Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 15, 2019 | Jun. 30, 2018 | |
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, 2018 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 53,640,178 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1,865,211,215 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Investments | ||
Fixed maturities, at fair value; cost or amortized cost, $2,155,270 and $2,257,188, respectively | $ 2,131,986 | $ 2,280,242 |
Equity investments, at fair value; cost, $450,931 and $425,942, respectively | 442,937 | 470,609 |
Short-term investments | 308,319 | 432,126 |
Business owned life insurance | 64,096 | 62,113 |
Investment in unconsolidated subsidiaries | 367,757 | 330,591 |
Other investments, $31,344 and $52,301 at fair value, respectively, otherwise at cost or amortized cost | 34,287 | 110,847 |
Total Investments | 3,349,382 | 3,686,528 |
Cash and cash equivalents | 80,471 | 134,495 |
Premiums receivable | 261,466 | 238,085 |
Receivable from reinsurers on paid losses and loss adjustment expenses | 11,558 | 7,317 |
Receivable from reinsurers on unpaid losses and loss adjustment expenses | 343,820 | 335,585 |
Prepaid reinsurance premiums | 40,631 | 39,916 |
Deferred policy acquisition costs | 54,116 | 50,261 |
Deferred tax asset, net | 29,108 | 9,930 |
Real estate, net | 31,114 | 31,975 |
Intangible assets, net | 76,776 | 82,952 |
Goodwill | 210,725 | 210,725 |
Other assets | 111,559 | 101,428 |
Total Assets | 4,600,726 | 4,929,197 |
Policy liabilities and accruals | ||
Reserve for losses and loss adjustment expenses | 2,119,847 | 2,048,381 |
Unearned premiums | 415,211 | 398,884 |
Reinsurance premiums payable | 55,614 | 37,726 |
Total Policy Liabilities | 2,590,672 | 2,484,991 |
Other liabilities | 199,295 | 437,600 |
Debt less debt issuance costs | 287,757 | 411,811 |
Total Liabilities | 3,077,724 | 3,334,402 |
Shareholders’ Equity: | ||
Common shares, par value $0.01 per share, 100,000,000 shares authorized, 62,989,421 and 62,824,523 shares issued, respectively | 630 | 628 |
Additional paid-in capital | 384,713 | 383,077 |
Accumulated other comprehensive income (loss), net of deferred tax expense (benefit) of ($4,355) and $5,218, respectively | (16,911) | 14,911 |
Retained earnings | 1,571,847 | 1,614,186 |
Treasury shares, at cost, 9,352,373 shares and 9,367,502 shares, respectively | (417,277) | (418,007) |
Total Shareholders’ Equity | 1,523,002 | 1,594,795 |
Total Liabilities and Shareholders' Equity | $ 4,600,726 | $ 4,929,197 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, available for sale, at fair value; amortized cost | $ 2,155,270 | $ 2,257,188 |
Equity Investments, fair value, cost | 450,931 | 425,942 |
Other investments, portion carried at fair value | $ 31,344 | $ 52,301 |
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) | 62,989,421 | 62,824,523 |
Deferred tax expense (benefit) on accumulated other comprehensive income (loss) | $ (4,355) | $ 5,218 |
Treasury shares, number of shares (shares) | 9,352,373 | 9,367,502 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Capital - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Increase (Decrease) in Stockholders' Equity: | |||||||
Beginning Balance | $ 1,594,795 | $ 1,798,702 | $ 1,594,795 | $ 1,798,702 | $ 1,958,354 | ||
Common shares reacquired | (2,106) | ||||||
Common shares issued for compensation and effect of shares reissued to stock purchase plan | 1,044 | 2,880 | 3,432 | ||||
Share-based compensation | 5,258 | 10,615 | 12,455 | ||||
Net effect of restricted and performance shares issued | (3,934) | (5,437) | (3,030) | ||||
Dividends to shareholders | (94,314) | (316,890) | (315,028) | ||||
Other comprehensive income (loss) | (35,238) | (2,488) | (6,456) | ||||
Net income | $ (24,450) | 11,856 | $ 17,342 | 41,455 | 47,057 | 107,264 | 151,081 |
Ending Balance | 1,523,002 | 1,594,795 | 1,523,002 | 1,594,795 | 1,798,702 | ||
Accounting Standards Update 2016-09 | |||||||
Increase (Decrease) in Stockholders' Equity: | |||||||
Cumulative-effect adjustment ASU adoption | 149 | ||||||
Accounting Standards Update 2016-01 | |||||||
Increase (Decrease) in Stockholders' Equity: | |||||||
Cumulative-effect adjustment ASU adoption | 8,334 | 8,334 | |||||
Common Stock | |||||||
Increase (Decrease) in Stockholders' Equity: | |||||||
Beginning Balance | 628 | 627 | 628 | 627 | 625 | ||
Net effect of restricted and performance shares issued | 2 | 1 | 2 | ||||
Ending Balance | 630 | 628 | 630 | 628 | 627 | ||
Additional Paid-in Capital | |||||||
Increase (Decrease) in Stockholders' Equity: | |||||||
Beginning Balance | 383,077 | 376,518 | 383,077 | 376,518 | 365,399 | ||
Common shares issued for compensation and effect of shares reissued to stock purchase plan | 314 | 957 | 1,696 | ||||
Share-based compensation | 5,258 | 10,615 | 12,455 | ||||
Net effect of restricted and performance shares issued | (3,936) | (5,438) | (3,032) | ||||
Ending Balance | 384,713 | 383,077 | 384,713 | 383,077 | 376,518 | ||
Additional Paid-in Capital | Accounting Standards Update 2016-09 | |||||||
Increase (Decrease) in Stockholders' Equity: | |||||||
Cumulative-effect adjustment ASU adoption | 425 | ||||||
Additional Paid-in Capital | Accounting Standards Update 2016-01 | |||||||
Increase (Decrease) in Stockholders' Equity: | |||||||
Cumulative-effect adjustment ASU adoption | 0 | 0 | |||||
Accumulated Other Comprehensive Income (Loss) | |||||||
Increase (Decrease) in Stockholders' Equity: | |||||||
Beginning Balance | 14,911 | 17,399 | 14,911 | 17,399 | 23,855 | ||
Other comprehensive income (loss) | (35,238) | (2,488) | (6,456) | ||||
Ending Balance | (16,911) | 14,911 | (16,911) | 14,911 | 17,399 | ||
Accumulated Other Comprehensive Income (Loss) | Accounting Standards Update 2018-02 | |||||||
Increase (Decrease) in Stockholders' Equity: | |||||||
Cumulative-effect adjustment ASU adoption | 3,416 | 3,416 | |||||
Retained Earnings | |||||||
Increase (Decrease) in Stockholders' Equity: | |||||||
Beginning Balance | 1,614,186 | 1,824,088 | 1,614,186 | 1,824,088 | 1,988,035 | ||
Dividends to shareholders | (94,314) | (316,890) | (315,028) | ||||
Net income | 47,057 | 107,264 | 151,081 | ||||
Ending Balance | 1,571,847 | 1,614,186 | 1,571,847 | 1,614,186 | 1,824,088 | ||
Retained Earnings | Accounting Standards Update 2016-09 | |||||||
Increase (Decrease) in Stockholders' Equity: | |||||||
Cumulative-effect adjustment ASU adoption | (276) | ||||||
Retained Earnings | Accounting Standards Update 2016-01 | |||||||
Increase (Decrease) in Stockholders' Equity: | |||||||
Cumulative-effect adjustment ASU adoption | 8,334 | 8,334 | |||||
Retained Earnings | Accounting Standards Update 2018-02 | |||||||
Increase (Decrease) in Stockholders' Equity: | |||||||
Cumulative-effect adjustment ASU adoption | (3,416) | (3,416) | |||||
Treasury Stock | |||||||
Increase (Decrease) in Stockholders' Equity: | |||||||
Beginning Balance | $ (418,007) | $ (419,930) | (418,007) | (419,930) | (419,560) | ||
Common shares reacquired | (2,106) | ||||||
Common shares issued for compensation and effect of shares reissued to stock purchase plan | 730 | 1,923 | 1,736 | ||||
Ending Balance | $ (417,277) | $ (418,007) | $ (417,277) | $ (418,007) | $ (419,930) |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues | |||
Net premiums earned | $ 818,853 | $ 738,531 | $ 733,281 |
Net investment income | 91,884 | 95,662 | 100,012 |
Equity in earnings (loss) of unconsolidated subsidiaries | 8,948 | 8,033 | (5,762) |
Net realized investment gains (losses): | |||
OTTI losses | (490) | (13,200) | (10,834) |
Portion of OTTI losses recognized in other comprehensive income before taxes | 0 | 248 | 1,068 |
Net impairment losses recognized in earnings | (490) | (12,952) | (9,766) |
Other net realized investment gains (losses) | (42,998) | 29,361 | 44,641 |
Total net realized investment gains (losses) | (43,488) | 16,409 | 34,875 |
Other income | 9,833 | 7,514 | 7,808 |
Total revenues | 886,030 | 866,149 | 870,214 |
Expenses | |||
Net losses and loss adjustment expenses | 593,210 | 469,158 | 443,229 |
Underwriting, policy acquisition and operating expenses | |||
Operating expense | 134,055 | 140,002 | 139,232 |
DPAC Amortization | 104,501 | 95,751 | 88,378 |
Segregated portfolio cells dividend expense (income) | 9,122 | 15,771 | 8,142 |
Interest expense | 16,117 | 16,844 | 15,032 |
Total expenses | 857,005 | 737,526 | 694,013 |
Income before income taxes | 29,025 | 128,623 | 176,201 |
Provision for income taxes | |||
Current expense (benefit) | (6,208) | 19,666 | 16,586 |
Deferred expense (benefit) | (11,824) | 1,693 | 8,534 |
Total income tax expense (benefit) | (18,032) | 21,359 | 25,120 |
Segment operating results | 47,057 | 107,264 | 151,081 |
Other comprehensive income (loss) | (35,238) | (2,488) | (6,456) |
Comprehensive income (loss) | $ 11,819 | $ 104,776 | $ 144,625 |
Earnings per share | |||
Basic (USD per share) | $ 0.88 | $ 2.01 | $ 2.84 |
Diluted (USD per share) | $ 0.88 | $ 2 | $ 2.83 |
Weighted average number of common shares outstanding: | |||
Basic (shares) | 53,598 | 53,393 | 53,216 |
Diluted (shares) | 53,749 | 53,611 | 53,448 |
Cash Dividends Declared, per Share | $ 1.74 | $ 5.93 | $ 5.93 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Operating Activities | |||
Net income | $ 47,057 | $ 107,264 | $ 151,081 |
Adjustments to reconcile income to net cash provided by operating activities: | |||
Depreciation and amortization, net of accretion | 21,255 | 28,796 | 32,789 |
(Increase) decrease in cash surrender value of BOLI | (1,983) | (1,979) | (2,008) |
Net realized investment (gains) losses | 43,488 | (16,409) | (34,875) |
Share-based compensation | 5,321 | 10,615 | 12,455 |
Deferred income tax expense (benefit) | (11,824) | 1,693 | 8,534 |
Policy acquisition costs, net of amortization (net deferral) | (3,855) | (3,452) | (2,421) |
Equity in (earnings) loss of unconsolidated subsidiaries | (8,948) | (8,033) | 5,762 |
Distributed earnings from unconsolidated subsidiaries | 31,219 | 24,392 | 9,863 |
Other | 1,168 | 108 | 1,772 |
Other changes in assets and liabilities: | |||
Premiums receivable | (23,381) | (14,605) | (6,446) |
Reinsurance related assets and liabilities | 4,697 | (56,449) | (26,108) |
Other assets | (4,206) | (792) | 15,665 |
Reserve for losses and loss adjustment expenses | 71,466 | 54,953 | (11,898) |
Unearned premiums | 16,327 | 26,321 | 10,497 |
Other liabilities | (10,536) | 20,965 | 14,321 |
Net cash provided (used) by operating activities | 177,265 | 173,388 | 178,983 |
Purchases of: | |||
Fixed maturities, available for sale | (780,698) | (614,440) | (636,377) |
Fixed maturities, trading | (38,544) | 0 | 0 |
Equity investments | (203,157) | (207,857) | (112,912) |
Other investments | (32,153) | (50,362) | (18,613) |
Funding of qualified affordable housing project tax credit partnerships | 0 | (507) | (1,019) |
Investment in unconsolidated subsidiaries | (78,141) | (42,183) | (50,890) |
Proceeds from sales or maturities of: | |||
Fixed maturities, available for sale | 914,021 | 932,070 | 752,516 |
Equity investments | 210,481 | 146,356 | 85,226 |
Other investments | 29,815 | 25,372 | 13,797 |
Return of invested capital from unconsolidated subsidiaries | 84,534 | 32,539 | 7,084 |
Net sales or maturities (purchases) of short-term investments | 123,886 | 4,167 | (322,872) |
Unsettled security transactions, net change | (4,022) | (2,031) | 1,388 |
Purchases of capital assets | (9,636) | (10,485) | (10,922) |
Repayments (advances) under Syndicate Credit Agreement | (184) | (10,339) | (1,395) |
Other | (1,305) | (2,025) | 6,187 |
Net cash provided (used) by investing activities | 214,897 | 200,275 | (288,802) |
Financing Activities | |||
Borrowings (repayments) under Revolving Credit Agreement | (123,000) | (77,000) | 100,000 |
Proceeds (repayments) of Mortgage Loans | (1,396) | 40,460 | 0 |
Repurchase of common stock | 0 | 0 | (2,106) |
Dividends to shareholders | (316,476) | (315,228) | (118,812) |
Capital contribution received from (return of capital to) external segregated portfolio cell participants | (1,005) | 2,936 | 9,952 |
Other | (4,309) | (7,683) | (2,968) |
Net cash provided (used) by financing activities | (446,186) | (356,515) | (13,934) |
Increase (decrease) in cash and cash equivalents | (54,024) | 17,148 | (123,753) |
Cash and cash equivalents at beginning of period | 134,495 | 117,347 | 241,100 |
Cash and cash equivalents at end of period | 80,471 | 134,495 | 117,347 |
Supplemental Disclosure of Cash Flow Information | |||
Cash paid during the year for income taxes, net of refunds | 5,726 | 17,193 | (8,683) |
Cash paid during the year for interest | 16,165 | 15,892 | 14,732 |
Significant Non-Cash Transactions | |||
Dividends declared and not yet paid | $ 43,446 | $ 267,292 | $ 265,659 |
Accounting Policies
Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
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 and the sole (100%) capital provider of a SPA , Syndicate 6131 at Lloyd's. Risks insured are primarily liability risks located within the U.S. Beginning in the third quarter of 2018, ProAssurance operates in five reportable segments as follows: Specialty P&C , Workers' Compensation Insurance, Segregated Portfolio Cell Reinsurance, Lloyd's Syndicates and Corporate. For more information on the Company's segment reporting, including the nature of products and services provided and financial information by segment, refer to Note 16 . 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 normally reported on a quarter delay due to timing issues regarding the availability of information, except when information is available that is material to the current period. Furthermore, investment results associated with ProAssurance's FAL investments and certain U.S. paid administrative expenses are reported concurrently as that information is available on an earlier time frame. 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 As a result of the third quarter of 2018 segment reorganization, prior year segment information in Note 16 has been recast to conform to the Company's current segment reporting (see Note 16 for further information). Certain other insignificant prior year amounts have been reclassified to conform to the current year presentation. 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, 2018 and 2017 . Neither estimated credit losses nor actual credit write-offs, net of recoveries, exceeded $0.5 million during the years ended December 31, 2018 and 2017 . Earned But Unbilled Premiums Workers’ compensation premiums are determined based upon the payroll of the insured, the applicable premium rates and an experience-based modification factor, where applicable. 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 written and 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 of EBUB premium as of the balance sheet date. Changes to the EBUB estimate are included in net premiums written and earned in the period recognized. As of December 31, 2018 and 2017 , ProAssurance carried EBUB of $4.3 million as a part of premiums receivable. Losses and Loss Adjustment Expenses ProAssurance establishes its reserve for losses and LAE ("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 premium rates, claims frequency and severity, historical paid and incurred loss development trends, the expected effect of inflation, general economic trends, the legal and political environment and the conclusions reached by internal and consulting actuaries. 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 2018 , 2017 and 2016 . 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 the Company offers, to provide protection against losses in excess of policy limits, and, in the case of risk sharing arrangements, to align the Company's objectives with those of its strategic business partners and to provide custom insurance solutions for large customer groups. Receivable from reinsurers on paid losses and LAE is the estimated amount of losses already paid that will be recoverable from reinsurers. Receivable from reinsurers on unpaid losses and LAE 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. Retroactive Insurance Contracts In certain instances, ProAssurance’s insurance contracts cover losses both on a prospective basis and retroactive basis and, accordingly, ProAssurance bifurcates the prospective and retroactive provisions of these contracts and accounts for each component separately, where practicable. Under the retroactive provisions of a contract, all premiums received and losses assumed are recognized immediately in earnings at the inception of the contract as all of the underlying loss events occurred in the past. If the estimated losses assumed differ from the premium received related to the retroactive provision of a contract, the resulting difference is deferred and recognized over the estimated claim payment period with the periodic amortization reflected in earnings as a component of net losses and LAE . Deferred gains are included as a component of the reserve for losses and LAE and deferred losses are included as a component of other assets on the Consolidated Balance Sheet. Subsequent changes to the estimated timing or amount of future loss payments in relation to the losses assumed under retroactive provisions also produce changes in deferred balances. Changes in such estimates are applied retrospectively and the resulting changes in deferred balances, together with periodic amortization, are included in earnings in the period of change. Lloyd’s Premium Estimates For certain insurance policies and reinsurance contracts written in the Lloyd’s Syndicates segment, premiums are initially recognized based upon estimates of ultimate premium. Estimated ultimate premium consists primarily of premium written under delegated underwriting authority arrangements, which consist primarily of binding authorities, and certain assumed reinsurance agreements. These estimates of ultimate premium are judgmental and are dependent upon certain assumptions, including historical premium trends for similar agreements. As reports are received from programs, ultimate premium estimates are revised, if necessary, with changes reflected in current operations. Investments Recurring Fair Value Measurements 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 the Company's 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 investment funds, primarily LP s/ LLC s, based on the NAV of the interest held, as provided by the fund. Nonrecurring Fair Value Measurements Management measures the fair value of certain assets on a nonrecurring basis either quarterly, annually or when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. These assets include investments carried principally at cost, investments in tax credit partnerships and equity method investments that do not provide a NAV , fixed assets, goodwill and other intangible assets. Fixed Maturities Fixed maturities 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 securities are carried at fair value, determined as described above, with the holding gains and losses included as a component of net realized investment gains (losses) during the period of change. Equity Investments Equity investments are carried at fair value, as described above, with the holding gains and losses included as a component of net realized investment gains (losses) during the period of change. Equity investments are primarily comprised of stocks, bond funds and investment funds. 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 carried at fair value which approximates the cost of the securities due to their short-term nature. Other Investments 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. Investments in certain funds measure fund assets at fair value on a recurring basis and provide ProAssurance with a NAV for its interest. As a practical expedient, ProAssurance considers the NAV provided to approximate the fair value of its interest. Changes in fair value are included as a component of net realized investment gains (losses) during the period of change. Investment in Unconsolidated Subsidiaries Equity investments, primarily 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 equity in earnings (loss) of unconsolidated subsidiaries. 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, 2018 and 2017 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; or • 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 as follows: 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 the Company's 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. These factors include, but are not limited to: • ProAssurance's ability and intent to hold the investment until the recovery of its carrying value; and • in situations where there was not a previous OTTI for the investment, whether the current expected cash flows from the investment, primarily tax benefits, are less than those expected at the time the investment was acquired due to various factors, such as a change in the statutory tax rate; or • in situations where there was a previous OTTI for the investment, whether the expected cash flows from the investment at the time of the OTTI, primarily tax benefits, are less than its current carrying value. Investments which are accounted for under the equity method are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value of the investment may not be recoverable. These circumstances include, but are not limited to, evidence of the inability to recover the carrying value of the investment, the inability of the investee to sustain an earnings capacity that would justify the carrying value of the investment or a current fair value of the investment that is less than the carrying value. 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 reasons 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 used to recognize income on the investment balance for subsequent accounting periods. Derivatives ProAssurance records derivative instruments at fair value in the Consolidated Balance Sheets. ProAssurance accounts for the changes in fair value of derivatives depending on whether the derivative is designated as a hedging instrument and if so, the type of hedging relationship. For derivative instruments not designated as hedging instruments, ProAssurance recognizes the change in fair value of the derivative in earnings during the period of change. As of December 31, 2018 , ProAssurance has not designated any derivative instruments as hedging instruments and does not use derivative instruments for trading purposes. Foreign Currency The functional currency of all ProAssurance foreign subsidiaries is the U.S. dollar. In recording foreign currency transactions, revenue and expense items are converted to U.S. dollars at the exchange rate prevailing at the transaction date. Monetary assets and liabilities originating in currencies other than the U.S. dollar are remeasured to U.S. dollars at the rates of exchange in effect as of the balance sheet date. The resulting foreign currency gains or losses are recognized in the Consolidated Statements of Income and Comprehensive Income as a component of other income. Monetary assets and liabilities include investments, cash and cash equivalents, accrued expenses and other liabilities. In addition, monetary assets and liabilities include certain premiums receivable and reserve for losses and LAE as a result of reinsurance transactions conducted with foreign cedants denominated in their local functional currencies. 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. 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 and 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, 2018 or 2017 . 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. A valuation allowance has been established against the full value of the deferred tax asset related to the NOL carryforwards for the U.K. operations as management concluded that it was more likely than not that the deferred tax asset will not be realized. In 2018, ProAssurance also established a valuation allowance against the deferred tax assets of certain SPC s at its newly formed wholly owned Cayman Islands reinsurance subsidiary, Inova Re. As of December 31, 2018 , these newly formed SPC s are in a cumulative pre-tax loss position, and management concluded that a valuation allowance was required based upon the weight of this negative evidence. See further discussion in Note 6 . Changes in tax laws and rates could also affect recorded deferred tax assets and liabilities in the future. On December 22, 2017, the TCJA was signed into law and contains several key provisions that impact ProAssurance, including the reduction of the corporate tax rate to 21% effective January 1, 2018, the reduction in the amount of executive compensation that could qualify as a tax deduction, a minimum tax on payments made to related foreign entities, a change in how property and casualty taxpayers discount loss reserves, a minimum tax on payments made to related foreign entities and a new tax on certain income of controlled foreign corporations. See Note 6 for further discussion of the TCJA . 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 operating expense. Real estate accumulated depreciation was approximately $25.2 million and $24.0 million at December 31, 2018 and 2017 , respectively. Real estate depreciation expense was $1.2 million , $1.1 million and $1.4 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Intangible Assets Intangible assets with definite lives are amortized over the estimated useful life of the asset. Amortizable intangible assets primarily consist of policyholder relationships, renewal rights and trade names. Intangible assets with an indefinite life, primarily state licenses, are not amortized. All intangible assets are evaluated for impairment on an annual basis or upon the occurrence of certain triggering events or substantive changes in circumstances that indicate the fair value of the asset may be impaired. The third quarter 2018 segment reorganization had no impact on how ProAssurance's evaluates intangible assets for impairment. 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) 2018 2017 2018 2017 2018 2017 2016 Intangible Assets Non-amortizable $ 25.8 $ 25.8 Amortizable 97.5 97.5 $ 46.5 $ 40.3 $ 6.2 $ 5.8 $ 8.1 Total Intangible Assets $ 123.3 $ 123.3 Aggregate amortization expense for intangible assets is estimated to be $6.1 million for each of the years ended December 31, 2019 and 2020 and $6.0 million for each of the years ended December 31, 2021 , 2022 and 2023 . Goodwill Goodwill is recognized in conjunction with business acquisitions as the excess of the purchase consideration for the business 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 a business acquisition. Management evaluates goodwill for impairment annually on October 1, upon the occurrence of certain triggering events or substantive changes in circumstances that indicate the fair value of goodwill may be impaired, and immediately before and after a reorganization that affects the composition of one or more of the Company's reporting units. Impairment of goodwill is tested at the reporting unit level, which is consistent with the reportable segments identified in Note 16 . Of the five reporting units, three have goodwill: Specialty P&C, Workers' Compensation Insurance and Segregated Portfolio Cell Reinsurance. Annual Goodwill Impairment Test When testing goodwill for impairment, management has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the estimated fair value of a reporting unit is less than its carrying amount. If management elects to perform a qualitative assessment and determines that an impairment is more likely than not, management is then required to perform the two-step quantitative impairment test, otherwise no further analysis is required. Management also may elect not to perform the qualitative assessment and, instead, proceed directly to the two-step quantitative impairment test. As of the most recent annual evaluation date on October 1, 2018, mana |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and December 31, 2017 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, 2018 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 $ — $ 120,201 $ — $ 120,201 U.S. Government-sponsored enterprise obligations — 35,354 — 35,354 State and municipal bonds — 293,772 — 293,772 Corporate debt, multiple observable inputs 2,319 1,216,834 — 1,219,153 Corporate debt, limited observable inputs — — 4,322 4,322 Residential mortgage-backed securities — 181,238 — 181,238 Agency commercial mortgage-backed securities — 13,108 — 13,108 Other commercial mortgage-backed securities — 30,993 — 30,993 Other asset-backed securities — 191,807 3,850 195,657 Fixed maturities, trading — 38,188 — 38,188 Equity investments Financial 62,344 — — 62,344 Utilities/Energy 46,533 — — 46,533 Consumer oriented 47,462 — — 47,462 Industrial 41,487 — — 41,487 Bond funds 174,753 — — 174,753 All other 50,066 — — 50,066 Short-term investments 265,910 42,409 — 308,319 Other investments — 31,341 3 31,344 Other assets — 1,884 — 1,884 Total assets categorized within the fair value hierarchy $ 690,874 $ 2,197,129 $ 8,175 2,896,178 Assets carried at NAV, which approximates fair value and which are not categorized within the fair value hierarchy, reported as a part of: Equity investments 20,292 Investment in unconsolidated subsidiaries 268,436 Total assets at fair value $ 3,184,906 December 31, 2017 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 $ — $ 133,627 $ — $ 133,627 U.S. Government-sponsored enterprise obligations — 20,956 — 20,956 State and municipal bonds — 632,243 — 632,243 Corporate debt, multiple observable inputs 2,371 1,151,084 — 1,153,455 Corporate debt, limited observable inputs — — 13,703 13,703 Residential mortgage-backed securities — 196,789 1,055 197,844 Agency commercial mortgage-backed securities — 10,742 — 10,742 Other commercial mortgage-backed securities — 15,961 — 15,961 Other asset-backed securities — 97,780 3,931 101,711 Equity investments Financial 76,051 — — 76,051 Utilities/Energy 54,388 — — 54,388 Consumer oriented 54,529 — — 54,529 Industrial 53,936 — — 53,936 Bond funds 156,563 — — 156,563 All other 75,142 — — 75,142 Short-term investments 404,204 27,922 — 432,126 Other investments 607 31,155 409 32,171 Other assets — 1,731 — 1,731 Total assets categorized within the fair value hierarchy $ 877,791 $ 2,319,990 $ 19,098 3,216,879 Assets carried at NAV, which approximates fair value and which are not categorized within the fair value hierarchy, reported as a part of: Investment in unconsolidated subsidiaries 210,759 Other investments 20,130 Total assets at fair value $ 3,447,768 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. There were no material changes to the values supplied by the pricing services during the years ended December 31, 2018 and 2017 . 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, 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 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. Fixed maturities, trading , are held by the Lloyd's Syndicates segment and include U.S. Treasury obligations, U.S. Government-sponsored enterprise obligations, corporate debt with multiple observable inputs and other asset-backed securities. These securities were valued using the respective valuation methodologies discussed above for each security type. Short-term investments were securities maturing within one year, carried at fair value which approximated the cost of the securities due to their short-term nature. 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. Other assets consisted of an interest rate cap derivative instrument, which is discussed in Note 11 , valued using a model which considers the volatilities from other instruments with similar maturities, strike prices, durations and forward yield curves. Level 3 Valuations Below is a summary description of the valuation methodologies used as well as quantitative information regarding securities in the Level 3 category, by security type: Level 3 Valuation Methodologies Corporate debt, 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, 2018 , 54% of the securities were rated and the average rating was BBB+ . At December 31, 2017 , 84% of the securities were rated and the average rating was BBB+ . Residential mortgage-backed and 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. 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, 2018 , 25% of the securities were rated and the average rating was AAA . At December 31, 2017 , 21% of the securities were rated and the average rating was AAA . Other investments consisted of convertible securities for which limited observable inputs were available at December 31, 2018 and December 31, 2017 . 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, 2018 December 31, 2017 Valuation Technique Unobservable Input Range Assets: Corporate debt, limited observable inputs $4,322 $13,703 Market Comparable Comparability Adjustment 0% - 5% (2.5%) Discounted Cash Flows Comparability Adjustment 0% - 5% (2.5%) Residential mortgage-backed and other asset-backed securities $3,850 $4,986 Market Comparable Comparability Adjustment 0% - 5% (2.5%) Discounted Cash Flows Comparability Adjustment 0% - 5% (2.5%) Other investments $3 $409 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, 2018 Level 3 Fair Value Measurements – Assets (In thousands) Corporate Debt Asset-backed Securities Other investments Total Balance December 31, 2017 $ 13,703 $ 4,986 $ 409 $ 19,098 Total gains (losses) realized and unrealized: Included in earnings, as a part of: Net investment income (148 ) 2 — (146 ) Net realized investment gains (losses) (8 ) — (40 ) (48 ) Included in other comprehensive income (233 ) (105 ) — (338 ) Purchases 8,005 20,093 — 28,098 Sales (6,406 ) (438 ) (366 ) (7,210 ) Transfers in 2,627 — — 2,627 Transfers out (13,218 ) (20,688 ) — (33,906 ) Balance December 31, 2018 $ 4,322 $ 3,850 $ 3 $ 8,175 Change in unrealized gains (losses) included in earnings for the above period for Level 3 assets held at period-end $ — $ — $ — $ — December 31, 2017 Level 3 Fair Value Measurements – Assets (In thousands) Corporate Debt Asset-backed Securities Other investments Total Balance December 31, 2016 $ 14,810 $ 3,007 $ 3 $ 17,820 Total gains (losses) realized and unrealized: Included in earnings, as a part of: Net investment income (163 ) — — (163 ) Net realized investment gains (losses) 13 — (143 ) (130 ) Included in other comprehensive income (369 ) (71 ) 140 (300 ) Purchases 13,016 2,627 — 15,643 Sales (4,837 ) — (912 ) (5,749 ) Transfers in 999 — 1,321 2,320 Transfers out (9,766 ) (577 ) — (10,343 ) Balance December 31, 2017 $ 13,703 $ 4,986 $ 409 $ 19,098 Change in unrealized gains (losses) included in earnings for the above period for Level 3 assets held at period-end $ — $ — $ — $ — Transfers 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 2018 and 2017 were to or from Level 2. All transfers during 2018 and 2017 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 At December 31, 2018 and 2017, certain LP s/ LLC s and investment funds measure fund assets at fair value on a recurring basis and provide a NAV for ProAssurance's interest. The carrying value of these interests is based on the NAV provided and was considered to approximate the fair value of the interests. For investment in unconsolidated subsidiaries, ProAssurance recognizes any changes in the NAV of its interests in equity in earnings (loss) of unconsolidated subsidiaries during the period of change. In accordance with GAAP , the fair value of these investments was not classified within the fair value hierarchy. The amount of ProAssurance's unfunded commitments related to these investments as of December 31, 2018 and fair values of these investments as of December 31, 2018 and 2017 was as follows: Unfunded Fair Value (In thousands) December 31, December 31, December 31, Equity investments: Mortgage fund (1)* $ — $ 20,292 $ — Investment in unconsolidated subsidiaries: Private debt funds (2) $ 20,954 18,196 42,206 Long equity fund (3) None 6,561 7,847 Long/short equity funds (4) None 28,805 31,352 Non-public equity funds (5) $ 80,076 114,811 100,062 Multi-strategy fund of funds (6) None 9,322 9,100 Credit funds (7) $ 8,916 29,164 6,561 Long/short commodities fund (8) None 12,958 13,025 Strategy focused funds (9) $ 24,539 48,619 606 268,436 210,759 Other investments: Mortgage fund (1)* See above — 20,130 Total investments carried at NAV $ 288,728 $ 230,889 * In the first quarter of 2018, ProAssurance began presenting this investment previously reported as a part of other investments as a part of equity investments on the Consolidated Balance Sheet. Prior year amounts have not been reclassified. Below is additional information regarding each of the investments listed in the table above as of December 31, 2018 . (1) This investment fund is focused on the structured mortgage market. The fund will primarily invest in U.S. Agency mortgage-backed securities. Redemptions are allowed at the end of any calendar quarter with a prior notice requirement of 65 days and are paid within 45 days at the end of the redemption dealing day. (2) This investment is comprised of interests in three 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 two do 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 three to eight years. (3) This 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. (4) This investment is 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 . (5) This investment is 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, debt including senior, second lien and mezzanine, 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 nine years. (6) 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. (7) This investment is comprised of three unrelated LP funds. Two funds seek to obtain superior risk-adjusted absolute returns through a diversified portfolio of debt securities, including bonds, loans and other asset-backed instruments. The remaining fund seeks event driven opportunities across the corporate credit spectrum. Two funds are allowed redemptions at any quarter-end with a prior notice requirement of 90 days ; one fund permits redemption at any quarter-end with a prior notice requirement of 180 days . (8) 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 one -year lock-up period, redemptions are allowed with a prior notice requirement of 30 days and are payable within 30 days . (9) This investment is comprised of multiple unrelated LPs/LLCs funds. One fund is a LLC focused on investing in North American consumer products companies, comprised of equity and equity-related securities, as well as debt instruments. Redemptions are not permitted. Another fund is a LP focused on North American energy infrastructure assets that allows redemption with consent of the General Partner. The remaining funds are real estate focused LPs, one of which allows for redemption with prior notice. ProAssurance may not sell, transfer or assign its interest in any of the above LP s/ LLC s without special consent from the LP s/ LLC s. Nonrecurring Fair Value Measurement At December 31, 2018 , ProAssurance did not have any assets or liabilities that were measured at fair value on a nonrecurring basis. At December 31, 2017 , ProAssurance held an equity method early stage business investment measured at fair value on a nonrecurring basis due to a recognized OTTI of $8.5 million . The investment was valued using significant unobservable inputs (Level 3) and had a fair value of $1.2 million at December 31, 2017 . The fair value of the investment was measured as ProAssurance's ownership percentage in the projected earnings and cash flows expected to be generated by the investment. Financial Instruments - Methodologies Other Than Fair Value The following table provides the estimated fair value of ProAssurance's 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 primarily fall within the Level 3 fair value category. December 31, 2018 December 31, 2017 (In thousands) Carrying Fair Carrying Fair Financial assets: BOLI $ 64,096 $ 64,096 $ 62,113 $ 62,113 Other investments $ 2,943 $ 2,943 $ 58,546 $ 69,095 Other assets $ 35,921 $ 35,468 $ 34,020 $ 33,742 Financial liabilities: Senior notes due 2023* $ 250,000 $ 264,810 $ 250,000 $ 273,153 Revolving Credit Agreement* $ — $ — $ 123,000 $ 123,000 Mortgage Loans* $ 39,064 $ 39,064 $ 40,460 $ 40,460 Other liabilities $ 21,300 $ 21,300 $ 21,154 $ 21,154 * Carrying value excludes debt issuance costs. 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 FHLB common stock carried at cost and an annuity investment carried at amortized cost. Two of ProAssurance's insurance subsidiaries are members of an FHLB . The estimated fair value of the FHLB common stock was based on the amount the subsidiaries would receive if their memberships were canceled, as the memberships 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. The fair value of the funded deferred compensation assets was based upon quoted market prices, which is categorized as a Level 1 valuation, and had a fair value of $24.1 million and $20.2 million at December 31, 2018 and 2017 , respectively. The deferred compensation liabilities are adjusted to match the fair value of the deferred compensation assets. Other assets also included a secured note receivable and unsecured note receivable under two separate line of credit agreements. Fair value of these notes receivable was based on the present value of expected cash flows from the notes receivable, discounted at market rates on the valuation date for receivables with similar credit standings and similar payment 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, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Available-for-sale fixed maturities at December 31, 2018 and December 31, 2017 included the following: December 31, 2018 (In thousands) Amortized Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Fixed maturities, available for sale U.S. Treasury obligations $ 121,274 $ 331 $ 1,404 $ 120,201 U.S. Government-sponsored enterprise obligations 35,758 25 429 35,354 State and municipal bonds 289,544 4,877 649 293,772 Corporate debt 1,244,577 3,328 24,430 1,223,475 Residential mortgage-backed securities 184,463 814 4,039 181,238 Agency commercial mortgage-backed securities 13,296 12 200 13,108 Other commercial mortgage-backed securities 31,330 38 375 30,993 Other asset-backed securities 196,583 254 1,180 195,657 $ 2,116,825 $ 9,679 $ 32,706 $ 2,093,798 December 31, 2017 (In thousands) Amortized Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Fixed maturities, available for sale U.S. Treasury obligations $ 134,323 $ 485 $ 1,181 $ 133,627 U.S. Government-sponsored enterprise obligations 21,089 73 206 20,956 State and municipal bonds 618,414 14,248 419 632,243 Corporate debt 1,157,660 15,205 5,707 1,167,158 Residential mortgage-backed securities 196,741 2,438 1,335 197,844 Agency commercial mortgage-backed securities 10,827 23 108 10,742 Other commercial mortgage-backed securities 16,004 91 134 15,961 Other asset-backed securities 102,130 47 466 101,711 $ 2,257,188 $ 32,610 $ 9,556 $ 2,280,242 The recorded cost basis and estimated fair value of available-for-sale fixed maturities at December 31, 2018 , 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 $ 121,274 $ 27,187 $ 74,196 $ 18,416 $ 402 $ 120,201 U.S. Government-sponsored enterprise obligations 35,758 3,279 12,301 19,640 134 35,354 State and municipal bonds 289,544 10,506 126,225 129,118 27,923 293,772 Corporate debt 1,244,577 147,223 726,570 324,467 25,215 1,223,475 Residential mortgage-backed securities 184,463 181,238 Agency commercial mortgage-backed securities 13,296 13,108 Other commercial mortgage-backed securities 31,330 30,993 Other asset-backed securities 196,583 195,657 $ 2,116,825 $ 2,093,798 Excluding obligations of the U.S. Government, U.S. Government-sponsored enterprises and a U.S. Government obligations money market fund, no investment in any entity or its affiliates exceeded 10% of shareholders’ equity at December 31, 2018 . Cash and securities with a carrying value of $47.1 million at December 31, 2018 were on deposit with various state insurance departments to meet regulatory requirements. As a member of Lloyd's and a capital provider to Syndicate 1729 and Syndicate 6131, ProAssurance is required to maintain capital at Lloyd's , referred to as FAL . ProAssurance's FAL investments at December 31, 2018 included available-for-sale fixed maturities with a fair value of $123.4 million and short-term investments with a fair value of $19.3 million on deposit with Lloyd's in order to satisfy these FAL requirements. 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, 2018 and December 31, 2017 , including the length of time the investment had been held in a continuous unrealized loss position. December 31, 2018 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 $ 97,969 $ 1,405 $ 20,221 $ 119 $ 77,748 $ 1,286 U.S. Government-sponsored enterprise obligations 33,677 429 20,479 126 13,198 303 State and municipal bonds 63,094 648 30,924 143 32,170 505 Corporate debt 938,651 24,429 447,891 8,804 490,760 15,625 Residential mortgage-backed securities 157,120 4,039 27,311 209 129,809 3,830 Agency commercial mortgage-backed securities 9,822 200 4,566 22 5,256 178 Other commercial mortgage-backed securities 22,924 375 13,348 164 9,576 211 Other asset-backed securities 142,470 1,181 70,218 236 72,252 945 $ 1,465,727 $ 32,706 $ 634,958 $ 9,823 $ 830,769 $ 22,883 December 31, 2017 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 $ 110,788 $ 1,181 $ 67,135 $ 554 $ 43,653 $ 627 U.S. Government-sponsored enterprise obligations 17,032 206 10,182 64 6,850 142 State and municipal bonds 23,122 419 15,168 102 7,954 317 Corporate debt 487,578 5,707 365,541 2,730 122,037 2,977 Residential mortgage-backed securities 109,659 1,335 64,121 402 45,538 933 Agency commercial mortgage-backed securities 4,423 108 2,458 34 1,965 74 Other commercial mortgage-backed securities 12,878 134 7,939 82 4,939 52 Other asset-backed securities 85,358 466 70,924 346 14,434 120 $ 850,838 $ 9,556 $ 603,468 $ 4,314 $ 247,370 $ 5,242 As of December 31, 2018 , excluding U.S. Government or U.S. Government-sponsored enterprise obligations, there were 1,044 debt securities ( 50.6% of all available-for-sale fixed maturity securities held) in an unrealized loss position representing 550 issuers. The greatest and second greatest unrealized loss positions among those securities were approximately $0.6 million and $0.5 million , respectively. The securities were evaluated for OTTI as of December 31, 2018 . As of December 31, 2017 , excluding U.S. Government or U.S. Government-sponsored enterprise obligations, there were 629 debt securities ( 26.5% of all available-for-sale fixed maturity securities held) in an unrealized loss position representing 375 issuers. The greatest and second greatest unrealized loss positions among those securities were approximately $0.4 million and $0.3 million , respectively. The securities were evaluated for OTTI as of December 31, 2017 . Each quarter, ProAssurance performs a detailed analysis for the purpose of assessing whether any of the securities it holds in an unrealized loss position has suffered an OTTI . 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, 2018 , 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, excluding those issued by GNMA , FNMA and FHLMC , held in an unrealized loss position were estimated as part of the December 31, 2018 OTTI 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. Other information regarding sales and purchases of fixed maturity available-for-sale securities is as follows: Year Ended December 31 (In millions) 2018 2017 2016 Proceeds from sales (exclusive of maturities and paydowns) $ 599.6 $ 530.2 $ 361.8 Purchases $ 780.7 $ 614.4 $ 636.4 Equity Investments ProAssurance's equity investments are carried at fair value with changes in fair value recognized in income as a component of net realized investment gains (losses) during the period of change. Equity investments on the Consolidated Balance Sheet as of December 31, 2018 primarily included stocks, bonds and investment funds. Short-term Investments ProAssurance's 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. Short-term investments are carried at fair value which approximates the cost of the securities due to their short-term nature. 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 members of ProAssurance management 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. Net Investment Income Net investment income by investment category was as follows: Year Ended December 31 (In thousands) 2018 2017 2016 Fixed maturities $ 69,515 $ 75,669 $ 85,818 Equities 21,418 17,198 14,887 Short-term investments, including Other 5,649 7,793 3,402 BOLI 1,983 1,979 2,008 Investment fees and expenses (6,681 ) (6,977 ) (6,103 ) Net investment income $ 91,884 $ 95,662 $ 100,012 Investment in Unconsolidated Subsidiaries ProAssurance's investment in unconsolidated subsidiaries were as follows: December 31, 2018 Carrying Value (In thousands) Percentage December 31, December 31, Qualified affordable housing project tax credit partnerships See below $ 65,677 $ 84,607 Other tax credit partnerships See below 3,757 6,118 All other investments, primarily investment fund LPs/LLCs See below 298,323 239,866 $ 367,757 $ 330,591 Qualified affordable housing project 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, less any amortization. ProAssurance's ownership percentage relative to two of the tax credit partnership interests is almost 100% ; these interests had a carrying value of $25.0 million and $32.5 million at December 31, 2018 and 2017 , respectively. ProAssurance's ownership percentage relative to the remaining tax credit partnership interests is less than 20% ; these interests had a carrying value of $40.7 million and $52.1 million at December 31, 2018 and 2017 , respectively. Since ProAssurance has the ability to exert influence over the partnerships but does not control them, all are accounted for using the equity method. See further discussion of the entities in which ProAssurance holds passive interests in Note 14 . Other tax credit partnerships are comprised entirely of investments in historic tax credit partnerships. The historic tax credit partnerships generate investment returns by providing benefits to fund investors in the form of tax credits, tax deductible project operating losses and positive cash flows. The carrying value of these investments reflects ProAssurance's total funded commitments less any amortization. ProAssurance's ownership percentage relative to the historic tax credit partnerships is almost 100% . Since ProAssurance has the ability to exert influence over the partnerships but does not control them, all are accounted for using the equity method. See further discussion of the entities in which ProAssurance holds passive interests in Note 14 . ProAssurance holds interests in investment fund LP s/ LLC s and other equity method investments and LP s/ LLC s which are not considered to be investment funds. ProAssurance's ownership percentage relative to one 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 funds; these investments had a carrying value of $25.9 million at December 31, 2018 and $30.8 million at December 31, 2017 . ProAssurance's ownership percentage relative to the remaining investments and LP s/ LLC s is less than 25% ; these interests had a carrying value of $272.4 million at December 31, 2018 and $209.1 million at December 31, 2017 . ProAssurance does not have the ability to exert control over any of these funds. Equity in Earnings (Loss) of Unconsolidated Subsidiaries Equity in earnings (loss) of unconsolidated subsidiaries included losses from qualified affordable housing project tax credit partnerships and historic tax credit partnerships. Losses recorded reflect ProAssurance's allocable portion of partnership operating losses. Tax credits reduce income tax expense in the period they are recognized. Losses recorded and tax credits recognized related to ProAssurance's tax credit partnership investments were as follows: Year Ended December 31 (In thousands) 2018 2017 2016 Qualified affordable housing project tax credit partnerships Losses recorded $ 18,889 $ 14,297 $ 20,047 Tax credits recognized $ 18,474 $ 17,774 $ 18,531 Historic tax credit partnerships Losses recorded $ 5,434 $ 6,355 $ 4,771 Tax credits recognized $ 2,567 $ 5,337 $ 9,018 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) 2018 2017 2016 Total OTTI losses: State and municipal bonds $ — $ (850 ) $ (100 ) Corporate debt (490 ) (419 ) (7,604 ) Investment in unconsolidated subsidiaries — (11,931 ) — Other investments — — (3,130 ) Portion of OTTI losses recognized in other comprehensive income before taxes: Corporate debt — 248 1,068 Net impairment losses recognized in earnings (490 ) (12,952 ) (9,766 ) Gross realized gains, available-for-sale fixed maturities 5,942 6,653 12,451 Gross realized (losses), available-for-sale fixed maturities (5,799 ) (3,123 ) (7,038 ) Net realized gains (losses), short-term investments (1 ) (2 ) 18 Net realized gains (losses), trading fixed maturities (100 ) — — Net realized gains (losses), equity investments 12,230 10,724 6,632 Net realized gains (losses), other investments 1,340 2,963 1,115 Change in unrealized holding gains (losses), trading fixed maturities (317 ) — — Change in unrealized holding gains (losses), equity investments (52,707 ) 11,243 30,557 Change in unrealized holding gains (losses), convertible securities, carried at fair value (3,849 ) 896 899 Other 263 7 7 Net realized investment gains (losses) $ (43,488 ) $ 16,409 $ 34,875 During 2018, ProAssurance recognized OTTI in earnings of $0.5 million related to debt instruments from two issuers in the energy sector. During 2017, ProAssurance recognized OTTI in earnings of $13.0 million , including an $8.5 million impairment related to an early stage business investment accounted for under the equity method. The impairment charge represented the difference between the investment's carrying value and fair value, which was measured as ProAssurance's ownership percentage in the projected earnings expected to be generated by the investment. In addition, ProAssurance recognized OTTI in earnings of $3.4 million related to qualified affordable housing project tax credit investments. The current estimated tax benefits expected to be received from ProAssurance's allocable portion of the operating losses of the underlying properties have declined, due to the newly enacted corporate tax rate of 21%, as compared to those at the time the investments were acquired. During 2017, ProAssurance also recognized credit-related OTTI of $0.2 million and non-credit OTTI of $0.2 million in OCI , both of which related to corporate bonds. During 2016, ProAssurance recognized OTTI in earnings of $9.8 million , including credit-related OTTI of $5.5 million related to debt instruments from ten issuers in the energy sector. The fair value of the bonds and the credit quality of the issuers had declined during 2016 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 related to certain of these same bonds, as the fair value of the bonds was less than the present value of the expected future cash flows from the securities. 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) 2018 2017 2016 Balance beginning of period $ 1,313 $ 1,158 $ 5,751 Additional credit losses recognized during the period, related to securities for which: No OTTI has been previously recognized — 171 2,398 OTTI has been previously recognized — — 2,154 Reductions due to: Securities sold during the period (realized) (1,220 ) (16 ) (9,145 ) Balance December 31 $ 93 $ 1,313 $ 1,158 |
Retroactive Insurance Contracts
Retroactive Insurance Contracts | 12 Months Ended |
Dec. 31, 2018 | |
Insurance [Abstract] | |
Retroactive Insurance Contracts | Retroactive Insurance Contracts ProAssurance offers custom alternative risk solutions including loss portfolio transfers for large healthcare entities who, most commonly, are exiting a line of business, changing an insurance approach or simply preferring to transfer risk. A loss portfolio transfer is a form of retroactive insurance coverage as the Company is assuming and accepting an entity’s existing open and future claim liabilities through the transfer of the entity’s loss reserves. In the second quarter of 2018, ProAssurance entered into a loss portfolio transfer with a large healthcare organization. Per the agreement, ProAssurance will cover a specific inventory of existing claims as well as provide tail coverage. As the contract included both prospective (tail) coverage and retroactive coverage, ProAssurance bifurcated the provisions of the contract and accounted for each component separately. As of the contract effective date, ProAssurance recognized total net premiums written and earned of $26.6 million , comprised of $7.9 million of prospective coverage and $18.7 million of retroactive coverage, and total net losses and loss adjustment expenses of $25.4 million in the Consolidated Statements of Income and Comprehensive Income for the year ended December 31, 2018 . In addition, ProAssurance recorded a deferred gain of $0.6 million in the reserve for losses and loss adjustment expenses in the second quarter of 2018 representing the excess of premiums received over losses assumed related to the retroactive coverage which is amortized into earnings over the estimated claim payment period. ProAssurance recognized a nominal amount of amortization related to this deferred gain during the year ended December 31, 2018 . For additional information regarding ProAssurance's accounting policy for retroactive insurance contracts, see Note 1 . 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 SAP prescribed or permitted by regulatory authorities. ProAssurance did not use any prescribed or permitted SAP that differed from the NAIC 's SAP at December 31, 2018 , 2017 or 2016 . 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, 2018 , 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 2018 2017 2016 2018 2017 $135 $139 $163 $1,041 $1,175 At December 31, 2018 , $1.3 billion of ProAssurance's consolidated net assets were held at its domestic insurance subsidiaries, of which approximately $128 million are permitted to be paid as dividends over the course of 2019 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. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2018 | |
Insurance [Abstract] | |
Reinsurance | Reinsurance ProAssurance purchases reinsurance from third-party reinsurers and insurance enterprises in order to reduce its net exposure to losses, to provide capacity to write larger limits of liability, to provide reimbursement for losses incurred under the higher limit coverages the Company offers and as a mechanism for providing custom insurance solutions. ProAssurance also uses reinsurance arrangements as a mechanism for sharing risk with insureds or their affiliates. The effects of reinsurance for the years ended December 31, 2018 , 2017 and 2016 were as follows: Year Ended December 31 (In thousands) 2018 2017 2016 Direct $ 910,198 $ 842,968 $ 794,377 Assumed 47,113 31,908 40,637 Ceded (122,397 ) (110,858 ) (96,481 ) Net premiums written $ 834,914 $ 764,018 $ 738,533 Direct $ 903,354 $ 821,249 $ 790,791 Assumed 41,535 27,629 37,805 Ceded (126,036 ) (110,347 ) (95,315 ) Net premiums earned $ 818,853 $ 738,531 $ 733,281 Losses and loss adjustment expenses $ 675,784 $ 592,218 $ 515,242 Reinsurance recoveries (82,574 ) (123,060 ) (72,013 ) Net losses and loss adjustment expenses $ 593,210 $ 469,158 $ 443,229 The receivable from reinsurers on unpaid losses and LAE represents management’s estimated amount of future loss payments 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. Due to changes in management’s estimates of amounts due to reinsurers related to prior accident year loss recoveries, ProAssurance increased premiums ceded by $5.5 million during the year ended December 31, 2018 and reduced premiums ceded by $1.2 million and $7.1 million during the years ended December 31, 2017 and 2016 , respectively. 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, 2018 , the net total amounts due from reinsurers was $340.4 million (receivables related to paid and unpaid losses and LAE and prepaid reinsurance premiums, less reinsurance premiums payable). No single reinsurer had an individual balance which exceeded $36.0 million . At December 31, 2018 reinsurance recoverables totaling approximately $77.1 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, 2018 or 2017 as all reinsurance balances were considered collectible. During the years ended December 31, 2018 and 2016 , no reinsurance balances were written off for credit reasons. During the year ended December 31, 2017 , reinsurance balances written off for credit reasons were nominal in amount. During 2018 , 2017 and 2016, ProAssurance commuted the 2016, 2015 and 2014 calendar year quota share reinsurance arrangements, respectively, between the Specialty P&C segment and Syndicate 1729 which resulted in a net cash receipt of approximately $6.1 million , $6.3 million and $6.8 million , respectively. The commutation s reduced the receivable from reinsurers on unpaid losses and LAE, combined, by approximately $6.7 million , $6.6 million and $7.1 million during the years ended December 31, 2018 , 2017 and 2016, respectively. During 2017, ProAssurance commuted an outstanding DDR reinsurance arrangement with one of its reinsurers which resulted in a net cash receipt of approximately $7.8 million and reduced its receivable from reinsurers on unpaid losses and LAE by approximately $5.4 million . 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. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
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: December 31 (In thousands) 2018 2017 Deferred tax assets Unpaid loss discount $ 30,629 $ 20,368 Unearned premium adjustment 16,620 14,449 Compensation related 9,879 11,467 Unrealized losses on investments, net 4,403 — Basis differentials–investments 912 — Intangibles 433 514 Foreign NOL 6,795 4,116 Total gross deferred tax assets 69,671 50,914 Valuation allowance (7,074 ) (4,116 ) Total deferred tax assets, net of valuation allowance 62,597 46,798 Deferred tax liabilities Deferred policy acquisition costs (9,972 ) (6,333 ) Unpaid loss discount–transition (10,128 ) — Unrealized gains on investments, net — (5,166 ) Fixed assets (542 ) (826 ) Basis differentials–investments — (10,397 ) Intangibles (11,243 ) (12,548 ) Other (1,604 ) (1,598 ) Total deferred tax liabilities (33,489 ) (36,868 ) Net deferred tax assets (liabilities) $ 29,108 $ 9,930 ProAssurance had $34.0 million of available NOL carryforwards at December 31, 2018 related to the Company's U.K. operations which may be carried forward indefinitely. At December 31, 2018 and 2017 , ProAssurance established a deferred tax asset related to the NOL carryforwards of $6.8 million and $4.1 million , respectively. In 2018 and 2017, management evaluated the realizability of the deferred tax asset related to the U.K. NOL carryforwards and concluded that it was more likely than not that the deferred tax asset will not be realized; therefore, a valuation allowance was recorded against the full value of the deferred tax asset related to the U.K. NOL carryforwards in both 2018 and 2017. The increase in the deferred tax asset related to the U.K. NOL carryforwards and the related valuation allowance in 2018 as compared to 2017 of $2.7 million was primarily due to natural catastrophe-related losses recognized in the Lloyd's Syndicates segment during 2018 related to Hurricanes Michael and Florence as well as volcanic eruptions in Hawaii. During 2018, the Company restructured its Cayman Islands operations which resulted in the formation of a new subsidiary, Inova Re. Our deferred tax assets and liabilities include those of the SPCs at Inova Re, net of a valuation allowance of $0.3 million at December 31, 2018 . Due to the limited operations of these newly formed SPCs as of December 31, 2018 , management concluded that a valuation allowance was required. ProAssurance had no available capital loss carryforwards or Alternative Minimum Tax credit carryforwards as of December 31, 2018 . ProAssurance files income tax returns in various states, the U.S. federal jurisdiction and the U.K. ProAssurance had a receivable for U.S. federal and U.K. income taxes of $3.5 million at December 31, 2018 , carried as a part of other assets. At December 31, 2017 , ProAssurance had a liability for U.S. federal and U.K. income taxes of $8.0 million , carried as a part other liabilities. The statute of limitations is now closed for all tax years prior to 2015 . A reconciliation of the beginning and ending amounts of unrecognized tax benefits for 2018 , 2017 and 2016 , were as follows: (In thousands) 2018 2017 2016 Balance at January 1 $ 5,341 $ 8,353 $ 8,195 Increases for tax positions taken during the current year — — 361 (Decreases) for tax positions taken during the current year (777 ) (3,500 ) — (Decreases)/increases for tax positions taken during prior years (800 ) 700 — (Decreases) relating to a lapse of the applicable statute of limitations (163 ) (212 ) (203 ) Balance at December 31 $ 3,601 $ 5,341 $ 8,353 At December 31, 2018 and 2017 , approximately $1.2 million and $1.3 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, 2018 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 was nominal for the year ended December 31, 2018 and was approximately $0.3 million and $0.2 million for the years ended December 31, 2017 and 2016 , respectively. The accrued liability for interest was approximately $0.6 million at December 31, 2018 and $0.5 million at December 31, 2017 . Income tax expense (benefit) for each of the years ended December 31, 2018 , 2017 and 2016 consisted of the following: (In thousands) 2018 2017 2016 Provision for income taxes Current expense (benefit) Federal and foreign $ (6,509 ) $ 19,546 $ 15,857 State 301 120 729 Total current expense (benefit) (6,208 ) 19,666 16,586 Deferred expense (benefit) Federal and foreign (11,765 ) 1,331 8,284 State (59 ) 362 250 Total deferred expense (benefit) (11,824 ) 1,693 8,534 Total income tax expense (benefit) $ (18,032 ) $ 21,359 $ 25,120 A reconciliation of “expected” income tax expense (benefit) (21% of income before income taxes for 2018; 35% of income before income taxes for 2017 and 2016) to actual income tax expense (benefit) for each of the years ended December 31, 2018 , 2017 and 2016 were as follows: (In thousands) 2018 2017 2016 Computed “expected” tax expense $ 6,095 $ 45,018 $ 61,670 Tax-exempt income (2,505 ) (8,356 ) (9,917 ) Tax credits (21,059 ) (23,111 ) (27,549 ) Non-U.S. operating results 2,269 918 (1,688 ) Excess tax benefit on share-based compensation (275 ) (2,762 ) — Change in federal corporate tax rate — 6,541 — Change in limitation of future deductibility of certain executive compensation — 3,497 — Provision-to-return differences (2,309 ) (1,979 ) 1,209 Other (248 ) 1,593 1,395 Total income tax expense (benefit) $ (18,032 ) $ 21,359 $ 25,120 Tax Cuts and Jobs Act The TCJA was signed into law on December 22, 2017 and contains several key provisions that impact the Company's business, including the reduction of the U.S. federal corporate tax rate from 35% to 21% effective January 1, 2018, the reduction in the amount of executive compensation that could qualify as a tax deduction, a change in how property and casualty taxpayers discount loss reserves, a minimum tax on payments made to related foreign entities and a new tax on certain income of controlled foreign corporations. Effective January 1, 2018, the TCJA introduced a minimum tax on payments made to related foreign entities referred to as the BEAT . The BEAT is imposed by adding back into the U.S. tax base any base erosion payment made by the U.S. taxpayer to a related foreign entity and applying a minimum tax rate to this newly calculated modified taxable income. Base erosion payments represent any amount paid or accrued by the U.S. taxpayer to a related foreign entity for which a deduction is allowed. Premiums the Company cedes to the SPC s at its newly formed wholly owned Cayman Islands reinsurance subsidiary, Inova Re , do not fall within the scope of base erosion payments as the SPC s at Inova Re intend to elect to be taxed as U.S. taxpayers. However, premiums the Company cedes to any active SPC at its wholly owned Cayman Islands reinsurance subsidiary, Eastern Re , fall within the scope of base erosion payments and therefore could be significantly impacted by the BEAT . See further discussion on the Company’s new subsidiary, Inova Re , and its Cayman Islands SPC operations in Note 16 . Management has evaluated its exposure to the BEAT and has concluded that the Company’s expected outbound deductible payments to related foreign entities are below the threshold for application of the BEAT; therefore, ProAssurance has not recognized any incremental tax expense for the BEAT provision of the TCJA for the year ended December 31, 2018 . The TCJA also requires a U.S. shareholder of a controlled foreign corporation to include its GILTI in U.S. taxable income. The GILTI amount is based on the U.S. shareholder’s aggregate share of the gross income of the controlled foreign corporation reduced by certain exceptions and a net deemed tangible income return. The net deemed tangible income return is based on the controlled foreign corporation’s basis in the tangible depreciable business property. Cell rental fee income earned by Inova Re and Eastern Re fall within the scope of the GILTI provisions of the TCJA . Management has evaluated the new GILTI provisions of the TCJA and has made an accounting policy election to treat the taxes due on inclusions of GILTI in U.S. taxable income as a current period expense when incurred. Under current accounting guidance, the effects of changes in tax rates and laws are recognized in the period in which the new legislation is enacted. However, due to the timing of the enactment of the TCJA and its proximity to December 31, 2017, the SEC issued SAB 118 which provided a framework for companies to account for uncertainties in applying the provisions of the TCJA . SAB 118 allowed companies to record a provisional amount in situations where a company did not have the necessary information available but could make a reasonable estimate. In situations where companies could not make a reasonable estimate due to various factors, including lack of information, a provisional amount was not recorded. Instead, companies continued to apply current accounting guidance based on the provision of the tax laws that were in effect immediately prior to the TCJA being enacted. The measurement period, as defined in SAB 118 for the TCJA , began on the enactment date of the TCJA and ended when a company obtained, prepared and analyzed the information that was needed in order to complete the accounting requirements under current accounting guidance. However, under no circumstances would the measurement period extend beyond one year from the enactment date of the TCJA . Other than the areas discussed below, ProAssurance was able to complete its accounting for all areas of the TCJA during the period of enactment and recognized a charge of $6.5 million , which was included as a component of income tax expense from continuing operations for the year ended December 31, 2017. Provisional amount finalized during the third quarter of 2018 The TCJA placed limitations on the future deductibility of certain executive compensation. At December 31, 2017, the IRS had not yet issued guidance in this area, and thus ProAssurance made a reasonable estimate of the effects on its existing deferred tax balances related to executive compensation at that time and recorded a provisional charge of $3.5 million to income tax expense from continuing operations for the year ended December 31, 2017. During the third quarter of 2018, the IRS issued guidance addressing the effects of the TCJA on executive compensation; therefore, ProAssurance was able to complete its accounting for the impact of the TCJA on its December 31, 2017 deferred tax balances related to executive compensation. As a result, ProAssurance did not record any measurement-period adjustments to the previously recorded provisional amount. Provisional amounts finalized during the fourth quarter of 2018 In computing taxable income, property and casualty insurance companies reduce their premiums earned by losses incurred. The tax deduction for losses incurred is discounted using interest rates and factors prescribed by the IRS . The TCJA modified the rules for discounting losses incurred by changing the definition of the applicable interest rate that is used and amending the time periods for the loss payment pattern. These new provisions are effective for tax years beginning after December 31, 2017 and are subject to a transition rule. At December 31, 2017, the IRS had not yet released the information necessary for the Company to determine a reasonable estimate for the tax effects of the TCJA on its deferred tax balances related to loss reserve discounting; therefore, no provisional amount was recorded at that time. During the fourth quarter of 2018, ProAssurance was able to complete its analysis during the measurement period following the release of new discount factors by the IRS on December 19, 2018. ProAssurance used the new discount factors to determine the impact of the TCJA on its deferred tax balances related to loss reserve discounting. The adjustment, which is referred to as the transition rule adjustment, will be reflected as a component of taxable income evenly over eight years beginning in 2018. This transition rule adjustment is a taxable temporary difference and has no impact on total tax expense for the current year. The ultimate impact of the TCJA on the Company's deferred tax balances for loss reserve discounting could differ, perhaps materially, if the IRS publishes any future revisions to the loss discount factors used in its analysis. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 12 Months Ended |
Dec. 31, 2018 | |
Insurance [Abstract] | |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs Policy acquisition costs that are incremental 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 $104.5 million , $95.8 million and $88.4 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. |
Reserve for Losses and Loss Adj
Reserve for Losses and Loss Adjustment Expenses | 12 Months Ended |
Dec. 31, 2018 | |
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. For a high proportion of the risks insured or reinsured by ProAssurance, 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. IBNR reserves are not estimated directly, but are calculated by subtracting claim payments to-date and case reserves as of the evaluation date from the projected ultimate losses which are determined as described below. 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 based on partitions which include line of business, geography, coverage layer and accident year. The procedure uses the most representative data for each partition, capturing its unique patterns of development and trends. In all, there are over 200 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 line of business in both the Workers' Compensation Insurance and Segregated Portfolio Cell Reinsurance segments, ProAssurance utilizes the Reported Development Method, Paid Loss Development Method 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 Syndicates segment business, given the immaturity of Syndicate 1729 and Syndicate 6131’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 loss experience becomes more credible from a statistical perspective, 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) 2018 2017 2016 Balance, beginning of year $ 2,048,381 $ 1,993,428 $ 2,005,326 Less reinsurance recoverables on unpaid losses and loss adjustment expenses 335,585 273,475 249,350 Net balance, beginning of year 1,712,796 1,719,953 1,755,976 Net losses: Current year* 685,326 603,518 587,007 Favorable development of reserves established in prior years, net (92,116 ) (134,360 ) (143,778 ) Total 593,210 469,158 443,229 Paid related to: Current year (117,268 ) (106,633 ) (96,190 ) Prior years (412,711 ) (369,682 ) (383,062 ) Total paid (529,979 ) (476,315 ) (479,252 ) Net balance, end of year 1,776,027 1,712,796 1,719,953 Plus reinsurance recoverables on unpaid losses and loss adjustment expenses 343,820 335,585 273,475 Balance, end of year $ 2,119,847 $ 2,048,381 $ 1,993,428 * Current year net losses in 2018 included incurred losses of $25.4 million related to a loss portfolio transfer entered into during the second quarter of 2018 (see Note 4). 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 2018 primarily reflected a lower than anticipated claims severity trend (i.e. the average size of a claim) for accident years 2011 through 2014 . The favorable development recognized in 2017 and 2016 was primarily due to lower than anticipated claims severity trends for accident years 2010 through 2014 and accident years 2009 through 2013 , respectively. On 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 insurance reserve, segregated portfolio cell reinsurance - workers' compensation reserve, Syndicate 1729 casualty reserve, Syndicate 1729 property insurance reserve and Syndicate 1729 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 reserves in the Workers' Compensation Insurance and the Segregated Portfolio Cell Reinsurance segment are each 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. The small amount of HCPL reserves in the Segregated Portfolio Cell Reinsurance segment are included in other short-duration lines. Finally, claims arising from the Company's involvement in Syndicate 1729 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 Syndicate 1729. The small amount of reserves associated with Syndicate 6131 related to contingency and special property business are included in other short-duration lines. 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 insurance and segregated portfolio cell workers' compensation reinsurance lines of business, virtually all other acquired entities are captured within the HCPL line of business. All information prior to 2018 disclosed in the Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance, Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance and Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance tables that follow is presented as supplementary information. The “Cumulative Number of Reported Claims” in the tables that follow includes the combined number of claims for an accident year and excludes projected unreported IBNR claims. A claim is considered reported when ProAssurance becomes aware of and accepts it for coverage under the terms of the Company's insurance contracts. 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 HCPL business has approximated 90% for recent years, which is higher than the underlying expected loss ratio due to provisions for loss volatility. Changes in observed claim frequency, severity or a combination of the two can result in variations in loss provisions. The reasons for the variability in loss provisions from period to period have included additional loss activity within ProAssurance’s excess and surplus lines business, provisions for losses in excess of policy limits, adjustments to ULAE, 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, 2018 ($ in thousands) Year Ended December 31, IBNR* Cumulative Number of Reported Claims 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Accident Year Unaudited 2009 $ 379,259 $ 370,642 $ 345,714 $ 320,368 $ 284,511 $ 265,478 $ 246,146 $ 230,849 $ 224,768 $ 220,703 $ (455 ) 3,828 2010 — $ 364,996 $ 354,787 $ 338,170 $ 312,813 $ 291,553 $ 279,713 $ 270,484 $ 258,466 257,714 $ (243 ) 3,847 2011 — — $ 348,916 $ 344,808 $ 331,884 $ 305,540 $ 289,400 $ 278,258 $ 264,777 254,329 $ (2,091 ) 3,532 2012 — — — $ 341,289 $ 324,418 $ 319,613 $ 306,956 $ 291,075 $ 279,589 271,110 $ 276 3,702 2013 — — — — $ 315,346 $ 304,209 $ 296,550 $ 287,140 $ 272,364 258,251 $ 173 3,783 2014 — — — — — $ 290,020 $ 289,397 $ 280,043 $ 267,442 256,968 $ (5,200 ) 3,320 2015 — — — — — — $ 276,492 $ 269,980 $ 271,138 270,814 $ (8,030 ) 3,266 2016 — — — — — — — $ 271,765 $ 274,643 287,551 $ (21,456 ) 3,481 2017 — — — — — — — — $ 283,746 295,883 $ (11,228 ) 3,677 2018 — — — — — — — — — 320,772 $ 129,334 3,558 Total $ 2,694,095 * Includes expected development on reported claims Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (In thousands) Year Ended December 31, 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Accident Year Unaudited 2009 $ 15,051 $ 71,272 $ 114,318 $ 153,563 $ 178,445 $ 191,420 $ 200,425 $ 205,372 $ 209,016 $ 213,568 2010 — $ 15,464 $ 69,551 $ 137,712 $ 180,432 $ 209,777 $ 221,693 $ 236,171 $ 240,945 243,675 2011 — — $ 14,417 $ 71,208 $ 133,004 $ 177,089 $ 198,112 $ 214,502 $ 224,982 233,103 2012 — — — $ 15,382 $ 73,571 $ 145,488 $ 190,997 $ 215,220 $ 231,652 244,512 2013 — — — — $ 16,938 $ 69,657 $ 127,496 $ 171,681 $ 197,265 213,879 2014 — — — — — $ 16,764 $ 59,485 $ 116,791 $ 154,236 186,239 2015 — — — — — — $ 9,172 $ 55,731 $ 111,741 161,896 2016 — — — — — — — $ 9,027 $ 51,869 109,756 2017 — — — — — — — — $ 16,309 63,171 2018 — — — — — — — — — 14,051 Total 1,683,850 All outstanding liabilities before 2009, net of reinsurance 11,724 Liabilities for losses and loss adjustment expenses, net of reinsurance $ 1,021,969 Healthcare Professional Liability Occurrence Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2018 ($ in thousands) Year Ended December 31, IBNR* Cumulative Number of Reported Claims 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Accident Year Unaudited 2009 $ 34,450 $ 35,366 $ 36,802 $ 37,437 $ 34,099 $ 32,675 $ 28,731 $ 26,340 $ 24,572 $ 23,387 $ 1,519 246 2010 — $ 41,721 $ 43,238 $ 43,195 $ 42,233 $ 37,920 $ 35,831 $ 33,361 $ 29,338 26,501 $ 946 290 2011 — — $ 45,882 $ 44,956 $ 41,453 $ 39,917 $ 37,150 $ 35,004 $ 32,343 29,784 $ 2,136 342 2012 — — — $ 45,703 $ 46,513 $ 44,848 $ 40,692 $ 34,774 $ 32,691 29,857 $ 3,816 399 2013 — — — — $ 32,746 $ 36,602 $ 35,624 $ 34,393 $ 30,906 26,919 $ 971 356 2014 — — — — — $ 30,420 $ 29,918 $ 32,143 $ 29,869 25,885 $ 2,778 355 2015 — — — — — — $ 35,648 $ 35,347 $ 37,346 40,960 $ 4,667 355 2016 — — — — — — — $ 29,609 $ 28,790 27,240 $ 6,244 322 2017 — — — — — — — — $ 24,571 23,760 $ 19,890 270 2018 — — — — — — — — — 38,420 $ 36,196 118 Total $ 292,713 * Includes expected development on reported claims Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (In thousands) Year Ended December 31, 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Accident Year Unaudited 2009 $ 175 $ 2,255 $ 5,067 $ 7,947 $ 10,823 $ 13,248 $ 15,380 $ 16,025 $ 16,270 $ 17,022 2010 — $ 285 $ 1,881 $ 5,647 $ 9,120 $ 15,147 $ 21,837 $ 22,804 $ 23,313 23,832 2011 — — $ 291 $ 2,803 $ 8,059 $ 16,544 $ 19,197 $ 21,416 $ 23,194 24,539 2012 — — — $ 363 $ 2,430 $ 7,705 $ 12,212 $ 19,275 $ 21,435 23,095 2013 — — — — $ 369 $ 3,170 $ 7,826 $ 14,753 $ 16,787 18,949 2014 — — — — — $ 394 $ 2,260 $ 7,460 $ 10,519 14,604 2015 — — — — — — $ (350 ) $ 786 $ 4,854 11,626 2016 — — — — — — — $ (182 ) $ (195 ) 2,883 2017 — — — — — — — — $ (6,809 ) (5,858 ) 2018 — — — — — — — — — 65 Total 130,757 All outstanding liabilities before 2009, net of reinsurance 7,985 Liabilities for losses and loss adjustment expenses, net of reinsurance $ 169,941 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 5.4% 19.5% 22.8% 17.0% 10.4% 5.9% 4.6% 2.4% 1.4% 2.1% Healthcare Professional Liability Occurrence (2.3%) 6.1% 15.0% 17.6% 15.2% 11.7% 6.1% 3.1% 1.5% 3.2% 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, 2018 ($ in thousands) Year Ended December 31, IBNR* Cumulative Number of Reported Claims 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Accident Year Unaudited 2009 $ 30,462 $ 31,183 $ 27,523 $ 26,181 $ 23,425 $ 21,733 $ 20,551 $ 19,264 $ 18,176 $ 17,984 $ 251 699 2010 — $ 26,077 $ 27,063 $ 25,175 $ 23,307 $ 19,315 $ 17,439 $ 16,047 $ 16,878 18,611 $ 402 498 2011 — — $ 17,249 $ 20,930 $ 19,166 $ 15,836 $ 13,794 $ 12,487 $ 12,358 8,202 $ 500 521 2012 — — — $ 11,162 $ 9,989 $ 8,906 $ 7,441 $ 5,824 $ 4,797 5,051 $ 732 220 2013 — — — — $ 9,807 $ 9,955 $ 9,536 $ 7,226 $ 4,697 3,566 $ 380 218 2014 — — — — — $ 9,989 $ 10,306 $ 9,012 $ 8,984 7,679 $ 2,544 272 2015 — — — — — — $ 9,376 $ 8,757 $ 7,193 5,929 $ 2,770 155 2016 — — — — — — — $ 9,200 $ 8,467 7,413 $ 3,482 180 2017 — — — — — — — — $ 11,049 10,143 $ 7,834 95 2018 — — — — — — — — — 10,141 $ 9,818 188 Total $ 94,719 * Includes expected development on reported claims Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (In thousands) Year Ended December 31, 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Accident Year Unaudited 2009 $ 116 $ 5,071 $ 7,742 $ 14,675 $ 14,933 $ 15,097 $ 15,184 $ 15,186 $ 16,515 $ 17,522 2010 — $ 485 $ 3,557 $ 8,491 $ 12,283 $ 11,725 $ 12,146 $ 12,253 $ 15,366 17,660 2011 — — $ 118 $ 2,034 $ 3,846 $ 5,062 $ 7,376 $ 7,240 $ 7,799 7,664 2012 — — — $ 568 $ 1,520 $ 2,805 $ 3,247 $ 3,366 $ 3,676 3,800 2013 — — — — $ 102 $ 1,029 $ 1,967 $ 2,599 $ 3,092 3,102 2014 — — — — — $ 388 $ 1,527 $ 2,564 $ 3,046 3,724 2015 — — — — — — $ 25 $ 440 $ 1,625 2,097 2016 — — — — — — — $ 53 $ 1,690 2,365 2017 — — — — — — — — $ 56 1,681 2018 — — — — — — — — — 6 Total 59,621 All outstanding liabilities before 2009, net of reinsurance 1,101 Liabilities for losses and loss adjustment expenses, net of reinsurance $ 36,199 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 2.6 % 19.1 % 19.7 % 16.4 % 8.6 % 1.6 % 2.6 % 5.0 % 9.9 % 5.6 % Workers' Compensation Insurance Reserve Many factors affect the ultimate losses incurred for the workers' compensation coverages in the Workers' Compensation Insurance segment 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. Workers' Compensation Insurance Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2018 ($ in thousands) Year Ended December 31, IBNR* Cumulative Number of Reported Claims 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Accident Year Unaudited 2009 $ 45,354 $ 45,354 $ 45,354 $ 45,354 $ 47,811 $ 48,372 $ 47,905 $ 47,480 $ 47,480 $ 47,480 $ 80 10,129 2010 — $ 55,852 $ 55,852 $ 55,852 $ 54,837 $ 54,779 $ 55,200 $ 54,600 $ 54,600 54,600 $ 58 12,913 2011 — — $ 65,665 $ 65,783 $ 71,521 $ 72,280 $ 72,420 $ 72,495 $ 72,795 72,795 $ 354 15,244 2012 — — — $ 80,285 $ 76,551 $ 75,848 $ 76,357 $ 75,836 $ 75,636 75,136 $ 724 16,204 2013 — — — — $ 86,973 $ 85,935 $ 86,928 $ 88,010 $ 88,810 88,810 $ 1,017 16,429 2014 — — — — — $ 93,019 $ 93,529 $ 93,029 $ 92,229 92,229 $ 3,350 16,210 2015 — — — — — — $ 100,101 $ 100,454 $ 98,454 97,654 $ 8,522 16,548 2016 — — — — — — — $ 101,348 $ 97,348 92,148 $ 13,540 15,972 2017 — — — — — — — — $ 99,874 99,874 $ 12,489 16,058 2018 — — — — — — — — — 118,095 $ 32,816 17,556 Total $ 838,821 * Includes expected development on reported claims Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (In thousands) Year Ended December 31, 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Accident Year Unaudited 2009 $ 14,701 $ 31,465 $ 39,351 $ 43,436 $ 45,689 $ 46,321 $ 46,928 $ 47,012 $ 47,089 $ 47,189 2010 — $ 20,086 $ 39,098 $ 46,762 $ 51,117 $ 52,530 $ 53,443 $ 53,734 $ 53,974 54,014 2011 — — $ 21,993 $ 50,900 $ 62,307 $ 67,945 $ 70,146 $ 70,934 $ 71,662 71,856 2012 — — — $ 27,448 $ 56,122 $ 65,908 $ 70,558 $ 72,766 $ 73,662 73,676 2013 — — — — $ 30,554 $ 63,825 $ 76,813 $ 82,369 $ 85,689 86,783 2014 — — — — — $ 30,368 $ 65,922 $ 77,631 $ 85,022 87,314 2015 — — — — — — $ 32,078 $ 65,070 $ 78,947 83,483 2016 — — — — — — — $ 28,377 $ 58,192 69,237 2017 — — — — — — — — $ 31,586 70,333 2018 — — — — — — — — — 41,619 Total 685,504 All outstanding liabilities before 2009, net of reinsurance 2,208 Liabilities for losses and loss adjustment expenses, net of reinsurance $ 155,525 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 Insurance 33.2 % 36.5 % 14.1 % 7.1 % 3.3 % 1.3 % 0.7 % 0.3 % 0.1 % 0.2 % Segregated Portfolio Cell Reinsurance - Workers' Compensation Reserve The Company estimates and reserves for the workers' compensation business assumed by the Segregated Portfolio Cell Reinsurance segment in the same manner as for its workers' compensation business in the Workers' Compensation Insurance segment, as previously discussed. Segregated Portfolio Cell Reinsurance - Workers' Compensation Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2018 ($ in thousands) Year Ended December 31, IBNR* Cumulative Number of Reported Claims 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Accident Year Unaudited 2009 $ 17,790 $ 16,337 $ 15,886 $ 15,948 $ 15,809 $ 15,695 $ 15,618 $ 15,277 $ 15,277 $ 15,279 $ 107 2,962 2010 — $ 19,767 $ 18,265 $ 17,715 $ 17,825 $ 17,736 $ 17,541 $ 17,320 $ 17,278 17,224 $ 275 2,914 2011 — — $ 18,790 $ 19,360 $ 19,629 $ 19,282 $ 18,644 $ 18,725 $ 18,666 18,606 $ 363 3,154 2012 — — — $ 22,940 $ 21,513 $ 21,048 $ 20,028 $ 19,972 $ 19,864 19,799 $ 441 3,454 2013 — — — — $ 23,809 $ 25,310 $ 26,758 $ 26,619 $ 26,260 26,033 $ 544 3,723 2014 — — — — — $ 28,248 $ 28,423 $ 29,000 $ 28,373 28,281 $ 942 4,433 2015 — — — — — — $ 36,423 $ 32,519 $ 28,746 27,548 $ 1,601 4,949 2016 — — — — — — — $ 37,601 $ 34,055 30,998 $ 2,528 5,326 2017 — — — — — — — — $ 42,725 38,594 $ 7,314 5,699 2018 — — — — — — — — — 43,654 $ 18,788 6,228 Total $ 266,016 * Includes expected development on reported claims Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (In thousands) Year Ended December 31, 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Accident Year Unaudited 2009 $ 5,000 $ 10,782 $ 13,202 $ 14,660 $ 14,881 $ 14,954 $ 15,147 $ 15,165 $ 15,166 $ 15,172 2010 — $ 6,503 $ 12,904 $ 15,087 $ 16,214 $ 16,757 $ 16,842 $ 16,810 $ 16,850 16,904 2011 — — $ 5,940 $ 14,045 $ 17,197 $ 17,869 $ 18,054 $ 18,177 $ 18,176 18,185 2012 — — — $ 7,808 $ 14,740 $ 17,728 $ 18,474 $ 19,208 $ 19,402 19,328 2013 — — — — $ 8,131 $ 19,054 $ 24,268 $ 25,209 $ 25,366 25,489 2014 — — — — — $ 9,933 $ 21,880 $ 26,173 $ 26,810 26,959 2015 — — — — — — $ 11,257 $ 21,706 $ 23,977 24,781 2016 — — — — — — — $ 10,980 $ 23,003 26,285 2017 — — — — — — — — $ 12,404 24,791 2018 — — — — — — — — — 12,517 Total 210,411 All outstanding liabilities before 2009, net of reinsurance 912 Liabilities for losses and loss adjustment expenses, net of reinsurance $ 56,517 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Unaudited Segregated Portfolio Cell Reinsurance - Workers' Compensation 34.5 % 38.5 % 14.3 % 4.6 % 1.7 % 0.6 % 0.2 % 0.1 % 0.2 % — % Syndicate 1729 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 Syndicates 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 1729's 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 Syndicate 1729 Casualty and Syndicate 1729 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 th |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
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 . On occasion, ProAssurance has entered into financial instrument transactions that may present off-balance sheet credit risk or market risk. These transactions include a short-term loan commitment and commitments to provide funding to non-public investment entities. Under the short-term loan commitment, ProAssurance has agreed to advance funds on a 30 day basis to a counterparty provided there is no violation of any condition established in the contract. ProAssurance had total funding commitments of approximately $297.8 million which primarily represented funding commitments related to non-public investment entities as well as the short-term loan commitment which included the amount at risk if the full short-term loan is extended and the counterparties default. However, the credit risk associated with the short-term loan commitment is minimal as the counterparties to the contract are highly rated commercial institutions and to-date have been performing in accordance with their contractual obligations. Of these total funding commitments, $1.0 million is related to qualified affordable housing project tax credit investments and is expected to be paid as follows: $0.2 million in 2019, $0.3 million in 2020 and 2021 combined, $0.4 million in 2022 and 2023 combined and $0.1 million thereafter. As a member of Lloyd's , ProAssurance is required to provide capital to support its Lloyd's Syndicates through 2019 of up to $200.0 million , referred to as FAL . The Board, through a non-binding resolution, extended this commitment through 2022. At December 31, 2018 , ProAssurance's FAL was comprised of investment securities on deposit with Lloyd's with a carrying value of $142.7 million (see Note 3 ). 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 £20.0 million to £30.0 million under an amended Syndicate Credit Agreement executed in February 2018. 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, 2018 , the unused commitment under the Syndicate Credit Agreement approximated £7.1 million (approximately $9.1 million ). In January 2019, the Syndicate Credit Agreement was amended to extend the current maturity to December 31, 2020 and to implement an annual auto-renewal feature which allows for ProAssurance to elect to non-renew if notice is given at least 30 days prior to the next auto-renewal date, which is one year prior to the maturity date. In October 2018, ProAssurance entered into an agreement with a company to provide data analytics services for certain product lines within the Company's HCPL book of business. The agreement contains a minimum two year commitment with optional extension features for an annual fee of approximately $4.8 million per year with additional variable quarterly incentive fees based on service utilization metrics prescribed in the contract. ProAssurance incurred operating expense associated with this agreement of $1.0 million in the fourth quarter of 2018 and as of December 31, 2018 , the remaining commitment under this agreement was approximately $8.6 million . ProAssurance is involved in a number of operating leases, primarily for office space. 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, 2018 . Operating Leases (In thousands) 2019 $ 4,829 2020 4,020 2021 3,557 2022 2,618 2023 1,888 Thereafter 10,212 Total minimum lease payments $ 27,124 ProAssurance incurred rent expense of $7.9 million , $6.7 million and $5.9 million in the years ended December 31, 2018 , 2017 and 2016 , respectively. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
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 were fully secured and carried at a weighted average interest rate of 1.91%. The interest rate on borrowings is set at the time the respective borrowing is initiated or renewed. — 123,000 Mortgage Loans, outstanding borrowings are secured by first priority liens on two office buildings, and bear an interest rate of three-month LIBOR plus 1.325% (4.10% and 2.86%, respectively) determined on a quarterly basis. 39,064 40,460 Total principal 289,064 413,460 Less debt issuance costs 1,307 1,649 Debt less debt issuance costs $ 287,757 $ 411,811 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 0.4% 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 0.125% to 0.25% 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 1.63% , 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 , 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 0.5% or (3) the one month LIBOR plus 1.0% , 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 support for other activities. Mortgage Loans During 2017, two of ProAssurance's subsidiaries each entered into ten -year mortgage loans collectively totaling $40.5 million (Mortgage Loans) with one lender in connection with the recapitalization of two office buildings. The Mortgage Loans, which mature in December 2027 , accrue interest at three-month LIBOR plus 1.325% with principal and interest payable on a quarterly basis. To manage the Company's exposure to increases in LIBOR on the Mortgage Loans, ProAssurance entered into an interest rate cap agreement with a notional amount of $35.0 million . Per the interest rate cap agreement, the Company is entitled to receive cash payments if and when the three-month LIBOR exceeds 2.35% . Additional information on the Company's derivative instruments is provided in Note 11 . The Mortgage Loans contain customary representations, covenants and events constituting default, and remedies for default. Additionally, the Mortgage Loans carry the following financial covenant: (1) Each of the two ProAssurance subsidiaries are not permitted to have a leverage ratio of Consolidated Funded Debt (principally, obligations for borrowed money, obligations for deferred purchase price of property or services, obligations evidenced by notes, bonds, debentures, standby and commercial Letters of Credit and contingent obligations of the subsidiary) to Consolidated Total Capitalization (principally, SAP Consolidated Net Worth plus Consolidated Funded Debt of the subsidiary) greater than 0.35 , determined at the end of each fiscal quarter. At December 31, 2018 , contractual maturities of the Mortgages Loans for each of the next five years, excluding interest payments, are as follows: (In thousands) Principal Payments Due by Period 2019 $ 1,448 2020 1,503 2021 1,559 2022 1,617 2023 1,677 Thereafter 31,260 Total principal payments $ 39,064 Covenant Compliance ProAssurance is currently in compliance with all covenants. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives ProAssurance is exposed to certain risks relating to its ongoing business and investment activities. ProAssurance utilizes derivative instruments as part of its risk management strategy to reduce the market risk related to fluctuations in future interest rates associated with a portion of its variable-rate debt. As of December 31, 2018 , ProAssurance has not designated any derivative instruments as hedging instruments and does not use derivative instruments for trading purposes. ProAssurance utilizes an interest rate cap agreement with the objective of reducing the Company's exposure to interest rate risk related to its variable-rate Mortgage Loans. Additional information regarding the Company's Mortgage Loans is provided in Note 10 . Under the terms of the interest rate cap agreement, ProAssurance paid a premium of $2 million in 2017 for the right to receive cash payments based upon a notional amount of $35 million if and when the three-month LIBOR rises above 2.35% . The Company's variable-rate Mortgage Loans bear an interest rate of three-month LIBOR plus 1.325% . Therefore, this derivative instrument is effectively ensuring the interest rate related to the Mortgage Loans is capped at a maximum of 3.675% until expiration of the interest rate cap agreement in October 2027 . ProAssurance has designated the interest rate cap as an economic hedge (non-hedging instrument) of interest rate exposure and any change in fair value of the derivative is immediately recognized in earnings during the period of change. The following table provides a summary of the volume and fair value position of the interest rate cap as well as the reporting location in the Consolidated Balance Sheets as of December 31, 2018 and 2017 . ($ in thousands) December 31, 2018 December 31, 2017 Derivatives Not Designated as Hedging Instruments Location in the Consolidated Balance Sheets Number of Instruments Notional Amount (1) Estimated Fair Value (2) Number of Instruments Notional Amount (1) Estimated Fair Value (2) Interest Rate Cap Other assets 1 $ 35,000 $ 1,884 1 $ 35,000 $ 1,731 (1) Volume is represented by the derivative instrument's notional amount. (2) Additional information regarding the fair value of the Company's interest rate cap is provided in Note 2. The following table presents the pre-tax impact of the change in the fair value of the interest rate cap and the reporting location in the Consolidated Statements of Income and Comprehensive Income for the years ended December 31, 2018 , 2017 and 2016 . Gains (Losses) Recognized in Income on Derivatives (In thousands) Year Ended December 31 Derivatives Not Designated as Hedging Instruments Location in the Consolidated Statements of Income and Comprehensive Income 2018 2017 2016 Interest Rate Cap Interest expense $ 153 $ (339 ) $ — As a result of this derivative instrument, ProAssurance is exposed to risk that the counterparty will fail to meet its contractual obligations. To mitigate this counterparty credit risk, ProAssurance only enters into derivative contracts with carefully selected major financial institutions based upon their credit ratings and monitors their creditworthiness. As of December 31, 2018 , the counterparty had an investment grade rating of BBB- and has performed in accordance with their contractual obligations. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity At December 31, 2018 and 2017 , 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, 2018 , 2017 and 2016 : (In thousands) 2018 2017 2016 Issued and outstanding shares - January 1 53,457 53,251 53,101 Repurchase of shares, at cost of $2 million for 2016 — — (44 ) Shares issued due to exercise of options and vesting of share-based compensation awards 135 132 108 Other shares issued for compensation and shares reissued to stock purchase plan * 45 74 86 Issued and outstanding shares - December 31 53,637 53,457 53,251 * Shares issued were valued at fair value (the market price of a ProAssurance common share on the date of issue). As of December 31, 2018 , approximately 2.0 million of ProAssurance's authorized common shares were reserved by the Board for award or issuance under the incentive compensation plans described in Note 13 and an additional 0.6 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 2018 , 2017 and 2016 as follows: Cash Dividends Declared, per Share 2018 2017 2016 First Quarter $ 0.31 $ 0.31 $ 0.31 Second Quarter $ 0.31 $ 0.31 $ 0.31 Third Quarter $ 0.31 $ 0.31 $ 0.31 Fourth Quarter* $ 0.81 $ 5.00 $ 5.00 * Includes special dividends of $0.50 per share in 2018 and $4.69 per share in both 2017 and 2016 . Quarterly dividends were paid in the month following the quarter in which they were declared. Dividends declared during 2018 , 2017 and 2016 totaled $94.3 million , $316.9 million and $315.0 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 18 . 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, 2018 , total equity of $165.3 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, 2018 , 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, 2018 , 2017 and 2016 , OCI was almost entirely comprised of unrealized gains and losses, including non-credit impairment losses, arising during the period related to fixed maturity available-for-sale securities, less reclassification adjustments as shown in the table that follows, net of tax. For the years ended December 31, 2018 and 2017 , OCI included changes related to the reestimation of the defined benefit plan liability assumed in the Eastern acquisition which were nominal in amount. The defined benefit plan is frozen as to the earnings of additional benefits and the 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 assumed in the Eastern acquisition. At December 31, 2018 and 2017 , AOCI was almost entirely comprised of accumulated unrealized gains and losses from fixed maturity available-for-sale securities, including accumulated non-credit impairments recognized through OCI of $0.1 million and $0.5 million , respectively, net of tax. At December 31, 2018 and 2017 , accumulated changes in the defined benefit plan liability not yet recognized in earnings were nominal in amount. Due to the adoption of accounting guidance in the first quarter of 2018 related to certain impacts of the TCJA , ProAssurance increased AOCI by approximately $3.4 million with a corresponding decrease to retained earnings of the same amount as of the beginning of 2018. See Note 1 for additional information on accounting guidance adopted during the period. At December 31, 2018 and 2017 , tax effects were computed using the enacted federal corporate tax rate of 21% and 35% , respectively, with the exception of unrealized gains and losses on available-for-sale securities held at our U.K. and Cayman Islands entities which in both periods 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) 2018 2017 2016 Reclassifications from AOCI to net income: Realized investment gains (losses) $ 274 $ 2,512 $ 2,417 Non-credit impairment losses reclassified to earnings, due to sale of securities or reclassification as a credit loss (621 ) (3 ) (3,641 ) Unrecognized losses in defined benefit plan liabilities reclassified to earnings, due to the termination and settlement of the plan — — (1,500 ) Total gains (losses) reclassified, before-tax effect (347 ) 2,509 (2,724 ) Tax effect* 73 (878 ) 953 Net reclassification adjustments $ (274 ) $ 1,631 $ (1,771 ) Deferred tax expense (benefit) included in OCI $ (9,573 ) $ (4,676 ) $ (3,078 ) * Tax effects were computed using a 21% for the year ended December 31, 2018 and a 35% rate for the years ended December 31, 2017 and 2016. |
Share-Based Payments
Share-Based Payments | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Payments | Share-Based Payments Share-based compensation costs are primarily classified as a component of operating expense. During 2018 , 2017 and 2016 , 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 estimated compensation cost that will be charged to expense in future periods. Share-Based Unrecognized Compensation Cost Year Ended December 31 December 31, 2018 ($ in millions, except remaining recognition period) 2018 2017 2016 Amount Weighted Average Remaining Total share-based compensation expense $ 5.3 $ 10.6 $ 12.5 $ 5.9 1.5 Tax benefit recognized $ 1.1 $ 3.7 $ 4.4 The majority of awards are equity classified awards and are charged to expense as an increase to additional paid-in capital over the service period (generally the vesting period) associated with the award. However, a nominal amount of awards are liability classified awards and are recorded as a liability as they are structured to be settled in cash. As of December 31, 2018 , the majority of share-based compensation expense related to restricted share units. 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 equity classified awards, units sufficient to satisfy required tax withholdings are paid in cash rather than in shares. Liability classified awards, which are nominal in amount, are settled in cash at the end of the vesting period. Restricted Share Units Activity for restricted share units during 2018 , 2017 and 2016 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. 2018 2017 2016 Units Weighted Units Weighted Units Weighted Beginning non-vested balance 269,520 $ 48.63 240,149 $ 44.07 178,468 $ 43.13 Granted 85,797 $ 44.73 84,565 $ 58.35 109,181 $ 45.59 Forfeited (3,878 ) $ 50.07 (4,087 ) $ 52.35 (5,954 ) $ 43.99 Vested and released (84,116 ) $ 42.90 (51,107 ) $ 43.01 (41,546 ) $ 44.04 Ending non-vested balance 267,323 $ 49.16 269,520 $ 48.63 240,149 $ 44.07 The aggregate grant date fair value of restricted share units vested and released in 2018 , 2017 and 2016 totaled $3.6 million , $2.2 million and $1.8 million , respectively. The aggregate intrinsic value of restricted share units vested and released in 2018 , 2017 and 2016 (including units paid in cash to cover tax withholdings) totaled $4.1 million , $3.1 million and $2.1 million , respectively. 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 2018 , 2017 and 2016 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. 2018 2017 2016 Base Units Weighted Base Units Weighted Base Units Weighted Beginning non-vested balance 212,105 $ 47.11 305,240 $ 43.41 390,350 $ 44.65 Granted 27,202 $ 44.73 48,000 $ 58.35 60,000 $ 45.59 Forfeited — $ — (227 ) $ 42.79 (5,162 ) $ 43.02 Vested and released (104,105 ) $ 42.79 (140,908 ) $ 42.95 (139,948 ) $ 44.05 Ending non-vested balance 135,202 $ 49.95 212,105 $ 47.11 305,240 $ 43.41 The aggregate grant date fair value of performance share units (base level) vested and released in 2018 , 2017 and 2016 totaled $4.5 million , $6.1 million and $6.2 million , respectively. The aggregate intrinsic value of performance share units (base level) vested and released in 2018 , 2017 and 2016 (including units paid in cash to cover tax withholdings) totaled $5.0 million , $8.7 million and $6.9 million , respectively. The weighted average level at which the vested units were issued was 125% , 119% and 98% during 2018 , 2017 and 2016 , 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. During 2017, the ProAssurance Corporation 2011 Employee Stock Ownership Plan was discontinued and existing purchase match units will continue to vest according to the vesting period. Purchase match unit activity during 2018 , 2017 and 2016 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. 2018 2017 2016 Units Weighted Units Weighted Units Weighted Beginning non-vested balance 70,292 $ 49.40 72,615 $ 45.77 74,483 $ 42.80 Granted — $ — 24,444 $ 51.83 23,903 $ 50.18 Forfeited (1,594 ) $ 50.19 (2,012 ) $ 48.29 (2,875 ) $ 43.77 Vested and released (24,016 ) $ 46.28 (24,755 ) $ 41.33 (22,896 ) $ 40.88 Ending non-vested balance 44,682 $ 51.05 70,292 $ 49.40 72,615 $ 45.77 The aggregate grant date fair value of purchase match units vested and released in 2018 , 2017 and 2016 totaled $1.1 million , $1.0 million and $0.9 million , respectively. The aggregate intrinsic value of purchase match share units vested and released in 2018 , 2017 and 2016 (including units paid in cash to cover tax withholdings) totaled $1.1 million , $1.4 million and $1.2 million , respectively. Stock Options ProAssurance also had certain fully-vested employee stock options outstanding during 2016 , as summarized below. ProAssurance had no options exercised during 2018 and 2017 and no outstanding options at December 31, 2018 , 2017 or 2016 . 2018 2017 2016 Options Weighted Options Weighted Options Weighted Outstanding, vested and exercisable, beginning of year — $ — — $ — 2,144 $ 25.02 Exercised — $ — — $ — (2,144 ) $ 25.02 Outstanding, vested and exercisable, end of year — $ — — $ — — $ — The aggregate intrinsic value of options exercised totaled $0.1 million for the year ended December 31, 2016 . There were no cash proceeds from options exercised during the year ended December 31, 2016 . |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2018 | |
Variable Interest Entities [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. 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 investment in unconsolidated subsidiaries, totaled $285.8 million at December 31, 2018 and $269.0 million at December 31, 2017 . ProAssurance's VIE interests, carried as a part of other investments, totaled $33.9 million at December 31, 2017 . 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 VIE is limited to its direct ownership interest in the VIE . Except for the funding commitments disclosed in Note 9 , ProAssurance has no arrangements with any of the VIE s to provide other financial support to or on behalf of the VIE . At December 31, 2018 , 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, 2018 | |
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 restricted share units, performance share units and purchase match units have vested. The following table provides the weighted average number of common shares outstanding used in the calculation of the Company's basic and diluted earnings per share: (In thousands, except per share data) Year Ended December 31 2018 2017 2016 Weighted average number of common shares outstanding, basic 53,598 53,393 53,216 Dilutive effect of securities: Restricted Share Units 70 85 73 Performance Share Units 63 110 135 Purchase Match Units 18 23 24 Weighted average number of common shares outstanding, diluted 53,749 53,611 53,448 Effect of dilutive shares on earnings per share $ — $ (0.01 ) $ (0.01 ) All dilutive common share equivalents are reflected in the earnings per share calculation while antidilutive common share equivalents are not reflected in the earnings per share calculation. The diluted weighted average number of common shares outstanding for the years ended December 31, 2018 and 2017 exclude approximately 2,000 and 7,000 common share equivalents issuable under the Company's stock compensation plans, respectively, as their effect would be antidilutive. There were no common share equivalents that were antidilutive for the year ended December 31, 2016 . |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information ProAssurance's segments are based on the Company's internal management reporting structure for which financial results are regularly evaluated by the Company's CODM to determine resource allocation and assess operating performance. The Company continually assesses its internal management reporting structure and information evaluated by the CODM to determine whether any changes have occurred that would impact its segment reporting structure. Segment Reorganization During the third quarter of 2018, ProAssurance altered its internal management reporting structure and the financial results evaluated by its CODM ; therefore, ProAssurance changed its operating segments to align with how the CODM currently oversees the business, allocates resources and evaluates operating performance. As a result of the segment reorganization, ProAssurance added an operating and reportable segment: Segregated Portfolio Cell Reinsurance. The Segregated Portfolio Cell Reinsurance segment provides the operating results of SPC s that assume workers’ compensation insurance, healthcare professional liability insurance or a combination of the two. The underwriting results of the SPC s that assume workers’ compensation business and healthcare professional liability business were previously reported in the Company's Workers’ Compensation and Specialty P&C segments, respectively, and the results of investment assets solely allocated to SPC operations, previously reported in the Company's Corporate segment, are now reported in the Segregated Portfolio Cell Reinsurance segment. The Workers' Compensation segment has also been renamed "Workers' Compensation Insurance." All prior period segment information has been recast to conform to the current period presentation. The segment reorganization had no impact on previously reported consolidated financial results. Descriptions of ProAssurance's five operating and reportable segments are as 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. Prior to 2018, the Specialty P&C segment ceded certain premium to the Lloyd's Syndicates segment under a quota share agreement with Syndicate 1729 ; however, this agreement was not renewed on January 1, 2018. As discussed below, the Lloyd's Syndicates segment results are typically reported on a quarter delay. For consistency purposes, results from this ceding arrangement, other than cash receipts or disbursements, are reported within the Specialty P&C segment on the same one-quarter delay. Additionally, the Specialty P&C segment cedes healthcare professional liability business to certain SPC s in the Company's Segregated Portfolio Cell Reinsurance segment. Workers' Compensation Insurance provides workers' compensation products primarily to employers with 1,000 or fewer employees. The segment's products include guaranteed cost, policyholder dividend policies, retrospectively-rated policies, deductible polices and alternative market solutions. Alternative market products include program design, fronting, claims administration, risk management, SPC rental, asset management and SPC management services. Alternative market premiums are 100% ceded to either SPC s in the Company's Segregated Portfolio Cell Reinsurance segment or, to a limited extent, to captive insurers unaffiliated with ProAssurance. Segregated Portfolio Cell Reinsurance reflects the operating results (underwriting profit or loss, plus investment results) of SPC s at Eastern Re and Inova Re , the Company's Cayman Islands SPC operations. The SPC s assume workers' compensation insurance, healthcare professional liability insurance or a combination of the two from the Workers' Compensation Insurance and Specialty P&C segments. Each SPC is owned, fully or in part, by an agency, group or association and the operating results of the SPC s are due to the participants of that cell. ProAssurance participates to a varying degree in the results of selected SPC s. SPC operating results due to external cell participants are reflected as a SPC dividend expense in the Segregated Portfolio Cell Reinsurance segment and in ProAssurance's Consolidated Statements of Income and Comprehensive Income. In addition, the Segregated Portfolio Cell Reinsurance segment includes the SPC investment results as the investments are solely for the benefit of the cell participants and investment results due to external cell participants are reflected in the SPC dividend expense. The segment operating results reflects ProAssurance's share of the underwriting and investment results of the SPC s in which ProAssurance participates. During the first quarter of 2018, ProAssurance restructured its Cayman Islands SPC operations. Beginning in 2018, all new and renewing alternative market business previously ceded to the SPC s at Eastern Re , with the exception of one program, is now ceded to SPC s operated by a newly formed wholly owned Cayman Islands subsidiary, Inova Re . As part of the restructuring, all SPC s previously operated by Eastern Re , with the exception of one program, ceased assuming new and renewing business on or after January 1, 2018. The external cell participants' cumulative undistributed earnings and the results of all SPC s for the current period due to external cell participants continue to be reported as SPC dividends payable and SPC dividend expense, respectively. Lloyd's Syndicates includes operating results from ProAssurance's participation in Lloyd's of London Syndicate 1729 and Syndicate 6131 , which is a SPA that began writing business effective January 1, 2018. The results of this segment are normally reported on a quarter delay, except when information is available that is material to the current period. Furthermore, investment results associated with the majority of investment assets solely allocated to Lloyd's Syndicate operations and certain U.S. paid administrative expenses are reported concurrently as that information is available on an earlier time frame. Beginning in 2018, ProAssurance increased its participation in the operating results of Syndicate 1729 from 58% to 62% and began its 100% participation in the operating results of Syndicate 6131 ; however, due to the quarter delay these changes were not reflected in the Lloyd's Syndicates segment results until the second quarter of 2018. Syndicate 1729 underwrites risks over a wide range of property and casualty insurance and reinsurance lines in both the U.S. and international markets. Syndicate 6131 focuses on contingency and specialty property business, also within the U.S. and international markets. Corporate includes ProAssurance's investment operations, other than those reported in the Segregated Portfolio Cell Reinsurance and Lloyd's Syndicates segments, interest expense and U.S. income taxes. The segment also includes non-premium revenues generated outside of the Company's insurance entities and corporate expenses. The accounting policies of the segments are described in Note 1 . ProAssurance evaluates the performance of its Specialty P&C and Workers' Compensation Insurance segments based on before tax underwriting profit or loss, which excludes investment performance. ProAssurance evaluates the performance of its Segregated Portfolio Cell Reinsurance segment based on before tax operating profit or loss, which includes the investment performance of assets solely allocated to SPC operations. Performance of the Lloyd's Syndicates segment is evaluated based on underwriting profit or loss, plus investment results of investment assets solely allocated to Lloyd's Syndicate 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, other than the investments discussed above that are solely allocated to the Segregated Portfolio Cell Reinsurance and Lloyd's Syndicates segments, and other assets are not managed at the segment level. Financial results by segment were as follows: Year Ended December 31, 2018 (In thousands) Specialty P&C Workers' Compensation Insurance Segregated Portfolio Cell Reinsurance Lloyd's Syndicates Corporate Inter-segment Eliminations Consolidated Net premiums earned $ 491,787 $ 186,079 73,940 $ 67,047 $ — $ — $ 818,853 Net investment income — — 1,566 3,358 86,960 — 91,884 Equity in earnings (loss) of unconsolidated subsidiaries — — — — 8,948 — 8,948 Net realized gains (losses) — — (3,149 ) (460 ) (39,879 ) — (43,488 ) Other income (expense) (1) 5,844 2,412 211 322 3,525 (2,481 ) 9,833 Net losses and loss adjustment expenses (384,431 ) (118,483 ) (38,726 ) (51,570 ) — — (593,210 ) Underwriting, policy acquisition and operating expenses (1) (112,419 ) (55,693 ) (22,426 ) (31,686 ) (18,767 ) 2,435 (238,556 ) Segregated portfolio cells dividend (expense) income — — (9,122 ) — — — (9,122 ) Interest expense — — — — (16,163 ) 46 (16,117 ) Income tax benefit (expense) — — — 317 17,715 — 18,032 Segment operating results $ 781 $ 14,315 $ 2,294 $ (12,672 ) $ 42,339 $ — $ 47,057 Significant non-cash items: Depreciation and amortization, net of accretion $ 7,050 $ 3,850 $ 441 $ (8 ) $ 9,922 $ — $ 21,255 Year Ended December 31, 2017 (In thousands) Specialty P&C Workers' Compensation Insurance Segregated Portfolio Cell Reinsurance Lloyd's Syndicates Corporate Inter-segment Eliminations Consolidated Net premiums earned $ 449,823 $ 163,309 $ 68,197 $ 57,202 $ — $ — $ 738,531 Net investment income — — 1,059 1,736 92,867 — 95,662 Equity in earnings (loss) of unconsolidated subsidiaries — — — — 8,033 — 8,033 Net realized gains (losses) — — 3,914 107 12,388 — 16,409 Other income (expense) (1) 5,688 2,096 115 (1,476 ) 2,888 (1,797 ) 7,514 Net losses and loss adjustment expenses (285,250 ) (102,233 ) (37,455 ) (44,220 ) — — (469,158 ) Underwriting, policy acquisition and operating expenses (1) (107,972 ) (52,576 ) (20,764 ) (26,963 ) (29,275 ) 1,797 (235,753 ) Segregated portfolio cells dividend (expense) income (2) (5,181 ) — (10,590 ) — — — (15,771 ) Interest expense — — — — (16,844 ) — (16,844 ) Income tax benefit (expense) (2) — — — 568 (21,927 ) — (21,359 ) Segment operating results $ 57,108 $ 10,596 $ 4,476 $ (13,046 ) $ 48,130 $ — $ 107,264 Significant non-cash items: Depreciation and amortization, net of accretion $ 7,922 $ 3,480 $ 680 $ (20 ) $ 16,734 $ — $ 28,796 Year Ended December 31, 2016 (In thousands) Specialty P&C Workers' Compensation Insurance Segregated Portfolio Cell Reinsurance Lloyd's Syndicates Corporate Inter-segment Eliminations Consolidated Net premiums earned $ 454,506 $ 161,988 $ 62,137 $ 54,650 $ — $ — $ 733,281 Net investment income — — 711 1,410 97,891 — 100,012 Equity in earnings (loss) of unconsolidated subsidiaries — — — — (5,762 ) — (5,762 ) Net realized gains (losses) — — 2,525 76 32,274 — 34,875 Other income (expense) (1) 5,306 2,218 18 1,415 1,069 (2,218 ) 7,808 Net losses and loss adjustment expenses (266,090 ) (107,791 ) (35,232 ) (34,116 ) — — (443,229 ) Underwriting, policy acquisition and operating expenses (1) (103,656 ) (53,597 ) (18,936 ) (22,832 ) (30,807 ) 2,218 (227,610 ) Segregated portfolio cells dividend (expense) income — — (8,142 ) — — — (8,142 ) Interest expense — — — — (15,032 ) — (15,032 ) Income tax benefit (expense) — — — (384 ) (24,736 ) — (25,120 ) Segment operating results $ 90,066 $ 2,818 $ 3,081 $ 219 $ 54,897 $ — $ 151,081 Significant non-cash items: Depreciation and amortization, net of accretion $ 7,268 $ 5,600 $ 595 $ 132 $ 19,194 $ — $ 32,789 (1) As a result of the third quarter 2018 segment reorganization, certain fees for services provided to the SPCs at Eastern Re and Inova Re are recorded as expenses within the Segregated Portfolio Cell Reinsurance segment and as other income within the Workers' Compensation Insurance segment. These fees are eliminated between segments in consolidation. These services primarily include SPC rental fees and were previously eliminated within the Company's Workers' Compensation segment. (2) During 2017, ProAssurance recognized a $5.2 million pre-tax expense related to previously unrecognized SPC dividend expense for the cumulative earnings of unrelated parties that have owned segregated portfolio cells at various periods since 2003 in a Bermuda captive insurance operation managed by the Company's HCPL line of business within the Specialty P&C segment. The expense recorded in 2017 related to periods prior to the then current period and was unrelated to the Company's Cayman Islands captive operations. The $1.8 million tax impact of the expense recognized in 2017 was included in the Corporate segment's income tax benefit (expense). 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) 2018 2017 2016 Specialty P&C Segment Gross premiums earned: Healthcare professional liability $ 518,303 $ 477,561 $ 474,981 Legal professional liability 26,094 25,771 26,125 Medical technology liability 35,157 33,836 34,158 Other 468 415 667 Ceded premiums earned (88,235 ) (87,760 ) (81,425 ) Segment net premiums earned 491,787 449,823 454,506 Workers' Compensation Insurance Segment Gross premiums earned: Traditional business 199,466 173,246 171,434 Alternative market business 83,508 80,698 75,658 Ceded premiums earned (96,895 ) (90,635 ) (85,104 ) Segment net premiums earned 186,079 163,309 161,988 Segregated Portfolio Cell Reinsurance Segment Gross premiums earned: Workers' compensation (1) 78,255 72,814 66,899 Healthcare professional liability (2) 5,009 4,097 3,310 Ceded premiums earned (9,324 ) (8,714 ) (8,072 ) Segment net premiums earned 73,940 68,197 62,137 Lloyd's Syndicates Segment Gross premiums earned: Property and casualty (3) 83,307 69,749 60,564 Ceded premiums earned (16,260 ) (12,547 ) (5,914 ) Segment net premiums earned 67,047 57,202 54,650 Consolidated net premiums earned $ 818,853 $ 738,531 $ 733,281 (1) Premium for all periods is assumed from the Workers' Compensation Insurance segment. (2) Premium for all periods is assumed from the Specialty P&C segment. (3) Includes premium assumed from the Specialty P&C segment of $5.0 million , $11.8 million and $14.0 million for years ended December 31, 2018 , 2017 and 2016 , respectively. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [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 up to 10% of salary for qualified employees. ProAssurance incurred expense related to the ProAssurance Savings Plan of $7.0 million , $7.8 million and $6.9 million during the years ended December 31, 2018 , 2017 and 2016 , 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 during each of the years ended December 31, 2018 , 2017 and 2016. ProAssurance deferred compensation liabilities totaled $21.3 million and $20.5 million at December 31, 2018 and 2017 , 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, 2018 | |
Insurance [Abstract] | |
Statutory Accounting and Dividend Restrictions | Retroactive Insurance Contracts ProAssurance offers custom alternative risk solutions including loss portfolio transfers for large healthcare entities who, most commonly, are exiting a line of business, changing an insurance approach or simply preferring to transfer risk. A loss portfolio transfer is a form of retroactive insurance coverage as the Company is assuming and accepting an entity’s existing open and future claim liabilities through the transfer of the entity’s loss reserves. In the second quarter of 2018, ProAssurance entered into a loss portfolio transfer with a large healthcare organization. Per the agreement, ProAssurance will cover a specific inventory of existing claims as well as provide tail coverage. As the contract included both prospective (tail) coverage and retroactive coverage, ProAssurance bifurcated the provisions of the contract and accounted for each component separately. As of the contract effective date, ProAssurance recognized total net premiums written and earned of $26.6 million , comprised of $7.9 million of prospective coverage and $18.7 million of retroactive coverage, and total net losses and loss adjustment expenses of $25.4 million in the Consolidated Statements of Income and Comprehensive Income for the year ended December 31, 2018 . In addition, ProAssurance recorded a deferred gain of $0.6 million in the reserve for losses and loss adjustment expenses in the second quarter of 2018 representing the excess of premiums received over losses assumed related to the retroactive coverage which is amortized into earnings over the estimated claim payment period. ProAssurance recognized a nominal amount of amortization related to this deferred gain during the year ended December 31, 2018 . For additional information regarding ProAssurance's accounting policy for retroactive insurance contracts, see Note 1 . 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 SAP prescribed or permitted by regulatory authorities. ProAssurance did not use any prescribed or permitted SAP that differed from the NAIC 's SAP at December 31, 2018 , 2017 or 2016 . 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, 2018 , 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 2018 2017 2016 2018 2017 $135 $139 $163 $1,041 $1,175 At December 31, 2018 , $1.3 billion of ProAssurance's consolidated net assets were held at its domestic insurance subsidiaries, of which approximately $128 million are permitted to be paid as dividends over the course of 2019 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, 2018 | |
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 2018 and 2017 : 2018* (In thousands, except per share data) 1st 2nd 3rd 4th Net premiums earned $ 187,159 $ 223,591 $ 206,070 $ 202,033 Net losses and loss adjustment expenses: Current year $ 152,572 $ 184,543 $ 169,154 $ 179,056 Favorable development of reserves established in prior years, net $ (22,786 ) $ (22,815 ) $ (21,549 ) $ (24,967 ) Net income (loss) $ 11,856 $ 28,423 $ 31,228 $ (24,450 ) Basic earnings per share $ 0.22 $ 0.53 $ 0.58 $ (0.46 ) Diluted earnings per share $ 0.22 $ 0.53 $ 0.58 $ (0.46 ) 2017* (In thousands, except per share data) 1st 2nd 3rd 4th Net premiums earned $ 182,903 $ 180,353 $ 192,303 $ 182,972 Net losses and loss adjustment expenses: Current year $ 147,927 $ 144,562 $ 161,631 $ 149,399 Favorable development of reserves established in prior years, net $ (28,776 ) $ (29,012 ) $ (32,275 ) $ (44,297 ) Net income (loss) $ 41,455 $ 19,518 $ 28,949 $ 17,342 Basic earnings per share $ 0.78 $ 0.37 $ 0.54 $ 0.32 Diluted earnings per share $ 0.77 $ 0.36 $ 0.54 $ 0.32 *Due to rounding, the sum of quarterly amounts may not equal the total amount 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, 2018 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Schedule I - Summary of Investments Other than Investments in Related Parties | December 31, 2018 Type of Investment Recorded Fair Amount Which is Fixed maturities Bonds: U.S. Government or government agencies and authorities $ 171,770 $ 170,154 $ 170,154 States, municipalities and political subdivisions 289,544 293,772 293,772 Foreign governments 30,318 29,892 29,892 Public utilities 76,735 76,059 76,059 All other corporate bonds 1,160,474 1,140,356 1,140,356 Certificates of deposit 100 100 100 Mortgage-backed securities 426,329 421,653 421,653 Total Fixed Maturities 2,155,270 2,131,986 2,131,986 Equity Securities Common Stocks: Public utilities 7,553 9,177 9,177 Banks, trusts and insurance companies 64,148 62,344 62,344 Industrial, miscellaneous and all other 379,230 371,416 371,416 Total Equity Securities, trading 450,931 442,937 442,937 Other long-term investments 352,654 466,140 466,140 Short-term investments 308,367 308,319 308,319 Total Investments $ 3,267,222 $ 3,349,382 $ 3,349,382 |
Schedule II - Condensed Financi
Schedule II - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule II - Condensed Financial Information of Registrant | December 31, December 31, Assets Investment in subsidiaries, at equity $ 1,599,486 $ 1,713,656 Fixed maturities available for sale, at fair value 78,076 155,094 Short-term investments 76,347 268,181 Investment in unconsolidated subsidiaries 875 1,200 Cash and cash equivalents 25,757 81,009 Due from subsidiaries — 2,666 Other assets 45,683 33,829 Total Assets $ 1,826,224 $ 2,255,635 Liabilities and Shareholders’ Equity Liabilities: Due to subsidiaries $ 4,067 $ — Dividends payable 43,446 267,292 Other liabilities 6,823 22,008 Debt less debt issuance costs 248,886 371,540 Total Liabilities 303,222 660,840 Shareholders’ Equity: Common stock 630 628 Other shareholders’ equity, including unrealized gains (losses) on securities of subsidiaries 1,522,372 1,594,167 Total Shareholders’ Equity 1,523,002 1,594,795 Total Liabilities and Shareholders’ Equity $ 1,826,224 $ 2,255,635 Year Ended December 31 2018 2017 2016 Revenues Net investment income $ 3,495 $ 7,646 $ 6,359 Equity in earnings (loss) of unconsolidated subsidiaries (325 ) (137 ) (155 ) Net realized investment gains (losses) (789 ) (8,606 ) 405 Other income (loss) 977 921 (960 ) Total revenues 3,358 (176 ) 5,649 Expenses Interest expense 14,844 16,440 15,030 Other expenses 17,092 26,351 28,305 Total expenses 31,936 42,791 43,335 Income (loss) before income tax expense (benefit) and equity in net income of consolidated subsidiaries (28,578 ) (42,967 ) (37,686 ) Income tax expense (benefit) (7,142 ) (13,293 ) (12,583 ) Income (loss) before equity in net income of consolidated subsidiaries (21,436 ) (29,674 ) (25,103 ) Equity in net income of consolidated subsidiaries 68,493 136,938 176,184 Net income 47,057 107,264 151,081 Other comprehensive income (loss) (35,238 ) (2,488 ) (6,456 ) Comprehensive income $ 11,819 $ 104,776 $ 144,625 Year Ended December 31 2018 2017 2016 Net cash provided (used) by operating activities $ 27,981 $ 67,779 $ 41,356 Investing activities (Investments in) distributions from unconsolidated subsidiaries, net: Other partnership investments — — (1,000 ) Proceeds from sales or maturities of: Fixed maturities, available for sale 169,822 295,035 100,240 Net decrease (increase) in short-term investments 194,035 11,811 (262,169 ) Dividends from subsidiaries 29,395 99,694 70,125 Contribution of capital to subsidiaries — — (1,983 ) Unsettled security transactions, net of change — 1,100 (1,100 ) Funds (advanced) repaid for Lloyd's FAL deposit (21,576 ) (25,449 ) — Funds (advanced) repaid under Syndicate Credit Agreement (11,232 ) (6,883 ) 1,695 Funds (advanced) repaid under a business investment line of credit — (4,066 ) (3,090 ) Other 330 (2,276 ) (2,805 ) Net cash provided (used) by investing activities 360,774 368,966 (100,087 ) Financing activities Borrowings (repayments) under Revolving Credit Agreement (123,000 ) (77,000 ) 100,000 Repurchase of common stock — — (2,106 ) Subsidiary payments for common shares and share-based compensation awarded to subsidiary employees 1,154 12,030 11,384 Dividends to shareholders (316,476 ) (315,228 ) (118,812 ) Other (5,685 ) (6,868 ) (3,697 ) Net cash provided (used) by financing activities (444,007 ) (387,066 ) (13,231 ) Increase (decrease) in cash and cash equivalents (55,252 ) 49,679 (71,962 ) Cash and cash equivalents at beginning of period 81,009 31,330 103,292 Cash and cash equivalents at end of period $ 25,757 $ 81,009 $ 31,330 Supplemental disclosure of cash flow information: Cash paid during the year for income taxes, net of refunds $ 4,966 $ 17,193 $ (8,519 ) Cash paid during the year for interest $ 14,777 $ 15,892 $ 14,732 Significant non-cash transactions: Dividends declared and not yet paid $ 43,446 $ 267,292 $ 265,659 Securities transferred at fair value as dividends from subsidiaries $ 98,292 $ 190,709 $ 174,270 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, 2018 and 2017 , PRA 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 Effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years, ProAssurance Corporation adopted ASU 2016-15 which provides guidance related to the classification of certain cash receipts and cash payments presented in the statement of cash flows. As a result of the adoption, ProAssurance Corporation reclassified approximately $24.4 million and $9.9 million in distributions from unconsolidated subsidiaries from investing activities to operating activities in the registrant-only Condensed Statements of Cash Flow for the years ended December 31, 2017 and 2016 , respectively. See Note 1 of the Notes to Consolidated Financial Statements for additional information. |
Schedule III - Supplementary In
Schedule III - Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
Schedule III - Supplementary Insurance Information | 2018 2017 2016 Net premiums earned Specialty P&C $ 491,787 $ 449,823 $ 454,506 Workers' Compensation Insurance 186,079 163,309 161,988 Segregated Portfolio Cell Reinsurance 73,940 68,197 62,137 Lloyd's Syndicates 67,047 57,202 54,650 Consolidated $ 818,853 $ 738,531 $ 733,281 Net investment income (1) Segregated Portfolio Cell Reinsurance $ 1,566 $ 1,059 $ 711 Lloyd's Syndicates 3,358 1,736 1,410 Corporate 86,960 92,867 97,891 Consolidated $ 91,884 $ 95,662 $ 100,012 Losses and loss adjustment expenses incurred related to current year, net of reinsurance Specialty P&C $ 461,516 $ 404,543 $ 403,249 Workers' Compensation Insurance 126,534 107,975 109,342 Segregated Portfolio Cell Reinsurance 47,693 45,968 39,801 Lloyd's Syndicates 49,583 45,032 34,615 Consolidated $ 685,326 $ 603,518 $ 587,007 Losses and loss adjustment expenses incurred related to prior year, net of reinsurance Specialty P&C $ (77,085 ) $ (119,293 ) $ (137,159 ) Workers' Compensation Insurance (8,051 ) (5,742 ) (1,551 ) Segregated Portfolio Cell Reinsurance (8,967 ) (8,513 ) (4,569 ) Lloyd's Syndicates 1,987 (812 ) (499 ) Consolidated $ (92,116 ) $ (134,360 ) $ (143,778 ) Paid losses and loss adjustment expenses, net of reinsurance Specialty P&C $ 354,221 $ 320,776 $ 341,189 Workers' Compensation Insurance 108,742 96,734 89,418 Segregated Portfolio Cell Reinsurance 29,320 28,761 27,391 Lloyd's Syndicates 37,496 29,926 21,254 Inter-segment eliminations 200 118 — Consolidated $ 529,979 $ 476,315 $ 479,252 Amortization of DPAC Specialty P&C $ 52,253 $ 47,615 $ 44,344 Workers' Compensation Insurance 16,864 14,551 13,273 Segregated Portfolio Cell Reinsurance 21,039 19,927 18,385 Lloyd's Syndicate 15,913 15,194 13,769 Inter-segment eliminations (1,568 ) (1,536 ) (1,393 ) Consolidated $ 104,501 $ 95,751 $ 88,378 Other underwriting, policy acquisition and operating expenses Specialty P&C $ 60,166 $ 60,357 $ 59,312 Workers' Compensation Insurance 38,829 38,025 40,324 Segregated Portfolio Cell Reinsurance 1,387 837 551 Lloyd's Syndicates 15,773 11,769 9,063 Corporate 18,767 29,275 30,807 Inter-segment eliminations (867 ) (261 ) (825 ) Consolidated $ 134,055 $ 140,002 $ 139,232 Continued on the following page. 2018 2017 2016 Continued from previous page Net premiums written Specialty P&C $ 494,148 $ 466,621 $ 454,718 Workers' Compensation Insurance 195,350 173,566 163,513 Segregated Portfolio Cell Reinsurance 75,547 68,862 64,028 Lloyd's Syndicates 69,869 54,969 56,274 Consolidated $ 834,914 $ 764,018 $ 738,533 Deferred policy acquisition costs (1) $ 54,116 $ 50,261 $ 46,809 Reserve for losses and loss adjustment expenses (1) $ 2,119,847 $ 2,048,381 $ 1,993,428 Unearned premiums (1) $ 415,211 $ 398,884 $ 372,563 (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, 2018 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
Schedule IV - Reinsurance | 2018 2017 2016 Property and Liability * Premiums earned $ 903,354 $ 821,249 $ 790,791 Premiums ceded (126,036 ) (110,347 ) (95,315 ) Premiums assumed 41,535 27,629 37,805 Net premiums earned $ 818,853 $ 738,531 $ 733,281 Percentage of amount assumed to net 5.07% 3.74% 5.16% * All of ProAssurance’s premiums are related to property and liability coverages. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
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 and the sole (100%) capital provider of a SPA , Syndicate 6131 at Lloyd's. Risks insured are primarily liability risks located within the U.S. Beginning in the third quarter of 2018, ProAssurance operates in five reportable segments as follows: Specialty P&C , Workers' Compensation Insurance, Segregated Portfolio Cell Reinsurance, Lloyd's Syndicates and Corporate. For more information on the Company's segment reporting, including the nature of products and services provided and financial information by segment, refer to Note 16 . |
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 normally reported on a quarter delay due to timing issues regarding the availability of information, except when information is available that is material to the current period. Furthermore, investment results associated with ProAssurance's FAL investments and certain U.S. paid administrative expenses are reported concurrently as that information is available on an earlier time frame. |
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 As a result of the third quarter of 2018 segment reorganization, prior year segment information in Note 16 has been recast to conform to the Company's current segment reporting (see Note 16 for further information). Certain other insignificant prior year amounts have been reclassified to conform to the current year presentation. |
Recognition of Revenues | 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, 2018 and 2017 . Neither estimated credit losses nor actual credit write-offs, net of recoveries, exceeded $0.5 million during the years ended December 31, 2018 and 2017 . Earned But Unbilled Premiums Workers’ compensation premiums are determined based upon the payroll of the insured, the applicable premium rates and an experience-based modification factor, where applicable. 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 written and 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 of EBUB premium as of the balance sheet date. Changes to the EBUB estimate are included in net premiums written and earned in the period recognized. As of December 31, 2018 and 2017 , ProAssurance carried EBUB of $4.3 million as a part of premiums receivable. Lloyd’s Premium Estimates For certain insurance policies and reinsurance contracts written in the Lloyd’s Syndicates segment, premiums are initially recognized based upon estimates of ultimate premium. Estimated ultimate premium consists primarily of premium written under delegated underwriting authority arrangements, which consist primarily of binding authorities, and certain assumed reinsurance agreements. These estimates of ultimate premium are judgmental and are dependent upon certain assumptions, including historical premium trends for similar agreements. As reports are received from programs, ultimate premium estimates are revised, if necessary, with changes reflected in current operations. |
Losses and Loss Adjustment Expenses | Losses and Loss Adjustment Expenses ProAssurance establishes its reserve for losses and LAE ("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 premium rates, claims frequency and severity, historical paid and incurred loss development trends, the expected effect of inflation, general economic trends, the legal and political environment and the conclusions reached by internal and consulting actuaries. 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 2018 , 2017 and 2016 . 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 the Company offers, to provide protection against losses in excess of policy limits, and, in the case of risk sharing arrangements, to align the Company's objectives with those of its strategic business partners and to provide custom insurance solutions for large customer groups. Receivable from reinsurers on paid losses and LAE is the estimated amount of losses already paid that will be recoverable from reinsurers. Receivable from reinsurers on unpaid losses and LAE 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 Recurring Fair Value Measurements 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 the Company's 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 investment funds, primarily LP s/ LLC s, based on the NAV of the interest held, as provided by the fund. Nonrecurring Fair Value Measurements Management measures the fair value of certain assets on a nonrecurring basis either quarterly, annually or when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. These assets include investments carried principally at cost, investments in tax credit partnerships and equity method investments that do not provide a NAV , fixed assets, goodwill and other intangible assets. Fixed Maturities Fixed maturities 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 securities are carried at fair value, determined as described above, with the holding gains and losses included as a component of net realized investment gains (losses) during the period of change. Equity Investments Equity investments are carried at fair value, as described above, with the holding gains and losses included as a component of net realized investment gains (losses) during the period of change. Equity investments are primarily comprised of stocks, bond funds and investment funds. 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 carried at fair value which approximates the cost of the securities due to their short-term nature. Other Investments 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. Investments in certain funds measure fund assets at fair value on a recurring basis and provide ProAssurance with a NAV for its interest. As a practical expedient, ProAssurance considers the NAV provided to approximate the fair value of its interest. Changes in fair value are included as a component of net realized investment gains (losses) during the period of change. Investment in Unconsolidated Subsidiaries Equity investments, primarily 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 equity in earnings (loss) of unconsolidated subsidiaries. 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, 2018 and 2017 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; or • 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 as follows: 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 the Company's 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. These factors include, but are not limited to: • ProAssurance's ability and intent to hold the investment until the recovery of its carrying value; and • in situations where there was not a previous OTTI for the investment, whether the current expected cash flows from the investment, primarily tax benefits, are less than those expected at the time the investment was acquired due to various factors, such as a change in the statutory tax rate; or • in situations where there was a previous OTTI for the investment, whether the expected cash flows from the investment at the time of the OTTI, primarily tax benefits, are less than its current carrying value. Investments which are accounted for under the equity method are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value of the investment may not be recoverable. These circumstances include, but are not limited to, evidence of the inability to recover the carrying value of the investment, the inability of the investee to sustain an earnings capacity that would justify the carrying value of the investment or a current fair value of the investment that is less than the carrying value. 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 reasons 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 used to recognize income on the investment balance for subsequent accounting periods. |
Derivatives | Derivatives ProAssurance records derivative instruments at fair value in the Consolidated Balance Sheets. ProAssurance accounts for the changes in fair value of derivatives depending on whether the derivative is designated as a hedging instrument and if so, the type of hedging relationship. For derivative instruments not designated as hedging instruments, ProAssurance recognizes the change in fair value of the derivative in earnings during the period of change. As of December 31, 2018 , ProAssurance has not designated any derivative instruments as hedging instruments and does not use derivative instruments for trading purposes. |
Foreign Currency | Foreign Currency The functional currency of all ProAssurance foreign subsidiaries is the U.S. dollar. In recording foreign currency transactions, revenue and expense items are converted to U.S. dollars at the exchange rate prevailing at the transaction date. Monetary assets and liabilities originating in currencies other than the U.S. dollar are remeasured to U.S. dollars at the rates of exchange in effect as of the balance sheet date. The resulting foreign currency gains or losses are recognized in the Consolidated Statements of Income and Comprehensive Income as a component of other income. Monetary assets and liabilities include investments, cash and cash equivalents, accrued expenses and other liabilities. |
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. |
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 and 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, 2018 or 2017 . 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. A valuation allowance has been established against the full value of the deferred tax asset related to the NOL carryforwards for the U.K. operations as management concluded that it was more likely than not that the deferred tax asset will not be realized. In 2018, ProAssurance also established a valuation allowance against the deferred tax assets of certain SPC s at its newly formed wholly owned Cayman Islands reinsurance subsidiary, Inova Re. As of December 31, 2018 , these newly formed SPC s are in a cumulative pre-tax loss position, and management concluded that a valuation allowance was required based upon the weight of this negative evidence. See further discussion in Note 6 . Changes in tax laws and rates could also affect recorded deferred tax assets and liabilities in the future. On December 22, 2017, the TCJA was signed into law and contains several key provisions that impact ProAssurance, including the reduction of the corporate tax rate to 21% effective January 1, 2018, the reduction in the amount of executive compensation that could qualify as a tax deduction, a minimum tax on payments made to related foreign entities, a change in how property and casualty taxpayers discount loss reserves, a minimum tax on payments made to related foreign entities and a new tax on certain income of controlled foreign corporations. See Note 6 for further discussion of the TCJA . |
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 operating expense. |
Intangible Assets | Intangible Assets Intangible assets with definite lives are amortized over the estimated useful life of the asset. Amortizable intangible assets primarily consist of policyholder relationships, renewal rights and trade names. Intangible assets with an indefinite life, primarily state licenses, are not amortized. All intangible assets are evaluated for impairment on an annual basis or upon the occurrence of certain triggering events or substantive changes in circumstances that indicate the fair value of the asset may be impaired. |
Goodwill | Goodwill Goodwill is recognized in conjunction with business acquisitions as the excess of the purchase consideration for the business 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 a business acquisition. Management evaluates goodwill for impairment annually on October 1, upon the occurrence of certain triggering events or substantive changes in circumstances that indicate the fair value of goodwill may be impaired, and immediately before and after a reorganization that affects the composition of one or more of the Company's reporting units. Impairment of goodwill is tested at the reporting unit level, which is consistent with the reportable segments identified in Note 16 . Of the five reporting units, three have goodwill: Specialty P&C, Workers' Compensation Insurance and Segregated Portfolio Cell Reinsurance. Annual Goodwill Impairment Test When testing goodwill for impairment, management has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the estimated fair value of a reporting unit is less than its carrying amount. If management elects to perform a qualitative assessment and determines that an impairment is more likely than not, management is then required to perform the two-step quantitative impairment test, otherwise no further analysis is required. Management also may elect not to perform the qualitative assessment and, instead, proceed directly to the two-step quantitative impairment test. As of the most recent annual evaluation date on October 1, 2018, management elected to perform a quantitative goodwill impairment assessment for Specialty P&C, Workers' Compensation Insurance and Segregated Portfolio Cell Reinsurance reporting units. In the first step of the two-step quantitative impairment test, the fair value of a reporting unit is determined using income and market approaches and is compared to its carrying value, as described above. The estimate of fair value derived from the income approach is based on the present value of expected future cash flows, including terminal value, utilizing a market based weighted average cost of capital determined separately for each reporting unit. The estimate of fair value derived from the market approach is based on earnings multiple data derived from market information. The determination of fair value involves the use of significant estimates and assumptions, including revenue growth rates, operating margins, capital expenditures, working capital requirements, tax rates, terminal growth rates, discount rates, comparable public companies and synergistic benefits available to market participants. In addition, management makes certain judgments and assumptions in allocating shared assets and liabilities to individual reporting units to determine the carrying amount of each reporting unit. To corroborate the reporting units’ valuation, management performs a reconciliation of the estimate of the aggregate fair value of the reporting units to ProAssurance's market capitalization, including consideration of a control premium. Because not all of ProAssurance's reporting units have goodwill, management makes certain assumptions regarding the fair value of the Company's other reporting units in reconciling to ProAssurance's market capitalization. If the carrying value of a reporting unit exceeds its fair value, the second step of the impairment test is performed for purposes of measuring the impairment of goodwill, if any. In the second step, the fair value of the reporting unit is allocated to all of the assets and liabilities of the reporting unit to determine an implied fair value of goodwill. If the carrying amount of the reporting unit's goodwill exceeds the implied fair value of goodwill, an impairment loss will be recognized in an amount equal to that excess. As a result of the quantitative assessments performed on October 1, 2018, management concluded that the fair value of each of the Company's three reporting units that have goodwill were greater than their carrying value as of the testing date; therefore, goodwill was not impaired and no further impairment testing was required. No goodwill impairment was recorded in 2018 , 2017 or 2016 . Goodwill Impairment Test - Result of Segment Reorganization As discussed in Note 16 , ProAssurance reorganized its segment reporting in the third quarter of 2018 to align with how the Company's CODM currently oversees the business, allocates resources and evaluates operating performance. As a result of the segment reorganization, ProAssurance added an operating and reportable segment: Segregated Portfolio Cell Reinsurance. The Segregated Portfolio Cell Reinsurance segment also became a reporting unit for purposes of testing goodwill for impairment. Management allocated goodwill to the Company's revised reporting units using a relative fair value approach which resulted in a nominal amount of goodwill reallocated from the Workers' Compensation Insurance reporting unit to the Segregated Portfolio Cell Reinsurance reporting unit. Management performed a quantitative goodwill impairment assessment for the Workers' Compensation Insurance reporting unit immediately prior to the reallocation and a quantitative goodwill impairment assessment for the Workers' Compensation Insurance and Segregated Portfolio Cell Reinsurance reporting units immediately after the reallocation and determined that no impairment existed. Management estimated the fair value of the Workers' Compensation Insurance and Segregated Portfolio Cell Reinsurance reporting units using both an income approach and market approach using the same valuation methodologies and process for developing assumptions that management uses in the annual impairment assessment, as discussed above. To corroborate the reporting units’ valuation, management performed a reconciliation of the estimate of the aggregate fair value of the reporting units to ProAssurance's market capitalization, including consideration of a control premium. Because management was not required to estimate the fair value of all of the Company's reporting units as part of this interim goodwill impairment assessment, management made certain assumptions regarding the fair value of the Company's other reporting units in reconciling to ProAssurance's market capitalization. The Specialty P&C reporting unit's net operating results were not impacted by the segment reorganization and there was no change to the amount of goodwill allocated to that reporting unit. Consequently, a quantitative goodwill impairment assessment was not required for this reporting unit due to the segment reorganization. |
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 operating cash inflows. |
Subsequent Events | Subsequent Events ProAssurance evaluates events that occurred subsequent to December 31, 2018 , for recognition or disclosure in its Consolidated Financial Statements. |
Accounting Changes Adopted and Accounting Changes Not Yet Adopted | Accounting Changes Not Yet Adopted Leases ( ASU 2016-02) 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 using a prospective application and plans to elect the transition option provided that allows companies to continue to apply legacy GAAP in comparative periods. Also, ProAssurance plans to elect the package of practical expedients permitted under the guidance, which allows the Company to carryforward its historical lease classification, its assessment on whether a contract is or contains a lease and its initial direct costs for any leases that exist prior to adoption of the new standard. Furthermore, ProAssurance plans to elect to combine lease and non-lease components and to keep leases with an initial term of 12 months or less off the Consolidated Balance Sheet and recognize the associated lease payments in the Consolidated Statements of Income and Comprehensive Income on a straight-line basis over the lease term. ProAssurance estimates approximately $19 million that would be recognized upon adoption as total right-of-use assets and total lease liabilities on the Consolidated Balance Sheet as of January 1, 2019 which relate to ProAssurance's real estate operating leases; the Company does not consider these leases to be material to its financial position. Adoption of this guidance will have no material impact on ProAssurance's results of operation or cash flows. ProAssurance's Revolving Credit Agreement contains a financial covenant regarding permitted leverage ratios based upon Consolidated Funded Indebtedness to Consolidated Total Capitalization; however, adoption of this guidance would have no material impact on this covenant. ProAssurance’s Mortgage Loans also contain a financial covenant regarding permitted leverage ratios, principally based upon SAP Consolidated Net Worth; however, as the NAIC is not anticipated to adopt the principles found in ASU 2016-02, adoption of the guidance would have no impact on this covenant. Premium Amortization on Purchased Callable Debt Securities ( ASU 2017-08) Effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, the FASB issued guidance that will require the premium for certain callable debt securities to be amortized over a shorter period than is currently required. Currently amortization is permitted over the contractual life of the instrument and the guidance shortens the amortization to the earliest call date. The purpose of the guidance is to more closely align the amortization period of premiums to expectations incorporated in market pricing on the underlying securities. ProAssurance plans to adopt the guidance beginning January 1, 2019. As ProAssurance amortizes premium on callable debt securities to the earliest call date, adoption of the guidance is not expected to have a material effect on ProAssurance’s results of operations, financial position or cash flows. Derivatives and Hedging ( ASU 2017-12) Effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, the FASB issued guidance to improve financial reporting of hedging relationships to better portray the entity's risk management activities in the consolidated financial statements. The new guidance eliminates the requirement to separately measure and report hedge ineffectiveness and requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. ProAssurance plans to adopt the guidance beginning January 1, 2019. ProAssurance's derivative instrument at December 31, 2018 is not designated as a hedging instrument; therefore, adoption is not expected to have a material effect on ProAssurance's results of operations, financial position or cash flows. Improvements to Nonemployee Share-Based Payment Accounting ( ASU 2018-07) Effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, the FASB issued guidance which reduces the complexity in accounting for nonemployee share-based payment awards. The new guidance substantially aligns the accounting for nonemployee share-based payment awards with the accounting guidance for employee share-based payment awards with certain exceptions, including the inputs used in estimating the fair value of the nonemployee awards and the period of time and pattern of expense recognition. ProAssurance plans to adopt the guidance as of January 1, 2019. Adoption of the guidance is not expected to have a material effect on ProAssurance’s results of operations, financial position or cash flows. Derivatives and Hedging - Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap as a Benchmark Interest Rate for Hedge Accounting Purposes ( ASU 2018-16) Effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, the FASB issued new guidance that permits the use of the Overnight Index Swap Rate based on the Secured Financing Rate as a U.S. benchmark interest rate for hedge accounting purposes. ProAssurance plans to adopt the guidance beginning January 1, 2019. ProAssurance's derivative instrument at December 31, 2018 is not designated as a hedging instrument; therefore, adoption is not expected to have a material effect on ProAssurance's results of operations, financial position or cash flows. Improvements to Financial Instruments - Credit Losses ( ASU 2016-13) 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. Credit losses on available-for-sale fixed maturity securities will be measured in a manner similar to current GAAP , although the new guidance requires that credit losses be presented as an allowance, rather than as a write-down of the asset, limited to the amount by which the fair value is below amortized cost. In addition, this guidance could impact ProAssurance's receivables from reinsurers; however, ProAssurance has not historically experienced material credit losses due to the financial condition of a reinsurer. ProAssurance plans to adopt the guidance beginning January 1, 2020 and is in the process of evaluating the effect the new guidance would have on its results of operations and financial position. Simplifying the Test for Goodwill Impairment ( ASU 2017-04) 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, financial position or cash flows. Changes to the Disclosure Requirements for Fair Value Measurement ( ASU 2018-13) Effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years, the FASB issued guidance that eliminates, modifies and adds certain disclosure requirements related to fair value measurements. The new guidance eliminates the requirements to disclose the transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for the timing of transfers between levels of the fair value hierarchy and the valuation process for Level 3 fair value measurements while it modifies existing disclosure requirements related to measurement uncertainty and the requirement to disclose the timing of liquidation of an investee's assets for investments in certain entities that calculate NAV . The new guidance also adds requirements to disclose changes in unrealized gains and losses included in OCI for recurring Level 3 fair value measurements as well as the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. An entity is permitted to early adopt any eliminated or modified disclosure requirements and delay adoption of the additional disclosure requirements until the guidance is effective. As of December 31, 2018 , ProAssurance has elected to early adopt the provisions that eliminate and modify certain disclosure requirements within Note 2 on a retrospective basis and adoption of these certain provisions had no material effect on ProAssurance’s results of operations, financial position or cash flows as it affected disclosures only. ProAssurance plans to adopt the additional disclosure requirements beginning January 1, 2020 and adoption is not expected to have a material effect on ProAssurance’s results of operations, financial position or cash flows. Intangibles - Goodwill and Other-Internal-Use Software ( ASU 2018-15) Effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years, the FASB amended the new standard regarding accounting for implementation costs in cloud computing arrangements. The amended guidance substantially aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. 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, financial position or cash flows. Targeted Improvements to Related Party Guidance for VIE s ( ASU 2018-17) Effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years, the FASB amended guidance which improves the consistency of the application of the VIE guidance for common control arrangements. The amended guidance requires an entity to consider indirect interests held through related parties under common control on a proportional basis rather than as the equivalent of a direct interest in its entirety when determining whether a decision-making fee is a variable interest. ProAssurance plans to adopt the guidance beginning January 1, 2020. As of December 31, 2018 ProAssurance does not have any material indirect interests held through related parties under common control; therefore, adoption is not expected to have a material effect on ProAssurance’s results of operations, financial position or cash flows. Collaborative Arrangements ( ASU 2018-18) Effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years, the FASB issued new guidance which clarifies how to assess whether certain transactions between participants in a collaborative arrangement should be accounted for under the revenue from contracts with customers accounting standard when the counterpart is a customer. In addition, the guidance precludes an entity from presenting consideration from a transaction in a collaborative arrangement as revenue from contracts with customers if the counterparty is not a customer for that transaction. ProAssurance plans to adopt the guidance beginning January 1, 2020 and adoption is not expected to have a material effect on ProAssurance’s results of operations, financial position or cash flows. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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) 2018 2017 2018 2017 2018 2017 2016 Intangible Assets Non-amortizable $ 25.8 $ 25.8 Amortizable 97.5 97.5 $ 46.5 $ 40.3 $ 6.2 $ 5.8 $ 8.1 Total Intangible Assets $ 123.3 $ 123.3 |
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) 2018 2017 2018 2017 2018 2017 2016 Intangible Assets Non-amortizable $ 25.8 $ 25.8 Amortizable 97.5 97.5 $ 46.5 $ 40.3 $ 6.2 $ 5.8 $ 8.1 Total Intangible Assets $ 123.3 $ 123.3 |
Schedule of other liabilities | Other liabilities at December 31, 2018 and 2017 consisted of the following: (In thousands) 2018 2017 SPC dividends payable $ 53,604 $ 46,925 Unpaid dividends 43,446 267,292 All other 102,245 123,383 Total other liabilities $ 199,295 $ 437,600 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and December 31, 2017 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, 2018 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 $ — $ 120,201 $ — $ 120,201 U.S. Government-sponsored enterprise obligations — 35,354 — 35,354 State and municipal bonds — 293,772 — 293,772 Corporate debt, multiple observable inputs 2,319 1,216,834 — 1,219,153 Corporate debt, limited observable inputs — — 4,322 4,322 Residential mortgage-backed securities — 181,238 — 181,238 Agency commercial mortgage-backed securities — 13,108 — 13,108 Other commercial mortgage-backed securities — 30,993 — 30,993 Other asset-backed securities — 191,807 3,850 195,657 Fixed maturities, trading — 38,188 — 38,188 Equity investments Financial 62,344 — — 62,344 Utilities/Energy 46,533 — — 46,533 Consumer oriented 47,462 — — 47,462 Industrial 41,487 — — 41,487 Bond funds 174,753 — — 174,753 All other 50,066 — — 50,066 Short-term investments 265,910 42,409 — 308,319 Other investments — 31,341 3 31,344 Other assets — 1,884 — 1,884 Total assets categorized within the fair value hierarchy $ 690,874 $ 2,197,129 $ 8,175 2,896,178 Assets carried at NAV, which approximates fair value and which are not categorized within the fair value hierarchy, reported as a part of: Equity investments 20,292 Investment in unconsolidated subsidiaries 268,436 Total assets at fair value $ 3,184,906 December 31, 2017 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 $ — $ 133,627 $ — $ 133,627 U.S. Government-sponsored enterprise obligations — 20,956 — 20,956 State and municipal bonds — 632,243 — 632,243 Corporate debt, multiple observable inputs 2,371 1,151,084 — 1,153,455 Corporate debt, limited observable inputs — — 13,703 13,703 Residential mortgage-backed securities — 196,789 1,055 197,844 Agency commercial mortgage-backed securities — 10,742 — 10,742 Other commercial mortgage-backed securities — 15,961 — 15,961 Other asset-backed securities — 97,780 3,931 101,711 Equity investments Financial 76,051 — — 76,051 Utilities/Energy 54,388 — — 54,388 Consumer oriented 54,529 — — 54,529 Industrial 53,936 — — 53,936 Bond funds 156,563 — — 156,563 All other 75,142 — — 75,142 Short-term investments 404,204 27,922 — 432,126 Other investments 607 31,155 409 32,171 Other assets — 1,731 — 1,731 Total assets categorized within the fair value hierarchy $ 877,791 $ 2,319,990 $ 19,098 3,216,879 Assets carried at NAV, which approximates fair value and which are not categorized within the fair value hierarchy, reported as a part of: Investment in unconsolidated subsidiaries 210,759 Other investments 20,130 Total assets at fair value $ 3,447,768 |
Summary of quantitative information about Level 3 fair value measurements | Quantitative Information Regarding Level 3 Valuations Fair Value at ($ in thousands) December 31, 2018 December 31, 2017 Valuation Technique Unobservable Input Range Assets: Corporate debt, limited observable inputs $4,322 $13,703 Market Comparable Comparability Adjustment 0% - 5% (2.5%) Discounted Cash Flows Comparability Adjustment 0% - 5% (2.5%) Residential mortgage-backed and other asset-backed securities $3,850 $4,986 Market Comparable Comparability Adjustment 0% - 5% (2.5%) Discounted Cash Flows Comparability Adjustment 0% - 5% (2.5%) Other investments $3 $409 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, 2018 Level 3 Fair Value Measurements – Assets (In thousands) Corporate Debt Asset-backed Securities Other investments Total Balance December 31, 2017 $ 13,703 $ 4,986 $ 409 $ 19,098 Total gains (losses) realized and unrealized: Included in earnings, as a part of: Net investment income (148 ) 2 — (146 ) Net realized investment gains (losses) (8 ) — (40 ) (48 ) Included in other comprehensive income (233 ) (105 ) — (338 ) Purchases 8,005 20,093 — 28,098 Sales (6,406 ) (438 ) (366 ) (7,210 ) Transfers in 2,627 — — 2,627 Transfers out (13,218 ) (20,688 ) — (33,906 ) Balance December 31, 2018 $ 4,322 $ 3,850 $ 3 $ 8,175 Change in unrealized gains (losses) included in earnings for the above period for Level 3 assets held at period-end $ — $ — $ — $ — December 31, 2017 Level 3 Fair Value Measurements – Assets (In thousands) Corporate Debt Asset-backed Securities Other investments Total Balance December 31, 2016 $ 14,810 $ 3,007 $ 3 $ 17,820 Total gains (losses) realized and unrealized: Included in earnings, as a part of: Net investment income (163 ) — — (163 ) Net realized investment gains (losses) 13 — (143 ) (130 ) Included in other comprehensive income (369 ) (71 ) 140 (300 ) Purchases 13,016 2,627 — 15,643 Sales (4,837 ) — (912 ) (5,749 ) Transfers in 999 — 1,321 2,320 Transfers out (9,766 ) (577 ) — (10,343 ) Balance December 31, 2017 $ 13,703 $ 4,986 $ 409 $ 19,098 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 | The carrying value of these interests is based on the NAV provided and was considered to approximate the fair value of the interests. For investment in unconsolidated subsidiaries, ProAssurance recognizes any changes in the NAV of its interests in equity in earnings (loss) of unconsolidated subsidiaries during the period of change. In accordance with GAAP , the fair value of these investments was not classified within the fair value hierarchy. The amount of ProAssurance's unfunded commitments related to these investments as of December 31, 2018 and fair values of these investments as of December 31, 2018 and 2017 was as follows: Unfunded Fair Value (In thousands) December 31, December 31, December 31, Equity investments: Mortgage fund (1)* $ — $ 20,292 $ — Investment in unconsolidated subsidiaries: Private debt funds (2) $ 20,954 18,196 42,206 Long equity fund (3) None 6,561 7,847 Long/short equity funds (4) None 28,805 31,352 Non-public equity funds (5) $ 80,076 114,811 100,062 Multi-strategy fund of funds (6) None 9,322 9,100 Credit funds (7) $ 8,916 29,164 6,561 Long/short commodities fund (8) None 12,958 13,025 Strategy focused funds (9) $ 24,539 48,619 606 268,436 210,759 Other investments: Mortgage fund (1)* See above — 20,130 Total investments carried at NAV $ 288,728 $ 230,889 * In the first quarter of 2018, ProAssurance began presenting this investment previously reported as a part of other investments as a part of equity investments on the Consolidated Balance Sheet. Prior year amounts have not been reclassified. Below is additional information regarding each of the investments listed in the table above as of December 31, 2018 . (1) This investment fund is focused on the structured mortgage market. The fund will primarily invest in U.S. Agency mortgage-backed securities. Redemptions are allowed at the end of any calendar quarter with a prior notice requirement of 65 days and are paid within 45 days at the end of the redemption dealing day. (2) This investment is comprised of interests in three 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 two do 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 three to eight years. (3) This 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. (4) This investment is 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 . (5) This investment is 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, debt including senior, second lien and mezzanine, 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 nine years. (6) 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. (7) This investment is comprised of three unrelated LP funds. Two funds seek to obtain superior risk-adjusted absolute returns through a diversified portfolio of debt securities, including bonds, loans and other asset-backed instruments. The remaining fund seeks event driven opportunities across the corporate credit spectrum. Two funds are allowed redemptions at any quarter-end with a prior notice requirement of 90 days ; one fund permits redemption at any quarter-end with a prior notice requirement of 180 days . (8) 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 one -year lock-up period, redemptions are allowed with a prior notice requirement of 30 days and are payable within 30 days . (9) This investment is comprised of multiple unrelated LPs/LLCs funds. One fund is a LLC focused on investing in North American consumer products companies, comprised of equity and equity-related securities, as well as debt instruments. Redemptions are not permitted. Another fund is a LP focused on North American energy infrastructure assets that allows redemption with consent of the General Partner. The remaining funds are real estate focused LPs, one of which allows for redemption with prior notice. |
Financial instruments not measured at fair value | The following table provides the estimated fair value of ProAssurance's 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 primarily fall within the Level 3 fair value category. December 31, 2018 December 31, 2017 (In thousands) Carrying Fair Carrying Fair Financial assets: BOLI $ 64,096 $ 64,096 $ 62,113 $ 62,113 Other investments $ 2,943 $ 2,943 $ 58,546 $ 69,095 Other assets $ 35,921 $ 35,468 $ 34,020 $ 33,742 Financial liabilities: Senior notes due 2023* $ 250,000 $ 264,810 $ 250,000 $ 273,153 Revolving Credit Agreement* $ — $ — $ 123,000 $ 123,000 Mortgage Loans* $ 39,064 $ 39,064 $ 40,460 $ 40,460 Other liabilities $ 21,300 $ 21,300 $ 21,154 $ 21,154 * Carrying value excludes debt issuance costs. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost and estimated fair value of available-for-sale fixed maturities and equity securities | Available-for-sale fixed maturities at December 31, 2018 and December 31, 2017 included the following: December 31, 2018 (In thousands) Amortized Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Fixed maturities, available for sale U.S. Treasury obligations $ 121,274 $ 331 $ 1,404 $ 120,201 U.S. Government-sponsored enterprise obligations 35,758 25 429 35,354 State and municipal bonds 289,544 4,877 649 293,772 Corporate debt 1,244,577 3,328 24,430 1,223,475 Residential mortgage-backed securities 184,463 814 4,039 181,238 Agency commercial mortgage-backed securities 13,296 12 200 13,108 Other commercial mortgage-backed securities 31,330 38 375 30,993 Other asset-backed securities 196,583 254 1,180 195,657 $ 2,116,825 $ 9,679 $ 32,706 $ 2,093,798 December 31, 2017 (In thousands) Amortized Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Fixed maturities, available for sale U.S. Treasury obligations $ 134,323 $ 485 $ 1,181 $ 133,627 U.S. Government-sponsored enterprise obligations 21,089 73 206 20,956 State and municipal bonds 618,414 14,248 419 632,243 Corporate debt 1,157,660 15,205 5,707 1,167,158 Residential mortgage-backed securities 196,741 2,438 1,335 197,844 Agency commercial mortgage-backed securities 10,827 23 108 10,742 Other commercial mortgage-backed securities 16,004 91 134 15,961 Other asset-backed securities 102,130 47 466 101,711 $ 2,257,188 $ 32,610 $ 9,556 $ 2,280,242 |
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, 2018 , 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 $ 121,274 $ 27,187 $ 74,196 $ 18,416 $ 402 $ 120,201 U.S. Government-sponsored enterprise obligations 35,758 3,279 12,301 19,640 134 35,354 State and municipal bonds 289,544 10,506 126,225 129,118 27,923 293,772 Corporate debt 1,244,577 147,223 726,570 324,467 25,215 1,223,475 Residential mortgage-backed securities 184,463 181,238 Agency commercial mortgage-backed securities 13,296 13,108 Other commercial mortgage-backed securities 31,330 30,993 Other asset-backed securities 196,583 195,657 $ 2,116,825 $ 2,093,798 |
Schedule of 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, 2018 and December 31, 2017 , including the length of time the investment had been held in a continuous unrealized loss position. December 31, 2018 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 $ 97,969 $ 1,405 $ 20,221 $ 119 $ 77,748 $ 1,286 U.S. Government-sponsored enterprise obligations 33,677 429 20,479 126 13,198 303 State and municipal bonds 63,094 648 30,924 143 32,170 505 Corporate debt 938,651 24,429 447,891 8,804 490,760 15,625 Residential mortgage-backed securities 157,120 4,039 27,311 209 129,809 3,830 Agency commercial mortgage-backed securities 9,822 200 4,566 22 5,256 178 Other commercial mortgage-backed securities 22,924 375 13,348 164 9,576 211 Other asset-backed securities 142,470 1,181 70,218 236 72,252 945 $ 1,465,727 $ 32,706 $ 634,958 $ 9,823 $ 830,769 $ 22,883 December 31, 2017 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 $ 110,788 $ 1,181 $ 67,135 $ 554 $ 43,653 $ 627 U.S. Government-sponsored enterprise obligations 17,032 206 10,182 64 6,850 142 State and municipal bonds 23,122 419 15,168 102 7,954 317 Corporate debt 487,578 5,707 365,541 2,730 122,037 2,977 Residential mortgage-backed securities 109,659 1,335 64,121 402 45,538 933 Agency commercial mortgage-backed securities 4,423 108 2,458 34 1,965 74 Other commercial mortgage-backed securities 12,878 134 7,939 82 4,939 52 Other asset-backed securities 85,358 466 70,924 346 14,434 120 $ 850,838 $ 9,556 $ 603,468 $ 4,314 $ 247,370 $ 5,242 |
Schedule of other information regarding sales and purchases of fixed maturity available-for-sale securities | Other information regarding sales and purchases of fixed maturity available-for-sale securities is as follows: Year Ended December 31 (In millions) 2018 2017 2016 Proceeds from sales (exclusive of maturities and paydowns) $ 599.6 $ 530.2 $ 361.8 Purchases $ 780.7 $ 614.4 $ 636.4 |
Schedule of net investment income | Net investment income by investment category was as follows: Year Ended December 31 (In thousands) 2018 2017 2016 Fixed maturities $ 69,515 $ 75,669 $ 85,818 Equities 21,418 17,198 14,887 Short-term investments, including Other 5,649 7,793 3,402 BOLI 1,983 1,979 2,008 Investment fees and expenses (6,681 ) (6,977 ) (6,103 ) Net investment income $ 91,884 $ 95,662 $ 100,012 |
Schedule of investment in unconsolidated subsidiaries | ProAssurance's investment in unconsolidated subsidiaries were as follows: December 31, 2018 Carrying Value (In thousands) Percentage December 31, December 31, Qualified affordable housing project tax credit partnerships See below $ 65,677 $ 84,607 Other tax credit partnerships See below 3,757 6,118 All other investments, primarily investment fund LPs/LLCs See below 298,323 239,866 $ 367,757 $ 330,591 |
Schedule of equity method investments | Losses recorded and tax credits recognized related to ProAssurance's tax credit partnership investments were as follows: Year Ended December 31 (In thousands) 2018 2017 2016 Qualified affordable housing project tax credit partnerships Losses recorded $ 18,889 $ 14,297 $ 20,047 Tax credits recognized $ 18,474 $ 17,774 $ 18,531 Historic tax credit partnerships Losses recorded $ 5,434 $ 6,355 $ 4,771 Tax credits recognized $ 2,567 $ 5,337 $ 9,018 |
Schedule of net realized investment gains (losses) | The following table provides detailed information regarding net realized investment gains (losses): Year Ended December 31 (In thousands) 2018 2017 2016 Total OTTI losses: State and municipal bonds $ — $ (850 ) $ (100 ) Corporate debt (490 ) (419 ) (7,604 ) Investment in unconsolidated subsidiaries — (11,931 ) — Other investments — — (3,130 ) Portion of OTTI losses recognized in other comprehensive income before taxes: Corporate debt — 248 1,068 Net impairment losses recognized in earnings (490 ) (12,952 ) (9,766 ) Gross realized gains, available-for-sale fixed maturities 5,942 6,653 12,451 Gross realized (losses), available-for-sale fixed maturities (5,799 ) (3,123 ) (7,038 ) Net realized gains (losses), short-term investments (1 ) (2 ) 18 Net realized gains (losses), trading fixed maturities (100 ) — — Net realized gains (losses), equity investments 12,230 10,724 6,632 Net realized gains (losses), other investments 1,340 2,963 1,115 Change in unrealized holding gains (losses), trading fixed maturities (317 ) — — Change in unrealized holding gains (losses), equity investments (52,707 ) 11,243 30,557 Change in unrealized holding gains (losses), convertible securities, carried at fair value (3,849 ) 896 899 Other 263 7 7 Net realized investment gains (losses) $ (43,488 ) $ 16,409 $ 34,875 |
Schedule of 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) 2018 2017 2016 Balance beginning of period $ 1,313 $ 1,158 $ 5,751 Additional credit losses recognized during the period, related to securities for which: No OTTI has been previously recognized — 171 2,398 OTTI has been previously recognized — — 2,154 Reductions due to: Securities sold during the period (realized) (1,220 ) (16 ) (9,145 ) Balance December 31 $ 93 $ 1,313 $ 1,158 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Insurance [Abstract] | |
Summary of the effect of reinsurance on premiums written and earned | The effects of reinsurance for the years ended December 31, 2018 , 2017 and 2016 were as follows: Year Ended December 31 (In thousands) 2018 2017 2016 Direct $ 910,198 $ 842,968 $ 794,377 Assumed 47,113 31,908 40,637 Ceded (122,397 ) (110,858 ) (96,481 ) Net premiums written $ 834,914 $ 764,018 $ 738,533 Direct $ 903,354 $ 821,249 $ 790,791 Assumed 41,535 27,629 37,805 Ceded (126,036 ) (110,347 ) (95,315 ) Net premiums earned $ 818,853 $ 738,531 $ 733,281 Losses and loss adjustment expenses $ 675,784 $ 592,218 $ 515,242 Reinsurance recoveries (82,574 ) (123,060 ) (72,013 ) Net losses and loss adjustment expenses $ 593,210 $ 469,158 $ 443,229 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Summary of components of deferred tax assets and liabilities | Significant components of ProAssurance’s deferred tax assets and liabilities were as follows: December 31 (In thousands) 2018 2017 Deferred tax assets Unpaid loss discount $ 30,629 $ 20,368 Unearned premium adjustment 16,620 14,449 Compensation related 9,879 11,467 Unrealized losses on investments, net 4,403 — Basis differentials–investments 912 — Intangibles 433 514 Foreign NOL 6,795 4,116 Total gross deferred tax assets 69,671 50,914 Valuation allowance (7,074 ) (4,116 ) Total deferred tax assets, net of valuation allowance 62,597 46,798 Deferred tax liabilities Deferred policy acquisition costs (9,972 ) (6,333 ) Unpaid loss discount–transition (10,128 ) — Unrealized gains on investments, net — (5,166 ) Fixed assets (542 ) (826 ) Basis differentials–investments — (10,397 ) Intangibles (11,243 ) (12,548 ) Other (1,604 ) (1,598 ) Total deferred tax liabilities (33,489 ) (36,868 ) Net deferred tax assets (liabilities) $ 29,108 $ 9,930 |
Summary of reconciliation of unrecognized tax benefits | A reconciliation of the beginning and ending amounts of unrecognized tax benefits for 2018 , 2017 and 2016 , were as follows: (In thousands) 2018 2017 2016 Balance at January 1 $ 5,341 $ 8,353 $ 8,195 Increases for tax positions taken during the current year — — 361 (Decreases) for tax positions taken during the current year (777 ) (3,500 ) — (Decreases)/increases for tax positions taken during prior years (800 ) 700 — (Decreases) relating to a lapse of the applicable statute of limitations (163 ) (212 ) (203 ) Balance at December 31 $ 3,601 $ 5,341 $ 8,353 |
Summary of components of tax expense | Income tax expense (benefit) for each of the years ended December 31, 2018 , 2017 and 2016 consisted of the following: (In thousands) 2018 2017 2016 Provision for income taxes Current expense (benefit) Federal and foreign $ (6,509 ) $ 19,546 $ 15,857 State 301 120 729 Total current expense (benefit) (6,208 ) 19,666 16,586 Deferred expense (benefit) Federal and foreign (11,765 ) 1,331 8,284 State (59 ) 362 250 Total deferred expense (benefit) (11,824 ) 1,693 8,534 Total income tax expense (benefit) $ (18,032 ) $ 21,359 $ 25,120 |
Summary of reconciliation of expected income tax expense to actual income tax expense | A reconciliation of “expected” income tax expense (benefit) (21% of income before income taxes for 2018; 35% of income before income taxes for 2017 and 2016) to actual income tax expense (benefit) for each of the years ended December 31, 2018 , 2017 and 2016 were as follows: (In thousands) 2018 2017 2016 Computed “expected” tax expense $ 6,095 $ 45,018 $ 61,670 Tax-exempt income (2,505 ) (8,356 ) (9,917 ) Tax credits (21,059 ) (23,111 ) (27,549 ) Non-U.S. operating results 2,269 918 (1,688 ) Excess tax benefit on share-based compensation (275 ) (2,762 ) — Change in federal corporate tax rate — 6,541 — Change in limitation of future deductibility of certain executive compensation — 3,497 — Provision-to-return differences (2,309 ) (1,979 ) 1,209 Other (248 ) 1,593 1,395 Total income tax expense (benefit) $ (18,032 ) $ 21,359 $ 25,120 |
Reserve for Losses and Loss A_2
Reserve for Losses and Loss Adjustment Expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Insurance [Abstract] | |
Schedule of reserve for losses and loss adjustment expenses | Activity in the reserve for losses and loss adjustment expenses is summarized as follows: (In thousands) 2018 2017 2016 Balance, beginning of year $ 2,048,381 $ 1,993,428 $ 2,005,326 Less reinsurance recoverables on unpaid losses and loss adjustment expenses 335,585 273,475 249,350 Net balance, beginning of year 1,712,796 1,719,953 1,755,976 Net losses: Current year* 685,326 603,518 587,007 Favorable development of reserves established in prior years, net (92,116 ) (134,360 ) (143,778 ) Total 593,210 469,158 443,229 Paid related to: Current year (117,268 ) (106,633 ) (96,190 ) Prior years (412,711 ) (369,682 ) (383,062 ) Total paid (529,979 ) (476,315 ) (479,252 ) Net balance, end of year 1,776,027 1,712,796 1,719,953 Plus reinsurance recoverables on unpaid losses and loss adjustment expenses 343,820 335,585 273,475 Balance, end of year $ 2,119,847 $ 2,048,381 $ 1,993,428 * Current year net losses in 2018 included incurred losses of $25.4 million related to a loss portfolio transfer entered into during the second quarter of 2018 (see Note 4). |
Schedule of short-duration insurance contracts claims development | Segregated Portfolio Cell Reinsurance - Workers' Compensation Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2018 ($ in thousands) Year Ended December 31, IBNR* Cumulative Number of Reported Claims 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Accident Year Unaudited 2009 $ 17,790 $ 16,337 $ 15,886 $ 15,948 $ 15,809 $ 15,695 $ 15,618 $ 15,277 $ 15,277 $ 15,279 $ 107 2,962 2010 — $ 19,767 $ 18,265 $ 17,715 $ 17,825 $ 17,736 $ 17,541 $ 17,320 $ 17,278 17,224 $ 275 2,914 2011 — — $ 18,790 $ 19,360 $ 19,629 $ 19,282 $ 18,644 $ 18,725 $ 18,666 18,606 $ 363 3,154 2012 — — — $ 22,940 $ 21,513 $ 21,048 $ 20,028 $ 19,972 $ 19,864 19,799 $ 441 3,454 2013 — — — — $ 23,809 $ 25,310 $ 26,758 $ 26,619 $ 26,260 26,033 $ 544 3,723 2014 — — — — — $ 28,248 $ 28,423 $ 29,000 $ 28,373 28,281 $ 942 4,433 2015 — — — — — — $ 36,423 $ 32,519 $ 28,746 27,548 $ 1,601 4,949 2016 — — — — — — — $ 37,601 $ 34,055 30,998 $ 2,528 5,326 2017 — — — — — — — — $ 42,725 38,594 $ 7,314 5,699 2018 — — — — — — — — — 43,654 $ 18,788 6,228 Total $ 266,016 * Includes expected development on reported claims Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (In thousands) Year Ended December 31, 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Accident Year Unaudited 2009 $ 5,000 $ 10,782 $ 13,202 $ 14,660 $ 14,881 $ 14,954 $ 15,147 $ 15,165 $ 15,166 $ 15,172 2010 — $ 6,503 $ 12,904 $ 15,087 $ 16,214 $ 16,757 $ 16,842 $ 16,810 $ 16,850 16,904 2011 — — $ 5,940 $ 14,045 $ 17,197 $ 17,869 $ 18,054 $ 18,177 $ 18,176 18,185 2012 — — — $ 7,808 $ 14,740 $ 17,728 $ 18,474 $ 19,208 $ 19,402 19,328 2013 — — — — $ 8,131 $ 19,054 $ 24,268 $ 25,209 $ 25,366 25,489 2014 — — — — — $ 9,933 $ 21,880 $ 26,173 $ 26,810 26,959 2015 — — — — — — $ 11,257 $ 21,706 $ 23,977 24,781 2016 — — — — — — — $ 10,980 $ 23,003 26,285 2017 — — — — — — — — $ 12,404 24,791 2018 — — — — — — — — — 12,517 Total 210,411 All outstanding liabilities before 2009, net of reinsurance 912 Liabilities for losses and loss adjustment expenses, net of reinsurance $ 56,517 Medical Technology Liability Claims-Made Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2018 ($ in thousands) Year Ended December 31, IBNR* Cumulative Number of Reported Claims 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Accident Year Unaudited 2009 $ 30,462 $ 31,183 $ 27,523 $ 26,181 $ 23,425 $ 21,733 $ 20,551 $ 19,264 $ 18,176 $ 17,984 $ 251 699 2010 — $ 26,077 $ 27,063 $ 25,175 $ 23,307 $ 19,315 $ 17,439 $ 16,047 $ 16,878 18,611 $ 402 498 2011 — — $ 17,249 $ 20,930 $ 19,166 $ 15,836 $ 13,794 $ 12,487 $ 12,358 8,202 $ 500 521 2012 — — — $ 11,162 $ 9,989 $ 8,906 $ 7,441 $ 5,824 $ 4,797 5,051 $ 732 220 2013 — — — — $ 9,807 $ 9,955 $ 9,536 $ 7,226 $ 4,697 3,566 $ 380 218 2014 — — — — — $ 9,989 $ 10,306 $ 9,012 $ 8,984 7,679 $ 2,544 272 2015 — — — — — — $ 9,376 $ 8,757 $ 7,193 5,929 $ 2,770 155 2016 — — — — — — — $ 9,200 $ 8,467 7,413 $ 3,482 180 2017 — — — — — — — — $ 11,049 10,143 $ 7,834 95 2018 — — — — — — — — — 10,141 $ 9,818 188 Total $ 94,719 * Includes expected development on reported claims Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (In thousands) Year Ended December 31, 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Accident Year Unaudited 2009 $ 116 $ 5,071 $ 7,742 $ 14,675 $ 14,933 $ 15,097 $ 15,184 $ 15,186 $ 16,515 $ 17,522 2010 — $ 485 $ 3,557 $ 8,491 $ 12,283 $ 11,725 $ 12,146 $ 12,253 $ 15,366 17,660 2011 — — $ 118 $ 2,034 $ 3,846 $ 5,062 $ 7,376 $ 7,240 $ 7,799 7,664 2012 — — — $ 568 $ 1,520 $ 2,805 $ 3,247 $ 3,366 $ 3,676 3,800 2013 — — — — $ 102 $ 1,029 $ 1,967 $ 2,599 $ 3,092 3,102 2014 — — — — — $ 388 $ 1,527 $ 2,564 $ 3,046 3,724 2015 — — — — — — $ 25 $ 440 $ 1,625 2,097 2016 — — — — — — — $ 53 $ 1,690 2,365 2017 — — — — — — — — $ 56 1,681 2018 — — — — — — — — — 6 Total 59,621 All outstanding liabilities before 2009, net of reinsurance 1,101 Liabilities for losses and loss adjustment expenses, net of reinsurance $ 36,199 Syndicate 1729 Casualty Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2018 ($ in thousands) Year Ended December 31, IBNR (1) Cumulative Number of Reported Claims (2) 2014 2015 2016 2017 2018 Accident Year Unaudited 2014 $ 6,110 $ 5,812 $ 5,610 $ 5,547 $ 5,472 $ 1,086 nm 2015 — $ 14,810 $ 14,510 $ 14,398 14,232 $ 1,984 nm 2016 — — $ 19,535 $ 19,669 19,552 $ 5,098 nm 2017 — — — $ 22,069 21,824 $ 9,960 nm 2018 — — — — 18,688 $ 16,014 nm Total $ 79,768 (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) Year Ended December 31, 2014 2015 2016 2017 2018 Accident Year Unaudited 2014 $ 20 $ 474 $ 4,092 $ 4,214 $ 4,320 2015 — $ 724 $ 6,307 $ 10,313 10,947 2016 — — $ 2,495 $ 8,441 12,869 2017 — — — $ 2,611 8,301 2018 — — — — 1,852 Total 38,289 All outstanding liabilities before 2014, net of reinsurance — Liabilities for losses and loss adjustment expenses, net of reinsurance $ 41,479 Syndicate 1729 Property Insurance Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2018 ($ in thousands) Year Ended December 31, IBNR* Cumulative Number of Reported Claims 2014 2015 2016 2017 2018 Accident Year Unaudited 2014 $ 890 $ 1,089 $ 888 $ 864 $ 866 $ (6 ) 118 2015 — $ 5,519 $ 5,917 $ 6,194 6,159 $ 1,128 921 2016 — — $ 11,896 $ 12,984 12,823 $ 12 2,484 2017 — — — $ 15,018 17,634 $ (883 ) 4,240 2018 — — — — 20,636 $ 6,898 3,681 Total $ 58,118 * Includes expected development on reported claims Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (In thousands) Year Ended December 31, 2014 2015 2016 2017 2018 Accident Year Unaudited 2014 $ 267 $ 1,005 $ 836 $ 854 $ 857 2015 — $ 3,165 $ 4,022 $ 4,808 4,869 2016 — — $ 7,751 $ 10,939 12,343 2017 — — — $ 8,221 16,439 2018 — — — — 9,918 Total 44,426 All outstanding liabilities before 2014, net of reinsurance — Liabilities for losses and loss adjustment expenses, net of reinsurance $ 13,692 Syndicate 1729 Property Reinsurance Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2018 ($ in thousands) Year Ended December 31, IBNR (1) Cumulative Number of Reported Claims (2) 2014 2015 2016 2017 2018 Accident Year Unaudited 2014 $ 831 $ 929 $ 989 $ 989 $ 1,125 $ — nm 2015 $ 2,788 $ 2,825 $ 2,275 2,328 $ (91 ) nm 2016 $ 4,497 $ 4,050 3,368 $ 943 nm 2017 $ 6,861 7,832 $ 371 nm 2018 8,840 $ 8,154 nm Total $ 23,493 (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) Year Ended December 31, 2014 2015 2016 2017 2018 Accident Year Unaudited 2014 $ 79 $ 917 $ 984 $ 984 $ 1,125 2015 — $ 1,313 $ 1,804 $ 1,996 2,234 2016 — — $ 613 $ 1,667 2,136 2017 — — — $ 4,147 7,300 2018 — — — — 547 Total 13,342 All outstanding liabilities before 2014, net of reinsurance — Liabilities for losses and loss adjustment expenses, net of reinsurance $ 10,151 Healthcare Professional Liability Claims-Made Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2018 ($ in thousands) Year Ended December 31, IBNR* Cumulative Number of Reported Claims 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Accident Year Unaudited 2009 $ 379,259 $ 370,642 $ 345,714 $ 320,368 $ 284,511 $ 265,478 $ 246,146 $ 230,849 $ 224,768 $ 220,703 $ (455 ) 3,828 2010 — $ 364,996 $ 354,787 $ 338,170 $ 312,813 $ 291,553 $ 279,713 $ 270,484 $ 258,466 257,714 $ (243 ) 3,847 2011 — — $ 348,916 $ 344,808 $ 331,884 $ 305,540 $ 289,400 $ 278,258 $ 264,777 254,329 $ (2,091 ) 3,532 2012 — — — $ 341,289 $ 324,418 $ 319,613 $ 306,956 $ 291,075 $ 279,589 271,110 $ 276 3,702 2013 — — — — $ 315,346 $ 304,209 $ 296,550 $ 287,140 $ 272,364 258,251 $ 173 3,783 2014 — — — — — $ 290,020 $ 289,397 $ 280,043 $ 267,442 256,968 $ (5,200 ) 3,320 2015 — — — — — — $ 276,492 $ 269,980 $ 271,138 270,814 $ (8,030 ) 3,266 2016 — — — — — — — $ 271,765 $ 274,643 287,551 $ (21,456 ) 3,481 2017 — — — — — — — — $ 283,746 295,883 $ (11,228 ) 3,677 2018 — — — — — — — — — 320,772 $ 129,334 3,558 Total $ 2,694,095 * Includes expected development on reported claims Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (In thousands) Year Ended December 31, 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Accident Year Unaudited 2009 $ 15,051 $ 71,272 $ 114,318 $ 153,563 $ 178,445 $ 191,420 $ 200,425 $ 205,372 $ 209,016 $ 213,568 2010 — $ 15,464 $ 69,551 $ 137,712 $ 180,432 $ 209,777 $ 221,693 $ 236,171 $ 240,945 243,675 2011 — — $ 14,417 $ 71,208 $ 133,004 $ 177,089 $ 198,112 $ 214,502 $ 224,982 233,103 2012 — — — $ 15,382 $ 73,571 $ 145,488 $ 190,997 $ 215,220 $ 231,652 244,512 2013 — — — — $ 16,938 $ 69,657 $ 127,496 $ 171,681 $ 197,265 213,879 2014 — — — — — $ 16,764 $ 59,485 $ 116,791 $ 154,236 186,239 2015 — — — — — — $ 9,172 $ 55,731 $ 111,741 161,896 2016 — — — — — — — $ 9,027 $ 51,869 109,756 2017 — — — — — — — — $ 16,309 63,171 2018 — — — — — — — — — 14,051 Total 1,683,850 All outstanding liabilities before 2009, net of reinsurance 11,724 Liabilities for losses and loss adjustment expenses, net of reinsurance $ 1,021,969 Healthcare Professional Liability Occurrence Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2018 ($ in thousands) Year Ended December 31, IBNR* Cumulative Number of Reported Claims 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Accident Year Unaudited 2009 $ 34,450 $ 35,366 $ 36,802 $ 37,437 $ 34,099 $ 32,675 $ 28,731 $ 26,340 $ 24,572 $ 23,387 $ 1,519 246 2010 — $ 41,721 $ 43,238 $ 43,195 $ 42,233 $ 37,920 $ 35,831 $ 33,361 $ 29,338 26,501 $ 946 290 2011 — — $ 45,882 $ 44,956 $ 41,453 $ 39,917 $ 37,150 $ 35,004 $ 32,343 29,784 $ 2,136 342 2012 — — — $ 45,703 $ 46,513 $ 44,848 $ 40,692 $ 34,774 $ 32,691 29,857 $ 3,816 399 2013 — — — — $ 32,746 $ 36,602 $ 35,624 $ 34,393 $ 30,906 26,919 $ 971 356 2014 — — — — — $ 30,420 $ 29,918 $ 32,143 $ 29,869 25,885 $ 2,778 355 2015 — — — — — — $ 35,648 $ 35,347 $ 37,346 40,960 $ 4,667 355 2016 — — — — — — — $ 29,609 $ 28,790 27,240 $ 6,244 322 2017 — — — — — — — — $ 24,571 23,760 $ 19,890 270 2018 — — — — — — — — — 38,420 $ 36,196 118 Total $ 292,713 * Includes expected development on reported claims Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (In thousands) Year Ended December 31, 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Accident Year Unaudited 2009 $ 175 $ 2,255 $ 5,067 $ 7,947 $ 10,823 $ 13,248 $ 15,380 $ 16,025 $ 16,270 $ 17,022 2010 — $ 285 $ 1,881 $ 5,647 $ 9,120 $ 15,147 $ 21,837 $ 22,804 $ 23,313 23,832 2011 — — $ 291 $ 2,803 $ 8,059 $ 16,544 $ 19,197 $ 21,416 $ 23,194 24,539 2012 — — — $ 363 $ 2,430 $ 7,705 $ 12,212 $ 19,275 $ 21,435 23,095 2013 — — — — $ 369 $ 3,170 $ 7,826 $ 14,753 $ 16,787 18,949 2014 — — — — — $ 394 $ 2,260 $ 7,460 $ 10,519 14,604 2015 — — — — — — $ (350 ) $ 786 $ 4,854 11,626 2016 — — — — — — — $ (182 ) $ (195 ) 2,883 2017 — — — — — — — — $ (6,809 ) (5,858 ) 2018 — — — — — — — — — 65 Total 130,757 All outstanding liabilities before 2009, net of reinsurance 7,985 Liabilities for losses and loss adjustment expenses, net of reinsurance $ 169,941 Workers' Compensation Insurance Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2018 ($ in thousands) Year Ended December 31, IBNR* Cumulative Number of Reported Claims 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Accident Year Unaudited 2009 $ 45,354 $ 45,354 $ 45,354 $ 45,354 $ 47,811 $ 48,372 $ 47,905 $ 47,480 $ 47,480 $ 47,480 $ 80 10,129 2010 — $ 55,852 $ 55,852 $ 55,852 $ 54,837 $ 54,779 $ 55,200 $ 54,600 $ 54,600 54,600 $ 58 12,913 2011 — — $ 65,665 $ 65,783 $ 71,521 $ 72,280 $ 72,420 $ 72,495 $ 72,795 72,795 $ 354 15,244 2012 — — — $ 80,285 $ 76,551 $ 75,848 $ 76,357 $ 75,836 $ 75,636 75,136 $ 724 16,204 2013 — — — — $ 86,973 $ 85,935 $ 86,928 $ 88,010 $ 88,810 88,810 $ 1,017 16,429 2014 — — — — — $ 93,019 $ 93,529 $ 93,029 $ 92,229 92,229 $ 3,350 16,210 2015 — — — — — — $ 100,101 $ 100,454 $ 98,454 97,654 $ 8,522 16,548 2016 — — — — — — — $ 101,348 $ 97,348 92,148 $ 13,540 15,972 2017 — — — — — — — — $ 99,874 99,874 $ 12,489 16,058 2018 — — — — — — — — — 118,095 $ 32,816 17,556 Total $ 838,821 * Includes expected development on reported claims Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (In thousands) Year Ended December 31, 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Accident Year Unaudited 2009 $ 14,701 $ 31,465 $ 39,351 $ 43,436 $ 45,689 $ 46,321 $ 46,928 $ 47,012 $ 47,089 $ 47,189 2010 — $ 20,086 $ 39,098 $ 46,762 $ 51,117 $ 52,530 $ 53,443 $ 53,734 $ 53,974 54,014 2011 — — $ 21,993 $ 50,900 $ 62,307 $ 67,945 $ 70,146 $ 70,934 $ 71,662 71,856 2012 — — — $ 27,448 $ 56,122 $ 65,908 $ 70,558 $ 72,766 $ 73,662 73,676 2013 — — — — $ 30,554 $ 63,825 $ 76,813 $ 82,369 $ 85,689 86,783 2014 — — — — — $ 30,368 $ 65,922 $ 77,631 $ 85,022 87,314 2015 — — — — — — $ 32,078 $ 65,070 $ 78,947 83,483 2016 — — — — — — — $ 28,377 $ 58,192 69,237 2017 — — — — — — — — $ 31,586 70,333 2018 — — — — — — — — — 41,619 Total 685,504 All outstanding liabilities before 2009, net of reinsurance 2,208 Liabilities for losses and loss adjustment expenses, net of reinsurance $ 155,525 |
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 Workers' Compensation Insurance 33.2 % 36.5 % 14.1 % 7.1 % 3.3 % 1.3 % 0.7 % 0.3 % 0.1 % 0.2 % 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 5.4% 19.5% 22.8% 17.0% 10.4% 5.9% 4.6% 2.4% 1.4% 2.1% Healthcare Professional Liability Occurrence (2.3%) 6.1% 15.0% 17.6% 15.2% 11.7% 6.1% 3.1% 1.5% 3.2% Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Unaudited Syndicate 1729 Casualty 18.7 % 40.3 % 22.6 % 12.8 % 3.2 % 1.1 % 1.0 % 0.4 % — % — % Syndicate 1729 Property Insurance 81.4 % 15.9 % 2.1 % 0.2 % 0.2 % 0.1 % 0.1 % 0.1 % — % — % Syndicate 1729 Property Reinsurance 82.0 % 13.3 % 2.8 % 1.1 % 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 Medical Technology Liability 2.6 % 19.1 % 19.7 % 16.4 % 8.6 % 1.6 % 2.6 % 5.0 % 9.9 % 5.6 % Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Unaudited Segregated Portfolio Cell Reinsurance - Workers' Compensation 34.5 % 38.5 % 14.3 % 4.6 % 1.7 % 0.6 % 0.2 % 0.1 % 0.2 % — % |
Schedule of reconciliation of claims development to liability | Below is a reconciliation of the claims development information to the Consolidated Balance Sheet: (In thousands) December 31, 2018 Net outstanding liabilities Healthcare professional liability claims-made $ 1,021,969 Healthcare professional liability occurrence 169,941 Medical technology liability claims-made 36,199 Workers' compensation insurance 155,525 Segregated portfolio cell reinsurance - workers' compensation 56,517 Syndicate 1729 casualty 41,479 Syndicate 1729 property insurance 13,692 Syndicate 1729 property reinsurance 10,151 Other short-duration lines 91,365 Liabilities for losses and loss adjustment expenses, net of reinsurance 1,596,838 Reinsurance recoverable on unpaid losses Healthcare professional liability claims-made 151,870 Healthcare professional liability occurrence 37,683 Medical technology liability claims-made 32,604 Workers' compensation insurance 67,631 Segregated portfolio cell reinsurance - workers' compensation 24,177 Syndicate 1729 casualty 678 Syndicate 1729 property insurance 10,323 Syndicate 1729 property reinsurance 9,717 Other short-duration lines 9,137 Total reinsurance recoverable on unpaid losses and loss adjustment expenses 343,820 Reserve for the future utilization of the DDR benefit 67,200 Unallocated loss adjustment expenses 100,123 Loss portfolio transfer* 18,252 Purchase accounting 1,551 Other (7,937 ) 179,189 Gross liability for losses and loss adjustment expenses $ 2,119,847 * Represents the reserve for retroactive coverage, net of a deferred gain, related to a loss portfolio transfer entered into in the second quarter of 2018 (see Note 4). |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 . Operating Leases (In thousands) 2019 $ 4,829 2020 4,020 2021 3,557 2022 2,618 2023 1,888 Thereafter 10,212 Total minimum lease payments $ 27,124 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 were fully secured and carried at a weighted average interest rate of 1.91%. The interest rate on borrowings is set at the time the respective borrowing is initiated or renewed. — 123,000 Mortgage Loans, outstanding borrowings are secured by first priority liens on two office buildings, and bear an interest rate of three-month LIBOR plus 1.325% (4.10% and 2.86%, respectively) determined on a quarterly basis. 39,064 40,460 Total principal 289,064 413,460 Less debt issuance costs 1,307 1,649 Debt less debt issuance costs $ 287,757 $ 411,811 |
Schedule of debt maturities | At December 31, 2018 , contractual maturities of the Mortgages Loans for each of the next five years, excluding interest payments, are as follows: (In thousands) Principal Payments Due by Period 2019 $ 1,448 2020 1,503 2021 1,559 2022 1,617 2023 1,677 Thereafter 31,260 Total principal payments $ 39,064 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of interest rate caps | The following table provides a summary of the volume and fair value position of the interest rate cap as well as the reporting location in the Consolidated Balance Sheets as of December 31, 2018 and 2017 . ($ in thousands) December 31, 2018 December 31, 2017 Derivatives Not Designated as Hedging Instruments Location in the Consolidated Balance Sheets Number of Instruments Notional Amount (1) Estimated Fair Value (2) Number of Instruments Notional Amount (1) Estimated Fair Value (2) Interest Rate Cap Other assets 1 $ 35,000 $ 1,884 1 $ 35,000 $ 1,731 (1) Volume is represented by the derivative instrument's notional amount. (2) Additional information regarding the fair value of the Company's interest rate cap is provided in Note 2. The following table presents the pre-tax impact of the change in the fair value of the interest rate cap and the reporting location in the Consolidated Statements of Income and Comprehensive Income for the years ended December 31, 2018 , 2017 and 2016 . Gains (Losses) Recognized in Income on Derivatives (In thousands) Year Ended December 31 Derivatives Not Designated as Hedging Instruments Location in the Consolidated Statements of Income and Comprehensive Income 2018 2017 2016 Interest Rate Cap Interest expense $ 153 $ (339 ) $ — |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of common stock outstanding | The following is a summary of changes in common shares issued and outstanding during the years ended December 31, 2018 , 2017 and 2016 : (In thousands) 2018 2017 2016 Issued and outstanding shares - January 1 53,457 53,251 53,101 Repurchase of shares, at cost of $2 million for 2016 — — (44 ) Shares issued due to exercise of options and vesting of share-based compensation awards 135 132 108 Other shares issued for compensation and shares reissued to stock purchase plan * 45 74 86 Issued and outstanding shares - December 31 53,637 53,457 53,251 * Shares issued were valued at fair value (the market price of a ProAssurance common share on the date of issue). |
Schedule of dividends declared | ProAssurance declared cash dividends during 2018 , 2017 and 2016 as follows: Cash Dividends Declared, per Share 2018 2017 2016 First Quarter $ 0.31 $ 0.31 $ 0.31 Second Quarter $ 0.31 $ 0.31 $ 0.31 Third Quarter $ 0.31 $ 0.31 $ 0.31 Fourth Quarter* $ 0.81 $ 5.00 $ 5.00 * Includes special dividends of $0.50 per share in 2018 and $4.69 per share in both 2017 and 2016 . |
Schedule of 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) 2018 2017 2016 Reclassifications from AOCI to net income: Realized investment gains (losses) $ 274 $ 2,512 $ 2,417 Non-credit impairment losses reclassified to earnings, due to sale of securities or reclassification as a credit loss (621 ) (3 ) (3,641 ) Unrecognized losses in defined benefit plan liabilities reclassified to earnings, due to the termination and settlement of the plan — — (1,500 ) Total gains (losses) reclassified, before-tax effect (347 ) 2,509 (2,724 ) Tax effect* 73 (878 ) 953 Net reclassification adjustments $ (274 ) $ 1,631 $ (1,771 ) Deferred tax expense (benefit) included in OCI $ (9,573 ) $ (4,676 ) $ (3,078 ) * Tax effects were computed using a 21% for the year ended December 31, 2018 and a 35% rate for the years ended December 31, 2017 and 2016. |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 estimated compensation cost that will be charged to expense in future periods. Share-Based Unrecognized Compensation Cost Year Ended December 31 December 31, 2018 ($ in millions, except remaining recognition period) 2018 2017 2016 Amount Weighted Average Remaining Total share-based compensation expense $ 5.3 $ 10.6 $ 12.5 $ 5.9 1.5 Tax benefit recognized $ 1.1 $ 3.7 $ 4.4 |
Summary of activity related to management share awards | Activity for restricted share units during 2018 , 2017 and 2016 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. 2018 2017 2016 Units Weighted Units Weighted Units Weighted Beginning non-vested balance 269,520 $ 48.63 240,149 $ 44.07 178,468 $ 43.13 Granted 85,797 $ 44.73 84,565 $ 58.35 109,181 $ 45.59 Forfeited (3,878 ) $ 50.07 (4,087 ) $ 52.35 (5,954 ) $ 43.99 Vested and released (84,116 ) $ 42.90 (51,107 ) $ 43.01 (41,546 ) $ 44.04 Ending non-vested balance 267,323 $ 49.16 269,520 $ 48.63 240,149 $ 44.07 |
Summary of 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. 2018 2017 2016 Base Units Weighted Base Units Weighted Base Units Weighted Beginning non-vested balance 212,105 $ 47.11 305,240 $ 43.41 390,350 $ 44.65 Granted 27,202 $ 44.73 48,000 $ 58.35 60,000 $ 45.59 Forfeited — $ — (227 ) $ 42.79 (5,162 ) $ 43.02 Vested and released (104,105 ) $ 42.79 (140,908 ) $ 42.95 (139,948 ) $ 44.05 Ending non-vested balance 135,202 $ 49.95 212,105 $ 47.11 305,240 $ 43.41 |
Summary of market value of ProAssurance common share on the grant date fair value | Purchase match unit activity during 2018 , 2017 and 2016 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. 2018 2017 2016 Units Weighted Units Weighted Units Weighted Beginning non-vested balance 70,292 $ 49.40 72,615 $ 45.77 74,483 $ 42.80 Granted — $ — 24,444 $ 51.83 23,903 $ 50.18 Forfeited (1,594 ) $ 50.19 (2,012 ) $ 48.29 (2,875 ) $ 43.77 Vested and released (24,016 ) $ 46.28 (24,755 ) $ 41.33 (22,896 ) $ 40.88 Ending non-vested balance 44,682 $ 51.05 70,292 $ 49.40 72,615 $ 45.77 |
Summary of fully-vested employee stock options outstanding | ProAssurance also had certain fully-vested employee stock options outstanding during 2016 , as summarized below. ProAssurance had no options exercised during 2018 and 2017 and no outstanding options at December 31, 2018 , 2017 or 2016 . 2018 2017 2016 Options Weighted Options Weighted Options Weighted Outstanding, vested and exercisable, beginning of year — $ — — $ — 2,144 $ 25.02 Exercised — $ — — $ — (2,144 ) $ 25.02 Outstanding, vested and exercisable, end of year — $ — — $ — — $ — |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share, basic and diluted | The following table provides the weighted average number of common shares outstanding used in the calculation of the Company's basic and diluted earnings per share: (In thousands, except per share data) Year Ended December 31 2018 2017 2016 Weighted average number of common shares outstanding, basic 53,598 53,393 53,216 Dilutive effect of securities: Restricted Share Units 70 85 73 Performance Share Units 63 110 135 Purchase Match Units 18 23 24 Weighted average number of common shares outstanding, diluted 53,749 53,611 53,448 Effect of dilutive shares on earnings per share $ — $ (0.01 ) $ (0.01 ) |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information | Financial results by segment were as follows: Year Ended December 31, 2018 (In thousands) Specialty P&C Workers' Compensation Insurance Segregated Portfolio Cell Reinsurance Lloyd's Syndicates Corporate Inter-segment Eliminations Consolidated Net premiums earned $ 491,787 $ 186,079 73,940 $ 67,047 $ — $ — $ 818,853 Net investment income — — 1,566 3,358 86,960 — 91,884 Equity in earnings (loss) of unconsolidated subsidiaries — — — — 8,948 — 8,948 Net realized gains (losses) — — (3,149 ) (460 ) (39,879 ) — (43,488 ) Other income (expense) (1) 5,844 2,412 211 322 3,525 (2,481 ) 9,833 Net losses and loss adjustment expenses (384,431 ) (118,483 ) (38,726 ) (51,570 ) — — (593,210 ) Underwriting, policy acquisition and operating expenses (1) (112,419 ) (55,693 ) (22,426 ) (31,686 ) (18,767 ) 2,435 (238,556 ) Segregated portfolio cells dividend (expense) income — — (9,122 ) — — — (9,122 ) Interest expense — — — — (16,163 ) 46 (16,117 ) Income tax benefit (expense) — — — 317 17,715 — 18,032 Segment operating results $ 781 $ 14,315 $ 2,294 $ (12,672 ) $ 42,339 $ — $ 47,057 Significant non-cash items: Depreciation and amortization, net of accretion $ 7,050 $ 3,850 $ 441 $ (8 ) $ 9,922 $ — $ 21,255 Year Ended December 31, 2017 (In thousands) Specialty P&C Workers' Compensation Insurance Segregated Portfolio Cell Reinsurance Lloyd's Syndicates Corporate Inter-segment Eliminations Consolidated Net premiums earned $ 449,823 $ 163,309 $ 68,197 $ 57,202 $ — $ — $ 738,531 Net investment income — — 1,059 1,736 92,867 — 95,662 Equity in earnings (loss) of unconsolidated subsidiaries — — — — 8,033 — 8,033 Net realized gains (losses) — — 3,914 107 12,388 — 16,409 Other income (expense) (1) 5,688 2,096 115 (1,476 ) 2,888 (1,797 ) 7,514 Net losses and loss adjustment expenses (285,250 ) (102,233 ) (37,455 ) (44,220 ) — — (469,158 ) Underwriting, policy acquisition and operating expenses (1) (107,972 ) (52,576 ) (20,764 ) (26,963 ) (29,275 ) 1,797 (235,753 ) Segregated portfolio cells dividend (expense) income (2) (5,181 ) — (10,590 ) — — — (15,771 ) Interest expense — — — — (16,844 ) — (16,844 ) Income tax benefit (expense) (2) — — — 568 (21,927 ) — (21,359 ) Segment operating results $ 57,108 $ 10,596 $ 4,476 $ (13,046 ) $ 48,130 $ — $ 107,264 Significant non-cash items: Depreciation and amortization, net of accretion $ 7,922 $ 3,480 $ 680 $ (20 ) $ 16,734 $ — $ 28,796 Year Ended December 31, 2016 (In thousands) Specialty P&C Workers' Compensation Insurance Segregated Portfolio Cell Reinsurance Lloyd's Syndicates Corporate Inter-segment Eliminations Consolidated Net premiums earned $ 454,506 $ 161,988 $ 62,137 $ 54,650 $ — $ — $ 733,281 Net investment income — — 711 1,410 97,891 — 100,012 Equity in earnings (loss) of unconsolidated subsidiaries — — — — (5,762 ) — (5,762 ) Net realized gains (losses) — — 2,525 76 32,274 — 34,875 Other income (expense) (1) 5,306 2,218 18 1,415 1,069 (2,218 ) 7,808 Net losses and loss adjustment expenses (266,090 ) (107,791 ) (35,232 ) (34,116 ) — — (443,229 ) Underwriting, policy acquisition and operating expenses (1) (103,656 ) (53,597 ) (18,936 ) (22,832 ) (30,807 ) 2,218 (227,610 ) Segregated portfolio cells dividend (expense) income — — (8,142 ) — — — (8,142 ) Interest expense — — — — (15,032 ) — (15,032 ) Income tax benefit (expense) — — — (384 ) (24,736 ) — (25,120 ) Segment operating results $ 90,066 $ 2,818 $ 3,081 $ 219 $ 54,897 $ — $ 151,081 Significant non-cash items: Depreciation and amortization, net of accretion $ 7,268 $ 5,600 $ 595 $ 132 $ 19,194 $ — $ 32,789 (1) As a result of the third quarter 2018 segment reorganization, certain fees for services provided to the SPCs at Eastern Re and Inova Re are recorded as expenses within the Segregated Portfolio Cell Reinsurance segment and as other income within the Workers' Compensation Insurance segment. These fees are eliminated between segments in consolidation. These services primarily include SPC rental fees and were previously eliminated within the Company's Workers' Compensation segment. (2) During 2017, ProAssurance recognized a $5.2 million pre-tax expense related to previously unrecognized SPC dividend expense for the cumulative earnings of unrelated parties that have owned segregated portfolio cells at various periods since 2003 in a Bermuda captive insurance operation managed by the Company's HCPL line of business within the Specialty P&C segment. The expense recorded in 2017 related to periods prior to the then current period and was unrelated to the Company's Cayman Islands captive operations. The $1.8 million tax impact of the expense recognized in 2017 was included in the Corporate segment's income tax benefit (expense). |
Schedule of product and service revenue from external customers | 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) 2018 2017 2016 Specialty P&C Segment Gross premiums earned: Healthcare professional liability $ 518,303 $ 477,561 $ 474,981 Legal professional liability 26,094 25,771 26,125 Medical technology liability 35,157 33,836 34,158 Other 468 415 667 Ceded premiums earned (88,235 ) (87,760 ) (81,425 ) Segment net premiums earned 491,787 449,823 454,506 Workers' Compensation Insurance Segment Gross premiums earned: Traditional business 199,466 173,246 171,434 Alternative market business 83,508 80,698 75,658 Ceded premiums earned (96,895 ) (90,635 ) (85,104 ) Segment net premiums earned 186,079 163,309 161,988 Segregated Portfolio Cell Reinsurance Segment Gross premiums earned: Workers' compensation (1) 78,255 72,814 66,899 Healthcare professional liability (2) 5,009 4,097 3,310 Ceded premiums earned (9,324 ) (8,714 ) (8,072 ) Segment net premiums earned 73,940 68,197 62,137 Lloyd's Syndicates Segment Gross premiums earned: Property and casualty (3) 83,307 69,749 60,564 Ceded premiums earned (16,260 ) (12,547 ) (5,914 ) Segment net premiums earned 67,047 57,202 54,650 Consolidated net premiums earned $ 818,853 $ 738,531 $ 733,281 (1) Premium for all periods is assumed from the Workers' Compensation Insurance segment. (2) Premium for all periods is assumed from the Specialty P&C segment. (3) Includes premium assumed from the Specialty P&C segment of $5.0 million , $11.8 million and $14.0 million for years ended December 31, 2018 , 2017 and 2016 , respectively. |
Statutory Accounting and Divi_2
Statutory Accounting and Dividend Restrictions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 2018 2017 2016 2018 2017 $135 $139 $163 $1,041 $1,175 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Data [Abstract] | |
Summary of unaudited quarterly results of operations | The following is a summary of unaudited quarterly results of operations for 2018 and 2017 : 2018* (In thousands, except per share data) 1st 2nd 3rd 4th Net premiums earned $ 187,159 $ 223,591 $ 206,070 $ 202,033 Net losses and loss adjustment expenses: Current year $ 152,572 $ 184,543 $ 169,154 $ 179,056 Favorable development of reserves established in prior years, net $ (22,786 ) $ (22,815 ) $ (21,549 ) $ (24,967 ) Net income (loss) $ 11,856 $ 28,423 $ 31,228 $ (24,450 ) Basic earnings per share $ 0.22 $ 0.53 $ 0.58 $ (0.46 ) Diluted earnings per share $ 0.22 $ 0.53 $ 0.58 $ (0.46 ) 2017* (In thousands, except per share data) 1st 2nd 3rd 4th Net premiums earned $ 182,903 $ 180,353 $ 192,303 $ 182,972 Net losses and loss adjustment expenses: Current year $ 147,927 $ 144,562 $ 161,631 $ 149,399 Favorable development of reserves established in prior years, net $ (28,776 ) $ (29,012 ) $ (32,275 ) $ (44,297 ) Net income (loss) $ 41,455 $ 19,518 $ 28,949 $ 17,342 Basic earnings per share $ 0.78 $ 0.37 $ 0.54 $ 0.32 Diluted earnings per share $ 0.77 $ 0.36 $ 0.54 $ 0.32 *Due to rounding, the sum of quarterly amounts may not equal the total amount for the respective year-to-date periods |
Accounting Policies - Narrative
Accounting Policies - Narrative (Details) | 12 Months Ended | |||
Dec. 31, 2018USD ($)reporting_unitsegment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jan. 01, 2019USD ($) | |
Accounting Policies [Abstract] | ||||
Number of reportable segments | segment | 5 | |||
Insurance policy duration (years) | 1 year | |||
Recorded allowances for credit losses (less than) | $ 1,500,000 | $ 1,500,000 | ||
Estimated credit losses (more than) | 500,000 | 500,000 | ||
Earned but unbilled premiums | $ 4,300,000 | 4,300,000 | ||
Minimum period for claims resolution (years) | 5 years | |||
Number of of reporting units (in reporting units) | reporting_unit | 5 | |||
Number of reporting units with goodwill (in reporting units) | reporting_unit | 3 | |||
Goodwill impairment loss | $ 0 | 0 | $ 0 | |
Property, Plant and Equipment [Line Items] | ||||
Return of invested capital from unconsolidated subsidiaries | 84,534,000 | 32,539,000 | 7,084,000 | |
Equity securities, FV-NI, gain (loss) | 12,800,000 | |||
Net investment income | 91,884,000 | 95,662,000 | 100,012,000 | |
Building and Building Improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Real estate accumulated depreciation | 25,200,000 | 24,000,000 | ||
Real estate depreciation expense | 1,200,000 | 1,100,000 | 1,400,000 | |
Retained Earnings | ||||
Property, Plant and Equipment [Line Items] | ||||
Tax Cuts and Jobs Act of 2017, reclassification | (3,400,000) | |||
AOCI Attributable to Parent | ||||
Property, Plant and Equipment [Line Items] | ||||
Tax Cuts and Jobs Act of 2017, reclassification | 3,400,000 | |||
Accounting Standards Update 2016-15 | ||||
Property, Plant and Equipment [Line Items] | ||||
Return of invested capital from unconsolidated subsidiaries | 24,400,000 | $ 9,900,000 | ||
Accounting Standards Update 2016-01 | ||||
Property, Plant and Equipment [Line Items] | ||||
Cumulative-effect adjustment ASU adoption | 8,334,000 | |||
Net investment income | $ 22,000,000 | |||
Accounting Standards Update 2016-01 | Retained Earnings | ||||
Property, Plant and Equipment [Line Items] | ||||
Cumulative-effect adjustment ASU adoption | $ 8,334,000 | |||
Forecast | Accounting Standards Update 2016-02 | ||||
Property, Plant and Equipment [Line Items] | ||||
Right-of-use asset | $ 19,000,000 | |||
Lease liability | $ 19,000,000 |
Accounting Policies - Intangibl
Accounting Policies - Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Gross carrying value non-amortizable | $ 25.8 | $ 25.8 | |
Gross carrying value amortizable | 97.5 | 97.5 | |
Accumulated amortization of intangible assets | 46.5 | 40.3 | |
Amortization expense of intangible assets | 6.2 | 5.8 | $ 8.1 |
Total Intangible Assets | 123.3 | $ 123.3 | |
Estimated aggregate amortization of intangible assets, next 12 months | 6.1 | ||
Estimated aggregate amortization of intangible assets for 2020 | 6.1 | ||
Estimated aggregate amortization of intangible assets for 2021 | 6 | ||
Estimated aggregate amortization of intangible assets for 2022 | 6 | ||
Estimated aggregate amortization of intangible assets for 2023 | $ 6 |
Accounting Policies - Other Lia
Accounting Policies - Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | |||
SPC dividends payable | $ 53,604 | $ 46,925 | |
Unpaid dividends | 43,446 | 267,292 | $ 265,659 |
All other | 102,245 | 123,383 | |
Total other liabilities | $ 199,295 | $ 437,600 |
Accounting Policies - Accountin
Accounting Policies - Accounting Changes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Return of invested capital from unconsolidated subsidiaries | $ 84,534 | $ 32,539 | $ 7,084 |
Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Tax Cuts and Jobs Act of 2017, reclassification | (3,400) | ||
Accumulated Other Comprehensive Income (Loss) | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Tax Cuts and Jobs Act of 2017, reclassification | $ 3,400 | ||
Accounting Standards Update 2016-01 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative-effect adjustment ASU adoption | 8,334 | ||
Accounting Standards Update 2016-01 | Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative-effect adjustment ASU adoption | 8,334 | ||
Accounting Standards Update 2016-15 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Return of invested capital from unconsolidated subsidiaries | $ 24,400 | $ 9,900 |
Fair Value Measurement - Assets
Fair Value Measurement - Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets: | ||
Fixed maturities available for sale, at fair value | $ 2,093,798 | $ 2,280,242 |
Equity investments | 442,937 | 470,609 |
Alternative investment | 288,728 | 230,889 |
Recurring fair value measurements | ||
Assets: | ||
Fixed maturities, trading | 38,188 | |
Other assets | 1,884 | 1,731 |
Total assets categorized within the fair value hierarchy | 2,896,178 | 3,216,879 |
Alternative investment | 268,436 | |
Total assets at fair value | 3,184,906 | 3,447,768 |
Recurring fair value measurements | Level 1 | ||
Assets: | ||
Fixed maturities, trading | 0 | |
Other assets | 0 | 0 |
Total assets categorized within the fair value hierarchy | 690,874 | 877,791 |
Recurring fair value measurements | Level 2 | ||
Assets: | ||
Fixed maturities, trading | 38,188 | |
Other assets | 1,884 | 1,731 |
Total assets categorized within the fair value hierarchy | 2,197,129 | 2,319,990 |
Recurring fair value measurements | Level 3 | ||
Assets: | ||
Fixed maturities, trading | 0 | |
Other assets | 0 | 0 |
Total assets categorized within the fair value hierarchy | 8,175 | 19,098 |
U.S. Treasury obligations | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 120,201 | 133,627 |
U.S. Treasury obligations | Recurring fair value measurements | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 120,201 | 133,627 |
U.S. Treasury obligations | Recurring fair value measurements | Level 1 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 0 | 0 |
U.S. Treasury obligations | Recurring fair value measurements | Level 2 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 120,201 | 133,627 |
U.S. Treasury obligations | Recurring fair value measurements | Level 3 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 0 | 0 |
U.S. Government-sponsored enterprise obligations | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 35,354 | 20,956 |
U.S. Government-sponsored enterprise obligations | Recurring fair value measurements | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 35,354 | 20,956 |
U.S. Government-sponsored enterprise obligations | Recurring fair value measurements | Level 1 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 0 | 0 |
U.S. Government-sponsored enterprise obligations | Recurring fair value measurements | Level 2 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 35,354 | 20,956 |
U.S. Government-sponsored enterprise obligations | Recurring fair value measurements | Level 3 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 0 | 0 |
State and municipal bonds | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 293,772 | 632,243 |
State and municipal bonds | Recurring fair value measurements | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 293,772 | 632,243 |
State and municipal bonds | Recurring fair value measurements | Level 1 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 0 | 0 |
State and municipal bonds | Recurring fair value measurements | Level 2 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 293,772 | 632,243 |
State and municipal bonds | Recurring fair value measurements | Level 3 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 0 | 0 |
Corporate debt, multiple observable inputs | Recurring fair value measurements | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 1,219,153 | 1,153,455 |
Corporate debt, multiple observable inputs | Recurring fair value measurements | Level 1 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 2,319 | 2,371 |
Corporate debt, multiple observable inputs | Recurring fair value measurements | Level 2 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 1,216,834 | 1,151,084 |
Corporate debt, multiple observable inputs | Recurring fair value measurements | Level 3 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 0 | 0 |
Corporate debt, limited observable inputs | Level 3 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 4,322 | 13,703 |
Corporate debt, limited observable inputs | Recurring fair value measurements | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 4,322 | 13,703 |
Corporate debt, limited observable inputs | Recurring fair value measurements | Level 1 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 0 | 0 |
Corporate debt, limited observable inputs | Recurring fair value measurements | Level 2 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 0 | 0 |
Corporate debt, limited observable inputs | Recurring fair value measurements | Level 3 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 4,322 | 13,703 |
Residential mortgage-backed securities | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 181,238 | 197,844 |
Residential mortgage-backed securities | Recurring fair value measurements | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 181,238 | 197,844 |
Residential mortgage-backed securities | Recurring fair value measurements | Level 1 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 0 | 0 |
Residential mortgage-backed securities | Recurring fair value measurements | Level 2 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 181,238 | 196,789 |
Residential mortgage-backed securities | Recurring fair value measurements | Level 3 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 0 | 1,055 |
Agency commercial mortgage-backed securities | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 13,108 | 10,742 |
Agency commercial mortgage-backed securities | Recurring fair value measurements | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 13,108 | 10,742 |
Agency commercial mortgage-backed securities | Recurring fair value measurements | Level 1 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 0 | 0 |
Agency commercial mortgage-backed securities | Recurring fair value measurements | Level 2 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 13,108 | 10,742 |
Agency commercial mortgage-backed securities | Recurring fair value measurements | Level 3 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 0 | 0 |
Other commercial mortgage-backed securities | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 30,993 | 15,961 |
Other commercial mortgage-backed securities | Recurring fair value measurements | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 30,993 | 15,961 |
Other commercial mortgage-backed securities | Recurring fair value measurements | Level 1 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 0 | 0 |
Other commercial mortgage-backed securities | Recurring fair value measurements | Level 2 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 30,993 | 15,961 |
Other commercial mortgage-backed securities | Recurring fair value measurements | Level 3 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 0 | 0 |
Other asset-backed securities | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 195,657 | 101,711 |
Other asset-backed securities | Recurring fair value measurements | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 195,657 | 101,711 |
Other asset-backed securities | Recurring fair value measurements | Level 1 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 0 | 0 |
Other asset-backed securities | Recurring fair value measurements | Level 2 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 191,807 | 97,780 |
Other asset-backed securities | Recurring fair value measurements | Level 3 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 3,850 | 3,931 |
Financial | Recurring fair value measurements | ||
Assets: | ||
Equity investments | 62,344 | 76,051 |
Financial | Recurring fair value measurements | Level 1 | ||
Assets: | ||
Equity investments | 62,344 | 76,051 |
Financial | Recurring fair value measurements | Level 2 | ||
Assets: | ||
Equity investments | 0 | 0 |
Financial | Recurring fair value measurements | Level 3 | ||
Assets: | ||
Equity investments | 0 | 0 |
Utilities/Energy | Recurring fair value measurements | ||
Assets: | ||
Equity investments | 46,533 | 54,388 |
Utilities/Energy | Recurring fair value measurements | Level 1 | ||
Assets: | ||
Equity investments | 46,533 | 54,388 |
Utilities/Energy | Recurring fair value measurements | Level 2 | ||
Assets: | ||
Equity investments | 0 | 0 |
Utilities/Energy | Recurring fair value measurements | Level 3 | ||
Assets: | ||
Equity investments | 0 | 0 |
Consumer oriented | Recurring fair value measurements | ||
Assets: | ||
Equity investments | 47,462 | 54,529 |
Consumer oriented | Recurring fair value measurements | Level 1 | ||
Assets: | ||
Equity investments | 47,462 | 54,529 |
Consumer oriented | Recurring fair value measurements | Level 2 | ||
Assets: | ||
Equity investments | 0 | 0 |
Consumer oriented | Recurring fair value measurements | Level 3 | ||
Assets: | ||
Equity investments | 0 | 0 |
Industrial | Recurring fair value measurements | ||
Assets: | ||
Equity investments | 41,487 | 53,936 |
Industrial | Recurring fair value measurements | Level 1 | ||
Assets: | ||
Equity investments | 41,487 | 53,936 |
Industrial | Recurring fair value measurements | Level 2 | ||
Assets: | ||
Equity investments | 0 | 0 |
Industrial | Recurring fair value measurements | Level 3 | ||
Assets: | ||
Equity investments | 0 | 0 |
Bond funds | Recurring fair value measurements | ||
Assets: | ||
Equity investments | 174,753 | 156,563 |
Bond funds | Recurring fair value measurements | Level 1 | ||
Assets: | ||
Equity investments | 174,753 | 156,563 |
Bond funds | Recurring fair value measurements | Level 2 | ||
Assets: | ||
Equity investments | 0 | 0 |
Bond funds | Recurring fair value measurements | Level 3 | ||
Assets: | ||
Equity investments | 0 | 0 |
All other | Recurring fair value measurements | ||
Assets: | ||
Equity investments | 50,066 | 75,142 |
All other | Recurring fair value measurements | Level 1 | ||
Assets: | ||
Equity investments | 50,066 | 75,142 |
All other | Recurring fair value measurements | Level 2 | ||
Assets: | ||
Equity investments | 0 | 0 |
All other | Recurring fair value measurements | Level 3 | ||
Assets: | ||
Equity investments | 0 | 0 |
Short-term investments | Recurring fair value measurements | ||
Assets: | ||
Short-term investments | 308,319 | 432,126 |
Short-term investments | Recurring fair value measurements | Level 1 | ||
Assets: | ||
Short-term investments | 265,910 | 404,204 |
Short-term investments | Recurring fair value measurements | Level 2 | ||
Assets: | ||
Short-term investments | 42,409 | 27,922 |
Short-term investments | Recurring fair value measurements | Level 3 | ||
Assets: | ||
Short-term investments | 0 | 0 |
Other investments | Level 3 | ||
Assets: | ||
Total assets categorized within the fair value hierarchy | 3 | 409 |
Other investments | Recurring fair value measurements | ||
Assets: | ||
Short-term investments | 31,344 | 32,171 |
Alternative investment | 20,130 | |
Other investments | Recurring fair value measurements | Level 1 | ||
Assets: | ||
Short-term investments | 0 | 607 |
Other investments | Recurring fair value measurements | Level 2 | ||
Assets: | ||
Short-term investments | 31,341 | 31,155 |
Other investments | Recurring fair value measurements | Level 3 | ||
Assets: | ||
Short-term investments | 3 | 409 |
Equity Securities | Recurring fair value measurements | ||
Assets: | ||
Alternative investment | 20,292 | |
Investment in unconsolidated subsidiaries | ||
Assets: | ||
Alternative investment | $ 268,436 | 210,759 |
Investment in unconsolidated subsidiaries | Recurring fair value measurements | ||
Assets: | ||
Alternative investment | $ 210,759 |
Fair Value Measurement - Narrat
Fair Value Measurement - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)Agreement | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
OTTI loss, debt securities, portion recognized in earnings | $ 490 | $ 12,952 | $ 9,766 |
Deferred compensation plan assets | $ 24,100 | $ 20,200 | |
Number of line of credit agreements | Agreement | 2 | ||
Corporate debt, limited observable inputs | Nationally Recognized Statistical Rating Organization (NRSRO) | Rating BBBplus | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Credit rating | 54.00% | 84.00% | |
Residential mortgage-backed and other asset-backed securities | Nationally Recognized Statistical Rating Organization (NRSRO) | Rating AAA | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Credit rating | 25.00% | 21.00% | |
Investment in unconsolidated subsidiaries | Early Stage Business Development | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
OTTI loss, debt securities, portion recognized in earnings | $ 8,500 | ||
Nonrecurring fair value measurements | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net asset (liability) fair value | $ 1,200 |
Fair Value Measurement - Quanti
Fair Value Measurement - Quantitative Information Regarding Level 3 Valuations (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets: | ||
Fixed maturities available for sale, at fair value | $ 2,093,798 | $ 2,280,242 |
Fair Value, Inputs, Level 3 | Corporate debt, limited observable inputs | ||
Assets: | ||
Fixed maturities available for sale, at fair value | $ 4,322 | 13,703 |
Fair Value, Inputs, Level 3 | Corporate debt, limited observable inputs | Market Comparable Securities | Comparability Adjustment | Minimum | ||
Assets: | ||
Available-for-sale, measurement input | 0 | |
Fair Value, Inputs, Level 3 | Corporate debt, limited observable inputs | Market Comparable Securities | Comparability Adjustment | Maximum | ||
Assets: | ||
Available-for-sale, measurement input | 0.05 | |
Fair Value, Inputs, Level 3 | Corporate debt, limited observable inputs | Market Comparable Securities | Comparability Adjustment | Weighted Average | ||
Assets: | ||
Available-for-sale, measurement input | 0.025 | |
Fair Value, Inputs, Level 3 | Corporate debt, limited observable inputs | Discounted Cash Flows | Comparability Adjustment | Minimum | ||
Assets: | ||
Available-for-sale, measurement input | 0 | |
Fair Value, Inputs, Level 3 | Corporate debt, limited observable inputs | Discounted Cash Flows | Comparability Adjustment | Maximum | ||
Assets: | ||
Available-for-sale, measurement input | 0.05 | |
Fair Value, Inputs, Level 3 | Corporate debt, limited observable inputs | Discounted Cash Flows | Comparability Adjustment | Weighted Average | ||
Assets: | ||
Available-for-sale, measurement input | 0.025 | |
Fair Value, Inputs, Level 3 | Residential mortgage-backed and other asset-backed securities | ||
Assets: | ||
Fixed maturities available for sale, at fair value | $ 3,850 | 4,986 |
Fair Value, Inputs, Level 3 | Residential mortgage-backed and other asset-backed securities | Market Comparable Securities | Comparability Adjustment | Minimum | ||
Assets: | ||
Available-for-sale, measurement input | 0 | |
Fair Value, Inputs, Level 3 | Residential mortgage-backed and other asset-backed securities | Market Comparable Securities | Comparability Adjustment | Maximum | ||
Assets: | ||
Available-for-sale, measurement input | 0.05 | |
Fair Value, Inputs, Level 3 | Residential mortgage-backed and other asset-backed securities | Market Comparable Securities | Comparability Adjustment | Weighted Average | ||
Assets: | ||
Available-for-sale, measurement input | 0.025 | |
Fair Value, Inputs, Level 3 | Residential mortgage-backed and other asset-backed securities | Discounted Cash Flows | Comparability Adjustment | Minimum | ||
Assets: | ||
Available-for-sale, measurement input | 0 | |
Fair Value, Inputs, Level 3 | Residential mortgage-backed and other asset-backed securities | Discounted Cash Flows | Comparability Adjustment | Maximum | ||
Assets: | ||
Available-for-sale, measurement input | 0.05 | |
Fair Value, Inputs, Level 3 | Residential mortgage-backed and other asset-backed securities | Discounted Cash Flows | Comparability Adjustment | Weighted Average | ||
Assets: | ||
Available-for-sale, measurement input | 0.025 | |
Fair Value, Inputs, Level 3 | Other investments | ||
Assets: | ||
Fair value | $ 3 | $ 409 |
Fair Value, Inputs, Level 3 | Other investments | Discounted Cash Flows | Comparability Adjustment | Minimum | ||
Assets: | ||
Other investments, measurement input | 0.00% | |
Fair Value, Inputs, Level 3 | Other investments | Discounted Cash Flows | Comparability Adjustment | Maximum | ||
Assets: | ||
Other investments, measurement input | 10.00% | |
Fair Value, Inputs, Level 3 | Other investments | Discounted Cash Flows | Comparability Adjustment | Weighted Average | ||
Assets: | ||
Other investments, measurement input | 5.00% |
Fair Value Measurement - Level
Fair Value Measurement - Level 3 Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation: | ||
Beginning Balance | $ 19,098 | $ 17,820 |
Total gains (losses) realized and unrealized: | ||
Included in other comprehensive income | (338) | (300) |
Purchases | 28,098 | 15,643 |
Sales | (7,210) | (5,749) |
Transfers in | 2,627 | 2,320 |
Transfers out | (33,906) | (10,343) |
Ending Balance | 8,175 | 19,098 |
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 | (146) | (163) |
Net realized investment gains (losses) | ||
Total gains (losses) realized and unrealized: | ||
Included in earnings | (48) | (130) |
Corporate debt | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation: | ||
Beginning Balance | 13,703 | 14,810 |
Total gains (losses) realized and unrealized: | ||
Included in other comprehensive income | (233) | (369) |
Purchases | 8,005 | 13,016 |
Sales | (6,406) | (4,837) |
Transfers in | 2,627 | 999 |
Transfers out | (13,218) | (9,766) |
Ending Balance | 4,322 | 13,703 |
Change in unrealized gains (losses) included in earnings for the above period for Level 3 assets held at period-end | 0 | 0 |
Corporate debt | Net investment income | ||
Total gains (losses) realized and unrealized: | ||
Included in earnings | (148) | (163) |
Corporate debt | Net realized investment gains (losses) | ||
Total gains (losses) realized and unrealized: | ||
Included in earnings | (8) | 13 |
Asset-backed Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation: | ||
Beginning Balance | 4,986 | 3,007 |
Total gains (losses) realized and unrealized: | ||
Included in other comprehensive income | (105) | (71) |
Purchases | 20,093 | 2,627 |
Sales | (438) | 0 |
Transfers in | 0 | 0 |
Transfers out | (20,688) | (577) |
Ending Balance | 3,850 | 4,986 |
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 | Net investment income | ||
Total gains (losses) realized and unrealized: | ||
Included in earnings | 2 | 0 |
Asset-backed Securities | Net realized investment gains (losses) | ||
Total gains (losses) realized and unrealized: | ||
Included in earnings | 0 | 0 |
Other investments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation: | ||
Beginning Balance | 409 | 3 |
Total gains (losses) realized and unrealized: | ||
Included in other comprehensive income | 0 | 140 |
Purchases | 0 | 0 |
Sales | (366) | (912) |
Transfers in | 0 | 1,321 |
Transfers out | 0 | 0 |
Ending Balance | 3 | 409 |
Change in unrealized gains (losses) included in earnings for the above period for Level 3 assets held at period-end | 0 | 0 |
Other investments | Net investment income | ||
Total gains (losses) realized and unrealized: | ||
Included in earnings | 0 | 0 |
Other investments | Net realized investment gains (losses) | ||
Total gains (losses) realized and unrealized: | ||
Included in earnings | $ (40) | $ (143) |
Fair Value Measurement - Invest
Fair Value Measurement - Investments in LLCs and Limited Partnerships (Details) | 12 Months Ended | |
Dec. 31, 2018USD ($)fund | Dec. 31, 2017USD ($) | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Alternative investment | $ 288,728,000 | $ 230,889,000 |
Private debt funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Number of unrelated LPs funds | fund | 3 | |
Number of LPs to allow redemption by special consent (in funds) | fund | 1 | |
Number of LPs that do not permit redemption (in funds) | fund | 2 | |
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] | ||
Prior notice requirement notice for two funds | 90 days | |
Prior notice requirement notice for one funds | 180 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 | |
Mortgage fund | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Entities that calculate net asset value notice period (years) | 65 days | |
Payment period for redemption of LP valued at NAV (years) | 45 days | |
Equities | Mortgage fund | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Unfunded Commitments | $ 0 | |
Alternative investment | 20,292,000 | 0 |
Investment in unconsolidated subsidiaries | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Alternative investment | 268,436,000 | 210,759,000 |
Investment in unconsolidated subsidiaries | Private debt funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Unfunded Commitments | 20,954,000 | |
Alternative investment | 18,196,000 | 42,206,000 |
Investment in unconsolidated subsidiaries | Long equity fund | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Unfunded Commitments | 0 | |
Alternative investment | 6,561,000 | 7,847,000 |
Investment in unconsolidated subsidiaries | Long/short equity funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Unfunded Commitments | 0 | |
Alternative investment | 28,805,000 | 31,352,000 |
Investment in unconsolidated subsidiaries | Non-public equity funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Unfunded Commitments | 80,076,000 | |
Alternative investment | 114,811,000 | 100,062,000 |
Investment in unconsolidated subsidiaries | Multi-strategy fund of funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Unfunded Commitments | 0 | |
Alternative investment | 9,322,000 | 9,100,000 |
Investment in unconsolidated subsidiaries | Structured credit fund | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Unfunded Commitments | 8,916,000 | |
Alternative investment | 29,164,000 | 6,561,000 |
Investment in unconsolidated subsidiaries | Long/short commodities fund | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Unfunded Commitments | 0 | |
Alternative investment | 12,958,000 | 13,025,000 |
Investment in unconsolidated subsidiaries | Strategy focused fund | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Unfunded Commitments | 24,539,000 | |
Alternative investment | 48,619,000 | 606,000 |
Other investments | Mortgage fund | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Alternative investment | $ 0 | $ 20,130,000 |
Fair Value Measurement - Method
Fair Value Measurement - Methodologies Other Than Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Carrying Value | ||
Financial assets: | ||
Other assets | $ 35,921 | $ 34,020 |
Financial liabilities: | ||
Other liabilities | 21,300 | 21,154 |
Carrying Value | Senior Notes | ||
Financial liabilities: | ||
Debt | 250,000 | 250,000 |
Carrying Value | Line of Credit | ||
Financial liabilities: | ||
Debt | 0 | 123,000 |
Carrying Value | Mortgage Loans | ||
Financial liabilities: | ||
Debt | 39,064 | 40,460 |
Fair Value | ||
Financial assets: | ||
Other assets | 35,468 | 33,742 |
Financial liabilities: | ||
Other liabilities | 21,300 | 21,154 |
Fair Value | Senior Notes | ||
Financial liabilities: | ||
Debt | 264,810 | 273,153 |
Fair Value | Line of Credit | ||
Financial liabilities: | ||
Debt | 0 | 123,000 |
Fair Value | Mortgage Loans | ||
Financial liabilities: | ||
Debt | 39,064 | 40,460 |
BOLI | Carrying Value | ||
Financial assets: | ||
Other investments | 64,096 | 62,113 |
BOLI | Fair Value | ||
Financial assets: | ||
Other investments | 64,096 | 62,113 |
Other investments | Carrying Value | ||
Financial assets: | ||
Other investments | 2,943 | 58,546 |
Other investments | Fair Value | ||
Financial assets: | ||
Other investments | $ 2,943 | $ 69,095 |
Investments - Available-For-Sal
Investments - Available-For-Sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 2,116,825 | $ 2,257,188 |
Gross Unrealized Gains | 9,679 | 32,610 |
Gross Unrealized Losses | 32,706 | 9,556 |
Fixed maturities available for sale, at fair value | 2,093,798 | 2,280,242 |
U.S. Treasury obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 121,274 | 134,323 |
Gross Unrealized Gains | 331 | 485 |
Gross Unrealized Losses | 1,404 | 1,181 |
Fixed maturities available for sale, at fair value | 120,201 | 133,627 |
U.S. Government-sponsored enterprise obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 35,758 | 21,089 |
Gross Unrealized Gains | 25 | 73 |
Gross Unrealized Losses | 429 | 206 |
Fixed maturities available for sale, at fair value | 35,354 | 20,956 |
State and municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 289,544 | 618,414 |
Gross Unrealized Gains | 4,877 | 14,248 |
Gross Unrealized Losses | 649 | 419 |
Fixed maturities available for sale, at fair value | 293,772 | 632,243 |
Corporate debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,244,577 | 1,157,660 |
Gross Unrealized Gains | 3,328 | 15,205 |
Gross Unrealized Losses | 24,430 | 5,707 |
Fixed maturities available for sale, at fair value | 1,223,475 | 1,167,158 |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 184,463 | 196,741 |
Gross Unrealized Gains | 814 | 2,438 |
Gross Unrealized Losses | 4,039 | 1,335 |
Fixed maturities available for sale, at fair value | 181,238 | 197,844 |
Agency commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 13,296 | 10,827 |
Gross Unrealized Gains | 12 | 23 |
Gross Unrealized Losses | 200 | 108 |
Fixed maturities available for sale, at fair value | 13,108 | 10,742 |
Other commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 31,330 | 16,004 |
Gross Unrealized Gains | 38 | 91 |
Gross Unrealized Losses | 375 | 134 |
Fixed maturities available for sale, at fair value | 30,993 | 15,961 |
Other asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 196,583 | 102,130 |
Gross Unrealized Gains | 254 | 47 |
Gross Unrealized Losses | 1,180 | 466 |
Fixed maturities available for sale, at fair value | $ 195,657 | $ 101,711 |
Investments - Available-For-S_2
Investments - Available-For-Sale Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fixed maturities, available for sale | ||
Amortized Cost | $ 2,116,825 | $ 2,257,188 |
Total Fair Value | 2,093,798 | 2,280,242 |
U.S. Treasury obligations | ||
Fixed maturities, available for sale | ||
Amortized Cost | 121,274 | 134,323 |
Due in one year or less | 27,187 | |
Due after one year through five years | 74,196 | |
Due after five years through ten years | 18,416 | |
Due after ten years | 402 | |
Total Fair Value | 120,201 | 133,627 |
U.S. Government-sponsored enterprise obligations | ||
Fixed maturities, available for sale | ||
Amortized Cost | 35,758 | 21,089 |
Due in one year or less | 3,279 | |
Due after one year through five years | 12,301 | |
Due after five years through ten years | 19,640 | |
Due after ten years | 134 | |
Total Fair Value | 35,354 | 20,956 |
State and municipal bonds | ||
Fixed maturities, available for sale | ||
Amortized Cost | 289,544 | 618,414 |
Due in one year or less | 10,506 | |
Due after one year through five years | 126,225 | |
Due after five years through ten years | 129,118 | |
Due after ten years | 27,923 | |
Total Fair Value | 293,772 | 632,243 |
Corporate debt | ||
Fixed maturities, available for sale | ||
Amortized Cost | 1,244,577 | 1,157,660 |
Due in one year or less | 147,223 | |
Due after one year through five years | 726,570 | |
Due after five years through ten years | 324,467 | |
Due after ten years | 25,215 | |
Total Fair Value | 1,223,475 | 1,167,158 |
Residential mortgage-backed securities | ||
Fixed maturities, available for sale | ||
Amortized Cost | 184,463 | 196,741 |
Total Fair Value | 181,238 | 197,844 |
Agency commercial mortgage-backed securities | ||
Fixed maturities, available for sale | ||
Amortized Cost | 13,296 | 10,827 |
Total Fair Value | 13,108 | 10,742 |
Other commercial mortgage-backed securities | ||
Fixed maturities, available for sale | ||
Amortized Cost | 31,330 | 16,004 |
Total Fair Value | 30,993 | 15,961 |
Other asset-backed securities | ||
Fixed maturities, available for sale | ||
Amortized Cost | 196,583 | 102,130 |
Total Fair Value | $ 195,657 | $ 101,711 |
Investments - Available-For-S_3
Investments - Available-For-Sale Securities Narrative (Details) $ in Millions | Dec. 31, 2018USD ($)Affiliate |
Debt Securities, Available-for-sale [Line Items] | |
Number of investment affiliates exceeding shareholder's equity ten percent threshold limit (in affiliates) | Affiliate | 0 |
Threshold limit of investments based on shareholders' equity (percent) | 10.00% |
Securities on deposit with state insurance departments | $ 47.1 |
Business owned life insurance cost | 33 |
Fixed maturities | |
Debt Securities, Available-for-sale [Line Items] | |
FAL deposit assets | 123.4 |
Short-term investments | |
Debt Securities, Available-for-sale [Line Items] | |
FAL deposit assets | $ 19.3 |
Investments - Investments Held
Investments - Investments Held in a Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Fair value, total | $ 1,465,727 | $ 850,838 |
Unrealized loss, total | 32,706 | 9,556 |
Fair value, less than 12 months | 634,958 | 603,468 |
Unrealized loss, less than 12 months | 9,823 | 4,314 |
Fair value, 12 months or longer | 830,769 | 247,370 |
Unrealized loss, 12 months or longer | 22,883 | 5,242 |
U.S. Treasury obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value, total | 97,969 | 110,788 |
Unrealized loss, total | 1,405 | 1,181 |
Fair value, less than 12 months | 20,221 | 67,135 |
Unrealized loss, less than 12 months | 119 | 554 |
Fair value, 12 months or longer | 77,748 | 43,653 |
Unrealized loss, 12 months or longer | 1,286 | 627 |
U.S. Government-sponsored enterprise obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value, total | 33,677 | 17,032 |
Unrealized loss, total | 429 | 206 |
Fair value, less than 12 months | 20,479 | 10,182 |
Unrealized loss, less than 12 months | 126 | 64 |
Fair value, 12 months or longer | 13,198 | 6,850 |
Unrealized loss, 12 months or longer | 303 | 142 |
State and municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value, total | 63,094 | 23,122 |
Unrealized loss, total | 648 | 419 |
Fair value, less than 12 months | 30,924 | 15,168 |
Unrealized loss, less than 12 months | 143 | 102 |
Fair value, 12 months or longer | 32,170 | 7,954 |
Unrealized loss, 12 months or longer | 505 | 317 |
Corporate debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value, total | 938,651 | 487,578 |
Unrealized loss, total | 24,429 | 5,707 |
Fair value, less than 12 months | 447,891 | 365,541 |
Unrealized loss, less than 12 months | 8,804 | 2,730 |
Fair value, 12 months or longer | 490,760 | 122,037 |
Unrealized loss, 12 months or longer | 15,625 | 2,977 |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value, total | 157,120 | 109,659 |
Unrealized loss, total | 4,039 | 1,335 |
Fair value, less than 12 months | 27,311 | 64,121 |
Unrealized loss, less than 12 months | 209 | 402 |
Fair value, 12 months or longer | 129,809 | 45,538 |
Unrealized loss, 12 months or longer | 3,830 | 933 |
Agency commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value, total | 9,822 | 4,423 |
Unrealized loss, total | 200 | 108 |
Fair value, less than 12 months | 4,566 | 2,458 |
Unrealized loss, less than 12 months | 22 | 34 |
Fair value, 12 months or longer | 5,256 | 1,965 |
Unrealized loss, 12 months or longer | 178 | 74 |
Other commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value, total | 22,924 | 12,878 |
Unrealized loss, total | 375 | 134 |
Fair value, less than 12 months | 13,348 | 7,939 |
Unrealized loss, less than 12 months | 164 | 82 |
Fair value, 12 months or longer | 9,576 | 4,939 |
Unrealized loss, 12 months or longer | 211 | 52 |
Other asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value, total | 142,470 | 85,358 |
Unrealized loss, total | 1,181 | 466 |
Fair value, less than 12 months | 70,218 | 70,924 |
Unrealized loss, less than 12 months | 236 | 346 |
Fair value, 12 months or longer | 72,252 | 14,434 |
Unrealized loss, 12 months or longer | $ 945 | $ 120 |
Investments - Investments Hel_2
Investments - Investments Held in a Loss Position Narrative (Details) - Non Government-Backed $ in Millions | Dec. 31, 2018USD ($)IssuerSecurity | Dec. 31, 2017USD ($)IssuerSecurity |
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities in unrealized loss position (in securities) | Security | 1,044 | 629 |
Debt securities in unrealized loss position as percentage of total debt securities held (percent) | 50.60% | 26.50% |
Number of issuers in unrealized loss position (in issuers) | Issuer | 550 | 375 |
Single greatest unrealized loss position | $ 0.6 | $ 0.4 |
Second greatest unrealized loss position | $ 0.5 | $ 0.3 |
Investments - Sales and Purchas
Investments - Sales and Purchases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sales (exclusive of maturities and paydowns) | $ 599,600 | $ 530,200 | $ 361,800 |
Purchases | $ 780,698 | $ 614,440 | $ 636,377 |
Investments - Net Investment In
Investments - Net Investment Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Securities, Available-for-sale [Line Items] | |||
Investment fees and expenses | $ (6,681) | $ (6,977) | $ (6,103) |
Net investment income | 91,884 | 95,662 | 100,012 |
Fixed maturities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Investment income | 69,515 | 75,669 | 85,818 |
Equities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Investment income | 21,418 | 17,198 | 14,887 |
Short-term investments, including Other | |||
Debt Securities, Available-for-sale [Line Items] | |||
Investment income | 5,649 | 7,793 | 3,402 |
BOLI | |||
Debt Securities, Available-for-sale [Line Items] | |||
Investment income | $ 1,983 | $ 1,979 | $ 2,008 |
Investments - Investments in Un
Investments - Investments in Unconsolidated Subsidiaries (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Equity Method Investments [Line Items] | ||
Investment in unconsolidated subsidiaries | $ 367,757 | $ 330,591 |
Qualified affordable housing project tax credit partnerships | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment in unconsolidated subsidiaries | 65,677 | 84,607 |
Other tax credit partnerships | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment in unconsolidated subsidiaries | 3,757 | 6,118 |
All other investments, primarily LPs/LLCs | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment in unconsolidated subsidiaries | $ 298,323 | $ 239,866 |
Investments - Investments in _2
Investments - Investments in Unconsolidated Subsidiaries Narrative (Details) $ in Thousands | Dec. 31, 2018USD ($)Businessinvestment_interest | Dec. 31, 2017USD ($) |
Debt Securities, Available-for-sale [Line Items] | ||
Investment in unconsolidated subsidiaries | $ 367,757 | $ 330,591 |
Number of LPs / LLCs with investment ownership percent over 25% (in businesses) | Business | 1 | |
Tax Credit Partnerships Almost 100% Ownership | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of tax credit partnerships almost 100% ownership percentage (in investment interest) | investment_interest | 2 | |
Investment in unconsolidated subsidiaries | $ 25,000 | 32,500 |
Tax Credit Partnerships Almost 100% Ownership | Maximum | ||
Debt Securities, Available-for-sale [Line Items] | ||
Ownership percentage of unconsolidated subsidiaries | 100.00% | |
Percentage ownership (greater than) (percent) | 100.00% | |
Tax Credit Partnerships Less Than 20% Ownership | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investment in unconsolidated subsidiaries | $ 40,700 | 52,100 |
Tax Credit Partnerships Less Than 20% Ownership | Maximum | ||
Debt Securities, Available-for-sale [Line Items] | ||
Ownership percentage of unconsolidated subsidiaries | 20.00% | |
Other Limited Partnerships and Limited Liability Company, Greater Than 25 Percent Ownership | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investment in unconsolidated subsidiaries | $ 25,900 | 30,800 |
Percentage ownership (greater than) (percent) | 25.00% | |
Other Limited Partnerships and Limited Liability Company Less than 25% Ownership | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investment in unconsolidated subsidiaries | $ 272,400 | $ 209,100 |
Percentage ownership (greater than) (percent) | 25.00% |
Investments - Equity in Earning
Investments - Equity in Earnings (Loss) of Unconsolidated Subsidiaries (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |||
Losses from qualified affordable housing project tax credit investments | $ 18,889 | $ 14,297 | $ 20,047 |
Tax credits related to qualified affordable housing investments | 18,474 | 17,774 | 18,531 |
Losses from historical projects | 5,434 | 6,355 | 4,771 |
Historical tax credits | $ 2,567 | $ 5,337 | $ 9,018 |
Investments - Net Realized Inve
Investments - Net Realized Investment Gains (Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Total other-than-temporary impairment losses: | |||
OTTI losses | $ (490) | $ (13,200) | $ (10,834) |
Portion of OTTI losses recognized in other comprehensive income before taxes | 0 | 248 | 1,068 |
Net impairment losses recognized in earnings | (490) | (12,952) | (9,766) |
Gross realized gains, available-for-sale fixed maturities | 5,942 | 6,653 | 12,451 |
Gross realized (losses), available-for-sale fixed maturities | (5,799) | (3,123) | (7,038) |
Net realized gains (losses), short-term investments | (1) | (2) | 18 |
Net realized gains (losses), trading fixed maturities | (100) | 0 | 0 |
Net realized gains (losses), equity investments | 12,230 | 10,724 | 6,632 |
Net realized gains (losses), other investments | 1,340 | 2,963 | 1,115 |
Change in unrealized holding gains (losses), trading fixed maturities | (317) | 0 | 0 |
Change in unrealized holding gains (losses), equity investments | (52,707) | 11,243 | 30,557 |
Change in unrealized holding gains (losses), convertible securities, carried at fair value | (3,849) | 896 | 899 |
Other | 263 | 7 | 7 |
Total net realized investment gains (losses) | (43,488) | 16,409 | 34,875 |
State and municipal bonds | |||
Total other-than-temporary impairment losses: | |||
OTTI losses | 0 | (850) | (100) |
Corporate debt | |||
Total other-than-temporary impairment losses: | |||
OTTI losses | (490) | (419) | (7,604) |
Portion of OTTI losses recognized in other comprehensive income before taxes | 248 | 1,068 | |
Net impairment losses recognized in earnings | (200) | ||
Investment in unconsolidated subsidiaries | |||
Total other-than-temporary impairment losses: | |||
OTTI losses | 0 | (11,931) | 0 |
Other investments | |||
Total other-than-temporary impairment losses: | |||
OTTI losses | $ 0 | $ 0 | $ (3,130) |
Investments - Net Realized In_2
Investments - Net Realized Investment Gains (Losses) Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Securities, Available-for-sale [Line Items] | ||||
OTTI loss, debt securities, portion recognized in earnings | $ (490) | $ (12,952) | $ (9,766) | |
Credit-related OTTI | 93 | 1,313 | 1,158 | $ 5,751 |
Non-credit OTTI losses recognized in other comprehensive income | 0 | 248 | 1,068 | |
Investment Tax Credit Carryforward | Investment in unconsolidated subsidiaries | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
OTTI loss, debt securities, portion recognized in earnings | $ (3,400) | |||
Corporate debt | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
OTTI loss, debt securities, portion recognized in earnings | (200) | |||
Credit-related OTTI | 5,500 | |||
Non-credit OTTI losses recognized in other comprehensive income | $ 248 | 1,068 | ||
Corporate bonds | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Non-credit OTTI losses recognized in other comprehensive income | $ 900 |
Investments - Credit Losses Rec
Investments - Credit Losses Recorded in Earnings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cumulative credit losses recorded in earnings related to impaired debt securities | |||
Beginning balance | $ 1,313 | $ 1,158 | $ 5,751 |
No OTTI has been previously recognized | 0 | 171 | 2,398 |
OTTI has been previously recognized | 0 | 0 | 2,154 |
Securities sold during the period (realized) | (1,220) | (16) | (9,145) |
Ending balance | $ 93 | $ 1,313 | $ 1,158 |
Retroactive Insurance Contrac_2
Retroactive Insurance Contracts (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | ||||||||||||
Net premiums earned | $ 202,033 | $ 206,070 | $ 223,591 | $ 187,159 | $ 182,972 | $ 192,303 | $ 180,353 | $ 182,903 | $ 818,853 | $ 738,531 | $ 733,281 | |
Net losses and loss adjustment expenses | 593,210 | 469,158 | 443,229 | |||||||||
Gross liability for losses and loss adjustment expenses | $ 2,119,847 | $ 2,048,381 | 2,119,847 | $ 2,048,381 | $ 1,993,428 | $ 2,005,326 | ||||||
Retroactive insurance contract | ||||||||||||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | ||||||||||||
Net premiums earned | 26,600 | |||||||||||
Net losses and loss adjustment expenses | 25,400 | |||||||||||
Gross liability for losses and loss adjustment expenses | $ 600 | |||||||||||
Prospective coverage for retroactive insurance contract | ||||||||||||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | ||||||||||||
Net premiums earned | 7,900 | |||||||||||
Retroactive coverage for retroactive insurance contract | ||||||||||||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | ||||||||||||
Net premiums earned | $ 18,700 |
Reinsurance - Premiums Written
Reinsurance - Premiums Written and Earned (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Summary of the effect of reinsurance on premiums written and earned | |||||||||||
Direct premiums written | $ 910,198 | $ 842,968 | $ 794,377 | ||||||||
Assumed premiums written | 47,113 | 31,908 | 40,637 | ||||||||
Ceded premiums written | (122,397) | (110,858) | (96,481) | ||||||||
Net premiums written | 834,914 | 764,018 | 738,533 | ||||||||
Direct premiums earned | 903,354 | 821,249 | 790,791 | ||||||||
Assumed premiums earned | 41,535 | 27,629 | 37,805 | ||||||||
Ceded premiums earned | (126,036) | (110,347) | (95,315) | ||||||||
Net premiums earned | $ 202,033 | $ 206,070 | $ 223,591 | $ 187,159 | $ 182,972 | $ 192,303 | $ 180,353 | $ 182,903 | 818,853 | 738,531 | 733,281 |
Losses and loss adjustment expenses | 675,784 | 592,218 | 515,242 | ||||||||
Reinsurance recoveries | (82,574) | (123,060) | (72,013) | ||||||||
Net losses and loss adjustment expenses | $ 593,210 | $ 469,158 | $ 443,229 |
Reinsurance - Narrative (Detail
Reinsurance - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($)reinsurer | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Ceded Credit Risk [Line Items] | |||
Premium ceded reduction amount | $ (5,500,000) | $ 1,200,000 | $ (7,100,000) |
Amount due from reinsurers total | $ 340,400,000 | ||
Number of major reinsurers | reinsurer | 0 | ||
Amount of reinsurance recoverables collateralized by letters of credit | $ 77,100,000 | ||
Allowance for reinsurance receivables | 0 | 0 | |
Loss on uncollectible accounts in the period | 0 | ||
Cash receipt for reinsurance commutations | 11,558,000 | 7,317,000 | |
Assumed premiums earned | 41,535,000 | 27,629,000 | 37,805,000 |
DDR Reinsurance Agreement | |||
Ceded Credit Risk [Line Items] | |||
Amount of reinsurance recoverables collateralized by letters of credit | 5,400,000 | ||
Cash receipt for reinsurance commutations | 7,800,000 | ||
Novation Agreement | |||
Ceded Credit Risk [Line Items] | |||
Assumed premiums earned | 11,800,000 | ||
Specialty P&C | |||
Ceded Credit Risk [Line Items] | |||
Amount of reinsurance recoverables collateralized by letters of credit | 6,700,000 | 6,600,000 | 7,100,000 |
Cash receipt for reinsurance commutations | 6,100,000 | $ 6,300,000 | $ 6,800,000 |
Minimum | |||
Ceded Credit Risk [Line Items] | |||
Major reinsurer threshold | $ 36,000,000 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets | ||
Unpaid loss discount | $ 30,629 | $ 20,368 |
Unearned premium adjustment | 16,620 | 14,449 |
Compensation related | 9,879 | 11,467 |
Unrealized losses on investments, net | 4,403 | 0 |
Basis differentials–investments | 912 | 0 |
Intangibles | 433 | 514 |
Foreign NOL | 6,795 | 4,116 |
Total gross deferred tax assets | 69,671 | 50,914 |
Valuation allowance | (7,074) | (4,116) |
Total deferred tax assets, net of valuation allowance | 62,597 | 46,798 |
Deferred tax liabilities | ||
Deferred policy acquisition costs | (9,972) | (6,333) |
Unpaid loss discount–transition | (10,128) | 0 |
Unrealized gains on investments, net | 0 | (5,166) |
Fixed assets | (542) | (826) |
Basis differentials–investments | 0 | (10,397) |
Intangibles | (11,243) | (12,548) |
Other | (1,604) | (1,598) |
Total deferred tax liabilities | (33,489) | (36,868) |
Net deferred tax assets (liabilities) | $ 29,108 | $ 9,930 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Contingency [Line Items] | |||
Net operating loss carryforwards | $ 34,000,000 | ||
Foreign net operating loss carryforwards | 6,795,000 | $ 4,116,000 | |
Increase in valuation allowance and related deferred tax asset | 2,700,000 | ||
Deferred tax asset, net | 29,108,000 | 9,930,000 | |
Capital loss carryforward | 0 | ||
Income tax receivable | 3,500,000 | ||
Taxes payable | 8,000,000 | ||
Unrecognized tax benefits that would impact effective tax rate | 1,200,000 | 1,300,000 | |
Interest expense | |||
Income Tax Contingency [Line Items] | |||
Income tax interest and penalties | 300,000 | $ 200,000 | |
Accrued liability for interest | 600,000 | $ 500,000 | |
Inova Re | |||
Income Tax Contingency [Line Items] | |||
Deferred tax asset, net | $ 300,000 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of unrecognized tax benefits | |||
Balance at January 1 | $ 5,341 | $ 8,353 | $ 8,195 |
Increases for tax positions taken during the current year | 0 | 0 | 361 |
(Decreases) for tax positions taken during the current year | (777) | (3,500) | 0 |
Decreases for tax positions taken during prior years | (800) | ||
Increases for tax positions taken during prior years | 700 | 0 | |
(Decreases) relating to a lapse of the applicable statute of limitations | (163) | (212) | (203) |
Balance at December 31 | $ 3,601 | $ 5,341 | $ 8,353 |
Income Taxes - Components of Ta
Income Taxes - Components of Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current expense (benefit) | |||
Federal and foreign | $ (6,509) | $ 19,546 | $ 15,857 |
State | 301 | 120 | 729 |
Total current expense (benefit) | (6,208) | 19,666 | 16,586 |
Deferred expense (benefit) | |||
Federal and foreign | (11,765) | 1,331 | 8,284 |
State | (59) | 362 | 250 |
Total deferred expense (benefit) | (11,824) | 1,693 | 8,534 |
Total income tax expense (benefit) | $ (18,032) | $ 21,359 | $ 25,120 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of expected income tax expense to actual income tax expense | |||
Computed “expected” tax expense | $ 6,095 | $ 45,018 | $ 61,670 |
Tax-exempt income | (2,505) | (8,356) | (9,917) |
Tax credits | (21,059) | (23,111) | (27,549) |
Non-U.S. operating results | 2,269 | 918 | (1,688) |
Excess tax benefit on share-based compensation | (275) | (2,762) | 0 |
Change in federal corporate tax rate | 0 | 6,541 | 0 |
Change in limitation of future deductibility of certain executive compensation | 0 | 3,497 | 0 |
Provision-to-return differences | (2,309) | (1,979) | 1,209 |
Other | (248) | 1,593 | 1,395 |
Total income tax expense (benefit) | $ (18,032) | $ 21,359 | $ 25,120 |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Insurance [Abstract] | |||
Amortization of deferred policy acquisition costs | $ 104,501 | $ 95,751 | $ 88,378 |
Reserve for Losses and Loss A_3
Reserve for Losses and Loss Adjustment Expenses - Narrative and Activity in the Reserve (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018USD ($)partition | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)partition | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Loss Contingencies [Line Items] | |||||||||||
Paid losses and loss adjustment expenses, net of reinsurance | $ 529,979 | $ 476,315 | $ 479,252 | ||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Period Increase (Decrease) [Abstract] | |||||||||||
Minimum period for claims resolution (years) | 5 years | ||||||||||
Number of business partitions (in partitions) | partition | 200 | 200 | |||||||||
Summary of reserve for losses and loss adjustment expenses | |||||||||||
Balance, beginning of year | $ 2,048,381 | $ 1,993,428 | $ 2,048,381 | 1,993,428 | 2,005,326 | ||||||
Less reinsurance recoverables on unpaid losses and loss adjustment expenses | 335,585 | 273,475 | 335,585 | 273,475 | 249,350 | ||||||
Net balance, beginning of year | 1,712,796 | 1,719,953 | 1,712,796 | 1,719,953 | 1,755,976 | ||||||
Net losses: | |||||||||||
Current year | $ 179,056 | $ 169,154 | $ 184,543 | 152,572 | $ 149,399 | $ 161,631 | $ 144,562 | 147,927 | 685,326 | 603,518 | 587,007 |
Favorable development of reserves established in prior years, net | (24,967) | (21,549) | (22,815) | $ (22,786) | (44,297) | $ (32,275) | $ (29,012) | $ (28,776) | (92,116) | (134,360) | (143,778) |
Total | 593,210 | 469,158 | 443,229 | ||||||||
Paid related to: | |||||||||||
Current year | (117,268) | (106,633) | (96,190) | ||||||||
Prior years | (412,711) | (369,682) | (383,062) | ||||||||
Total paid | (529,979) | (476,315) | (479,252) | ||||||||
Net balance, end of year | 1,776,027 | 1,712,796 | 1,776,027 | 1,712,796 | 1,719,953 | ||||||
Plus reinsurance recoverables on unpaid losses and loss adjustment expenses | 343,820 | 335,585 | 343,820 | 335,585 | 273,475 | ||||||
Balance, end of year | $ 2,119,847 | $ 2,048,381 | $ 2,119,847 | $ 2,048,381 | $ 1,993,428 | ||||||
Retroactive insurance contract | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Paid losses and loss adjustment expenses, net of reinsurance | 25,400 | ||||||||||
Summary of reserve for losses and loss adjustment expenses | |||||||||||
Balance, beginning of year | $ 600 | ||||||||||
Paid related to: | |||||||||||
Balance, end of year | $ 600 |
Reserve for Losses and Loss A_4
Reserve for Losses and Loss Adjustment Expenses - Claim Development (Details) $ in Thousands | Dec. 31, 2018USD ($)reported_claim | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Mar. 31, 2011USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2009USD ($) |
Claims Development [Line Items] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 1,596,838 | |||||||||
Healthcare Professional Liability Claims-Made | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 2,694,095 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,683,850 | |||||||||
All outstanding liabilities, net of reinsurance | 11,724 | |||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | 1,021,969 | |||||||||
Healthcare Professional Liability Claims-Made | 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 220,703 | $ 224,768 | $ 230,849 | $ 246,146 | $ 265,478 | $ 284,511 | $ 320,368 | $ 345,714 | $ 370,642 | $ 379,259 |
Incurred but Not Reported Liabilities (IBNR) | $ (455) | |||||||||
Cumulative Number of Reported Claims | reported_claim | 3,828 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 213,568 | 209,016 | 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 | 257,714 | 258,466 | 270,484 | 279,713 | 291,553 | 312,813 | 338,170 | 354,787 | 364,996 | |
Incurred but Not Reported Liabilities (IBNR) | $ (243) | |||||||||
Cumulative Number of Reported Claims | reported_claim | 3,847 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 243,675 | 240,945 | 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 | 254,329 | 264,777 | 278,258 | 289,400 | 305,540 | 331,884 | 344,808 | 348,916 | ||
Incurred but Not Reported Liabilities (IBNR) | $ (2,091) | |||||||||
Cumulative Number of Reported Claims | reported_claim | 3,532 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 233,103 | 224,982 | 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 | 271,110 | 279,589 | 291,075 | 306,956 | 319,613 | 324,418 | 341,289 | |||
Incurred but Not Reported Liabilities (IBNR) | $ 276 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 3,702 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 244,512 | 231,652 | 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 | 258,251 | 272,364 | 287,140 | 296,550 | 304,209 | 315,346 | ||||
Incurred but Not Reported Liabilities (IBNR) | $ 173 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 3,783 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 213,879 | 197,265 | 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 | 256,968 | 267,442 | 280,043 | 289,397 | 290,020 | |||||
Incurred but Not Reported Liabilities (IBNR) | $ (5,200) | |||||||||
Cumulative Number of Reported Claims | reported_claim | 3,320 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 186,239 | 154,236 | 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 | 270,814 | 271,138 | 269,980 | 276,492 | ||||||
Incurred but Not Reported Liabilities (IBNR) | $ (8,030) | |||||||||
Cumulative Number of Reported Claims | reported_claim | 3,266 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 161,896 | 111,741 | 55,731 | 9,172 | ||||||
Healthcare Professional Liability Claims-Made | 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 287,551 | 274,643 | 271,765 | |||||||
Incurred but Not Reported Liabilities (IBNR) | $ (21,456) | |||||||||
Cumulative Number of Reported Claims | reported_claim | 3,481 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 109,756 | 51,869 | 9,027 | |||||||
Healthcare Professional Liability Claims-Made | 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 295,883 | 283,746 | ||||||||
Incurred but Not Reported Liabilities (IBNR) | $ (11,228) | |||||||||
Cumulative Number of Reported Claims | reported_claim | 3,677 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 63,171 | 16,309 | ||||||||
Healthcare Professional Liability Claims-Made | 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 320,772 | |||||||||
Incurred but Not Reported Liabilities (IBNR) | $ 129,334 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 3,558 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 14,051 | |||||||||
Healthcare Professional Liability Occurrence | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 292,713 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 130,757 | |||||||||
All outstanding liabilities, net of reinsurance | 7,985 | |||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | 169,941 | |||||||||
Healthcare Professional Liability Occurrence | 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 23,387 | 24,572 | 26,340 | 28,731 | 32,675 | 34,099 | 37,437 | 36,802 | 35,366 | 34,450 |
Incurred but Not Reported Liabilities (IBNR) | $ 1,519 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 246 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 17,022 | 16,270 | 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 | 26,501 | 29,338 | 33,361 | 35,831 | 37,920 | 42,233 | 43,195 | 43,238 | 41,721 | |
Incurred but Not Reported Liabilities (IBNR) | $ 946 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 290 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 23,832 | 23,313 | 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 | 29,784 | 32,343 | 35,004 | 37,150 | 39,917 | 41,453 | 44,956 | 45,882 | ||
Incurred but Not Reported Liabilities (IBNR) | $ 2,136 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 342 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 24,539 | 23,194 | 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 | 29,857 | 32,691 | 34,774 | 40,692 | 44,848 | 46,513 | 45,703 | |||
Incurred but Not Reported Liabilities (IBNR) | $ 3,816 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 399 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 23,095 | 21,435 | 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 | 26,919 | 30,906 | 34,393 | 35,624 | 36,602 | 32,746 | ||||
Incurred but Not Reported Liabilities (IBNR) | $ 971 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 356 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 18,949 | 16,787 | 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 | 25,885 | 29,869 | 32,143 | 29,918 | 30,420 | |||||
Incurred but Not Reported Liabilities (IBNR) | $ 2,778 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 355 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 14,604 | 10,519 | 7,460 | 2,260 | 394 | |||||
Healthcare Professional Liability Occurrence | 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 40,960 | 37,346 | 35,347 | 35,648 | ||||||
Incurred but Not Reported Liabilities (IBNR) | $ 4,667 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 355 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 11,626 | 4,854 | 786 | (350) | ||||||
Healthcare Professional Liability Occurrence | 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 27,240 | 28,790 | 29,609 | |||||||
Incurred but Not Reported Liabilities (IBNR) | $ 6,244 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 322 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 2,883 | (195) | (182) | |||||||
Healthcare Professional Liability Occurrence | 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 23,760 | 24,571 | ||||||||
Incurred but Not Reported Liabilities (IBNR) | $ 19,890 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 270 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ (5,858) | (6,809) | ||||||||
Healthcare Professional Liability Occurrence | 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 38,420 | |||||||||
Incurred but Not Reported Liabilities (IBNR) | $ 36,196 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 118 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 65 | |||||||||
Medical Technology and Life Sciences Liability Reserves | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 94,719 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 59,621 | |||||||||
All outstanding liabilities, net of reinsurance | 1,101 | |||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | 36,199 | |||||||||
Medical Technology and Life Sciences Liability Reserves | 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 17,984 | 18,176 | 19,264 | 20,551 | 21,733 | 23,425 | 26,181 | 27,523 | 31,183 | 30,462 |
Incurred but Not Reported Liabilities (IBNR) | $ 251 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 699 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 17,522 | 16,515 | 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 | 18,611 | 16,878 | 16,047 | 17,439 | 19,315 | 23,307 | 25,175 | 27,063 | 26,077 | |
Incurred but Not Reported Liabilities (IBNR) | $ 402 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 498 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 17,660 | 15,366 | 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 | 8,202 | 12,358 | 12,487 | 13,794 | 15,836 | 19,166 | 20,930 | 17,249 | ||
Incurred but Not Reported Liabilities (IBNR) | $ 500 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 521 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 7,664 | 7,799 | 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 | 5,051 | 4,797 | 5,824 | 7,441 | 8,906 | 9,989 | 11,162 | |||
Incurred but Not Reported Liabilities (IBNR) | $ 732 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 220 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 3,800 | 3,676 | 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 | 3,566 | 4,697 | 7,226 | 9,536 | 9,955 | 9,807 | ||||
Incurred but Not Reported Liabilities (IBNR) | $ 380 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 218 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 3,102 | 3,092 | 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 | 7,679 | 8,984 | 9,012 | 10,306 | 9,989 | |||||
Incurred but Not Reported Liabilities (IBNR) | $ 2,544 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 272 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 3,724 | 3,046 | 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 | 5,929 | 7,193 | 8,757 | 9,376 | ||||||
Incurred but Not Reported Liabilities (IBNR) | $ 2,770 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 155 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 2,097 | 1,625 | 440 | 25 | ||||||
Medical Technology and Life Sciences Liability Reserves | 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 7,413 | 8,467 | 9,200 | |||||||
Incurred but Not Reported Liabilities (IBNR) | $ 3,482 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 180 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 2,365 | 1,690 | 53 | |||||||
Medical Technology and Life Sciences Liability Reserves | 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 10,143 | 11,049 | ||||||||
Incurred but Not Reported Liabilities (IBNR) | $ 7,834 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 95 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 1,681 | 56 | ||||||||
Medical Technology and Life Sciences Liability Reserves | 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 10,141 | |||||||||
Incurred but Not Reported Liabilities (IBNR) | $ 9,818 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 188 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 6 | |||||||||
Workers' compensation insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 838,821 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 685,504 | |||||||||
All outstanding liabilities, net of reinsurance | 2,208 | |||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | 155,525 | |||||||||
Workers' compensation insurance | 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 47,480 | 47,480 | 47,480 | 47,905 | 48,372 | 47,811 | 45,354 | 45,354 | 45,354 | 45,354 |
Incurred but Not Reported Liabilities (IBNR) | $ 80 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 10,129 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 47,189 | 47,089 | 47,012 | 46,928 | 46,321 | 45,689 | 43,436 | 39,351 | 31,465 | 14,701 |
Workers' compensation insurance | 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 54,600 | 54,600 | 54,600 | 55,200 | 54,779 | 54,837 | 55,852 | 55,852 | 55,852 | |
Incurred but Not Reported Liabilities (IBNR) | $ 58 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 12,913 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 54,014 | 53,974 | 53,734 | 53,443 | 52,530 | 51,117 | 46,762 | 39,098 | 20,086 | |
Workers' compensation insurance | 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 72,795 | 72,795 | 72,495 | 72,420 | 72,280 | 71,521 | 65,783 | 65,665 | ||
Incurred but Not Reported Liabilities (IBNR) | $ 354 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 15,244 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 71,856 | 71,662 | 70,934 | 70,146 | 67,945 | 62,307 | 50,900 | 21,993 | ||
Workers' compensation insurance | 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 75,136 | 75,636 | 75,836 | 76,357 | 75,848 | 76,551 | 80,285 | |||
Incurred but Not Reported Liabilities (IBNR) | $ 724 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 16,204 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 73,676 | 73,662 | 72,766 | 70,558 | 65,908 | 56,122 | 27,448 | |||
Workers' compensation insurance | 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 88,810 | 88,810 | 88,010 | 86,928 | 85,935 | 86,973 | ||||
Incurred but Not Reported Liabilities (IBNR) | $ 1,017 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 16,429 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 86,783 | 85,689 | 82,369 | 76,813 | 63,825 | 30,554 | ||||
Workers' compensation insurance | 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 92,229 | 92,229 | 93,029 | 93,529 | 93,019 | |||||
Incurred but Not Reported Liabilities (IBNR) | $ 3,350 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 16,210 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 87,314 | 85,022 | 77,631 | 65,922 | 30,368 | |||||
Workers' compensation insurance | 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 97,654 | 98,454 | 100,454 | 100,101 | ||||||
Incurred but Not Reported Liabilities (IBNR) | $ 8,522 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 16,548 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 83,483 | 78,947 | 65,070 | 32,078 | ||||||
Workers' compensation insurance | 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 92,148 | 97,348 | 101,348 | |||||||
Incurred but Not Reported Liabilities (IBNR) | $ 13,540 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 15,972 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 69,237 | 58,192 | 28,377 | |||||||
Workers' compensation insurance | 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 99,874 | 99,874 | ||||||||
Incurred but Not Reported Liabilities (IBNR) | $ 12,489 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 16,058 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 70,333 | 31,586 | ||||||||
Workers' compensation insurance | 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 118,095 | |||||||||
Incurred but Not Reported Liabilities (IBNR) | $ 32,816 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 17,556 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 41,619 | |||||||||
Segregated Portfolio Cell Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 266,016 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 210,411 | |||||||||
All outstanding liabilities, net of reinsurance | 912 | |||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | 56,517 | |||||||||
Segregated Portfolio Cell Reinsurance | 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 15,279 | 15,277 | 15,277 | 15,618 | 15,695 | 15,809 | 15,948 | 15,886 | 16,337 | 17,790 |
Incurred but Not Reported Liabilities (IBNR) | $ 107 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 2,962 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 15,172 | 15,166 | 15,165 | 15,147 | 14,954 | 14,881 | 14,660 | 13,202 | 10,782 | $ 5,000 |
Segregated Portfolio Cell Reinsurance | 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 17,224 | 17,278 | 17,320 | 17,541 | 17,736 | 17,825 | 17,715 | 18,265 | 19,767 | |
Incurred but Not Reported Liabilities (IBNR) | $ 275 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 2,914 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 16,904 | 16,850 | 16,810 | 16,842 | 16,757 | 16,214 | 15,087 | 12,904 | $ 6,503 | |
Segregated Portfolio Cell Reinsurance | 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 18,606 | 18,666 | 18,725 | 18,644 | 19,282 | 19,629 | 19,360 | 18,790 | ||
Incurred but Not Reported Liabilities (IBNR) | $ 363 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 3,154 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 18,185 | 18,176 | 18,177 | 18,054 | 17,869 | 17,197 | 14,045 | $ 5,940 | ||
Segregated Portfolio Cell Reinsurance | 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 19,799 | 19,864 | 19,972 | 20,028 | 21,048 | 21,513 | 22,940 | |||
Incurred but Not Reported Liabilities (IBNR) | $ 441 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 3,454 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 19,328 | 19,402 | 19,208 | 18,474 | 17,728 | 14,740 | $ 7,808 | |||
Segregated Portfolio Cell Reinsurance | 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 26,033 | 26,260 | 26,619 | 26,758 | 25,310 | 23,809 | ||||
Incurred but Not Reported Liabilities (IBNR) | $ 544 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 3,723 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 25,489 | 25,366 | 25,209 | 24,268 | 19,054 | $ 8,131 | ||||
Segregated Portfolio Cell Reinsurance | 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 28,281 | 28,373 | 29,000 | 28,423 | 28,248 | |||||
Incurred but Not Reported Liabilities (IBNR) | $ 942 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 4,433 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 26,959 | 26,810 | 26,173 | 21,880 | 9,933 | |||||
Segregated Portfolio Cell Reinsurance | 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 27,548 | 28,746 | 32,519 | 36,423 | ||||||
Incurred but Not Reported Liabilities (IBNR) | $ 1,601 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 4,949 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 24,781 | 23,977 | 21,706 | 11,257 | ||||||
Segregated Portfolio Cell Reinsurance | 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 30,998 | 34,055 | 37,601 | |||||||
Incurred but Not Reported Liabilities (IBNR) | $ 2,528 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 5,326 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 26,285 | 23,003 | 10,980 | |||||||
Segregated Portfolio Cell Reinsurance | 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 38,594 | 42,725 | ||||||||
Incurred but Not Reported Liabilities (IBNR) | $ 7,314 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 5,699 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 24,791 | 12,404 | ||||||||
Segregated Portfolio Cell Reinsurance | 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 43,654 | |||||||||
Incurred but Not Reported Liabilities (IBNR) | $ 18,788 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 6,228 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 12,517 | |||||||||
Syndicate 1729 casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 79,768 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 38,289 | |||||||||
All outstanding liabilities, net of reinsurance | 0 | |||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | 41,479 | |||||||||
Syndicate 1729 casualty | 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred but Not Reported Liabilities (IBNR) | 1,086 | |||||||||
Syndicate 1729 casualty | 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 5,472 | 5,547 | 5,610 | 5,812 | 6,110 | |||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 4,320 | 4,214 | 4,092 | 474 | 20 | |||||
Syndicate 1729 casualty | 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 14,232 | 14,398 | 14,510 | 14,810 | ||||||
Incurred but Not Reported Liabilities (IBNR) | 1,984 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 10,947 | 10,313 | 6,307 | 724 | ||||||
Syndicate 1729 casualty | 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 19,552 | 19,669 | 19,535 | |||||||
Incurred but Not Reported Liabilities (IBNR) | 5,098 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 12,869 | 8,441 | 2,495 | |||||||
Syndicate 1729 casualty | 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 21,824 | 22,069 | ||||||||
Incurred but Not Reported Liabilities (IBNR) | 9,960 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 8,301 | 2,611 | ||||||||
Syndicate 1729 casualty | 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 18,688 | |||||||||
Incurred but Not Reported Liabilities (IBNR) | 16,014 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,852 | |||||||||
Syndicate 1729 property insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 58,118 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 44,426 | |||||||||
All outstanding liabilities, net of reinsurance | 0 | |||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | 13,692 | |||||||||
Syndicate 1729 property insurance | 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 866 | 864 | 888 | 1,089 | 890 | |||||
Incurred but Not Reported Liabilities (IBNR) | $ (6) | |||||||||
Cumulative Number of Reported Claims | reported_claim | 118 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 857 | 854 | 836 | 1,005 | 267 | |||||
Syndicate 1729 property insurance | 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 6,159 | 6,194 | 5,917 | 5,519 | ||||||
Incurred but Not Reported Liabilities (IBNR) | $ 1,128 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 921 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 4,869 | 4,808 | 4,022 | 3,165 | ||||||
Syndicate 1729 property insurance | 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 12,823 | 12,984 | 11,896 | |||||||
Incurred but Not Reported Liabilities (IBNR) | $ 12 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 2,484 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 12,343 | 10,939 | 7,751 | |||||||
Syndicate 1729 property insurance | 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 17,634 | 15,018 | ||||||||
Incurred but Not Reported Liabilities (IBNR) | $ (883) | |||||||||
Cumulative Number of Reported Claims | reported_claim | 4,240 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 16,439 | 8,221 | ||||||||
Syndicate 1729 property insurance | 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 20,636 | |||||||||
Incurred but Not Reported Liabilities (IBNR) | $ 6,898 | |||||||||
Cumulative Number of Reported Claims | reported_claim | 3,681 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 9,918 | |||||||||
Syndicate 1729 property reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 23,493 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 13,342 | |||||||||
All outstanding liabilities, net of reinsurance | 0 | |||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | 10,151 | |||||||||
Syndicate 1729 property reinsurance | 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,125 | 989 | 989 | 929 | 831 | |||||
Incurred but Not Reported Liabilities (IBNR) | 0 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,125 | 984 | 984 | 917 | $ 79 | |||||
Syndicate 1729 property reinsurance | 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 2,328 | 2,275 | 2,825 | 2,788 | ||||||
Incurred but Not Reported Liabilities (IBNR) | (91) | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 2,234 | 1,996 | 1,804 | $ 1,313 | ||||||
Syndicate 1729 property reinsurance | 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 3,368 | 4,050 | 4,497 | |||||||
Incurred but Not Reported Liabilities (IBNR) | 943 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 2,136 | 1,667 | $ 613 | |||||||
Syndicate 1729 property reinsurance | 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 7,832 | 6,861 | ||||||||
Incurred but Not Reported Liabilities (IBNR) | 371 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 7,300 | $ 4,147 | ||||||||
Syndicate 1729 property reinsurance | 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 8,840 | |||||||||
Incurred but Not Reported Liabilities (IBNR) | 8,154 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 547 |
Reserve for Losses and Loss A_5
Reserve for Losses and Loss Adjustment Expenses - Historical Claims Duration (Details) | Dec. 31, 2018 |
Healthcare Professional Liability Claims-Made | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Historical claims duration, year 1 (percent) | 5.40% |
Historical claims duration, year 2 (percent) | 19.50% |
Historical claims duration, year 3 (percent) | 22.80% |
Historical claims duration, year 4 (percent) | 17.00% |
Historical claims duration, year 5 (percent) | 10.40% |
Historical claims duration, year 6 (percent) | 5.90% |
Historical claims duration, year 7 (percent) | 4.60% |
Historical claims duration, year 8 (percent) | 2.40% |
Historical claims duration, year 9 (percent) | 1.40% |
Historical claims duration, year 10 (percent) | 2.10% |
Healthcare Professional Liability Occurrence | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Historical claims duration, year 1 (percent) | (2.30%) |
Historical claims duration, year 2 (percent) | 6.10% |
Historical claims duration, year 3 (percent) | 15.00% |
Historical claims duration, year 4 (percent) | 17.60% |
Historical claims duration, year 5 (percent) | 15.20% |
Historical claims duration, year 6 (percent) | 11.70% |
Historical claims duration, year 7 (percent) | 6.10% |
Historical claims duration, year 8 (percent) | 3.10% |
Historical claims duration, year 9 (percent) | 1.50% |
Historical claims duration, year 10 (percent) | 3.20% |
Medical technology liability | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Historical claims duration, year 1 (percent) | 2.60% |
Historical claims duration, year 2 (percent) | 19.10% |
Historical claims duration, year 3 (percent) | 19.70% |
Historical claims duration, year 4 (percent) | 16.40% |
Historical claims duration, year 5 (percent) | 8.60% |
Historical claims duration, year 6 (percent) | 1.60% |
Historical claims duration, year 7 (percent) | 2.60% |
Historical claims duration, year 8 (percent) | 5.00% |
Historical claims duration, year 9 (percent) | 9.90% |
Historical claims duration, year 10 (percent) | 5.60% |
Workers' compensation insurance | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Historical claims duration, year 1 (percent) | 33.20% |
Historical claims duration, year 2 (percent) | 36.50% |
Historical claims duration, year 3 (percent) | 14.10% |
Historical claims duration, year 4 (percent) | 7.10% |
Historical claims duration, year 5 (percent) | 3.30% |
Historical claims duration, year 6 (percent) | 1.30% |
Historical claims duration, year 7 (percent) | 0.70% |
Historical claims duration, year 8 (percent) | 0.30% |
Historical claims duration, year 9 (percent) | 0.10% |
Historical claims duration, year 10 (percent) | 0.20% |
Segregated Portfolio Cell Reinsurance | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Historical claims duration, year 1 (percent) | 34.50% |
Historical claims duration, year 2 (percent) | 38.50% |
Historical claims duration, year 3 (percent) | 14.30% |
Historical claims duration, year 4 (percent) | 4.60% |
Historical claims duration, year 5 (percent) | 1.70% |
Historical claims duration, year 6 (percent) | 0.60% |
Historical claims duration, year 7 (percent) | 0.20% |
Historical claims duration, year 8 (percent) | 0.10% |
Historical claims duration, year 9 (percent) | 0.20% |
Historical claims duration, year 10 (percent) | 0.00% |
Syndicate 1729 casualty | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Historical claims duration, year 1 (percent) | 18.70% |
Historical claims duration, year 2 (percent) | 40.30% |
Historical claims duration, year 3 (percent) | 22.60% |
Historical claims duration, year 4 (percent) | 12.80% |
Historical claims duration, year 5 (percent) | 3.20% |
Historical claims duration, year 6 (percent) | 1.10% |
Historical claims duration, year 7 (percent) | 1.00% |
Historical claims duration, year 8 (percent) | 0.40% |
Historical claims duration, year 9 (percent) | 0.00% |
Historical claims duration, year 10 (percent) | 0.00% |
Lloyd's Syndicate Property Insurance [Member] | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Historical claims duration, year 1 (percent) | 81.40% |
Historical claims duration, year 2 (percent) | 15.90% |
Historical claims duration, year 3 (percent) | 2.10% |
Historical claims duration, year 4 (percent) | 0.20% |
Historical claims duration, year 5 (percent) | 0.20% |
Historical claims duration, year 6 (percent) | 0.10% |
Historical claims duration, year 7 (percent) | 0.10% |
Historical claims duration, year 8 (percent) | 0.10% |
Historical claims duration, year 9 (percent) | 0.00% |
Historical claims duration, year 10 (percent) | 0.00% |
Lloyd's Syndicate Property Reinsurance [Member] | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Historical claims duration, year 1 (percent) | 82.00% |
Historical claims duration, year 2 (percent) | 13.30% |
Historical claims duration, year 3 (percent) | 2.80% |
Historical claims duration, year 4 (percent) | 1.10% |
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% |
Reserve for Losses and Loss A_6
Reserve for Losses and Loss Adjustment Expenses - Reconciliation of Claims Development (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | $ 1,596,838 | |||
Total reinsurance recoverable on unpaid losses and loss adjustment expenses | 343,820 | $ 335,585 | $ 273,475 | $ 249,350 |
Reserve for the future utilization of the DDR benefit | 67,200 | |||
Unallocated loss adjustment expenses | 100,123 | |||
Loss portfolio transfer | 18,252 | |||
Purchase accounting | 1,551 | |||
Other | (7,937) | |||
Liability for unpaid claims and claim adjustment expense | 179,189 | |||
Gross liability for losses and loss adjustment expenses | 2,119,847 | $ 2,048,381 | $ 1,993,428 | $ 2,005,326 |
Healthcare professional liability claims-made | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 1,021,969 | |||
Total reinsurance recoverable on unpaid losses and loss adjustment expenses | 151,870 | |||
Healthcare professional liability occurrence | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 169,941 | |||
Total reinsurance recoverable on unpaid losses and loss adjustment expenses | 37,683 | |||
Medical technology liability | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 36,199 | |||
Total reinsurance recoverable on unpaid losses and loss adjustment expenses | 32,604 | |||
Workers' compensation insurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 155,525 | |||
Total reinsurance recoverable on unpaid losses and loss adjustment expenses | 67,631 | |||
Segregated Portfolio Cell Reinsurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 56,517 | |||
Total reinsurance recoverable on unpaid losses and loss adjustment expenses | 24,177 | |||
Syndicate 1729 casualty | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 41,479 | |||
Total reinsurance recoverable on unpaid losses and loss adjustment expenses | 678 | |||
Syndicate 1729 property insurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 13,692 | |||
Total reinsurance recoverable on unpaid losses and loss adjustment expenses | 10,323 | |||
Syndicate 1729 property reinsurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 10,151 | |||
Total reinsurance recoverable on unpaid losses and loss adjustment expenses | 9,717 | |||
Other short-duration lines | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 91,365 | |||
Total reinsurance recoverable on unpaid losses and loss adjustment expenses | $ 9,137 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2018GBP (£) | Feb. 28, 2018GBP (£) | Jan. 31, 2018GBP (£) | |
Other Commitment, Fiscal Year Maturity | |||||||
Operating expense | $ 134,055 | $ 140,002 | $ 139,232 | ||||
Rent expense | 7,900 | $ 6,700 | $ 5,900 | ||||
Lloyd's Syndicates | |||||||
Other Commitment, Fiscal Year Maturity | |||||||
FAL deposit assets | $ 142,700 | $ 142,700 | |||||
Current lending capacity under revolving credit agreement | £ | £ 30,000,000 | £ 20,000,000 | |||||
Interest rate on revolving credit agreement (percent) | 3.80% | 3.80% | 3.80% | ||||
Unused commitments | $ 9,100 | $ 9,100 | £ 7,100,000 | ||||
Funding commitments | |||||||
Other Commitments [Line Items] | |||||||
Funding commitments related to non-public investment entities | 297,800 | 297,800 | |||||
Qualified affordable housing project | |||||||
Other Commitment, Fiscal Year Maturity | |||||||
Qualified affordable housing project funding commitments | 1,000 | 1,000 | |||||
Qualified affordable housing project funding commitments, due in 2019 | 200 | 200 | |||||
Qualified affordable housing project funding commitments, due in 2020 and 2021 | 300 | 300 | |||||
Qualified affordable housing project funding commitments, due in 2022 and 2023 | 400 | 400 | |||||
Qualified affordable housing project funding commitments, due thereafter | 100 | 100 | |||||
Commitment to provide capital | Lloyd's Syndicates | |||||||
Other Commitments [Line Items] | |||||||
Funding commitments related to non-public investment entities | $ 200,000 | 200,000 | |||||
Data analytics services | |||||||
Other Commitment, Fiscal Year Maturity | |||||||
Period of long-term purchase commitment | 2 years | ||||||
Contractual obligation, due in next year | $ 4,800 | 4,800 | |||||
Operating expense | 1,000 | ||||||
Contractual obligation | $ 8,600 | $ 8,600 |
Commitments and Contingencies_2
Commitments and Contingencies - Operating Leases (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Schedule of future minimum lease payments for operating leases | |
2,019 | $ 4,829 |
2,020 | 4,020 |
2,021 | 3,557 |
2,022 | 2,618 |
2,023 | 1,888 |
Thereafter | 10,212 |
Total minimum lease payments | $ 27,124 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Gross debt | $ 289,064 | $ 413,460 |
Less debt issuance costs | 1,307 | 1,649 |
Debt less debt issuance costs | 287,757 | 411,811 |
Senior Notes | Senior notes due 2023 | ||
Debt Instrument [Line Items] | ||
Gross debt | $ 250,000 | 250,000 |
Interest rate | 5.30% | |
Line of Credit | Revolving Credit Agreement | ||
Debt Instrument [Line Items] | ||
Gross debt | $ 0 | $ 123,000 |
Weighted average interest rate | 1.91% | |
Mortgage Loans | ||
Debt Instrument [Line Items] | ||
Gross debt | $ 39,064 | $ 40,460 |
Mortgage Loans | Three month LIBOR | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.10% | 2.86% |
Basis spread on variable rate for debt | 1.325% | 1.325% |
Debt - Narrative (Details)
Debt - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2018USD ($)lender | Dec. 31, 2017USD ($) | |
Debt Instrument [Line Items] | ||
Number of participating lenders | lender | 7 | |
Interest Rate Cap | ||
Debt Instrument [Line Items] | ||
Floor interest rate on derivative | 2.35% | |
Other assets | Interest Rate Cap | ||
Debt Instrument [Line Items] | ||
Derivative asset, notional amount | $ 35,000,000 | $ 35,000,000 |
Senior Notes | Senior notes due 2023 | Base Rate | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate for debt | 0.40% | |
Line of Credit | Revolving Credit Agreement | ||
Debt Instrument [Line Items] | ||
Current revolving credit capacity | $ 250,000,000 | |
Additional borrowing capacity | $ 50,000,000 | |
Maximum allowable consolidated funded indebtedness ratio (percent) | 0.35 | |
Minimum net worth required | $ 1,300,000,000 | |
Line of Credit | Revolving Credit Agreement | Federal Funds Rate | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate for debt | 0.50% | |
Line of Credit | Revolving Credit Agreement | One month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate for debt | 1.00% | |
Line of Credit | Revolving Credit Agreement | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate for debt | 0.00% | |
Commitment fee percentages (percent) | 0.125% | |
Line of Credit | Revolving Credit Agreement | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate for debt | 1.63% | |
Commitment fee percentages (percent) | 0.25% | |
Mortgage Loans | ||
Debt Instrument [Line Items] | ||
Maximum allowable consolidated funded indebtedness ratio (percent) | 0.35 | |
Debt instrument term | 10 years | |
Debt gross amount | $ 39,064,000 | $ 40,500,000 |
Mortgage Loans | Three month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate for debt | 1.325% | 1.325% |
Debt - Schedule of Contractual
Debt - Schedule of Contractual Maturities of Mortgage Loans (Details) - Mortgage Loans - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
2,019 | $ 1,448 | |
2,020 | 1,503 | |
2,021 | 1,559 | |
2,022 | 1,617 | |
2,023 | 1,677 | |
Thereafter | 31,260 | |
Total principal payments | $ 39,064 | $ 40,500 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Mortgage Loans | Three month LIBOR | ||
Derivative [Line Items] | ||
Basis spread on variable rate for debt | 1.325% | 1.325% |
Interest Rate Cap | ||
Derivative [Line Items] | ||
Premium paid on derivative for right to receive cash payments | $ 2,000 | |
Floor interest rate on derivative | 2.35% | |
Cap interest rate on derivative | 3.675% | |
Interest Rate Cap | Other assets | ||
Derivative [Line Items] | ||
Derivative asset, notional amount | $ 35,000 | $ 35,000 |
Derivatives - Volume and Fair V
Derivatives - Volume and Fair Value (Details) - Interest Rate Cap - Other assets $ in Thousands | Dec. 31, 2018USD ($)derivative_instrument | Dec. 31, 2017USD ($)derivative_instrument |
Derivative [Line Items] | ||
Number of Instruments | derivative_instrument | 1 | 1 |
Notional Amount | $ 35,000 | $ 35,000 |
Estimated Fair Value | $ 1,884 | $ 1,731 |
Derivatives - Pre-tax Impact of
Derivatives - Pre-tax Impact of Change in Fair Value (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest Rate Cap | Interest expense | |||
Derivative [Line Items] | |||
Gains (Losses) Recognized in Income on Derivatives | $ 153 | $ (339) | $ 0 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Equity [Abstract] | ||||
Common shares authorized (shares) | 100,000,000 | 100,000,000 | ||
Authorized preferred stock (shares) | 50,000,000 | 50,000,000 | ||
Authorization common shares for the issuance under incentive compensation plans (shares) | 2,000,000 | |||
Number of shares available for grant (shares) | 600,000 | |||
Dividends declared | $ 94,300 | $ 316,900 | $ 315,000 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity attributable to parent | 1,523,002 | 1,594,795 | 1,798,702 | $ 1,958,354 |
Total authorizations which remain available for use | 109,600 | |||
Loss related to unrecognized changes in defined benefit plan liabilities | 1,000 | |||
Impairment losses in accumulated other comprehensive income | 100 | 500 | ||
Retained earnings, unappropriated | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity attributable to parent | 165,300 | |||
Accumulated Other Comprehensive Income (Loss) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity attributable to parent | (16,911) | $ 14,911 | $ 17,399 | $ 23,855 |
Tax Cuts and Jobs Act of 2017, reclassification | $ 3,400 |
Shareholders' Equity - Changes
Shareholders' Equity - Changes in Common Shares (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Dividends Payable [Line Items] | |||||||||||||||
Cash Dividends Declared, per Share | $ 0.81 | $ 0.31 | $ 0.31 | $ 0.310 | $ 5 | $ 0.31 | $ 0.31 | $ 0.31 | $ 5 | $ 0.31 | $ 0.31 | $ 0.31 | $ 1.74 | $ 5.93 | $ 5.93 |
Common Stock Outstanding Rollforward [Roll Forward] | |||||||||||||||
Beginning Balance (shares) | 53,457 | 53,251 | 53,101 | 53,457 | 53,251 | 53,101 | |||||||||
Repurchase of shares (shares) | 0 | 0 | (44) | ||||||||||||
Cost of common shares reacquired | $ 2,106 | ||||||||||||||
Shares issued due to exercise of options and vesting of share-based compensation awards (shares) | 135 | 132 | 108 | ||||||||||||
Other shares issued for compensation and shares reissued to stock purchase plan (shares) | 45 | 74 | 86 | ||||||||||||
Ending Balance (shares) | 53,637 | 53,457 | 53,251 | 53,637 | 53,457 | 53,251 | |||||||||
Special Dividends | |||||||||||||||
Dividends Payable [Line Items] | |||||||||||||||
Cash Dividends Declared, per Share | $ 0.5 | $ 4.69 | $ 4.69 |
Shareholders' Equity - Cash Div
Shareholders' Equity - Cash Dividends Declared (Details) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Class of Stock [Line Items] | |||||||||||||||
Cash Dividends Declared, per Share | $ 0.81 | $ 0.31 | $ 0.31 | $ 0.310 | $ 5 | $ 0.31 | $ 0.31 | $ 0.31 | $ 5 | $ 0.31 | $ 0.31 | $ 0.31 | $ 1.74 | $ 5.93 | $ 5.93 |
Special Dividends | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Cash Dividends Declared, per Share | $ 0.5 | $ 4.69 | $ 4.69 |
Shareholders' Equity - Reclassi
Shareholders' Equity - Reclassifications from AOCI to Net Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reclassification adjustments related to available-for-sale securities | |||
Total gains (losses) reclassified, before-tax effect | $ (347) | $ 2,509 | $ (2,724) |
Tax effect | 73 | (878) | 953 |
Net reclassification adjustments | (274) | 1,631 | (1,771) |
Deferred tax expense (benefit) included in OCI | (9,573) | (4,676) | (3,078) |
Realized investment gains (losses) | |||
Reclassification adjustments related to available-for-sale securities | |||
Total gains (losses) reclassified, before-tax effect | 274 | 2,512 | 2,417 |
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 gains (losses) reclassified, before-tax effect | (621) | (3) | (3,641) |
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 gains (losses) reclassified, before-tax effect | $ 0 | $ 0 | $ (1,500) |
Share-Based Payments - Narrativ
Share-Based Payments - Narrative (Details) | 12 Months Ended | |||
Dec. 31, 2018USD ($)award_typeshares | Dec. 31, 2017USD ($)award_typeshares | Dec. 31, 2016USD ($)award_typeshares | Dec. 31, 2015shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of award types (in award types) | award_type | 3 | 3 | 3 | |
The aggregate grant date intrinsic value of options exercised | $ 0 | $ 0 | $ 100,000 | |
Outstanding options (in shares) | shares | 0 | 0 | 0 | 2,144 |
Cash proceeds from stock option exercises | $ 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 | $ 3,600,000 | $ 2,200,000 | 1,800,000 | |
Aggregate intrinsic value | 4,100,000 | 3,100,000 | 2,100,000 | |
Performance Share Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate grant date fair value | 4,500,000 | 6,100,000 | 6,200,000 | |
Aggregate intrinsic value | $ 5,000,000 | $ 8,700,000 | $ 6,900,000 | |
The percentage of award vest (percent) | 125.00% | 119.00% | 98.00% | |
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 | $ 1,100,000 | $ 1,000,000 | $ 900,000 | |
Aggregate intrinsic value | 1,100,000 | $ 1,400,000 | $ 1,200,000 | |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Summary of compensation expense and related tax benefit recognized during each period and compensation cost expense in future periods | |||
Total share-based compensation expense | $ 5,321 | $ 10,615 | $ 12,455 |
Tax benefit recognized | 1,100 | $ 3,700 | $ 4,400 |
Unrecognized Compensation Cost, amount | $ 5,900 | ||
Unrecognized Compensation Cost, remaining recognition period | 1 year 6 months |
Share-Based Payments - Restrict
Share-Based Payments - Restricted Share Units (Details) - Restricted Share Units - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Summary Activity for restricted share units, number of shares | |||
Beginning balance (in shares) | 269,520 | 240,149 | 178,468 |
Granted (in shares) | 85,797 | 84,565 | 109,181 |
Forfeited (in shares) | (3,878) | (4,087) | (5,954) |
Vested (in shares) | (84,116) | (51,107) | (41,546) |
Ending balance (in shares) | 267,323 | 269,520 | 240,149 |
Summary Activity for restricted share units, weighted average grant date fair value | |||
Beginning balance (USD per share) | $ 48.63 | $ 44.07 | $ 43.13 |
Granted (USD per share) | 44.73 | 58.35 | 45.59 |
Forfeited (USD per share) | 50.07 | 52.35 | 43.99 |
Vested and released (USD per share) | 42.90 | 43.01 | 44.04 |
Ending balance (USD per share) | $ 49.16 | $ 48.63 | $ 44.07 |
Share-Based Payments - Performa
Share-Based Payments - Performance Share Units (Details) - Performance Share Units - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Summary Activity for restricted share units, number of shares | |||
Beginning balance (in shares) | 212,105 | 305,240 | 390,350 |
Granted (in shares) | 27,202 | 48,000 | 60,000 |
Forfeited (in shares) | 0 | (227) | (5,162) |
Vested (in shares) | (104,105) | (140,908) | (139,948) |
Ending balance (in shares) | 135,202 | 212,105 | 305,240 |
Summary Activity for restricted share units, weighted average grant date fair value | |||
Beginning balance (USD per share) | $ 47.11 | $ 43.41 | $ 44.65 |
Granted (USD per share) | 44.73 | 58.35 | 45.59 |
Forfeited (USD per share) | 0 | 42.79 | 43.02 |
Vested and released (USD per share) | 42.79 | 42.95 | 44.05 |
Ending balance (USD per share) | $ 49.95 | $ 47.11 | $ 43.41 |
Share-Based Payments - Purchase
Share-Based Payments - Purchase Match Units (Details) - Purchase Match Units - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Summary Activity for restricted share units, number of shares | |||
Beginning balance (in shares) | 70,292 | 72,615 | 74,483 |
Granted (in shares) | 0 | 24,444 | 23,903 |
Forfeited (in shares) | (1,594) | (2,012) | (2,875) |
Vested (in shares) | (24,016) | (24,755) | (22,896) |
Ending balance (in shares) | 44,682 | 70,292 | 72,615 |
Summary Activity for restricted share units, weighted average grant date fair value | |||
Beginning balance (USD per share) | $ 49.40 | $ 45.77 | $ 42.80 |
Granted (USD per share) | 0 | 51.83 | 50.18 |
Forfeited (USD per share) | 50.19 | 48.29 | 43.77 |
Vested and released (USD per share) | 46.28 | 41.33 | 40.88 |
Ending balance (USD per share) | $ 51.05 | $ 49.40 | $ 45.77 |
Share-Based Payments - Stock Op
Share-Based Payments - Stock Options (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Summary of activity for stock options | |||
Beginning balance (in shares) | 0 | 0 | 2,144 |
Exercised (in shares) | 0 | 0 | (2,144) |
Ending balance (in shares) | 0 | 0 | 0 |
Summary of activity for stock options, weighted average exercise price | |||
Beginning balance (USD per share) | $ 0 | $ 0 | $ 25.02 |
Exercised (USD per share) | 0 | 0 | 25.02 |
Ending balance (USD per share) | $ 0 | $ 0 | $ 0 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - Variable interest entity, not primary beneficiary - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Investment in unconsolidated subsidiaries | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity nonconsolidated assets | $ 285.8 | |
Other investments | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity nonconsolidated assets | $ 33.9 | |
Equity Method Investments | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity nonconsolidated assets | $ 269 |
Earnings Per Share (Details)
Earnings Per Share (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||
Weighted average number of common shares outstanding, basic (shares) | 53,598,000 | 53,393,000 | 53,216,000 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average number of common shares outstanding, diluted (shares) | 53,749,000 | 53,611,000 | 53,448,000 |
Effect of dilutive shares on earnings per share (USD per share) | $ 0 | $ (0.01) | $ (0.01) |
Antidilutive shares excluded from computation of earnings per share (in shares) | 2,000 | 7,000 | 0 |
Restricted Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dilutive securities (shares) | 70,000 | 85,000 | 73,000 |
Performance Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dilutive securities (shares) | 63,000 | 110,000 | 135,000 |
Purchase Match Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dilutive securities (shares) | 18,000 | 23,000 | 24,000 |
Segment Information - Narrative
Segment Information - Narrative (Details) | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Syndicate 1,729 | |||
Segment Reporting Information [Line Items] | |||
Proportion of capital provided to support Lloyd's syndicate (percent) | 62.00% | 58.00% | |
Workers' Compensation Insurance | |||
Segment Reporting Information [Line Items] | |||
Alternative market solutions percentage ceded | 100.00% | ||
Syndicate 6,131 | |||
Segment Reporting Information [Line Items] | |||
Proportion of capital provided to support Lloyd's syndicate (percent) | 100.00% |
Segment Information - Financial
Segment Information - Financial Data by Segment (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | $ 202,033,000 | $ 206,070,000 | $ 223,591,000 | $ 187,159,000 | $ 182,972,000 | $ 192,303,000 | $ 180,353,000 | $ 182,903,000 | $ 818,853,000 | $ 738,531,000 | $ 733,281,000 |
Net investment income | 91,884,000 | 95,662,000 | 100,012,000 | ||||||||
Equity in earnings (loss) of unconsolidated subsidiaries | 8,948,000 | 8,033,000 | (5,762,000) | ||||||||
Net realized gains (losses) | (43,488,000) | 16,409,000 | 34,875,000 | ||||||||
Other income | 9,833,000 | 7,514,000 | 7,808,000 | ||||||||
Net losses and loss adjustment expenses | (593,210,000) | (469,158,000) | (443,229,000) | ||||||||
Underwriting, policy acquisition and operating expenses | (238,556,000) | (235,753,000) | (227,610,000) | ||||||||
Segregated portfolio cells dividend (expense) income | (9,122,000) | (15,771,000) | (8,142,000) | ||||||||
Interest expense | (16,117,000) | (16,844,000) | (15,032,000) | ||||||||
Income tax benefit (expense) | 18,032,000 | (21,359,000) | (25,120,000) | ||||||||
Segment operating results | $ (24,450,000) | $ 31,228,000 | $ 28,423,000 | $ 11,856,000 | $ 17,342,000 | $ 28,949,000 | 19,518,000 | $ 41,455,000 | 47,057,000 | 107,264,000 | 151,081,000 |
Depreciation and amortization, net of accretion | 21,255,000 | 28,796,000 | 32,789,000 | ||||||||
Specialty P&C | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 491,787,000 | 449,823,000 | 454,506,000 | ||||||||
Workers' Compensation Insurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 186,079,000 | 163,309,000 | 161,988,000 | ||||||||
Segregated Portfolio Cell Reinsurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 73,940,000 | 68,197,000 | 62,137,000 | ||||||||
Lloyd's Syndicates | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 67,047,000 | 57,202,000 | 54,650,000 | ||||||||
Operating segments | Specialty P&C | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 491,787,000 | 449,823,000 | 454,506,000 | ||||||||
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 | 5,844,000 | 5,688,000 | 5,306,000 | ||||||||
Net losses and loss adjustment expenses | (384,431,000) | (285,250,000) | (266,090,000) | ||||||||
Underwriting, policy acquisition and operating expenses | (112,419,000) | (107,972,000) | (103,656,000) | ||||||||
Segregated portfolio cells dividend (expense) income | 0 | (5,181,000) | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Income tax benefit (expense) | 0 | 0 | 0 | ||||||||
Segment operating results | 781,000 | 57,108,000 | 90,066,000 | ||||||||
Depreciation and amortization, net of accretion | 7,050,000 | 7,922,000 | 7,268,000 | ||||||||
Operating segments | Specialty P&C | Previously Unrecognized Segregated Portfolio Cells (SPC) Dividend Expense | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Dividend expense | 5,200,000 | ||||||||||
Operating segments | Workers' Compensation Insurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 186,079,000 | 163,309,000 | 161,988,000 | ||||||||
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 | 2,412,000 | 2,096,000 | 2,218,000 | ||||||||
Net losses and loss adjustment expenses | (118,483,000) | (102,233,000) | (107,791,000) | ||||||||
Underwriting, policy acquisition and operating expenses | (55,693,000) | (52,576,000) | (53,597,000) | ||||||||
Segregated portfolio cells dividend (expense) income | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Income tax benefit (expense) | 0 | 0 | 0 | ||||||||
Segment operating results | 14,315,000 | 10,596,000 | 2,818,000 | ||||||||
Depreciation and amortization, net of accretion | 3,850,000 | 3,480,000 | 5,600,000 | ||||||||
Operating segments | Segregated Portfolio Cell Reinsurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 73,940,000 | 68,197,000 | 62,137,000 | ||||||||
Net investment income | 1,566,000 | 1,059,000 | 711,000 | ||||||||
Equity in earnings (loss) of unconsolidated subsidiaries | 0 | 0 | 0 | ||||||||
Net realized gains (losses) | (3,149,000) | 3,914,000 | 2,525,000 | ||||||||
Other income | 211,000 | 115,000 | 18,000 | ||||||||
Net losses and loss adjustment expenses | (38,726,000) | (37,455,000) | (35,232,000) | ||||||||
Underwriting, policy acquisition and operating expenses | (22,426,000) | (20,764,000) | (18,936,000) | ||||||||
Segregated portfolio cells dividend (expense) income | (9,122,000) | (10,590,000) | (8,142,000) | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Income tax benefit (expense) | 0 | 0 | 0 | ||||||||
Segment operating results | 2,294,000 | 4,476,000 | 3,081,000 | ||||||||
Depreciation and amortization, net of accretion | 441,000 | 680,000 | 595,000 | ||||||||
Operating segments | Lloyd's Syndicates | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 67,047,000 | 57,202,000 | 54,650,000 | ||||||||
Net investment income | 3,358,000 | 1,736,000 | 1,410,000 | ||||||||
Equity in earnings (loss) of unconsolidated subsidiaries | 0 | 0 | 0 | ||||||||
Net realized gains (losses) | (460,000) | 107,000 | 76,000 | ||||||||
Other income | 322,000 | (1,476,000) | 1,415,000 | ||||||||
Net losses and loss adjustment expenses | (51,570,000) | (44,220,000) | (34,116,000) | ||||||||
Underwriting, policy acquisition and operating expenses | (31,686,000) | (26,963,000) | (22,832,000) | ||||||||
Segregated portfolio cells dividend (expense) income | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Income tax benefit (expense) | 317,000 | 568,000 | (384,000) | ||||||||
Segment operating results | (12,672,000) | (13,046,000) | 219,000 | ||||||||
Depreciation and amortization, net of accretion | (8,000) | (20,000) | 132,000 | ||||||||
Operating segments | Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 0 | 0 | 0 | ||||||||
Net investment income | 86,960,000 | 92,867,000 | 97,891,000 | ||||||||
Equity in earnings (loss) of unconsolidated subsidiaries | 8,948,000 | 8,033,000 | (5,762,000) | ||||||||
Net realized gains (losses) | (39,879,000) | 12,388,000 | 32,274,000 | ||||||||
Other income | 3,525,000 | 2,888,000 | 1,069,000 | ||||||||
Net losses and loss adjustment expenses | 0 | 0 | 0 | ||||||||
Underwriting, policy acquisition and operating expenses | (18,767,000) | (29,275,000) | (30,807,000) | ||||||||
Segregated portfolio cells dividend (expense) income | 0 | 0 | 0 | ||||||||
Interest expense | (16,163,000) | (16,844,000) | (15,032,000) | ||||||||
Income tax benefit (expense) | 17,715,000 | (21,927,000) | (24,736,000) | ||||||||
Segment operating results | 42,339,000 | 48,130,000 | 54,897,000 | ||||||||
Depreciation and amortization, net of accretion | 9,922,000 | 16,734,000 | 19,194,000 | ||||||||
Operating segments | Corporate | Previously Unrecognized Segregated Portfolio Cells (SPC) Dividend Expense | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Income tax benefit (expense) | $ 1,800 | ||||||||||
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 | (2,481,000) | (1,797,000) | (2,218,000) | ||||||||
Net losses and loss adjustment expenses | 0 | 0 | 0 | ||||||||
Underwriting, policy acquisition and operating expenses | 2,435,000 | 1,797,000 | 2,218,000 | ||||||||
Segregated portfolio cells dividend (expense) income | 0 | 0 | 0 | ||||||||
Interest expense | 46,000 | 0 | 0 | ||||||||
Income tax benefit (expense) | 0 | 0 | 0 | ||||||||
Segment operating results | 0 | 0 | 0 | ||||||||
Depreciation and amortization, net of accretion | $ 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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Premiums ceded | $ (126,036) | $ (110,347) | $ (95,315) | ||||||||
Net premiums earned | $ 202,033 | $ 206,070 | $ 223,591 | $ 187,159 | $ 182,972 | $ 192,303 | $ 180,353 | $ 182,903 | 818,853 | 738,531 | 733,281 |
Specialty P&C | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Premiums ceded | (88,235) | (87,760) | (81,425) | ||||||||
Net premiums earned | 491,787 | 449,823 | 454,506 | ||||||||
Premiums assumed | 14,000 | ||||||||||
Specialty P&C | Healthcare professional liability | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross premiums earned | 518,303 | 477,561 | 474,981 | ||||||||
Specialty P&C | Legal professional liability | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross premiums earned | 26,094 | 25,771 | 26,125 | ||||||||
Specialty P&C | Medical technology liability | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross premiums earned | 35,157 | 33,836 | 34,158 | ||||||||
Specialty P&C | Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross premiums earned | 468 | 415 | 667 | ||||||||
Workers' Compensation Insurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Premiums ceded | (96,895) | (90,635) | (85,104) | ||||||||
Net premiums earned | 186,079 | 163,309 | 161,988 | ||||||||
Workers' Compensation Insurance | Traditional business | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross premiums earned | 199,466 | 173,246 | 171,434 | ||||||||
Workers' Compensation Insurance | Alternative market business | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross premiums earned | 83,508 | 80,698 | 75,658 | ||||||||
Segregated Portfolio Cell Reinsurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Premiums ceded | (9,324) | (8,714) | (8,072) | ||||||||
Net premiums earned | 73,940 | 68,197 | 62,137 | ||||||||
Segregated Portfolio Cell Reinsurance | Healthcare professional liability | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross premiums earned | 5,009 | 4,097 | 3,310 | ||||||||
Segregated Portfolio Cell Reinsurance | Alternative market business | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross premiums earned | 78,255 | 72,814 | 66,899 | ||||||||
Lloyd's Syndicates | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross premiums earned | 83,307 | 69,749 | 60,564 | ||||||||
Premiums ceded | (16,260) | (12,547) | (5,914) | ||||||||
Net premiums earned | $ 67,047 | $ 57,202 | $ 54,650 |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Incurred expense related to savings and retirement plans | $ 7 | $ 7.8 | $ 6.9 |
Incurred expense related to non qualified deferred compensation plans | 0.3 | 0.3 | |
ProAssurance deferred compensation liabilities total | $ 21.3 | $ 20.5 | |
Maximum | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Percentage of benefit plan contribution by employer (percent) | 10.00% |
Statutory Accounting and Divi_3
Statutory Accounting and Dividend Restrictions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Consolidated Net Income Related to Statutory Accounting | |||
Statutory Net Earnings | $ 135 | $ 139 | $ 163 |
Statutory Capital and Surplus | 1,041 | $ 1,175 | |
Net assets held at domestic insurance subsidiaries | 1,300 | ||
Statutory dividend payments permitted from insurance subsidiaries | $ 128 |
Quarterly Results of Operatio_3
Quarterly Results of Operations (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |||||||||||
Net premiums earned | $ 202,033 | $ 206,070 | $ 223,591 | $ 187,159 | $ 182,972 | $ 192,303 | $ 180,353 | $ 182,903 | $ 818,853 | $ 738,531 | $ 733,281 |
Net losses and loss adjustment expenses: | |||||||||||
Current year | 179,056 | 169,154 | 184,543 | 152,572 | 149,399 | 161,631 | 144,562 | 147,927 | 685,326 | 603,518 | 587,007 |
Favorable development of reserves established in prior years, net | (24,967) | (21,549) | (22,815) | (22,786) | (44,297) | (32,275) | (29,012) | (28,776) | (92,116) | (134,360) | (143,778) |
Net income (loss) | $ (24,450) | $ 31,228 | $ 28,423 | $ 11,856 | $ 17,342 | $ 28,949 | $ 19,518 | $ 41,455 | $ 47,057 | $ 107,264 | $ 151,081 |
Basic earnings per share (USD per share) | $ (0.46) | $ 0.58 | $ 0.53 | $ 0.22 | $ 0.32 | $ 0.54 | $ 0.37 | $ 0.78 | $ 0.88 | $ 2.01 | $ 2.84 |
Diluted earnings per share (USD per share) | $ (0.46) | $ 0.58 | $ 0.53 | $ 0.22 | $ 0.32 | $ 0.54 | $ 0.36 | $ 0.77 | $ 0.88 | $ 2 | $ 2.83 |
Schedule I - Summary of Inves_2
Schedule I - Summary of Investments - Other Than Investments In Related Parties (Details) $ in Thousands | Dec. 31, 2018USD ($) |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Recorded Cost Basis | $ 3,267,222 |
Fair Value | 3,349,382 |
Amount Which is Presented in the Balance Sheet | 3,349,382 |
U.S. Government or government agencies and authorities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Recorded Cost Basis | 171,770 |
Fair Value | 170,154 |
Amount Which is Presented in the Balance Sheet | 170,154 |
State and municipal bonds | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Recorded Cost Basis | 289,544 |
Fair Value | 293,772 |
Amount Which is Presented in the Balance Sheet | 293,772 |
Foreign governments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Recorded Cost Basis | 30,318 |
Fair Value | 29,892 |
Amount Which is Presented in the Balance Sheet | 29,892 |
Public utilities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Recorded Cost Basis | 76,735 |
Fair Value | 76,059 |
Amount Which is Presented in the Balance Sheet | 76,059 |
All other corporate bonds | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Recorded Cost Basis | 1,160,474 |
Fair Value | 1,140,356 |
Amount Which is Presented in the Balance Sheet | 1,140,356 |
Certificates of deposit | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Recorded Cost Basis | 100 |
Fair Value | 100 |
Amount Which is Presented in the Balance Sheet | 100 |
Mortgage-backed securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Recorded Cost Basis | 426,329 |
Fair Value | 421,653 |
Amount Which is Presented in the Balance Sheet | 421,653 |
Total Fixed Maturities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Recorded Cost Basis | 2,155,270 |
Fair Value | 2,131,986 |
Amount Which is Presented in the Balance Sheet | 2,131,986 |
Public utilities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Recorded Cost Basis | 7,553 |
Fair Value | 9,177 |
Amount Which is Presented in the Balance Sheet | 9,177 |
Banks, trusts and insurance companies | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Recorded Cost Basis | 64,148 |
Fair Value | 62,344 |
Amount Which is Presented in the Balance Sheet | 62,344 |
Industrial, miscellaneous and all other | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Recorded Cost Basis | 379,230 |
Fair Value | 371,416 |
Amount Which is Presented in the Balance Sheet | 371,416 |
Equity Securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Recorded Cost Basis | 450,931 |
Fair Value | 442,937 |
Amount Which is Presented in the Balance Sheet | 442,937 |
Other long-term investments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Recorded Cost Basis | 352,654 |
Fair Value | 466,140 |
Amount Which is Presented in the Balance Sheet | 466,140 |
Short-term investments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Recorded Cost Basis | 308,367 |
Fair Value | 308,319 |
Amount Which is Presented in the Balance Sheet | $ 308,319 |
Schedule II - Condensed Finan_2
Schedule II - Condensed Financial Information of Registrant - Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||||
Fixed maturities available for sale, at fair value | $ 2,093,798 | $ 2,280,242 | ||
Short-term investments | 308,319 | 432,126 | ||
Cash and cash equivalents | 80,471 | 134,495 | $ 117,347 | $ 241,100 |
Other assets | 111,559 | 101,428 | ||
Total Assets | 4,600,726 | 4,929,197 | ||
Liabilities | ||||
Dividends declared and not yet paid | 43,446 | 267,292 | 265,659 | |
Other liabilities | 199,295 | 437,600 | ||
Total Liabilities | 3,077,724 | 3,334,402 | ||
Shareholders’ Equity: | ||||
Common stock | 630 | 628 | ||
Total Shareholders’ Equity | 1,523,002 | 1,594,795 | 1,798,702 | 1,958,354 |
Total Liabilities and Shareholders' Equity | 4,600,726 | 4,929,197 | ||
Parent Company | ||||
Assets | ||||
Investment in subsidiaries, at equity | 1,599,486 | 1,713,656 | ||
Fixed maturities available for sale, at fair value | 78,076 | 155,094 | ||
Short-term investments | 76,347 | 268,181 | ||
Investment in unconsolidated subsidiaries | 875 | 1,200 | ||
Cash and cash equivalents | 25,757 | 81,009 | 31,330 | $ 103,292 |
Due from subsidiaries | 0 | 2,666 | ||
Other assets | 45,683 | 33,829 | ||
Total Assets | 1,826,224 | 2,255,635 | ||
Liabilities | ||||
Due to subsidiaries | 4,067 | 0 | ||
Dividends declared and not yet paid | 43,446 | 267,292 | $ 265,659 | |
Other liabilities | 6,823 | 22,008 | ||
Debt less debt issuance costs | 248,886 | 371,540 | ||
Total Liabilities | 303,222 | 660,840 | ||
Shareholders’ Equity: | ||||
Common stock | 630 | 628 | ||
Other shareholders’ equity, including unrealized gains (losses) on securities of subsidiaries | 1,522,372 | 1,594,167 | ||
Total Shareholders’ Equity | 1,523,002 | 1,594,795 | ||
Total Liabilities and Shareholders' Equity | $ 1,826,224 | $ 2,255,635 |
Schedule II - Condensed Finan_3
Schedule II - Condensed Financial Information of Registrant - Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues | |||||||||||
Net investment income | $ 91,884 | $ 95,662 | $ 100,012 | ||||||||
Equity in earnings (loss) of unconsolidated subsidiaries | 8,948 | 8,033 | (5,762) | ||||||||
Net realized investment gains (losses) | (43,488) | 16,409 | 34,875 | ||||||||
Other income | 9,833 | 7,514 | 7,808 | ||||||||
Total revenues | 886,030 | 866,149 | 870,214 | ||||||||
Expenses | |||||||||||
Interest expense | 16,117 | 16,844 | 15,032 | ||||||||
Total expenses | 857,005 | 737,526 | 694,013 | ||||||||
Income tax expense (benefit) | (18,032) | 21,359 | 25,120 | ||||||||
Segment operating results | $ (24,450) | $ 31,228 | $ 28,423 | $ 11,856 | $ 17,342 | $ 28,949 | $ 19,518 | $ 41,455 | 47,057 | 107,264 | 151,081 |
Other comprehensive income (loss) | (35,238) | (2,488) | (6,456) | ||||||||
Comprehensive income (loss) | 11,819 | 104,776 | 144,625 | ||||||||
Parent Company | |||||||||||
Revenues | |||||||||||
Net investment income | 3,495 | 7,646 | 6,359 | ||||||||
Equity in earnings (loss) of unconsolidated subsidiaries | (325) | (137) | (155) | ||||||||
Net realized investment gains (losses) | (789) | (8,606) | 405 | ||||||||
Other income | 977 | 921 | (960) | ||||||||
Total revenues | 3,358 | (176) | 5,649 | ||||||||
Expenses | |||||||||||
Interest expense | 14,844 | 16,440 | 15,030 | ||||||||
Other expenses | 17,092 | 26,351 | 28,305 | ||||||||
Total expenses | 31,936 | 42,791 | 43,335 | ||||||||
Income (loss) before income tax expense (benefit) and equity in net income of consolidated subsidiaries | (28,578) | (42,967) | (37,686) | ||||||||
Income tax expense (benefit) | (7,142) | (13,293) | (12,583) | ||||||||
Income (loss) before equity in net income of consolidated subsidiaries | (21,436) | (29,674) | (25,103) | ||||||||
Equity in net income of consolidated subsidiaries | 68,493 | 136,938 | 176,184 | ||||||||
Segment operating results | 47,057 | 107,264 | 151,081 | ||||||||
Other comprehensive income (loss) | (35,238) | (2,488) | (6,456) | ||||||||
Comprehensive income (loss) | $ 11,819 | $ 104,776 | $ 144,625 |
Schedule II - Condensed Finan_4
Schedule II - Condensed Financial Information of Registrant - Cash Flow (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided (used) by operating activities | $ 177,265 | $ 173,388 | $ 178,983 |
(Investments in) distributions from unconsolidated subsidiaries, net: | |||
Other partnership investments | (32,153) | (50,362) | (18,613) |
Proceeds from sales or maturities of: | |||
Fixed maturities, available for sale | 914,021 | 932,070 | 752,516 |
Net decrease (increase) in short-term investments | 123,886 | 4,167 | (322,872) |
Unsettled security transactions, net of change | (4,022) | (2,031) | 1,388 |
Other | (1,305) | (2,025) | 6,187 |
Net cash provided (used) by investing activities | 214,897 | 200,275 | (288,802) |
Financing Activities | |||
Repurchase of common stock | 0 | 0 | (2,106) |
Dividends to shareholders | (316,476) | (315,228) | (118,812) |
Other | (4,309) | (7,683) | (2,968) |
Net cash provided (used) by financing activities | (446,186) | (356,515) | (13,934) |
Increase (decrease) in cash and cash equivalents | (54,024) | 17,148 | (123,753) |
Cash and cash equivalents at beginning of period | 134,495 | 117,347 | 241,100 |
Cash and cash equivalents at end of period | 80,471 | 134,495 | 117,347 |
Supplemental Disclosure of Cash Flow Information | |||
Cash paid during the year for interest | 16,165 | 15,892 | 14,732 |
Significant non-cash transactions: | |||
Dividends declared and not yet paid | 43,446 | 267,292 | 265,659 |
Parent Company | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided (used) by operating activities | 27,981 | 67,779 | 41,356 |
(Investments in) distributions from unconsolidated subsidiaries, net: | |||
Other partnership investments | 0 | 0 | (1,000) |
Proceeds from sales or maturities of: | |||
Fixed maturities, available for sale | 169,822 | 295,035 | 100,240 |
Net decrease (increase) in short-term investments | 194,035 | 11,811 | (262,169) |
Dividends from subsidiaries | 29,395 | 99,694 | 70,125 |
Contribution of capital to subsidiaries | 0 | 0 | (1,983) |
Unsettled security transactions, net of change | 0 | 1,100 | (1,100) |
Funds (advanced) repaid for Lloyd's FAL deposit | (21,576) | (25,449) | 0 |
Funds (advanced) repaid under Syndicate Credit Agreement | (11,232) | (6,883) | 1,695 |
Funds (advanced) repaid under a business investment line of credit | 0 | (4,066) | (3,090) |
Other | 330 | (2,276) | (2,805) |
Net cash provided (used) by investing activities | 360,774 | 368,966 | (100,087) |
Financing Activities | |||
Borrowings (repayments) under Revolving Credit Agreement | (123,000) | (77,000) | 100,000 |
Repurchase of common stock | 0 | 0 | (2,106) |
Subsidiary payments for common shares and share-based compensation awarded to subsidiary employees | 1,154 | 12,030 | 11,384 |
Dividends to shareholders | (316,476) | (315,228) | (118,812) |
Other | (5,685) | (6,868) | (3,697) |
Net cash provided (used) by financing activities | (444,007) | (387,066) | (13,231) |
Increase (decrease) in cash and cash equivalents | (55,252) | 49,679 | (71,962) |
Cash and cash equivalents at beginning of period | 81,009 | 31,330 | 103,292 |
Cash and cash equivalents at end of period | 25,757 | 81,009 | 31,330 |
Supplemental Disclosure of Cash Flow Information | |||
Cash paid during the year for income taxes, net of refunds | 4,966 | 17,193 | (8,519) |
Cash paid during the year for interest | 14,777 | 15,892 | 14,732 |
Significant non-cash transactions: | |||
Dividends declared and not yet paid | 43,446 | 267,292 | 265,659 |
Securities transferred at fair value as dividends from subsidiaries | $ 98,292 | $ 190,709 | $ 174,270 |
Schedule II - Condensed Finan_5
Schedule II - Condensed Financial Information of Registrant - Notes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |||
Return of invested capital from unconsolidated subsidiaries | $ 84,534 | $ 32,539 | $ 7,084 |
Accounting Standards Update 2016-15 | |||
Condensed Financial Statements, Captions [Line Items] | |||
Return of invested capital from unconsolidated subsidiaries | $ 24,400 | $ 9,900 |
Schedule III - Supplementary _2
Schedule III - Supplementary Insurance Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||||||||||
Net premiums earned | $ 818,853 | $ 738,531 | $ 733,281 | ||||||||
Net investment income | 91,884 | 95,662 | 100,012 | ||||||||
Losses and loss adjustment expenses incurred related to current year, net of reinsurance | $ 179,056 | $ 169,154 | $ 184,543 | $ 152,572 | $ 149,399 | $ 161,631 | $ 144,562 | $ 147,927 | 685,326 | 603,518 | 587,007 |
Losses and loss adjustment expenses incurred related to prior year, net of reinsurance | (24,967) | $ (21,549) | $ (22,815) | $ (22,786) | (44,297) | $ (32,275) | $ (29,012) | $ (28,776) | (92,116) | (134,360) | (143,778) |
Paid losses and loss adjustment expenses, net of reinsurance | 529,979 | 476,315 | 479,252 | ||||||||
Underwriting, policy acquisition and operating expenses: | 104,501 | 95,751 | 88,378 | ||||||||
Other underwriting, policy acquisition and operating expenses | 134,055 | 140,002 | 139,232 | ||||||||
Net premiums written | 834,914 | 764,018 | 738,533 | ||||||||
Deferred policy acquisition costs | 54,116 | 50,261 | 54,116 | 50,261 | 46,809 | ||||||
Reserve for losses and loss adjustment expenses | 2,119,847 | 2,048,381 | 2,119,847 | 2,048,381 | 1,993,428 | ||||||
Unearned premiums | $ 415,211 | $ 398,884 | 415,211 | 398,884 | 372,563 | ||||||
Specialty P&C | |||||||||||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||||||||||
Net premiums earned | 491,787 | 449,823 | 454,506 | ||||||||
Losses and loss adjustment expenses incurred related to prior year, net of reinsurance | (77,085) | (119,293) | (137,159) | ||||||||
Net premiums written | 494,148 | 466,621 | 454,718 | ||||||||
Workers' Compensation Insurance | |||||||||||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||||||||||
Net premiums earned | 186,079 | 163,309 | 161,988 | ||||||||
Losses and loss adjustment expenses incurred related to prior year, net of reinsurance | (8,051) | (5,742) | (1,551) | ||||||||
Net premiums written | 195,350 | 173,566 | 163,513 | ||||||||
Segregated Portfolio Cell Reinsurance | |||||||||||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||||||||||
Net premiums earned | 73,940 | 68,197 | 62,137 | ||||||||
Net investment income | 1,566 | 1,059 | 711 | ||||||||
Losses and loss adjustment expenses incurred related to prior year, net of reinsurance | (8,967) | (8,513) | (4,569) | ||||||||
Net premiums written | 75,547 | 68,862 | 64,028 | ||||||||
Lloyd's Syndicates | |||||||||||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||||||||||
Net premiums earned | 67,047 | 57,202 | 54,650 | ||||||||
Net investment income | 3,358 | 1,736 | 1,410 | ||||||||
Losses and loss adjustment expenses incurred related to prior year, net of reinsurance | 1,987 | (812) | (499) | ||||||||
Net premiums written | 69,869 | 54,969 | 56,274 | ||||||||
Corporate | |||||||||||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||||||||||
Net investment income | 86,960 | 92,867 | 97,891 | ||||||||
Operating segments | Specialty P&C | |||||||||||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||||||||||
Losses and loss adjustment expenses incurred related to current year, net of reinsurance | 461,516 | 404,543 | 403,249 | ||||||||
Paid losses and loss adjustment expenses, net of reinsurance | 354,221 | 320,776 | 341,189 | ||||||||
Underwriting, policy acquisition and operating expenses: | 52,253 | 47,615 | 44,344 | ||||||||
Other underwriting, policy acquisition and operating expenses | 60,166 | 60,357 | 59,312 | ||||||||
Operating segments | Workers' Compensation Insurance | |||||||||||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||||||||||
Losses and loss adjustment expenses incurred related to current year, net of reinsurance | 126,534 | 107,975 | 109,342 | ||||||||
Paid losses and loss adjustment expenses, net of reinsurance | 108,742 | 96,734 | 89,418 | ||||||||
Underwriting, policy acquisition and operating expenses: | 16,864 | 14,551 | 13,273 | ||||||||
Other underwriting, policy acquisition and operating expenses | 38,829 | 38,025 | 40,324 | ||||||||
Operating segments | Segregated Portfolio Cell Reinsurance | |||||||||||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||||||||||
Losses and loss adjustment expenses incurred related to current year, net of reinsurance | 47,693 | 45,968 | 39,801 | ||||||||
Paid losses and loss adjustment expenses, net of reinsurance | 29,320 | 28,761 | 27,391 | ||||||||
Underwriting, policy acquisition and operating expenses: | 21,039 | 19,927 | 18,385 | ||||||||
Other underwriting, policy acquisition and operating expenses | 1,387 | 837 | 551 | ||||||||
Operating segments | Lloyd's Syndicates | |||||||||||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||||||||||
Losses and loss adjustment expenses incurred related to current year, net of reinsurance | 49,583 | 45,032 | 34,615 | ||||||||
Paid losses and loss adjustment expenses, net of reinsurance | 37,496 | 29,926 | 21,254 | ||||||||
Underwriting, policy acquisition and operating expenses: | 15,913 | 15,194 | 13,769 | ||||||||
Other underwriting, policy acquisition and operating expenses | 15,773 | 11,769 | 9,063 | ||||||||
Operating segments | Corporate | |||||||||||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||||||||||
Other underwriting, policy acquisition and operating expenses | 18,767 | 29,275 | 30,807 | ||||||||
Inter-segment Eliminations | |||||||||||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||||||||||
Paid losses and loss adjustment expenses, net of reinsurance | 200 | 118 | 0 | ||||||||
Underwriting, policy acquisition and operating expenses: | (1,568) | (1,536) | (1,393) | ||||||||
Other underwriting, policy acquisition and operating expenses | $ (867) | $ (261) | $ (825) |
Schedule IV - Reinsurance (Deta
Schedule IV - Reinsurance (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property and Liability | |||||||||||
Premiums earned | $ 903,354 | $ 821,249 | $ 790,791 | ||||||||
Premiums ceded | (126,036) | (110,347) | (95,315) | ||||||||
Premiums assumed | 41,535 | 27,629 | 37,805 | ||||||||
Net premiums earned | $ 202,033 | $ 206,070 | $ 223,591 | $ 187,159 | $ 182,972 | $ 192,303 | $ 180,353 | $ 182,903 | $ 818,853 | $ 738,531 | $ 733,281 |
Percentage of amount assumed to net | 5.07% | 3.74% | 5.16% |