966 |
Total Assets | 5,065,181 | 4,906,021 |
Policy liabilities and accruals | ||
Reserve for losses and loss adjustment expenses | 1,993,428 | 2,005,326 |
Unearned premiums | 372,563 | 362,066 |
Reinsurance premiums payable | 30,001 | 30,114 |
Total Policy Liabilities | 2,395,992 | 2,397,506 |
Other liabilities | 422,285 | 202,303 |
Debt less debt issuance costs | 448,202 | 347,858 |
Total Liabilities | 3,266,479 | 2,947,667 |
Shareholders’ Equity: | ||
Common shares, par value $0.01 per share, 100,000,000 shares authorized, 62,660,234 and 62,503,255 shares issued, respectively | 627 | 625 |
Additional paid-in capital | 376,518 | 365,399 |
Accumulated other comprehensive income (loss), net of deferred tax expense (benefit) of $9,894 and $12,972, respectively | 17,399 | 23,855 |
Retained earnings | 1,824,088 | 1,988,035 |
Treasury shares, at cost, 9,408,977 shares and 9,402,697 shares, respectively | (419,930) | (419,560) |
Total Shareholders’ Equity | 1,798,702 | 1,958,354 |
Total Liabilities and Shareholders’ Equity | $ 5,065,181 | $ 4,906,021 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, available for sale, at fair value; amortized cost | $ 2,586,821 | $ 2,722,063 |
Equity securities, trading, cost | 353,744 | 319,320 |
Other investments, portion carried at fair value | $ 31,501 | $ 30,611 |
Common shares, par value (USD per share) | $ 0.01 | $ 0.01 |
Common shares authorized (shares) | 100,000,000 | 100,000,000 |
Common shares, shares issued (shares) | 62,660,234 | 62,503,255 |
Deferred tax expense (benefit) on accumulated other comprehensive income (loss) | $ 9,894 | $ 12,972 |
Treasury shares, number of shares (shares) | 9,408,977 | 9,402,697 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Capital - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Increase (Decrease) in Stockholders' Equity: | |||||||
Beginning Balance | $ 1,958,354 | $ 2,157,944 | $ 1,958,354 | $ 2,157,944 | $ 2,394,414 | ||
Common shares reacquired | (2,106) | (169,793) | (222,360) | ||||
Common shares issued for compensation and effect of shares reissued to stock purchase plan | 3,432 | 3,629 | 4,200 | ||||
Share-based compensation | 12,455 | 9,166 | 10,056 | ||||
Net effect of restricted and performance shares issued and stock options exercised | (3,030) | (4,574) | (3,010) | ||||
Dividends to shareholders | (315,028) | (119,866) | (220,464) | ||||
Other comprehensive income (loss) | (6,456) | (34,349) | (1,457) | ||||
Net income | $ 54,848 | 19,317 | $ 34,948 | 37,814 | 151,081 | 116,197 | 196,565 |
Ending Balance | 1,798,702 | 1,958,354 | 1,798,702 | 1,958,354 | 2,157,944 | ||
Common Stock | |||||||
Increase (Decrease) in Stockholders' Equity: | |||||||
Beginning Balance | 625 | 623 | 625 | 623 | 621 | ||
Net effect of restricted and performance shares issued and stock options exercised | 2 | 2 | 2 | ||||
Ending Balance | 627 | 625 | 627 | 625 | 623 | ||
Additional Paid-in Capital | |||||||
Increase (Decrease) in Stockholders' Equity: | |||||||
Beginning Balance | 365,399 | 359,577 | 365,399 | 359,577 | 349,894 | ||
Common shares issued for compensation and effect of shares reissued to stock purchase plan | 1,696 | 1,232 | 2,639 | ||||
Share-based compensation | 12,455 | 9,166 | 10,056 | ||||
Net effect of restricted and performance shares issued and stock options exercised | (3,032) | (4,576) | (3,012) | ||||
Ending Balance | 376,518 | 365,399 | 376,518 | 365,399 | 359,577 | ||
Accumulated Other Comprehensive Income (Loss) | |||||||
Increase (Decrease) in Stockholders' Equity: | |||||||
Beginning Balance | 23,855 | 58,204 | 23,855 | 58,204 | 59,661 | ||
Other comprehensive income (loss) | (6,456) | (34,349) | (1,457) | ||||
Ending Balance | 17,399 | 23,855 | 17,399 | 23,855 | 58,204 | ||
Retained Earnings | |||||||
Increase (Decrease) in Stockholders' Equity: | |||||||
Beginning Balance | 1,988,035 | 1,991,704 | 1,988,035 | 1,991,704 | 2,015,603 | ||
Dividends to shareholders | (315,028) | (119,866) | (220,464) | ||||
Net income | 151,081 | 116,197 | 196,565 | ||||
Ending Balance | 1,824,088 | 1,988,035 | 1,824,088 | 1,988,035 | 1,991,704 | ||
Treasury Stock | |||||||
Increase (Decrease) in Stockholders' Equity: | |||||||
Beginning Balance | $ (419,560) | $ (252,164) | (419,560) | (252,164) | (31,365) | ||
Common shares reacquired | (2,106) | (169,793) | (222,360) | ||||
Common shares issued for compensation and effect of shares reissued to stock purchase plan | 1,736 | 2,397 | 1,561 | ||||
Ending Balance | $ (419,930) | $ (419,560) | $ (419,930) | $ (419,560) | $ (252,164) |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues | |||
Net premiums earned | $ 733,281 | $ 694,149 | $ 699,731 |
Net investment income | 100,012 | 108,660 | 125,557 |
Equity in earnings (loss) of unconsolidated subsidiaries | (5,762) | 3,682 | 3,986 |
Net realized investment gains (losses): | |||
OTTI losses | (10,834) | (19,917) | (1,475) |
Portion of OTTI losses recognized in other comprehensive income before taxes | 1,068 | 4,572 | 268 |
Net impairment losses recognized in earnings | (9,766) | (15,345) | (1,207) |
Other net realized investment gains (losses) | 44,641 | (26,294) | 15,861 |
Total net realized investment gains (losses) | 34,875 | (41,639) | 14,654 |
Other income | 7,808 | 7,227 | 8,398 |
Total revenues | 870,214 | 772,079 | 852,326 |
Expenses | |||
Losses and loss adjustment expenses | 515,242 | 456,862 | 379,232 |
Reinsurance recoveries | (72,013) | (46,151) | (16,148) |
Net losses and loss adjustment expenses | 443,229 | 410,711 | 363,084 |
Underwriting, policy acquisition and operating expenses | 227,610 | 217,064 | 211,311 |
Segregated portfolio cells dividend expense (income) | 8,142 | 853 | 1,842 |
Interest expense | 15,032 | 14,596 | 14,084 |
Total expenses | 694,013 | 643,224 | 590,321 |
Income before income taxes | 176,201 | 128,855 | 262,005 |
Provision for income taxes | |||
Current expense (benefit) | 16,586 | 28,652 | 58,645 |
Deferred expense (benefit) | 8,534 | (15,994) | 6,795 |
Total income tax expense (benefit) | 25,120 | 12,658 | 65,440 |
Net income | 151,081 | 116,197 | 196,565 |
Other comprehensive income (loss), after tax, net of reclassification adjustments | (6,456) | (34,349) | (1,457) |
Comprehensive income | $ 144,625 | $ 81,848 | $ 195,108 |
Earnings per share: | |||
Basic (USD per share) | $ 2.84 | $ 2.12 | $ 3.32 |
Diluted (USD per share) | $ 2.83 | $ 2.11 | $ 3.30 |
Weighted average number of common shares outstanding: | |||
Basic (shares) | 53,216 | 54,795 | 59,285 |
Diluted (shares) | 53,448 | 55,017 | 59,525 |
Cash dividends declared per common share (USD per share) | $ 5.93 | $ 2.24 | $ 3.86 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Operating Activities | |||
Net income | $ 151,081 | $ 116,197 | $ 196,565 |
Adjustments to reconcile income to net cash provided by operating activities: | |||
Amortization, net of accretion | 26,337 | 28,781 | 32,638 |
Depreciation | 6,452 | 7,437 | 6,956 |
(Increase) decrease in cash surrender value of BOLI | (2,008) | (2,032) | (2,007) |
Net realized investment (gains) losses | (34,875) | 41,639 | (14,654) |
Share-based compensation | 12,455 | 9,166 | 10,056 |
Deferred income taxes | 8,534 | (15,994) | 6,795 |
Policy acquisition costs, net amortization (net deferral) | (2,421) | (5,598) | 10 |
Equity in earnings (loss) of unconsolidated subsidiaries | 5,762 | (3,682) | (3,986) |
Other | 1,772 | 466 | (4,769) |
Other changes in assets and liabilities, excluding effect of business combinations: | |||
Premiums receivable | (6,446) | (14,506) | (15,136) |
Receivable from reinsurers on paid losses and loss adjustment expenses | 3,803 | (2,755) | 3,263 |
Receivable from reinsurers on unpaid losses and loss adjustment expenses | (24,125) | (11,384) | 27,114 |
Prepaid reinsurance premiums | (5,673) | (1,935) | (5,672) |
Other assets | 15,665 | (10,458) | 36,924 |
Reserve for losses and loss adjustment expenses | (11,898) | (52,940) | (167,747) |
Unearned premiums | 10,497 | 16,238 | 10,097 |
Reinsurance premiums payable | (113) | 12,663 | (26,377) |
Other liabilities | 14,321 | (179) | 5,932 |
Net cash provided (used) by operating activities | 169,120 | 111,124 | 96,002 |
Purchases of: | |||
Fixed maturities, available for sale | (636,377) | (580,577) | (645,114) |
Equity securities, trading | (112,912) | (271,608) | (119,865) |
Other investments | (18,613) | (33,366) | (25,109) |
Funding of qualified affordable housing tax credit limited partnerships | (1,019) | (12,477) | (8,611) |
Investment in unconsolidated subsidiaries | (50,890) | (61,444) | (52,295) |
Proceeds from sales or maturities of: | |||
Fixed maturities, available for sale | 752,516 | 886,886 | 703,828 |
Equity securities, trading | 85,226 | 236,476 | 134,005 |
Other investments | 13,797 | 33,638 | 19,942 |
Distributions from unconsolidated subsidiaries | 16,947 | 28,017 | 5,428 |
Net sales or maturities (purchases) of short-term investments | (322,872) | 11,932 | 140,411 |
Cash received in (paid in) acquisition | 0 | 0 | 35,013 |
Unsettled security transactions, net change | 1,388 | 2,339 | (2,953) |
Funds at Lloyd's in support of Syndicate 1729, returned (deposited) | 0 | 0 | 8,690 |
(Increase) decrease in restricted cash | 0 | 0 | 78,000 |
Purchases of capital assets | (10,922) | (9,524) | (2,883) |
Other | 4,792 | (2,505) | (1,507) |
Net cash provided (used) by investing activities | (278,939) | 227,787 | 266,980 |
Financing Activities | |||
Borrowing under revolving credit agreement | 100,000 | 100,000 | 0 |
Repurchase of common stock | (2,106) | (172,772) | (222,360) |
External capital contribution received for segregated portfolio cells | 9,952 | 836 | 0 |
Excess tax benefit from share-based payment arrangements | 778 | 494 | 2,702 |
Dividends to shareholders | (118,812) | (217,626) | (71,252) |
Other | (3,746) | (5,783) | (4,415) |
Net cash provided (used) by financing activities | (13,934) | (294,851) | (295,325) |
Increase (decrease) in cash and cash equivalents | (123,753) | 44,060 | 67,657 |
Cash and cash equivalents at beginning of period | 241,100 | 197,040 | 129,383 |
Cash and cash equivalents at end of period | 117,347 | 241,100 | 197,040 |
Supplemental Disclosure of Cash Flow Information | |||
Cash paid during the year for income taxes, net of refunds | (8,683) | 42,784 | 22,968 |
Cash paid during the year for interest | 14,732 | 13,996 | 13,408 |
Significant non-cash transactions | |||
Deposit transferred as consideration for acquisition | 0 | 0 | 205,244 |
Dividends declared and not yet paid | $ 265,659 | $ 69,447 | $ 167,744 |
Accounting Policies
Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Accounting Policies | Accounting Policies Organization and Nature of Business ProAssurance Corporation (ProAssurance, PRA or the Company), a Delaware corporation, is an insurance holding company primarily for wholly owned specialty property and casualty insurance entities including an entity that is the majority capital provider to Syndicate 1729 at Lloyd's of London. Risks insured are primarily liability risks located within the U.S. As described in more detail in Note 15 , ProAssurance operates in four reportable segments: Specialty P&C , Workers' Compensation, Lloyd's Syndicate and Corporate. Principles of Consolidation The accompanying consolidated financial statements include the accounts of ProAssurance Corporation and its wholly owned subsidiaries. Investments in entities where ProAssurance holds a greater than minor interest but does not hold a controlling interest are accounted for using the equity method. All significant intercompany accounts and transactions are eliminated in consolidation. ProAssurance subsidiaries located in the U.K. are reported on a quarter delay due to timing issues regarding the availability of information, except there is no delay related to subsidiary investments managed in the U.S. as that information is available on an earlier schedule. Basis of Presentation The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and disclosures related to these amounts at the date of the financial statements. Actual results could differ from those estimates. Reclassifications On January 1, 2016, in accordance with adopted guidance, ProAssurance began presenting debt issuance costs as a direct deduction from the carrying amount of Debt on the Consolidated Balance Sheets, and the December 31, 2016 and 2015 Consolidated Balance Sheets have been conformed to the current presentation. Previously, debt issuance costs ( $2.1 million at December 31, 2015 ) were reported in Other assets. Accounting Policies The significant accounting policies followed by ProAssurance in making estimates that materially affect financial reporting are summarized in these Notes to Consolidated Financial Statements. Recognition of Revenues Insurance premiums are recognized as revenues pro rata over the terms of the policies, which are principally one year in duration. Credit Losses ProAssurance's premium and agency receivables are exposed to credit losses, but to-date have not experienced any significant amount of credit losses. Recorded allowances for credit losses were less than $1.5 million at both December 31, 2016 and 2015 . Neither estimated credit losses or actual credit write-offs, net of recoveries, exceeded $0.7 million during the years ended December 31, 2016 and 2015 . Earned But Unbilled Premiums Workers’ compensation premiums are determined based upon the payroll of the insured, the applicable premium rates and, where applicable, an experience based modification factor. An audit of the policyholders’ records is conducted after policy expiration to make a final determination of applicable premiums. Audit premium due from or due to a policyholder as a result of an audit is reflected in net premiums earned when billed. ProAssurance tracks, by policy, the amount of additional premium billed in final audit invoices as a percentage of payroll exposure and uses this information to estimate the probable additional amount that it has earned, but not yet billed, as of the balance sheet date. Changes to the EBUB estimate are included in Net premiums earned in the period recognized. As of December 31, 2016 and 2015 , ProAssurance carried EBUB of $4.3 million and $3.9 million , respectively, as a part of Premiums receivable. Losses and Loss Adjustment Expenses ProAssurance establishes its reserve for losses and loss adjustment expenses ("reserve for losses" or "reserve") based on estimates of the future amounts necessary to pay claims and expenses associated with the investigation and settlement of claims. The reserve for losses is determined on the basis of individual claims and payments thereon as well as actuarially determined estimates of future losses based on past loss experience, available industry data and projections as to future claims frequency, severity, inflationary trends, judicial trends, legislative changes and settlement patterns. Management establishes the reserve for losses after taking into consideration a variety of factors including the conclusions reached by internal and consulting actuaries, premium rates, claims frequency, historical paid and incurred loss development trends, the expected effect of inflation, general economic trends, and the legal and political environment. Management updates and reviews the data underlying the estimation of the reserve for losses each reporting period and makes adjustments to loss estimation assumptions that best reflect emerging data. Both internal and consulting actuaries perform an in-depth review of the reserve for losses on at least a semi-annual basis using the loss and exposure data of ProAssurance's subsidiaries. Consulting actuaries provide reports to management regarding the adequacy of reserves. Estimating casualty insurance reserves, and particularly long-tailed insurance reserves, is a complex process. Long-tailed insurance is characterized by the extended period of time between collecting the premium for insuring a risk and the ultimate payment of losses. For a high proportion of the risks insured or reinsured by ProAssurance the period of time required to resolve a claim is often five years or more, and claims may be subject to litigation. Estimating losses for these long-tailed claims requires ProAssurance to make and revise judgments and assessments regarding multiple uncertainties over an extended period of time. As a result, reserve estimates may vary significantly from the eventual outcome. Reserve estimates and the assumptions on which these estimates are predicated are regularly reviewed and updated as new information becomes available. Any adjustments necessary are reflected in then current operations. Due to the size of ProAssurance’s reserve for losses, even a small percentage adjustment to these estimates could have a material effect on earnings in the period in which the adjustment is made, as was the case in 2016 , 2015 and 2014 . The effect of adjustments made to reinsured losses is mitigated by the corresponding adjustment that is made to reinsurance recoveries. Thus, in any given year, ProAssurance may make significant adjustments to gross losses that have little effect on its net losses. Reinsurance Receivables ProAssurance enters into reinsurance agreements whereby other insurance entities agree to assume a portion of the risk associated with certain policies issued by ProAssurance. In return, ProAssurance agrees to pay a premium to the reinsurer. ProAssurance uses reinsurance to provide capacity to write larger limits of liability, to provide reimbursement for losses incurred under the higher limit coverages we offer, to provide protection against losses in excess of policy limits, and as a mechanism for providing custom insurance solutions. Receivable from reinsurers on paid losses and loss adjustment expenses is the estimated amount of losses already paid that will be recoverable from reinsurers. Receivable from reinsurers on unpaid losses and loss adjustment expenses is the estimated amount of future loss payments that will be recoverable from reinsurers. Reinsurance recoveries are the portion of losses incurred during the period that are estimated to be allocable to reinsurers. Premiums ceded are the estimated premiums that will be due to reinsurers with respect to premiums earned and losses incurred during the period. These estimates are based upon management’s estimates of ultimate losses and the portion of those losses that are allocable to reinsurers under the terms of the related reinsurance agreements. Given the uncertainty of the ultimate amounts of losses, these estimates may vary significantly from the ultimate outcome. Management regularly reviews these estimates and any adjustments necessary are reflected in the period in which the estimate is changed. Due to the size of the receivable from reinsurers, even a small adjustment to the estimates could have a material effect on ProAssurance’s results of operations for the period in which the change is made. Reinsurance contracts do not relieve ProAssurance from its obligations to policyholders. ProAssurance continually monitors its reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. Any amount determined to be uncollectible is written off in the period in which the uncollectible amount is identified. Investments Fair Values Fair values of investment securities are primarily provided by independent pricing services. The pricing services provide an exchange traded price, if available, or provide an estimated price determined using multiple observable inputs, including exchange traded prices for similar assets. Management reviews valuations of securities obtained from the pricing services for accuracy based upon the specifics of the security, including class, maturity, credit rating, durations, collateral and comparable markets for similar securities. Multiple observable inputs are not available for certain of our investments, including corporate debt not actively traded, other asset-backed securities, and investments in LP s/ LLC s. Management values the corporate debt not actively traded and the other asset-backed securities either using dealer quotes for similar securities or discounted cash flow models using yields currently available for similar securities. Management values certain investments in LP s/ LLC s based on the NAV of the interest held, as provided by the fund. Fixed Maturities and Equity Securities Fixed maturities and equity securities are considered as either available-for-sale or trading securities. Available-for-sale securities are carried at fair value, determined as described above. Exclusive of OTTI losses, discussed in a separate section that follows, unrealized gains and losses on available-for-sale securities are included, net of related tax effects, in Shareholders’ Equity as a component of AOCI . Investment income includes amortization of premium and accretion of discount related to available-for-sale debt securities acquired at other than par value. Debt securities and mandatorily redeemable preferred stock with maturities beyond one year when purchased are classified as fixed maturities. Trading portfolio securities are carried at fair value, determined as described above, with the holding gains and losses included in realized investment gains and losses in the current period. Short-term Investments Short-term investments, which have a maturity at purchase of one year or less, are primarily comprised of investments in U.S. Treasury obligations, commercial paper and money market funds. All balances are reported at amortized cost, which approximates fair value. Other Investments Investments in LP s/ LLC s where ProAssurance has virtually no influence over the operating and financial policies of an investee are accounted for using the cost method. Under the cost method, investments are valued at cost, with investment income recognized when received. Investments in convertible bond securities are carried at fair value as permitted by the accounting guidance for hybrid financial instruments, with changes in fair value recognized in income as a component of Net realized investment gains (losses) during the period of change. Interest on convertible bond securities is recorded on an accrual basis based on contractual interest rates and is included in Net investment income. Investment in Unconsolidated Subsidiaries Investments in LP s/ LLC s where ProAssurance is deemed to have influence because it holds a greater than a minor interest are accounted for using the equity method. Under the equity method, the recorded basis of the investment is adjusted each period for the investor’s pro rata share of the investee’s income or loss. Investments in unconsolidated subsidiaries include tax credit partnerships accounted for using the equity method, whereby ProAssurance’s proportionate share of income or loss is included in investment income. Tax credits received from the partnerships are recognized in the period received as a reduction to current tax expenses. Business Owned Life Insurance ProAssurance owns life insurance contracts on certain management employees. The life insurance contracts are carried at their current cash surrender value. Changes in the cash surrender value are included in income in the current period as investment income. Death proceeds from the contracts are recorded when the proceeds become payable under the policy terms. Realized Gains and Losses Realized investment gains and losses are recognized on the first-in, first-out basis for GAAP purposes and on the specific identification basis for tax purposes. Other-than-temporary Impairments ProAssurance evaluates its available-for-sale investment securities, which at December 31, 2016 and 2015 consisted entirely of fixed maturity securities, on at least a quarterly basis for the purpose of determining whether declines in fair value below recorded cost basis represent OTTI . The Company considers an OTTI to have occurred: • if there is intent to sell the security • if it is more likely than not that the security will be required to be sold before full recovery of its amortized cost basis • if the entire amortized basis of the security is not expected to be recovered. The assessment of whether the amortized cost basis of a security, particularly an asset-backed debt security, is expected to be recovered requires management to make assumptions regarding various matters affecting future cash flows. The choice of assumptions is subjective and requires the use of judgment. Actual credit losses experienced in future periods may differ from management’s estimates of those credit losses. Methodologies used to estimate the present value of expected cash flows are: For non-structured fixed maturities (obligations of states, municipalities and political subdivisions, and corporate debt) the estimate of expected cash flows is determined by projecting a recovery value and a recovery time frame and assessing whether further principal and interest will be received. ProAssurance considers various factors in projecting recovery values and recovery time frames, including the following: • third-party research and credit rating reports; • the current credit standing of the issuer, including credit rating downgrades, whether before or after the balance sheet date; • the extent to which the decline in fair value is attributable to credit risk specifically associated with the security or its issuer; • internal assessments and the assessments of external portfolio managers regarding specific circumstances surrounding an investment, which indicate the investment is more or less likely to recover its amortized cost than other investments with a similar structure; • for asset-backed securities, the origination date of the underlying loans, the remaining average life, the probability that credit performance of the underlying loans will deteriorate in the future, and our assessment of the quality of the collateral underlying the loan; • failure of the issuer of the security to make scheduled interest or principal payments; • any changes to the rating of the security by a rating agency; and • recoveries or additional declines in fair value subsequent to the balance sheet date. For structured securities (primarily asset-backed securities), ProAssurance estimates the present value of the security’s cash flows using the effective yield of the security at the date of acquisition (or the most recent implied rate used to accrete the security if the implied rate has changed as a result of a previous impairment or changes in expected cash flows). ProAssurance considers the most recently available six month averages of the levels of delinquencies, defaults, severities, and prepayments for the collateral (loans) underlying the securitization or, if historical data is not available, sector based assumptions, to estimate expected future cash flows of these securities. Exclusive of securities where there is an intent to sell or where it is not more likely than not that the security will be required to be sold before recovery of its amortized cost basis, OTTI for debt securities is separated into a credit component and a non-credit component. The credit component of an OTTI is the difference between the security’s amortized cost basis and the present value of its expected future cash flows, while the non-credit component is the remaining difference between the security’s fair value and the present value of expected future cash flows. The credit component of the OTTI is recognized in earnings while the non-credit component is recognized in OCI . Investments in tax credit partnerships are evaluated for OTTI by considering both qualitative and quantitative factors which include: whether the current expected cash flows from the investment, primarily tax benefits, are less than those expected at the time the investment was acquired and ProAssurance's ability and intent to hold the investment until the recovery of its carrying value. Investments in LP s/ LLC s which are not accounted for under the equity method are evaluated for impairment by comparing ProAssurance’s carrying value to net asset value of ProAssurance’s interest as reported by the LP / LLC . Additionally, management considers the performance of the LP / LLC relative to the market and its stated objectives, cash flows expected from the interest and the audited financial statements of the LP / LLC , if available. ProAssurance recognizes OTTI , exclusive of non-credit OTTI , in earnings as a part of net realized investment gains (losses). In subsequent periods, any measurement of gain, loss or impairment is based on the revised amortized basis of the security. Non-credit OTTI on debt securities and declines in fair value of available-for-sale securities not considered to be other-than-temporary are recognized in OCI . Asset-backed debt securities that have been impaired due to credit or are below investment grade quality are accounted for under the effective yield method. Under the effective yield method estimates of cash flows expected over the life of asset-backed securities are then used to recognize income on the investment balance for subsequent accounting periods. Foreign Currency The functional currency of all ProAssurance foreign subsidiaries is the U.S. dollar. Cash and Cash Equivalents For purposes of the Consolidated Balance Sheets and Consolidated Statements of Cash Flows, ProAssurance considers all demand deposits and overnight investments to be cash equivalents. Restricted Cash Restricted cash represents cash balances which are not available for immediate or general use. Restricted cash activity in 2014 related entirely to a collateral deposit which supported our Lloyd's Syndicate segment. Deferred Policy Acquisition Costs; Ceding Commission Income Costs that vary with and are directly related to the successful production of new and renewal premiums (primarily premium taxes, commissions and underwriting salaries) are deferred to the extent they are recoverable against unearned premiums and are amortized as related premiums are earned. Unearned ceding commission income is reported as an offset to DPAC . Ceding commission earned is reported as an offset to DPAC amortization. Income Taxes/Deferred Taxes ProAssurance files a consolidated federal income tax return. Tax-related interest and penalties are recognized as components of tax expense. ProAssurance evaluates tax positions taken on tax returns and recognizes positions in the financial statements when it is more likely than not that the position will be sustained upon resolution with a taxing authority. If recognized, the benefit is measured as the largest amount of benefit that has a greater than fifty percent probability of being realized. Uncertain tax positions are reviewed each period by considering changes in facts and circumstances, such as changes in tax law, interactions with taxing authorities and developments in case law, and adjustments would be made if considered necessary. Adjustments to unrecognized tax benefits may affect income tax expense and the settlement of uncertain tax positions may require the use of cash. Other than differences related to timing, no significant adjustments were considered necessary during the years ended December 31, 2016 or 2015 . During 2014 , a previously held tax position of $4.8 million was reversed due to the favorable resolution of an IRS exam. Deferred federal income taxes arise from the recognition of temporary differences between the basis of assets and liabilities determined for financial reporting purposes and the basis determined for income tax purposes. ProAssurance’s temporary differences principally relate to loss reserves, unearned premium, DPAC , unrealized investment gains (losses), and basis differentials in fixed assets and investments. Deferred tax assets and liabilities are measured using the enacted tax rates expected to be in effect when such benefits are realized. ProAssurance reviews its deferred tax assets quarterly for impairment. If management determines that it is more likely than not that some or all of a deferred tax asset will not be realized, a valuation allowance is recorded to reduce the carrying value of the asset. In assessing the need for a valuation allowance, management is required to make certain judgments and assumptions about the future operations of ProAssurance based on historical experience and information as of the measurement date regarding reversal of existing temporary differences, carryback capacity, future taxable income, including its capital and operating characteristics, and tax planning strategies. Changes in tax laws and rates could also affect recorded deferred tax assets and liabilities in the future. Management is not aware of any such changes that would have a material effect on the Company’s results of operations, cash flows or financial position. Real Estate Real Estate balances are reported at cost or, for properties acquired in business combinations, estimated fair value on the date of acquisition, less accumulated depreciation. Real estate principally consists of properties in use as corporate offices. Depreciation is computed over the estimated useful lives of the related property using the straight-line method. Excess office capacity is leased or made available for lease; rental income is included in Other income and real estate expenses are included in Underwriting, policy acquisition and operating expenses. Real estate accumulated depreciation was approximately $22.9 million and $24.2 million at December 31, 2016 and 2015 , respectively. Real estate depreciation expense was $1.4 million for the year ended December 31, 2016 and $1.5 million for each of the years ended December 31, 2015 and 2014 . Intangible Assets Intangible assets with definite lives, primarily consist of agency and policyholder relationships, are amortized over the estimated useful life of the asset; those with indefinite lives, primarily state licenses, are not amortized. All intangible assets are evaluated for impairment on an annual basis. The following table provides additional information regarding ProAssurance's intangible assets. Gross Carrying Value Accumulated Amortization Amortization Expense December 31 December 31 Year Ended December 31 (In millions) 2016 2015 2016 2015 2016 2015 2014 Intangible Assets Non-amortizable $ 25.8 $ 25.8 Amortizable 93.6 94.0 $ 35.0 $ 27.3 $ 8.1 $ 8.3 $ 10.3 Total Intangible Assets $ 119.4 $ 119.8 Aggregate amortization expense for intangible assets is estimated to be $5.6 million for each of the years ended December 31, 2017 , 2018 , 2019 , 2020 and 2021 . Goodwill Goodwill is recognized in conjunction with acquisitions as the excess of the purchase consideration for the acquisition over the fair value of identifiable assets acquired and liabilities assumed. The fair value of identifiable assets and liabilities, and thus goodwill, is subject to redetermination within a measurement period of up to one year following completion of an acquisition. ProAssurance evaluates the carrying value of goodwill at the reporting unit level annually as of October 1 and whenever events or changes in circumstances indicate the carrying amount of goodwill may not be recoverable. Goodwill is tested for impairment at the reporting unit level. For ProAssurance, reporting units are consistent with the reportable segments identified in Note 15 of the Notes to Consolidated Financial Statements. Of the four reporting units, two have goodwill - Specialty P&C and Workers' Compensation. As of the most recent valuation date on October 1, 2016 , ProAssurance performed a qualitative goodwill impairment assessment for the Specialty P&C segment and a quantitative goodwill impairment test for the Workers' Compensation segment. Both the qualitative and quantitative goodwill impairment assessments compared the estimated fair value of a reporting unit to its carrying value to determine if there is an impairment of goodwill. Estimating the fair value of a reporting unit is judgmental in nature and involves the use of significant estimates and assumptions by management. The estimates and assumptions included revenue growth rates and operating margins used to calculate projected future cash flows, risk adjusted discount rates, future economic and market conditions and the determination of appropriate comparable publicly traded companies. In addition, management made certain judgments and assumptions in allocating shared assets and liabilities to individual reporting units to determine the carrying amount of each reporting unit. The Specialty P&C segment has historically had a significant excess of fair value over book value and based on current operations is expected to continue to do so; therefore, the Company's annual impairment test for that segment was performed qualitatively. In applying the qualitative approach, management considered macroeconomic factors, such as industry and market conditions, as well as reporting unit specific events, actual financial performance versus expectations and management’s future business expectations. For the Workers' Compensation segment, ProAssurance's annual impairment test was performed using a quantitative approach. The first step of the quantitative approach involved determining whether the estimated fair value of the reporting unit exceeded its carrying amount. In performing this step, ProAssurance estimated the fair value of the reporting unit using an equal weighting of fair values derived from general accepted valuation techniques - the income approach and the market approach. Under the income approach, management estimated the fair value of the reporting unit based on the present value of estimated future cash flows. Cash flow projections were based on management's estimates of revenue growth rates and operating margins, taking into consideration industry and market conditions. The discount rate used was based on the weighted average cost of capital adjusted for relevant risks associated with business specific characteristics and the uncertainty related to the reporting unit's ability to meet projected cash flows. Under the market approach, management estimated the fair value based on market multiples of revenue and earnings derived from comparable publicly traded companies with operating and investment characteristics similar to the reporting unit. Management weighed the fair values derived from the market approach depending on the level of comparability of these publicly traded companies to the reporting unit. If the fair value of a reporting unit exceeded the carrying amount of the net assets assigned to that reporting unit, goodwill would not be impaired and no further testing would be required. Upon completion of step one of the assessment, the Company determined that goodwill was not impaired for the Workers' Compensation segment; and therefore, the second step of the quantitative assessment was not deemed necessary. If the fair value of the reporting unit was less than its carrying amount, the second step of the goodwill impairment test would have been performed to measure the amount of impairment loss, if any. At the valuation date, management concluded that the fair values of both the Specialty P&C and Workers’ Compensation reporting units exceeded their respective carrying values. No goodwill impairment was recorded in 2016 or 2015 . Other Liabilities Other liabilities at December 31, 2016 and 2015 consisted of the following: (In millions) 2016 2015 SPC dividends payable $ 34.3 $ 16.7 Liability for unpaid dividends 265.7 69.4 Remaining other liabilities 122.3 116.2 Total Other liabilities $ 422.3 $ 202.3 SPC dividends payable are the cumulative undistributed earnings contractually payable to the external preferred shareholders of SPC s operated by ProAssurance's Cayman Islands subsidiary, Eastern Re . Unpaid dividends represents common stock dividends declared by ProAssurance's Board of Directors that had not yet been paid. Unpaid dividends at both December 31, 2016 and 2015 included a special dividend declared in the fourth quarter period that was paid in January of the following year. Treasury Shares Treasury shares are reported at cost, and are reflected on the Consolidated Balance Sheets as an unallocated reduction of total equity. Share-Based Payments Compensation cost for share-based payments is measured based on the grant-date fair value of the award, recognized over the period in which the employee is required to provide service in exchange for the award. Excess tax benefits (tax deductions realized in excess of the compensation costs recognized for the exercise of the awards, multiplied by the incremental tax rate) are reported as financing cash inflows. Subsequent Events ProAssurance evaluates events that occurred subsequent to December 31, 2016 , for recognition or disclosure in its Consolidated Financial Statements. Accounting Changes Adopted Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern Effective for fiscal years ending after December 15, 2016 and interim periods beginning after December 15, 2016, the FASB issued guidance that establishes principles and definitions related to management's evaluation of whether there is substantial doubt about the organization's ability to continue as a going concern. For each interim and annual reporting period, the new guidance requires management to evaluate the organization's ability to meet its obligations as they are due within one year of the date the financial statements are issued and requires disclosure when there is substantial doubt regarding the organization's ability to continue as a going concern. ProAssurance adopted the guidance as of December 31, 2016. Adoption of the guidance had no material effect on ProAssurance’s results of operations or financial position. Simplifying the Accounting for Measurement-Period Adjustments Effective for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years, the FASB issued guidance that requires an acquirer to recognize adjustments to estimated amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. An acquirer must also record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the estimated amounts, calculated as if the accounting had been completed at the acquisition date. The amendments also require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the estimated amounts had been recognized as of the acquisition date. ProAssurance adopted the guidance as of January 1, 2016. Adoption of the guidance had no material effect on ProAssurance’s results of operations or financial p |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations All entities acquired in 2014 were accounted for in accordance with GAAP relating to business combinations. No entities were acquired during 2015 or 2016 . On January 1, 2014, ProAssurance completed the acquisition of Eastern by purchasing 100% of its outstanding common shares for cash of $205 million . Eastern is based in Lancaster, Pennsylvania and specializes in workers' compensation insurance and reinsurance products and services, including alternative market solutions. ProAssurance incurred a nominal amount of expenses related to the purchase during the year ended December 31, 2015 and approximately $2.2 million during the year ended December 31, 2014. These expenses were included as a part of operating expenses in the periods incurred. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement Fair value is defined 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. A three level hierarchy has been established for valuing assets and liabilities based on how transparent (observable) the inputs are that are used to determine fair value, with the inputs considered most observable categorized as Level 1 and those that are the least observable categorized as Level 3. Hierarchy levels are defined as follows: Level 1: quoted (unadjusted) market prices in active markets for identical assets and liabilities. For ProAssurance, Level 1 inputs are generally quotes for debt or equity securities actively traded in exchange or over-the-counter markets. Level 2: market data obtained from sources independent of the reporting entity (observable inputs). For ProAssurance, Level 2 inputs generally include quoted prices in markets that are not active, quoted prices for similar assets or liabilities, and results from pricing models that use observable inputs such as interest rates and yield curves that are generally available at commonly quoted intervals. Level 3: the reporting entity’s own assumptions about market participant assumptions based on the best information available in the circumstances (non-observable inputs). For ProAssurance, Level 3 inputs are used in situations where little or no Level 1 or 2 inputs are available or are inappropriate given the particular circumstances. Level 3 inputs include results from pricing models for which some or all of the inputs are not observable, discounted cash flow methodologies, single non-binding broker quotes and adjustments to externally quoted prices that are based on management judgment or estimation. Fair values of assets measured at fair value on a recurring basis as of December 31, 2016 and December 31, 2015 are shown in the following tables. Where applicable, the tables also indicate the fair value hierarchy of the valuation techniques utilized to determine those fair values. For some assets, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. When this is the case, the asset is categorized based on the level of the most significant input to the fair value measurement. Assessments of the significance of a particular input to the fair value measurement require judgment and consideration of factors specific to the assets being valued. December 31, 2016 Fair Value Measurements Using Total (In thousands) Level 1 Level 2 Level 3 Fair Value Assets: Fixed maturities, available for sale U.S. Treasury obligations $ — $ 146,539 $ — $ 146,539 U.S. Government-sponsored enterprise obligations — 30,235 — 30,235 State and municipal bonds — 800,463 — 800,463 Corporate debt, multiple observable inputs 2,339 1,261,842 — 1,264,181 Corporate debt, limited observable inputs — — 14,810 14,810 Residential mortgage-backed securities — 217,906 — 217,906 Agency commercial mortgage-backed securities — 12,783 — 12,783 Other commercial mortgage-backed securities — 19,611 — 19,611 Other asset-backed securities — 103,871 3,007 106,878 Equity securities Financial 81,749 — — 81,749 Utilities/Energy 52,869 — — 52,869 Consumer oriented 61,284 — — 61,284 Industrial 54,265 — — 54,265 Bond funds 79,843 10,159 — 90,002 All other 27,181 19,924 — 47,105 Short-term investments 437,580 4,504 — 442,084 Other investments 1,956 29,542 3 31,501 Total assets categorized within the fair value hierarchy $ 799,066 $ 2,657,379 $ 17,820 3,474,265 LP/LLC interests carried at NAV which approximates fair value. These interests, reported as a part of Investment in unconsolidated subsidiaries, are not categorized within the fair value hierarchy. 204,719 Total assets at fair value $ 3,678,984 December 31, 2015 Fair Value Measurements Using Total (In thousands) Level 1 Level 2 Level 3 Fair Value Assets: Fixed maturities, available for sale U.S. Treasury obligations $ — $ 123,892 $ — $ 123,892 U.S. Government-sponsored enterprise obligations — 26,334 — 26,334 State and municipal bonds — 940,635 — 940,635 Corporate debt, multiple observable inputs 2,362 1,274,824 — 1,277,186 Corporate debt, limited observable inputs — — 14,500 14,500 Residential mortgage-backed securities — 238,387 — 238,387 Agency commercial mortgage-backed securities — 10,999 — 10,999 Other commercial mortgage-backed securities — 30,134 — 30,134 Other asset-backed securities — 97,463 757 98,220 Equity securities Financial 67,764 — — 67,764 Utilities/Energy 41,050 — — 41,050 Consumer oriented 56,470 — — 56,470 Industrial 48,305 — — 48,305 Bond funds 76,316 — — 76,316 All other 18,239 14,209 — 32,448 Short-term investments 86,271 32,965 — 119,236 Other investments 3,478 27,133 — 30,611 Total assets categorized within the fair value hierarchy $ 400,255 $ 2,816,975 $ 15,257 3,232,487 LP/LLC interests carried at NAV which approximates fair value. These interests, reported as a part of Investment in unconsolidated subsidiaries, are not categorized within the fair value hierarchy. 162,624 Total assets at fair value $ 3,395,111 The fair values for securities included in the Level 2 category, with the few exceptions described below, were developed by one of several third-party, nationally recognized pricing services, including services that price only certain types of securities. Each service uses complex methodologies to determine values for securities and subject the values they develop to quality control reviews. Management selected a primary source for each type of security in the portfolio and reviewed the values provided for reasonableness by comparing data to alternate pricing services and to available market and trade data. Values that appeared inconsistent were further reviewed for appropriateness. Any value that did not appear reasonable was discussed with the service that provided the value and adjusted, if necessary. One nominal adjustment was made during 2016 and related to an investment in an unrealized loss position that was sold prior to year end. No such adjustments were necessary in 2015 . Level 2 Valuations Below is a summary description of the valuation methodologies primarily used by the pricing services for securities in the Level 2 category, by security type: U.S. Treasury obligations were valued based on quoted prices for identical assets, or, in markets that are not active, quotes for similar assets, taking into consideration adjustments for variations in contractual cash flows and yields to maturity. U.S. Government-sponsored enterprise obligations were valued using pricing models that consider current and historical market data, normal trading conventions, credit ratings, and the particular structure and characteristics of the security being valued, such as yield to maturity, redemption options, and contractual cash flows. Adjustments to model inputs or model results were included in the valuation process when necessary to reflect recent regulatory, government or corporate actions or significant economic, industry or geographic events affecting the security’s fair value. State and municipal bonds were valued using a series of matrices that considered credit ratings, the structure of the security, the sector in which the security falls, yields, and contractual cash flows. Valuations were further adjusted, when necessary, to reflect the expected effect on fair value of recent significant economic or geographic events or ratings changes. Corporate debt with multiple observable inputs consisted primarily of corporate bonds, but also included a small number of bank loans. The methodology used to value Level 2 corporate bonds was the same as the methodology previously described for U.S. Government-sponsored enterprise obligations. Bank loans were valued based on an average of broker quotes for the loans in question, if available. If quotes were not available, the loans were valued based on quoted prices for comparable loans or, if the loan was newly issued, by comparison to similar seasoned issues. Broker quotes were compared to actual trade prices to permit assessment of the reliability of the quotes; unreliable quotes were not considered in quoted averages. Residential and commercial mortgage-backed securities . Agency pass-through securities were valued using a pricing matrix which considers the issuer type, coupon rate and longest cash flows outstanding. The matrix used was based on the most recently available market information. Agency and non-agency collateralized mortgage obligations were both valued using models that consider the structure of the security, current and historical information regarding prepayment speeds, ratings and ratings updates, and current and historical interest rate and interest rate spread data. Other asset-backed securities were valued using models that consider the structure of the security, monthly payment information, current and historical information regarding prepayment speeds, ratings and ratings updates, and current and historical interest rate and interest rate spread data. Spreads and prepayment speeds consider collateral type. Equity securities were securities not traded on an exchange on the valuation date. The securities were valued using the most recently available quotes for the securities. Short-term investments are securities maturing within one year, carried at cost which approximated the fair value of the security due to the short term to maturity. Other investments consisted primarily of convertible bonds valued using a pricing model that incorporated selected dealer quotes as well as current market data regarding equity prices and risk free rates. If dealer quotes were unavailable for the security being valued, quotes for securities with similar terms and credit status were used in the pricing model. Dealer quotes selected for use were those considered most accurate based on parameters such as underwriter status and historical reliability. Level 3 Valuations Below is a summary description of the valuation processes and methodologies used as well as quantitative information regarding securities in the Level 3 category. Level 3 Valuation Processes • Level 3 securities are priced by the Chief Investment Officer. • Level 3 valuations are computed quarterly. Prices are evaluated quarterly against prior period prices and the expected change in prices. • ProAssurance Level 3 securities are primarily NRSRO rated debt instruments for which comparable market inputs are commonly available for evaluating the securities in question. Valuation of these debt instruments is not overly sensitive to changes in the unobservable inputs used. Level 3 Valuation Methodologies Corporate debt with limited observable inputs consisted of corporate bonds valued using dealer quotes for similar securities or discounted cash flow models using yields currently available for similar securities. Similar securities are defined as securities of comparable credit quality that have like terms and payment features. Assessments of credit quality were based on NRSRO ratings, if available, or were subjectively determined by management if not available. At December 31, 2016 , 84% of the securities were rated; the average rating was BBB+ . At December 31, 2015 , 83% of the securities were rated; the average rating was A- . Other asset-backed securities consisted of securitizations of receivables valued using dealer quotes for similar securities or discounted cash flow models using yields currently available for similar securities. Other investments consisted of convertible securities for which limited observable inputs were available at December 31, 2016 . The securities were valued internally based on expected cash flows, including the expected final recovery, discounted at a yield that considered the lack of liquidity and the financial status of the issuer. Quantitative Information Regarding Level 3 Valuations Fair Value at (In thousands) December 31, 2016 December 31, 2015 Valuation Technique Unobservable Input Range Assets: Corporate debt with limited observable inputs $14,810 $14,500 Market Comparable Comparability Adjustment 0% - 5% (2.5%) Discounted Cash Flows Comparability Adjustment 0% - 5% (2.5%) Other asset-backed securities $3,007 $757 Market Comparable Comparability Adjustment 0% - 5% (2.5%) Discounted Cash Flows Comparability Adjustment 0% - 5% (2.5%) Other investments $3 $— Discounted Cash Flows Comparability Adjustment 0% - 10% (5%) The significant unobservable inputs used in the fair value measurement of the above listed securities were the valuations of comparable securities with similar issuers, credit quality and maturity. Changes in the availability of comparable securities could result in changes in the fair value measurements. Fair Value Measurements - Level 3 Assets The following tables (the Level 3 Tables) present summary information regarding changes in the fair value of assets measured at fair value using Level 3 inputs. December 31, 2016 Level 3 Fair Value Measurements – Assets (In thousands) State and Municipal Bonds Corporate Debt Asset-backed Securities All other investments Total Balance December 31, 2015 $ — $ 14,500 $ 757 $ — $ 15,257 Total gains (losses) realized and unrealized: Included in earnings, as a part of: Net investment income — (93 ) — (9 ) (102 ) Equity in earnings of unconsolidated subsidiaries — — — — — Net realized investment gains (losses) (490 ) (75 ) — — (565 ) Included in other comprehensive income — 531 8 47 586 Purchases — 8,900 6,500 1,753 17,153 Sales (410 ) (3,837 ) (1,452 ) (1,550 ) (7,249 ) Transfers in 900 — 1,000 918 2,818 Transfers out — (5,116 ) (3,806 ) (1,156 ) (10,078 ) Balance December 31, 2016 $ — $ 14,810 $ 3,007 $ 3 $ 17,820 Change in unrealized gains (losses) included in earnings for the above period for Level 3 assets held at period-end $ — $ — $ — $ — $ — December 31, 2015 Level 3 Fair Value Measurements – Assets (In thousands) State and Municipal Bonds Corporate Debt Asset-backed Securities All other investments Total Balance December 31, 2014 $ 5,025 $ 13,081 $ 4,769 $ — $ 22,875 Total gains (losses) realized and unrealized: Included in earnings, as a part of: Net investment income — 18 — — 18 Equity in earnings of unconsolidated subsidiaries — — — (83 ) (83 ) Net realized investment gains (losses) — (363 ) (11 ) (156 ) (530 ) Included in other comprehensive income (459 ) 73 (7 ) — (393 ) Purchases — 1,996 1,500 1,700 5,196 Sales — (1,896 ) (4,000 ) — (5,896 ) Transfers in — 6,640 — — 6,640 Transfers out (4,566 ) (5,049 ) (1,494 ) (1,461 ) (12,570 ) Balance December 31, 2015 $ — $ 14,500 $ 757 $ — $ 15,257 Change in unrealized gains (losses) included in earnings for the above period for Level 3 assets held at period-end $ — $ — $ — $ — $ — Transfers Equity securities of approximately $10.2 million were transferred from Level 2 to Level 1 during 2016 . There were no transfers between the Level 1 and Level 2 categories during 2015 . Transfers shown in the preceding Level 3 tables were as of the end of the quarter in which the transfer occurred. All transfers during both 2016 and 2015 were to or from Level 2, with the exception of one security that was transfered to Level 1 during 2016. All transfers during 2016 and 2015 related to securities held for which the level of market activity for identical or nearly identical securities varies from period to period. The securities were valued using multiple observable inputs when those inputs were available; otherwise the securities were valued using limited observable inputs. Fair Values Not Categorized Investments in unconsolidated subsidiaries at both December 31, 2016 and December 31, 2015 included interests in investment fund LP s/ LLC s that measure fund assets at fair value on a recurring basis and that provide a NAV for the interest. The carrying value of these interests is based on the NAV provided and was considered to approximate the fair value of the interests. In accordance with GAAP , the fair value of these investments was not classified within the fair value hierarchy. Additional information regarding these investments is as follows: Unfunded Fair Value (In thousands) December 31, December 31, December 31, Investments in LPs/LLCs: Private debt funds (1) $ 7,958 $ 55,637 $ 50,268 Long equity fund (2) None 6,268 6,407 Long/short equity funds (3) None 28,926 28,030 Non-public equity funds (4) $ 40,503 89,691 65,722 Multi-strategy fund of funds (5) None 8,448 8,252 Structured credit fund (6) None 4,273 3,945 Long/short commodities fund (7) None 11,476 — $ 204,719 $ 162,624 (1) Comprised of interests in two unrelated LP funds that are structured to provide interest distributions primarily through diversified portfolios of private debt instruments. One LP allows redemption by special consent; the other does not permit redemption. Income and capital are to be periodically distributed at the discretion of the LP s over an anticipated time frame that spans from 3 to 8 years. (2) The fund is a LP that holds long equities of public international companies. Redemptions are allowed at the end of any calendar month with a prior notice requirement of 15 days and are paid within 10 days of the end of the calendar month of the redemption request. (3) Comprised of interests in multiple unrelated LP funds. The funds hold primarily long and short North American equities and target absolute returns using strategies designed to take advantage of market opportunities. The funds generally permit quarterly or semi-annual capital redemptions subject to notice requirements of 30 to 90 days. For some funds, redemptions above specified thresholds (lowest threshold is 90% ) may be only partially payable until after a fund audit is completed and are then payable within 30 days . (4) Comprised of interests in multiple unrelated LP funds, each structured to provide capital appreciation through diversified investments in private equity, which can include investments in buyout, venture capital, mezzanine debt, distressed debt and other private equity-oriented LP s. Two of the LP s allow redemption by terms set forth in the LP agreements; the others do not permit redemption. Income and capital are to be periodically distributed at the discretion of the LP over time frames that are anticipated to span up to 9 years. (5) This fund is a LLC structured to build and manage low volatility, multi-manager portfolios that have little or no correlation to the broader fixed income and equity security markets. Redemptions are not permitted but offers to repurchase units of the LLC may be extended periodically. (6) This fund is a LP seeking to obtain superior risk-adjusted absolute returns by acquiring and actively managing a diversified portfolio of debt securities, including bonds, loans and other asset-backed instruments. Redemptions are allowed at any quarter-end with a prior notice requirement of 90 days . (7) This fund is a LLC invested across a broad range of commodities and focuses primarily on market neutral, relative value strategies, seeking to generate absolute returns with low correlation to broad commodity, equity and fixed income markets. Following an initial 1 year lock-up period, redemptions are allowed with a prior notice requirement of 30 days and are payable within 30 days . ProAssurance may not sell, transfer or assign its interest in any of the above LP s/ LLC s without special consent from the LP / LLC . Financial Instruments - Methodologies Other Than Fair Value The following table provides the estimated fair value of our financial instruments that, in accordance with GAAP for the type of investment, are measured using a methodology other than fair value. All fair values provided fall within the Level 3 fair value category. December 31, 2016 December 31, 2015 (In thousands) Carrying Fair Carrying Fair Financial assets: BOLI $ 60,134 $ 60,134 $ 57,213 $ 57,213 Other investments 50,391 58,757 48,522 51,646 Other assets 29,111 28,960 24,215 24,193 Financial liabilities: Senior notes due 2023 $ 250,000 $ 270,898 $ 250,000 $ 261,308 Revolving credit agreement 200,000 200,000 100,000 100,000 Other liabilities 17,033 17,011 14,897 14,893 The fair value of the BOLI was equal to the cash surrender value associated with the policies on the valuation date. Other investments listed in the table above include interests in certain investment fund LP s/ LLC s accounted for using the cost method, investments in FHLB common stock carried at cost, and an annuity investment carried at amortized cost. The estimated fair value of the LP / LLC interests was based on the equity value of the interest provided by the LP / LLC managers for the most recent quarter, which approximates the fair value of the interest. The estimated fair value of the FHLB common stock was based on the amount ProAssurance would receive if its membership were canceled, as the membership cannot be sold. The fair value of the annuity represents the present value of the expected future cash flows discounted using a rate available in active markets for similarly structured instruments. Other assets and Other liabilities primarily consisted of related investment assets and liabilities associated with funded deferred compensation agreements. Fair values of the funded deferred compensation assets and liabilities were based on the NAV s provided by the underlying funds. Other assets also included a secured note receivable and two unsecured receivables under two separate line of credit agreements. Fair value of these receivables was based on the present value of expected cash flows from the receivables, discounted at market rates on the valuation date for receivables with similar credit standings and similar payment structures. Other liabilities also included contractual liabilities related to prior business combinations. The fair values of the business combination liabilities were based on the present value of the expected future cash outflows, discounted at ProAssurance’s assumed incremental borrowing rate on the valuation date for unsecured liabilities with similar repayment structures. The fair value of the debt was estimated based on the present value of expected future cash outflows, discounted at rates available on the valuation date for similar debt issued by entities with a similar credit standing to ProAssurance. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Available-for-sale securities at December 31, 2016 and December 31, 2015 included the following: December 31, 2016 (In thousands) Amortized Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Fixed maturities U.S. Treasury obligations $ 146,186 $ 1,264 $ 911 $ 146,539 U.S. Government-sponsored enterprise obligations 30,038 388 191 30,235 State and municipal bonds 790,154 17,261 6,952 800,463 Corporate debt 1,264,812 22,659 8,480 1,278,991 Residential mortgage-backed securities 216,285 3,667 2,046 217,906 Agency commercial mortgage-backed securities 12,837 89 143 12,783 Other commercial mortgage-backed securities 19,571 177 137 19,611 Other asset-backed securities 106,938 207 267 106,878 $ 2,586,821 $ 45,712 $ 19,127 $ 2,613,406 December 31, 2015 (In thousands) Amortized Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Fixed maturities U.S. Treasury obligations $ 122,855 $ 1,696 $ 659 $ 123,892 U.S. Government-sponsored enterprise obligations 25,456 927 49 26,334 State and municipal bonds 904,719 36,739 823 940,635 Corporate debt 1,296,128 24,720 29,162 1,291,686 Residential mortgage-backed securities 233,659 6,039 1,311 238,387 Agency commercial mortgage-backed securities 10,851 174 26 10,999 Other commercial mortgage-backed securities 29,983 354 203 30,134 Other asset-backed securities 98,412 54 246 98,220 $ 2,722,063 $ 70,703 $ 32,479 $ 2,760,287 The recorded cost basis and estimated fair value of available-for-sale fixed maturities at December 31, 2016 , by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. (In thousands) Amortized Due in one Due after Due after Due after Total Fair Fixed maturities, available for sale U.S. Treasury obligations $ 146,186 $ 23,341 $ 104,168 $ 15,914 $ 3,116 $ 146,539 U.S. Government-sponsored enterprise obligations 30,038 13,462 4,813 10,240 1,720 30,235 State and municipal bonds 790,154 70,859 262,841 372,660 94,103 800,463 Corporate debt 1,264,812 124,877 743,566 385,596 24,952 1,278,991 Residential mortgage-backed securities 216,285 217,906 Agency commercial mortgage-backed securities 12,837 12,783 Other commercial mortgage-backed securities 19,571 19,611 Other asset-backed securities 106,938 106,878 $ 2,586,821 $ 2,613,406 Excluding obligations of the U.S. Government or U.S. Government-sponsored enterprises, no investment in any entity or its affiliates exceeded 10% of Shareholders’ equity at December 31, 2016 . Cash and securities with a carrying value of $45.9 million at December 31, 2016 were on deposit with various state insurance departments to meet regulatory requirements. ProAssurance also held securities with a carrying value of $252.3 million at December 31, 2016 that are pledged as collateral security for advances under the Revolving Credit Agreement (see Note 10 for additional detail on the Revolving Credit Agreement ). As a member of Lloyd's and a capital provider to Syndicate 1729, ProAssurance is required to maintain capital at Lloyd's , referred to as FAL . ProAssurance investments at December 31, 2016 included fixed maturities with a fair value of $95.6 million and short term investments with a fair value of approximately $1.5 million on deposit with Lloyd's in order to satisfy these FAL requirements. BOLI ProAssurance holds BOLI policies that are carried at the current cash surrender value of the policies (original cost $33 million ). All insured individuals were management employees at the time the policies were acquired. The primary purpose of the program is to offset future employee benefit expenses through earnings on the cash value of the policies. ProAssurance is the owner and beneficiary of these policies. Investment in Unconsolidated Subsidiaries ProAssurance holds investments in unconsolidated subsidiaries, accounted for under the equity method. The investments include the following: December 31, 2016 Carrying Value (In thousands) Percentage December 31, December 31, Investment in LPs/LLCs: Qualified affordable housing tax credit partnerships See below $ 102,313 $ 121,550 Other tax credit partnerships See below 11,459 8,362 All other LPs/LLCs See below 227,134 181,996 $ 340,906 $ 311,908 Qualified affordable housing tax credit partnership interests held by ProAssurance generate investment returns by providing tax benefits to fund investors in the form of tax credits and project operating losses. The carrying value of these investments reflects ProAssurance's total commitments (both funded and unfunded) to the partnerships. ProAssurance's ownership percentage relative to two of the tax credit partnership interests is almost 100% ; these interests had a carrying value of $40.2 million at December 31, 2016 . ProAssurance's ownership percentage relative to the remaining tax credit partnership interests is less than 20% ; these interests had a carrying value of $62.1 million at December 31, 2016 . ProAssurance does not have the ability to exert control over the partnerships; all are accounted for using the equity method. Other tax credit partnerships are comprised entirely of historic tax credits. The historic tax credits generate investment returns by providing benefits to fund investors in the form of tax credits, tax deductible project operating losses and positive cash flows. ProAssurance's ownership percentage relative to the tax credit partnerships is almost 100% . ProAssurance does not have the ability to exert control over the partnerships; the interests are accounted for using the equity method. As discussed in additional detail in Note 3 , ProAssurance holds interests in certain LP s/ LLC s that are investment funds which measure fund assets at fair value on a recurring basis and the fund managers provide a NAV for the interest. The carrying value of these interests is based on the NAV provided, and is considered to approximate the fair value of the interests; such interests totaled $204.7 million at December 31, 2016 and $162.6 million at December 31, 2015 . ProAssurance also holds interests in other LP s/ LLC s which are not considered to be investment funds; such interests totaled $22.4 million at December 31, 2016 and $19.4 million at December 31, 2015 . ProAssurance's ownership percentage relative to three of the LP s/ LLC s is greater than 25% , which is expected to be reduced as the funds mature and other investors participate in the fund; these investments had a carrying value of $18.5 million at December 31, 2016 . ProAssurance's ownership percentage relative to the remaining LP s/ LLC s is less than 25% ; these interests had a carrying value of $208.6 million at December 31, 2016 . ProAssurance does not have the ability to exert control over any of these funds. Other Investments Other investments at December 31, 2016 and December 31, 2015 were comprised as follows: (In thousands) December 31, December 31, Investments in LPs/LLCs, at cost $ 46,852 $ 44,958 Convertible securities, at fair value 31,501 30,611 Other, principally FHLB capital stock, at cost 3,539 3,564 $ 81,892 $ 79,133 Investments in convertible securities are carried at fair value as permitted by the accounting guidance for hybrid financial instruments, with changes in fair value recognized in income as a component of Net realized investment gains (losses) during the period of change. FHLB capital stock is not marketable but may be liquidated by terminating membership in the FHLB . The liquidation process can take up to five years . Investments Held in a Loss Position The following tables provide summarized information with respect to investments held in an unrealized loss position at December 31, 2016 and December 31, 2015 , including the length of time the investment had been held in a continuous unrealized loss position. December 31, 2016 Total Less than 12 months 12 months or longer Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Value Loss Value Loss Value Loss Fixed maturities, available for sale U.S. Treasury obligations $ 79,833 $ 911 $ 79,833 $ 911 $ — $ — U.S. Government-sponsored enterprise obligations 11,746 191 11,746 191 — — State and municipal bonds 224,884 6,952 219,276 6,444 5,608 508 Corporate debt 469,632 8,480 424,721 5,662 44,911 2,818 Residential mortgage-backed securities 103,680 2,046 100,542 1,982 3,138 64 Agency commercial mortgage-backed securities 4,579 143 4,192 114 387 29 Other commercial mortgage-backed securities 9,822 137 9,179 134 643 3 Other asset-backed securities 44,343 267 39,079 256 5,264 11 $ 948,519 $ 19,127 $ 888,568 $ 15,694 $ 59,951 $ 3,433 December 31, 2015 Total Less than 12 months 12 months or longer Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Value Loss Value Loss Value Loss Fixed maturities, available for sale U.S. Treasury obligations $ 66,685 $ 658 $ 61,869 $ 591 $ 4,816 $ 67 U.S. Government-sponsored enterprise obligations 6,819 49 6,819 49 — — State and municipal bonds 46,193 823 36,822 703 9,371 120 Corporate debt 622,991 29,162 555,097 15,691 67,894 13,471 Residential mortgage-backed securities 87,567 1,311 78,961 1,095 8,606 216 Agency commercial mortgage-backed securities 409 26 — — 409 26 Other commercial mortgage-backed securities 15,960 203 12,635 170 3,325 33 Other asset-backed securities 79,637 247 74,150 237 5,487 10 $ 926,261 $ 32,479 $ 826,353 $ 18,536 $ 99,908 $ 13,943 As of December 31, 2016 , excluding U.S. Government backed securities there were 703 debt securities ( 27.2% of all available-for-sale fixed maturity securities held) in an unrealized loss position representing 456 issuers. The greatest and second greatest unrealized loss positions among those securities were each approximately $0.5 million . The securities were evaluated for impairment as of December 31, 2016 . As of December 31, 2015 , excluding U.S. Government backed securities, there were 773 debt securities ( 28.8% of all available-for-sale fixed maturity securities held) in an unrealized loss position representing 506 issuers. The greatest and second greatest unrealized loss position among those securities approximated $1.4 million and $1.3 million , respectively. The securities were evaluated for impairment as of December 31, 2015 . Each quarter, ProAssurance performs a detailed analysis for the purpose of assessing whether any of the securities it holds in an unrealized loss position have suffered an OTTI in value. A detailed discussion of the factors considered in the assessment is included in Note 1 . Fixed maturity securities held in an unrealized loss position at December 31, 2016 , excluding asset-backed securities, have paid all scheduled contractual payments and are expected to continue doing so. Expected future cash flows of asset-backed securities held in an unrealized loss position were estimated as part of the December 31, 2016 impairment evaluation using the most recently available six -month historical performance data for the collateral (loans) underlying the security or, if historical data was not available, sector based assumptions, and equaled or exceeded the current amortized cost basis of the security. Net Investment Income Net investment income by investment category was as follows: Year Ended December 31 (In thousands) 2016 2015 2014 Fixed maturities $ 85,818 $ 97,348 $ 111,895 Equities 14,887 13,317 10,817 Short-term and Other investments 3,402 2,049 8,833 BOLI 2,008 2,053 2,006 Investment fees and expenses (6,103 ) (6,107 ) (7,994 ) Net investment income $ 100,012 $ 108,660 $ 125,557 Equity in Earnings (Loss) of Unconsolidated Subsidiaries Equity in earnings (loss) of unconsolidated subsidiaries included losses from qualified affordable housing project tax credit investments and historic tax credit investments. The losses recorded reflect ProAssurance's allocable portion of partnership operating losses. Losses from qualified affordable housing project tax credit investments were $20.0 million , $10.1 million and $10.7 million and tax credits recognized related to these investments totaled $18.5 million , $18.4 million and $17.9 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Losses from historic tax credit investments were $4.8 million and $0.2 million and tax credits recognized related to these investments totaled $9.0 million and $4.0 million for the years ended December 31, 2016 and 2015 , respectively. ProAssurance had no historic tax credit investments in 2014. Tax credits recognized reduced income tax expense in the respective periods. Net Realized Investment Gains (Losses) Realized investment gains and losses are recognized on the first-in, first-out basis. The following table provides detailed information regarding net realized investment gains (losses): Year Ended December 31 (In thousands) 2016 2015 2014 Total OTTI losses: State and municipal bonds $ (100 ) $ — $ (50 ) Corporate debt (7,604 ) (11,781 ) (1,425 ) Other investments (3,130 ) (8,136 ) — Portion of OTTI losses recognized in other comprehensive income before taxes: Corporate debt 1,068 4,572 268 Net impairment losses recognized in earnings (9,766 ) (15,345 ) (1,207 ) Gross realized gains, available-for-sale securities 12,451 11,936 5,627 Gross realized (losses), available-for-sale securities (7,038 ) (11,481 ) (1,103 ) Net realized gains (losses), trading securities 6,632 1,080 28,018 Net realized gains (losses), Other investments 1,115 464 326 Change in unrealized holding gains (losses), trading securities 30,557 (28,343 ) (18,883 ) Change in unrealized holding gains (losses), convertible securities, carried at fair value 899 (896 ) 1,876 Other 25 946 — Net realized investment gains (losses) $ 34,875 $ (41,639 ) $ 14,654 During 2016 , ProAssurance recognized OTTI in earnings of $9.8 million , including credit-related OTTI of $5.5 million related to debt instruments of ten issuers in the energy sector. The fair value of the bonds declined during 2016 as did the credit quality of the issuers, and ProAssurance recognized credit-related OTTI to reduce the amortized cost basis of the bonds to the present value of future cash flows expected to be received from the bonds. During 2016, ProAssurance also recognized non-credit OTTI of $0.9 million in OCI relative to the bonds of these issuers, as the fair value of the bonds was less than the present value of the expected future cash flows from the securities. During 2015 , ProAssurance recognized OTTI in earnings of $7.2 million related to corporate bonds, including credit-related OTTI of $4.9 million related to debt instruments from six issuers in the energy sector. The fair value of these bonds declined in 2015 as did the credit quality of the issuers and ProAssurance recognized credit-related OTTI to reduce the amortized cost basis of the bonds to the present value of future cash flows expected to be received from the bonds. ProAssurance also recognized non-credit OTTI of $3.7 million in OCI relative to the bonds of these issuers, as the fair value of the bonds was less than the present value of the expected future cash flows from the securities. ProAssurance also recognized an OTTI in earnings during 2015 related to a bond intended to be sold. ProAssurance also recognized a $3.1 million and an $8.1 million OTTI in earnings during 2016 and 2015 , respectively, related to an investment fund that is accounted for using the cost method (classified as part of Other investments). The fund is focused on the energy sector and securities held by the fund declined in value during both 2016 and 2015 . OTTI was recognized to reduce the carrying value of the investment to the NAV reported by the fund. During 2015 , ProAssurance recognized net losses relative to trading securities primarily due to reductions in market valuations during the period. During 2014 , ProAssurance recognized OTTI in earnings related to two corporate debt instruments, both in retail/services industries. A non-credit OTTI was recognized in OCI related to one of the instruments as the fair value of the instrument was less than the present value of the expected future cash flows from the security. The following table presents a roll forward of cumulative credit losses recorded in earnings related to impaired debt securities for which a portion of the OTTI was recorded in OCI . (In thousands) 2016 2015 2014 Balance January 1 $ 5,751 $ 232 $ 83 Additional credit losses recognized during the period, related to securities for which: No OTTI has been previously recognized 2,398 3,648 149 OTTI has been previously recognized 2,154 2,645 — Reductions due to: Securities sold during the period (realized) (9,145 ) (774 ) — Balance December 31 $ 1,158 $ 5,751 $ 232 Other information regarding sales and purchases of available-for-sale securities is as follows: Year Ended December 31 (In millions) 2016 2015 2014 Proceeds from sales (exclusive of maturities and paydowns) $ 361.8 $ 481.8 $ 244.9 Purchases $ 636.4 $ 580.6 $ 645.1 |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2016 | |
Insurance [Abstract] | |
Reinsurance | Reinsurance ProAssurance purchases reinsurance from third-party reinsurers and insurance enterprises in order to reduce its net exposure to losses. ProAssurance also uses reinsurance arrangements as a mechanism for sharing risk with insureds or their affiliates. The effect of reinsurance on premiums written and earned was as follows: (In thousands) 2016 Premiums 2015 Premiums 2014 Premiums Written Earned Written Earned Written Earned Direct $ 794,377 $ 790,791 $ 780,982 $ 772,968 $ 761,043 $ 755,623 Assumed 40,637 37,805 31,236 22,691 18,566 12,987 Ceded (96,481 ) (95,315 ) (102,933 ) (101,510 ) (77,760 ) (68,879 ) Net premiums $ 738,533 $ 733,281 $ 709,285 $ 694,149 $ 701,849 $ 699,731 The receivable from reinsurers on unpaid losses and loss adjustment expenses represents management’s estimate of amounts that will be recoverable under ProAssurance reinsurance agreements. Most Company reinsurance agreements base the amount of premium that is due to the reinsurer in part on losses reimbursed or to be reimbursed under the agreement, and terms may also include maximum and minimum amounts of ceded premium. Ceded premium amounts are estimated based on management’s expectation of ultimate losses and the portion of those losses that are allocable to reinsurers according to the terms of the agreements, including any minimums or maximums. Given the uncertainty of the ultimate amounts of losses, management’s estimates of losses and related amounts recoverable may vary significantly from the eventual outcome. During the years ended December 31, 2016 , 2015 and 2014 ProAssurance reduced premiums ceded by $7.1 million , $1.1 million and $15.7 million , respectively, due to changes in management’s estimates of amounts due to reinsurers related to prior accident year loss recoveries. Reinsurance contracts do not relieve ProAssurance from its obligations to policyholders and ProAssurance remains liable to its policyholders whether or not reinsurers honor their contractual obligations. ProAssurance continually monitors its reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. At December 31, 2016 , the net total amounts due from reinsurers was $288.6 million (including receivables related to paid and unpaid losses and LAE and prepaid reinsurance premiums, less reinsurance premiums payable). No one reinsurer had an individual balance which exceeded $26.0 million . At December 31, 2016 reinsurance recoverables totaling approximately $48.5 million were collateralized by letters of credit or funds withheld. ProAssurance had no allowance for credit losses related to its reinsurance receivables at December 31, 2016 or 2015 as all reinsurance balances were considered collectible. During the years ended December 31, 2016 , 2015 and 2014 no reinsurance balances were written off for credit reasons. During 2016, ProAssurance entered into a novation agreement which represents a legal replacement of one insurer by another extinguishing the ceding entity's liability to the policyholder. The novation resulted in approximately $11.8 million of one-time assumed premium which was fully earned at the inception of the agreement as all of the underlying loss events covered by the policy occurred in the past. During 2016, ProAssurance commuted the 2014 calendar year quota share reinsurance arrangement between the Specialty P&C segment and Syndicate 1729 which resulted in a net cash receipt of approximately $6.8 million . The commutation reduced the Receivable from reinsurers on unpaid losses and loss adjustment expenses, combined, by approximately $7.1 million . There were no significant reinsurance commutation s in 2015 or 2014 . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Deferred income taxes reflect the net tax effects of temporary differences between the amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of ProAssurance’s deferred tax assets and liabilities were as follows: Year Ended December 31 (In thousands) 2016 2015 Deferred tax assets Unpaid loss discount $ 39,746 $ 44,886 Unearned premium adjustment 22,847 22,889 Compensation related 20,190 18,130 Intangibles 1,001 1,435 Total deferred tax assets 83,784 87,340 Deferred tax liabilities Deferred acquisition costs 9,754 9,287 Unrealized gains on investments, net 9,797 13,933 Fixed assets 1,291 3,401 Basis differentials–investments 25,512 17,492 Intangibles 22,067 24,644 Other 5,107 3,486 Total deferred tax liabilities 73,528 72,243 Net deferred tax assets (liabilities) $ 10,256 $ 15,097 At December 31, 2016 , ProAssurance had no available net operating loss carryforwards, capital loss carryforwards, or Alternative Minimum Tax credit carryforwards. ProAssurance files income tax returns in various states, the U.S. federal jurisdiction and the U.K. ProAssurance had a liability for U.S. federal and U.K. income taxes of $5.1 million at December 31, 2016 , carried as part of Other liabilities, and a receivable of $16.4 million at December 31, 2015 , carried as a part of Other assets. The statute of limitations is now closed for all tax years prior to 2013 . A reconciliation of the beginning and ending amounts of unrecognized tax benefits for 2016 , 2015 and 2014 , were as follows: (In thousands) 2016 2015 2014 Balance at January 1 $ 8,195 $ 577 $ 4,823 Increase for tax position acquired as result of a business combination — — 414 Increases for tax positions taken during the current year 361 7,618 163 (Decreases) for tax positions taken during the current year — — (4,823 ) (Decreases) relating to a lapse of the applicable statute of limitations (203 ) — — Balance at December 31 $ 8,353 $ 8,195 $ 577 At December 31, 2016 and 2015, approximately $1.0 million and $0.9 million , respectively, of ProAssurance's uncertain tax positions, if recognized, would affect the effective tax rate. As with any uncertain tax position, there is a possibility that the ultimate benefit realized could differ from the estimate management has established. Management believes that it is reasonably possible that a portion of unrecognized tax benefits at December 31, 2016 , may change during the next twelve months. However, an estimate of the change cannot be made at this time. ProAssurance recognizes interest and/or penalties related to income tax matters in income tax expense. Interest recognized in the income statement approximated $0.2 million for the year ended December 31, 2016 and was nominal for the years ended 2015 and 2014 . The accrued liability for interest approximated $0.2 million at December 31, 2016 and was nominal at December 31, 2015 . A reconciliation of “expected” income tax expense ( 35% of income before income taxes) to actual income tax expense for each of the years ended December 31, 2016 , 2015 and 2014 were as follows: (In thousands) 2016 2015 2014 Computed “expected” tax expense $ 61,670 $ 45,099 $ 91,702 Tax-exempt income (9,917 ) (12,913 ) (13,250 ) Tax credits (27,549 ) (22,407 ) (17,918 ) Non-U.S. Loss — 1,806 1,741 Other 916 1,073 3,165 Income tax expense $ 25,120 $ 12,658 $ 65,440 |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 12 Months Ended |
Dec. 31, 2016 | |
Insurance [Abstract] | |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs Policy acquisition costs that are primarily and directly related to the successful production of new and renewal insurance contracts, most significantly agent commissions, premium taxes, and underwriting salaries and benefits, are capitalized as policy acquisition costs and amortized to expense, net of ceding commissions earned, as the related premium revenues are earned. Amortization of DPAC was $88.4 million , $79.6 million and $82.4 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. |
Reserve for Losses and Loss Adj
Reserve for Losses and Loss Adjustment Expenses | 12 Months Ended |
Dec. 31, 2016 | |
Insurance [Abstract] | |
Reserve for Losses and Loss Adjustment Expenses | Reserve for Losses and Loss Adjustment Expenses The reserve for losses is established based on estimates of individual claims and actuarially determined estimates of future losses based on ProAssurance’s past loss experience, available industry data and projections as to future claims frequency, severity, inflationary trends and settlement patterns. Estimating the reserve, particularly the reserve appropriate for liability exposures, is a complex process. Claims may be resolved over an extended period of time, often five years or more, and may be subject to litigation. Estimating losses requires ProAssurance to make and revise judgments and assessments regarding multiple uncertainties over an extended period of time. As a result, the reserve estimate may vary considerably from the eventual outcome. The assumptions used in establishing ProAssurance’s reserve are regularly reviewed and updated by management as new data becomes available. Changes to estimates of previously established reserves are included in earnings in the period in which the estimate is changed. ProAssurance believes that the methods it uses to establish reserves are reasonable and appropriate. Each year, ProAssurance uses internal actuaries to review the reserve for losses of each insurance subsidiary. ProAssurance also engages consulting actuaries to review ProAssurance claims data and provide observations regarding cost trends, rate adequacy and ultimate loss costs. ProAssurance considers the views of the actuaries as well as other factors, such as known, anticipated or estimated changes in frequency and severity of claims, loss retention levels and premium rates, in establishing the amount of its reserve for losses. The statutory filings of each insurance company with the insurance regulators must be accompanied by a consulting actuary's certification as to their respective reserves. ProAssurance partitions its reserve by accident year, which is the year in which the claim becomes its liability. As claims are incurred (reported) and claim payments are made, they are aggregated by accident year for analysis purposes. ProAssurance also partitions its reserve by reserve type: case reserves and IBNR reserves. Case reserves are established by the claims department based upon the particular circumstances of each reported claim and represent ProAssurance’s estimate of the future loss costs (often referred to as expected losses) that will be paid on reported claims. Case reserves are decremented as claim payments are made and are periodically adjusted upward or downward as estimates regarding the amount of future losses are revised; a reported loss for an individual claim equates to the case reserve at any point in time plus the claim payments that have been made to date. IBNR reserves represent an estimate, in the aggregate, of future development on losses that have been reported to ProAssurance plus an estimate of losses that have been incurred but not reported. Development of Prior Accident Years In addition to setting the initial reserve for the current accident year, each period ProAssurance reassesses the amount of reserve required for prior accident years. The foundation of ProAssurance’s reserve re-estimation process is an actuarial analysis that is performed by both the internal and consulting actuaries. This detailed analysis projects ultimate losses on a line of business, geographic, coverage layer and accident year basis. The procedure uses the most representative data for each partition, capturing its unique patterns of development and trends. In all, there are 219 different partitions of ProAssurance's business for purposes of this analysis. ProAssurance believes that the use of consulting actuaries provides an independent view of the loss data as well as a broader perspective on industry loss trends. Reserving Methodologies For the HCPL, medical technology and workers’ compensation lines of business, the analysis performed by the consulting actuaries analyzes each partition of the business in a variety of ways and uses multiple actuarial methodologies in performing these analyses, including: Bornhuetter-Ferguson (Paid and Reported) Method, Paid Development Method, Reported Development Method, Average Paid Value Method, Average Reported Value Method, Backward Recursive Development Method, the Adjusted Reported and the Adjusted Paid Methods. Generally, methods such as the Bornhuetter-Ferguson method are used on more recent accident years where there is less data available on which to base the analysis. As time progresses and an increased amount of data is available for a given accident year, management gives more confidence to the development and average methods, as these methods typically rely more heavily on ProAssurance's own historical data. These methods emphasize different aspects of loss reserve estimation and provide a variety of perspectives for ProAssurance's decisions. For the workers’ compensation business, ProAssurance utilizes the various actuarial methodologies discussed above, with particular reliance on reported development, paid loss development and Bornhuetter-Ferguson, to develop the reserve for each accident year. The actuarial review includes the stratification of claims data (lost time claims and medical only claims) using different variations that allow for identification of trends that may not be readily identifiable if the data was evaluated only in the aggregate. Reported and paid loss development factors are key assumptions in the reserve estimation process and are based on ProAssurance’s historical reported and paid loss development patterns. As accident years mature, the various actuarial methodologies produce more consistent loss estimates. For the Lloyd’s syndicate business, given the immaturity of Syndicate 1729 ’s own experience, losses are initially estimated using the loss assumptions by risk category incorporated into the business plan submitted to Lloyd’s with consideration given to loss experience incurred to date. These assumptions were influenced by loss results reflected in Lloyd’s historical data for similar risks. As losses are reported and resolved and Syndicate 1729 's experience becomes more credible from a statistical perspective, the syndicate’s actual loss experience is incorporated into the estimates. Certain of the methodologies utilized to estimate the ultimate losses for each partition of the reserve consider the actual amounts paid. Paid data is particularly influential when a large portion of known claims have been closed, as is the case for older accident years. In selecting a point estimate for each partition, management considers the extent to which trends are emerging consistently for all partitions and known industry trends. Thus, actual, rather than estimated severity trends are given more consideration. If actual severity trends are lower than those estimated at the time that reserves were previously established, the recognition of favorable development is indicated. This is particularly true for older accident years where actuarial methodologies give more weight to actual loss costs (severity). The various actuarial methods discussed above are applied in a consistent manner from period to period. In addition, ProAssurance performs statistical reviews of claims data such as claim counts, average settlement costs and severity trends when establishing the reserve. Selected point estimates of ultimate losses are utilized to develop estimates of ultimate losses recoverable from reinsurers, based on the terms and conditions of ProAssurance’s reinsurance agreements. An overall estimate of the amount receivable from reinsurers is determined by combining the individual estimates. ProAssurance’s net reserve estimate is the gross reserve point estimate less the estimated reinsurance recovery. Activity in the reserve for losses and loss adjustment expenses is summarized as follows: (In thousands) 2016 2015 2014 Balance, beginning of year $ 2,005,326 $ 2,058,266 $ 2,072,822 Less reinsurance recoverables on unpaid losses and loss adjustment expenses 249,350 237,966 247,518 Net balance, beginning of year 1,755,976 1,820,300 1,825,304 Net reserves acquired from acquisitions — — 139,549 Net losses: Current year 587,007 571,891 545,168 Favorable development of reserves established in prior years, net (143,778 ) (161,180 ) (182,084 ) Total 443,229 410,711 363,084 Paid related to: Current year (96,190 ) (84,186 ) (93,737 ) Prior years (383,062 ) (390,849 ) (413,900 ) Total paid (479,252 ) (475,035 ) (507,637 ) Net balance, end of year 1,719,953 1,755,976 1,820,300 Plus reinsurance recoverables on unpaid losses and loss adjustment expenses 273,475 249,350 237,966 Balance, end of year $ 1,993,428 $ 2,005,326 $ 2,058,266 As discussed in Note 1 , estimating liability reserves is complex and requires the use of many assumptions. As time passes and ultimate losses for prior years are either known or become subject to a more precise estimation, ProAssurance increases or decreases the reserve estimates established in prior periods. The favorable loss development recognized in 2016 primarily reflects a lower than anticipated claims severity trend (i.e. the average size of a claim) for accident years 2008 through 2014 . The favorable development recognized in 2015 and 2014 was primarily due to lower than anticipated claims severity trends for accident years 2008 through 2012 and accident years 2007 through 2011 , respectively. As of January 1, 2016, ProAssurance adopted new guidance that requires detailed disclosures related to its reserve for losses and loss adjustment expenses, including significant changes in methodologies and assumptions used in the calculation of its reserve. ProAssurance establishes its reserve and manages claims activity by coverage, product or line of business and various categories of reserves have similar characteristics. Therefore, ProAssurance has aggregated these reserve categories into several reserve groups that provide a more meaningful view of the amount, timing, and uncertainty of cash flows arising from the liability. At the same time, these reserve groups present a disaggregated view of the major elements of the overall loss reserve liability. The reserve groups include HCPL claims-made reserve, HCPL occurrence reserve, medical technology liability claims-made reserve, workers’ compensation reserve, Lloyd’s casualty reserve, Lloyd's property insurance reserve and Lloyd's property reinsurance reserve. All other loss reserve categories are deemed to be less homogeneous or relatively small on a standalone basis and are included in other short-duration lines in the claims development reconciliation. The composition of the reserve groups is based on similar characteristics with respect to the risks being insured and the reporting and payout pattern of the underlying claims. In most instances the groups follow the coverage categorizations used in statutory financial reporting for U.S.-domiciled property-casualty insurance companies. HCPL claims are disaggregated into those claims covered by claims-made policies and those claims covered by occurrence policies. For claims-made policies, the insured event generally becomes a liability when the event is first reported to the insurer. For occurrence policies, the insured event becomes a liability when the event takes place, even if unknown at that time. Claims-made coverage has a short reporting pattern, with virtually all claims known shortly after the end of the policy period. Occurrence coverage claims can have an extended reporting pattern, with the time from the loss event until the filing of the claim often measured in years, at which point the claims resolution process begins. Although the resolution process and time frame is similar once a claim is reported, combining claims from claims-made and occurrence coverage types would result in distortion due to the difference in reporting lag. Medical technology liability reserves are grouped separately due to the nature of the risk, including the potential for mass torts and multiple claims arising out of the same product or service. The small amount of medical technology liability occurrence reserves are included in other short-duration lines. Workers' compensation claims are also grouped separately due to the difference in the type of coverage provided and the differences in the claims resolution process as compared to other liability insurance. Finally, claims arising from the Lloyd’s syndicate are segregated into casualty (insurance and reinsurance), property insurance and property reinsurance groups. Property insurance claims generally have a shorter reporting and resolution time frame as compared to most casualty claims. The reporting and resolution patterns of property reinsurance claims differs from that of property insurance claims due to predominant coverage of catastrophic loss events on an aggregate basis rather than coverage of individual claims. Casualty reinsurance, on the other hand, generally provides coverage on a per-claim basis and the reporting and resolution time frame for these claims is not substantially different than those arising from casualty insurance written by the syndicate. ProAssurance has elected to present reserve history for acquired entities in all periods shown in the tables below, including periods prior to acquisition. With the exception of the workers' compensation line of business, virtually all other acquired entities are captured within the HCPL line of business. All information disclosed in the tables below is presented as supplementary information. Healthcare Professional Liability Reserve HCPL loss costs are impacted by many factors, including but not limited to the nature of the claim, including whether or not the claim is an individual or a mass tort claim, the personal situation of the claimant or the claimant's family, the outcome of jury trials, the legislative and judicial climate where any potential litigation may occur, general economic conditions and, for claims involving bodily injury, the trend of healthcare costs. ProAssurance sets an initial reserve using the average loss ratio used in pricing, plus an additional provision in consideration of the historical loss volatility ProAssurance and others in the industry have experienced. The average initial loss ratio for the HCPL business has approximated 87% for recent years, which is higher than the underlying expected loss ratio and provision for volatility. Reasons for higher loss provisions can vary from period to period and have included additional loss activity within ProAssurance’s surplus lines of business, provisions for losses in excess of policy limits, adjustments to unallocated loss adjustment expenses, adjustments to the reserve for the DDR provisions in ProAssurance's policies and additional losses recorded for particular exposures, such as mass torts. These specific adjustments are made if ProAssurance believes the results for a given accident year are likely to exceed those anticipated by pricing. ProAssurance believes the use of a provision for volatility appropriately considers the inherent risks and limitations of the rate development process and the historic volatility of professional liability losses and produces a reasonable best estimate of the reserve required to cover actual ultimate unpaid losses. Healthcare Professional Liability Claims-Made Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2016 ($ in thousands) Years Ended December 31, IBNR* Cumulative Number of Reported Claims 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Accident Year Unaudited 2007 $ 432,313 $ 423,950 $ 410,175 $ 375,908 $ 327,498 $ 281,491 $ 254,458 $ 244,809 $ 242,248 $ 237,925 $ 618 4,043 2008 — 402,293 397,571 391,214 345,855 298,849 269,462 259,272 247,123 240,472 1,692 3,730 2009 — — 379,259 370,642 345,714 320,368 284,511 265,478 246,146 230,849 4,774 3,825 2010 — — — 364,996 354,787 338,170 312,813 291,553 279,713 270,484 3,436 3,845 2011 — — — — 348,916 344,808 331,884 305,540 289,400 278,258 6,687 3,532 2012 — — — — — 341,289 324,418 319,613 306,956 291,075 2,137 3,706 2013 — — — — — — 315,346 304,209 296,550 287,140 3,870 3,809 2014 — — — — — — — 290,020 289,397 280,043 10,632 3,331 2015 — — — — — — — — 276,492 269,980 15,536 3,248 2016 — — — — — — — — — 271,765 125,767 2,982 Total $ 2,657,991 * Includes expected development on reported claims Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (In thousands) Years Ended December 31, 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Accident Year Unaudited 2007 $ 12,550 $ 67,928 $ 129,946 $ 169,646 $ 192,442 $ 206,341 $ 218,953 $ 226,875 $ 230,225 $ 231,966 2008 — 14,214 67,971 128,800 166,544 197,042 212,789 221,150 226,903 232,598 2009 — — 15,051 71,272 114,318 153,563 178,445 191,420 200,425 205,372 2010 — — — 15,464 69,551 137,712 180,432 209,777 221,693 236,171 2011 — — — — 14,417 71,208 133,004 177,089 198,112 214,502 2012 — — — — — 15,382 73,571 145,488 190,997 215,220 2013 — — — — — — 16,938 69,657 127,496 171,681 2014 — — — — — — — 16,764 59,485 116,791 2015 — — — — — — — — 9,172 55,731 2016 — — — — — — — — — 9,027 Total 1,689,059 All outstanding liabilities before 2007, net of reinsurance 18,260 Liabilities for losses and loss adjustment expenses, net of reinsurance $ 987,192 Healthcare Professional Liability Occurrence Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2016 ($ in thousands) Years Ended December 31, IBNR* Cumulative Number of Reported Claims 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Accident Year Unaudited 2007 $ 47,165 $ 50,748 $ 48,038 $ 45,980 $ 37,698 $ 34,937 $ 30,347 $ 30,877 $ 24,229 $ 23,079 $ 2,228 346 2008 — 42,258 45,006 47,019 43,676 35,458 29,492 28,887 26,126 23,473 2,464 283 2009 — — 34,450 35,366 36,802 37,437 34,099 32,675 28,731 26,340 3,383 244 2010 — — — 41,721 43,238 43,195 42,233 37,920 35,831 33,361 4,235 289 2011 — — — — 45,882 44,956 41,453 39,917 37,150 35,004 4,068 340 2012 — — — — — 45,703 46,513 44,848 40,692 34,774 9,006 391 2013 — — — — — — 32,746 36,602 35,624 34,393 5,348 346 2014 — — — — — — — 30,420 29,918 32,143 15,176 318 2015 — — — — — — — — 35,648 35,347 18,274 246 2016 — — — — — — — — — 29,609 27,151 121 Total $ 307,523 * Includes expected development on reported claims Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (In thousands) Years Ended December 31, 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Accident Year Unaudited 2007 $ 129 $ 2,098 $ 4,976 $ 7,997 $ 12,257 $ 14,265 $ 16,898 $ 18,286 $ 18,875 $ 19,141 2008 — 70 1,048 3,347 6,269 10,649 12,403 15,661 16,564 17,799 2009 — — 175 2,255 5,067 7,947 10,823 13,248 15,380 16,025 2010 — — — 285 1,881 5,647 9,120 15,147 21,837 22,804 2011 — — — — 291 2,803 8,059 16,544 19,197 21,416 2012 — — — — — 363 2,430 7,705 12,212 19,275 2013 — — — — — — 369 3,170 7,826 14,753 2014 — — — — — — — 394 2,260 7,460 2015 — — — — — — — — (350 ) 786 2016 — — — — — — — — — (182 ) Total 139,277 All outstanding liabilities before 2007, net of reinsurance 14,975 Liabilities for losses and loss adjustment expenses, net of reinsurance $ 183,221 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Unaudited Healthcare Professional Liability Claims-Made 5.2% 20.1% 22.8% 16.0% 10.0% 5.7% 4.5% 2.6% 1.9% 0.7% Healthcare Professional Liability Occurrence 0.5% 6.2% 13.0% 14.9% 15.7% 10.4% 9.1% 4.1% 3.9% 1.1% Medical Technology Liability Reserve The risks insured in the medical technology liability line of business are more varied and policies are individually priced based on the risk characteristics of the policy and the account. These policies often have substantial deductibles or self-insured retentions and the insured risks range from startup operations to large multinational entities. Premiums are established using the most recently developed actuarial estimates of losses expected to be incurred based on factors which include: results from prior analysis of similar business, industry indications, observed trends and judgment. Claims in this line of business primarily involve bodily injury to individuals and are affected by factors similar to those of the HCPL line of business. For the medical technology liability line of business, ProAssurance also establishes an initial reserve using a loss ratio approach, including a provision in consideration of historical loss volatility that this line of business has exhibited. Medical Technology Liability Claims-Made Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2016 ($ in thousands) Years Ended December 31, IBNR* Cumulative Number of Reported Claims 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Accident Year Unaudited 2007 $ 36,234 $ 42,660 $ 37,964 $ 33,599 $ 29,712 $ 27,348 $ 26,324 $ 24,211 $ 24,413 $ 24,194 644 649 2008 — 43,427 45,788 48,187 45,156 42,409 37,783 38,280 35,330 34,716 738 971 2009 — — 30,462 31,183 27,523 26,181 23,425 21,733 20,551 19,264 1,004 721 2010 — — — 26,077 27,063 25,175 23,307 19,315 17,439 16,047 1,440 510 2011 — — — — 17,249 20,930 19,166 15,836 13,794 12,487 1,599 534 2012 — — — — — 11,162 9,989 8,906 7,441 5,824 2,131 234 2013 — — — — — — 9,807 9,955 9,536 7,226 4,248 231 2014 — — — — — — — 9,989 10,306 9,012 3,904 287 2015 — — — — — — — — 9,376 8,757 5,948 158 2016 — — — — — — — — — 9,200 7,878 163 Total $ 146,727 * Includes expected development on reported claims Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (In thousands) Years Ended December 31, 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Accident Year Unaudited 2007 $ 123 $ 9,947 $ 19,302 $ 20,240 $ 22,368 $ 22,912 $ 23,329 $ 23,358 $ 23,542 $ 23,546 2008 — 4,325 14,772 26,901 26,620 32,653 34,588 34,567 34,567 34,567 2009 — — 116 5,071 7,742 14,675 14,933 15,097 15,184 15,186 2010 — — — 485 3,557 8,491 12,283 11,725 12,146 12,253 2011 — — — — 118 2,034 3,846 5,062 7,376 7,240 2012 — — — — — 568 1,520 2,805 3,247 3,366 2013 — — — — — — 102 1,029 1,967 2,599 2014 — — — — — — — 388 1,527 2,564 2015 — — — — — — — — 25 440 2016 — — — — — — — — — 53 Total 101,814 All outstanding liabilities before 2007, net of reinsurance 1,038 Liabilities for losses and loss adjustment expenses, net of reinsurance $ 45,951 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Unaudited Medical technology liability 3.4 % 19.7 % 22.4 % 12.7 % 7.4 % 2.0 % 0.7 % — % 0.4 % — % Workers' Compensation Reserve Many factors affect the ultimate losses incurred for the workers' compensation coverages including, but not limited to, the type and severity of the injury, the age and occupation of the injured worker, the estimated length of disability, medical treatment and related costs, and the jurisdiction and workers' compensation laws of the injury occurrence. ProAssurance uses various actuarial methodologies in developing the workers’ compensation reserve combined with a review of the exposure base generally based upon payroll of the insured. For the current accident year, given the lack of seasoned information, the different actuarial methodologies produce results with considerable variability; therefore, more emphasis is placed on supplementing results from the actuarial methodologies with trends in exposure base, medical expense inflation, general inflation, severity, and claim counts, among other things, to select an expected loss ratio. Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2016 ($ in thousands) Years Ended December 31, IBNR* Cumulative Number of Reported Claims 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Accident Year Unaudited 2007 $ 47,772 $ 45,578 $ 48,591 $ 49,014 $ 48,878 $ 48,925 $ 49,925 $ 50,227 $ 50,773 $ 49,869 $ 327 13,552 2008 — 52,155 55,507 55,090 54,885 54,950 57,722 57,928 56,676 57,239 454 13,836 2009 — — 62,255 60,802 60,351 60,413 62,731 63,942 63,398 62,631 496 13,090 2010 — — — 75,699 74,196 73,647 72,742 72,278 72,504 71,684 775 15,960 2011 — — — — 84,074 84,762 90,769 91,491 90,993 91,149 903 18,776 2012 — — — — — 102,044 96,884 95,716 95,204 94,627 1,180 20,151 2013 — — — — — — 111,268 111,730 114,171 115,115 1,342 20,577 2014 — — — — — — — 120,443 121,128 121,206 8,096 21,175 2015 — — — — — — — — 135,960 132,408 33,567 22,122 2016 — — — — — — — — — 138,546 64,150 21,431 Total $ 934,474 * Includes expected development on reported claims Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (In thousands) Years Ended December 31, 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Accident Year Unaudited 2007 $ 14,042 $ 28,281 $ 39,648 $ 44,321 $ 47,607 $ 48,551 $ 48,744 $ 48,917 $ 49,364 $ 49,422 2008 — 15,246 35,879 45,998 51,256 54,050 55,697 56,305 56,582 56,727 2009 — — 19,575 42,122 52,428 57,971 60,445 61,150 61,951 62,052 2010 — — — 26,353 51,766 61,612 67,095 69,050 70,049 70,308 2011 — — — — 27,863 64,874 79,432 85,743 88,129 89,040 2012 — — — — — 34,574 70,179 82,953 88,350 91,291 2013 — — — — — — 38,125 82,320 100,522 107,019 2014 — — — — — — — 40,268 87,768 103,771 2015 — — — — — — — — 43,112 86,553 2016 — — — — — — — — — 39,199 Total 755,382 All outstanding liabilities before 2007, net of reinsurance 1,280 Liabilities for losses and loss adjustment expenses, net of reinsurance $ 180,372 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Unaudited Workers' compensation 31.7 % 36.1 % 16.1 % 7.6 % 4.0 % 1.7 % 0.8 % 0.3 % 0.6 % 0.1 % Lloyd's Syndicate Reserve Given the recent inception date for Syndicate 1729 (January 1, 2014) there is limited reliable historical claims data to use in establishing initial reserves for the exposures in the Lloyd's Syndicate segment. Consequently, ProAssurance estimates initial losses using the loss assumptions by risk category incorporated into the business plan submitted to Lloyd’s with consideration given to loss experience incurred to date. These assumptions are influenced by loss results in Lloyd's historical data for similar risks. In addition, Lloyd's market data for payment patterns is utilized to develop the payout patterns in the tables shown below. As the book of business matures and additional loss information becomes available, the actual loss experience of Syndicate 1729s book of business will be utilized to a greater extent. This will occur sooner for property coverages than for casualty coverages due to the shorter claim reporting and resolution time described above. Claim count information for assumed reinsurance coverage written by Syndicate 1729 is not meaningful in many instances. Certain reinsurance contracts provide aggregate coverage for loss events involving numerous underlying claims, resulting in a single claim count for reinsurance purposes, while other reinsurance contracts provide individual per-claim coverage. Still others may provide aggregate stop loss coverage based on the total losses or loss ratio of a class of business. As a result, claim count information is not included in the Lloyd’s Syndicate Casualty and Lloyd’s Syndicate Property Reinsurance tables shown below. Syndicate 1729 writes coverage in a variety of jurisdictions and currencies, although the majority of its business is in U.S. dollars. For purposes of the tables below, ProAssurance has elected to convert losses from their original currency to U.S. dollars using the exchange rate as of the end of the current period. This provides the purest trend information with respect to loss development, since the amounts in the table are not affected by exchange rate movements. However, the amounts for prior periods shown in the tables for prior periods will not reconcile to previously-issued financial statements which used existing exchange rates at the date of the financial statement. Lloyd's Syndicate Casualty Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2016 ($ in thousands) Years Ended December 31, IBNR (1) Cumulative Number of Reported Claims (2) 2014 2015 2016 Accident Year Unaudited 2014 $ 6,533 $ 6,533 $ 6,034 $ 1,531 nm 2015 — 14,591 14,591 5,733 nm 2016 — — 19,535 14,211 nm Total $ 40,160 (1) Includes expected development on reported claims (2) The abbreviation "nm" indicates that the information is not meaningful Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (In thousands) Years Ended December 31, 2014 2015 2016 Accident Year Unaudited 2014 $ 20 $ 523 $ 4,230 2015 — 678 6,296 2016 — — 2,394 Total 12,920 All outstanding liabilities before 2014, net of reinsurance — Liabilities for losses and loss adjustment expenses, net of reinsurance $ 27,240 Lloyd's Syndicate Property Insurance Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2016 ($ in thousands) Years Ended December 31, IBNR* Cumulative Number of Reported Claims 2014 2015 2016 Accident Year Unaudited 2014 $ 1,291 $ 1,291 $ 1,291 $ 106 71 2015 — 6,787 6,787 377 398 2016 — — 10,591 758 823 Total $ 18,669 * Includes expected development on reported claims Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (In thousands) Years Ended December 31, 2014 2015 2016 Accident Year Unaudited 2014 $ 267 $ 1,234 $ 1,090 2015 — 2,859 5,355 2016 — — 6,186 Total 12,631 All outstanding liabilities before 2014, net of reinsurance — Liabilities for losses and loss adjustment expenses, net of reinsurance $ 6,038 Lloyd's Syndicate Property Reinsurance Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2016 ($ in thousands) Years Ended December 31, IBNR (1) Cumulative Number of Reported Claims (2) 2014 2015 2016 Accident Year Unaudited 2014 $ 779 $ 779 $ 779 $ (126 ) nm 2015 — 3,107 3,107 639 nm 2016 — — 4,467 2,788 nm Total $ 8,353 (1) Includes expected development on reported claims (2) The abbreviation "nm" indicates that the information is not meaningful Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (In thousands) Years Ended December 31, 2014 2015 2016 Accident Year Unaudited 2014 $ 79 $ 827 $ 902 2015 — 1,392 1,729 2016 — — 771 Total 3,402 All outstanding liabilities before 2014, net of reinsurance — Liabilities for losses and loss adjustment expenses, net of reinsurance $ 4,951 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Unaudited Lloyd's Syndicate Casualty 24.7 % 49.4 % 16.7 % 6.0 % 2.0 % 0.4 % 0.4 % — % — % — % Lloyd's Syndicate Property Insurance 80.8 % 15.5 % 2.5 % 0.6 % 0.3 % 0.1 % 0.1 % — % — % — % Lloyd's Syndicate Property Reinsurance 78.6 % 16.4 % 2.8 % 1.6 % 0.4 % 0.2 % 0.1 % — % — % — % Below is a reconciliation of the claims development information to the Consolidated Balance Sheet: (In thousands) December 31, 2016 Net outstanding liabilities Healthcare professional liability claims-made $ 987,192 Healthcare professional liability occurrence 183,221 Medical technology liability claims-made 45,951 Workers' compensation 180,372 Lloyd's syndicate casualty 27,240 Lloyd's syndicate property insurance 6,038 Lloyd's syndicate property reinsurance 4,951 Other short-duration lines 106,499 Liabilities for losses and loss adjustment expenses, net of reinsurance 1,541,464 Reinsurance recoverable on unpaid losses Healthcare professional liability claims-made 132,460 Healthcare professional liability occurrence 22,576 Medical technology liability claims-made 44,627 Workers' compensation 52,111 Lloyd's syndicate casualty 172 Lloyd's syndicate property insurance 3,074 Lloyd's syndicate property reinsurance 2,094 Other short-duration lines 16,361 Total reinsurance recoverable on unpaid losses and loss adjustment expenses 273,475 Reserve for the future utilization of the DDR benefit 74,200 Unallocated loss adjustment expenses 111,628 Purchase accounting 4,653 Other (11,992 ) 178,489 Gross liability for losses and loss adjustment expenses $ 1,993,428 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies ProAssurance is involved in various legal actions related to insurance policies and claims handling including, but not limited to, claims asserted by policyholders. These types of legal actions arise in the Company’s ordinary course of business and, in accordance with GAAP for insurance entities, are considered as a part of the Company’s loss reserving process, which is described in detail under the heading "Losses and Loss Adjustment Expenses” in the Accounting Policies section of Note 1 . ProAssurance has funding commitments primarily related to non-public investment entities totaling approximately $131.2 million , expected to be paid as follows: $65.9 million in 2017, $42.0 million in 2018 and 2019 combined, $20.5 million in 2020 and 2021 combined and $2.8 million thereafter. Of these funding commitments, $1.4 million is related to qualified affordable housing project tax credit investments and is expected to be paid as follows: $0.4 million in 2017, $0.3 million in 2018 and 2019 combined, $0.3 million in 2020 and 2021 combined and $0.4 million thereafter. As a member of Lloyd's we are required to provide capital to support Syndicate 1729 through 2019 of up to $200.0 million , referred to as FAL . At December 31, 2016 , ProAssurance is satisfying the FAL requirement with investment securities on deposit with Lloyd's with a carrying value of $97.1 million (see Note 4 ). ProAssurance has issued an unconditional revolving credit agreement to the Premium Trust Fund of Syndicate 1729 for the purpose of providing working capital. Permitted borrowings were expanded from £10.0 million to £20.0 million under an amended Syndicate Credit Agreement executed in April 2016. Under the amended Syndicate Credit Agreement , advances bear interest at 3.8% annually, and may be repaid at any time but are repayable upon demand after December 31, 2019 . As of December 31, 2016 , the unused commitment under the Syndicate Credit Agreement approximated £11.2 million (approximately $13.8 million as of December 31, 2016 ). In conjunction with a strategic business partnership ProAssurance entered into during the third quarter of 2016, ProAssurance issued a line of credit of up to $9.0 million for the purpose of funding the entity's operations. The line of credit is non-interest bearing and may be repaid at any time but is repayable upon demand on or before August 31, 2017 . As of December 31, 2016 , the unused commitment under the line of credit approximated $5.5 million . ProAssurance is involved in a number of operating leases primarily for office space and office equipment. The following is a schedule of future minimum lease payments for operating leases that had initial or remaining non-cancelable lease terms in excess of one year as of December 31, 2016 . Operating Leases (In thousands) 2017 $ 5,027 2018 4,483 2019 4,049 2020 3,268 2021 3,054 Thereafter 9,127 Total minimum lease payments $ 29,008 ProAssurance incurred rent expense of $5.9 million , $5.1 million and $5.0 million in the years ended December 31, 2016 , 2015 and 2014 , respectively. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt ProAssurance’s outstanding debt consisted of the following: (In thousands) December 31, December 31, Senior notes due 2023, unsecured, interest at 5.3% annually $ 250,000 $ 250,000 Revolving Credit Agreement, outstanding borrowings are fully secured, see Note 4, and carried at a weighted average interest rate of 1.35%. The interest rate on the borrowings is set at the time the respective borrowing is initiated or renewed. The current borrowings can be repaid or renewed in the first quarter 2017. If renewed, the interest rate will be reset. 200,000 100,000 Total principal $ 450,000 $ 350,000 Less debt issuance costs 1,798 2,142 Debt less debt issuance costs $ 448,202 $ 347,858 Senior Notes due 2023 (the Senior Notes) The Senior Notes are the unsecured obligations of ProAssurance Corporation, due in full in November 2023, unless redeemed sooner, with interest payable semiannually. Redemptions may be made prior to maturity, in whole or part, at the greater of par or the sum of the present values of the outstanding principal and remaining interest payments calculated at 40 basis points above the then current rate for U.S. Treasury Notes with a term comparable to the remaining term of the Senior Notes. There are no financial covenants associated with the Senior Notes. Revolving Credit Agreement ProAssurance has entered into a Revolving Credit Agreement with seven participating lenders with an expiration date of June 2020 . The Revolving Credit Agreement permits ProAssurance to borrow, repay and reborrow from the lenders during the term of the Revolving Credit Agreement ; aggregate outstanding borrowings are not permitted to exceed $250 million at any time, which includes $50 million made available for use, if subscribed successfully, under an accordion feature. All borrowings are required to be repaid prior to the expiration date of the Revolving Credit Agreement . ProAssurance is required to pay a commitment fee, ranging from 12.5 to 25 basis points based on ProAssurance’s credit ratings, on the average unused portion of the credit line during the term of the Revolving Credit Agreement . Borrowings under the Revolving Credit Agreement may be secured or unsecured and accrue interest at a selected base rate, adjusted by a margin, which can vary from 0 to 163 basis points, based on ProAssurance’s credit ratings and whether the borrowing is secured or unsecured. The base rate selected may either be the current one-, three- or six-month LIBOR rate, with the LIBOR term selected fixing the interest period for which the rate is effective. If no selection is made, the base rate defaults to the highest of (1) the Prime rate (2) the Federal Funds rate plus 50 basis points or (3) the one month LIBOR rate plus 100 basis points, determined daily. Rates are reset each successive interest period until the borrowing is repaid. The Revolving Credit Agreement contains customary representations, covenants and events constituting default, and remedies for default. Additionally, the Revolving Credit Agreement carries the following financial covenants: (1) ProAssurance is not permitted to have a leverage ratio of Consolidated Funded Indebtedness (principally, obligations for borrowed money, obligations evidenced by instruments such as notes or acceptances, standby and commercial Letters of Credit, and contingent obligations) to Consolidated Total Capitalization (principally, total non-trade liabilities on a consolidated basis plus consolidated shareholders’ equity, exclusive of AOCI ) greater than 0.35 to 1.0 , determined at the end of each fiscal quarter. (2) ProAssurance is required to maintain a minimum net worth, excluding AOCI , of at least $1.3 billion. Funds borrowed under the terms of the Revolving Credit Agreement will be used for general corporate purposes, including, but not limited to, use as short-term working capital, funding for share repurchases as authorized by the Board and for support of other activities ProAssurance enters into in the normal course of business. Covenant Compliance ProAssurance is currently in compliance with all covenants. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity At December 31, 2016 and 2015 , ProAssurance had 100 million shares of authorized common stock and 50 million shares of authorized preferred stock. The Board has the authority to determine provisions for the issuance of preferred shares, including the number of shares to be issued, the designations, powers, preferences and rights, and the qualifications, limitations or restrictions of such shares. To date, the Board has not approved the issuance of preferred stock. The following is a summary of changes in common shares issued and outstanding during the years ended December 31, 2016 , 2015 and 2014 : (In thousands of shares) 2016 2015 2014 Issued and outstanding shares - January 1 53,101 56,534 61,197 Repurchase of shares, at cost of $2 million, $170 million and $222 million, respectively (44 ) (3,680 ) (4,909 ) Shares issued due to exercise of options and vesting of share-based compensation awards 108 150 154 Other shares issued for compensation and shares reissued to stock purchase plan* 86 97 92 Issued and outstanding shares - December 31 53,251 53,101 56,534 * Shares issued were valued at fair value (the market price of a ProAssurance common share on the date of issue). As of December 31, 2016 , approximately 2.2 million of ProAssurance's authorized common shares were reserved by the Board for award or issuance under the incentive compensation plans described in Note 12 and an additional 0.7 million of authorized common shares were reserved for the issuance of currently outstanding restricted share and performance share unit awards. ProAssurance declared cash dividends during 2016 , 2015 and 2014 as follows: Cash Dividends Declared, per Share 2016 2015 2014 First Quarter $ 0.31 $ 0.31 $ 0.30 Second Quarter $ 0.31 $ 0.31 $ 0.30 Third Quarter $ 0.31 $ 0.31 $ 0.30 Fourth Quarter* $ 5.00 $ 1.31 $ 2.96 * Includes special dividends of $4.69 , $1.00 and $2.65 per share for 2016 , 2015 and 2014 , respectively. Quarterly dividends were paid in the month following the quarter in which they were declared. Dividends declared during 2016 , 2015 and 2014 totaled $315.0 million , $119.9 million and $220.5 million , respectively. ProAssurance's ability to pay dividends to its shareholders is limited by its holding company structure, to the extent of the net assets held by its insurance subsidiaries, as discussed in Note 17 . Otherwise, there are no other regulatory restrictions on ProAssurance's retained earnings or net income that materially impact its ability to pay dividends. Based on Shareholders' Equity at December 31, 2016 , total equity of $441.0 million was free of debt covenant restrictions regarding the payment of dividends. However, any decision to pay future cash dividends is subject to the Board’s final determination after a comprehensive review of financial performance, future expectations and other factors deemed relevant by the Board. As of December 31, 2016 , Board authorizations for the repurchase of common shares or the retirement of outstanding debt of $109.6 million remained available for use. The timing and quantity of purchases depends upon market conditions and changes in ProAssurance's capital requirements and is subject to limitations that may be imposed on such purchases by applicable securities laws and regulations as well as the rules of the NYSE . Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss) For the years ended December 31, 2016 , 2015 and 2014 , OCI was primarily comprised of unrealized gains and losses, including non-credit impairment losses in 2016 and 2015 , arising during the period related to available-for-sale securities, less reclassification adjustments as shown in the table that follows, net of tax. For the years ended December 31, 2016 and 2015 , OCI also included gains and losses related to changes from the reestimation of two defined benefit plans assumed in the Eastern acquisition, both of which were frozen as to the earning of additional benefits and for which the related unrecognized benefit plan liability is reestimated annually. For the year ended December 31, 2016 , OCI included $1.0 million of unrecognized losses reclassified to earnings, net of tax, due to the termination of one of the defined benefit plans. For the year ended December 31, 2015 , OCI included a loss of $1.0 million , net of tax, related to unrecognized changes from the reestimation of both the defined benefit plan liabilities. At December 31, 2016 and 2015 , AOCI was primarily comprised of unrealized gains and losses from available-for-sale securities, including non-credit impairment losses of $0.3 million and $2.0 million , respectively, net of tax. During 2016, as discussed above, one of the defined benefit plans assumed in the Eastern acquisition was terminated and the related unrecognized losses were reclassified from AOCI to earnings (see table on the following page). At December 31, 2016 , unrecognized changes in the remaining defined benefit plan liability were nominal in amount. At December 31, 2015 , AOCI included losses of $1.0 million related to unrecognized changes in defined benefit plan liabilities, net of tax. All tax effects were computed using a 35% rate, with the exception of unrealized gains and losses on available for sale securities held at our U.K. and Cayman Island entities which were immaterial in amount. Amounts reclassified from AOCI to Net income and the amounts of deferred tax expense (benefit) included in OCI were as follows: (In thousands) 2016 2015 2014 Reclassifications from AOCI to Net income: Realized investment gains (losses) $ 2,417 $ (4,475 ) $ 3,317 Non-credit impairment losses reclassified to earnings, due to sale of securities or reclassification as a credit loss (3,641 ) (2,279 ) — Unrecognized losses in defined benefit plan liabilities reclassified to earnings, due to the termination and settlement of the plan (1,500 ) — — Total amounts reclassified, before tax effect (2,724 ) (6,754 ) 3,317 Tax effect (at 35%) 953 2,364 (1,161 ) Net reclassification adjustments $ (1,771 ) $ (4,390 ) $ 2,156 Deferred tax expense (benefit) included in OCI $ (3,078 ) $ (18,370 ) $ (785 ) |
Share-Based Payments
Share-Based Payments | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Payments | Share-Based Payments Share-based compensation costs are primarily classified as underwriting, policy acquisition and operating expenses. During 2016 , 2015 and 2014 , ProAssurance provided share-based compensation to employees utilizing three types of awards: restricted share units, performance share units, and purchase match units. The awards were made under either the ProAssurance Corporation Amended and Restated 2014 Equity Incentive Plan or the ProAssurance Corporation 2008 Equity Incentive Plan. The Compensation Committee of the Board is responsible for the administration of both plans. The following table provides a summary of compensation expense and the total related tax benefit recognized during each period as well as compensation cost that will be charged to expense in future periods, by award type. Share-Based Unrecognized Compensation Cost Year Ended December 31 December 31, 2016 2016 2015 2014 Amount Remaining (In millions) (In millions) (Weighted average years) Restricted Share Units $ 3.7 $ 2.5 $ 1.7 $ 4.4 1.7 Performance Share Units 7.6 5.9 7.6 5.7 1.6 Purchase Match Units 1.2 0.8 0.8 2.0 2.2 Total share-based compensation expense $ 12.5 $ 9.2 $ 10.1 $ 12.1 Tax benefit recognized $ 4.4 $ 3.2 $ 3.5 Each award type is charged to expense as an increase to equity over the service period (generally the vesting period) associated with the award. Restricted share and performance share units vest in their entirety at the end of a three -year period following the grant date based on a continuous service requirement and, for performance share units, achievement of a performance objective; partial vesting is permitted for retirees. Purchase match units vest over a three -year period based on a service requirement with partial vesting permitted for all participants. For the restricted share and purchase match units, a single share is issued per vested unit. For performance share units, the number of shares issued per vested unit varies based on performance goals achieved. For all types of awards, units sufficient to satisfy required tax withholdings are paid in cash rather than in shares. Restricted Share Units Activity for restricted share units during 2016 , 2015 and 2014 is summarized below. Grant date fair values are based on the market value of a ProAssurance common share on the date of grant less the estimated net present value of dividends during the vesting period. 2016 2015 2014 Units Weighted Units Weighted Units Weighted Beginning non-vested balance 178,468 $ 43.13 136,802 $ 42.03 138,770 $ 37.12 Granted 109,181 $ 45.59 91,943 $ 42.79 49,750 $ 42.95 Forfeited (5,954 ) $ 43.99 (1,342 ) $ 42.81 (2,044 ) $ 42.03 Vested and released (41,546 ) $ 44.04 (48,935 ) $ 39.45 (49,674 ) $ 29.22 Ending non-vested balance 240,149 $ 44.07 178,468 $ 43.13 136,802 $ 42.03 The aggregate grant date fair value of restricted share units vested and released in 2016 , 2015 and 2014 totaled $1.8 million , $1.9 million and $1.5 million , respectively. The aggregate intrinsic value of restricted share units vested and released (including units paid in cash to cover tax withholdings) totaled $2.1 million in 2016 and $2.3 million in both 2015 and 2014 . Performance Share Units Performance share units vest only if minimum performance objectives are met, and the number of units earned varies from 50% to 200% of a base award depending upon the degree to which stated performance objectives are achieved. Performance share unit activity for 2016 , 2015 and 2014 is summarized below. The table reflects the base number of units; actual awards that vest depend upon the extent to which performance objectives are achieved. Grant date fair values are based on the market value of a ProAssurance common share on the date of grant less the estimated net present value of dividends during the vesting period. 2016 2015 2014 Base Units Weighted Base Units Weighted Base Units Weighted Beginning non-vested balance 390,350 $ 44.65 466,860 $ 41.96 486,680 $ 37.94 Granted 60,000 $ 45.59 106,490 $ 42.79 160,900 $ 42.95 Forfeited (5,162 ) $ 43.02 (2,322 ) $ 46.05 (14,221 ) $ 42.40 Vested and released (139,948 ) $ 44.05 (180,678 ) $ 39.58 (166,499 ) $ 31.12 Ending non-vested balance 305,240 $ 43.41 390,350 $ 44.65 466,860 $ 41.96 The aggregate grant date fair value of performance share units (base level) vested and released in 2016 , 2015 and 2014 totaled $6.2 million , $7.2 million and $5.2 million , respectively. The aggregate intrinsic value of performance share units (base level) vested and released in 2016 , 2015 and 2014 (including units paid in cash to cover tax withholdings) totaled $6.9 million , $8.4 million and $7.7 million , respectively. The weighted average level at which the vested units were issued was 98% , 115% and 125% during 2016 , 2015 and 2014 , respectively, based on performance levels achieved. Purchase Match Units The ProAssurance Corporation 2011 Employee Stock Ownership Plan provides a purchase match unit for each share purchased with contributions by eligible plan participants, with participant contributions subject to a $5,000 annual limit per participant. Purchase match unit activity during 2016 , 2015 and 2014 is summarized below. Grant date fair values are based on the market value of a ProAssurance common share on the date of grant less the estimated net present value of dividends during the vesting period. 2016 2015 2014 Units Weighted Units Weighted Units Weighted Beginning non-vested balance 74,483 $ 42.80 72,101 $ 40.62 63,125 $ 38.51 Granted 23,903 $ 50.18 26,593 $ 46.09 29,069 $ 41.16 Forfeited (2,875 ) $ 43.77 (3,087 ) $ 41.03 (2,968 ) $ 40.21 Vested and released (22,896 ) $ 40.88 (21,124 ) $ 39.79 (17,125 ) $ 33.81 Ending non-vested balance 72,615 $ 45.77 74,483 $ 42.80 72,101 $ 40.62 The aggregate grant date fair value of purchase match units vested and released in 2016 , 2015 and 2014 totaled $0.9 million , $0.8 million and $0.6 million , respectively. The aggregate intrinsic value of purchase match share units vested and released in 2016 , 2015 and 2014 (including units paid in cash to cover tax withholdings) totaled $1.2 million , $1.0 million and $0.8 million , respectively. Stock Options ProAssurance also had certain fully-vested employee stock options outstanding during 2016 , 2015 and 2014 , as summarized below. 2016 2015 2014 Options Weighted Options Weighted Options Weighted Outstanding, vested and exercisable, beginning of year 2,114 $ 25.02 4,456 $ 24.64 18,082 $ 23.00 Exercised (2,114 ) $ 25.02 (2,342 ) $ 24.13 (13,626 ) $ 22.47 Outstanding, vested and exercisable, end of year — $ — 2,114 $ 25.02 4,456 $ 24.64 The aggregate intrinsic value of options exercised during 2016 , 2015 and 2014 totaled $0.1 million , $0.1 million and $0.3 million , respectively. ProAssurance had no outstanding options at December 31, 2016 .There were no cash proceeds from options exercised during the years ended December 31, 2016 , 2015 or 2014 . |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities ProAssurance holds passive interests in a number of entities that are considered to be VIE s under GAAP guidance. As of January 1, 2016, ProAssurance has retrospectively adopted new guidance regarding the evaluation of whether or not entities are VIE s and the consolidation analysis required for VIE s (see Note 1 of the Notes to Consolidated Financial Statements). Adoption of the new guidance increased the number of ProAssurance investment interests considered to be interests in VIE s but did not require that any of the VIE interests be consolidated. ProAssurance's VIE interests principally consist of interests in LP s/ LLC s formed for the purpose of achieving diversified equity and debt returns. ProAssurance's VIE interests carried as a part of Other investments totaled $26.9 million at December 31, 2016 and $26.0 million at December 31, 2015 . ProAssurance VIE interests, carried as a part of Investment in unconsolidated subsidiaries, totaled $282.3 million at December 31, 2016 and $275.0 million at December 31, 2015 . ProAssurance does not have power over the activities that most significantly impact the economic performance of these VIE s and thus is not the primary beneficiary. Therefore, ProAssurance has not consolidated these VIE s. ProAssurance’s involvement with each entity is limited to its direct ownership interest in the entity. ProAssurance has no arrangements with any of the entities to provide other financial support to or on behalf of the entity. At December 31, 2016 , ProAssurance’s maximum loss exposure relative to these investments was limited to the carrying value of ProAssurance’s investment in the VIE . |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Diluted weighted average shares is calculated as basic weighted average shares plus the effect, calculated using the treasury stock method, of assuming that performance and restricted share units and purchase match units have vested. All outstanding performance and restricted share units and purchase match units had a dilutive effect for the years ended December 31, 2016 , 2015 and 2014 . |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information ProAssurance operates in four segments that are organized around the nature of the products and services provided: Specialty P&C , Workers' Compensation, Lloyd's Syndicate and Corporate. A description of each segment follows. Specialty P&C is primarily focused on professional liability insurance and medical technology liability insurance. Professional liability insurance is primarily offered to healthcare providers and institutions and to attorneys and their firms. Medical technology liability insurance is offered to medical technology and life sciences companies that manufacture or distribute products including entities conducting human clinical trials. The Specialty P&C segment cedes certain premium to the Lloyd's Syndicate segment under a quota share agreement with Syndicate 1729 . As discussed below, Syndicate 1729 operating results are reported on a quarter delay. For consistency purposes, results from this ceding arrangement, other than cash receipts or disbursements, have been reported within the Specialty P&C segment on the same one quarter delay. Workers' Compensation provides workers' compensation products primarily to employers with 1,000 or fewer employees. The segment also offers alternative market solutions whereby policies written are 100% ceded either to captive insurers unaffiliated with ProAssurance or to SPC s operated by a wholly owned subsidiary of ProAssurance. Each SPC is owned, fully or in part, by an agency, group or association. Operating results (underwriting profit or loss, plus investment results) of the SPC s are due to the owners of that cell. Lloyd's Syndicate includes operating results from ProAssurance's 58% participation in Lloyd's of London Syndicate 1729 . Syndicate 1729 underwrites risks over a wide range of property and casualty insurance and reinsurance lines in both the U.S. and international markets. The results of this segment are reported on a quarter delay, except that investment results associated with investment assets solely allocated to Syndicate 1729 operations and certain U.S. paid administrative expenses are reported concurrently as that information is available on an earlier time frame. Corporate includes ProAssurance's investment operations, interest expense and U.S. income taxes, all of which are managed at the corporate level with the exception of investment assets solely allocated to Syndicate 1729 as discussed above. The segment also includes non-premium revenues generated outside of our insurance entities and corporate expenses. The accounting policies of the segments are the same as those described in Note 1 . ProAssurance evaluates performance of its Specialty P&C and Workers' Compensation segments based on before tax underwriting profit or loss, which excludes investment performance. Performance of the Lloyd's Syndicate segment is evaluated based on underwriting profit or loss, plus investment results of investment assets solely allocated to Syndicate 1729 operations, net of U.K. income tax expense. Performance of the Corporate segment is evaluated based on the contribution made to consolidated after tax results. ProAssurance accounts for inter-segment transactions as if the transactions were to third parties at current market prices. Assets are not allocated to segments because investments and other assets are not managed at the segment level. Financial results by segment were as follows: Year Ended December 31, 2016 (In thousands) Specialty P&C Workers' Compensation Lloyd's Syndicate Corporate Inter-segment Eliminations Consolidated Net premiums earned $ 457,816 $ 220,815 $ 54,650 $ — $ — $ 733,281 Net investment income — — 1,410 98,602 — 100,012 Equity in earnings (loss) of unconsolidated subsidiaries — — — (5,762 ) — (5,762 ) Net realized gains (losses) — — 76 34,799 — 34,875 Other income 5,306 844 1,415 1,069 (826 ) 7,808 Net losses and loss adjustment expenses (268,579 ) (140,534 ) (34,116 ) — — (443,229 ) Underwriting, policy acquisition and operating expenses (104,333 ) (70,464 ) (22,832 ) (30,807 ) 826 (227,610 ) Segregated portfolio cells dividend (expense) income (144 ) (7,998 ) — — — (8,142 ) Interest expense — — — (15,032 ) — (15,032 ) Income tax benefit (expense) — — (384 ) (24,736 ) — (25,120 ) Segment operating results $ 90,066 $ 2,663 $ 219 $ 58,133 $ — $ 151,081 Significant non-cash items: Depreciation and amortization $ 7,268 $ 5,600 $ 132 $ 19,789 $ — $ 32,789 Year Ended December 31, 2015 (In thousands) Specialty P&C Workers' Compensation Lloyd's Syndicate Corporate Inter-segment Eliminations Consolidated Net premiums earned $ 443,313 $ 213,161 $ 37,675 $ — $ — $ 694,149 Net investment income — — 928 107,732 — 108,660 Equity in earnings (loss) of unconsolidated subsidiaries — — — 3,682 — 3,682 Net realized gains (losses) — — 24 (41,663 ) — (41,639 ) Other income 4,561 492 698 2,057 (581 ) 7,227 Net losses and loss adjustment expenses* (250,168 ) (140,744 ) (25,181 ) — 5,382 (410,711 ) Underwriting, policy acquisition and operating expenses* (105,574 ) (63,653 ) (18,518 ) (24,518 ) (4,801 ) (217,064 ) Segregated portfolio cells dividend (expense) income — (853 ) — — — (853 ) Interest expense — — — (14,596 ) — (14,596 ) Income tax benefit (expense) — — (1,240 ) (11,418 ) — (12,658 ) Segment operating results $ 92,132 $ 8,403 $ (5,614 ) $ 21,276 $ — $ 116,197 Significant non-cash items: Depreciation and amortization $ 8,663 $ 5,696 $ 417 $ 21,442 $ — $ 36,218 * In 2015, the portion of the management fee that was allocated to ULAE was eliminated in consolidation. During 2016, ProAssurance discontinued the practice of eliminating in consolidation the portion of the management fee that was allocated to ULAE, thus there was no similar elimination in 2016. Year Ended December 31, 2014 (In thousands) Specialty P&C Workers' Compensation Lloyd's Syndicate Corporate Inter-segment Eliminations Consolidated Net premiums earned $ 492,733 $ 194,540 $ 12,458 $ — $ — $ 699,731 Net investment income — — 410 125,147 — 125,557 Equity in earnings (loss) of unconsolidated subsidiaries — — — 3,986 — 3,986 Net realized gains (losses) — — 4 14,650 — 14,654 Other income 5,823 645 126 2,285 (481 ) 8,398 Net losses and loss adjustment expenses (228,199 ) (126,447 ) (8,438 ) — — (363,084 ) Underwriting, policy acquisition and operating expenses (133,132 ) (60,357 ) (9,535 ) (8,768 ) 481 (211,311 ) Segregated portfolio cells dividend (expense) income — (1,842 ) — — — (1,842 ) Interest expense — — — (14,084 ) — (14,084 ) Income tax benefit (expense) — — — (65,440 ) — (65,440 ) Segment operating results $ 137,225 $ 6,539 $ (4,975 ) $ 57,776 $ — $ 196,565 Significant non-cash items: Depreciation and amortization $ 8,945 $ 5,828 $ 477 $ 24,344 $ — $ 39,594 The following table provides detailed information regarding ProAssurance's gross premiums earned by product as well as a reconciliation to net premiums earned. All gross premiums earned are from external customers except as noted. ProAssurance's insured risks are primarily within the U.S. Year Ended December 31 (In thousands) 2016 2015 2014 Specialty P&C Segment Gross premiums earned: Healthcare professional liability $ 474,981 $ 463,599 $ 477,031 Legal professional liability 26,125 28,234 28,278 Medical technology liability 34,158 34,838 35,913 Other 667 1,447 1,830 Ceded premiums earned (78,115 ) (84,805 ) (50,319 ) Segment net premiums earned 457,816 443,313 492,733 Workers' Compensation Segment Gross premiums earned: Traditional business 170,492 172,115 160,717 Alternative market business 75,658 66,168 55,616 Ceded premiums earned (25,335 ) (25,122 ) (21,793 ) Segment net premiums earned 220,815 213,161 194,540 Lloyd's Syndicate Segment Gross premiums earned: Property and casualty* 60,564 43,617 13,429 Ceded premiums earned (5,914 ) (5,942 ) (971 ) Segment net premiums earned 54,650 37,675 12,458 Consolidated Net premiums earned $ 733,281 $ 694,149 $ 699,731 * Includes premium assumed from the Specialty P&C segment of $14.0 million , $14.4 million and $4.2 million for years ended December 31, 2016 , 2015 and 2014 , respectively. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Benefit Plans | Benefit Plans ProAssurance maintains the ProAssurance Savings Plan that is intended to provide retirement income to eligible employees. ProAssurance provides employer contributions to the plan of between 5% and 10% of salary for qualified employees. During 2014, ProAssurance also maintained similar plans of acquired entities prior to the plans being merged into the ProAssurance Savings Plan. ProAssurance incurred expense related to savings and retirement plans of $6.9 million , $7.0 million and $6.0 million during the years ended December 31, 2016 , 2015 and 2014 , respectively. ProAssurance also maintains the ProAssurance Plan that allows participating management employees to defer a portion of their current salary. ProAssurance incurred expense related to the ProAssurance Plan of $0.3 million , $0.4 million , and $0.3 million during the years ended December 31, 2016 , 2015 and 2014 , respectively. ProAssurance deferred compensation liabilities totaled $17.2 million and $14.9 million at December 31, 2016 and 2015 , respectively. The liabilities included amounts due under the ProAssurance Plan and amounts due under individual agreements with current or former employees. |
Statutory Accounting and Divide
Statutory Accounting and Dividend Restrictions | 12 Months Ended |
Dec. 31, 2016 | |
Insurance [Abstract] | |
Statutory Accounting and Dividend Restrictions | Statutory Accounting and Dividend Restrictions ProAssurance’s domestic U.S. insurance subsidiaries are required to file statutory financial statements with state insurance regulatory authorities, prepared based upon statutory accounting practices prescribed or permitted by regulatory authorities. ProAssurance did not use any prescribed or permitted statutory accounting practices that differed from the NAIC 's statutory accounting practices at December 31, 2016 , 2015 or 2014 . Differences between Net income prepared in accordance with GAAP and statutory net income are principally due to: (a) policy acquisition and certain software and equipment costs which are deferred under GAAP but expensed for statutory purposes and (b) certain deferred income taxes which are recognized under GAAP but are not recognized for statutory purposes. The NAIC specifies risk-based capital requirements for property and casualty insurance providers. At December 31, 2016 , actual statutory capital and surplus for each of ProAssurance’s insurance subsidiaries substantially exceeded the regulatory requirements. Net earnings and capital and surplus of ProAssurance’s insurance subsidiaries on a statutory basis are shown in the following table. (In millions) Statutory Net Earnings Statutory Capital and Surplus 2016 2015 2014 2016 2015 $163 $168 $246 $1,403 $1,506 At December 31, 2016 , $1.6 billion of ProAssurance's consolidated net assets were held at its domestic insurance subsidiaries, of which approximately $174 million are permitted to be paid as dividends over the course of 2017 without prior approval of state insurance regulators. However, the payment of any dividend requires prior notice to the insurance regulator in the state of domicile and the regulator may prevent the dividend if, in its judgment, payment of the dividend would have an adverse effect on the capital and surplus of the insurance subsidiary. |
Quarterly Results of Operations
Quarterly Results of Operations (unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |
Quarterly Results of Operations (unaudited) | Quarterly Results of Operations (unaudited) The following is a summary of unaudited quarterly results of operations for 2016 and 2015 : 2016 (In thousands, except per share data) 1st 2nd 3rd 4th Net premiums earned $ 177,579 $ 176,732 $ 185,275 $ 193,694 Net losses and loss adjustment expenses: Current year 139,660 143,668 147,093 156,585 Prior year (28,705 ) (36,769 ) (29,011 ) (49,292 ) Net income 19,317 43,081 33,834 54,848 Basic earnings per share 0.36 0.81 0.64 1.03 Diluted earnings per share 0.36 0.81 0.63 1.02 2015 (In thousands, except per share data) 1st 2nd 3rd 4th Net premiums earned $ 171,899 $ 175,293 $ 182,085 $ 164,874 Net losses and loss adjustment expenses: Current year 138,654 139,057 145,027 149,157 Prior year (33,514 ) (35,115 ) (36,221 ) (56,330 ) Net income 37,814 33,158 10,276 34,948 Basic earnings per share 0.67 0.60 0.19 0.66 Diluted earnings per share 0.67 0.60 0.19 0.65 * Quarterly and year-to-date computations of per share amounts are made independently; therefore, the sum of per share amounts for the quarters may not equal per share amounts for the respective year-to-date periods. |
Schedule I - Summary of Investm
Schedule I - Summary of Investments - Other Than Investments In Related Parties | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Schedule I - Summary of Investments Other than Investments in Related Parties | December 31, 2016 Type of Investment Recorded Fair Amount Which is Fixed Maturities Bonds: U.S. Government or government agencies and authorities $ 176,224 $ 176,774 $ 176,774 States, municipalities and political subdivisions 790,154 800,463 800,463 Foreign governments 5,488 5,524 5,524 Public utilities 88,886 91,038 91,038 All other corporate bonds 1,170,288 1,182,279 1,182,279 Certificates of deposit 150 150 150 Mortgage-backed securities 355,631 357,178 357,178 Total Fixed Maturities 2,586,821 2,613,406 2,613,406 Equity Securities, trading Common Stocks: Public utilities 10,365 12,100 12,100 Banks, trusts and insurance companies 72,416 81,749 81,749 Industrial, miscellaneous and all other 270,963 293,425 293,425 Total Equity Securities, trading 353,744 387,274 387,274 Other long-term investments 418,707 491,298 482,932 Short-term investments 442,084 442,084 442,084 Total Investments $ 3,801,356 $ 3,934,062 $ 3,925,696 |
Schedule II - Condensed Financi
Schedule II - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule II - Condensed Financial Information of Registrant | December 31, December 31, Assets Investment in subsidiaries, at equity $ 1,908,663 $ 2,026,247 Fixed maturities available for sale, at fair value 267,412 202,501 Short-term investments 279,510 16,716 Investment in unconsolidated subsidiaries 845 — Cash and cash equivalents 31,330 103,292 Due from subsidiaries 185 — Other assets 33,350 46,146 Total Assets $ 2,521,295 $ 2,394,902 Liabilities and Shareholders’ Equity Liabilities: Due to subsidiaries $ — $ 14,803 Dividends payable 265,659 69,447 Other liabilities 8,733 4,440 Debt less debt issuance costs 448,202 347,858 Total Liabilities 722,594 436,548 Shareholders’ Equity: Common stock 627 625 Other shareholders’ equity, including unrealized gains (losses) on securities of subsidiaries 1,798,074 1,957,729 Total Shareholders’ Equity 1,798,701 1,958,354 Total Liabilities and Shareholders’ Equity $ 2,521,295 $ 2,394,902 Year Ended December 31 2016 2015 2014 Net investment income $ 6,359 $ 5,017 $ 3,295 Equity in earnings (loss) of unconsolidated subsidiaries (155 ) — — Net realized investment gains (losses) 405 4,673 990 Other income (loss) (960 ) 378 660 5,649 10,068 4,945 Expenses: Interest expense 15,030 14,596 14,084 Other expenses 28,305 24,695 7,083 43,335 39,291 21,167 Income (loss) before income tax expense (benefit) and equity in net income of consolidated subsidiaries (37,686 ) (29,223 ) (16,222 ) Income tax expense (benefit) (12,583 ) (11,657 ) (6,728 ) Income (loss) before equity in net income of consolidated subsidiaries (25,103 ) (17,566 ) (9,494 ) Equity in net income of consolidated subsidiaries 176,184 133,763 206,059 Net income $ 151,081 $ 116,197 $ 196,565 Other comprehensive income (6,456 ) (34,349 ) (1,457 ) Comprehensive income $ 144,625 $ 81,848 $ 195,108 Year Ended December 31 2016 2015 2014 Net cash provided (used) by operating activities $ (10,549 ) $ (14,411 ) $ 20,086 Investing activities Purchases of equity securities trading — — (310 ) (Investments in) distributions from unconsolidated subsidiaries, net: Other partnership investments (1,000 ) — — Proceeds from sale or maturities of: Fixed maturities, available for sale 100,240 200,245 104,844 Equity securities trading — — 12,813 Net decrease (increase) in short-term investments (262,169 ) 26,074 149,202 Dividends from subsidiaries 122,030 107,870 67,188 Contribution of capital to subsidiaries (1,983 ) — (7,000 ) (Increase) decrease in restricted cash — — 78,000 Unsettled security transactions, net of change (1,100 ) — — Funds (advanced) repaid for Syndicate 1729 FAL deposit — (9,642 ) (76,553 ) Funds (advanced) repaid under Syndicate 1729 credit agreement 1,695 (3,083 ) (9,107 ) Funds (advanced) repaid under strategic partnership line of credit (3,090 ) — — Other (2,805 ) (289 ) 415 Net cash provided (used) by investing activities (48,182 ) 321,175 319,492 Financing activities Proceeds from debt 100,000 100,000 — Repurchase of common stock (2,106 ) (172,772 ) (222,360 ) Subsidiary payments for common shares and share-based compensation awarded to subsidiary employees 11,384 6,063 8,301 Excess of tax benefit from share-based payment arrangements 688 379 1,631 Dividends to shareholders (118,812 ) (217,626 ) (70,490 ) Other (4,385 ) (6,716 ) (6,919 ) Net cash provided (used) by financing activities (13,231 ) (290,672 ) (289,837 ) Increase (decrease) in cash and cash equivalents (71,962 ) 16,092 49,741 Cash and cash equivalents, beginning of period 103,292 87,200 37,459 Cash and cash equivalents, end of period $ 31,330 $ 103,292 $ 87,200 Supplemental disclosure of cash flow information: Cash paid during the year for income taxes, net of refunds $ (8,519 ) $ 47,004 $ 26,764 Cash paid during the year for interest $ 14,732 $ 13,996 $ 13,408 Significant non-cash transactions: Dividends declared and not yet paid $ 265,659 $ 69,447 $ 167,744 Securities transferred at fair value as dividends from subsidiaries $ 174,270 $ 206,880 $ 227,412 Non-cash capital contribution to subsidiaries $ — $ 87,719 $ — Basis of Presentation The registrant-only financial statements should be read in conjunction with ProAssurance Corporation’s Consolidated Financial Statements and Notes thereto. At December 31, 2016 and 2015 , PRA Parent’s investment in subsidiaries is stated at the initial consolidation value plus equity in the undistributed earnings of subsidiaries since the date of acquisition. ProAssurance Corporation has a management agreement with several of its insurance subsidiaries whereby ProAssurance Corporation charges the subsidiaries a management fee for various management services provided to the subsidiary. Under the arrangement, the expenses associated with such services remain as expenses of ProAssurance Corporation and the management fee charged is reported as an offset to ProAssurance Corporation expenses. Prior to 2015, a substantial portion of expenses associated with services provided to insurance subsidiaries were directly allocated or directly charged to the insurance subsidiaries. Reclassifications On January 1, 2016 in accordance with adopted guidance, ProAssurance began presenting debt issuance costs as a direct deduction from the carrying amount of Debt on the Consolidated Balance Sheets and the Condensed Balance Sheets of the Registrant, and the respective December 31, 2016 and 2015 Balance Sheets have been conformed to the current presentation. Previously, debt issuance costs ( $2.1 million at December 31, 2015 ) were reported in Other assets. |
Schedule III - Supplementary In
Schedule III - Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2016 | |
Supplementary Insurance Information [Abstract] | |
Schedule III - Supplementary Insurance Information | 2016 2015 2014 Net premiums earned Specialty P&C $ 457,816 $ 443,313 $ 492,733 Workers' Compensation 220,815 213,161 194,540 Lloyd's Syndicate 54,650 37,675 12,458 Consolidated 733,281 694,149 699,731 Net investment income (1) Lloyd's Syndicate 1,410 928 410 Corporate 98,602 107,732 125,147 Consolidated 100,012 108,660 125,557 Losses and loss adjustment expenses incurred related to current year, net of reinsurance Specialty P&C 405,738 409,149 408,987 Workers' Compensation 146,654 142,943 127,743 Lloyd's Syndicate 34,615 25,181 8,438 Inter-segment eliminations — (5,382 ) — Consolidated 587,007 571,891 545,168 Losses and loss adjustment expenses incurred related to prior year, net of reinsurance Specialty P&C (137,159 ) (158,981 ) (180,788 ) Workers' Compensation (6,120 ) (2,199 ) (1,296 ) Lloyd's Syndicate (499 ) — — Consolidated (143,778 ) (161,180 ) (182,084 ) Paid losses and loss adjustment expenses, net of reinsurance Specialty P&C 343,678 346,606 389,458 Workers' Compensation 114,320 126,296 117,775 Lloyd's Syndicate 21,254 7,549 404 Inter-segment eliminations — (5,416 ) — Consolidated 479,252 475,035 507,637 Amortization of DPAC Specialty P&C 45,019 45,459 55,105 Workers' Compensation 29,590 26,232 10,307 Lloyd's Syndicate 13,769 7,841 3,165 Inter-segment eliminations — 24 — Consolidated 88,378 79,556 68,577 Other underwriting, policy acquisition and operating expenses Specialty P&C 59,314 60,115 78,027 Workers' Compensation 40,874 37,421 50,050 Lloyd's Syndicate 9,063 10,677 6,370 Corporate 30,807 24,518 8,768 Inter-segment eliminations (826 ) 4,777 (481 ) Consolidated 139,232 137,508 142,734 Net premiums written Specialty P&C 458,681 442,126 467,046 Workers' Compensation 223,578 218,338 202,697 Lloyd's Syndicate 56,274 48,821 32,106 Consolidated 738,533 709,285 701,849 Deferred policy acquisition costs (1) 46,809 44,388 38,790 Reserve for losses and loss adjustment expenses (1) 1,993,428 2,005,326 2,058,266 Unearned premiums (1) 372,563 362,066 345,828 (1) Assets are not allocated to segments because investments and assets are not managed at the segment level. |
Schedule IV - Reinsurance
Schedule IV - Reinsurance | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | |
Schedule IV - Reinsurance | 2016 2015 2014 Property and Liability * Premiums earned $ 790,791 $ 772,968 $ 755,623 Premiums ceded (95,315 ) (101,510 ) (68,879 ) Premiums assumed 37,805 22,691 12,987 Net premiums earned $ 733,281 $ 694,149 $ 699,731 Percentage of amount assumed to net 5.16% 3.27% 1.86% * All of ProAssurance’s premiums are related to property and liability coverages. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Organization and Nature of Business | Organization and Nature of Business ProAssurance Corporation (ProAssurance, PRA or the Company), a Delaware corporation, is an insurance holding company primarily for wholly owned specialty property and casualty insurance entities including an entity that is the majority capital provider to Syndicate 1729 at Lloyd's of London. Risks insured are primarily liability risks located within the U.S. As described in more detail in Note 15 , ProAssurance operates in four reportable segments: Specialty P&C , Workers' Compensation, Lloyd's Syndicate and Corporate. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of ProAssurance Corporation and its wholly owned subsidiaries. Investments in entities where ProAssurance holds a greater than minor interest but does not hold a controlling interest are accounted for using the equity method. All significant intercompany accounts and transactions are eliminated in consolidation. ProAssurance subsidiaries located in the U.K. are reported on a quarter delay due to timing issues regarding the availability of information, except there is no delay related to subsidiary investments managed in the U.S. as that information is available on an earlier schedule. |
Basis of Presentation | Basis of Presentation The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and disclosures related to these amounts at the date of the financial statements. Actual results could differ from those estimates. |
Reclassifications | Reclassifications On January 1, 2016, in accordance with adopted guidance, ProAssurance began presenting debt issuance costs as a direct deduction from the carrying amount of Debt on the Consolidated Balance Sheets, and the December 31, 2016 and 2015 Consolidated Balance Sheets have been conformed to the current presentation. |
Recognition of Revenues | Earned But Unbilled Premiums Workers’ compensation premiums are determined based upon the payroll of the insured, the applicable premium rates and, where applicable, an experience based modification factor. An audit of the policyholders’ records is conducted after policy expiration to make a final determination of applicable premiums. Audit premium due from or due to a policyholder as a result of an audit is reflected in net premiums earned when billed. ProAssurance tracks, by policy, the amount of additional premium billed in final audit invoices as a percentage of payroll exposure and uses this information to estimate the probable additional amount that it has earned, but not yet billed, as of the balance sheet date. Changes to the EBUB estimate are included in Net premiums earned in the period recognized. Recognition of Revenues Insurance premiums are recognized as revenues pro rata over the terms of the policies, which are principally one year in duration. Credit Losses ProAssurance's premium and agency receivables are exposed to credit losses, but to-date have not experienced any significant amount of credit losses. |
Losses and Loss Adjustment Expenses | Losses and Loss Adjustment Expenses ProAssurance establishes its reserve for losses and loss adjustment expenses ("reserve for losses" or "reserve") based on estimates of the future amounts necessary to pay claims and expenses associated with the investigation and settlement of claims. The reserve for losses is determined on the basis of individual claims and payments thereon as well as actuarially determined estimates of future losses based on past loss experience, available industry data and projections as to future claims frequency, severity, inflationary trends, judicial trends, legislative changes and settlement patterns. Management establishes the reserve for losses after taking into consideration a variety of factors including the conclusions reached by internal and consulting actuaries, premium rates, claims frequency, historical paid and incurred loss development trends, the expected effect of inflation, general economic trends, and the legal and political environment. Management updates and reviews the data underlying the estimation of the reserve for losses each reporting period and makes adjustments to loss estimation assumptions that best reflect emerging data. Both internal and consulting actuaries perform an in-depth review of the reserve for losses on at least a semi-annual basis using the loss and exposure data of ProAssurance's subsidiaries. Consulting actuaries provide reports to management regarding the adequacy of reserves. Estimating casualty insurance reserves, and particularly long-tailed insurance reserves, is a complex process. Long-tailed insurance is characterized by the extended period of time between collecting the premium for insuring a risk and the ultimate payment of losses. For a high proportion of the risks insured or reinsured by ProAssurance the period of time required to resolve a claim is often five years or more, and claims may be subject to litigation. Estimating losses for these long-tailed claims requires ProAssurance to make and revise judgments and assessments regarding multiple uncertainties over an extended period of time. As a result, reserve estimates may vary significantly from the eventual outcome. Reserve estimates and the assumptions on which these estimates are predicated are regularly reviewed and updated as new information becomes available. Any adjustments necessary are reflected in then current operations. Due to the size of ProAssurance’s reserve for losses, even a small percentage adjustment to these estimates could have a material effect on earnings in the period in which the adjustment is made, as was the case in 2016 , 2015 and 2014 . The effect of adjustments made to reinsured losses is mitigated by the corresponding adjustment that is made to reinsurance recoveries. Thus, in any given year, ProAssurance may make significant adjustments to gross losses that have little effect on its net losses. |
Reinsurance Receivables | Reinsurance Receivables ProAssurance enters into reinsurance agreements whereby other insurance entities agree to assume a portion of the risk associated with certain policies issued by ProAssurance. In return, ProAssurance agrees to pay a premium to the reinsurer. ProAssurance uses reinsurance to provide capacity to write larger limits of liability, to provide reimbursement for losses incurred under the higher limit coverages we offer, to provide protection against losses in excess of policy limits, and as a mechanism for providing custom insurance solutions. Receivable from reinsurers on paid losses and loss adjustment expenses is the estimated amount of losses already paid that will be recoverable from reinsurers. Receivable from reinsurers on unpaid losses and loss adjustment expenses is the estimated amount of future loss payments that will be recoverable from reinsurers. Reinsurance recoveries are the portion of losses incurred during the period that are estimated to be allocable to reinsurers. Premiums ceded are the estimated premiums that will be due to reinsurers with respect to premiums earned and losses incurred during the period. These estimates are based upon management’s estimates of ultimate losses and the portion of those losses that are allocable to reinsurers under the terms of the related reinsurance agreements. Given the uncertainty of the ultimate amounts of losses, these estimates may vary significantly from the ultimate outcome. Management regularly reviews these estimates and any adjustments necessary are reflected in the period in which the estimate is changed. Due to the size of the receivable from reinsurers, even a small adjustment to the estimates could have a material effect on ProAssurance’s results of operations for the period in which the change is made. Reinsurance contracts do not relieve ProAssurance from its obligations to policyholders. ProAssurance continually monitors its reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. Any amount determined to be uncollectible is written off in the period in which the uncollectible amount is identified. |
Investments | Investments Fair Values Fair values of investment securities are primarily provided by independent pricing services. The pricing services provide an exchange traded price, if available, or provide an estimated price determined using multiple observable inputs, including exchange traded prices for similar assets. Management reviews valuations of securities obtained from the pricing services for accuracy based upon the specifics of the security, including class, maturity, credit rating, durations, collateral and comparable markets for similar securities. Multiple observable inputs are not available for certain of our investments, including corporate debt not actively traded, other asset-backed securities, and investments in LP s/ LLC s. Management values the corporate debt not actively traded and the other asset-backed securities either using dealer quotes for similar securities or discounted cash flow models using yields currently available for similar securities. Management values certain investments in LP s/ LLC s based on the NAV of the interest held, as provided by the fund. Fixed Maturities and Equity Securities Fixed maturities and equity securities are considered as either available-for-sale or trading securities. Available-for-sale securities are carried at fair value, determined as described above. Exclusive of OTTI losses, discussed in a separate section that follows, unrealized gains and losses on available-for-sale securities are included, net of related tax effects, in Shareholders’ Equity as a component of AOCI . Investment income includes amortization of premium and accretion of discount related to available-for-sale debt securities acquired at other than par value. Debt securities and mandatorily redeemable preferred stock with maturities beyond one year when purchased are classified as fixed maturities. Trading portfolio securities are carried at fair value, determined as described above, with the holding gains and losses included in realized investment gains and losses in the current period. Short-term Investments Short-term investments, which have a maturity at purchase of one year or less, are primarily comprised of investments in U.S. Treasury obligations, commercial paper and money market funds. All balances are reported at amortized cost, which approximates fair value. Other Investments Investments in LP s/ LLC s where ProAssurance has virtually no influence over the operating and financial policies of an investee are accounted for using the cost method. Under the cost method, investments are valued at cost, with investment income recognized when received. Investments in convertible bond securities are carried at fair value as permitted by the accounting guidance for hybrid financial instruments, with changes in fair value recognized in income as a component of Net realized investment gains (losses) during the period of change. Interest on convertible bond securities is recorded on an accrual basis based on contractual interest rates and is included in Net investment income. Investment in Unconsolidated Subsidiaries Investments in LP s/ LLC s where ProAssurance is deemed to have influence because it holds a greater than a minor interest are accounted for using the equity method. Under the equity method, the recorded basis of the investment is adjusted each period for the investor’s pro rata share of the investee’s income or loss. Investments in unconsolidated subsidiaries include tax credit partnerships accounted for using the equity method, whereby ProAssurance’s proportionate share of income or loss is included in investment income. Tax credits received from the partnerships are recognized in the period received as a reduction to current tax expenses. Business Owned Life Insurance ProAssurance owns life insurance contracts on certain management employees. The life insurance contracts are carried at their current cash surrender value. Changes in the cash surrender value are included in income in the current period as investment income. Death proceeds from the contracts are recorded when the proceeds become payable under the policy terms. Realized Gains and Losses Realized investment gains and losses are recognized on the first-in, first-out basis for GAAP purposes and on the specific identification basis for tax purposes. Other-than-temporary Impairments ProAssurance evaluates its available-for-sale investment securities, which at December 31, 2016 and 2015 consisted entirely of fixed maturity securities, on at least a quarterly basis for the purpose of determining whether declines in fair value below recorded cost basis represent OTTI . The Company considers an OTTI to have occurred: • if there is intent to sell the security • if it is more likely than not that the security will be required to be sold before full recovery of its amortized cost basis • if the entire amortized basis of the security is not expected to be recovered. The assessment of whether the amortized cost basis of a security, particularly an asset-backed debt security, is expected to be recovered requires management to make assumptions regarding various matters affecting future cash flows. The choice of assumptions is subjective and requires the use of judgment. Actual credit losses experienced in future periods may differ from management’s estimates of those credit losses. Methodologies used to estimate the present value of expected cash flows are: For non-structured fixed maturities (obligations of states, municipalities and political subdivisions, and corporate debt) the estimate of expected cash flows is determined by projecting a recovery value and a recovery time frame and assessing whether further principal and interest will be received. ProAssurance considers various factors in projecting recovery values and recovery time frames, including the following: • third-party research and credit rating reports; • the current credit standing of the issuer, including credit rating downgrades, whether before or after the balance sheet date; • the extent to which the decline in fair value is attributable to credit risk specifically associated with the security or its issuer; • internal assessments and the assessments of external portfolio managers regarding specific circumstances surrounding an investment, which indicate the investment is more or less likely to recover its amortized cost than other investments with a similar structure; • for asset-backed securities, the origination date of the underlying loans, the remaining average life, the probability that credit performance of the underlying loans will deteriorate in the future, and our assessment of the quality of the collateral underlying the loan; • failure of the issuer of the security to make scheduled interest or principal payments; • any changes to the rating of the security by a rating agency; and • recoveries or additional declines in fair value subsequent to the balance sheet date. For structured securities (primarily asset-backed securities), ProAssurance estimates the present value of the security’s cash flows using the effective yield of the security at the date of acquisition (or the most recent implied rate used to accrete the security if the implied rate has changed as a result of a previous impairment or changes in expected cash flows). ProAssurance considers the most recently available six month averages of the levels of delinquencies, defaults, severities, and prepayments for the collateral (loans) underlying the securitization or, if historical data is not available, sector based assumptions, to estimate expected future cash flows of these securities. Exclusive of securities where there is an intent to sell or where it is not more likely than not that the security will be required to be sold before recovery of its amortized cost basis, OTTI for debt securities is separated into a credit component and a non-credit component. The credit component of an OTTI is the difference between the security’s amortized cost basis and the present value of its expected future cash flows, while the non-credit component is the remaining difference between the security’s fair value and the present value of expected future cash flows. The credit component of the OTTI is recognized in earnings while the non-credit component is recognized in OCI . Investments in tax credit partnerships are evaluated for OTTI by considering both qualitative and quantitative factors which include: whether the current expected cash flows from the investment, primarily tax benefits, are less than those expected at the time the investment was acquired and ProAssurance's ability and intent to hold the investment until the recovery of its carrying value. Investments in LP s/ LLC s which are not accounted for under the equity method are evaluated for impairment by comparing ProAssurance’s carrying value to net asset value of ProAssurance’s interest as reported by the LP / LLC . Additionally, management considers the performance of the LP / LLC relative to the market and its stated objectives, cash flows expected from the interest and the audited financial statements of the LP / LLC , if available. ProAssurance recognizes OTTI , exclusive of non-credit OTTI , in earnings as a part of net realized investment gains (losses). In subsequent periods, any measurement of gain, loss or impairment is based on the revised amortized basis of the security. Non-credit OTTI on debt securities and declines in fair value of available-for-sale securities not considered to be other-than-temporary are recognized in OCI . Asset-backed debt securities that have been impaired due to credit or are below investment grade quality are accounted for under the effective yield method. Under the effective yield method estimates of cash flows expected over the life of asset-backed securities are then used to recognize income on the investment balance for subsequent accounting periods. |
Foreign Currency | Foreign Currency The functional currency of all ProAssurance foreign subsidiaries is the U.S. dollar. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of the Consolidated Balance Sheets and Consolidated Statements of Cash Flows, ProAssurance considers all demand deposits and overnight investments to be cash equivalents. |
Restricted Cash | Restricted Cash Restricted cash represents cash balances which are not available for immediate or general use. Restricted cash activity in 2014 related entirely to a collateral deposit which supported our Lloyd's Syndicate segment. |
Deferred Policy Acquisition Costs; Ceding Commission Income | Deferred Policy Acquisition Costs; Ceding Commission Income Costs that vary with and are directly related to the successful production of new and renewal premiums (primarily premium taxes, commissions and underwriting salaries) are deferred to the extent they are recoverable against unearned premiums and are amortized as related premiums are earned. Unearned ceding commission income is reported as an offset to DPAC . Ceding commission earned is reported as an offset to DPAC amortization. |
Income Taxes/Deferred Taxes | Income Taxes/Deferred Taxes ProAssurance files a consolidated federal income tax return. Tax-related interest and penalties are recognized as components of tax expense. ProAssurance evaluates tax positions taken on tax returns and recognizes positions in the financial statements when it is more likely than not that the position will be sustained upon resolution with a taxing authority. If recognized, the benefit is measured as the largest amount of benefit that has a greater than fifty percent probability of being realized. Uncertain tax positions are reviewed each period by considering changes in facts and circumstances, such as changes in tax law, interactions with taxing authorities and developments in case law, and adjustments would be made if considered necessary. Adjustments to unrecognized tax benefits may affect income tax expense and the settlement of uncertain tax positions may require the use of cash. Other than differences related to timing, no significant adjustments were considered necessary during the years ended December 31, 2016 or 2015 . During 2014 , a previously held tax position of $4.8 million was reversed due to the favorable resolution of an IRS exam. Deferred federal income taxes arise from the recognition of temporary differences between the basis of assets and liabilities determined for financial reporting purposes and the basis determined for income tax purposes. ProAssurance’s temporary differences principally relate to loss reserves, unearned premium, DPAC , unrealized investment gains (losses), and basis differentials in fixed assets and investments. Deferred tax assets and liabilities are measured using the enacted tax rates expected to be in effect when such benefits are realized. ProAssurance reviews its deferred tax assets quarterly for impairment. If management determines that it is more likely than not that some or all of a deferred tax asset will not be realized, a valuation allowance is recorded to reduce the carrying value of the asset. In assessing the need for a valuation allowance, management is required to make certain judgments and assumptions about the future operations of ProAssurance based on historical experience and information as of the measurement date regarding reversal of existing temporary differences, carryback capacity, future taxable income, including its capital and operating characteristics, and tax planning strategies. Changes in tax laws and rates could also affect recorded deferred tax assets and liabilities in the future. Management is not aware of any such changes that would have a material effect on the Company’s results of operations, cash flows or financial position. |
Real Estate | Real Estate Real Estate balances are reported at cost or, for properties acquired in business combinations, estimated fair value on the date of acquisition, less accumulated depreciation. Real estate principally consists of properties in use as corporate offices. Depreciation is computed over the estimated useful lives of the related property using the straight-line method. Excess office capacity is leased or made available for lease; rental income is included in Other income and real estate expenses are included in Underwriting, policy acquisition and operating expenses. |
Intangible Assets | Intangible Assets Intangible assets with definite lives, primarily consist of agency and policyholder relationships, are amortized over the estimated useful life of the asset; those with indefinite lives, primarily state licenses, are not amortized. All intangible assets are evaluated for impairment on an annual basis. |
Goodwill | Goodwill Goodwill is recognized in conjunction with acquisitions as the excess of the purchase consideration for the acquisition over the fair value of identifiable assets acquired and liabilities assumed. The fair value of identifiable assets and liabilities, and thus goodwill, is subject to redetermination within a measurement period of up to one year following completion of an acquisition. ProAssurance evaluates the carrying value of goodwill at the reporting unit level annually as of October 1 and whenever events or changes in circumstances indicate the carrying amount of goodwill may not be recoverable. Goodwill is tested for impairment at the reporting unit level. For ProAssurance, reporting units are consistent with the reportable segments identified in Note 15 of the Notes to Consolidated Financial Statements. Of the four reporting units, two have goodwill - Specialty P&C and Workers' Compensation. As of the most recent valuation date on October 1, 2016 , ProAssurance performed a qualitative goodwill impairment assessment for the Specialty P&C segment and a quantitative goodwill impairment test for the Workers' Compensation segment. Both the qualitative and quantitative goodwill impairment assessments compared the estimated fair value of a reporting unit to its carrying value to determine if there is an impairment of goodwill. Estimating the fair value of a reporting unit is judgmental in nature and involves the use of significant estimates and assumptions by management. The estimates and assumptions included revenue growth rates and operating margins used to calculate projected future cash flows, risk adjusted discount rates, future economic and market conditions and the determination of appropriate comparable publicly traded companies. In addition, management made certain judgments and assumptions in allocating shared assets and liabilities to individual reporting units to determine the carrying amount of each reporting unit. The Specialty P&C segment has historically had a significant excess of fair value over book value and based on current operations is expected to continue to do so; therefore, the Company's annual impairment test for that segment was performed qualitatively. In applying the qualitative approach, management considered macroeconomic factors, such as industry and market conditions, as well as reporting unit specific events, actual financial performance versus expectations and management’s future business expectations. For the Workers' Compensation segment, ProAssurance's annual impairment test was performed using a quantitative approach. The first step of the quantitative approach involved determining whether the estimated fair value of the reporting unit exceeded its carrying amount. In performing this step, ProAssurance estimated the fair value of the reporting unit using an equal weighting of fair values derived from general accepted valuation techniques - the income approach and the market approach. Under the income approach, management estimated the fair value of the reporting unit based on the present value of estimated future cash flows. Cash flow projections were based on management's estimates of revenue growth rates and operating margins, taking into consideration industry and market conditions. The discount rate used was based on the weighted average cost of capital adjusted for relevant risks associated with business specific characteristics and the uncertainty related to the reporting unit's ability to meet projected cash flows. Under the market approach, management estimated the fair value based on market multiples of revenue and earnings derived from comparable publicly traded companies with operating and investment characteristics similar to the reporting unit. Management weighed the fair values derived from the market approach depending on the level of comparability of these publicly traded companies to the reporting unit. If the fair value of a reporting unit exceeded the carrying amount of the net assets assigned to that reporting unit, goodwill would not be impaired and no further testing would be required. Upon completion of step one of the assessment, the Company determined that goodwill was not impaired for the Workers' Compensation segment; and therefore, the second step of the quantitative assessment was not deemed necessary. If the fair value of the reporting unit was less than its carrying amount, the second step of the goodwill impairment test would have been performed to measure the amount of impairment loss, if any. At the valuation date, management concluded that the fair values of both the Specialty P&C and Workers’ Compensation reporting units exceeded their respective carrying values. No goodwill impairment was recorded in 2016 or 2015 . |
Treasury Shares | Treasury Shares Treasury shares are reported at cost, and are reflected on the Consolidated Balance Sheets as an unallocated reduction of total equity. |
Share-Based Payments | Share-Based Payments Compensation cost for share-based payments is measured based on the grant-date fair value of the award, recognized over the period in which the employee is required to provide service in exchange for the award. Excess tax benefits (tax deductions realized in excess of the compensation costs recognized for the exercise of the awards, multiplied by the incremental tax rate) are reported as financing cash inflows. |
Subsequent Events | Subsequent Events ProAssurance evaluates events that occurred subsequent to December 31, 2016 , for recognition or disclosure in its Consolidated Financial Statements. |
Accounting Changes Adopted and Accounting Changes Not Yet Adopted | Accounting Changes Adopted Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern Effective for fiscal years ending after December 15, 2016 and interim periods beginning after December 15, 2016, the FASB issued guidance that establishes principles and definitions related to management's evaluation of whether there is substantial doubt about the organization's ability to continue as a going concern. For each interim and annual reporting period, the new guidance requires management to evaluate the organization's ability to meet its obligations as they are due within one year of the date the financial statements are issued and requires disclosure when there is substantial doubt regarding the organization's ability to continue as a going concern. ProAssurance adopted the guidance as of December 31, 2016. Adoption of the guidance had no material effect on ProAssurance’s results of operations or financial position. Simplifying the Accounting for Measurement-Period Adjustments Effective for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years, the FASB issued guidance that requires an acquirer to recognize adjustments to estimated amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. An acquirer must also record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the estimated amounts, calculated as if the accounting had been completed at the acquisition date. The amendments also require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the estimated amounts had been recognized as of the acquisition date. ProAssurance adopted the guidance as of January 1, 2016. Adoption of the guidance had no material effect on ProAssurance’s results of operations or financial position. Disclosures about Short-Duration Contracts Effective for fiscal years beginning after December 15, 2015 and interim periods within fiscal years beginning after December 15, 2016, the FASB issued guidance that requires insurance entities that issue short-duration contracts to provide detailed disclosures relative to the reserve for losses and loss adjustment expenses in annual reporting periods and a roll-forward of the reserve for losses and loss adjustment expenses in interim reporting periods. The guidance also requires disclosures regarding significant changes in the methodologies and assumptions used to calculate the reserve for losses and loss adjustment expenses, including reasons for and the effects of such changes. ProAssurance adopted the guidance as of January 1, 2016. Adoption of the guidance had no material effect on ProAssurance’s results of operations or financial position as it affected disclosure only. Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement Effective for fiscal years beginning after December 15, 2015, the FASB issued additional guidance regarding accounting for cloud computing arrangements. Under the new guidance, the software license elements of cloud computing arrangements are to be accounted for in a manner that is consistent with the acquisition of other software licenses. Cloud computing arrangements that do not include a software license are to be accounted for as a service contract, following existing guidance for service contracts. ProAssurance adopted the guidance on a prospective basis as of January 1, 2016. Adoption of the guidance had no material effect on ProAssurance’s results of operations or financial position. Simplifying the Presentation of Debt Issuance Costs Effective for fiscal years beginning after December 15, 2015, the FASB issued guidance related to the presentation of debt issuance costs. The new guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. Related guidance issued by the SEC permits issuance costs associated with line-of-credit arrangements to be presented as an asset and subsequently amortized proportionally over the term of the arrangement. ProAssurance adopted the guidance as of January 1, 2016. Adoption of the guidance had no material effect on ProAssurance’s results of operations or financial position. Amendments to the Consolidation Analysis Effective for fiscal years beginning after December 15, 2015, the FASB issued additional guidance regarding the consolidation of legal entities such as limited partnerships, limited liability corporations, and securitization structures (collateralized debt obligations, collateralized loan obligations, and mortgage-backed security transactions). The new standard modifies the evaluation of whether or not entities are VIE s and the consolidation analysis to be performed by entities involved with VIE s, particularly VIE 's for which there are fee arrangements and related party relationships. ProAssurance retrospectively adopted the guidance as of January 1, 2016. Adoption of the guidance had no material effect on ProAssurance’s results of operations or financial position as it affected disclosure only. Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period Effective for fiscal years beginning after December 15, 2015, the FASB issued guidance for share-based payments in which the terms of the award provide that a performance target can be achieved after completion of the requisite service period. The new guidance provides that compensation cost for such awards is to be recognized in the period in which it becomes probable that the performance target will be achieved and is to represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. ProAssurance adopted the guidance as of January 1, 2016. Adoption of the guidance had no effect on ProAssurance’s results of operations or financial position as ProAssurance has no awards with performance targets extending beyond the requisite service period. Accounting Changes Not Yet Adopted Improvements to Employee Share-Based Payment Accounting Effective for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years, the FASB issued guidance that simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of cash flows, and the classification of awards as either equity or liabilities. Under the new guidance, the difference between the deduction for tax purposes and the compensation cost recognized for financial reporting purposes is to be recognized as income tax expense in the current period and included with other income tax cash flows as an operating activity. Also the threshold for equity classification has been revised to permit withholdings up to the maximum statutory tax rates in the applicable jurisdictions. ProAssurance plans to adopt the guidance beginning January 1, 2017. Adoption is not expected to have a material effect on ProAssurance’s results of operations or financial position. Interests Held Through Related Parties that are Under Common Control Effective for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years, the FASB issued additional guidance regarding consolidation of legal entities such as limited partnerships, limited liability corporations, and securitization structures (collateralized debt obligations, collateralized loan obligations, and mortgage-backed security transactions). The new guidance modifies the criteria used by a reporting entity when determining if it is a primary beneficiary of a VIE when there are entities under common control and the reporting entity has indirect interests in the VIE through related party relationships. ProAssurance plans to adopt the guidance beginning January 1, 2017. Adoption is not expected to have a material effect on ProAssurance’s results of operations or financial position. Simplifying the Transition to the Equity Method of Accounting Effective for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years, the FASB issued guidance that eliminates the requirement for retroactive restatement when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence. The new guidance provides that the cost of acquiring an additional interest in an investee is to be added to the current basis of an investor’s previously held interest and the equity method of accounting adopted as of the date the investment becomes qualified for equity method accounting with no retroactive adjustment of the investment. If an available-for-sale equity security qualifies for the equity method of accounting the unrealized holding gain or loss in accumulated other comprehensive income is to be recognized through earnings at the date the investment becomes qualified for use of the equity method. ProAssurance plans to adopt the guidance beginning January 1, 2017. Adoption of the guidance is not expected to have a material effect on ProAssurance’s results of operations or financial position. Clarifying the Definition of a Business Effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years, the FASB issued guidance which provides clarification of the definition of a business, affecting areas such as acquisitions, disposals, goodwill and consolidation. The new guidance intends to assist entities with determining whether a transaction should be accounted for as an acquisition or disposal of assets or a business. ProAssurance plans to adopt the guidance beginning January 1, 2018. Adoption is not expected to have a material effect on ProAssurance’s results of operations or financial position. Restricted Cash Effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years, the FASB issued guidance related to the classification of restricted cash presented in the statement of cash flows with the objective of reducing diversity in practice. Under the new guidance, entities are required to include restricted cash and restricted cash equivalents with cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts as presented on the statement of cash flows. ProAssurance plans to adopt the guidance beginning January 1, 2018. Adoption is not expected to have a material effect on ProAssurance’s results of operations or financial position as it affects disclosure only. Intra-Entity Transfers of Assets Other than Inventory Effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years, the FASB issued guidance which reduces the complexity in accounting standards related to the income tax consequences of intra-entity transfers of assets other than inventory. Under the new guidance, entities are required to recognize income tax consequences of an intra-entity transfer of assets other than inventory when the transfer occurs instead of delaying recognition until the asset has been sold to an outside party. ProAssurance is in the process of evaluating the effect the new guidance would have on its results of operations and financial position and plans to adopt the guidance beginning January 1, 2018. Adoption of the guidance is not expected to have a material effect on ProAssurance’s results of operations or financial position. Classification of Certain Cash Receipts and Cash Payments Effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, the FASB issued guidance related to the classification of certain cash receipts and cash payments presented in the statement of cash flows with the objective of reducing diversity in practice. ProAssurance plans to adopt the guidance beginning January 1, 2018. Adoption is not expected to have a material effect on ProAssurance’s results of operations or financial position as it affects disclosure only. Revenue from Contracts with Customers Effective for fiscal years beginning after December 15, 2017, the FASB issued guidance related to revenue from contracts with customers. The core principle of the new guidance is that revenue is recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ProAssurance plans to adopt the guidance beginning January 1, 2018. As the majority of ProAssurance's revenues come from insurance contracts which fall under the scope of other FASB standards, adoption of the guidance is not expected to have a material effect on ProAssurance’s results of operations or financial position. Recognition and Measurement of Financial Assets and Financial Liabilities Effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years, the FASB issued guidance that requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. The new guidance also specifies that an entity use the exit price notion when measuring the fair value of financial instruments for disclosure purposes and present financial assets and liabilities by measurement category and form of financial asset. Other provisions of the new guidance include: revised disclosure requirements related to the presentation in comprehensive income of changes in the fair value of liabilities; elimination, for public companies, of disclosure requirements relative to the method(s) and significant assumptions underlying fair values disclosed for financial instruments measured at amortized cost; and simplified impairment assessments for equity investments without readily determinable fair values. ProAssurance plans to adopt the guidance beginning January 1, 2018. Adoption of the guidance is not expected to have a material effect on ProAssurance’s results of operations or financial position. Leases Effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, the FASB issued guidance that requires a lessee to recognize for all leases (with the exception of short-term leases) a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis, and a right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. ProAssurance plans to adopt the guidance beginning January 1, 2019. Adoption of the guidance is not expected to have a material effect on ProAssurance’s results of operations or financial position as ProAssurance does not have any leases it believes to be material. Simplifying the Test for Goodwill Impairment Effective for the fiscal years beginning after December 15, 2019 and interim periods within those fiscal years, the FASB issued guidance that simplifies the requirements to test goodwill for impairment for business entities that have goodwill reported in their financial statements. The guidance eliminates the second step of the impairment test which measures a goodwill impairment loss by comparing the implied fair value of a reporting unit's goodwill with the carrying amount. In addition, the guidance also eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment. ProAssurance plans to adopt the guidance beginning January 1, 2020. Adoption is not expected to have a material effect on ProAssurance’s results of operations or financial position. Improvements to Financial Instruments - Credit Losses Effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years, the FASB issued guidance that replaces the incurred loss impairment methodology, which delays recognition of credit losses until a probable loss has been incurred, with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. Under the new guidance, credit losses are required to be recorded through an allowance for credit losses account and the income statement reflects the measurement for newly recognized financial assets, as well as increases or decreases of expected credit losses that have taken place during the period. ProAssurance is in the process of evaluating the effect the new guidance would have on its results of operations and financial position and plans to adopt the guidance beginning January 1, 2020. Adoption of the guidance is not expected to have a material effect on ProAssurance’s results of operations or financial position. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of non-amortizable intangible assets | The following table provides additional information regarding ProAssurance's intangible assets. Gross Carrying Value Accumulated Amortization Amortization Expense December 31 December 31 Year Ended December 31 (In millions) 2016 2015 2016 2015 2016 2015 2014 Intangible Assets Non-amortizable $ 25.8 $ 25.8 Amortizable 93.6 94.0 $ 35.0 $ 27.3 $ 8.1 $ 8.3 $ 10.3 Total Intangible Assets $ 119.4 $ 119.8 |
Schedule of amortizable intangible assets | The following table provides additional information regarding ProAssurance's intangible assets. Gross Carrying Value Accumulated Amortization Amortization Expense December 31 December 31 Year Ended December 31 (In millions) 2016 2015 2016 2015 2016 2015 2014 Intangible Assets Non-amortizable $ 25.8 $ 25.8 Amortizable 93.6 94.0 $ 35.0 $ 27.3 $ 8.1 $ 8.3 $ 10.3 Total Intangible Assets $ 119.4 $ 119.8 |
Other liabilities | Other liabilities at December 31, 2016 and 2015 consisted of the following: (In millions) 2016 2015 SPC dividends payable $ 34.3 $ 16.7 Liability for unpaid dividends 265.7 69.4 Remaining other liabilities 122.3 116.2 Total Other liabilities $ 422.3 $ 202.3 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Assets and liabilities measured at fair value | Fair values of assets measured at fair value on a recurring basis as of December 31, 2016 and December 31, 2015 are shown in the following tables. Where applicable, the tables also indicate the fair value hierarchy of the valuation techniques utilized to determine those fair values. For some assets, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. When this is the case, the asset is categorized based on the level of the most significant input to the fair value measurement. Assessments of the significance of a particular input to the fair value measurement require judgment and consideration of factors specific to the assets being valued. December 31, 2016 Fair Value Measurements Using Total (In thousands) Level 1 Level 2 Level 3 Fair Value Assets: Fixed maturities, available for sale U.S. Treasury obligations $ — $ 146,539 $ — $ 146,539 U.S. Government-sponsored enterprise obligations — 30,235 — 30,235 State and municipal bonds — 800,463 — 800,463 Corporate debt, multiple observable inputs 2,339 1,261,842 — 1,264,181 Corporate debt, limited observable inputs — — 14,810 14,810 Residential mortgage-backed securities — 217,906 — 217,906 Agency commercial mortgage-backed securities — 12,783 — 12,783 Other commercial mortgage-backed securities — 19,611 — 19,611 Other asset-backed securities — 103,871 3,007 106,878 Equity securities Financial 81,749 — — 81,749 Utilities/Energy 52,869 — — 52,869 Consumer oriented 61,284 — — 61,284 Industrial 54,265 — — 54,265 Bond funds 79,843 10,159 — 90,002 All other 27,181 19,924 — 47,105 Short-term investments 437,580 4,504 — 442,084 Other investments 1,956 29,542 3 31,501 Total assets categorized within the fair value hierarchy $ 799,066 $ 2,657,379 $ 17,820 3,474,265 LP/LLC interests carried at NAV which approximates fair value. These interests, reported as a part of Investment in unconsolidated subsidiaries, are not categorized within the fair value hierarchy. 204,719 Total assets at fair value $ 3,678,984 December 31, 2015 Fair Value Measurements Using Total (In thousands) Level 1 Level 2 Level 3 Fair Value Assets: Fixed maturities, available for sale U.S. Treasury obligations $ — $ 123,892 $ — $ 123,892 U.S. Government-sponsored enterprise obligations — 26,334 — 26,334 State and municipal bonds — 940,635 — 940,635 Corporate debt, multiple observable inputs 2,362 1,274,824 — 1,277,186 Corporate debt, limited observable inputs — — 14,500 14,500 Residential mortgage-backed securities — 238,387 — 238,387 Agency commercial mortgage-backed securities — 10,999 — 10,999 Other commercial mortgage-backed securities — 30,134 — 30,134 Other asset-backed securities — 97,463 757 98,220 Equity securities Financial 67,764 — — 67,764 Utilities/Energy 41,050 — — 41,050 Consumer oriented 56,470 — — 56,470 Industrial 48,305 — — 48,305 Bond funds 76,316 — — 76,316 All other 18,239 14,209 — 32,448 Short-term investments 86,271 32,965 — 119,236 Other investments 3,478 27,133 — 30,611 Total assets categorized within the fair value hierarchy $ 400,255 $ 2,816,975 $ 15,257 3,232,487 LP/LLC interests carried at NAV which approximates fair value. These interests, reported as a part of Investment in unconsolidated subsidiaries, are not categorized within the fair value hierarchy. 162,624 Total assets at fair value $ 3,395,111 |
Summary of quantitative information about Level 3 fair value measurements | Quantitative Information Regarding Level 3 Valuations Fair Value at (In thousands) December 31, 2016 December 31, 2015 Valuation Technique Unobservable Input Range Assets: Corporate debt with limited observable inputs $14,810 $14,500 Market Comparable Comparability Adjustment 0% - 5% (2.5%) Discounted Cash Flows Comparability Adjustment 0% - 5% (2.5%) Other asset-backed securities $3,007 $757 Market Comparable Comparability Adjustment 0% - 5% (2.5%) Discounted Cash Flows Comparability Adjustment 0% - 5% (2.5%) Other investments $3 $— Discounted Cash Flows Comparability Adjustment 0% - 10% (5%) |
Summary of changes in the fair value of assets measured at fair value | The following tables (the Level 3 Tables) present summary information regarding changes in the fair value of assets measured at fair value using Level 3 inputs. December 31, 2016 Level 3 Fair Value Measurements – Assets (In thousands) State and Municipal Bonds Corporate Debt Asset-backed Securities All other investments Total Balance December 31, 2015 $ — $ 14,500 $ 757 $ — $ 15,257 Total gains (losses) realized and unrealized: Included in earnings, as a part of: Net investment income — (93 ) — (9 ) (102 ) Equity in earnings of unconsolidated subsidiaries — — — — — Net realized investment gains (losses) (490 ) (75 ) — — (565 ) Included in other comprehensive income — 531 8 47 586 Purchases — 8,900 6,500 1,753 17,153 Sales (410 ) (3,837 ) (1,452 ) (1,550 ) (7,249 ) Transfers in 900 — 1,000 918 2,818 Transfers out — (5,116 ) (3,806 ) (1,156 ) (10,078 ) Balance December 31, 2016 $ — $ 14,810 $ 3,007 $ 3 $ 17,820 Change in unrealized gains (losses) included in earnings for the above period for Level 3 assets held at period-end $ — $ — $ — $ — $ — December 31, 2015 Level 3 Fair Value Measurements – Assets (In thousands) State and Municipal Bonds Corporate Debt Asset-backed Securities All other investments Total Balance December 31, 2014 $ 5,025 $ 13,081 $ 4,769 $ — $ 22,875 Total gains (losses) realized and unrealized: Included in earnings, as a part of: Net investment income — 18 — — 18 Equity in earnings of unconsolidated subsidiaries — — — (83 ) (83 ) Net realized investment gains (losses) — (363 ) (11 ) (156 ) (530 ) Included in other comprehensive income (459 ) 73 (7 ) — (393 ) Purchases — 1,996 1,500 1,700 5,196 Sales — (1,896 ) (4,000 ) — (5,896 ) Transfers in — 6,640 — — 6,640 Transfers out (4,566 ) (5,049 ) (1,494 ) (1,461 ) (12,570 ) Balance December 31, 2015 $ — $ 14,500 $ 757 $ — $ 15,257 Change in unrealized gains (losses) included in earnings for the above period for Level 3 assets held at period-end $ — $ — $ — $ — $ — |
Investments in limited liability companies and limited partnerships | Investments in unconsolidated subsidiaries at both December 31, 2016 and December 31, 2015 included interests in investment fund LP s/ LLC s that measure fund assets at fair value on a recurring basis and that provide a NAV for the interest. The carrying value of these interests is based on the NAV provided and was considered to approximate the fair value of the interests. In accordance with GAAP , the fair value of these investments was not classified within the fair value hierarchy. Additional information regarding these investments is as follows: Unfunded Fair Value (In thousands) December 31, December 31, December 31, Investments in LPs/LLCs: Private debt funds (1) $ 7,958 $ 55,637 $ 50,268 Long equity fund (2) None 6,268 6,407 Long/short equity funds (3) None 28,926 28,030 Non-public equity funds (4) $ 40,503 89,691 65,722 Multi-strategy fund of funds (5) None 8,448 8,252 Structured credit fund (6) None 4,273 3,945 Long/short commodities fund (7) None 11,476 — $ 204,719 $ 162,624 (1) Comprised of interests in two unrelated LP funds that are structured to provide interest distributions primarily through diversified portfolios of private debt instruments. One LP allows redemption by special consent; the other does not permit redemption. Income and capital are to be periodically distributed at the discretion of the LP s over an anticipated time frame that spans from 3 to 8 years. (2) The fund is a LP that holds long equities of public international companies. Redemptions are allowed at the end of any calendar month with a prior notice requirement of 15 days and are paid within 10 days of the end of the calendar month of the redemption request. (3) Comprised of interests in multiple unrelated LP funds. The funds hold primarily long and short North American equities and target absolute returns using strategies designed to take advantage of market opportunities. The funds generally permit quarterly or semi-annual capital redemptions subject to notice requirements of 30 to 90 days. For some funds, redemptions above specified thresholds (lowest threshold is 90% ) may be only partially payable until after a fund audit is completed and are then payable within 30 days . (4) Comprised of interests in multiple unrelated LP funds, each structured to provide capital appreciation through diversified investments in private equity, which can include investments in buyout, venture capital, mezzanine debt, distressed debt and other private equity-oriented LP s. Two of the LP s allow redemption by terms set forth in the LP agreements; the others do not permit redemption. Income and capital are to be periodically distributed at the discretion of the LP over time frames that are anticipated to span up to 9 years. (5) This fund is a LLC structured to build and manage low volatility, multi-manager portfolios that have little or no correlation to the broader fixed income and equity security markets. Redemptions are not permitted but offers to repurchase units of the LLC may be extended periodically. (6) This fund is a LP seeking to obtain superior risk-adjusted absolute returns by acquiring and actively managing a diversified portfolio of debt securities, including bonds, loans and other asset-backed instruments. Redemptions are allowed at any quarter-end with a prior notice requirement of 90 days . (7) This fund is a LLC invested across a broad range of commodities and focuses primarily on market neutral, relative value strategies, seeking to generate absolute returns with low correlation to broad commodity, equity and fixed income markets. Following an initial 1 year lock-up period, redemptions are allowed with a prior notice requirement of 30 days and are payable within 30 days . |
Financial instruments not measured at fair value | The following table provides the estimated fair value of our financial instruments that, in accordance with GAAP for the type of investment, are measured using a methodology other than fair value. All fair values provided fall within the Level 3 fair value category. December 31, 2016 December 31, 2015 (In thousands) Carrying Fair Carrying Fair Financial assets: BOLI $ 60,134 $ 60,134 $ 57,213 $ 57,213 Other investments 50,391 58,757 48,522 51,646 Other assets 29,111 28,960 24,215 24,193 Financial liabilities: Senior notes due 2023 $ 250,000 $ 270,898 $ 250,000 $ 261,308 Revolving credit agreement 200,000 200,000 100,000 100,000 Other liabilities 17,033 17,011 14,897 14,893 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized cost and estimated fair value of available-for-sale fixed maturities and equity securities | Available-for-sale securities at December 31, 2016 and December 31, 2015 included the following: December 31, 2016 (In thousands) Amortized Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Fixed maturities U.S. Treasury obligations $ 146,186 $ 1,264 $ 911 $ 146,539 U.S. Government-sponsored enterprise obligations 30,038 388 191 30,235 State and municipal bonds 790,154 17,261 6,952 800,463 Corporate debt 1,264,812 22,659 8,480 1,278,991 Residential mortgage-backed securities 216,285 3,667 2,046 217,906 Agency commercial mortgage-backed securities 12,837 89 143 12,783 Other commercial mortgage-backed securities 19,571 177 137 19,611 Other asset-backed securities 106,938 207 267 106,878 $ 2,586,821 $ 45,712 $ 19,127 $ 2,613,406 December 31, 2015 (In thousands) Amortized Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Fixed maturities U.S. Treasury obligations $ 122,855 $ 1,696 $ 659 $ 123,892 U.S. Government-sponsored enterprise obligations 25,456 927 49 26,334 State and municipal bonds 904,719 36,739 823 940,635 Corporate debt 1,296,128 24,720 29,162 1,291,686 Residential mortgage-backed securities 233,659 6,039 1,311 238,387 Agency commercial mortgage-backed securities 10,851 174 26 10,999 Other commercial mortgage-backed securities 29,983 354 203 30,134 Other asset-backed securities 98,412 54 246 98,220 $ 2,722,063 $ 70,703 $ 32,479 $ 2,760,287 |
Schedule of available for sale securities by contractual maturity | The recorded cost basis and estimated fair value of available-for-sale fixed maturities at December 31, 2016 , by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. (In thousands) Amortized Due in one Due after Due after Due after Total Fair Fixed maturities, available for sale U.S. Treasury obligations $ 146,186 $ 23,341 $ 104,168 $ 15,914 $ 3,116 $ 146,539 U.S. Government-sponsored enterprise obligations 30,038 13,462 4,813 10,240 1,720 30,235 State and municipal bonds 790,154 70,859 262,841 372,660 94,103 800,463 Corporate debt 1,264,812 124,877 743,566 385,596 24,952 1,278,991 Residential mortgage-backed securities 216,285 217,906 Agency commercial mortgage-backed securities 12,837 12,783 Other commercial mortgage-backed securities 19,571 19,611 Other asset-backed securities 106,938 106,878 $ 2,586,821 $ 2,613,406 |
Investments in unconsolidated subsidiaries | ProAssurance holds investments in unconsolidated subsidiaries, accounted for under the equity method. The investments include the following: December 31, 2016 Carrying Value (In thousands) Percentage December 31, December 31, Investment in LPs/LLCs: Qualified affordable housing tax credit partnerships See below $ 102,313 $ 121,550 Other tax credit partnerships See below 11,459 8,362 All other LPs/LLCs See below 227,134 181,996 $ 340,906 $ 311,908 |
Other Investments | Other investments at December 31, 2016 and December 31, 2015 were comprised as follows: (In thousands) December 31, December 31, Investments in LPs/LLCs, at cost $ 46,852 $ 44,958 Convertible securities, at fair value 31,501 30,611 Other, principally FHLB capital stock, at cost 3,539 3,564 $ 81,892 $ 79,133 |
Investments held in a loss position | The following tables provide summarized information with respect to investments held in an unrealized loss position at December 31, 2016 and December 31, 2015 , including the length of time the investment had been held in a continuous unrealized loss position. December 31, 2016 Total Less than 12 months 12 months or longer Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Value Loss Value Loss Value Loss Fixed maturities, available for sale U.S. Treasury obligations $ 79,833 $ 911 $ 79,833 $ 911 $ — $ — U.S. Government-sponsored enterprise obligations 11,746 191 11,746 191 — — State and municipal bonds 224,884 6,952 219,276 6,444 5,608 508 Corporate debt 469,632 8,480 424,721 5,662 44,911 2,818 Residential mortgage-backed securities 103,680 2,046 100,542 1,982 3,138 64 Agency commercial mortgage-backed securities 4,579 143 4,192 114 387 29 Other commercial mortgage-backed securities 9,822 137 9,179 134 643 3 Other asset-backed securities 44,343 267 39,079 256 5,264 11 $ 948,519 $ 19,127 $ 888,568 $ 15,694 $ 59,951 $ 3,433 December 31, 2015 Total Less than 12 months 12 months or longer Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Value Loss Value Loss Value Loss Fixed maturities, available for sale U.S. Treasury obligations $ 66,685 $ 658 $ 61,869 $ 591 $ 4,816 $ 67 U.S. Government-sponsored enterprise obligations 6,819 49 6,819 49 — — State and municipal bonds 46,193 823 36,822 703 9,371 120 Corporate debt 622,991 29,162 555,097 15,691 67,894 13,471 Residential mortgage-backed securities 87,567 1,311 78,961 1,095 8,606 216 Agency commercial mortgage-backed securities 409 26 — — 409 26 Other commercial mortgage-backed securities 15,960 203 12,635 170 3,325 33 Other asset-backed securities 79,637 247 74,150 237 5,487 10 $ 926,261 $ 32,479 $ 826,353 $ 18,536 $ 99,908 $ 13,943 |
Net investment income | Net investment income by investment category was as follows: Year Ended December 31 (In thousands) 2016 2015 2014 Fixed maturities $ 85,818 $ 97,348 $ 111,895 Equities 14,887 13,317 10,817 Short-term and Other investments 3,402 2,049 8,833 BOLI 2,008 2,053 2,006 Investment fees and expenses (6,103 ) (6,107 ) (7,994 ) Net investment income $ 100,012 $ 108,660 $ 125,557 |
Net realized investment gains (losses) | The following table provides detailed information regarding net realized investment gains (losses): Year Ended December 31 (In thousands) 2016 2015 2014 Total OTTI losses: State and municipal bonds $ (100 ) $ — $ (50 ) Corporate debt (7,604 ) (11,781 ) (1,425 ) Other investments (3,130 ) (8,136 ) — Portion of OTTI losses recognized in other comprehensive income before taxes: Corporate debt 1,068 4,572 268 Net impairment losses recognized in earnings (9,766 ) (15,345 ) (1,207 ) Gross realized gains, available-for-sale securities 12,451 11,936 5,627 Gross realized (losses), available-for-sale securities (7,038 ) (11,481 ) (1,103 ) Net realized gains (losses), trading securities 6,632 1,080 28,018 Net realized gains (losses), Other investments 1,115 464 326 Change in unrealized holding gains (losses), trading securities 30,557 (28,343 ) (18,883 ) Change in unrealized holding gains (losses), convertible securities, carried at fair value 899 (896 ) 1,876 Other 25 946 — Net realized investment gains (losses) $ 34,875 $ (41,639 ) $ 14,654 |
Cumulative credit losses recorded in earnings related to impaired debt securities for which a portion of the OTTI has been recorded in OCI | The following table presents a roll forward of cumulative credit losses recorded in earnings related to impaired debt securities for which a portion of the OTTI was recorded in OCI . (In thousands) 2016 2015 2014 Balance January 1 $ 5,751 $ 232 $ 83 Additional credit losses recognized during the period, related to securities for which: No OTTI has been previously recognized 2,398 3,648 149 OTTI has been previously recognized 2,154 2,645 — Reductions due to: Securities sold during the period (realized) (9,145 ) (774 ) — Balance December 31 $ 1,158 $ 5,751 $ 232 |
Information regarding sales and purchases of available-for-sale securities | Other information regarding sales and purchases of available-for-sale securities is as follows: Year Ended December 31 (In millions) 2016 2015 2014 Proceeds from sales (exclusive of maturities and paydowns) $ 361.8 $ 481.8 $ 244.9 Purchases $ 636.4 $ 580.6 $ 645.1 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Insurance [Abstract] | |
Summary of the effect of reinsurance on premiums written and earned | The effect of reinsurance on premiums written and earned was as follows: (In thousands) 2016 Premiums 2015 Premiums 2014 Premiums Written Earned Written Earned Written Earned Direct $ 794,377 $ 790,791 $ 780,982 $ 772,968 $ 761,043 $ 755,623 Assumed 40,637 37,805 31,236 22,691 18,566 12,987 Ceded (96,481 ) (95,315 ) (102,933 ) (101,510 ) (77,760 ) (68,879 ) Net premiums $ 738,533 $ 733,281 $ 709,285 $ 694,149 $ 701,849 $ 699,731 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Components of deferred tax assets and liabilities | Significant components of ProAssurance’s deferred tax assets and liabilities were as follows: Year Ended December 31 (In thousands) 2016 2015 Deferred tax assets Unpaid loss discount $ 39,746 $ 44,886 Unearned premium adjustment 22,847 22,889 Compensation related 20,190 18,130 Intangibles 1,001 1,435 Total deferred tax assets 83,784 87,340 Deferred tax liabilities Deferred acquisition costs 9,754 9,287 Unrealized gains on investments, net 9,797 13,933 Fixed assets 1,291 3,401 Basis differentials–investments 25,512 17,492 Intangibles 22,067 24,644 Other 5,107 3,486 Total deferred tax liabilities 73,528 72,243 Net deferred tax assets (liabilities) $ 10,256 $ 15,097 |
Reconciliation of unrecognized tax benefits | A reconciliation of the beginning and ending amounts of unrecognized tax benefits for 2016 , 2015 and 2014 , were as follows: (In thousands) 2016 2015 2014 Balance at January 1 $ 8,195 $ 577 $ 4,823 Increase for tax position acquired as result of a business combination — — 414 Increases for tax positions taken during the current year 361 7,618 163 (Decreases) for tax positions taken during the current year — — (4,823 ) (Decreases) relating to a lapse of the applicable statute of limitations (203 ) — — Balance at December 31 $ 8,353 $ 8,195 $ 577 |
Reconciliation of expected income tax expense to actual income tax expense | A reconciliation of “expected” income tax expense ( 35% of income before income taxes) to actual income tax expense for each of the years ended December 31, 2016 , 2015 and 2014 were as follows: (In thousands) 2016 2015 2014 Computed “expected” tax expense $ 61,670 $ 45,099 $ 91,702 Tax-exempt income (9,917 ) (12,913 ) (13,250 ) Tax credits (27,549 ) (22,407 ) (17,918 ) Non-U.S. Loss — 1,806 1,741 Other 916 1,073 3,165 Income tax expense $ 25,120 $ 12,658 $ 65,440 |
Reserve for Losses and Loss A35
Reserve for Losses and Loss Adjustment Expenses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Insurance [Abstract] | |
Summary of reserve for losses and loss adjustment expenses | Activity in the reserve for losses and loss adjustment expenses is summarized as follows: (In thousands) 2016 2015 2014 Balance, beginning of year $ 2,005,326 $ 2,058,266 $ 2,072,822 Less reinsurance recoverables on unpaid losses and loss adjustment expenses 249,350 237,966 247,518 Net balance, beginning of year 1,755,976 1,820,300 1,825,304 Net reserves acquired from acquisitions — — 139,549 Net losses: Current year 587,007 571,891 545,168 Favorable development of reserves established in prior years, net (143,778 ) (161,180 ) (182,084 ) Total 443,229 410,711 363,084 Paid related to: Current year (96,190 ) (84,186 ) (93,737 ) Prior years (383,062 ) (390,849 ) (413,900 ) Total paid (479,252 ) (475,035 ) (507,637 ) Net balance, end of year 1,719,953 1,755,976 1,820,300 Plus reinsurance recoverables on unpaid losses and loss adjustment expenses 273,475 249,350 237,966 Balance, end of year $ 1,993,428 $ 2,005,326 $ 2,058,266 |
Summary of short-duration insurance contracts claims development | Medical Technology Liability Claims-Made Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2016 ($ in thousands) Years Ended December 31, IBNR* Cumulative Number of Reported Claims 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Accident Year Unaudited 2007 $ 36,234 $ 42,660 $ 37,964 $ 33,599 $ 29,712 $ 27,348 $ 26,324 $ 24,211 $ 24,413 $ 24,194 644 649 2008 — 43,427 45,788 48,187 45,156 42,409 37,783 38,280 35,330 34,716 738 971 2009 — — 30,462 31,183 27,523 26,181 23,425 21,733 20,551 19,264 1,004 721 2010 — — — 26,077 27,063 25,175 23,307 19,315 17,439 16,047 1,440 510 2011 — — — — 17,249 20,930 19,166 15,836 13,794 12,487 1,599 534 2012 — — — — — 11,162 9,989 8,906 7,441 5,824 2,131 234 2013 — — — — — — 9,807 9,955 9,536 7,226 4,248 231 2014 — — — — — — — 9,989 10,306 9,012 3,904 287 2015 — — — — — — — — 9,376 8,757 5,948 158 2016 — — — — — — — — — 9,200 7,878 163 Total $ 146,727 * Includes expected development on reported claims Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (In thousands) Years Ended December 31, 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Accident Year Unaudited 2007 $ 123 $ 9,947 $ 19,302 $ 20,240 $ 22,368 $ 22,912 $ 23,329 $ 23,358 $ 23,542 $ 23,546 2008 — 4,325 14,772 26,901 26,620 32,653 34,588 34,567 34,567 34,567 2009 — — 116 5,071 7,742 14,675 14,933 15,097 15,184 15,186 2010 — — — 485 3,557 8,491 12,283 11,725 12,146 12,253 2011 — — — — 118 2,034 3,846 5,062 7,376 7,240 2012 — — — — — 568 1,520 2,805 3,247 3,366 2013 — — — — — — 102 1,029 1,967 2,599 2014 — — — — — — — 388 1,527 2,564 2015 — — — — — — — — 25 440 2016 — — — — — — — — — 53 Total 101,814 All outstanding liabilities before 2007, net of reinsurance 1,038 Liabilities for losses and loss adjustment expenses, net of reinsurance $ 45,951 Healthcare Professional Liability Claims-Made Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2016 ($ in thousands) Years Ended December 31, IBNR* Cumulative Number of Reported Claims 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Accident Year Unaudited 2007 $ 432,313 $ 423,950 $ 410,175 $ 375,908 $ 327,498 $ 281,491 $ 254,458 $ 244,809 $ 242,248 $ 237,925 $ 618 4,043 2008 — 402,293 397,571 391,214 345,855 298,849 269,462 259,272 247,123 240,472 1,692 3,730 2009 — — 379,259 370,642 345,714 320,368 284,511 265,478 246,146 230,849 4,774 3,825 2010 — — — 364,996 354,787 338,170 312,813 291,553 279,713 270,484 3,436 3,845 2011 — — — — 348,916 344,808 331,884 305,540 289,400 278,258 6,687 3,532 2012 — — — — — 341,289 324,418 319,613 306,956 291,075 2,137 3,706 2013 — — — — — — 315,346 304,209 296,550 287,140 3,870 3,809 2014 — — — — — — — 290,020 289,397 280,043 10,632 3,331 2015 — — — — — — — — 276,492 269,980 15,536 3,248 2016 — — — — — — — — — 271,765 125,767 2,982 Total $ 2,657,991 * Includes expected development on reported claims Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (In thousands) Years Ended December 31, 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Accident Year Unaudited 2007 $ 12,550 $ 67,928 $ 129,946 $ 169,646 $ 192,442 $ 206,341 $ 218,953 $ 226,875 $ 230,225 $ 231,966 2008 — 14,214 67,971 128,800 166,544 197,042 212,789 221,150 226,903 232,598 2009 — — 15,051 71,272 114,318 153,563 178,445 191,420 200,425 205,372 2010 — — — 15,464 69,551 137,712 180,432 209,777 221,693 236,171 2011 — — — — 14,417 71,208 133,004 177,089 198,112 214,502 2012 — — — — — 15,382 73,571 145,488 190,997 215,220 2013 — — — — — — 16,938 69,657 127,496 171,681 2014 — — — — — — — 16,764 59,485 116,791 2015 — — — — — — — — 9,172 55,731 2016 — — — — — — — — — 9,027 Total 1,689,059 All outstanding liabilities before 2007, net of reinsurance 18,260 Liabilities for losses and loss adjustment expenses, net of reinsurance $ 987,192 Healthcare Professional Liability Occurrence Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2016 ($ in thousands) Years Ended December 31, IBNR* Cumulative Number of Reported Claims 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Accident Year Unaudited 2007 $ 47,165 $ 50,748 $ 48,038 $ 45,980 $ 37,698 $ 34,937 $ 30,347 $ 30,877 $ 24,229 $ 23,079 $ 2,228 346 2008 — 42,258 45,006 47,019 43,676 35,458 29,492 28,887 26,126 23,473 2,464 283 2009 — — 34,450 35,366 36,802 37,437 34,099 32,675 28,731 26,340 3,383 244 2010 — — — 41,721 43,238 43,195 42,233 37,920 35,831 33,361 4,235 289 2011 — — — — 45,882 44,956 41,453 39,917 37,150 35,004 4,068 340 2012 — — — — — 45,703 46,513 44,848 40,692 34,774 9,006 391 2013 — — — — — — 32,746 36,602 35,624 34,393 5,348 346 2014 — — — — — — — 30,420 29,918 32,143 15,176 318 2015 — — — — — — — — 35,648 35,347 18,274 246 2016 — — — — — — — — — 29,609 27,151 121 Total $ 307,523 * Includes expected development on reported claims Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (In thousands) Years Ended December 31, 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Accident Year Unaudited 2007 $ 129 $ 2,098 $ 4,976 $ 7,997 $ 12,257 $ 14,265 $ 16,898 $ 18,286 $ 18,875 $ 19,141 2008 — 70 1,048 3,347 6,269 10,649 12,403 15,661 16,564 17,799 2009 — — 175 2,255 5,067 7,947 10,823 13,248 15,380 16,025 2010 — — — 285 1,881 5,647 9,120 15,147 21,837 22,804 2011 — — — — 291 2,803 8,059 16,544 19,197 21,416 2012 — — — — — 363 2,430 7,705 12,212 19,275 2013 — — — — — — 369 3,170 7,826 14,753 2014 — — — — — — — 394 2,260 7,460 2015 — — — — — — — — (350 ) 786 2016 — — — — — — — — — (182 ) Total 139,277 All outstanding liabilities before 2007, net of reinsurance 14,975 Liabilities for losses and loss adjustment expenses, net of reinsurance $ 183,221 Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2016 ($ in thousands) Years Ended December 31, IBNR* Cumulative Number of Reported Claims 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Accident Year Unaudited 2007 $ 47,772 $ 45,578 $ 48,591 $ 49,014 $ 48,878 $ 48,925 $ 49,925 $ 50,227 $ 50,773 $ 49,869 $ 327 13,552 2008 — 52,155 55,507 55,090 54,885 54,950 57,722 57,928 56,676 57,239 454 13,836 2009 — — 62,255 60,802 60,351 60,413 62,731 63,942 63,398 62,631 496 13,090 2010 — — — 75,699 74,196 73,647 72,742 72,278 72,504 71,684 775 15,960 2011 — — — — 84,074 84,762 90,769 91,491 90,993 91,149 903 18,776 2012 — — — — — 102,044 96,884 95,716 95,204 94,627 1,180 20,151 2013 — — — — — — 111,268 111,730 114,171 115,115 1,342 20,577 2014 — — — — — — — 120,443 121,128 121,206 8,096 21,175 2015 — — — — — — — — 135,960 132,408 33,567 22,122 2016 — — — — — — — — — 138,546 64,150 21,431 Total $ 934,474 * Includes expected development on reported claims Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (In thousands) Years Ended December 31, 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Accident Year Unaudited 2007 $ 14,042 $ 28,281 $ 39,648 $ 44,321 $ 47,607 $ 48,551 $ 48,744 $ 48,917 $ 49,364 $ 49,422 2008 — 15,246 35,879 45,998 51,256 54,050 55,697 56,305 56,582 56,727 2009 — — 19,575 42,122 52,428 57,971 60,445 61,150 61,951 62,052 2010 — — — 26,353 51,766 61,612 67,095 69,050 70,049 70,308 2011 — — — — 27,863 64,874 79,432 85,743 88,129 89,040 2012 — — — — — 34,574 70,179 82,953 88,350 91,291 2013 — — — — — — 38,125 82,320 100,522 107,019 2014 — — — — — — — 40,268 87,768 103,771 2015 — — — — — — — — 43,112 86,553 2016 — — — — — — — — — 39,199 Total 755,382 All outstanding liabilities before 2007, net of reinsurance 1,280 Liabilities for losses and loss adjustment expenses, net of reinsurance $ 180,372 Lloyd's Syndicate Casualty Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2016 ($ in thousands) Years Ended December 31, IBNR (1) Cumulative Number of Reported Claims (2) 2014 2015 2016 Accident Year Unaudited 2014 $ 6,533 $ 6,533 $ 6,034 $ 1,531 nm 2015 — 14,591 14,591 5,733 nm 2016 — — 19,535 14,211 nm Total $ 40,160 (1) Includes expected development on reported claims (2) The abbreviation "nm" indicates that the information is not meaningful Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (In thousands) Years Ended December 31, 2014 2015 2016 Accident Year Unaudited 2014 $ 20 $ 523 $ 4,230 2015 — 678 6,296 2016 — — 2,394 Total 12,920 All outstanding liabilities before 2014, net of reinsurance — Liabilities for losses and loss adjustment expenses, net of reinsurance $ 27,240 Lloyd's Syndicate Property Insurance Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2016 ($ in thousands) Years Ended December 31, IBNR* Cumulative Number of Reported Claims 2014 2015 2016 Accident Year Unaudited 2014 $ 1,291 $ 1,291 $ 1,291 $ 106 71 2015 — 6,787 6,787 377 398 2016 — — 10,591 758 823 Total $ 18,669 * Includes expected development on reported claims Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (In thousands) Years Ended December 31, 2014 2015 2016 Accident Year Unaudited 2014 $ 267 $ 1,234 $ 1,090 2015 — 2,859 5,355 2016 — — 6,186 Total 12,631 All outstanding liabilities before 2014, net of reinsurance — Liabilities for losses and loss adjustment expenses, net of reinsurance $ 6,038 Lloyd's Syndicate Property Reinsurance Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2016 ($ in thousands) Years Ended December 31, IBNR (1) Cumulative Number of Reported Claims (2) 2014 2015 2016 Accident Year Unaudited 2014 $ 779 $ 779 $ 779 $ (126 ) nm 2015 — 3,107 3,107 639 nm 2016 — — 4,467 2,788 nm Total $ 8,353 (1) Includes expected development on reported claims (2) The abbreviation "nm" indicates that the information is not meaningful Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (In thousands) Years Ended December 31, 2014 2015 2016 Accident Year Unaudited 2014 $ 79 $ 827 $ 902 2015 — 1,392 1,729 2016 — — 771 Total 3,402 All outstanding liabilities before 2014, net of reinsurance — Liabilities for losses and loss adjustment expenses, net of reinsurance $ 4,951 |
Schedule of historical claims duration | Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Unaudited Lloyd's Syndicate Casualty 24.7 % 49.4 % 16.7 % 6.0 % 2.0 % 0.4 % 0.4 % — % — % — % Lloyd's Syndicate Property Insurance 80.8 % 15.5 % 2.5 % 0.6 % 0.3 % 0.1 % 0.1 % — % — % — % Lloyd's Syndicate Property Reinsurance 78.6 % 16.4 % 2.8 % 1.6 % 0.4 % 0.2 % 0.1 % — % — % — % Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Unaudited Healthcare Professional Liability Claims-Made 5.2% 20.1% 22.8% 16.0% 10.0% 5.7% 4.5% 2.6% 1.9% 0.7% Healthcare Professional Liability Occurrence 0.5% 6.2% 13.0% 14.9% 15.7% 10.4% 9.1% 4.1% 3.9% 1.1% Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Unaudited Medical technology liability 3.4 % 19.7 % 22.4 % 12.7 % 7.4 % 2.0 % 0.7 % — % 0.4 % — % Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Unaudited Workers' compensation 31.7 % 36.1 % 16.1 % 7.6 % 4.0 % 1.7 % 0.8 % 0.3 % 0.6 % 0.1 % |
Reconciliation of claims development to liability | Below is a reconciliation of the claims development information to the Consolidated Balance Sheet: (In thousands) December 31, 2016 Net outstanding liabilities Healthcare professional liability claims-made $ 987,192 Healthcare professional liability occurrence 183,221 Medical technology liability claims-made 45,951 Workers' compensation 180,372 Lloyd's syndicate casualty 27,240 Lloyd's syndicate property insurance 6,038 Lloyd's syndicate property reinsurance 4,951 Other short-duration lines 106,499 Liabilities for losses and loss adjustment expenses, net of reinsurance 1,541,464 Reinsurance recoverable on unpaid losses Healthcare professional liability claims-made 132,460 Healthcare professional liability occurrence 22,576 Medical technology liability claims-made 44,627 Workers' compensation 52,111 Lloyd's syndicate casualty 172 Lloyd's syndicate property insurance 3,074 Lloyd's syndicate property reinsurance 2,094 Other short-duration lines 16,361 Total reinsurance recoverable on unpaid losses and loss adjustment expenses 273,475 Reserve for the future utilization of the DDR benefit 74,200 Unallocated loss adjustment expenses 111,628 Purchase accounting 4,653 Other (11,992 ) 178,489 Gross liability for losses and loss adjustment expenses $ 1,993,428 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease payments for operating leases | The following is a schedule of future minimum lease payments for operating leases that had initial or remaining non-cancelable lease terms in excess of one year as of December 31, 2016 . Operating Leases (In thousands) 2017 $ 5,027 2018 4,483 2019 4,049 2020 3,268 2021 3,054 Thereafter 9,127 Total minimum lease payments $ 29,008 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Outstanding long-term debt | ProAssurance’s outstanding debt consisted of the following: (In thousands) December 31, December 31, Senior notes due 2023, unsecured, interest at 5.3% annually $ 250,000 $ 250,000 Revolving Credit Agreement, outstanding borrowings are fully secured, see Note 4, and carried at a weighted average interest rate of 1.35%. The interest rate on the borrowings is set at the time the respective borrowing is initiated or renewed. The current borrowings can be repaid or renewed in the first quarter 2017. If renewed, the interest rate will be reset. 200,000 100,000 Total principal $ 450,000 $ 350,000 Less debt issuance costs 1,798 2,142 Debt less debt issuance costs $ 448,202 $ 347,858 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Common stock outstanding | The following is a summary of changes in common shares issued and outstanding during the years ended December 31, 2016 , 2015 and 2014 : (In thousands of shares) 2016 2015 2014 Issued and outstanding shares - January 1 53,101 56,534 61,197 Repurchase of shares, at cost of $2 million, $170 million and $222 million, respectively (44 ) (3,680 ) (4,909 ) Shares issued due to exercise of options and vesting of share-based compensation awards 108 150 154 Other shares issued for compensation and shares reissued to stock purchase plan* 86 97 92 Issued and outstanding shares - December 31 53,251 53,101 56,534 * Shares issued were valued at fair value (the market price of a ProAssurance common share on the date of issue). |
Dividends declared | ProAssurance declared cash dividends during 2016 , 2015 and 2014 as follows: Cash Dividends Declared, per Share 2016 2015 2014 First Quarter $ 0.31 $ 0.31 $ 0.30 Second Quarter $ 0.31 $ 0.31 $ 0.30 Third Quarter $ 0.31 $ 0.31 $ 0.30 Fourth Quarter* $ 5.00 $ 1.31 $ 2.96 * Includes special dividends of $4.69 , $1.00 and $2.65 per share for 2016 , 2015 and 2014 , respectively. |
Reclassification adjustments related to available-for-sale securities | Amounts reclassified from AOCI to Net income and the amounts of deferred tax expense (benefit) included in OCI were as follows: (In thousands) 2016 2015 2014 Reclassifications from AOCI to Net income: Realized investment gains (losses) $ 2,417 $ (4,475 ) $ 3,317 Non-credit impairment losses reclassified to earnings, due to sale of securities or reclassification as a credit loss (3,641 ) (2,279 ) — Unrecognized losses in defined benefit plan liabilities reclassified to earnings, due to the termination and settlement of the plan (1,500 ) — — Total amounts reclassified, before tax effect (2,724 ) (6,754 ) 3,317 Tax effect (at 35%) 953 2,364 (1,161 ) Net reclassification adjustments $ (1,771 ) $ (4,390 ) $ 2,156 Deferred tax expense (benefit) included in OCI $ (3,078 ) $ (18,370 ) $ (785 ) |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of compensation expense and related tax benefit recognized during each period, and compensation cost expense in future periods | The following table provides a summary of compensation expense and the total related tax benefit recognized during each period as well as compensation cost that will be charged to expense in future periods, by award type. Share-Based Unrecognized Compensation Cost Year Ended December 31 December 31, 2016 2016 2015 2014 Amount Remaining (In millions) (In millions) (Weighted average years) Restricted Share Units $ 3.7 $ 2.5 $ 1.7 $ 4.4 1.7 Performance Share Units 7.6 5.9 7.6 5.7 1.6 Purchase Match Units 1.2 0.8 0.8 2.0 2.2 Total share-based compensation expense $ 12.5 $ 9.2 $ 10.1 $ 12.1 Tax benefit recognized $ 4.4 $ 3.2 $ 3.5 |
Summary of activity related to management share awards | Activity for restricted share units during 2016 , 2015 and 2014 is summarized below. Grant date fair values are based on the market value of a ProAssurance common share on the date of grant less the estimated net present value of dividends during the vesting period. 2016 2015 2014 Units Weighted Units Weighted Units Weighted Beginning non-vested balance 178,468 $ 43.13 136,802 $ 42.03 138,770 $ 37.12 Granted 109,181 $ 45.59 91,943 $ 42.79 49,750 $ 42.95 Forfeited (5,954 ) $ 43.99 (1,342 ) $ 42.81 (2,044 ) $ 42.03 Vested and released (41,546 ) $ 44.04 (48,935 ) $ 39.45 (49,674 ) $ 29.22 Ending non-vested balance 240,149 $ 44.07 178,468 $ 43.13 136,802 $ 42.03 |
Summarized activity for performance share awards | The table reflects the base number of units; actual awards that vest depend upon the extent to which performance objectives are achieved. Grant date fair values are based on the market value of a ProAssurance common share on the date of grant less the estimated net present value of dividends during the vesting period. 2016 2015 2014 Base Units Weighted Base Units Weighted Base Units Weighted Beginning non-vested balance 390,350 $ 44.65 466,860 $ 41.96 486,680 $ 37.94 Granted 60,000 $ 45.59 106,490 $ 42.79 160,900 $ 42.95 Forfeited (5,162 ) $ 43.02 (2,322 ) $ 46.05 (14,221 ) $ 42.40 Vested and released (139,948 ) $ 44.05 (180,678 ) $ 39.58 (166,499 ) $ 31.12 Ending non-vested balance 305,240 $ 43.41 390,350 $ 44.65 466,860 $ 41.96 |
Market value of ProAssurance common share on the grant date fair value | Purchase match unit activity during 2016 , 2015 and 2014 is summarized below. Grant date fair values are based on the market value of a ProAssurance common share on the date of grant less the estimated net present value of dividends during the vesting period. 2016 2015 2014 Units Weighted Units Weighted Units Weighted Beginning non-vested balance 74,483 $ 42.80 72,101 $ 40.62 63,125 $ 38.51 Granted 23,903 $ 50.18 26,593 $ 46.09 29,069 $ 41.16 Forfeited (2,875 ) $ 43.77 (3,087 ) $ 41.03 (2,968 ) $ 40.21 Vested and released (22,896 ) $ 40.88 (21,124 ) $ 39.79 (17,125 ) $ 33.81 Ending non-vested balance 72,615 $ 45.77 74,483 $ 42.80 72,101 $ 40.62 |
Summary of fully-vested employee stock options outstanding | ProAssurance also had certain fully-vested employee stock options outstanding during 2016 , 2015 and 2014 , as summarized below. 2016 2015 2014 Options Weighted Options Weighted Options Weighted Outstanding, vested and exercisable, beginning of year 2,114 $ 25.02 4,456 $ 24.64 18,082 $ 23.00 Exercised (2,114 ) $ 25.02 (2,342 ) $ 24.13 (13,626 ) $ 22.47 Outstanding, vested and exercisable, end of year — $ — 2,114 $ 25.02 4,456 $ 24.64 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Financial results by segment were as follows: Year Ended December 31, 2016 (In thousands) Specialty P&C Workers' Compensation Lloyd's Syndicate Corporate Inter-segment Eliminations Consolidated Net premiums earned $ 457,816 $ 220,815 $ 54,650 $ — $ — $ 733,281 Net investment income — — 1,410 98,602 — 100,012 Equity in earnings (loss) of unconsolidated subsidiaries — — — (5,762 ) — (5,762 ) Net realized gains (losses) — — 76 34,799 — 34,875 Other income 5,306 844 1,415 1,069 (826 ) 7,808 Net losses and loss adjustment expenses (268,579 ) (140,534 ) (34,116 ) — — (443,229 ) Underwriting, policy acquisition and operating expenses (104,333 ) (70,464 ) (22,832 ) (30,807 ) 826 (227,610 ) Segregated portfolio cells dividend (expense) income (144 ) (7,998 ) — — — (8,142 ) Interest expense — — — (15,032 ) — (15,032 ) Income tax benefit (expense) — — (384 ) (24,736 ) — (25,120 ) Segment operating results $ 90,066 $ 2,663 $ 219 $ 58,133 $ — $ 151,081 Significant non-cash items: Depreciation and amortization $ 7,268 $ 5,600 $ 132 $ 19,789 $ — $ 32,789 Year Ended December 31, 2015 (In thousands) Specialty P&C Workers' Compensation Lloyd's Syndicate Corporate Inter-segment Eliminations Consolidated Net premiums earned $ 443,313 $ 213,161 $ 37,675 $ — $ — $ 694,149 Net investment income — — 928 107,732 — 108,660 Equity in earnings (loss) of unconsolidated subsidiaries — — — 3,682 — 3,682 Net realized gains (losses) — — 24 (41,663 ) — (41,639 ) Other income 4,561 492 698 2,057 (581 ) 7,227 Net losses and loss adjustment expenses* (250,168 ) (140,744 ) (25,181 ) — 5,382 (410,711 ) Underwriting, policy acquisition and operating expenses* (105,574 ) (63,653 ) (18,518 ) (24,518 ) (4,801 ) (217,064 ) Segregated portfolio cells dividend (expense) income — (853 ) — — — (853 ) Interest expense — — — (14,596 ) — (14,596 ) Income tax benefit (expense) — — (1,240 ) (11,418 ) — (12,658 ) Segment operating results $ 92,132 $ 8,403 $ (5,614 ) $ 21,276 $ — $ 116,197 Significant non-cash items: Depreciation and amortization $ 8,663 $ 5,696 $ 417 $ 21,442 $ — $ 36,218 * In 2015, the portion of the management fee that was allocated to ULAE was eliminated in consolidation. During 2016, ProAssurance discontinued the practice of eliminating in consolidation the portion of the management fee that was allocated to ULAE, thus there was no similar elimination in 2016. Year Ended December 31, 2014 (In thousands) Specialty P&C Workers' Compensation Lloyd's Syndicate Corporate Inter-segment Eliminations Consolidated Net premiums earned $ 492,733 $ 194,540 $ 12,458 $ — $ — $ 699,731 Net investment income — — 410 125,147 — 125,557 Equity in earnings (loss) of unconsolidated subsidiaries — — — 3,986 — 3,986 Net realized gains (losses) — — 4 14,650 — 14,654 Other income 5,823 645 126 2,285 (481 ) 8,398 Net losses and loss adjustment expenses (228,199 ) (126,447 ) (8,438 ) — — (363,084 ) Underwriting, policy acquisition and operating expenses (133,132 ) (60,357 ) (9,535 ) (8,768 ) 481 (211,311 ) Segregated portfolio cells dividend (expense) income — (1,842 ) — — — (1,842 ) Interest expense — — — (14,084 ) — (14,084 ) Income tax benefit (expense) — — — (65,440 ) — (65,440 ) Segment operating results $ 137,225 $ 6,539 $ (4,975 ) $ 57,776 $ — $ 196,565 Significant non-cash items: Depreciation and amortization $ 8,945 $ 5,828 $ 477 $ 24,344 $ — $ 39,594 |
Revenue from External Customers by Products and Services | The following table provides detailed information regarding ProAssurance's gross premiums earned by product as well as a reconciliation to net premiums earned. All gross premiums earned are from external customers except as noted. ProAssurance's insured risks are primarily within the U.S. Year Ended December 31 (In thousands) 2016 2015 2014 Specialty P&C Segment Gross premiums earned: Healthcare professional liability $ 474,981 $ 463,599 $ 477,031 Legal professional liability 26,125 28,234 28,278 Medical technology liability 34,158 34,838 35,913 Other 667 1,447 1,830 Ceded premiums earned (78,115 ) (84,805 ) (50,319 ) Segment net premiums earned 457,816 443,313 492,733 Workers' Compensation Segment Gross premiums earned: Traditional business 170,492 172,115 160,717 Alternative market business 75,658 66,168 55,616 Ceded premiums earned (25,335 ) (25,122 ) (21,793 ) Segment net premiums earned 220,815 213,161 194,540 Lloyd's Syndicate Segment Gross premiums earned: Property and casualty* 60,564 43,617 13,429 Ceded premiums earned (5,914 ) (5,942 ) (971 ) Segment net premiums earned 54,650 37,675 12,458 Consolidated Net premiums earned $ 733,281 $ 694,149 $ 699,731 * Includes premium assumed from the Specialty P&C segment of $14.0 million , $14.4 million and $4.2 million for years ended December 31, 2016 , 2015 and 2014 , respectively. |
Statutory Accounting and Divi41
Statutory Accounting and Dividend Restrictions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Insurance [Abstract] | |
Consolidated net income | Net earnings and capital and surplus of ProAssurance’s insurance subsidiaries on a statutory basis are shown in the following table. (In millions) Statutory Net Earnings Statutory Capital and Surplus 2016 2015 2014 2016 2015 $163 $168 $246 $1,403 $1,506 |
Quarterly Results of Operatio42
Quarterly Results of Operations (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |
Summary of unaudited quarterly results of operations | The following is a summary of unaudited quarterly results of operations for 2016 and 2015 : 2016 (In thousands, except per share data) 1st 2nd 3rd 4th Net premiums earned $ 177,579 $ 176,732 $ 185,275 $ 193,694 Net losses and loss adjustment expenses: Current year 139,660 143,668 147,093 156,585 Prior year (28,705 ) (36,769 ) (29,011 ) (49,292 ) Net income 19,317 43,081 33,834 54,848 Basic earnings per share 0.36 0.81 0.64 1.03 Diluted earnings per share 0.36 0.81 0.63 1.02 2015 (In thousands, except per share data) 1st 2nd 3rd 4th Net premiums earned $ 171,899 $ 175,293 $ 182,085 $ 164,874 Net losses and loss adjustment expenses: Current year 138,654 139,057 145,027 149,157 Prior year (33,514 ) (35,115 ) (36,221 ) (56,330 ) Net income 37,814 33,158 10,276 34,948 Basic earnings per share 0.67 0.60 0.19 0.66 Diluted earnings per share 0.67 0.60 0.19 0.65 * Quarterly and year-to-date computations of per share amounts are made independently; therefore, the sum of per share amounts for the quarters may not equal per share amounts for the respective year-to-date periods. |
Accounting Policies - Narrative
Accounting Policies - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2016USD ($)segment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Accounting Policies [Abstract] | |||
Number of reportable segments | segment | 4 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Insurance policy duration (years) | 1 year | ||
Recorded allowances for credit losses (less than) | $ 1,500,000 | $ 1,500,000 | |
Estimated credit losses (more than) | 700,000 | 700,000 | |
Earned but unbilled premiums | $ 4,300,000 | 3,900,000 | |
Minimum period for claims resolution (years) | 5 years | ||
Property, Plant and Equipment [Line Items] | |||
Reversal of tax position due to favorable resolution of IRS exam | $ 0 | 0 | $ 4,823,000 |
Real estate depreciation expense | 6,452,000 | 7,437,000 | 6,956,000 |
Estimated aggregate amortization of intangible assets for 2017 | 5,600,000 | ||
Estimated aggregate amortization of intangible assets for 2018 | 5,600,000 | ||
Estimated aggregate amortization of intangible assets for 2019 | 5,600,000 | ||
Estimated aggregate amortization of intangible assets for 2020 | 5,600,000 | ||
Estimated aggregate amortization of intangible assets for 2021 | $ 5,600,000 | ||
Number of reporting units | segment | 2 | ||
Goodwill impairment loss | $ 0 | 0 | |
Building and Building Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Real estate accumulated depreciation | 22,900,000 | 24,200,000 | |
Real estate depreciation expense | $ 1,400,000 | 1,500,000 | $ 1,500,000 |
Parent Company | Accounting Standards Update 2015-03 | Other Assets | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Debt issuance costs | $ 2,100,000 |
Accounting Policies - Intangibl
Accounting Policies - Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | |||
Gross carrying value non-amortizable | $ 25.8 | $ 25.8 | |
Gross carrying value amortizable | 93.6 | 94 | |
Accumulated amortization of intangible assets | 35 | 27.3 | |
Amortization expense of intangible assets | 8.1 | 8.3 | $ 10.3 |
Total Intangible Assets | $ 119.4 | $ 119.8 |
Accounting Policies - Other Ass
Accounting Policies - Other Assets and Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Accounting Policies [Abstract] | |||
SPC dividends payable | $ 34,300 | $ 16,700 | |
Liability for unpaid dividends | 265,659 | 69,447 | $ 167,744 |
Remaining other liabilities | 122,300 | 116,200 | |
Total Other liabilities | $ 422,285 | $ 202,303 |
Business Combinations (Details)
Business Combinations (Details) $ in Millions | Jan. 01, 2014USD ($) | Dec. 31, 2016Business | Dec. 31, 2015Business | Dec. 31, 2014USD ($) |
Business Combinations [Abstract] | ||||
Number of entities acquired | Business | 0 | 0 | ||
Eastern Insurance Holdings | ||||
Business Acquisition [Line Items] | ||||
Voting interests acquired (percent) | 100.00% | |||
Total purchase consideration | $ 205 | |||
Expenses related to the purchase of business | $ 2.2 |
Fair Value Measurement - Assets
Fair Value Measurement - Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Equity, Fair Value Disclosure [Abstract] | ||
Equity securities | $ 387,274 | $ 322,353 |
Other investments | 81,892 | 79,133 |
LP/LLC interests carried at NAV which approximates fair value. These interests, reported as a part of Investment in unconsolidated subsidiaries, are not categorized within the fair value hierarchy. | 204,719 | 162,624 |
Level 3 | Corporate debt, limited observable inputs | ||
Equity, Fair Value Disclosure [Abstract] | ||
Total assets categorized within the fair value hierarchy | 14,810 | 14,500 |
Level 3 | Other asset-backed securities | ||
Equity, Fair Value Disclosure [Abstract] | ||
Total assets categorized within the fair value hierarchy | 3,007 | 757 |
Fair Value, Measurements, Recurring | ||
Equity, Fair Value Disclosure [Abstract] | ||
Other investments | 31,501 | 30,611 |
Total assets categorized within the fair value hierarchy | 3,474,265 | 3,232,487 |
LP/LLC interests carried at NAV which approximates fair value. These interests, reported as a part of Investment in unconsolidated subsidiaries, are not categorized within the fair value hierarchy. | 204,719 | 162,624 |
Total assets at fair value | 3,678,984 | 3,395,111 |
Fair Value, Measurements, Recurring | U.S. Treasury obligations | ||
Assets: | ||
Fixed maturities, available for sale | 146,539 | 123,892 |
Fair Value, Measurements, Recurring | U.S. Government-sponsored enterprise obligations | ||
Assets: | ||
Fixed maturities, available for sale | 30,235 | 26,334 |
Fair Value, Measurements, Recurring | State and municipal bonds | ||
Assets: | ||
Fixed maturities, available for sale | 800,463 | 940,635 |
Fair Value, Measurements, Recurring | Corporate debt, multiple observable inputs | ||
Assets: | ||
Fixed maturities, available for sale | 1,264,181 | 1,277,186 |
Fair Value, Measurements, Recurring | Corporate debt, limited observable inputs | ||
Assets: | ||
Fixed maturities, available for sale | 14,810 | 14,500 |
Fair Value, Measurements, Recurring | Residential mortgage-backed securities | ||
Assets: | ||
Fixed maturities, available for sale | 217,906 | 238,387 |
Fair Value, Measurements, Recurring | Agency commercial mortgage-backed securities | ||
Assets: | ||
Fixed maturities, available for sale | 12,783 | 10,999 |
Fair Value, Measurements, Recurring | Other commercial mortgage-backed securities | ||
Assets: | ||
Fixed maturities, available for sale | 19,611 | 30,134 |
Fair Value, Measurements, Recurring | Other asset-backed securities | ||
Assets: | ||
Fixed maturities, available for sale | 106,878 | 98,220 |
Fair Value, Measurements, Recurring | Financial | ||
Equity, Fair Value Disclosure [Abstract] | ||
Equity securities | 81,749 | 67,764 |
Fair Value, Measurements, Recurring | Utilities/Energy | ||
Equity, Fair Value Disclosure [Abstract] | ||
Equity securities | 52,869 | 41,050 |
Fair Value, Measurements, Recurring | Consumer oriented | ||
Equity, Fair Value Disclosure [Abstract] | ||
Equity securities | 61,284 | 56,470 |
Fair Value, Measurements, Recurring | Industrial | ||
Equity, Fair Value Disclosure [Abstract] | ||
Equity securities | 54,265 | 48,305 |
Fair Value, Measurements, Recurring | Bond funds | ||
Equity, Fair Value Disclosure [Abstract] | ||
Equity securities | 90,002 | 76,316 |
Fair Value, Measurements, Recurring | All other | ||
Equity, Fair Value Disclosure [Abstract] | ||
Equity securities | 47,105 | 32,448 |
Fair Value, Measurements, Recurring | Short-term investments | ||
Equity, Fair Value Disclosure [Abstract] | ||
Short-term investments | 442,084 | 119,236 |
Fair Value, Measurements, Recurring | Level 1 | ||
Equity, Fair Value Disclosure [Abstract] | ||
Other investments | 1,956 | 3,478 |
Total assets categorized within the fair value hierarchy | 799,066 | 400,255 |
Fair Value, Measurements, Recurring | Level 1 | U.S. Treasury obligations | ||
Assets: | ||
Fixed maturities, available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | U.S. Government-sponsored enterprise obligations | ||
Assets: | ||
Fixed maturities, available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | State and municipal bonds | ||
Assets: | ||
Fixed maturities, available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Corporate debt, multiple observable inputs | ||
Assets: | ||
Fixed maturities, available for sale | 2,339 | 2,362 |
Fair Value, Measurements, Recurring | Level 1 | Corporate debt, limited observable inputs | ||
Assets: | ||
Fixed maturities, available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Residential mortgage-backed securities | ||
Assets: | ||
Fixed maturities, available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Agency commercial mortgage-backed securities | ||
Assets: | ||
Fixed maturities, available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Other commercial mortgage-backed securities | ||
Assets: | ||
Fixed maturities, available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Other asset-backed securities | ||
Assets: | ||
Fixed maturities, available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Financial | ||
Equity, Fair Value Disclosure [Abstract] | ||
Equity securities | 81,749 | 67,764 |
Fair Value, Measurements, Recurring | Level 1 | Utilities/Energy | ||
Equity, Fair Value Disclosure [Abstract] | ||
Equity securities | 52,869 | 41,050 |
Fair Value, Measurements, Recurring | Level 1 | Consumer oriented | ||
Equity, Fair Value Disclosure [Abstract] | ||
Equity securities | 61,284 | 56,470 |
Fair Value, Measurements, Recurring | Level 1 | Industrial | ||
Equity, Fair Value Disclosure [Abstract] | ||
Equity securities | 54,265 | 48,305 |
Fair Value, Measurements, Recurring | Level 1 | Bond funds | ||
Equity, Fair Value Disclosure [Abstract] | ||
Equity securities | 79,843 | 76,316 |
Fair Value, Measurements, Recurring | Level 1 | All other | ||
Equity, Fair Value Disclosure [Abstract] | ||
Equity securities | 27,181 | 18,239 |
Fair Value, Measurements, Recurring | Level 1 | Short-term investments | ||
Equity, Fair Value Disclosure [Abstract] | ||
Short-term investments | 437,580 | 86,271 |
Fair Value, Measurements, Recurring | Level 2 | ||
Equity, Fair Value Disclosure [Abstract] | ||
Other investments | 29,542 | 27,133 |
Total assets categorized within the fair value hierarchy | 2,657,379 | 2,816,975 |
Fair Value, Measurements, Recurring | Level 2 | U.S. Treasury obligations | ||
Assets: | ||
Fixed maturities, available for sale | 146,539 | 123,892 |
Fair Value, Measurements, Recurring | Level 2 | U.S. Government-sponsored enterprise obligations | ||
Assets: | ||
Fixed maturities, available for sale | 30,235 | 26,334 |
Fair Value, Measurements, Recurring | Level 2 | State and municipal bonds | ||
Assets: | ||
Fixed maturities, available for sale | 800,463 | 940,635 |
Fair Value, Measurements, Recurring | Level 2 | Corporate debt, multiple observable inputs | ||
Assets: | ||
Fixed maturities, available for sale | 1,261,842 | 1,274,824 |
Fair Value, Measurements, Recurring | Level 2 | Corporate debt, limited observable inputs | ||
Assets: | ||
Fixed maturities, available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Residential mortgage-backed securities | ||
Assets: | ||
Fixed maturities, available for sale | 217,906 | 238,387 |
Fair Value, Measurements, Recurring | Level 2 | Agency commercial mortgage-backed securities | ||
Assets: | ||
Fixed maturities, available for sale | 12,783 | 10,999 |
Fair Value, Measurements, Recurring | Level 2 | Other commercial mortgage-backed securities | ||
Assets: | ||
Fixed maturities, available for sale | 19,611 | 30,134 |
Fair Value, Measurements, Recurring | Level 2 | Other asset-backed securities | ||
Assets: | ||
Fixed maturities, available for sale | 103,871 | 97,463 |
Fair Value, Measurements, Recurring | Level 2 | Financial | ||
Equity, Fair Value Disclosure [Abstract] | ||
Equity securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Utilities/Energy | ||
Equity, Fair Value Disclosure [Abstract] | ||
Equity securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Consumer oriented | ||
Equity, Fair Value Disclosure [Abstract] | ||
Equity securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Industrial | ||
Equity, Fair Value Disclosure [Abstract] | ||
Equity securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Bond funds | ||
Equity, Fair Value Disclosure [Abstract] | ||
Equity securities | 10,159 | 0 |
Fair Value, Measurements, Recurring | Level 2 | All other | ||
Equity, Fair Value Disclosure [Abstract] | ||
Equity securities | 19,924 | 14,209 |
Fair Value, Measurements, Recurring | Level 2 | Short-term investments | ||
Equity, Fair Value Disclosure [Abstract] | ||
Short-term investments | 4,504 | 32,965 |
Fair Value, Measurements, Recurring | Level 3 | ||
Equity, Fair Value Disclosure [Abstract] | ||
Other investments | 3 | 0 |
Total assets categorized within the fair value hierarchy | 17,820 | 15,257 |
Fair Value, Measurements, Recurring | Level 3 | U.S. Treasury obligations | ||
Assets: | ||
Fixed maturities, available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | U.S. Government-sponsored enterprise obligations | ||
Assets: | ||
Fixed maturities, available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | State and municipal bonds | ||
Assets: | ||
Fixed maturities, available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Corporate debt, multiple observable inputs | ||
Assets: | ||
Fixed maturities, available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Corporate debt, limited observable inputs | ||
Assets: | ||
Fixed maturities, available for sale | 14,810 | 14,500 |
Fair Value, Measurements, Recurring | Level 3 | Residential mortgage-backed securities | ||
Assets: | ||
Fixed maturities, available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Agency commercial mortgage-backed securities | ||
Assets: | ||
Fixed maturities, available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Other commercial mortgage-backed securities | ||
Assets: | ||
Fixed maturities, available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Other asset-backed securities | ||
Assets: | ||
Fixed maturities, available for sale | 3,007 | 757 |
Fair Value, Measurements, Recurring | Level 3 | Financial | ||
Equity, Fair Value Disclosure [Abstract] | ||
Equity securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Utilities/Energy | ||
Equity, Fair Value Disclosure [Abstract] | ||
Equity securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Consumer oriented | ||
Equity, Fair Value Disclosure [Abstract] | ||
Equity securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Industrial | ||
Equity, Fair Value Disclosure [Abstract] | ||
Equity securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Bond funds | ||
Equity, Fair Value Disclosure [Abstract] | ||
Equity securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | All other | ||
Equity, Fair Value Disclosure [Abstract] | ||
Equity securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Short-term investments | ||
Equity, Fair Value Disclosure [Abstract] | ||
Short-term investments | $ 0 | $ 0 |
Fair Value Measurement - Narrat
Fair Value Measurement - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2016USD ($)AgreementReceivable | Dec. 31, 2015USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of unsecured receivables | Receivable | 2 | |
Number of line of credit agreements | Agreement | 2 | |
Transfers between Level 2 to Level 1 | $ 0 | |
Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities transferred from Level 2 to Level 1 | $ 10,200,000 | |
Transfers between Level 1 to Level 2 | $ 0 | |
A- Rating | Corporate debt, limited observable inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Credit rating | 83.00% | |
BBB Plus Rating | Corporate debt, limited observable inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Credit rating | 84.00% |
Fair Value Measurement - Quanti
Fair Value Measurement - Quantitative Information Regarding Level 3 Valuations (Details) - Fair Value, Inputs, Level 3 - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Corporate debt, limited observable inputs | ||
Assets: | ||
Fair value | $ 14,810 | $ 14,500 |
Corporate debt, limited observable inputs | Market Comparable Securities | Minimum | ||
Assets: | ||
Comparability adjustment (percent) | 0.00% | |
Corporate debt, limited observable inputs | Market Comparable Securities | Maximum | ||
Assets: | ||
Comparability adjustment (percent) | 5.00% | |
Corporate debt, limited observable inputs | Market Comparable Securities | Weighted Average | ||
Assets: | ||
Comparability adjustment (percent) | 2.50% | |
Corporate debt, limited observable inputs | Discounted Cash Flows | Minimum | ||
Assets: | ||
Comparability adjustment (percent) | 0.00% | |
Corporate debt, limited observable inputs | Discounted Cash Flows | Maximum | ||
Assets: | ||
Comparability adjustment (percent) | 5.00% | |
Corporate debt, limited observable inputs | Discounted Cash Flows | Weighted Average | ||
Assets: | ||
Comparability adjustment (percent) | 2.50% | |
Other asset-backed securities | ||
Assets: | ||
Fair value | $ 3,007 | 757 |
Other asset-backed securities | Market Comparable Securities | Minimum | ||
Assets: | ||
Comparability adjustment (percent) | 0.00% | |
Other asset-backed securities | Market Comparable Securities | Maximum | ||
Assets: | ||
Comparability adjustment (percent) | 5.00% | |
Other asset-backed securities | Market Comparable Securities | Weighted Average | ||
Assets: | ||
Comparability adjustment (percent) | 2.50% | |
Other asset-backed securities | Discounted Cash Flows | Minimum | ||
Assets: | ||
Comparability adjustment (percent) | 0.00% | |
Other asset-backed securities | Discounted Cash Flows | Maximum | ||
Assets: | ||
Comparability adjustment (percent) | 5.00% | |
Other asset-backed securities | Discounted Cash Flows | Weighted Average | ||
Assets: | ||
Comparability adjustment (percent) | 2.50% | |
Other investments | ||
Assets: | ||
Fair value | $ 3 | $ 0 |
Other investments | Discounted Cash Flows | Minimum | ||
Assets: | ||
Comparability adjustment (percent) | 0.00% | |
Other investments | Discounted Cash Flows | Maximum | ||
Assets: | ||
Comparability adjustment (percent) | 10.00% | |
Other investments | Discounted Cash Flows | Weighted Average | ||
Assets: | ||
Comparability adjustment (percent) | 5.00% |
Fair Value Measurement - Level
Fair Value Measurement - Level 3 Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation: | ||
Beginning Balance | $ 15,257 | $ 22,875 |
Total gains (losses) realized and unrealized: | ||
Included in other comprehensive income | 586 | (393) |
Purchases | 17,153 | 5,196 |
Sales | (7,249) | (5,896) |
Transfers in | 2,818 | 6,640 |
Transfers out | (10,078) | (12,570) |
Ending Balance | 17,820 | 15,257 |
Change in unrealized gains (losses) included in earnings for the above period for Level 3 assets held at period-end | 0 | 0 |
State and municipal bonds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation: | ||
Beginning Balance | 0 | 5,025 |
Total gains (losses) realized and unrealized: | ||
Included in other comprehensive income | 0 | (459) |
Purchases | 0 | 0 |
Sales | (410) | 0 |
Transfers in | 900 | 0 |
Transfers out | 0 | (4,566) |
Ending Balance | 0 | |
Change in unrealized gains (losses) included in earnings for the above period for Level 3 assets held at period-end | 0 | 0 |
Corporate Debt | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation: | ||
Beginning Balance | 14,500 | 13,081 |
Total gains (losses) realized and unrealized: | ||
Included in other comprehensive income | 531 | 73 |
Purchases | 8,900 | 1,996 |
Sales | (3,837) | (1,896) |
Transfers in | 0 | 6,640 |
Transfers out | (5,116) | (5,049) |
Ending Balance | 14,810 | 14,500 |
Change in unrealized gains (losses) included in earnings for the above period for Level 3 assets held at period-end | 0 | 0 |
Asset-backed Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation: | ||
Beginning Balance | 757 | 4,769 |
Total gains (losses) realized and unrealized: | ||
Included in other comprehensive income | 8 | (7) |
Purchases | 6,500 | 1,500 |
Sales | (1,452) | (4,000) |
Transfers in | 1,000 | 0 |
Transfers out | (3,806) | (1,494) |
Ending Balance | 3,007 | 757 |
Change in unrealized gains (losses) included in earnings for the above period for Level 3 assets held at period-end | 0 | 0 |
All other investments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation: | ||
Beginning Balance | 0 | 0 |
Total gains (losses) realized and unrealized: | ||
Included in other comprehensive income | 47 | 0 |
Purchases | 1,753 | 1,700 |
Sales | (1,550) | 0 |
Transfers in | 918 | 0 |
Transfers out | (1,156) | (1,461) |
Ending Balance | 3 | 0 |
Change in unrealized gains (losses) included in earnings for the above period for Level 3 assets held at period-end | 0 | 0 |
Net investment income | ||
Total gains (losses) realized and unrealized: | ||
Included in earnings | (102) | 18 |
Net investment income | State and municipal bonds | ||
Total gains (losses) realized and unrealized: | ||
Included in earnings | 0 | 0 |
Net investment income | Corporate Debt | ||
Total gains (losses) realized and unrealized: | ||
Included in earnings | (93) | 18 |
Net investment income | Asset-backed Securities | ||
Total gains (losses) realized and unrealized: | ||
Included in earnings | 0 | 0 |
Net investment income | All other investments | ||
Total gains (losses) realized and unrealized: | ||
Included in earnings | (9) | 0 |
Equity in earnings of unconsolidated subsidiaries | ||
Total gains (losses) realized and unrealized: | ||
Included in earnings | (83) | |
Equity in earnings of unconsolidated subsidiaries | State and municipal bonds | ||
Total gains (losses) realized and unrealized: | ||
Included in earnings | 0 | 0 |
Equity in earnings of unconsolidated subsidiaries | Corporate Debt | ||
Total gains (losses) realized and unrealized: | ||
Included in earnings | 0 | 0 |
Equity in earnings of unconsolidated subsidiaries | Asset-backed Securities | ||
Total gains (losses) realized and unrealized: | ||
Included in earnings | 0 | 0 |
Equity in earnings of unconsolidated subsidiaries | All other investments | ||
Total gains (losses) realized and unrealized: | ||
Included in earnings | 0 | (83) |
Net realized investment gains (losses) | ||
Total gains (losses) realized and unrealized: | ||
Included in earnings | (565) | (530) |
Net realized investment gains (losses) | State and municipal bonds | ||
Total gains (losses) realized and unrealized: | ||
Included in earnings | (490) | 0 |
Net realized investment gains (losses) | Corporate Debt | ||
Total gains (losses) realized and unrealized: | ||
Included in earnings | (75) | (363) |
Net realized investment gains (losses) | Asset-backed Securities | ||
Total gains (losses) realized and unrealized: | ||
Included in earnings | 0 | (11) |
Net realized investment gains (losses) | All other investments | ||
Total gains (losses) realized and unrealized: | ||
Included in earnings | $ 0 | $ (156) |
Fair Value Measurement - Invest
Fair Value Measurement - Investments in LLCs and Limited Partnerships (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 204,719,000 | $ 162,624,000 |
Private debt funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Unfunded Commitments | 7,958,000 | |
Fair Value | 55,637,000 | 50,268,000 |
Long equity fund | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Unfunded Commitments | 0 | |
Fair Value | 6,268,000 | 6,407,000 |
Long/short equity funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Unfunded Commitments | 0 | |
Fair Value | 28,926,000 | 28,030,000 |
Non-public equity funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Unfunded Commitments | 40,503,000 | |
Fair Value | 89,691,000 | 65,722,000 |
Multi-strategy fund of funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Unfunded Commitments | 0 | |
Fair Value | 8,448,000 | 8,252,000 |
Structured credit fund | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Unfunded Commitments | 0 | |
Fair Value | 4,273,000 | 3,945,000 |
Long/short commodities fund | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Unfunded Commitments | 0 | |
Fair Value | $ 11,476,000 | $ 0 |
Fair Value Measurement - Inve52
Fair Value Measurement - Investments in LLCs and Limited Partnerships Footnote (Details) | 12 Months Ended |
Dec. 31, 2016fund | |
Private debt funds | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Number of unrelated LPs funds | 2 |
Number of LPs to allow redemption by special consent | 1 |
Private debt funds | Minimum | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Anticipated time frame for distribution at the discretion of the LP (years) | 3 years |
Private debt funds | Maximum | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Anticipated time frame for distribution at the discretion of the LP (years) | 8 years |
Long equity fund | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Entities that calculate net asset value notice period (years) | 15 days |
Payment period for redemption of LP valued at NAV (years) | 10 days |
Long/short equity funds | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Payment period for redemption of LP valued at NAV (years) | 30 days |
Redemption percentage of LP at NAV for which initial payment is limited (percent) | 90.00% |
Long/short equity funds | Minimum | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Entities that calculate net asset value notice period (years) | 30 days |
Long/short equity funds | Maximum | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Entities that calculate net asset value notice period (years) | 90 days |
Non-public equity funds | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Anticipated time frame for distribution at the discretion of the LP (years) | 9 years |
Structured credit fund | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Entities that calculate net asset value notice period (years) | 90 days |
Long/short commodities fund | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Entities that calculate net asset value notice period (years) | 30 days |
Lock-up period (in years) | 1 year |
Payment period for redemption of LP valued at NAV (years) | 30 days |
Fair Value Measurement - Method
Fair Value Measurement - Methodologies Other Than Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Financial assets: | ||
BOLI | $ 60,134 | $ 57,213 |
Other investments | 81,892 | 79,133 |
Other assets | 96,004 | 103,966 |
Financial liabilities: | ||
Debt | 448,202 | 347,858 |
Other liabilities | 422,285 | 202,303 |
Not Measured At Fair Value | Carrying Value | ||
Financial assets: | ||
BOLI | 60,134 | 57,213 |
Other investments | 50,391 | 48,522 |
Other assets | 29,111 | 24,215 |
Financial liabilities: | ||
Other liabilities | 17,033 | 14,897 |
Not Measured At Fair Value | Carrying Value | Senior notes due 2023 | ||
Financial liabilities: | ||
Debt | 250,000 | 250,000 |
Not Measured At Fair Value | Carrying Value | Revolving credit agreement | ||
Financial liabilities: | ||
Debt | 200,000 | 100,000 |
Not Measured At Fair Value | Fair Value, Inputs, Level 3 | Fair Value | ||
Financial assets: | ||
BOLI | 60,134 | 57,213 |
Other investments | 58,757 | 51,646 |
Other assets | 28,960 | 24,193 |
Financial liabilities: | ||
Other liabilities | 17,011 | 14,893 |
Not Measured At Fair Value | Fair Value, Inputs, Level 3 | Fair Value | Senior notes due 2023 | ||
Financial liabilities: | ||
Debt | 270,898 | 261,308 |
Not Measured At Fair Value | Fair Value, Inputs, Level 3 | Fair Value | Revolving credit agreement | ||
Financial liabilities: | ||
Debt | $ 200,000 | $ 100,000 |
Investments - Available-For-Sal
Investments - Available-For-Sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
U.S. Treasury obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 146,186 | $ 122,855 |
Gross Unrealized Gains | 1,264 | 1,696 |
Gross Unrealized Losses | 911 | 659 |
Estimated Fair Value | 146,539 | 123,892 |
U.S. Government-sponsored enterprise obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 30,038 | 25,456 |
Gross Unrealized Gains | 388 | 927 |
Gross Unrealized Losses | 191 | 49 |
Estimated Fair Value | 30,235 | 26,334 |
State and municipal bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 790,154 | 904,719 |
Gross Unrealized Gains | 17,261 | 36,739 |
Gross Unrealized Losses | 6,952 | 823 |
Estimated Fair Value | 800,463 | 940,635 |
Corporate debt | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,264,812 | 1,296,128 |
Gross Unrealized Gains | 22,659 | 24,720 |
Gross Unrealized Losses | 8,480 | 29,162 |
Estimated Fair Value | 1,278,991 | 1,291,686 |
Residential mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 216,285 | 233,659 |
Gross Unrealized Gains | 3,667 | 6,039 |
Gross Unrealized Losses | 2,046 | 1,311 |
Estimated Fair Value | 217,906 | 238,387 |
Agency commercial mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 12,837 | 10,851 |
Gross Unrealized Gains | 89 | 174 |
Gross Unrealized Losses | 143 | 26 |
Estimated Fair Value | 12,783 | 10,999 |
Other commercial mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 19,571 | 29,983 |
Gross Unrealized Gains | 177 | 354 |
Gross Unrealized Losses | 137 | 203 |
Estimated Fair Value | 19,611 | 30,134 |
Other asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 106,938 | 98,412 |
Gross Unrealized Gains | 207 | 54 |
Gross Unrealized Losses | 267 | 246 |
Estimated Fair Value | 106,878 | 98,220 |
Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,586,821 | 2,722,063 |
Gross Unrealized Gains | 45,712 | 70,703 |
Gross Unrealized Losses | 19,127 | 32,479 |
Estimated Fair Value | $ 2,613,406 | $ 2,760,287 |
Investments - Available-For-S55
Investments - Available-For-Sale Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
U.S. Treasury obligations | ||
Fixed maturities, available for sale | ||
Amortized Cost | $ 146,186 | $ 122,855 |
Due in one year or less | 23,341 | |
Due after one year through five years | 104,168 | |
Due after five years through ten years | 15,914 | |
Due after ten years | 3,116 | |
Total Fair Value | 146,539 | 123,892 |
U.S. Government-sponsored enterprise obligations | ||
Fixed maturities, available for sale | ||
Amortized Cost | 30,038 | 25,456 |
Due in one year or less | 13,462 | |
Due after one year through five years | 4,813 | |
Due after five years through ten years | 10,240 | |
Due after ten years | 1,720 | |
Total Fair Value | 30,235 | 26,334 |
State and municipal bonds | ||
Fixed maturities, available for sale | ||
Amortized Cost | 790,154 | 904,719 |
Due in one year or less | 70,859 | |
Due after one year through five years | 262,841 | |
Due after five years through ten years | 372,660 | |
Due after ten years | 94,103 | |
Total Fair Value | 800,463 | 940,635 |
Corporate debt | ||
Fixed maturities, available for sale | ||
Amortized Cost | 1,264,812 | 1,296,128 |
Due in one year or less | 124,877 | |
Due after one year through five years | 743,566 | |
Due after five years through ten years | 385,596 | |
Due after ten years | 24,952 | |
Total Fair Value | 1,278,991 | 1,291,686 |
Residential mortgage-backed securities | ||
Fixed maturities, available for sale | ||
Amortized Cost | 216,285 | 233,659 |
Total Fair Value | 217,906 | 238,387 |
Agency commercial mortgage-backed securities | ||
Fixed maturities, available for sale | ||
Amortized Cost | 12,837 | 10,851 |
Total Fair Value | 12,783 | 10,999 |
Other commercial mortgage-backed securities | ||
Fixed maturities, available for sale | ||
Amortized Cost | 19,571 | 29,983 |
Total Fair Value | 19,611 | 30,134 |
Other asset-backed securities | ||
Fixed maturities, available for sale | ||
Amortized Cost | 106,938 | 98,412 |
Total Fair Value | 106,878 | 98,220 |
Fixed maturities | ||
Fixed maturities, available for sale | ||
Amortized Cost | 2,586,821 | 2,722,063 |
Total Fair Value | $ 2,613,406 | $ 2,760,287 |
Investments - Available-For-S56
Investments - Available-For-Sale Securities Narrative (Details) $ in Millions | Dec. 31, 2016USD ($)Affiliate |
Schedule of Available-for-sale Securities [Line Items] | |
Number of investment affiliates exceeding shareholder's equity ten percent threshold limit | Affiliate | 0 |
Threshold limit of investments based on shareholders' equity (percent) | 10.00% |
Securities on deposit with state insurance departments | $ 45.9 |
Business owned life insurance cost | 33 |
Fixed maturities | |
Schedule of Available-for-sale Securities [Line Items] | |
FAL deposit assets | 95.6 |
Short-term investments | |
Schedule of Available-for-sale Securities [Line Items] | |
FAL deposit assets | 1.5 |
Revolving credit agreement | |
Schedule of Available-for-sale Securities [Line Items] | |
Available-for-sale securities pledged as collateral | $ 252.3 |
Investments - Investments in Un
Investments - Investments in Unconsolidated Subsidiaries (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Equity Method Investments [Line Items] | ||
Carrying Value | $ 340,906 | $ 311,908 |
Qualified affordable housing tax credit partnerships | ||
Schedule of Equity Method Investments [Line Items] | ||
Carrying Value | 102,313 | 121,550 |
Other tax credit partnerships | ||
Schedule of Equity Method Investments [Line Items] | ||
Carrying Value | 11,459 | 8,362 |
All other LPs/LLCs | ||
Schedule of Equity Method Investments [Line Items] | ||
Carrying Value | $ 227,134 | $ 181,996 |
Investments - Investments in 58
Investments - Investments in Unconsolidated Subsidiaries Narrative (Details) $ in Thousands | Dec. 31, 2016USD ($)Businessinvestment_interest | Dec. 31, 2015USD ($) |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | $ 204,719 | $ 162,624 |
Investment in unconsolidated subsidiaries | $ 340,906 | 311,908 |
Number of LPs / LLCs with investment ownership percent over 25% | Business | 3 | |
Tax Credit Partnerships Almost 100% Ownership | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of tax credit partnerships almost 100% ownership percentage | investment_interest | 2 | |
Investment in unconsolidated subsidiaries | $ 40,200 | |
Tax Credit Partnerships Almost 100% Ownership | Maximum | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Percentage ownership (greater than) (percent) | 100.00% | |
Tax Credit Partnerships Less Than 20% Ownership | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment in unconsolidated subsidiaries | $ 62,100 | |
Tax Credit Partnerships Less Than 20% Ownership | Maximum | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Percentage ownership (greater than) (percent) | 20.00% | |
Other Limited Partnership and Limited Liability Company Not Considered Investment Funds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment in unconsolidated subsidiaries | $ 22,400 | $ 19,400 |
Other Limited Partnerships and Limited Liability Company, Greater Than 25 Percent Ownership | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Percentage ownership (greater than) (percent) | 25.00% | |
Investment in unconsolidated subsidiaries | $ 18,500 | |
Other Limited Partnerships and Limited Liability Company Less than 25% Ownership | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Percentage ownership (greater than) (percent) | 25.00% | |
Investment in unconsolidated subsidiaries | $ 208,600 |
Investments - Other Investments
Investments - Other Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Other Investments | ||
Other investments | $ 81,892 | $ 79,133 |
Investments in LPs/LLCs, at cost | ||
Other Investments | ||
Other investments | 46,852 | 44,958 |
Convertible securities, at fair value | ||
Other Investments | ||
Other investments | 31,501 | 30,611 |
Other, principally FHLB capital stock, at cost | ||
Other Investments | ||
Other investments | $ 3,539 | $ 3,564 |
Maximum | ||
Other Investments | ||
Period for federal home loan bank stock liquidation process (in years) | 5 years |
Investments - Investments Held
Investments - Investments Held in a Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
U.S. Treasury obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | $ 79,833 | $ 66,685 |
Unrealized Loss | 911 | 658 |
Less than 12 months, Fair Value | 79,833 | 61,869 |
Less than 12 months, Unrealized loss | 911 | 591 |
12 months or longer, Fair Value | 0 | 4,816 |
12 months or longer, Unrealized Loss | 0 | 67 |
U.S. Government-sponsored enterprise obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 11,746 | 6,819 |
Unrealized Loss | 191 | 49 |
Less than 12 months, Fair Value | 11,746 | 6,819 |
Less than 12 months, Unrealized loss | 191 | 49 |
12 months or longer, Fair Value | 0 | 0 |
12 months or longer, Unrealized Loss | 0 | 0 |
State and municipal bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 224,884 | 46,193 |
Unrealized Loss | 6,952 | 823 |
Less than 12 months, Fair Value | 219,276 | 36,822 |
Less than 12 months, Unrealized loss | 6,444 | 703 |
12 months or longer, Fair Value | 5,608 | 9,371 |
12 months or longer, Unrealized Loss | 508 | 120 |
Corporate debt | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 469,632 | 622,991 |
Unrealized Loss | 8,480 | 29,162 |
Less than 12 months, Fair Value | 424,721 | 555,097 |
Less than 12 months, Unrealized loss | 5,662 | 15,691 |
12 months or longer, Fair Value | 44,911 | 67,894 |
12 months or longer, Unrealized Loss | 2,818 | 13,471 |
Residential mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 103,680 | 87,567 |
Unrealized Loss | 2,046 | 1,311 |
Less than 12 months, Fair Value | 100,542 | 78,961 |
Less than 12 months, Unrealized loss | 1,982 | 1,095 |
12 months or longer, Fair Value | 3,138 | 8,606 |
12 months or longer, Unrealized Loss | 64 | 216 |
Agency commercial mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 4,579 | 409 |
Unrealized Loss | 143 | 26 |
Less than 12 months, Fair Value | 4,192 | 0 |
Less than 12 months, Unrealized loss | 114 | 0 |
12 months or longer, Fair Value | 387 | 409 |
12 months or longer, Unrealized Loss | 29 | 26 |
Other commercial mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 9,822 | 15,960 |
Unrealized Loss | 137 | 203 |
Less than 12 months, Fair Value | 9,179 | 12,635 |
Less than 12 months, Unrealized loss | 134 | 170 |
12 months or longer, Fair Value | 643 | 3,325 |
12 months or longer, Unrealized Loss | 3 | 33 |
Other asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 44,343 | 79,637 |
Unrealized Loss | 267 | 247 |
Less than 12 months, Fair Value | 39,079 | 74,150 |
Less than 12 months, Unrealized loss | 256 | 237 |
12 months or longer, Fair Value | 5,264 | 5,487 |
12 months or longer, Unrealized Loss | 11 | 10 |
Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 948,519 | 926,261 |
Unrealized Loss | 19,127 | 32,479 |
Less than 12 months, Fair Value | 888,568 | 826,353 |
Less than 12 months, Unrealized loss | 15,694 | 18,536 |
12 months or longer, Fair Value | 59,951 | 99,908 |
12 months or longer, Unrealized Loss | $ 3,433 | $ 13,943 |
Investments - Investments Hel61
Investments - Investments Held in a Loss Position Narrative (Details) - Non Government-Backed $ in Millions | Dec. 31, 2016USD ($)IssuerSecurity | Dec. 31, 2015USD ($)IssuerSecurity |
Schedule of Available-for-sale Securities [Line Items] | ||
Number of debt securities in unrealized loss position | Security | 703 | 773 |
Debt securities in unrealized loss position as percentage of total debt securities held (percent) | 27.20% | 28.80% |
Number of issuers in unrealized loss position | Issuer | 456 | 506 |
Single greatest unrealized loss position | $ 1.4 | |
Second greatest unrealized loss position | $ 0.5 | $ 1.3 |
Investments - Net Investment In
Investments - Net Investment Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net Investment Income | |||
Investment fees and expenses | $ (6,103) | $ (6,107) | $ (7,994) |
Net investment income | 100,012 | 108,660 | 125,557 |
Fixed maturities | |||
Net Investment Income | |||
Interest and dividend income | 85,818 | 97,348 | 111,895 |
Equities | |||
Net Investment Income | |||
Interest and dividend income | 14,887 | 13,317 | 10,817 |
Short-term and Other investments | |||
Net Investment Income | |||
Interest and dividend income | 3,402 | 2,049 | 8,833 |
BOLI | |||
Net Investment Income | |||
Interest and dividend income | $ 2,008 | $ 2,053 | $ 2,006 |
Investments - Equity in Earning
Investments - Equity in Earnings (Loss) of Unconsolidated Subsidiaries (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Investments, Debt and Equity Securities [Abstract] | |||
Losses from qualified affordable housing project tax credit investments | $ 20,000,000 | $ 10,100,000 | $ 10,700,000 |
Tax credits related to qualified affordable housing investments | 18,500,000 | 18,400,000 | 17,900,000 |
Income (loss) from historical projects | (4,800,000) | (200,000) | |
Historical tax credits | $ 9,000,000 | $ 4,000,000 | $ 0 |
Investments - Net Realized Inve
Investments - Net Realized Investment Gains (Losses) (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016USD ($)Issuer | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($)debt_security | Dec. 31, 2013USD ($) | |
Total other-than-temporary impairment losses: | ||||
OTTI losses | $ (10,834) | $ (19,917) | $ (1,475) | |
Portion of OTTI losses recognized in other comprehensive income before taxes | 1,068 | 4,572 | 268 | |
Net impairment losses recognized in earnings | (9,766) | (15,345) | (1,207) | |
Gross realized gains, available-for-sale securities | 12,451 | 11,936 | 5,627 | |
Gross realized (losses), available-for-sale securities | (7,038) | (11,481) | (1,103) | |
Net realized gains (losses), trading securities | 6,632 | 1,080 | 28,018 | |
Net realized gains (losses), Other investments | 1,115 | 464 | 326 | |
Change in unrealized holding gains (losses), trading securities | 30,557 | (28,343) | (18,883) | |
Change in unrealized holding gains (losses), convertible securities, carried at fair value | 899 | (896) | 1,876 | |
Other | 25 | 946 | 0 | |
Total net realized investment gains (losses) | 34,875 | (41,639) | 14,654 | |
Credit-related OTTI | 1,158 | 5,751 | $ 232 | $ 83 |
Number of issuers | debt_security | 2 | |||
State and municipal bonds | ||||
Total other-than-temporary impairment losses: | ||||
OTTI losses | (100) | 0 | $ (50) | |
Corporate debt | ||||
Total other-than-temporary impairment losses: | ||||
OTTI losses | (7,604) | (11,781) | (1,425) | |
Portion of OTTI losses recognized in other comprehensive income before taxes | 900 | |||
Credit-related OTTI | $ 5,500 | 4,900 | ||
Number of issuers | Issuer | 10 | |||
Other investments | ||||
Total other-than-temporary impairment losses: | ||||
OTTI losses | $ (3,130) | $ (8,136) | $ 0 |
Investments - Net Realized In65
Investments - Net Realized Investment Gains (Losses) Narrative (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016USD ($)Issuer | Dec. 31, 2015USD ($)Issuer | Dec. 31, 2014USD ($)debt_security | Dec. 31, 2013USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Net impairments recognized in earnings | $ 9,800 | |||
Credit-related OTTI | 1,158 | $ 5,751 | $ 232 | $ 83 |
Number of issuers | debt_security | 2 | |||
OTTI losses recognized in other comprehensive income | (1,068) | (4,572) | $ (268) | |
OTTI losses | (10,834) | (19,917) | (1,475) | |
Corporate debt | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Credit-related OTTI | $ 5,500 | 4,900 | ||
Number of issuers | Issuer | 10 | |||
OTTI losses recognized in other comprehensive income | $ (900) | |||
OTTI losses | (7,604) | (11,781) | (1,425) | |
Corporate bonds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Net impairments recognized in earnings | $ 7,200 | |||
Number of issuers | Issuer | 6 | |||
Non-credit impairment | $ 3,700 | |||
Other investments | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
OTTI losses | $ (3,130) | $ (8,136) | $ 0 |
Investments - Credit Losses Rec
Investments - Credit Losses Recorded in Earnings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cumulative credit losses recorded in earnings related to impaired debt securities | |||
Beginning balance | $ 5,751 | $ 232 | $ 83 |
No OTTI has been previously recognized | 2,398 | 3,648 | 149 |
OTTI has been previously recognized | 2,154 | 2,645 | 0 |
Securities sold during the period (realized) | (9,145) | (774) | 0 |
Ending balance | $ 1,158 | $ 5,751 | $ 232 |
Investments - Sales and Purchas
Investments - Sales and Purchases of Available-for-Sale Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sales (exclusive of maturities and paydowns) | $ 361,800 | $ 481,800 | $ 244,900 |
Purchases | $ 636,377 | $ 580,577 | $ 645,114 |
Reinsurance - Premiums Written
Reinsurance - Premiums Written and Earned (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Summary of the effect of reinsurance on premiums written and earned | |||
Direct premiums written | $ 794,377 | $ 780,982 | $ 761,043 |
Direct premiums earned | 790,791 | 772,968 | 755,623 |
Assumed premiums written | 40,637 | 31,236 | 18,566 |
Assumed premiums earned | 37,805 | 22,691 | 12,987 |
Ceded premiums written | (96,481) | (102,933) | (77,760) |
Ceded premiums earned | (95,315) | (101,510) | (68,879) |
Net premiums written | 738,533 | 709,285 | 701,849 |
Net premiums earned | $ 733,281 | $ 694,149 | $ 699,731 |
Reinsurance - Narrative (Detail
Reinsurance - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2016USD ($)reinsurer | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Ceded Credit Risk [Line Items] | |||
Premium ceded reduction amount | $ 7,100,000 | $ 1,100,000 | $ 15,700,000 |
Amount due from reinsurers total | $ 288,600,000 | ||
Number of major reinsurers | reinsurer | 0 | ||
Allowance for reinsurance receivables | $ 0 | 0 | |
Loss on uncollectible accounts in the period | 0 | 0 | 0 |
Assumed premiums earned | 37,805,000 | 22,691,000 | $ 12,987,000 |
Cash receipt for reinsurance commutations | 5,446,000 | $ 9,249,000 | |
Amount of reinsurance recoverables collateralized by letters of credit | 48,500,000 | ||
Novation Agreement | |||
Ceded Credit Risk [Line Items] | |||
Assumed premiums earned | 11,800,000 | ||
Minimum | |||
Ceded Credit Risk [Line Items] | |||
Major reinsurer threshold | 26,000,000 | ||
Specialty P&C | |||
Ceded Credit Risk [Line Items] | |||
Cash receipt for reinsurance commutations | 6,800,000 | ||
Amount of reinsurance recoverables collateralized by letters of credit | $ 7,100,000 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets | ||
Unpaid loss discount | $ 39,746 | $ 44,886 |
Unearned premium adjustment | 22,847 | 22,889 |
Compensation related | 20,190 | 18,130 |
Intangibles | 1,001 | 1,435 |
Total deferred tax assets | 83,784 | 87,340 |
Deferred tax liabilities | ||
Deferred acquisition costs | 9,754 | 9,287 |
Unrealized gains on investments, net | 9,797 | 13,933 |
Fixed assets | 1,291 | 3,401 |
Basis differentials–investments | 25,512 | 17,492 |
Intangibles | 22,067 | 24,644 |
Other | 5,107 | 3,486 |
Total deferred tax liabilities | 73,528 | 72,243 |
Net deferred tax assets (liabilities) | $ 10,256 | $ 15,097 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Net operating loss carryforwards | $ 0 | ||
Capital loss carryforwards | 0 | ||
Alternative minimum tax credit carryforwards | 0 | ||
Taxes payable | 5,100,000 | ||
Income taxes receivable | $ 16,400,000 | ||
Unrecognized tax benefits that would impact effective tax rate | $ 1,000,000 | $ 900,000 | |
Income Tax Contingency [Line Items] | |||
Percentage of income before income taxes included in expected income tax expense (percent) | 35.00% | 35.00% | 35.00% |
Interest Expense | |||
Income Tax Contingency [Line Items] | |||
Income tax interest and penalties | $ 200,000 | ||
Accrued liability for interest | $ 200,000 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of unrecognized tax benefits | |||
Balance at January 1 | $ 8,195 | $ 577 | $ 4,823 |
Increase for tax position acquired as result of a business combination | 0 | 0 | 414 |
Increases for tax positions taken during the current year | 361 | 7,618 | 163 |
(Decreases) for tax positions taken during the current year | 0 | 0 | (4,823) |
(Decreases) relating to a lapse of the applicable statute of limitations | (203) | 0 | 0 |
Balance at December 31 | $ 8,353 | $ 8,195 | $ 577 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of expected income tax expense to actual income tax expense | |||
Computed “expected” tax expense | $ 61,670 | $ 45,099 | $ 91,702 |
Tax-exempt income | (9,917) | (12,913) | (13,250) |
Tax credits | (27,549) | (22,407) | (17,918) |
Non-U.S. Loss | 0 | 1,806 | 1,741 |
Other | 916 | 1,073 | 3,165 |
Total income tax expense (benefit) | $ 25,120 | $ 12,658 | $ 65,440 |
Deferred Policy Acquisition C74
Deferred Policy Acquisition Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Insurance [Abstract] | |||
Amortization of deferred policy acquisition costs | $ 88.4 | $ 79.6 | $ 82.4 |
Reserve for Losses and Loss A75
Reserve for Losses and Loss Adjustment Expenses - Narrative and Activity in the Reserve (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016USD ($)partition | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)partition | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Liability for Unpaid Claims and Claims Adjustment Expense, Period Increase (Decrease) [Abstract] | |||||||||||
Minimum period for claims resolution (years) | 5 years | ||||||||||
Number of business partitions | partition | 219 | 219 | |||||||||
Summary of reserve for losses and loss adjustment expenses | |||||||||||
Balance, beginning of year | $ 2,005,326 | $ 2,058,266 | $ 2,005,326 | $ 2,058,266 | $ 2,072,822 | ||||||
Less reinsurance recoverables on unpaid losses and loss adjustment expenses | 249,350 | 237,966 | 249,350 | 237,966 | 247,518 | ||||||
Net balance, beginning of year | 1,755,976 | 1,820,300 | 1,755,976 | 1,820,300 | 1,825,304 | ||||||
Net reserves acquired from acquisitions | 0 | 0 | 139,549 | ||||||||
Net losses: | |||||||||||
Current year | $ 156,585 | $ 147,093 | $ 143,668 | 139,660 | $ 149,157 | $ 145,027 | $ 139,057 | 138,654 | 587,007 | 571,891 | 545,168 |
Favorable development of reserves established in prior years, net | (49,292) | $ (29,011) | $ (36,769) | $ (28,705) | (56,330) | $ (36,221) | $ (35,115) | $ (33,514) | (143,778) | (161,180) | (182,084) |
Total | 443,229 | 410,711 | 363,084 | ||||||||
Paid related to: | |||||||||||
Current year | (96,190) | (84,186) | (93,737) | ||||||||
Prior years | (383,062) | (390,849) | (413,900) | ||||||||
Total paid | (479,252) | (475,035) | (507,637) | ||||||||
Net balance, end of year | 1,719,953 | 1,755,976 | 1,719,953 | 1,755,976 | 1,820,300 | ||||||
Plus reinsurance recoverables on unpaid losses and loss adjustment expenses | 273,475 | 249,350 | 273,475 | 249,350 | 237,966 | ||||||
Balance, end of year | $ 1,993,428 | $ 2,005,326 | $ 1,993,428 | $ 2,005,326 | $ 2,058,266 |
Reserve for Losses and Loss A76
Reserve for Losses and Loss Adjustment Expenses - Claim Development (Details) $ in Thousands | Dec. 31, 2016USD ($)reported_claim | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2009USD ($) | Dec. 31, 2008USD ($) | Dec. 31, 2007USD ($) |
Claims Development [Line Items] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 1,541,464 | |||||||||
Healthcare Professional Liability Claims-Made | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 2,657,991 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,689,059 | |||||||||
All outstanding liabilities, net of reinsurance | 18,260 | |||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | 987,192 | |||||||||
Healthcare Professional Liability Claims-Made | 2007 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 237,925 | $ 242,248 | $ 244,809 | $ 254,458 | $ 281,491 | $ 327,498 | $ 375,908 | $ 410,175 | $ 423,950 | $ 432,313 |
Incurred but Not Reported Liabilities (IBNR) | $ 618 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 4,043 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 231,966 | 230,225 | 226,875 | 218,953 | 206,341 | 192,442 | 169,646 | 129,946 | 67,928 | 12,550 |
Healthcare Professional Liability Claims-Made | 2008 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 240,472 | 247,123 | 259,272 | 269,462 | 298,849 | 345,855 | 391,214 | 397,571 | 402,293 | |
Incurred but Not Reported Liabilities (IBNR) | $ 1,692 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 3,730 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 232,598 | 226,903 | 221,150 | 212,789 | 197,042 | 166,544 | 128,800 | 67,971 | 14,214 | |
Healthcare Professional Liability Claims-Made | 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 230,849 | 246,146 | 265,478 | 284,511 | 320,368 | 345,714 | 370,642 | 379,259 | ||
Incurred but Not Reported Liabilities (IBNR) | $ 4,774 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 3,825 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 205,372 | 200,425 | 191,420 | 178,445 | 153,563 | 114,318 | 71,272 | 15,051 | ||
Healthcare Professional Liability Claims-Made | 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 270,484 | 279,713 | 291,553 | 312,813 | 338,170 | 354,787 | 364,996 | |||
Incurred but Not Reported Liabilities (IBNR) | $ 3,436 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 3,845 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 236,171 | 221,693 | 209,777 | 180,432 | 137,712 | 69,551 | 15,464 | |||
Healthcare Professional Liability Claims-Made | 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 278,258 | 289,400 | 305,540 | 331,884 | 344,808 | 348,916 | ||||
Incurred but Not Reported Liabilities (IBNR) | $ 6,687 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 3,532 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 214,502 | 198,112 | 177,089 | 133,004 | 71,208 | 14,417 | ||||
Healthcare Professional Liability Claims-Made | 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 291,075 | 306,956 | 319,613 | 324,418 | 341,289 | |||||
Incurred but Not Reported Liabilities (IBNR) | $ 2,137 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 3,706 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 215,220 | 190,997 | 145,488 | 73,571 | 15,382 | |||||
Healthcare Professional Liability Claims-Made | 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 287,140 | 296,550 | 304,209 | 315,346 | ||||||
Incurred but Not Reported Liabilities (IBNR) | $ 3,870 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 3,809 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 171,681 | 127,496 | 69,657 | 16,938 | ||||||
Healthcare Professional Liability Claims-Made | 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 280,043 | 289,397 | 290,020 | |||||||
Incurred but Not Reported Liabilities (IBNR) | $ 10,632 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 3,331 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 116,791 | 59,485 | 16,764 | |||||||
Healthcare Professional Liability Claims-Made | 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 269,980 | 276,492 | ||||||||
Incurred but Not Reported Liabilities (IBNR) | $ 15,536 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 3,248 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 55,731 | 9,172 | ||||||||
Healthcare Professional Liability Claims-Made | 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 271,765 | |||||||||
Incurred but Not Reported Liabilities (IBNR) | $ 125,767 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 2,982 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 9,027 | |||||||||
Healthcare Professional Liability Occurrence | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 307,523 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 139,277 | |||||||||
All outstanding liabilities, net of reinsurance | 14,975 | |||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | 183,221 | |||||||||
Healthcare Professional Liability Occurrence | 2007 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 23,079 | 24,229 | 30,877 | 30,347 | 34,937 | 37,698 | 45,980 | 48,038 | 50,748 | 47,165 |
Incurred but Not Reported Liabilities (IBNR) | $ 2,228 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 346 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 19,141 | 18,875 | 18,286 | 16,898 | 14,265 | 12,257 | 7,997 | 4,976 | 2,098 | 129 |
Healthcare Professional Liability Occurrence | 2008 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 23,473 | 26,126 | 28,887 | 29,492 | 35,458 | 43,676 | 47,019 | 45,006 | 42,258 | |
Incurred but Not Reported Liabilities (IBNR) | $ 2,464 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 283 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 17,799 | 16,564 | 15,661 | 12,403 | 10,649 | 6,269 | 3,347 | 1,048 | 70 | |
Healthcare Professional Liability Occurrence | 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 26,340 | 28,731 | 32,675 | 34,099 | 37,437 | 36,802 | 35,366 | 34,450 | ||
Incurred but Not Reported Liabilities (IBNR) | $ 3,383 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 244 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 16,025 | 15,380 | 13,248 | 10,823 | 7,947 | 5,067 | 2,255 | 175 | ||
Healthcare Professional Liability Occurrence | 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 33,361 | 35,831 | 37,920 | 42,233 | 43,195 | 43,238 | 41,721 | |||
Incurred but Not Reported Liabilities (IBNR) | $ 4,235 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 289 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 22,804 | 21,837 | 15,147 | 9,120 | 5,647 | 1,881 | 285 | |||
Healthcare Professional Liability Occurrence | 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 35,004 | 37,150 | 39,917 | 41,453 | 44,956 | 45,882 | ||||
Incurred but Not Reported Liabilities (IBNR) | $ 4,068 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 340 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 21,416 | 19,197 | 16,544 | 8,059 | 2,803 | 291 | ||||
Healthcare Professional Liability Occurrence | 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 34,774 | 40,692 | 44,848 | 46,513 | 45,703 | |||||
Incurred but Not Reported Liabilities (IBNR) | $ 9,006 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 391 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 19,275 | 12,212 | 7,705 | 2,430 | 363 | |||||
Healthcare Professional Liability Occurrence | 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 34,393 | 35,624 | 36,602 | 32,746 | ||||||
Incurred but Not Reported Liabilities (IBNR) | $ 5,348 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 346 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 14,753 | 7,826 | 3,170 | 369 | ||||||
Healthcare Professional Liability Occurrence | 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 32,143 | 29,918 | 30,420 | |||||||
Incurred but Not Reported Liabilities (IBNR) | $ 15,176 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 318 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 7,460 | 2,260 | 394 | |||||||
Healthcare Professional Liability Occurrence | 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 35,347 | 35,648 | ||||||||
Incurred but Not Reported Liabilities (IBNR) | $ 18,274 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 246 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 786 | (350) | ||||||||
Healthcare Professional Liability Occurrence | 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 29,609 | |||||||||
Incurred but Not Reported Liabilities (IBNR) | $ 27,151 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 121 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ (182) | |||||||||
Medical Technology and Life Sciences Liability Reserves | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 146,727 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 101,814 | |||||||||
All outstanding liabilities, net of reinsurance | 1,038 | |||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | 45,951 | |||||||||
Medical Technology and Life Sciences Liability Reserves | 2007 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 24,194 | 24,413 | 24,211 | 26,324 | 27,348 | 29,712 | 33,599 | 37,964 | 42,660 | 36,234 |
Incurred but Not Reported Liabilities (IBNR) | $ 644 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 649 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 23,546 | 23,542 | 23,358 | 23,329 | 22,912 | 22,368 | 20,240 | 19,302 | 9,947 | 123 |
Medical Technology and Life Sciences Liability Reserves | 2008 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 34,716 | 35,330 | 38,280 | 37,783 | 42,409 | 45,156 | 48,187 | 45,788 | 43,427 | |
Incurred but Not Reported Liabilities (IBNR) | $ 738 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 971 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 34,567 | 34,567 | 34,567 | 34,588 | 32,653 | 26,620 | 26,901 | 14,772 | 4,325 | |
Medical Technology and Life Sciences Liability Reserves | 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 19,264 | 20,551 | 21,733 | 23,425 | 26,181 | 27,523 | 31,183 | 30,462 | ||
Incurred but Not Reported Liabilities (IBNR) | $ 1,004 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 721 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 15,186 | 15,184 | 15,097 | 14,933 | 14,675 | 7,742 | 5,071 | 116 | ||
Medical Technology and Life Sciences Liability Reserves | 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 16,047 | 17,439 | 19,315 | 23,307 | 25,175 | 27,063 | 26,077 | |||
Incurred but Not Reported Liabilities (IBNR) | $ 1,440 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 510 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 12,253 | 12,146 | 11,725 | 12,283 | 8,491 | 3,557 | 485 | |||
Medical Technology and Life Sciences Liability Reserves | 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 12,487 | 13,794 | 15,836 | 19,166 | 20,930 | 17,249 | ||||
Incurred but Not Reported Liabilities (IBNR) | $ 1,599 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 534 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 7,240 | 7,376 | 5,062 | 3,846 | 2,034 | 118 | ||||
Medical Technology and Life Sciences Liability Reserves | 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 5,824 | 7,441 | 8,906 | 9,989 | 11,162 | |||||
Incurred but Not Reported Liabilities (IBNR) | $ 2,131 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 234 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 3,366 | 3,247 | 2,805 | 1,520 | 568 | |||||
Medical Technology and Life Sciences Liability Reserves | 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 7,226 | 9,536 | 9,955 | 9,807 | ||||||
Incurred but Not Reported Liabilities (IBNR) | $ 4,248 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 231 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 2,599 | 1,967 | 1,029 | 102 | ||||||
Medical Technology and Life Sciences Liability Reserves | 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 9,012 | 10,306 | 9,989 | |||||||
Incurred but Not Reported Liabilities (IBNR) | $ 3,904 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 287 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 2,564 | 1,527 | 388 | |||||||
Medical Technology and Life Sciences Liability Reserves | 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 8,757 | 9,376 | ||||||||
Incurred but Not Reported Liabilities (IBNR) | $ 5,948 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 158 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 440 | 25 | ||||||||
Medical Technology and Life Sciences Liability Reserves | 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 9,200 | |||||||||
Incurred but Not Reported Liabilities (IBNR) | $ 7,878 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 163 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 53 | |||||||||
Workers' compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 934,474 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 755,382 | |||||||||
All outstanding liabilities, net of reinsurance | 1,280 | |||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | 180,372 | |||||||||
Workers' compensation | 2007 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 49,869 | 50,773 | 50,227 | 49,925 | 48,925 | 48,878 | 49,014 | 48,591 | 45,578 | 47,772 |
Incurred but Not Reported Liabilities (IBNR) | $ 327 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 13,552 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 49,422 | 49,364 | 48,917 | 48,744 | 48,551 | 47,607 | 44,321 | 39,648 | 28,281 | $ 14,042 |
Workers' compensation | 2008 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 57,239 | 56,676 | 57,928 | 57,722 | 54,950 | 54,885 | 55,090 | 55,507 | 52,155 | |
Incurred but Not Reported Liabilities (IBNR) | $ 454 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 13,836 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 56,727 | 56,582 | 56,305 | 55,697 | 54,050 | 51,256 | 45,998 | 35,879 | $ 15,246 | |
Workers' compensation | 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 62,631 | 63,398 | 63,942 | 62,731 | 60,413 | 60,351 | 60,802 | 62,255 | ||
Incurred but Not Reported Liabilities (IBNR) | $ 496 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 13,090 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 62,052 | 61,951 | 61,150 | 60,445 | 57,971 | 52,428 | 42,122 | $ 19,575 | ||
Workers' compensation | 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 71,684 | 72,504 | 72,278 | 72,742 | 73,647 | 74,196 | 75,699 | |||
Incurred but Not Reported Liabilities (IBNR) | $ 775 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 15,960 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 70,308 | 70,049 | 69,050 | 67,095 | 61,612 | 51,766 | $ 26,353 | |||
Workers' compensation | 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 91,149 | 90,993 | 91,491 | 90,769 | 84,762 | 84,074 | ||||
Incurred but Not Reported Liabilities (IBNR) | $ 903 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 18,776 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 89,040 | 88,129 | 85,743 | 79,432 | 64,874 | $ 27,863 | ||||
Workers' compensation | 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 94,627 | 95,204 | 95,716 | 96,884 | 102,044 | |||||
Incurred but Not Reported Liabilities (IBNR) | $ 1,180 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 20,151 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 91,291 | 88,350 | 82,953 | 70,179 | $ 34,574 | |||||
Workers' compensation | 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 115,115 | 114,171 | 111,730 | 111,268 | ||||||
Incurred but Not Reported Liabilities (IBNR) | $ 1,342 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 20,577 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 107,019 | 100,522 | 82,320 | $ 38,125 | ||||||
Workers' compensation | 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 121,206 | 121,128 | 120,443 | |||||||
Incurred but Not Reported Liabilities (IBNR) | $ 8,096 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 21,175 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 103,771 | 87,768 | 40,268 | |||||||
Workers' compensation | 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 132,408 | 135,960 | ||||||||
Incurred but Not Reported Liabilities (IBNR) | $ 33,567 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 22,122 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 86,553 | 43,112 | ||||||||
Workers' compensation | 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 138,546 | |||||||||
Incurred but Not Reported Liabilities (IBNR) | $ 64,150 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 21,431 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 39,199 | |||||||||
Lloyd's Syndicate | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 40,160 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 12,920 | |||||||||
All outstanding liabilities, net of reinsurance | 0 | |||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | 27,240 | |||||||||
Lloyd's Syndicate | 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 6,034 | 6,533 | 6,533 | |||||||
Incurred but Not Reported Liabilities (IBNR) | 1,531 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 4,230 | 523 | 20 | |||||||
Lloyd's Syndicate | 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 14,591 | 14,591 | ||||||||
Incurred but Not Reported Liabilities (IBNR) | 5,733 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 6,296 | 678 | ||||||||
Lloyd's Syndicate | 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 19,535 | |||||||||
Incurred but Not Reported Liabilities (IBNR) | 14,211 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 2,394 | |||||||||
Lloyd's syndicate property insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 18,669 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 12,631 | |||||||||
All outstanding liabilities, net of reinsurance | 0 | |||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | 6,038 | |||||||||
Lloyd's syndicate property insurance | 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,291 | 1,291 | 1,291 | |||||||
Incurred but Not Reported Liabilities (IBNR) | $ 106 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 71 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 1,090 | 1,234 | 267 | |||||||
Lloyd's syndicate property insurance | 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 6,787 | 6,787 | ||||||||
Incurred but Not Reported Liabilities (IBNR) | $ 377 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 398 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 5,355 | 2,859 | ||||||||
Lloyd's syndicate property insurance | 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 10,591 | |||||||||
Incurred but Not Reported Liabilities (IBNR) | $ 758 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 823 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 6,186 | |||||||||
Lloyd's syndicate property reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 8,353 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 3,402 | |||||||||
All outstanding liabilities, net of reinsurance | 0 | |||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | 4,951 | |||||||||
Lloyd's syndicate property reinsurance | 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 779 | 779 | 779 | |||||||
Incurred but Not Reported Liabilities (IBNR) | (126) | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 902 | 827 | $ 79 | |||||||
Lloyd's syndicate property reinsurance | 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 3,107 | 3,107 | ||||||||
Incurred but Not Reported Liabilities (IBNR) | 639 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,729 | $ 1,392 | ||||||||
Lloyd's syndicate property reinsurance | 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 4,467 | |||||||||
Incurred but Not Reported Liabilities (IBNR) | 2,788 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 771 |
Reserve for Losses and Loss A77
Reserve for Losses and Loss Adjustment Expenses - Historical Claims Duration (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Healthcare Professional Liability Claims-Made | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Historical claims duration, year 1 (percent) | 5.20% |
Historical claims duration, year 2 (percent) | 20.10% |
Historical claims duration, year 3 (percent) | 22.80% |
Historical claims duration, year 4 (percent) | 16.00% |
Historical claims duration, year 5 (percent) | 10.00% |
Historical claims duration, year 6 (percent) | 5.70% |
Historical claims duration, year 7 (percent) | 4.50% |
Historical claims duration, year 8 (percent) | 2.60% |
Historical claims duration, year 9 (percent) | 1.90% |
Historical claims duration, year 10 (percent) | 0.70% |
All outstanding liabilities, net of reinsurance | $ 18,260 |
Healthcare Professional Liability Occurrence | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Historical claims duration, year 1 (percent) | 0.50% |
Historical claims duration, year 2 (percent) | 6.20% |
Historical claims duration, year 3 (percent) | 13.00% |
Historical claims duration, year 4 (percent) | 14.90% |
Historical claims duration, year 5 (percent) | 15.70% |
Historical claims duration, year 6 (percent) | 10.40% |
Historical claims duration, year 7 (percent) | 9.10% |
Historical claims duration, year 8 (percent) | 4.10% |
Historical claims duration, year 9 (percent) | 3.90% |
Historical claims duration, year 10 (percent) | 1.10% |
All outstanding liabilities, net of reinsurance | $ 14,975 |
Medical technology liability | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Historical claims duration, year 1 (percent) | 3.40% |
Historical claims duration, year 2 (percent) | 19.70% |
Historical claims duration, year 3 (percent) | 22.40% |
Historical claims duration, year 4 (percent) | 12.70% |
Historical claims duration, year 5 (percent) | 7.40% |
Historical claims duration, year 6 (percent) | 2.00% |
Historical claims duration, year 7 (percent) | 0.70% |
Historical claims duration, year 8 (percent) | 0.00% |
Historical claims duration, year 9 (percent) | 0.40% |
Historical claims duration, year 10 (percent) | 0.00% |
All outstanding liabilities, net of reinsurance | $ 1,038 |
Workers' compensation | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Historical claims duration, year 1 (percent) | 31.70% |
Historical claims duration, year 2 (percent) | 36.10% |
Historical claims duration, year 3 (percent) | 16.10% |
Historical claims duration, year 4 (percent) | 7.60% |
Historical claims duration, year 5 (percent) | 4.00% |
Historical claims duration, year 6 (percent) | 1.70% |
Historical claims duration, year 7 (percent) | 0.80% |
Historical claims duration, year 8 (percent) | 0.30% |
Historical claims duration, year 9 (percent) | 0.60% |
Historical claims duration, year 10 (percent) | 0.10% |
All outstanding liabilities, net of reinsurance | $ 1,280 |
Lloyd's Syndicate Casualty | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Historical claims duration, year 1 (percent) | 24.70% |
Historical claims duration, year 2 (percent) | 49.40% |
Historical claims duration, year 3 (percent) | 16.70% |
Historical claims duration, year 4 (percent) | 6.00% |
Historical claims duration, year 5 (percent) | 2.00% |
Historical claims duration, year 6 (percent) | 0.40% |
Historical claims duration, year 7 (percent) | 0.40% |
Historical claims duration, year 8 (percent) | 0.00% |
Historical claims duration, year 9 (percent) | 0.00% |
Historical claims duration, year 10 (percent) | 0.00% |
All outstanding liabilities, net of reinsurance | $ 0 |
Lloyd's Syndicate Property Insurance | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Historical claims duration, year 1 (percent) | 80.80% |
Historical claims duration, year 2 (percent) | 15.50% |
Historical claims duration, year 3 (percent) | 2.50% |
Historical claims duration, year 4 (percent) | 0.60% |
Historical claims duration, year 5 (percent) | 0.30% |
Historical claims duration, year 6 (percent) | 0.10% |
Historical claims duration, year 7 (percent) | 0.10% |
Historical claims duration, year 8 (percent) | 0.00% |
Historical claims duration, year 9 (percent) | 0.00% |
Historical claims duration, year 10 (percent) | 0.00% |
All outstanding liabilities, net of reinsurance | $ 0 |
Lloyd's Syndicate Property Reinsurance | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Historical claims duration, year 1 (percent) | 78.60% |
Historical claims duration, year 2 (percent) | 16.40% |
Historical claims duration, year 3 (percent) | 2.80% |
Historical claims duration, year 4 (percent) | 1.60% |
Historical claims duration, year 5 (percent) | 0.40% |
Historical claims duration, year 6 (percent) | 0.20% |
Historical claims duration, year 7 (percent) | 0.10% |
Historical claims duration, year 8 (percent) | 0.00% |
Historical claims duration, year 9 (percent) | 0.00% |
Historical claims duration, year 10 (percent) | 0.00% |
All outstanding liabilities, net of reinsurance | $ 0 |
Reserve for Losses and Loss A78
Reserve for Losses and Loss Adjustment Expenses - Reconciliation of Claims Development (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | $ 1,541,464 | |||
Total reinsurance recoverable on unpaid losses and loss adjustment expenses | 273,475 | $ 249,350 | $ 237,966 | $ 247,518 |
Reserve for the future utilization of the DDR benefit | 74,200 | |||
Unallocated loss adjustment expenses | 111,628 | |||
Purchase accounting | 4,653 | |||
Other | (11,992) | |||
Liability for unpaid claims and claim adjustment expense | 178,489 | |||
Gross liability for losses and loss adjustment expenses | 1,993,428 | $ 2,005,326 | $ 2,058,266 | $ 2,072,822 |
Healthcare professional liability claims-made | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 987,192 | |||
Total reinsurance recoverable on unpaid losses and loss adjustment expenses | 132,460 | |||
Healthcare professional liability occurrence | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 183,221 | |||
Total reinsurance recoverable on unpaid losses and loss adjustment expenses | 22,576 | |||
Medical technology liability | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 45,951 | |||
Total reinsurance recoverable on unpaid losses and loss adjustment expenses | 44,627 | |||
Workers' compensation | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 180,372 | |||
Total reinsurance recoverable on unpaid losses and loss adjustment expenses | 52,111 | |||
Lloyd's syndicate casualty | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 27,240 | |||
Total reinsurance recoverable on unpaid losses and loss adjustment expenses | 172 | |||
Lloyd's syndicate property insurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 6,038 | |||
Total reinsurance recoverable on unpaid losses and loss adjustment expenses | 3,074 | |||
Lloyd's syndicate property reinsurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 4,951 | |||
Total reinsurance recoverable on unpaid losses and loss adjustment expenses | 2,094 | |||
Other short-duration lines | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 106,499 | |||
Total reinsurance recoverable on unpaid losses and loss adjustment expenses | $ 16,361 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) | 12 Months Ended | |||||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2016GBP (£) | Apr. 30, 2016GBP (£) | Dec. 31, 2015GBP (£) | |
Other Commitment, Fiscal Year Maturity | ||||||
Rent expense | $ 5,900,000 | $ 5,100,000 | $ 5,000,000 | |||
Lloyd's Syndicate | ||||||
Other Commitment, Fiscal Year Maturity | ||||||
FAL deposit assets | 97,100,000 | |||||
Current lending capacity under revolving credit agreement | £ | £ 20,000,000 | £ 10,000,000 | ||||
Interest rate on revolving credit agreement (percent) | 3.80% | |||||
Unused commitments | 13,800,000 | £ 11,200,000 | ||||
Non-Public Equity Funds | ||||||
Other Commitment, Fiscal Year Maturity | ||||||
Other commitment | 131,200,000 | |||||
Other commitment, due in 2017 | 65,900,000 | |||||
Other commitment, due in 2018 and 2019 | 42,000,000 | |||||
Other commitment, due in 2020 and 2021 | 20,500,000 | |||||
Other commitment, due thereafter | 2,800,000 | |||||
Qualified Affordable Housing Project | ||||||
Other Commitment, Fiscal Year Maturity | ||||||
Other commitment, due in 2017 | 400,000 | |||||
Other commitment, due in 2018 and 2019 | 300,000 | |||||
Other commitment, due in 2020 and 2021 | 300,000 | |||||
Other commitment, due thereafter | 400,000 | |||||
Qualified affordable housing project investments | 1,400,000 | |||||
Commitment to Provide Capital | Lloyd's Syndicate | ||||||
Other Commitment, Fiscal Year Maturity | ||||||
Other commitment | 200,000,000 | |||||
Strategic Business Partnership | ||||||
Other Commitment, Fiscal Year Maturity | ||||||
Line of credit | 9,000,000 | |||||
Line of credit unused | $ 5,500,000 |
Commitments and Contingencies80
Commitments and Contingencies - Operating Leases (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Schedule of future minimum lease payments for operating leases | |
2,017 | $ 5,027 |
2,018 | 4,483 |
2,019 | 4,049 |
2,020 | 3,268 |
2,021 | 3,054 |
Thereafter | 9,127 |
Total minimum lease payments | $ 29,008 |
Debt (Details)
Debt (Details) | 12 Months Ended | |
Dec. 31, 2016USD ($)lender | Dec. 31, 2015USD ($) | |
Debt Instrument [Line Items] | ||
Gross debt | $ 450,000,000 | $ 350,000,000 |
Less debt issuance costs | 1,798,000 | 2,142,000 |
Debt less debt issuance costs | $ 448,202,000 | 347,858,000 |
Number of participating lenders | lender | 7 | |
Senior notes due 2023 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Gross debt | $ 250,000,000 | 250,000,000 |
Interest rate (percent) | 5.30% | |
Senior notes due 2023 | Senior Notes | Base Rate | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (percent) | 0.40% | |
Revolving credit agreement | Line of Credit | ||
Debt Instrument [Line Items] | ||
Gross debt | $ 200,000,000 | $ 100,000,000 |
Additional borrowing capacity | 50,000,000 | |
Current revolving credit capacity | $ 250,000,000 | |
Maximum allowable consolidated funded indebtedness ratio (percent) | 0.35 | |
Minimum net worth required | $ 1,300,000,000 | |
Weighted average interest rate (percent) | 1.35% | |
Revolving credit agreement | Line of Credit | Federal Funds Rate | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (percent) | 0.50% | |
Revolving credit agreement | Line of Credit | One Month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (percent) | 1.00% | |
Revolving credit agreement | Line of Credit | Minimum | ||
Debt Instrument [Line Items] | ||
Commitment fee percentages (percent) | 12.50% | |
Basis spread on variable rate (percent) | 0.00% | |
Revolving credit agreement | Line of Credit | Maximum | ||
Debt Instrument [Line Items] | ||
Commitment fee percentages (percent) | 25.00% | |
Basis spread on variable rate (percent) | 163.00% |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016USD ($)defined_benefit_planshares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Equity [Abstract] | ||||
Common shares authorized (shares) | shares | 100,000,000 | 100,000,000 | ||
Authorized preferred stock (shares) | shares | 50,000,000 | |||
Authorization common shares for the issuance under incentive compensation plans (shares) | shares | 2,200,000 | |||
Number of shares available for grant (shares) | shares | 700,000 | |||
Dividends declared | $ 315,000 | $ 119,900 | $ 220,500 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity attributable to parent | 1,798,702 | 1,958,354 | $ 2,157,944 | $ 2,394,414 |
Total authorizations which remain available for use (shares) | $ 109,600 | |||
Number of defined benefit plans assumed in acquisition | defined_benefit_plan | 2 | |||
Loss related to unrecognized changes in defined benefit plan liabilities | $ 1,000 | 1,000 | ||
Impairment losses in accumulated other comprehensive income | $ 300 | 2,000 | ||
AOCI losses unrecognized changes in defined benefit plan liabilities, net | $ 1,000 | |||
Percentage of income before income taxes included in expected income tax expense (percent) | 35.00% | 35.00% | 35.00% | |
Retained Earnings, Unappropriated | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity attributable to parent | $ 441,000 |
Shareholders' Equity - Changes
Shareholders' Equity - Changes in Common Shares (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Common Stock Outstanding Rollforward [Roll Forward] | |||
Beginning Balance (shares) | 53,101 | 56,534 | 61,197 |
Repurchase of shares (shares) | (44) | (3,680) | (4,909) |
Shares issued due to exercise of options and vesting of share-based compensation awards (shares) | 108 | 150 | 154 |
Other shares issued for compensation and shares reissued to stock purchase plan (shares) | 86 | 97 | 92 |
Ending Balance (shares) | 53,251 | 53,101 | 56,534 |
Repurchase of shares, at cost | $ 2,106 | $ 169,793 | $ 222,360 |
Shareholders' Equity - Cash Div
Shareholders' Equity - Cash Dividends Declared (Details) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Class of Stock [Line Items] | |||||||||||||||
Cash dividends declared per common share (USD per share) | $ 5 | $ 0.310 | $ 0.31 | $ 0.31 | $ 1.31 | $ 0.31 | $ 0.31 | $ 0.31 | $ 2.96 | $ 0.30 | $ 0.30 | $ 0.3 | $ 5.93 | $ 2.24 | $ 3.86 |
Special Dividends | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Cash dividends declared per common share (USD per share) | $ 4.69 | $ 1 | $ 2.65 |
Shareholders' Equity - Reclassi
Shareholders' Equity - Reclassifications from AOCI to Net Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reclassification adjustments related to available-for-sale securities | |||
Deferred tax expense (benefit) included in OCI | $ (3,078) | $ (18,370) | $ (785) |
Reclassifications from AOCI to net income, available-for-sale securities | |||
Reclassification adjustments related to available-for-sale securities | |||
Total amounts reclassified, before tax effect | (2,724) | (6,754) | 3,317 |
Tax effect (at 35%) | 953 | 2,364 | (1,161) |
Net reclassification adjustments | (1,771) | (4,390) | 2,156 |
Reclassifications from AOCI to net income, available-for-sale securities | Realized investment gains (losses) | |||
Reclassification adjustments related to available-for-sale securities | |||
Total amounts reclassified, before tax effect | 2,417 | (4,475) | 3,317 |
Reclassifications from AOCI to net income, available-for-sale securities | Non-credit impairment losses reclassified to earnings, due to sale of securities or reclassification as a credit loss | |||
Reclassification adjustments related to available-for-sale securities | |||
Total amounts reclassified, before tax effect | (3,641) | (2,279) | 0 |
Reclassifications from AOCI to net income, available-for-sale securities | Unrecognized losses in defined benefit plan liabilities reclassified to earnings, due to the termination and settlement of the plan | |||
Reclassification adjustments related to available-for-sale securities | |||
Total amounts reclassified, before tax effect | $ (1,500) | $ 0 | $ 0 |
Share-Based Payments - Narrativ
Share-Based Payments - Narrative (Details) | 12 Months Ended | |||
Dec. 31, 2016USD ($)award_typeshares | Dec. 31, 2015USD ($)award_typeshares | Dec. 31, 2014USD ($)award_typeshares | Dec. 31, 2013shares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Number of award types | award_type | 3 | 3 | 3 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
The aggregate grant date intrinsic value of options exercised | $ 100,000 | $ 100,000 | $ 300,000 | |
Outstanding options (in shares) | shares | 0 | 2,114 | 4,456 | 18,082 |
Cash proceeds from stock option exercises | $ 0 | $ 0 | $ 0 | |
Restricted Share Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected average period (years) | 3 years | |||
Aggregate grant date fair value | $ 1,800,000 | 1,900,000 | 1,500,000 | |
Aggregate intrinsic value | $ 2,100,000 | 2,300,000 | 2,300,000 | |
Performance Share Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected average period (years) | 3 years | |||
Aggregate grant date fair value | $ 6,200,000 | 7,200,000 | 5,200,000 | |
Aggregate intrinsic value | $ 6,900,000 | $ 8,400,000 | $ 7,700,000 | |
The percentage of award vest (percent) | 98.00% | 115.00% | 125.00% | |
Performance Share Units | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
The percentage of award vest (percent) | 50.00% | |||
Performance Share Units | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
The percentage of award vest (percent) | 200.00% | |||
Purchase Match Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected average period (years) | 3 years | |||
Aggregate grant date fair value | $ 900,000 | $ 800,000 | $ 600,000 | |
Aggregate intrinsic value | 1,200,000 | $ 1,000,000 | $ 800,000 | |
Annual contribution for the purchase of shares | $ 5,000 |
Share-Based Payments - Compensa
Share-Based Payments - Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Summary of compensation expense and related tax benefit recognized during each period and compensation cost expense in future periods | |||
Total share-based compensation expense | $ 12,455 | $ 9,166 | $ 10,056 |
Tax benefit recognized | 4,400 | 3,200 | 3,500 |
Unrecognized Compensation Cost, amount | 12,100 | ||
Restricted Share Units | |||
Summary of compensation expense and related tax benefit recognized during each period and compensation cost expense in future periods | |||
Total share-based compensation expense | 3,700 | 2,500 | 1,700 |
Unrecognized Compensation Cost, amount | $ 4,400 | ||
Unrecognized Compensation Cost, remaining recognition period (years) | 1 year 8 months 18 days | ||
Performance Share Units | |||
Summary of compensation expense and related tax benefit recognized during each period and compensation cost expense in future periods | |||
Total share-based compensation expense | $ 7,600 | 5,900 | 7,600 |
Unrecognized Compensation Cost, amount | $ 5,700 | ||
Unrecognized Compensation Cost, remaining recognition period (years) | 1 year 6 months 21 days | ||
Purchase Match Units | |||
Summary of compensation expense and related tax benefit recognized during each period and compensation cost expense in future periods | |||
Total share-based compensation expense | $ 1,200 | $ 800 | $ 800 |
Unrecognized Compensation Cost, amount | $ 2,000 | ||
Unrecognized Compensation Cost, remaining recognition period (years) | 2 years 2 months 12 days |
Share-Based Payments - Restrict
Share-Based Payments - Restricted Share Units (Details) - Restricted Share Units - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Summary Activity for restricted share units, number of shares | |||
Beginning balance (in shares) | 178,468 | 136,802 | 138,770 |
Granted (in shares) | 109,181 | 91,943 | 49,750 |
Forfeited (in shares) | (5,954) | (1,342) | (2,044) |
Vested (in shares) | (41,546) | (48,935) | (49,674) |
Ending balance (in shares) | 240,149 | 178,468 | 136,802 |
Summary Activity for restricted share units, weighted average grant date fair value | |||
Beginning balance (USD per share) | $ 43.13 | $ 42.03 | $ 37.12 |
Granted (USD per share) | 45.59 | 42.79 | 42.95 |
Forfeited (USD per share) | 43.99 | 42.81 | 42.03 |
Vested and released (USD per share) | 44.04 | 39.45 | 29.22 |
Ending balance (USD per share) | $ 44.07 | $ 43.13 | $ 42.03 |
Share-Based Payments - Performa
Share-Based Payments - Performance Share Units (Details) - Performance Share Units - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Summary Activity for restricted share units, number of shares | |||
Beginning balance (in shares) | 390,350 | 466,860 | 486,680 |
Granted (in shares) | 60,000 | 106,490 | 160,900 |
Forfeited (in shares) | (5,162) | (2,322) | (14,221) |
Vested (in shares) | (139,948) | (180,678) | (166,499) |
Ending balance (in shares) | 305,240 | 390,350 | 466,860 |
Summary Activity for restricted share units, weighted average grant date fair value | |||
Beginning balance (USD per share) | $ 44.65 | $ 41.96 | $ 37.94 |
Granted (USD per share) | 45.59 | 42.79 | 42.95 |
Forfeited (USD per share) | 43.02 | 46.05 | 42.40 |
Vested and released (USD per share) | 44.05 | 39.58 | 31.12 |
Ending balance (USD per share) | $ 43.41 | $ 44.65 | $ 41.96 |
Share-Based Payments - Purchase
Share-Based Payments - Purchase Match Units (Details) - Purchase Match Units - $ / shares | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Summary Activity for restricted share units, number of shares | ||||
Beginning balance (in shares) | 74,483 | 72,101 | 63,125 | |
Granted (in shares) | 23,903 | 26,593 | 29,069 | |
Forfeited (in shares) | (2,875) | (3,087) | (2,968) | |
Vested (in shares) | (22,896) | (21,124) | (17,125) | |
Ending balance (in shares) | 72,615 | 74,483 | 72,101 | 63,125 |
Summary Activity for restricted share units, weighted average grant date fair value | ||||
Beginning balance (USD per share) | $ 42.80 | $ 40.62 | $ 38.51 | |
Granted (USD per share) | 50.18 | 46.09 | $ 41.16 | |
Forfeited (USD per share) | 43.77 | 41.03 | 40.21 | |
Vested and released (USD per share) | 40.88 | 39.79 | 33.81 | |
Ending balance (USD per share) | $ 45.77 | $ 42.80 | $ 40.62 | $ 38.51 |
Share-Based Payments - Stock Op
Share-Based Payments - Stock Options (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Summary of activity for stock options | |||
Beginning balance (in shares) | 2,114 | 4,456 | 18,082 |
Exercised (in shares) | (2,114) | (2,342) | (13,626) |
Ending balance (in shares) | 0 | 2,114 | 4,456 |
Summary of activity for stock options, weighted average exercise price | |||
Beginning balance (USD per share) | $ 25.02 | $ 24.64 | $ 23 |
Exercised (USD per share) | 25.02 | 24.13 | 22.47 |
Ending balance (USD per share) | $ 0 | $ 25.02 | $ 24.64 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Other investments | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity nonconsolidated assets | $ 26.9 | $ 26 |
Variable interest entity, maximum loss exposure | 26.9 | |
Equity Method Investments | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity nonconsolidated assets | 282.3 | $ 275 |
Variable interest entity, maximum loss exposure | $ 282.3 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 12 Months Ended |
Dec. 31, 2016segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 4 |
Workers' Compensation | |
Segment Reporting Information [Line Items] | |
Alternative market solutions percentage ceded | 100.00% |
Lloyd's Syndicate | |
Segment Reporting Information [Line Items] | |
Proportion of capital provided to support Lloyd's syndicate (percent) | 58.00% |
Segment Information - Financial
Segment Information - Financial Data by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | $ 193,694 | $ 185,275 | $ 176,732 | $ 177,579 | $ 164,874 | $ 182,085 | $ 175,293 | $ 171,899 | $ 733,281 | $ 694,149 | $ 699,731 |
Net investment income | 100,012 | 108,660 | 125,557 | ||||||||
Equity in earnings (loss) of unconsolidated subsidiaries | (5,762) | 3,682 | 3,986 | ||||||||
Net realized gains (losses) | 34,875 | (41,639) | 14,654 | ||||||||
Other income (loss) | 7,808 | 7,227 | 8,398 | ||||||||
Net losses and loss adjustment expenses | (443,229) | (410,711) | (363,084) | ||||||||
Underwriting, policy acquisition and operating expenses | (227,610) | (217,064) | (211,311) | ||||||||
Segregated portfolio cells dividend (expense) income | (8,142) | (853) | (1,842) | ||||||||
Interest expense | (15,032) | (14,596) | (14,084) | ||||||||
Income tax benefit (expense) | (25,120) | (12,658) | (65,440) | ||||||||
Net income | $ 54,848 | $ 33,834 | $ 43,081 | $ 19,317 | $ 34,948 | $ 10,276 | $ 33,158 | $ 37,814 | 151,081 | 116,197 | 196,565 |
Depreciation and amortization | 32,789 | 36,218 | 39,594 | ||||||||
Specialty P&C | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 457,816 | 443,313 | 492,733 | ||||||||
Workers' Compensation | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 220,815 | 213,161 | 194,540 | ||||||||
Lloyd's Syndicate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 54,650 | 37,675 | 12,458 | ||||||||
Operating Segments | Specialty P&C | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 457,816 | 443,313 | 492,733 | ||||||||
Net investment income | 0 | 0 | 0 | ||||||||
Equity in earnings (loss) of unconsolidated subsidiaries | 0 | 0 | 0 | ||||||||
Net realized gains (losses) | 0 | 0 | 0 | ||||||||
Other income (loss) | 5,306 | 4,561 | 5,823 | ||||||||
Net losses and loss adjustment expenses | (268,579) | (250,168) | (228,199) | ||||||||
Underwriting, policy acquisition and operating expenses | (104,333) | (105,574) | (133,132) | ||||||||
Segregated portfolio cells dividend (expense) income | (144) | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Income tax benefit (expense) | 0 | 0 | 0 | ||||||||
Net income | 90,066 | 92,132 | 137,225 | ||||||||
Depreciation and amortization | 7,268 | 8,663 | 8,945 | ||||||||
Operating Segments | Workers' Compensation | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 220,815 | 213,161 | 194,540 | ||||||||
Net investment income | 0 | 0 | 0 | ||||||||
Equity in earnings (loss) of unconsolidated subsidiaries | 0 | 0 | 0 | ||||||||
Net realized gains (losses) | 0 | 0 | 0 | ||||||||
Other income (loss) | 844 | 492 | 645 | ||||||||
Net losses and loss adjustment expenses | (140,534) | (140,744) | (126,447) | ||||||||
Underwriting, policy acquisition and operating expenses | (70,464) | (63,653) | (60,357) | ||||||||
Segregated portfolio cells dividend (expense) income | (7,998) | (853) | (1,842) | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Income tax benefit (expense) | 0 | 0 | |||||||||
Net income | 2,663 | 8,403 | 6,539 | ||||||||
Depreciation and amortization | 5,600 | 5,696 | 5,828 | ||||||||
Operating Segments | Lloyd's Syndicate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 54,650 | 37,675 | 12,458 | ||||||||
Net investment income | 1,410 | 928 | 410 | ||||||||
Equity in earnings (loss) of unconsolidated subsidiaries | 0 | 0 | 0 | ||||||||
Net realized gains (losses) | 76 | 24 | 4 | ||||||||
Other income (loss) | 1,415 | 698 | 126 | ||||||||
Net losses and loss adjustment expenses | (34,116) | (25,181) | (8,438) | ||||||||
Underwriting, policy acquisition and operating expenses | (22,832) | (18,518) | (9,535) | ||||||||
Segregated portfolio cells dividend (expense) income | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Income tax benefit (expense) | (384) | (1,240) | |||||||||
Net income | 219 | (5,614) | (4,975) | ||||||||
Depreciation and amortization | 132 | 417 | 477 | ||||||||
Operating Segments | Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 0 | 0 | 0 | ||||||||
Net investment income | 98,602 | 107,732 | 125,147 | ||||||||
Equity in earnings (loss) of unconsolidated subsidiaries | (5,762) | 3,682 | 3,986 | ||||||||
Net realized gains (losses) | 34,799 | (41,663) | 14,650 | ||||||||
Other income (loss) | 1,069 | 2,057 | 2,285 | ||||||||
Net losses and loss adjustment expenses | 0 | 0 | 0 | ||||||||
Underwriting, policy acquisition and operating expenses | (30,807) | (24,518) | (8,768) | ||||||||
Segregated portfolio cells dividend (expense) income | 0 | 0 | 0 | ||||||||
Interest expense | (15,032) | (14,596) | (14,084) | ||||||||
Income tax benefit (expense) | (24,736) | (11,418) | (65,440) | ||||||||
Net income | 58,133 | 21,276 | 57,776 | ||||||||
Depreciation and amortization | 19,789 | 21,442 | 24,344 | ||||||||
Inter-segment Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 0 | 0 | 0 | ||||||||
Net investment income | 0 | 0 | 0 | ||||||||
Equity in earnings (loss) of unconsolidated subsidiaries | 0 | 0 | 0 | ||||||||
Net realized gains (losses) | 0 | 0 | 0 | ||||||||
Other income (loss) | (826) | (581) | (481) | ||||||||
Net losses and loss adjustment expenses | 0 | 5,382 | 0 | ||||||||
Underwriting, policy acquisition and operating expenses | 826 | (4,801) | 481 | ||||||||
Segregated portfolio cells dividend (expense) income | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Income tax benefit (expense) | 0 | 0 | |||||||||
Net income | 0 | 0 | 0 | ||||||||
Depreciation and amortization | $ 0 | $ 0 | $ 0 |
Segment Information - Gross Pre
Segment Information - Gross Premiums Earned by Product (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Ceded premiums earned | $ (95,315) | $ (101,510) | $ (68,879) | ||||||||
Net premiums earned | $ 193,694 | $ 185,275 | $ 176,732 | $ 177,579 | $ 164,874 | $ 182,085 | $ 175,293 | $ 171,899 | 733,281 | 694,149 | 699,731 |
Specialty P&C | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Ceded premiums earned | (78,115) | (84,805) | (50,319) | ||||||||
Net premiums earned | 457,816 | 443,313 | 492,733 | ||||||||
Premiums ceded to Lloyd's Syndicate | 14,000 | 14,400 | 4,200 | ||||||||
Specialty P&C | Healthcare professional liability | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross premiums earned | 474,981 | 463,599 | 477,031 | ||||||||
Specialty P&C | Legal professional liability | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross premiums earned | 26,125 | 28,234 | 28,278 | ||||||||
Specialty P&C | Medical technology liability | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross premiums earned | 34,158 | 34,838 | 35,913 | ||||||||
Specialty P&C | Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross premiums earned | 667 | 1,447 | 1,830 | ||||||||
Workers' Compensation | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Ceded premiums earned | (25,335) | (25,122) | (21,793) | ||||||||
Net premiums earned | 220,815 | 213,161 | 194,540 | ||||||||
Workers' Compensation | Traditional business | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross premiums earned | 170,492 | 172,115 | 160,717 | ||||||||
Workers' Compensation | Alternative market business | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross premiums earned | 75,658 | 66,168 | 55,616 | ||||||||
Lloyd's Syndicate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Ceded premiums earned | (5,914) | (5,942) | (971) | ||||||||
Net premiums earned | 54,650 | 37,675 | 12,458 | ||||||||
Lloyd's Syndicate | Property and casualty | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross premiums earned | $ 60,564 | $ 43,617 | $ 13,429 |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Incurred expense related to savings and retirement plans | $ 6.9 | $ 7 | $ 6 |
Incurred expense related to non qualified deferred compensation plans | 0.3 | 0.4 | $ 0.3 |
ProAssurance deferred compensation liabilities total | $ 17.2 | $ 14.9 | |
Minimum | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Percentage of benefit plan contribution by employer (percent) | 5.00% | ||
Maximum | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Percentage of benefit plan contribution by employer (percent) | 10.00% |
Statutory Accounting and Divi97
Statutory Accounting and Dividend Restrictions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidated Net Income Related to Statutory Accounting | |||
Statutory Net Earnings | $ 163 | $ 168 | $ 246 |
Statutory Capital and Surplus | 1,403 | $ 1,506 | |
Net assets held at domestic insurance subsidiaries | 1,600 | ||
Statutory dividend payments permitted from insurance subsidiaries | $ 174 |
Quarterly Results of Operatio98
Quarterly Results of Operations (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Summary of unaudited quarterly results of operations | |||||||||||
Net premiums earned | $ 193,694 | $ 185,275 | $ 176,732 | $ 177,579 | $ 164,874 | $ 182,085 | $ 175,293 | $ 171,899 | $ 733,281 | $ 694,149 | $ 699,731 |
Net losses and loss adjustment expenses: | |||||||||||
Current year | 156,585 | 147,093 | 143,668 | 139,660 | 149,157 | 145,027 | 139,057 | 138,654 | 587,007 | 571,891 | 545,168 |
Prior year | (49,292) | (29,011) | (36,769) | (28,705) | (56,330) | (36,221) | (35,115) | (33,514) | (143,778) | (161,180) | (182,084) |
Net income | $ 54,848 | $ 33,834 | $ 43,081 | $ 19,317 | $ 34,948 | $ 10,276 | $ 33,158 | $ 37,814 | $ 151,081 | $ 116,197 | $ 196,565 |
Basic earnings per share (USD per share) | $ 1.03 | $ 0.64 | $ 0.81 | $ 0.36 | $ 0.66 | $ 0.19 | $ 0.60 | $ 0.67 | $ 2.84 | $ 2.12 | $ 3.32 |
Diluted earnings per share (USD per share) | $ 1.02 | $ 0.63 | $ 0.81 | $ 0.36 | $ 0.65 | $ 0.19 | $ 0.60 | $ 0.67 | $ 2.83 | $ 2.11 | $ 3.30 |
Schedule I - Summary of Inves99
Schedule I - Summary of Investments - Other Than Investments In Related Parties (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Recorded Cost Basis | $ 3,801,356 |
Fair Value | 3,934,062 |
Amount Which is Presented in the Balance Sheet | 3,925,696 |
U.S. Government or government agencies and authorities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Recorded Cost Basis | 176,224 |
Fair Value | 176,774 |
Amount Which is Presented in the Balance Sheet | 176,774 |
State and municipal bonds | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Recorded Cost Basis | 790,154 |
Fair Value | 800,463 |
Amount Which is Presented in the Balance Sheet | 800,463 |
Foreign governments | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Recorded Cost Basis | 5,488 |
Fair Value | 5,524 |
Amount Which is Presented in the Balance Sheet | 5,524 |
Public utilities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Recorded Cost Basis | 88,886 |
Fair Value | 91,038 |
Amount Which is Presented in the Balance Sheet | 91,038 |
All other corporate bonds | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Recorded Cost Basis | 1,170,288 |
Fair Value | 1,182,279 |
Amount Which is Presented in the Balance Sheet | 1,182,279 |
Certificates of deposit | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Recorded Cost Basis | 150 |
Fair Value | 150 |
Amount Which is Presented in the Balance Sheet | 150 |
Mortgage-backed securities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Recorded Cost Basis | 355,631 |
Fair Value | 357,178 |
Amount Which is Presented in the Balance Sheet | 357,178 |
Total Fixed Maturities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Recorded Cost Basis | 2,586,821 |
Fair Value | 2,613,406 |
Amount Which is Presented in the Balance Sheet | 2,613,406 |
Public utilities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Recorded Cost Basis | 10,365 |
Fair Value | 12,100 |
Amount Which is Presented in the Balance Sheet | 12,100 |
Banks, trusts and insurance companies | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Recorded Cost Basis | 72,416 |
Fair Value | 81,749 |
Amount Which is Presented in the Balance Sheet | 81,749 |
Industrial, miscellaneous and all other | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Recorded Cost Basis | 270,963 |
Fair Value | 293,425 |
Amount Which is Presented in the Balance Sheet | 293,425 |
Total Equity Securities, trading | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Recorded Cost Basis | 353,744 |
Fair Value | 387,274 |
Amount Which is Presented in the Balance Sheet | 387,274 |
Other long-term investments | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Recorded Cost Basis | 418,707 |
Fair Value | 491,298 |
Amount Which is Presented in the Balance Sheet | 482,932 |
Short-term investments | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Recorded Cost Basis | 442,084 |
Fair Value | 442,084 |
Amount Which is Presented in the Balance Sheet | $ 442,084 |
Schedule II - Condensed Fina100
Schedule II - Condensed Financial Information of Registrant - Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets | ||||
Fixed maturities available for sale, at fair value | $ 2,613,406 | $ 2,760,287 | ||
Short-term investments | 442,084 | 119,236 | ||
Investment in unconsolidated subsidiaries | 340,906 | 311,908 | ||
Cash and cash equivalents | 117,347 | 241,100 | $ 197,040 | $ 129,383 |
Other assets | 96,004 | 103,966 | ||
Total Assets | 5,065,181 | 4,906,021 | ||
Liabilities | ||||
Dividends declared and not yet paid | 265,659 | 69,447 | 167,744 | |
Other liabilities | 422,285 | 202,303 | ||
Debt less debt issuance costs | 448,202 | 347,858 | ||
Total Liabilities | 3,266,479 | 2,947,667 | ||
Shareholders’ Equity: | ||||
Common stock | 627 | 625 | ||
Total Shareholders’ Equity | 1,798,702 | 1,958,354 | 2,157,944 | 2,394,414 |
Total Liabilities and Shareholders’ Equity | 5,065,181 | 4,906,021 | ||
Parent Company | ||||
Assets | ||||
Investment in subsidiaries, at equity | 1,908,663 | 2,026,247 | ||
Fixed maturities available for sale, at fair value | 267,412 | 202,501 | ||
Short-term investments | 279,510 | 16,716 | ||
Investment in unconsolidated subsidiaries | 845 | 0 | ||
Cash and cash equivalents | 31,330 | 103,292 | 87,200 | $ 37,459 |
Due from subsidiaries | 185 | 0 | ||
Other assets | 33,350 | 46,146 | ||
Total Assets | 2,521,295 | 2,394,902 | ||
Liabilities | ||||
Due to subsidiaries | 0 | 14,803 | ||
Dividends declared and not yet paid | 265,659 | 69,447 | $ 167,744 | |
Other liabilities | 8,733 | 4,440 | ||
Debt less debt issuance costs | 448,202 | 347,858 | ||
Total Liabilities | 722,594 | 436,548 | ||
Shareholders’ Equity: | ||||
Common stock | 627 | 625 | ||
Other shareholders’ equity, including unrealized gains (losses) on securities of subsidiaries | 1,798,074 | 1,957,729 | ||
Total Shareholders’ Equity | 1,798,701 | 1,958,354 | ||
Total Liabilities and Shareholders’ Equity | $ 2,521,295 | $ 2,394,902 |
Schedule II - Condensed Fina101
Schedule II - Condensed Financial Information of Registrant - Condensed Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues | |||||||||||
Net investment income | $ 100,012 | $ 108,660 | $ 125,557 | ||||||||
Equity in earnings (loss) of unconsolidated subsidiaries | (5,762) | 3,682 | 3,986 | ||||||||
Other income (loss) | 7,808 | 7,227 | 8,398 | ||||||||
Total revenues | 870,214 | 772,079 | 852,326 | ||||||||
Expenses | |||||||||||
Interest expense | 15,032 | 14,596 | 14,084 | ||||||||
Total expenses | 694,013 | 643,224 | 590,321 | ||||||||
Income tax expense (benefit) | 25,120 | 12,658 | 65,440 | ||||||||
Net income | $ 54,848 | $ 33,834 | $ 43,081 | $ 19,317 | $ 34,948 | $ 10,276 | $ 33,158 | $ 37,814 | 151,081 | 116,197 | 196,565 |
Other comprehensive income | (6,456) | (34,349) | (1,457) | ||||||||
Comprehensive income | 144,625 | 81,848 | 195,108 | ||||||||
Parent Company | |||||||||||
Revenues | |||||||||||
Net investment income | 6,359 | 5,017 | 3,295 | ||||||||
Equity in earnings (loss) of unconsolidated subsidiaries | (155) | 0 | 0 | ||||||||
Net realized investment gains (losses) | 405 | 4,673 | 990 | ||||||||
Other income (loss) | (960) | 378 | 660 | ||||||||
Total revenues | 5,649 | 10,068 | 4,945 | ||||||||
Expenses | |||||||||||
Interest expense | 15,030 | 14,596 | 14,084 | ||||||||
Other expenses | 28,305 | 24,695 | 7,083 | ||||||||
Total expenses | 43,335 | 39,291 | 21,167 | ||||||||
Income (loss) before income tax expense (benefit) and equity in net income of consolidated subsidiaries | (37,686) | (29,223) | (16,222) | ||||||||
Income tax expense (benefit) | (12,583) | (11,657) | (6,728) | ||||||||
Income (loss) before equity in net income of consolidated subsidiaries | (25,103) | (17,566) | (9,494) | ||||||||
Equity in net income of consolidated subsidiaries | 176,184 | 133,763 | 206,059 | ||||||||
Net income | 151,081 | 116,197 | 196,565 | ||||||||
Other comprehensive income | (6,456) | (34,349) | (1,457) | ||||||||
Comprehensive income | $ 144,625 | $ 81,848 | $ 195,108 |
Schedule II - Condensed Fina102
Schedule II - Condensed Financial Information of Registrant - Condensed Statements of Cash Flow (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided (used) by operating activities | $ 169,120,000 | $ 111,124,000 | $ 96,002,000 |
Purchases of: | |||
Equity securities trading | (112,912,000) | (271,608,000) | (119,865,000) |
(Investments in) distributions from unconsolidated subsidiaries, net: | |||
Other partnership investments | (18,613,000) | (33,366,000) | (25,109,000) |
Proceeds from sale or maturities of: | |||
Fixed maturities, available for sale | 752,516,000 | 886,886,000 | 703,828,000 |
Equity securities trading | 85,226,000 | 236,476,000 | 134,005,000 |
Net decrease (increase) in short-term investments | (322,872,000) | 11,932,000 | 140,411,000 |
(Increase) decrease in restricted cash | 0 | 0 | 78,000,000 |
Unsettled security transactions, net of change | 1,388,000 | 2,339,000 | (2,953,000) |
Funds (advanced) repaid for Syndicate 1729 FAL deposit | 0 | 0 | 8,690,000 |
Other | 4,792,000 | (2,505,000) | (1,507,000) |
Net cash provided (used) by investing activities | (278,939,000) | 227,787,000 | 266,980,000 |
Financing Activities | |||
Repurchase of common stock | (2,106,000) | (172,772,000) | (222,360,000) |
Excess of tax benefit from share-based payment arrangements | 778,000 | 494,000 | 2,702,000 |
Dividends to shareholders | (118,812,000) | (217,626,000) | (71,252,000) |
Other | (3,746,000) | (5,783,000) | (4,415,000) |
Net cash provided (used) by financing activities | (13,934,000) | (294,851,000) | (295,325,000) |
Increase (decrease) in cash and cash equivalents | (123,753,000) | 44,060,000 | 67,657,000 |
Cash and cash equivalents at beginning of period | 241,100,000 | 197,040,000 | 129,383,000 |
Cash and cash equivalents at end of period | 117,347,000 | 241,100,000 | 197,040,000 |
Supplemental Disclosure of Cash Flow Information | |||
Cash paid during the year for interest | 14,732,000 | 13,996,000 | 13,408,000 |
Significant non-cash transactions: | |||
Dividends declared and not yet paid | 265,659,000 | 69,447,000 | 167,744,000 |
Parent Company | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided (used) by operating activities | (10,549,000) | (14,411,000) | 20,086,000 |
Purchases of: | |||
Equity securities trading | 0 | 0 | (310,000) |
(Investments in) distributions from unconsolidated subsidiaries, net: | |||
Other partnership investments | (1,000,000) | 0 | 0 |
Proceeds from sale or maturities of: | |||
Fixed maturities, available for sale | 100,240,000 | 200,245,000 | 104,844,000 |
Equity securities trading | 0 | 0 | 12,813,000 |
Dividends from subsidiaries | 122,030,000 | 107,870,000 | 67,188,000 |
Contribution of capital to subsidiaries | (1,983,000) | 0 | (7,000,000) |
Net decrease (increase) in short-term investments | (262,169,000) | 26,074,000 | 149,202,000 |
(Increase) decrease in restricted cash | 0 | 0 | 78,000,000 |
Unsettled security transactions, net of change | (1,100,000) | 0 | 0 |
Funds (advanced) repaid for Syndicate 1729 FAL deposit | 0 | (9,642,000) | (76,553,000) |
Funds (advanced) repaid under Syndicate 1729 credit agreement | 1,695,000 | (3,083,000) | (9,107,000) |
Proceeds from (Repayments of) Lines of Credit | (3,090,000) | 0 | 0 |
Other | (2,805,000) | (289,000) | 415,000 |
Net cash provided (used) by investing activities | (48,182,000) | 321,175,000 | 319,492,000 |
Financing Activities | |||
Proceeds from debt | 100,000,000 | 100,000,000 | 0 |
Repurchase of common stock | (2,106,000) | (172,772,000) | (222,360,000) |
Subsidiary payments for common shares and share-based compensation awarded to subsidiary employees | 11,384,000 | 6,063,000 | 8,301,000 |
Excess of tax benefit from share-based payment arrangements | 688,000 | 379,000 | 1,631,000 |
Dividends to shareholders | (118,812,000) | (217,626,000) | (70,490,000) |
Other | (4,385,000) | (6,716,000) | (6,919,000) |
Net cash provided (used) by financing activities | (13,231,000) | (290,672,000) | (289,837,000) |
Increase (decrease) in cash and cash equivalents | (71,962,000) | 16,092,000 | 49,741,000 |
Cash and cash equivalents at beginning of period | 103,292,000 | 87,200,000 | 37,459,000 |
Cash and cash equivalents at end of period | 31,330,000 | 103,292,000 | 87,200,000 |
Supplemental Disclosure of Cash Flow Information | |||
Cash paid during the year for income taxes, net of refunds | (8,519,000) | 47,004,000 | 26,764,000 |
Cash paid during the year for interest | 14,732,000 | 13,996,000 | 13,408,000 |
Significant non-cash transactions: | |||
Dividends declared and not yet paid | 265,659,000 | 69,447,000 | 167,744,000 |
Securities transferred at fair value as dividends from subsidiaries | 174,270,000 | 206,880,000 | 227,412,000 |
Non-cash capital contribution to subsidiaries | $ 0 | $ 87,719,000 | $ 0 |
Schedule II - Condensed Fina103
Schedule II - Condensed Financial Information of Registrant - Basis of Presentation (Details) - Parent Company - Accounting Standards Update 2015-03 $ in Millions | Dec. 31, 2015USD ($) |
Other Assets | |
Condensed Financial Statements, Captions [Line Items] | |
Debt issuance costs | $ (2.1) |
Debt | |
Condensed Financial Statements, Captions [Line Items] | |
Debt issuance costs | $ (2.1) |
Schedule III - Supplementary104
Schedule III - Supplementary Insurance Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Supplementary Insurance Information, by Segment [Line Items] | |||||||||||
Net premiums earned | $ 733,281 | $ 694,149 | $ 699,731 | ||||||||
Net investment income | 100,012 | 108,660 | 125,557 | ||||||||
Losses and loss adjustment expenses incurred related to current year, net of reinsurance | $ 156,585 | $ 147,093 | $ 143,668 | $ 139,660 | $ 149,157 | $ 145,027 | $ 139,057 | $ 138,654 | 587,007 | 571,891 | 545,168 |
Losses and loss adjustment expenses incurred related to prior year, net of reinsurance | (49,292) | $ (29,011) | $ (36,769) | $ (28,705) | (56,330) | $ (36,221) | $ (35,115) | $ (33,514) | (143,778) | (161,180) | (182,084) |
Paid losses and loss adjustment expenses, net of reinsurance | 479,252 | 475,035 | 507,637 | ||||||||
Underwriting, policy acquisition and operating expenses: | 88,378 | 79,556 | 68,577 | ||||||||
Other underwriting, policy acquisition and operating expenses | 139,232 | 137,508 | 142,734 | ||||||||
Net premiums written | 738,533 | 709,285 | 701,849 | ||||||||
Deferred policy acquisition costs | 46,809 | 44,388 | 46,809 | 44,388 | 38,790 | ||||||
Reserve for losses and loss adjustment expenses | 1,993,428 | 2,005,326 | 1,993,428 | 2,005,326 | 2,058,266 | ||||||
Unearned premiums | $ 372,563 | $ 362,066 | 372,563 | 362,066 | 345,828 | ||||||
Inter-segment Eliminations | |||||||||||
Supplementary Insurance Information, by Segment [Line Items] | |||||||||||
Losses and loss adjustment expenses incurred related to current year, net of reinsurance | 0 | (5,382) | 0 | ||||||||
Paid losses and loss adjustment expenses, net of reinsurance | 0 | (5,416) | 0 | ||||||||
Underwriting, policy acquisition and operating expenses: | 0 | 24 | 0 | ||||||||
Other underwriting, policy acquisition and operating expenses | (826) | 4,777 | (481) | ||||||||
Specialty P&C | |||||||||||
Supplementary Insurance Information, by Segment [Line Items] | |||||||||||
Net premiums earned | 457,816 | 443,313 | 492,733 | ||||||||
Losses and loss adjustment expenses incurred related to prior year, net of reinsurance | (137,159) | (158,981) | (180,788) | ||||||||
Net premiums written | 458,681 | 442,126 | 467,046 | ||||||||
Specialty P&C | Operating Segments | |||||||||||
Supplementary Insurance Information, by Segment [Line Items] | |||||||||||
Losses and loss adjustment expenses incurred related to current year, net of reinsurance | 405,738 | 409,149 | 408,987 | ||||||||
Paid losses and loss adjustment expenses, net of reinsurance | 343,678 | 346,606 | 389,458 | ||||||||
Underwriting, policy acquisition and operating expenses: | 45,019 | 45,459 | 55,105 | ||||||||
Other underwriting, policy acquisition and operating expenses | 59,314 | 60,115 | 78,027 | ||||||||
Workers' Compensation | |||||||||||
Supplementary Insurance Information, by Segment [Line Items] | |||||||||||
Net premiums earned | 220,815 | 213,161 | 194,540 | ||||||||
Losses and loss adjustment expenses incurred related to prior year, net of reinsurance | (6,120) | (2,199) | (1,296) | ||||||||
Net premiums written | 223,578 | 218,338 | 202,697 | ||||||||
Workers' Compensation | Operating Segments | |||||||||||
Supplementary Insurance Information, by Segment [Line Items] | |||||||||||
Losses and loss adjustment expenses incurred related to current year, net of reinsurance | 146,654 | 142,943 | 127,743 | ||||||||
Paid losses and loss adjustment expenses, net of reinsurance | 114,320 | 126,296 | 117,775 | ||||||||
Underwriting, policy acquisition and operating expenses: | 29,590 | 26,232 | 10,307 | ||||||||
Other underwriting, policy acquisition and operating expenses | 40,874 | 37,421 | 50,050 | ||||||||
Lloyd's Syndicate | |||||||||||
Supplementary Insurance Information, by Segment [Line Items] | |||||||||||
Net premiums earned | 54,650 | 37,675 | 12,458 | ||||||||
Net investment income | 1,410 | 928 | 410 | ||||||||
Losses and loss adjustment expenses incurred related to prior year, net of reinsurance | (499) | 0 | 0 | ||||||||
Net premiums written | 56,274 | 48,821 | 32,106 | ||||||||
Lloyd's Syndicate | Operating Segments | |||||||||||
Supplementary Insurance Information, by Segment [Line Items] | |||||||||||
Losses and loss adjustment expenses incurred related to current year, net of reinsurance | 34,615 | 25,181 | 8,438 | ||||||||
Paid losses and loss adjustment expenses, net of reinsurance | 21,254 | 7,549 | 404 | ||||||||
Underwriting, policy acquisition and operating expenses: | 13,769 | 7,841 | 3,165 | ||||||||
Other underwriting, policy acquisition and operating expenses | 9,063 | 10,677 | 6,370 | ||||||||
Corporate | |||||||||||
Supplementary Insurance Information, by Segment [Line Items] | |||||||||||
Net investment income | 98,602 | 107,732 | 125,147 | ||||||||
Corporate | Operating Segments | |||||||||||
Supplementary Insurance Information, by Segment [Line Items] | |||||||||||
Other underwriting, policy acquisition and operating expenses | $ 30,807 | $ 24,518 | $ 8,768 |
Schedule IV - Reinsurance (Deta
Schedule IV - Reinsurance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property and Liability | |||
Premiums earned | $ 790,791 | $ 772,968 | $ 755,623 |
Premiums ceded | (95,315) | (101,510) | (68,879) |
Premiums assumed | 37,805 | 22,691 | 12,987 |
Net premiums earned | $ 733,281 | $ 694,149 | $ 699,731 |
Percentage of amount assumed to net | 5.16% | 3.27% | 1.86% |