Safety Insurance (SAFT) 10-K 28 Feb 19 2018 FY Annual report Financial data

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
Entity Registrant Name	SAFETY INSURANCE GROUP INC
Entity Central Index Key	1,172,052
Document Type	10-K
Document Period End Date	Dec. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 1,241,821,554
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		15,286,569
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	FY

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Investments:
Fixed maturities, available for sale, at fair value (amortized cost: $1,175,413 and $1,156,697)	$ 1,161,862	$ 1,172,026
Equity securities, at fair value (cost: $142,948 and $90,481)	148,011	111,867
Other invested assets	23,481	23,162
Total investments	1,333,354	1,307,055
Cash and cash equivalents	37,582	41,708
Accounts receivable, net of allowance for doubtful accounts	190,062	190,649
Receivable for securities sold	1,039	1,380
Accrued investment income	8,420	8,876
Taxes recoverable		908
Receivable from reinsurers related to paid loss and loss adjustment expenses	13,691	24,776
Receivable from reinsurers related to unpaid loss and loss adjustment expenses	108,398	83,085
Ceded unearned premiums	33,974	32,175
Deferred policy acquisition costs	73,355	72,202
Deferred income taxes	8,749
Equity and deposits in pools	28,094	28,246
Other assets	19,522	16,219
Total assets	1,856,240	1,807,279
Liabilities
Loss and loss adjustment expense reserves	584,719	574,054
Unearned premium reserves	435,380	428,257
Accounts payable and accrued liabilities	71,896	60,701
Payable for securities purchased	5,156	4,188
Payable to reinsurers	12,220	13,801
Deferred income taxes		2,917
Taxes payable	6,090
Other liabilities	22,135	22,345
Total liabilities	1,137,596	1,106,263
Commitments and contingencies (Note 7)
Shareholders' equity
Common stock: $0.01 par value; 30,000,000 shares authorized; 17,566,180 and 17,499,544 shares issued	176	175
Additional paid-in capital	196,292	189,714
Accumulated other comprehensive (loss) income, net of taxes	(10,706)	24,269
Retained earnings	616,717	570,693
Treasury stock, at cost: 2,279,570 shares	(83,835)	(83,835)
Total shareholders' equity	718,644	701,016
Total liabilities and shareholders' equity	$ 1,856,240	$ 1,807,279

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Consolidated Balance Sheets
Fixed maturity securities, amortized cost	$ 1,175,413	$ 1,156,697
Equity securities, at cost	$ 142,948	$ 90,481
Common stock par value (in dollars per share)	$ 0.01	$ 0.01
Common stock shares authorized	30,000,000	30,000,000
Common stock shares issued	17,566,180	17,499,544
Treasury stock shares	2,279,570	2,279,570

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Revenues
Net earned premiums		$ 781,587	$ 774,420	$ 755,760
Net investment income		43,788	38,758	38,413
Earnings from partnership investments		6,915	2,082	3,185
Net realized gains on investments		3,226	6,036	5,559
Change in net unrealized gains on equity investments		(16,324)
Net impairment losses on investments (a)	[1]	(228)	(256)	(798)
Finance and other service income		17,533	18,073	17,703
Total revenue		836,497	839,113	819,822
Expenses
Losses and loss adjustment expenses		485,513	503,887	493,433
Underwriting, operating and related expenses		246,643	248,436	233,017
Interest expense		90	90	90
Total expenses		732,246	752,413	726,540
Income before income taxes		104,251	86,700	93,282
Income tax expense		21,056	24,313	28,697
Net income		$ 83,195	$ 62,387	$ 64,585
Earnings per weighted average common share:
Basic (in dollars per share)		$ 5.48	$ 4.13	$ 4.29
Diluted (in dollars per share)		5.43	4.10	4.27
Cash dividends paid per common share (in dollars per share)		$ 3.20	$ 3	$ 2.80
Number of shares used in computing earnings per share:
Basic (in shares)		15,080,269	15,010,751	14,946,453
Diluted (in shares)		15,229,898	15,135,348	15,032,263
[1]	No portion of the other-than-temporary impairments recognized in the period indicated were included in Other Comprehensive Income.

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Consolidated Statements of Comprehensive Income
Net income	$ 83,195	$ 62,387	$ 64,585
Other comprehensive (loss) income, net of tax:
Unrealized holding (losses) gains during the period, net of income tax (benefit) expense of ($5,387), $6,027, and $1,611.	(20,267)	12,349	2,992
Reclassification adjustment for net realized gains on investments included in net income, net of income tax expense of ($678), ($2,112), and ($1,945).	(2,549)	(3,923)	(3,613)
Other comprehensive (loss) income, net of tax:	(22,816)	8,426	(621)
Comprehensive income	$ 60,379	$ 70,813	$ 63,964

Consolidated Statements of Co_2

Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Consolidated Statements of Comprehensive Income.
Tax (benefit) expense on unrealized holding (losses) gains during the period	$ (5,387)	$ 6,027	$ 1,611
Tax expense on reclassification adjustment for gains included in net income	$ (678)	$ (2,112)	$ (1,945)

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive (Loss) Income, Net of Taxes	Retained Earnings	Treasury Stock	Total
Balance at Dec. 31, 2015	$ 174	$ 179,896	$ 16,464	$ 531,800	$ (83,835)	$ 644,499
Net income				64,585		64,585
Unrealized gains (losses) on securities available for sale, net of deferred federal income taxes			(621)			(621)
Restricted share awards issued		280				280
Recognition of employee share-based compensation, net of deferred federal income taxes		4,122				4,122
Exercise of options, net of federal income taxes		251				251
Dividends paid and accrued				(42,390)		(42,390)
Balance at Dec. 31, 2016	174	184,549	15,843	553,995	(83,835)	670,726
Net income				62,387		62,387
Unrealized gains (losses) on securities available for sale, net of deferred federal income taxes			8,426			8,426
Restricted share awards issued	1	362				363
Recognition of employee share-based compensation, net of deferred federal income taxes		4,803				4,803
Dividends paid and accrued				(45,689)		(45,689)
Balance at Dec. 31, 2017	175	189,714	24,269	570,693	(83,835)	701,016
Cumulative effect of adoption of updated accounting guidance for equity financial instruments at January 1, 2018			(16,895)	16,895
Reclassification of certain tax effects from accumulated other comprehensive (loss) income at January 1, 2018			4,736	(4,736)
Net income				83,195		83,195
Unrealized gains (losses) on securities available for sale, net of deferred federal income taxes			(22,816)			(22,816)
Restricted share awards issued	1	375				376
Recognition of employee share-based compensation, net of deferred federal income taxes		6,203				6,203
Dividends paid and accrued				(49,330)		(49,330)
Balance at Dec. 31, 2018	$ 176	$ 196,292	$ (10,706)	$ 616,717	$ (83,835)	$ 718,644

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash flows from operating activities:
Net income		$ 83,195	$ 62,387	$ 64,585
Adjustments to reconcile net income to net cash provided by operating activities:
Investment amortization, net		5,273	6,962	5,388
Fixed Asset depreciation, net		5,467	5,037	4,382
Stock based compensation		6,579	5,166	4,303
(Credit) provision for deferred income taxes		(5,600)	2,085	1,681
Net realized gains on investments		(3,226)	(6,036)	(5,559)
Net impairment losses on investments	[1]	228	256	798
Earnings from partnership investments		(650)	(2,082)	(3,185)
Change in net unrealized gains on equity investments		16,324
Changes in assets and liabilities:
Accounts receivable		587	(2,953)	(9,129)
Accrued investment income		456	(18)	64
Receivable from reinsurers		(14,228)	5,367	(3,995)
Ceded unearned premiums		(1,799)	(3,590)	(5,363)
Deferred policy acquisition costs		(1,153)	(1,206)	(2,059)
Taxes recoverable		908	(908)	15,497
Other assets		2,565	(5,400)	348
Loss and loss adjustment expense reserves		10,665	13,733	6,344
Unearned premium reserves		7,123	10,224	16,072
Taxes payable		6,090	(1,110)
Accounts payable and accrued liabilities		10,678	(6,333)	14,068
Payable to reinsurers		(1,581)	299	1,955
Other liabilities		(210)	160	(7,371)
Net cash provided by operating activities		127,691	82,040	98,824
Cash flows from investing activities:
Fixed maturities purchased		(304,654)	(205,226)	(295,211)
Equity securities purchased		(66,832)	(27,440)	(30,060)
Other invested assets purchased		(6,648)	(7,492)	(5,248)
Proceeds from sales and paydowns of fixed maturities		217,221	151,071	99,682
Proceeds from maturities, redemptions, and calls of fixed maturities		63,628	37,868	99,883
Proceed from sales of equity securities		18,654	34,664	46,620
Proceeds from other invested assets redeemed		6,810	7,589	4,992
Fixed assets purchased		(11,183)	(5,958)	(4,910)
Net cash used for investing activities		(83,004)	(14,924)	(84,252)
Cash flows from financing activities:
Proceeds from stock options exercised				257
Excess tax expense from stock options exercised				(6)
Dividends paid to shareholders		(48,813)	(45,460)	(42,265)
Net cash used for financing activities		(48,813)	(45,460)	(42,014)
Net (decrease) increase in cash and cash equivalents		(4,126)	21,656	(27,442)
Cash and cash equivalents at beginning of year		41,708	20,052	47,494
Cash and cash equivalents at end of period		37,582	41,708	20,052
Supplemental disclosure of cash flow information:
Federal and state income taxes		20,115	23,721	9,826
Interest		$ 75	$ 75	$ 75
[1]	No portion of the other-than-temporary impairments recognized in the period indicated were included in Other Comprehensive Income.

Basis of Presentation

Basis of Presentation	12 Months Ended
	Dec. 31, 2018
Basis of Presentation
Basis of Presentation	1. The consolidated financial statements have been prepared on the basis of accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements include Safety Insurance Group, Inc. and its subsidiaries (the “Company”). The subsidiaries consist of Safety Insurance Company, Safety Indemnity Insurance Company, Safety Property and Casualty Insurance Company, Safety Asset Management Corporation (“SAMC”), and Safety Management Corporation, which is SAMC’s holding company. All intercompany transactions have been eliminated. The Company was incorporated on June 25, 2001 in the State of Delaware. On October 16, 2001, the Company acquired all of the issued and outstanding common stock of Thomas Black Corporation (“TBC”) and its property and casualty subsidiaries. TBC subsequently merged with and into Safety Insurance Group, Inc. with Safety Insurance Group, Inc. being the corporation surviving the merger. The Company is a leading provider of property and casualty insurance focused primarily on the Massachusetts market. The Company’s principal product line is private passenger automobile insurance, which accounted for 55.7% of its direct written premiums in 2018. The Company operates through its insurance company subsidiaries, Safety Insurance Company, Safety Indemnity Insurance Company, and Safety Property and Casualty Insurance Company (together referred to as the “Insurance Subsidiaries”). The Insurance Subsidiaries began writing private passenger automobile and homeowners insurance in New Hampshire during 2008, personal umbrella insurance in New Hampshire during 2009, and commercial automobile insurance in New Hampshire during 2011. The Insurance Subsidiaries began writing all of these lines of business in Maine during 2016.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2018
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	2. Investments Investments in fixed maturities, which include taxable and non‑taxable bonds and redeemable preferred stocks, are reported at fair value. Investments in equity securities, which include interests in common stocks, mutual funds and a real estate investment trust (“REIT”), are reported at fair value. Fair values for fixed maturity securities are based on estimates obtained from independent pricing services. Fair values for equity securities are derived from external market quotations, with the exception of the REIT whose fair value was determined using the trust’s net asset value obtained from its audited financial statements. Short‑term investments, which consist of U.S. Treasury securities, are reported at amortized cost, which approximates fair value. Other long‑term investments consist of investments in limited partnerships. The partnership interest is accounted for using the equity method of accounting and recorded in earnings from partnership investments. The carrying value of this investment is written down, or impaired, to fair value when a decline in value is considered to be other‑than‑temporary. In applying the equity method (including assessment for other‑than‑temporary impairment), the Company uses financial information provided by the investee, generally on a three month lag. Unrealized gains or losses on fixed maturity securities reported at fair value are excluded from earnings and reported in a separate component of shareholders’ equity, known as “Accumulated other comprehensive (loss) income, net of taxes,” until realized. Realized gains or losses on the sale or maturity of investments are determined based on the specific cost identification method. Fixed maturities and equity securities that experience declines in value that are other‑than‑temporary are written down to fair value with a corresponding charge to net impairment losses on investments. Investment income is recognized on an accrual basis of accounting. Bonds not backed by other loans are amortized using the interest method. Loan‑backed bonds and structured securities are amortized using the interest method and significant changes in estimated cash flows from the original purchase assumptions are accounted for using the retrospective method. Cash and Cash Equivalents Cash and cash equivalents includes money market accounts and United States (“U.S.”) Treasury bills with original maturities of three months or less from the date of purchase. U.S. Treasury bills are stated at amortized cost, which approximates fair value. Accounts Receivable Amounts included in accounts receivable represent premiums as well as finance charges, the majority of which are both billed on a monthly installment basis. Accounts receivable are stated net of allowances for doubtful accounts. At December 31, 2018 and 2017, these allowances were $482 and $414, respectively. Uncollected premium balances over ninety days past due are written off. Deferred Policy Acquisition Costs Amounts that vary with and are primarily related to the successful acquisition of a new or renewal insurance contract, principally commissions and premium taxes, are deferred and amortized ratably over the effective period of the policies. All other acquisition expenses are expensed as incurred. Deferred policy acquisition costs are reviewed to determine if they are recoverable from future income, and if not, are charged to expense. Future investment income attributable to related premiums is not taken into account in measuring the recoverability of the carrying value of this asset. Amortization of acquisition costs in the amount of $146,601, $144,703, and $141,540 was charged to underwriting, operating and other expenses for the years ended 2018, 2017 and 2016, respectively. Equity and Deposits in Pools Equity and deposits in pools represents the net receivable amounts from the residual market mechanisms, Commonwealth Automobile Reinsurers (“CAR”) for automobile and Massachusetts Property Insurance Underwriting Association (“FAIR Plan”) for homeowner insurance in Massachusetts. See Note 9 for a discussion of the Company’s accounting for amounts assumed from residual markets. Equipment and Leasehold Improvements Property, equipment, leasehold improvements, and software which are included in other assets are carried at cost less accumulated depreciation. Depreciation is provided using the straight‑ line or accelerated method over the estimated useful lives of the related assets, which range from 3 to 10 years. Amortization of leasehold improvements is provided using the straight‑line method over the term of the lease. The costs of computer software developed or obtained for internal use are capitalized and amortized over the estimated life of the business system, beginning when the software is ready for its intended use. Maintenance and repairs are charged to expense as incurred. Losses and Loss Adjustment Expenses Liabilities for losses and loss adjustment expenses (“LAE”) include case basis estimates for open claims reported prior to year‑end and estimates of unreported claims and claim adjustment expenses, net of salvage and subrogation. The estimates are continually reviewed and modified to reflect current conditions, and any resulting adjustments are reflected in current operating results. Adjustments for anticipated salvage and subrogation are recorded on incurred and reported and incurred but not reported losses. The Company determines its loss and LAE reserves estimate based upon the analysis of our actuaries. A reasonable estimate is derived by selecting a point estimate within a range of indications as calculated by our actuaries using generally accepted actuarial techniques. The key assumption in most actuarial analysis is that past patterns of frequency and severity will repeat in the future, unless a significant change in the factors described above takes place. Our key factors and resulting assumptions are the ultimate frequency and severity of claims, based upon the most recent ten years of claims reported to the Company, and the data reported to us to calculate our share of the residual market. For each accident year and each coverage within a line of business our actuaries calculate the ultimate losses incurred. Premiums and Unearned Premiums Premiums are earned over the terms of the respective policies, which are generally one year. Unearned premiums represent the portion of premiums written applicable to the unexpired terms of the policies. Ceded premiums are charged to income over the terms of the respective policies and the applicable term of the reinsurance contracts with third‑party reinsurers. Ceded unearned premiums represent the unexpired portion of premiums ceded to CAR and other reinsurers. Premiums received in advance of the policy effective date are recorded as a liability and not recognized as income until earned. Such amounts are included in accounts payable and accrued liabilities and totaled $14,649 and $14,371 at December 31, 2018 and 2017, respectively. Reinsurance Liabilities for unearned premiums and unpaid losses are stated before deductions for ceded reinsurance. The ceded amounts are carried as receivables. Earned premiums are stated net of deductions for ceded reinsurance. The Company, as primary insurer, will be required to pay losses in their entirety in the event that the reinsurers are unable to discharge their obligations under the reinsurance agreements. Advertising Costs Advertising costs are charged to expense when they are incurred. Total advertising costs were $2,500, $2,216 and $2,063 for the years ended December 31, 2018, 2017, and 2016, respectively. Finance and Other Service Income Finance and other service income primarily include revenues from premium installment charges, which are recognized when earned. Income Taxes The Company and its subsidiaries file a consolidated U.S. federal income tax return. The method of allocation among members of the consolidated group is subject to a written agreement approved by the Board of Directors (the “Board”). The consolidated tax liability (benefit) is allocated on the basis of the members’ proportionate contribution to consolidated taxable income (loss). Deferred income taxes are generally recognized when assets and liabilities have different values for financial statement and tax reporting purposes, and for other temporary taxable and deductible differences as defined by Accounting Standards Codification (“ASC”) 740, Income Taxes. A valuation allowance is established where management has assessed that it is more likely than not that the Company will not be able to utilize the full deferred tax asset. On December 22, 2017, the TCJA was enacted, which significantly amends the Internal Revenue Code of 1986. The TCJA, among other things, reduces the corporate tax rate from a statutory rate of 35% to 21%, imposes additional limitations on net operating losses and executive compensation, allows for the full expensing of certain capital expenditures, and enacts other changes impacting the insurance industry. Earnings per Weighted Average Common share Basic earnings per weighted average common share (“EPS”) are calculated by dividing net income by the weighted average number of basic common shares outstanding during the period. Diluted earnings per share amounts are based on the weighted average number of common shares including non-vested performance stock grants and the net effect of potentially dilutive common stock options. The following table sets forth the computation of basic and diluted EPS for the periods indicated. Years Ended December 31, 2018 2017 2016 Earnings attributable to common shareholders - basic and diluted): Net income from continuing operations $ 83,195 $ 62,387 $ 64,585 Allocation of income for participating shares (496) (392) (436) Net income from continuing operations attributed to common shareholders $ 82,699 $ 61,995 $ 64,149 Earnings per share denominator - basis and diluted Total weighted average common shares outstanding, including participating shares 15,170,754 15,105,558 15,048,048 Less: weighted average participating shares (90,485) (94,807) (101,595) Basic earnings per share denominator 15,080,269 15,010,751 14,946,453 Common equivalent shares- stock options — — 134 Common equivalent shares- non-vested performance stock grants 149,629 124,597 85,676 Diluted earnings per share denominator 15,229,898 15,135,348 15,032,263 Basic earnings per share $ 5.48 $ 4.13 $ 4.29 Diluted earnings per share $ 5.43 $ 4.10 $ 4.27 Undistributed earnings attributable to common shareholders - basic and diluted: Net income from continuing operations attributable to common shareholders -Basic $ 5.48 $ 4.13 $ 4.29 Dividends declared (3.20) (3.00) (2.80) Undistributed earnings $ 2.28 $ 1.13 $ 1.49 Net income from continuing operations attributable to common shareholders -Diluted $ 5.43 $ 4.10 $ 4.27 Dividends declared (3.20) (3.00) (2.80) Undistributed earnings $ 2.23 $ 1.10 $ 1.47 Diluted EPS excludes stock options with exercise prices and exercise tax benefits greater than the average market price of the Company’s common stock during the period because their inclusion would be anti‑dilutive. There were no anti‑dilutive stock options or non-vested performance stock grants for the years ended December 31, 2018 and 2017. Share‑Based Compensation Accounting Standards Codification (“ASC”) 718, Compensation —Stock Compensation requires the Company to measure and recognize the cost of employee services received in exchange for an award of equity instruments. Under the provisions of ASC 718, share-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as an expense over the requisite service period (generally the vesting period of the equity grant). See Note 6 for further information regarding share‑based compensation. Use of Estimates 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 and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Recent Accounting Pronouncements On August 17, 2018, the SEC adopted amendments to eliminate, integrate, update or modify certain of its disclosure requirements. The amendments which are focused on disclosure requirements that have become redundant, duplicative, overlapping, outdated, or superseded, are intended to facilitate the disclosure of information to investors and simplify compliance without significantly altering the total mix of information provided to investors. The amended rules generally reduce disclosures but some provisions added new disclosure requirements. The amendment is effective November 5, 2018 and the Company has elected to early adopt the amendment in this filing. The adoption of the new rules did not have a material impact on the Company’s financial position, results of operations, cash flows, or disclosures. In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . The ASU permits a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the newly enacted federal corporate income tax rate as a result of the 2017 Tax Cuts and Jobs Act (“TCJA”). The amount of the reclassification is the difference between the historical corporate income tax rate of thirty-five percent and the newly enacted twenty-one percent corporate income tax rate. The ASU is effective for fiscal years beginning after December 15, 2018. Early adoption is permitted. The Company adopted the updated guidance effective January 1, 2018 and elected to reclassify the income tax effects of the TCJA from accumulated other comprehensive income (“AOCI”) to retained earnings at the beginning of the period of adoption. This reclassification resulted in a decrease of $4,736 in retained earnings as of January 1, 2018 and an increase in AOCI by the same amount. In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities , which requires certain premiums on callable debt securities to be amortized to the earliest call date. The amortization period for callable debt securities purchased at a discount will not be impacted. For public business entities with calendar year ends, the amendments in ASU No. 2017-08 are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. If early adopted in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes the interim period. The Company is evaluating the impact of ASU 2017-08 on its financial position and results of operations. The extent of the impact will depend upon the nature and characteristics of the Company’s portfolio at the adoption date. In August 2016, the FASB issued ASU 2016-15 , Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 reduces diversity in practice in how certain transactions are classified in the statement of cash flows. The amendments in ASU 2016-15 provide guidance on specific cash flow issues including debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, and distributions received from equity method investees. ASU 2016-15 is effective for annual and interim periods beginning after December 15, 2017. The impact of the adoption of ASU 2016-15 was not material to the Company’s Consolidated Statements of Cash Flows. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Statements , which amends the guidance for the impairment of financial instruments and is expected to result in more timely recognition of impairment losses. The update introduces an impairment model referred to as the current expected credit loss (“CECL”) model. The impairment model is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses. The ASU is also intended to reduce the complexity of the current guidance by decreasing the number of credit impairment models that entities use to account for debt instruments. For public business entities that are SEC filers, the amendments in ASU No. 2016-13 are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Entities may adopt the amendments in this update earlier as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is evaluating the impact of ASU 2016-13 on its financial position and results of operations with regards to potential credit losses on its Available For Sale investment portfolio. The extent of the increase of credit losses is under evaluation, but will depend upon the nature and characteristics of the Company’s portfolio at the adoption date, and the macroeconomic conditions and forecasts at the date. In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . This ASC update requires all excess tax benefits and tax deficiencies to be recognized as income tax expense or benefit in the income statement, and be treated as discrete items in the reporting period in which they occur. Additionally, excess tax benefits will be classified with other income tax cash flows as an operating activity and cash paid by an employer when directly withholding shares for tax withholding purposes will be classified as a financing activity. Awards that are used to settle employee tax liabilities will be allowed to qualify for equity classification for withholdings up to the maximum statutory tax rates in applicable jurisdictions. Regarding forfeitures, a company can make an entity-wide accounting policy election to either continue estimating the number of awards that are expected to vest or account for forfeitures when they occur. The updated guidance was effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods. The impact of the adoption of ASU 2016-09 was not material to the Company’s financial position, results of operations or cash flows. In February 2016, the FASB issued ASU 2016-02, Leases . ASU 2016-02 establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. In 2018, the FASB issued two additional updates, ASU 2018-10, Codification Improvements to Topic 842, Leases and ASU 2018-11, Leases (Topic 842): Targeted Improvements, both of which have the same effective date and transition requirements as ASU 2016-02. ASU 2018-10 makes sixteen technical corrections to alleviate unintended consequences from applying the new standard and does not make any substantive changes to the core provisions or principals of the new standard. ASU 2019-11 creates an additional transition method which allows companies to elect to not adjust their comparative period financial information and disclosures for the effects of the new lease standard and also creates a practical expedient for lessors to not separate lease and non-lease components. The Company is currently evaluating the impact of ASU 2016-02, ASU 2018-10 and ASU 2018-11 by reviewing its existing lease contracts. The Company expects a gross-up of its Consolidated Balance Sheets as a result of recognizing lease liabilities and right of use assets. The gross-up related to lease liabilities is approximately $35,000 which primarily reflects the liability associated with our leased office space. The Company does not expect material changes to the Consolidated Statements of Operations. In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities . The amendments in this ASC update address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01: (1) requires equity investments (except those accounted for under the equity method or those that result in the consolidation of the investee) to be measured at fair value with changes in the fair value recognized in net income; (2) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (3) requires the use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes; and (4) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the notes to the financial statements. These amendments were effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company adopted the updated guidance effective January 1, 2018 which resulted in the recognition of $16,895 of net after-tax unrealized gains on equity investments as a cumulative effect adjustment that increased retained earnings as of January 1, 2018 and decreased AOCI by the same amount. At December 31, 2017, equity investments were classified as available-for-sale on the Company’s Consolidated Balance Sheets; however, upon adoption, the updated guidance eliminated the available-for-sale balance sheet classification for equity investments In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosures of Uncertainties about an Entity’s Ability as a Going Concern. ASU 2014-15 provides guidance on determining when and how to disclose going concern uncertainties in the financial statements, and requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. ASU 2014-15 is effective for annual periods ending after December 15, 2016 and interim periods thereafter. Management has assessed and concluded that there were no conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date the financial statements were issued. In May 2014, the FASB issued as final, ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , which supersedes virtually all existing revenue recognition guidance under GAAP. The update's core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The update was effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017 and allows early adoption. ASU 2014-09 allows for the use of either the retrospective or modified retrospective approach of adoption. The Company adopted the updated guidance effective January 1, 2018 using the modified retrospective approach. The adoption of ASU 2014-09 did not have a material impact on the Company’s financial position, results of operations, cash flows, or disclosures. Segments Segment Reporting, the financial information of the segment is presented consistent with the way results are regularly evaluated by the chief operating decision maker in deciding how to allocate resources and in assessing performance.

Investments

Investments	12 Months Ended
	Dec. 31, 2018
Investments
Investments	3. The gross unrealized gains and losses on investments in fixed maturity securities, including redeemable preferred stocks that have characteristics of fixed maturities, and equity securities, including interests in mutual funds, and other invested assets, were as follows for the periods indicated. As of December 31, 2018 Gross Unrealized Losses (3) Cost or Gross Non-OTTI OTTI Estimated Amortized Unrealized Unrealized Unrealized Fair Cost Gains Losses Losses (4) Value U.S. Treasury securities $ 1,807 $ — $ (30) $ — $ 1,777 Obligations of states and political subdivisions 262,772 5,098 (1,672) — 266,198 Residential mortgage-backed securities (1) 300,387 1,477 (4,841) — 297,023 Commercial mortgage-backed securities 60,897 337 (898) — 60,336 Other asset-backed securities 61,310 95 (329) — 61,076 Corporate and other securities 488,240 1,775 (14,563) — 475,452 Subtotal, fixed maturity securities 1,175,413 8,782 (22,333) — 1,161,862 Equity securities (2) 142,948 15,419 (10,356) — 148,011 Other invested assets (5) 23,481 — — — 23,481 Totals $ 1,341,842 $ 24,201 $ (32,689) $ — $ 1,333,354 As of December 31, 2017 Gross Unrealized Losses (3) Cost or Gross Non-OTTI OTTI Estimated Amortized Unrealized Unrealized Unrealized Fair Cost Gains Losses Losses (4) Value U.S. Treasury securities $ 1,809 $ — $ (18) $ — $ 1,791 Obligations of states and political subdivisions 391,806 12,244 (966) — 403,084 Residential mortgage-backed securities (1) 223,257 2,352 (2,843) — 222,766 Commercial mortgage-backed securities 39,268 415 (314) — 39,369 Other asset-backed securities 72,665 173 (225) — 72,613 Corporate and other securities 427,892 6,962 (2,451) — 432,403 Subtotal, fixed maturity securities 1,156,697 22,146 (6,817) — 1,172,026 Equity securities (2) 90,481 21,995 (609) — 111,867 Other invested assets (5) 23,162 — — — 23,162 Totals $ 1,270,340 $ 44,141 $ (7,426) $ — $ 1,307,055 (1) Residential mortgage‑backed securities consists primarily of obligations of U.S. Government agencies including collateralized mortgage obligations issued, guaranteed and/or insured by the following issuers: Government National Mortgage Association (GNMA), Federal Home Loan Mortgage Corporation (FHLMC), Federal National Mortgage Association (FNMA) and the Federal Home Loan Bank (FHLB). (2) Equity securities include common stock, preferred stock, mutual funds and interests in mutual funds held to fund the Company’s executive deferred compensation plan. (3) The Company’s investment portfolio included 958 and 367 securities in an unrealized loss position at December 31, 2018 and December 31, 2017, respectively. (4) Amounts in this column represent other‑than‑temporary impairment (“OTTI”) recognized in accumulated other comprehensive (loss) income. (5) Other invested assets are accounted for under the equity method which approximates fair value. The amortized cost and the estimated fair value of fixed maturity securities, by maturity, are shown below for the period indicated. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. As of December 31, 2018 Amortized Estimated Cost Fair Value Due in one year or less $ 32,505 $ 32,467 Due after one year through five years 281,428 280,060 Due after five years through ten years 295,645 287,379 Due after ten years through twenty years 139,596 140,107 Due after twenty years 3,645 3,414 Asset-backed securities 422,594 418,435 Totals $ 1,175,413 $ 1,161,862 The gross realized gains and losses on sales of investments were as follows for the periods indicated. Years Ended December 31, 2018 2017 2016 Gross realized gains Fixed maturity securities $ 1,022 $ 1,468 $ 803 Equity securities 5,129 5,244 6,946 Gross realized losses Fixed maturity securities (1,878) (504) (1,242) Equity securities (1,047) (172) (948) Net realized gains on investments $ 3,226 $ 6,036 $ 5,559 In the normal course of business, the Company enters into transactions involving various types of financial instruments, including investments in fixed maturities and equity securities. Investment transactions have credit exposure to the extent that a counter party may default on an obligation to the Company. Credit risk is a consequence of carrying, trading and investing in securities. To manage credit risk, the Company focuses on higher quality fixed income securities, reviews the credit strength of all companies in which it invests, limits its exposure in any one investment and monitors the portfolio quality, taking into account credit ratings assigned by recognized statistical rating organizations. The following tables as of December 31, 2018 and 2017 present the gross unrealized losses included in the Company’s investment portfolio and the fair value of those securities aggregated by investment category. The tables also present the length of time that they have been in a continuous unrealized loss position. As of December 31, 2018 Less than 12 Months 12 Months or More Total Estimated Unrealized Estimated Unrealized Estimated Unrealized Fair Value Losses Fair Value Losses Fair Value Losses U.S. Treasury securities $ — $ — $ 1,777 $ 30 $ 1,777 $ 30 Obligations of states and political subdivisions 80,856 707 16,049 965 96,905 1,672 Residential mortgage-backed securities 64,101 694 138,572 4,147 202,673 4,841 Commercial mortgage-backed securities 22,652 270 13,117 628 35,769 898 Other asset-backed securities 33,866 112 23,532 217 57,398 329 Corporate and other securities 288,786 10,149 87,546 4,414 376,332 14,563 Subtotal, fixed maturity securities 490,261 11,932 280,593 10,401 770,854 22,333 Equity securities 71,439 9,955 2,072 401 73,511 10,356 Total temporarily impaired securities $ 561,700 $ 21,887 $ 282,665 $ 10,802 $ 844,365 $ 32,689 As of December 31, 2017 Less than 12 Months 12 Months or More Total Estimated Unrealized Estimated Unrealized Estimated Unrealized Fair Value Losses Fair Value Losses Fair Value Losses U.S. Treasury securities $ 1,791 $ 18 $ — $ — $ 1,791 $ 18 Obligations of states and political subdivisions 19,603 152 30,018 814 49,621 966 Residential mortgage-backed securities 126,713 1,724 39,638 1,119 166,351 2,843 Commercial mortgage-backed securities 5,457 30 8,027 284 13,484 314 Other asset-backed securities 25,769 167 18,270 58 44,039 225 Corporate and other securities 94,863 1,189 36,440 1,262 131,303 2,451 Subtotal, fixed maturity securities 274,196 3,280 132,393 3,537 406,589 6,817 Equity securities 4,730 361 2,420 248 7,150 609 Total temporarily impaired securities $ 278,926 $ 3,641 $ 134,813 $ 3,785 $ 413,739 $ 7,426 Other‑Than‑Temporary Impairments ASC 320, Investments—Debt and Equity Securities requires entities to separate an OTTI of a debt security into two components when there are credit related losses associated with the impaired debt security for which the Company asserts that it does not have the intent to sell the security, and it is more likely than not that it will not be required to sell the security before recovery of its cost basis. Under ASC 320, the amount of the OTTI related to a credit loss is recognized in earnings, and the amount of the OTTI related to other factors is recorded as a component of other comprehensive income. In instances where no credit loss exists but it is more likely than not that the Company will have to sell the debt security prior to the anticipated recovery, the decline in market value below amortized cost is recognized as an OTTI in earnings. In periods after the recognition of an OTTI on debt securities, the Company accounts for such securities as if they had been purchased on the measurement date of the OTTI at an amortized cost basis equal to the previous amortized cost basis less the OTTI recognized in earnings. For debt securities for which OTTI was recognized in earnings, the difference between the new amortized cost basis and the cash flows expected to be collected will be accreted or amortized into net investment income. The Company holds no subprime mortgage debt securities. All of the Company’s holdings in mortgage‑backed securities are either U.S. Government or Agency guaranteed or are rated investment grade by either Moody’s or Standard & Poor’s. The unrealized losses in the Company’s fixed income and equity portfolio as of December 31, 2018 were reviewed for potential other-than-temporary asset impairments. The Company held three debt securities at December 31, 2018 with a material (20% or greater) unrealized loss for four or more consecutive quarters that additionally had certain qualitative factors that led to an impairment charge. As a result of our analysis, during the year ended December 31, 2018, the Company recognized $228 of OTTI losses which consisted entirely of credit losses related to fixed maturity securities. During the year ended December 31, 2017, the Company recognized $256 of OTTI losses which consisted entirely of credit losses related to fixed maturity securities. Specific qualitative analysis was also performed for any additional securities appearing on the Company’s “Watch List,” if any. Qualitative analysis considered such factors as the financial condition and the near term prospects of the issuer, whether the debtor is current on its contractually obligated interest and principal payments, changes to the rating of the security by a rating agency and the historical volatility of the fair value of the security. The qualitative analysis performed by the Company concluded that outside of the securities that were recognized through OTTI, the unrealized losses recorded on the investment portfolio at December 31, 2018 resulted from fluctuations in market interest rates and other temporary market conditions as opposed to fundamental changes in the credit quality of the issuers of such securities. Therefore, decreases in fair values of the Company’s securities are viewed as being temporary. The following table summarizes the credit loss recognized in earnings related to fixed maturity securities: Years Ended December 31, 2018 2017 2016 Credit losses on fixed maturity securities, beginning of period $ 892 $ 1,094 $ 796 Add: credit losses on OTTI not previously recognized 228 256 798 Less: credit losses on securities sold (276) (458) (500) Less: credit losses on securities impaired due to intent to sell — — — Add: credit losses on previously impaired securities — — — Less: increases in cash flows expected on previously impaired securities — — — Credit losses on fixed maturity securities, end of period $ 844 $ 892 $ 1,094 At December 31, 2018 and December 31, 2017, there were no amounts included in accumulated other comprehensive (loss) income related to securities which were considered by the Company to be other‑than‑temporarily impaired. Based upon the qualitative analysis performed, the Company’s decision to hold these securities, the Company’s current level of liquidity and its positive operating cash flows, management believes it is more likely than not that it will not be required to sell any of its securities before the anticipated recovery in the fair value to its amortized cost basis. Net Investment Income The components of net investment income were as follows for the periods indicated. Years Ended December 31, 2018 2017 2016 Interest on fixed maturity securities $ 40,988 $ 37,246 $ 36,961 Dividends on equity securities 4,500 3,093 3,401 Equity in earnings of other invested assets 1,182 1,016 949 Interest on other assets 62 89 64 Interest on cash and cash equivalents — — 43 Total Investment Income 46,732 41,444 41,418 Investment expenses 2,944 2,686 3,005 Net investment income $ 43,788 $ 38,758 $ 38,413

Equipment and Leasehold Improve

Equipment and Leasehold Improvements	12 Months Ended
	Dec. 31, 2018
Equipment and Leasehold Improvements
Equipment and Leasehold Improvements	4. The carrying value of equipment and leasehold improvements by classification was as follows for the periods indicated. As of December 31, 2018 2017 Software $ 36,161 $ 34,252 Computer equipment 9,195 8,820 Leasehold improvements 8,264 2,524 Other equipment 3,116 2,770 Furniture and fixtures 4,129 1,338 Total cost 60,865 49,704 Less accumulated depreciation and amortization 45,281 39,837 Equipment and leasehold improvements, net $ 15,584 $ 9,867

Employee Benefit Plan

Employee Benefit Plan	12 Months Ended
	Dec. 31, 2018
Employee Benefit Plan
Employee Benefit Plan	5

Share-Based Compensation

Share-Based Compensation	12 Months Ended
	Dec. 31, 2018
Share-Based Compensation
Share-Based Compensation	6. 2018 Long Term Incentive Plan On April 2, 2018, the Company’s Board of Directors adopted the Safety Insurance Group, Inc. 2018 Long-Term Incentive Plan (“the 2018 Plan”), which was subsequently approved by our shareholders at the 2018 Annual Meeting of Shareholders. The 2018 Plan enables the grant of stock awards, performance shares, cash-based performance units, other stock-based awards, stock options, stock appreciation rights, and stock unit awards, each of which may be granted separately or in tandem with other awards. Eligibility to participate includes officers, directors, employees and other individuals who provide bona fide services to the Company. The 2018 Plan supersedes the Company’s 2002 Management Omnibus Incentive Plan (“the 2002 Incentive Plan”). The 2018 Plan establishes an initial pool of 350,000 shares of common stock available for issuance to our employees and other eligible participants. The Board of Directors and the Compensation Committee intend to issue awards under the 2018 Plan in the future. The maximum number of shares of common stock between both the 2018 Plan and 2002 Incentive Plan with respect to which awards may be granted is 2,850,000. No further grants will be allowed under the 2002 Incentive Plan and there have been no grants issued under the 2018 Plan during the current year. At December 31, 2018, there were 350,000 shares available for future grant. Stock Options The following table summarizes stock option activity under the Incentive Plan. Years Ended December 31, 2018 2017 2016 Shares Weighted Shares Weighted Shares Weighted Under Average Under Average Under Average Option Exercise Price Option Exercise Price Option Exercise Price Outstanding at beginning of year $ — $ — $ — $ — $ 6,200 $ 42.85 Exercised — — — — (6,000) 42.85 Forfeited — — — — (200) 42.85 Outstanding at end of period — — — — — — Exercisable at end of period $ — $ — $ — $ — $ — $ — As of December 31, 2016, all stock option awards have expired and all compensation expense related to stock option awards has been recognized. Restricted Stock Service-based restricted stock awarded in the form of unvested shares is recorded at the market value of the Company’s common stock on the grant date and amortized ratably as compensation expense over the requisite service period. Service-based restricted stock awards generally vest over a three-year period and vest 30% on the first and second anniversaries of the grant date and 40% on the third anniversary of the grant date, and independent directors’ stock awards which vest immediately. Our independent directors are subject to stock ownership guidelines, which require them to have a value equal to four times their annual cash retainer. In addition to service-based awards, the Company grants performance-based restricted shares to certain employees. These performance shares cliff vest after a three-year performance period provided certain performance measures are attained. A portion of these awards, which contain a market condition, vest according to the level of total shareholder return achieved by the Company compared to its property-casualty insurance peers over a three-year period. The remainders, which contain a performance condition, vest according to the level of Company’s combined ratio results compared to a target based on its property-casualty insurance peers. Actual payouts can range from 0% to 200% of target shares awarded depending upon the level of achievement of the respective market and performance conditions during a three fiscal-year performance period. Compensation expense for share awards with a performance condition is based on the probable number of awards expected to vest using the performance level most likely to be achieved at the end of the performance period. Performance-based awards with market conditions are accounted for and measured differently from awards that have a performance or service condition. The effect of a market condition is reflected in the award’s fair value on the grant date. That fair value is recognized as compensation cost over the requisite service period regardless of whether the market-based performance objective has been satisfied. All of the Company’s restricted stock awards are issued as incentive compensation and are equity classified. The following table summarizes restricted stock activity under the previously existing Incentive Plan assuming a target payout for the performance-based shares. Years Ended December 31, 2018 2017 2016 Shares Weighted Shares Weighted Shares Weighted Under Average Under Average Under Average Restriction Fair Value Restriction Fair Value Restriction Fair Value Outstanding at beginning of year 93,086 $ 63.13 95,493 $ 55.86 112,024 $ 54.44 Granted 39,451 75.05 40,226 73.42 46,556 56.09 Vested and unrestricted (43,276) 62.46 (42,453) 56.56 (56,279) 53.43 Forfeited (126) 70.63 (180) 63.87 (6,808) 50.02 Outstanding at end of period 89,135 $ 68.70 93,086 $ 63.13 95,493 $ 55.86 Years Ended December 31, 2018 2017 2016 Performance-based Weighted Performance-based Weighted Performance-based Weighted Shares Under Average Shares Under Average Shares Under Average Restriction Fair Value Restriction Fair Value Restriction Fair Value Outstanding at beginning of year 105,660 $ 62.75 94,610 $ 57.60 99,101 $ 55.55 Granted 31,832 75.14 29,829 74.96 44,626 61.07 Vested and unrestricted (27,801) 61.50 (18,259) 53.99 (15,289) 47.42 Forfeited (4,521) 62.41 (520) 53.99 (33,828) 52.07 Outstanding at end of period 105,170 $ 66.79 105,660 $ 62.75 94,610 $ 57.60 As of December 31, 2018, there was $6,376 of unrecognized compensation expense related to non‑vested restricted stock awards that is expected to be recognized over a weighted average period of 1.5 years. The total fair value of the shares that were vested and unrestricted during the years ended December 31, 2018, 2017, and 2016 was $4,413, $3,387 and $3,732, respectively. For the years ended December 31, 2018, 2017, and 2016, the Company recorded compensation expense related to awards under the Incentive Plan of $5,197, $3,358, and $2,797, net of income tax benefit of $1,382, $1,808, and $1,506, respectively.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2018
Commitments and Contingencies
Commitments and Contingencies	7. Commitments and Contingencies Lease Commitments The Company has various non‑cancelable long‑term operating leases. The approximate minimum annual rental payments due under these lease agreements as of December 31, 2018 are presented in the following table. 2019 $ 4,044 2020 4,037 2021 3,988 2022 4,005 2023 3,892 2024 and after 20,064 Total minimum lease payments $ 40,030 Certain lease agreements contain renewal options and, in addition to the minimum annual rentals, generally provide for payment of a share of the real estate taxes and operating expenses in excess of a base amount. Rental expense was $3,531, $4,557 and $4,242 for the years ended December 31, 2018, 2017, and 2016, respectively. All leases expire prior to 2029. The Company expects that in the normal course of business, leases that expire will be renewed. A ninth amendment to a lease agreement for the lease of office space was executed on November 7, 2017. Under the provisions of this amendment, the lease term was extended an additional eleven years commencing on January 1, 2018, with an option to renew for two additional five‑year terms. As part of the Company’s investment activity, we have committed $80,000 to investments in limited partnerships. The Company has contributed $34,794 to these commitments as of December 31, 2018. As of December 31, 2018, the remaining committed capital that could be called is $46,898, which includes potential recallable capital distributions. Contingencies Various claims, generally incidental to the conduct of normal business, are pending or alleged against the Company from time to time. In the opinion of management, based in part on the advice of legal counsel, the ultimate resolution of such claims will not have a material adverse effect on the Company’s consolidated financial statements. However, if estimates of the ultimate resolutions of those proceedings are revised, liabilities related to those proceedings could be adjusted in the near term.

Debt

Debt	12 Months Ended
	Dec. 31, 2018
Debt
Debt	8. Debt On August 10, 2018, the Company extended its Revolving Credit Agreement (the “Credit Agreement”) with Citizens Bank, N.A. (formerly known as RBS Citizens, N.A. (“Citizens Bank”)) to a maturity date of August 10, 2023. The Credit Agreement provides a $30,000 revolving credit facility with an accordion feature allowing for future expansion of the committed amount up to $50,000. Loans under the credit facility bear interest at the Company’s option at either (i) the LIBOR rate plus 1.25% per annum or (ii) the higher of Citizens Bank prime rate or 0.5% above the federal funds rate plus 1.25% per annum. Interest only is payable prior to maturity. The Company’s obligations under the credit facility are secured by pledges of its assets and the capital stock of its operating subsidiaries. The credit facility is guaranteed by the Company’s non‑insurance company subsidiaries. The credit facility contains covenants including requirements to maintain minimum risk‑based capital ratios and statutory surplus of Safety Insurance Company as well as limitations or restrictions on indebtedness, liens, and other matters. As of December 31, 2018, the Company was in compliance with all covenants. In addition, the credit facility includes customary events of default, including a cross‑default provision permitting the lenders to accelerate the facility if the Company (i) defaults in any payment obligation under debt having a principal amount in excess of $10,000 or (ii) fails to perform any other covenant permitting acceleration of all such debt. The Company had no amounts outstanding on its credit facility at December 31, 2018 or 2017. The credit facility commitment fee included in interest expense was computed at a rate of 0.25% per annum on the $30,000 commitment at December 31, 2018 and 2017. The Company is a member of the Federal Home Loan Bank of Boston (“FHLB-Boston”). Membership in the FHLB-Boston allows the Company to borrow money at competitive interest rates provided the loan is collateralized by specific U.S Government residential mortgage backed securities. At December 31, 2018, the Company has the ability to borrow approximately $284,369 using eligible invested assets that would be used as collateral. The Company has no amounts outstanding from the FHLB-Boston at December 31, 2018.

Reinsurance

Reinsurance	12 Months Ended
	Dec. 31, 2018
Reinsurance
Reinsurance	9. Reinsurance The Company cedes insurance to CAR and to other reinsurers. The Company has a property catastrophe excess of loss agreement and a casualty excess of loss agreement that qualify as reinsurance treaties and are designed to protect against large or unusual loss and LAE activity. Reinsurance contracts do not relieve the Company from its obligations to policyholders. Failure of reinsurers to honor their obligations could result in losses to the Company. The Company evaluates the financial condition of its reinsurers and monitors economic characteristics of the reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. On December 15, 2015, the Company filed for arbitration with a reinsurer in regards to the reinsurance recoverable resulting from the 2015 winter storm losses that are admissible under our contract. The total amount of recoverable in dispute, which was based on our total incurred loss, was $20,918 as of December 31, 2017. On January 8, 2018 the Company received a final order from the panel of arbitrators in which the reinsurer would pay the Company $9,200 for settlement of all paid and outstanding losses. This amount has been collected. The remaining unrecovered amount of $11,718 was expensed in 2017. The Company is subject to concentration of credit risk with respect to reinsurance ceded. At December 31, 2018, reinsurance receivables on paid and unpaid loss and LAE with a carrying value of $113,544 and ceded unearned premiums of $32,447 were associated with CAR. At December 31, 2017, reinsurance receivables on paid and unpaid loss and LAE with a carrying value of $86,291 and ceded unearned premiums of $30,706 were associated with CAR. The Company assumes a proportionate share of the obligations from CAR. The Company makes an estimate of its share of assumed activity from the most recent quarter reported by CAR and records adjustments to the reported activity to reflect its anticipated final assumed obligations. The Company’s participation in CAR resulted in assumed net losses of $5,362, $5,444 and $2,341 for the years ended December 31, 2018, 2017 and 2016, respectively. CAR has been, with few exceptions, required by law to issue a policy to any applicant who seeks it. As a servicing carrier of CAR, this requirement has applied to the Company. The effect of assumed and ceded premiums on net written and earned premiums and losses and LAE incurred is as follows. Years Ended December 31, 2018 2017 2016 Written Premiums Direct $ 843,675 $ 827,316 $ 811,559 Assumed 32,403 34,214 30,424 Ceded (89,166) (80,476) (75,513) Net written premiums $ 786,912 $ 781,054 $ 766,470 Earned Premiums Direct $ 836,759 $ 818,804 $ 796,366 Assumed 32,196 32,502 29,544 Ceded (87,368) (76,886) (70,150) Net earned premiums $ 781,587 $ 774,420 $ 755,760 Loss and LAE Direct $ 538,569 $ 517,146 $ 515,506 Assumed 28,815 28,003 23,343 Ceded (81,871) (41,262) (45,416) Net loss and LAE $ 485,513 $ 503,887 $ 493,433

Loss and Loss Adjustment Expens

Loss and Loss Adjustment Expense Reserves	12 Months Ended
	Dec. 31, 2018
Loss and Loss Adjustment Expense Reserves
Loss and Loss Adjustment Expense Reserves	10. The following table sets forth a reconciliation of beginning and ending reserves for losses and loss adjustment expenses (“LAE”), as shown in the Company’s consolidated financial statements for the periods indicated. Years Ended December 31, 2018 2017 2016 Reserves for losses and LAE at beginning of year $ 574,054 $ 560,321 $ 553,977 Less receivable from reinsurers related to unpaid losses and LAE (83,085) (83,724) (68,261) Net reserves for losses and LAE at beginning of year 490,969 476,597 485,716 Incurred losses and LAE, related to: Current year 542,001 545,671 538,881 Prior years (56,488) (41,784) (45,448) Total incurred losses and LAE 485,513 503,887 493,433 Paid losses and LAE related to: Current year 340,927 325,049 328,046 Prior years 159,234 164,466 174,506 Total paid losses and LAE 500,161 489,515 502,552 Net reserves for losses and LAE at end of period 476,321 490,969 476,597 Plus receivable from reinsurers related to unpaid losses and LAE 108,398 83,085 83,724 Reserves for losses and LAE at end of period $ 584,719 $ 574,054 $ 560,321 At the end of each period, the reserves were re‑estimated for all prior accident years. The Company’s prior year reserves decreased by $56,488, $41,784, and $45,448 for the years ended 2018, 2017, and 2016, respectively, and resulted from re‑estimations of prior years’ ultimate loss and LAE liabilities. The decrease in prior year reserves during 2018 was primarily composed of reductions of $36,266 in the Company’s retained automobile and $18,947 in the Company’s retained other than auto and homeowners reserves. The decrease in prior year reserves during 2017 was primarily composed of reductions of $29,855 in the Company’s retained automobile and $10,201 in the Company’s retained other than auto and homeowners reserves. The decrease in prior year reserves during 2016 was primarily composed of reductions of $25,019 in the Company’s retained automobile and $11,648 in the Company’s retained homeowners reserves. The Company’s private passenger automobile line of business prior year reserves decreased during the years ended December 31, 2018, 2017 and 2016 primarily due to improved retained private passenger results. The improved retained private passenger results were primarily due to fewer incurred but not yet reported claims than previously estimated and better than previously estimated severity on the Company’s established bodily injury and property damage case reserves. The following is information about incurred and paid claims development as of December 31, 2018 net of reinsurance, as well as cumulative claim frequency and the total of incurred-but-not-reported liabilities plus expected development on reported claims included within the net incurred claims amounts for our three largest lines of business. The cumulative number of reported claims include claims closed with payment, claims closed without payment and all open claims. It does not include anticipated IBNR claims. For the Private Passenger Automobile and Commercial Automobile lines of business, claim count is defined on a claimant basis where several claim counts may arise from a single auto accident. For Homeowners and all other lines of business, claim count is defined on an accident basis. The information about incurred claims and allocated claim adjustment expense, net or reserves and paid ultimate claims development for the years ended December 31, 2009 to 2017 is presented as unaudited supplementary information. Private Passenger Automobile Liability Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance As of December 31, 2018 For the Years Ended December 31, Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims Cumulative Number of Reported Claims Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited) $ 174,243 $ 172,667 $ 168,900 $ 167,078 $ 163,593 $ 160,844 $ 159,674 $ 159,021 $ 158,433 $ 157,996 $ - - - Total $ 1,739,604 Private Passenger Automobile Liability Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited) $ 73,808 $ 121,962 $ 139,517 $ 148,807 $ 153,756 $ 156,808 $ 157,440 $ 157,697 $ 157,710 $ 157,718 Total $ 1,524,602 All outstanding liabilities before 2009, net of reinsurance Liabilities for claims and claim adjustment expenses, net of reinsurance $ 215,140 Private Passenger Automobile Physical Damage Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance As of December 31, 2018 For the Years Ended December 31, Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims Cumulative Number of Reported Claims Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited) $ 96,219 $ 93,993 $ 93,156 $ 93,058 $ 93,060 $ 93,021 $ 93,036 $ 93,014 $ 93,002 $ 92,992 $ - - - - - Total $ 1,152,485 Private Passenger Automobile Physical Damage Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited) $ 96,496 $ 94,258 $ 93,187 $ 93,116 $ 93,049 $ 93,024 $ 93,026 $ 93,012 $ 92,998 $ 92,991 Total $ 1,161,439 All outstanding liabilities before 2009, net of reinsurance - Liabilities for claims and claim adjustment expenses, net of reinsurance $ (8,954) Commercial Automobile Liability Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance As of December 31, 2018 For the Years Ended December 31, Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims Cumulative Number of Reported Claims Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited) $ 23,292 $ 22,757 $ 22,416 $ 21,968 $ 21,938 $ 21,720 $ 21,564 $ 21,461 $ 21,193 $ 21,048 $ 10 Total $ 305,492 Commercial Automobile Liability Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited) $ 6,811 $ 12,705 $ 15,196 $ 17,237 $ 19,004 $ 20,589 $ 20,988 $ 21,026 $ 21,026 $ 21,026 Total $ 219,850 All outstanding liabilities before 2009, net of reinsurance Liabilities for claims and claim adjustment expenses, net of reinsurance $ 85,588 Commercial Automobile Physical Damage Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance As of December 31, 2018 For the Years Ended December 31, Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims Cumulative Number of Reported Claims Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited) $ 10,786 $ 9,987 $ 9,904 $ 9,981 $ 9,913 $ 9,935 $ 9,981 $ 9,981 $ 10,002 $ 10,020 $ (12) Total $ 146,956 Commercial Automobile Physical Damage Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited) $ 9,707 $ 10,253 $ 10,079 $ 10,004 $ 10,034 $ 10,035 $ 10,034 $ 10,034 $ 10,032 $ 10,033 Total $ 144,267 All outstanding liabilities before 2009, net of reinsurance - Liabilities for claims and claim adjustment expenses, net of reinsurance $ 2,689 Homeowners Liability Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance As of December 31, 2018 For the Years Ended December 31, Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims Cumulative Number of Reported Claims Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited) $ 4,637 $ 4,637 $ 4,637 $ 4,012 $ 3,456 $ 3,072 $ 3,015 $ 2,966 $ 2,966 $ 2,867 $ - - - - Total $ 67,229 Homeowners Liability Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited) $ 535 $ 1,411 $ 2,092 $ 2,607 $ 2,813 $ 2,867 $ 2,867 $ 2,867 $ 2,867 $ 2,867 Total $ 35,254 All outstanding liabilities before 2009, net of reinsurance Liabilities for claims and claim adjustment expenses, net of reinsurance $ 32,076 Homeowners Property Damage Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance As of December 31, 2018 For the Years Ended December 31, Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims Cumulative Number of Reported Claims Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited) $ 27,483 $ 27,024 $ 27,233 $ 26,913 $ 26,244 $ 25,977 $ 25,967 $ 25,922 $ 25,922 $ 25,877 $ 123 Total $ 691,356 Homeowners Property Damage Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited) $ 16,147 $ 22,305 $ 25,812 $ 25,718 $ 25,705 $ 25,741 $ 25,754 $ 25,753 $ 25,753 $ 25,752 Total $ 645,480 All outstanding liabilities before 2009, net of reinsurance Liabilities for claims and claim adjustment expenses, net of reinsurance $ 46,254 The following is unaudited supplementary information about average historical claims duration as of December 31, 2018. Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Years Private Passenger Automobile Liability Private Passenger Automobile Physical Damage -4.9% -2.2% -0.4% -0.1% Commercial Automobile Liability Commercial Automobile Physical Damage -1.9% -0.4% Homeowners Liability Homeowners Property Damage -0.1% -0.5% The reconciliation of the net incurred and paid claims development tables to the liability for claims and claim adjustment expenses in the consolidated balance sheets is as follows. Reconciliation of the Disclosure of Incurred and Paid Claims Development to the Liability for Unpaid claims and Claim Adjustment Expenses December 31, 2018 Net outstanding liabilities Private Passenger Automobile Liability $ 215,140 Private Passenger Automobile Physical Damage (8,954) Commercial Automobile Liability 85,588 Commercial Automobile Physical Damage 2,689 Homeowners Liability 32,076 Homeowners Property Damage 46,254 Other Short-Duration Insurance Lines 74,356 Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance $ 447,149 Reinsurance recoverable on unpaid claims Private Passenger Automobile Liability $ 318 Private Passenger Automobile Physical Damage - Commercial Automobile Liability 97,727 Commercial Automobile Physical Damage 2,564 Homeowners Liability - Homeowners Property Damage 653 Other Short-Duration Insurance Lines 7,136 Total reinsurance recoverable on unpaid claims $ 108,398 Unallocated claims adjustment expenses 29,172 Total gross liability for unpaid claims and claim adjustment expenses $ 584,719 Due to the nature of the risks that the Company underwrites and has historically underwritten, management does not believe that it has an exposure to asbestos or environmental pollution liabilities.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2018
Income Taxes
Income Taxes	11. Income Taxes A summary of the income tax expense in the Consolidated Statements of Operations is shown below. Years Ended December 31, 2018 2017 2016 Current Income Taxes: Federal $ 26,548 $ 22,198 $ 26,927 State 108 30 89 26,656 22,228 27,016 Deferred Income Taxes: Federal (5,600) 2,085 1,681 State — — — (5,600) 2,085 1,681 Total income tax expense $ 21,056 $ 24,313 $ 28,697 The income tax expense attributable to the consolidated results of operations is different from the amounts determined by multiplying income before federal income taxes by the statutory federal income tax rate. The sources of the difference and the tax effects of each were as follows for the periods indicated. Years Ended December 31, 2018 2017 2016 Federal income tax expense at statutory rate $ 21,893 $ 30,345 $ 32,649 Tax exempt investment income, net (1,862) (4,123) (4,194) State taxes, net 85 19 58 Nondeductible expenses 494 237 202 Remeasurement of deferred tax liability upon enactment of the TCJA — (1,540) — Tax windfall related to share-based stock compensation (79) (333) — Other, net 525 (292) (18) Total income tax expense $ 21,056 $ 24,313 $ 28,697 The deferred income tax asset (liability) represents the tax effects of temporary differences attributable to the Company’s consolidated federal tax return group. Its components were as shown in the following table for the periods indicated. Years Ended December 31, 2018 2017 Deferred tax assets: Discounting of loss reserves $ 5,688 $ 3,361 Discounting of unearned premium reserve 17,475 17,239 Investments 327 — Bad debt allowance 274 289 Employee benefits 4,159 3,499 Rent incentive 1,181 64 Depreciation — 75 Total deferred tax assets before valuation allowance 29,104 24,527 Valuation allowance for deferred tax assets — — Total deferred tax assets 29,104 24,527 Deferred tax liabilities: Deferred acquisition costs (15,405) (15,163) Investments — (2,421) Net unrealized gains on investments — (7,710) Loss reserve transition adjustment (2,229) — Software development costs (1,268) (1,648) Premium acquisition expenses (512) (502) Depreciation (941) — Total deferred tax liabilities (20,355) (27,444) Net deferred tax asset (liability) $ 8,749 $ (2,917) The Company believes that the positions taken on its income tax returns for open tax years will be sustained upon examination by the Internal Revenue Service (“IRS”). Therefore, the Company has not recorded any liability for uncertain tax positions under ASC 740, Income Taxes . During the years ended December 31, 2018 and December 31, 2017 there were no material changes to the amount of the Company’s unrecognized tax benefits or to any assumptions regarding the amount of its ASC 740 liability. As of December 31, 2018 and December 31, 2017, the Company had no unrecognized tax benefits, and none which if recognized would affect the effective tax rate. The Company does not currently anticipate significant changes in the amount of unrecognized income tax benefits during the next twelve months. The Company records interest and penalties associated with audits as a component of income before income taxes. Penalties are recorded in underwriting, operating and other expenses, and interest expense is recorded in interest expenses in the Consolidated Statements of Operations. The Company had no interest and penalties related to income taxes accrued as of December 31, 2018 and 2017. On December 22, 2017, the TCJA was enacted, which significantly amended the Internal Revenue Code of 1986. The TCJA, among other things, reduced the corporate tax rate from a statutory rate of 35% to 21%, imposed additional limitations on net operating losses and executive compensation, allowed for the full expensing of certain capital expenditures and enacted other changes impacting the insurance industry. Tax related changes are recorded through the Statement of Operations for the year ended December 31, 2017. The December 31, 2018 net deferred tax asset and the December 31, 2017 net deferred tax liability have been measured at the 21% tax rate. The TCJA also modified the provisions applicable to the determination of the tax basis of unpaid loss reserves. These modifications impact the payment pattern and applicable interest rate. The Company has applied Revenue Procedure 2019-06 for the year ended December 31, 2018. Because this information had not been released until December 19, 2018, we have applied the law existing prior to the enactment of the TCJA for the year ended December 31, 2017. These provisions had no effect on the net deferred tax liability as of December 31, 2017 or the total tax expense for the year ended December 31, 2017. Subsequent to the enactment of the TCJA, the SEC issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (which we refer to as SAB 118). SAB 118 provided a measurement period of one year to finalize provisional amounts. The measurement period provided in SAB 118 concluded on December 22, 2018 and accordingly, the Company has finalized its accounting for the impact of the TCJA as of December 31, 2018.

Share Repurchase Program

Share Repurchase Program	12 Months Ended
	Dec. 31, 2018
Share Repurchase Program
Share Repurchase Program	12. Share Repurchase Program On August 3, 2007, the Board of Directors approved a share repurchase program of up to $30,000 of the Company’s outstanding common shares. As of December 31, 2018, the Board of Directors had cumulatively authorized increases to the existing share repurchase program of up to $150,000 of its outstanding common shares. Under the program, the Company may repurchase shares of its common stock for cash in public or private transactions, in the open market or otherwise. The timing of such repurchases and actual number of shares repurchased will depend on a variety of factors including price, market conditions and applicable regulatory and corporate requirements. The program does not require the Company to repurchase any specific number of shares and it may be modified, suspended or terminated at any time without prior notice. No share purchases were made by the Company under the program during the years ended December 31, 2018 and December 31, 2017. As of December 31, 2018, the Company had purchased 2,279,570 shares on the open market at a cost of $83,835.

Statutory Net Income and Surplu

Statutory Net Income and Surplus	12 Months Ended
	Dec. 31, 2018
Statutory Net Income and Surplus
Statutory Net Income and Surplus	13. Statutory Net Income and Surplus Statutory Accounting Practices The Company’s insurance company subsidiaries, domiciled in the Commonwealth of Massachusetts, prepare statutory financial statements in accordance with the accounting practices prescribed or permitted by the Division. Prescribed statutory accounting practices are those practices that are incorporated directly or by reference in state laws, regulations, and general administrative rules applicable to all insurance enterprises domiciled in a particular state. Permitted statutory accounting practices include practices not prescribed by the Division, but allowed by the Division. Statutory net income was $86,734, $57,982, and $57,202 for the years ended December 31, 2018, 2017, and 2016, respectively. Statutory capital and surplus of the Company’s insurance subsidiaries was $646,820, and $617,577 at December 31, 2018 and 2017, respectively. Dividends The Insurance Subsidiaries are subject to various regulatory restrictions that limit the maximum amount of dividends available to be paid to their parent without prior approval of the Commonwealth of Massachusetts Commissioner of Insurance (the “Commissioner”). Massachusetts statute limits the dividends an insurer may pay in any twelve month period, without the prior permission of the Commissioner, to the greater of (i) 10% of the insurer’s surplus as of the preceding December 31 or (ii) the insurer’s net income for the twelve‑ month period ending the preceding December 31, in each case determined in accordance with statutory accounting practices. Our insurance company subsidiaries may not declare an “extraordinary dividend” (defined as any dividend or distribution that, together with other distributions made within the preceding twelve months, exceeds the limits established by Massachusetts statute) until thirty days after the Commissioner has received notice of the intended dividend and has not objected. As historically administered by the Commissioner, this provision requires the Commissioner’s prior approval of an extraordinary dividend. Under Massachusetts law, an insurer may pay cash dividends only from its unassigned funds, also known as earned surplus, and the insurer’s remaining surplus must be both reasonable in relation to its outstanding liabilities and adequate to its financial needs. At December 31, 2018, the statutory capital and surplus of Safety Insurance was $646,820 and its net income for 2018 was $86,734. As a result, a maximum of $86,734 is available in 2018 for such dividends without prior approval of the Commissioner. During the year ended December 31, 2018, Safety Insurance recorded dividends of $45,271. As result of this Massachusetts statute, the Insurance Subsidiaries had restricted net assets in the amount of $560,086 at December 31, 2018. Risk‑Based Capital Requirements The NAIC has adopted a formula and model law to implement risk‑based capital requirements for most property and casualty insurance companies, which are designed to determine minimum capital requirements and to raise the level of protection that statutory surplus provides for policyholder obligations. Under Massachusetts law, insurers having less total adjusted capital than that required by the risk‑based capital calculation will be subject to varying degrees of regulatory action, depending on the level of capital inadequacy. The risk‑based capital law provides for four levels of regulatory action. The extent of regulatory intervention and action increases as the level of total adjusted capital to risk‑based capital falls. As of December 31, 2018, the Insurance Subsidiaries had total adjusted capital of $646,820, which is in excess of amounts requiring company or regulatory action at any prescribed risk‑based capital action level. Minimum statutory capital and surplus, or company action level risk‑based capital, was $180,582 at December 31, 2018.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	12 Months Ended
	Dec. 31, 2018
Fair Value of Financial Instruments
Fair Value of Financial Instruments	14. ASC 820, Fair Value Measurements and Disclosure provides a revised definition of fair value, establishes a framework for measuring fair value and expands financial statement disclosure requirements for fair value information. Under ASC 820, 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 (an exit price). ASC 820 establishes a fair value hierarchy that distinguishes between inputs based on market data from independent sources (“observable inputs”) and a reporting entity’s internal assumptions based upon the best information available when external market data is limited or unavailable (“unobservable inputs”). The fair value hierarchy in ASC 820 prioritizes fair value measurements into three levels based on the nature of the inputs as follows: Level 1 — Valuations based on quoted prices in active markets for identical assets and liabilities; Level 2 — Valuations based on observable inputs that do not meet the criteria for Level 1, including quoted prices in inactive markets and quoted prices in active markets for similar, but not identical instruments; and Level 3 — Valuations based on unobservable inputs. Fair values for the Company’s fixed maturity securities are based on prices provided by its custodian bank and its investment managers. Both the Company’s custodian bank and investment managers use a variety of independent, nationally recognized pricing services to determine market valuations. If the pricing service cannot provide fair value determinations, the Company obtains non-binding price quotes from broker-dealers. A minimum of two quoted prices is obtained for the majority of the Company’s available-for-sale fixed maturity securities in its investment portfolio. The Company uses a third-party pricing as its primary provider of quoted pries from third-party pricing services and broker-dealers. To provide reasonable assurance of the validity of each price or quote, a secondary third-party pricing service or broker-dealer quote is obtained from the Company’s custodian or investment managers. An examination of the pricing data is then performed for each security. If the variance between the primary and secondary price quotes for a security is within an accepted tolerance level, the quoted price obtained from the Company’s primary source is used in the financial statements for the security. If the variance between the primary and secondary price quotes exceeds an accepted tolerance level, the Company obtains a quote from an alternative source, if possible, and documents and resolves any differences between the pricing sources. In addition, the Company may request that its investment managers and its traders provide input as to which vendor is providing prices that its traders believe are reflective of fair value for the security. Following this process, the Company may decide to value the security in its financial statements using the secondary or alternative source if it believes that pricing is more reflective of the security’s value than the primary pricing provided. The Company analyzes market valuations received to verify reasonableness, to understand the key assumptions used and their sources, and to determine an appropriate ASC 820 fair value hierarchy level based upon trading activity and the observability of market inputs. Based on this evaluation and investment class analysis, each price is classified into Level 1, 2 or 3. Fair values of instruments are based on (i) quoted prices in active markets for identical assets (Level 1), (ii) quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which all significant inputs are observable in active markets (Level 2) or (iii) valuations derived from valuation techniques in which one or more significant inputs are unobservable in the marketplace (Level 3). The Company’s Level 1 securities consist of equity securities whose values are based on quoted prices in active markets for identical assets. The Company’s Level 2 securities are comprised of available-for-sale fixed maturity securities whose fair value was determined using observable market inputs. The Company’s Level 3 security consists of an investment in the Federal Home Loan Bank of Boston related to Safety Insurance Company’s membership stock, which is not redeemable in a short-term time frame. Fair values for securities for which quoted market prices were unavailable were estimated based upon reference to observable inputs such as benchmark interest rates, market comparables, and other relevant inputs. Investments valued using these inputs include U.S. Treasury securities, obligations of states and political subdivisions, corporate and other securities, commercial and residential mortgage-backed securities, and other asset-backed securities. Inputs into the fair value application that are utilized by asset class include but are not limited to: · Obligations of states and political subdivisions : overall credit quality, including assessments of market sectors and the level and variability of sources of payment such as general obligation, revenue or lease; credit support such as insurance, state or local economic and political base, prefunded and escrowed to maturity covenants. · Corporate and other securities : overall credit quality, the establishment of a risk adjusted credit spread over the applicable risk-free yield curve for discounted cash flow valuations; assessments of the level of industry economic sensitivity, company financial policies, indenture restrictive covenants, and/or security and collateral. · Residential mortgage-backed securities : U.S. agency pass-throughs, collateralized mortgage obligations (“CMOs”), non U.S. agency CMOs : estimates of prepayment speeds based upon historical prepayment rate trends, underlying collateral interest rates, original weighted average maturity, vintage year, borrower credit quality characteristics, interest rate and yield curve forecasts, U.S. government support programs, tax policies, and delinquency/default trends. · Commercial mortgage-backed securities : overall credit quality, including assessments of the level and variability of credit support and collateral type such as office, retail, or lodging, predictability of cash flows for the deal structure, prevailing economic market conditions. · Other asset-backed securities : overall credit quality, estimates of prepayment speeds based upon historical trends and characteristics of underlying loans, including assessments of the level and variability of collateral, revenue generating agreements, area licenses agreements, product sourcing agreements and equipment and property leases. · FHLB-Boston : value is equal to the cost of the member stock purchased. In order to ensure the fair value determination is representative of an exit price (consistent with ASC 820), the Company’s procedures for validating quotes or prices obtained from third parties include, but are not limited to, obtaining a minimum of two price quotes for each fixed maturity security if possible, as discussed above, the periodic testing of sales activity to determine if there are any significant differences between the market price used to value the security as of the balance sheet date and the sales price of the security for sales that occurred around the balance sheet date, and the periodic review of reports provided by its investment manager regarding those securities with ratings changes and securities placed on its “Watch List.” In addition, valuation techniques utilized by pricing services and prices obtained from external sources are reviewed by the Company and its external investment manager, whose investment professionals are familiar with the securities being priced and the markets in which they trade, to ensure the fair value determination is representative of an exit price (consistent with ASC 820). All unadjusted estimates of fair value for our fixed maturities priced by the pricing services as described above are included in the amounts disclosed in Level 2. With the exception of the FHLB-Boston security, which is categorized as a Level 3 security, the Company’s entire portfolio was priced based upon quoted market prices or other observable inputs as of December 31, 2018. There were no significant changes to the valuation process during the year ended December 31, 2018. As of December 31, 2018 and December 31, 2017, no quotes or prices obtained were adjusted by management. All broker quotes obtained were non-binding. At December 31, 2018 and December 31, 2017, investments in fixed maturities classified as available-for-sale had a fair value which equaled carrying value of $1,161,862 and $1,172,026, respectively. At December 31, 2018 and December 31, 2017, we held no short-term investments. The carrying values of cash and cash equivalents and investment income accrued approximated fair value. The following tables summarize the Company’s total fair value measurements for investments for the periods indicated. As of December 31, 2018 Total Level 1 Inputs Level 2 Inputs Level 3 Inputs U.S. Treasury securities $ 1,777 $ — $ 1,777 $ — Obligations of states and political subdivisions 266,198 — 266,198 — Residential mortgage-backed securities 297,023 — 297,023 — Commercial mortgage-backed securities 60,336 — 60,336 — Other asset-backed securities 61,076 — 61,076 — Corporate and other securities 475,452 — 475,452 — Equity securities 116,173 115,493 — 680 Total investment securities $ 1,278,035 $ 115,493 $ 1,161,862 $ 680 As of December 31, 2017 Total Level 1 Inputs Level 2 Inputs Level 3 Inputs U.S. Treasury securities $ 1,791 $ — $ 1,791 $ — Obligations of states and political subdivisions 403,084 — 403,084 — Residential mortgage-backed securities 222,766 — 222,766 — Commercial mortgage-backed securities 39,369 — 39,369 — Other asset-backed securities 72,613 — 72,613 — Corporate and other securities 432,403 — 432,403 — Equity securities 87,737 87,057 — 680 Total investment securities $ 1,259,763 $ 87,057 $ 1,172,026 $ 680 There were no transfers between Level 1 and Level 2 during the years ended December 31, 2018 or 2017. The following tables summarize the changes in the Company’s Level 3 fair value securities for the periods indicated. Years Ended December 31, 2018 2017 2016 Balance at beginning of period $ 680 $ 678 $ 547 Net gains and losses included in earnings — — — Net gains included in other comprehensive income — — — Purchases — 2 131 Sales — — — Transfers into Level 3 — — — Transfers out of Level 3 — — — Balance at end of period $ 680 $ 680 $ 678 Transfers in and out of Level 3 are attributable to changes in the ability to observe significant inputs in determining fair value exit pricing. As noted in the table above, no transfers were made in or out of Level 3 during 2018, 2017 and 2016. The Company held one Level 3 security at December 31, 2018. As of December 31, 2018 and December 31, 2017, there were approximately $31,838 and $24,130 in a real estate investment trust (“REIT”). The REIT is excluded from the fair value hierarchy because the fair value is recorded using the net asset value per share practical expedient. The net asset value per share of this REIT is derived from member ownership in the capital venture to which a proportionate share of independently appraised net assets is attributed. The fair value was determined using the trust’s net asset value obtained from its audited financial statements. The Company is required to submit a request 45 days before a quarter end to dispose of the security.

Quarterly Results of Operations

Quarterly Results of Operations	12 Months Ended
	Dec. 31, 2018
Quarterly Results of Operations
Quarterly Results of Operations	15. An unaudited summary of the Company’s 2018 and 2017 quarterly performance, and audited annual performance, is as follows. Year ended December 31, 2018 First Second Third Fourth Total Quarter Quarter Quarter Quarter Year Total revenue $ 209,719 $ 207,970 $ 215,907 $ 202,901 $ 836,497 Net income 9,125 26,816 28,908 18,346 83,195 Earnings per weighted average common share: Basic 0.60 1.77 1.90 1.21 5.48 Diluted 0.60 1.75 1.88 1.19 5.43 Cash dividends paid per common share 0.80 0.80 0.80 0.80 3.20 Year ended December 31, 2017 First Second Third Fourth Total Quarter Quarter Quarter Quarter Year Total revenue $ 204,770 $ 208,249 $ 212,529 $ 213,565 $ 839,113 Net income 12,019 21,105 17,954 11,309 62,387 Earnings per weighted average common share: Basic 0.80 1.40 1.19 0.73 4.13 Diluted 0.79 1.39 1.18 0.72 4.10 Cash dividends paid per common share 0.70 0.70 0.80 0.80 3.00

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2018
Related Party Transactions
Related Party Transactions	16. Mr. A. Richard Caputo, Jr., a member of the Company’s Board of Directors and Chairman of its Investment Committee until his resignation in February 2017, is a principal of The Jordan Company, LP (“Jordan”). In 2012, the Company participated as a lender in two loans made by syndicates of lenders to a portfolio company in which funds managed by Jordan are controlling or a significant investor. The first loan, made to Vantage Specialties, Inc., was disposed of in 2016. The second loan, made to ARCAS Automotive (formerly known as Sequa Auto), was disposed of in 2015. The Company made the loans on the same terms as the other lenders participating in the syndicate. The loans were subject to the approval of the Company’s full Investment Committee.

Subsequent Event

Subsequent Event	12 Months Ended
	Dec. 31, 2018
Subsequent Event
Subsequent Event	17. The Company has evaluated subsequent events for recognition or disclosure in the consolidated financial statements on Form 10‑K filed herewith and no events have occurred that require recognition or disclosure.

Schedule I - Summary of Investm

Schedule I - Summary of Investments - Other than Investments in Related Parties	12 Months Ended
	Dec. 31, 2018
Schedule I - Summary of Investments - Other than Investments in Related Parties
Schedule I - Summary of Investments - Other than Investments in Related Parties	Safety Insurance Group, Inc. Summary of Investment Schedule I At December 31, 2018 (Dollars in thousands) Amount at which shown Cost or Estimated in the Balance Amortized Cost Fair Value Sheet Fixed maturities: U.S. government and government agencies and authorities $ 302,194 $ 298,800 $ 298,800 Obligations of states and political subdivisions 262,772 266,198 266,198 Corporate and other securities 610,447 596,864 596,864 Total fixed maturities 1,175,413 1,161,862 1,161,862 Equity securities: Common stocks: Industrial, miscellaneous and all other 142,948 148,011 148,011 Total equity securities 142,948 148,011 148,011 Other invested assets 23,481 23,481 23,481 Total investments $ 1,341,842 $ 1,333,354 $ 1,333,354

Schedule II - Condensed Financi

Schedule II - Condensed Financial Information of the Registrant	12 Months Ended
	Dec. 31, 2018
Schedule II - Condensed Financial Information of the Registrant
Schedule II - Condensed Financial Information of the Registrant	Safety Insurance Group, Inc. Condensed Financial Information of the Registran Condensed Balance Sheets Schedule II (Dollars in thousands) Years Ended December 31, 2018 2017 Assets Investments in consolidated affiliates $ 720,721 $ 702,661 Other 69 9 Total assets $ 720,790 $ 702,670 Liabilities Accounts payable and other liabilities $ 2,146 $ 1,654 Total liabilities 2,146 1,654 Shareholders’ equity 718,644 701,016 Total liabilities and shareholders’ equity $ 720,790 $ 702,670 Safety Insurance Group, Inc. Condensed Financial Information of the Registrant Condensed Statements of Operations and Comprehensive Income Schedule II (Dollars in thousands) Years Ended December 31, 2018 2017 2016 Revenues $ — $ — $ — Expenses 1,695 1,494 1,406 Net loss (1,695) (1,494) (1,406) Earnings from consolidated subsidiaries 84,890 63,881 65,991 Net income 83,195 62,387 64,585 Other comprehensive (loss) income, net of tax (22,816) 8,426 (621) Comprehensive income $ 60,379 $ 70,813 $ 63,964 Safety Insurance Group, Inc. Condensed Financial Information of the Registrant Condensed Statements of Cash Flows Schedule II (Dollars in thousands) Years Ended December 31, 2018 2017 2016 Net income $ 83,195 $ 62,387 $ 64,585 Adjustments to reconcile net income to net cash provided by operating activities: Earnings from consolidated subsidiaries (84,890) (63,881) (65,991) Dividends received from consolidated subsidiaries(1) 45,271 41,826 39,156 Amortization of restricted stock expense 5,789 5,367 4,312 Changes in assets and liabilities: Other assets (60) 15 63 Accounts payable and accrued liabilities (492) (254) (111) Net cash provided by operating activities 48,813 45,460 42,014 Proceeds from exercise of stock options — — 257 Excess tax benefit from stock options exercised — — (6) Dividends paid (48,813) (45,460) (42,265) Acquisition of treasury stock — — — Net cash used for financing activities (48,813) (45,460) (42,014) Net increase in cash and cash equivalents — — — Cash and cash equivalents, beginning of year — — — Cash and cash equivalents, end of year $ — $ — $ — (1) No portion of the dividends received from operating subsidiaries during 2018, 2017 or 2016 represent returns of capital and therefore no portion is presented as an investing activity.

Schedule III - Supplementary In

Schedule III - Supplementary Insurance Information	12 Months Ended
	Dec. 31, 2018
Schedule III - Supplementary Insurance Information
Schedule III - Supplementary Insurance Information	Safety Insurance Group, Inc. Supplementary Insurance Informatio Schedule III (Dollars in thousands) As of December 31, Years Ended December 31, Future Policy Deferred Benefits, Policy Losses, Net Acquisition Claims and Loss Unearned Earned Investment Segment Costs Expenses Premiums Premiums Income Property and Casualty Insurance 2018 $ 73,355 $ 584,719 $ 435,380 $ 781,587 $ 43,788 2017 72,202 574,054 428,257 774,420 38,758 2016 70,996 560,321 418,033 755,760 38,413 Years Ended December 31, Benefits, Amortization of Claims, Deferred Net Losses, and Policy Other Premium Investment Settlement Acquisition Operating Premiums Segment Revenue Income Expenses Costs Expenses Written Property and Casualty Insurance 2018 $ 781,587 $ 43,788 $ 485,513 $ 146,601 $ 100,042 $ 786,912 2017 774,420 38,758 503,887 144,703 103,733 781,054 2016 755,760 38,413 493,433 141,540 91,477 766,470

Schedule IV - Reinsurance

Schedule IV - Reinsurance	12 Months Ended
	Dec. 31, 2018
Schedule IV - Reinsurance
Schedule IV - Reinsurance	Safety Insurance Group, Inc. Reinsuranc Schedule IV (Dollars in thousands) Percent of Amount Property and Casualty Gross Ceded to Other Assumed from Net Assumed Insurance Earned Premiums Amount Companies Other Companies Amount to Net Years ended December 31, 2018 $ 836,759 $ 87,368 $ 32,196 $ 781,587 2017 818,804 76,886 32,502 774,420 2016 796,366 70,150 29,544 755,760

Schedule V - Valuation and Qual

Schedule V - Valuation and Qualifying Accounts	12 Months Ended
	Dec. 31, 2018
Schedule V - Valuation and Qualifying Accounts
Schedule V - Valuation and Qualifying Accounts	Safety Insurance Group, Inc. Valuation and Qualifying Account Schedule V (Dollars in thousands) Additions Balance at Charged to Charged to Balance at Beginning Costs and Other End of of Period Expenses Accounts Deductions(1) Period Allowance for doubtful accounts Years Ended December 31, 2018 $ 414 $ 1,338 $ — $ 1,270 $ 482 2017 435 1,203 — 1,224 414 2016 425 1,162 — 1,152 435 (1) Deductions represent write‑offs of accounts determined to be uncollectible.

Schedule VI - Supplemental Info

Schedule VI - Supplemental Information Concerning Property and Casualty Insurance Operations	12 Months Ended
	Dec. 31, 2018
Schedule VI - Supplemental Information Concerning Property and Casualty Insurance Operations
Schedule VI - Supplemental Information Concerning Property and Casualty Insurance Operations	Safety Insurance Group, Inc. Supplemental Information Concerning Property and Casualty Insurance Operation Schedule VI (Dollars in thousands) As of December 31, Years Ended December 31, Reserves for Deferred Unpaid Claims Policy and Claims Net Acquisition Adjustment Unearned Earned Investment Affiliation With Registrant Costs Expenses Premiums Premiums Income Consolidated Property & Casualty Subsidiaries 2018 $ 73,355 $ 584,719 $ 435,380 $ 781,587 $ 43,788 2017 72,202 574,054 428,257 774,420 38,758 2016 70,996 560,321 418,033 755,760 38,413 Years Ended December 31, Claims and Claims Amortization Adjustment Expenses of Deferred Paid Claims Incurred Related to Policy and Claims Current Prior Acquisition Adjustment Premiums Affiliation With Registrant Year Year Costs Expenses Written Consolidated Property & Casualty Subsidiaries 2018 $ 542,001 $ (56,488) $ 146,601 $ 500,161 $ 786,912 2017 545,671 (41,784) 144,703 489,515 781,054 2016 538,881 (45,448) 141,540 502,552 766,470

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2018
Summary of Significant Accounting Policies
Investments	Investments Investments in fixed maturities, which include taxable and non‑taxable bonds and redeemable preferred stocks, are reported at fair value. Investments in equity securities, which include interests in common stocks, mutual funds and a real estate investment trust (“REIT”), are reported at fair value. Fair values for fixed maturity securities are based on estimates obtained from independent pricing services. Fair values for equity securities are derived from external market quotations, with the exception of the REIT whose fair value was determined using the trust’s net asset value obtained from its audited financial statements. Short‑term investments, which consist of U.S. Treasury securities, are reported at amortized cost, which approximates fair value. Other long‑term investments consist of investments in limited partnerships. The partnership interest is accounted for using the equity method of accounting and recorded in earnings from partnership investments. The carrying value of this investment is written down, or impaired, to fair value when a decline in value is considered to be other‑than‑temporary. In applying the equity method (including assessment for other‑than‑temporary impairment), the Company uses financial information provided by the investee, generally on a three month lag. Unrealized gains or losses on fixed maturity securities reported at fair value are excluded from earnings and reported in a separate component of shareholders’ equity, known as “Accumulated other comprehensive (loss) income, net of taxes,” until realized. Realized gains or losses on the sale or maturity of investments are determined based on the specific cost identification method. Fixed maturities and equity securities that experience declines in value that are other‑than‑temporary are written down to fair value with a corresponding charge to net impairment losses on investments. Investment income is recognized on an accrual basis of accounting. Bonds not backed by other loans are amortized using the interest method. Loan‑backed bonds and structured securities are amortized using the interest method and significant changes in estimated cash flows from the original purchase assumptions are accounted for using the retrospective method.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents includes money market accounts and United States (“U.S.”) Treasury bills with original maturities of three months or less from the date of purchase. U.S. Treasury bills are stated at amortized cost, which approximates fair value.
Accounts Receivable	Accounts Receivable Amounts included in accounts receivable represent premiums as well as finance charges, the majority of which are both billed on a monthly installment basis. Accounts receivable are stated net of allowances for doubtful accounts. At December 31, 2018 and 2017, these allowances were $482 and $414, respectively. Uncollected premium balances over ninety days past due are written off.
Deferred Policy Acquisition Costs	Deferred Policy Acquisition Costs Amounts that vary with and are primarily related to the successful acquisition of a new or renewal insurance contract, principally commissions and premium taxes, are deferred and amortized ratably over the effective period of the policies. All other acquisition expenses are expensed as incurred. Deferred policy acquisition costs are reviewed to determine if they are recoverable from future income, and if not, are charged to expense. Future investment income attributable to related premiums is not taken into account in measuring the recoverability of the carrying value of this asset. Amortization of acquisition costs in the amount of $146,601, $144,703, and $141,540 was charged to underwriting, operating and other expenses for the years ended 2018, 2017 and 2016, respectively.
Equity and Deposits in Pools	Equity and Deposits in Pools Equity and deposits in pools represents the net receivable amounts from the residual market mechanisms, Commonwealth Automobile Reinsurers (“CAR”) for automobile and Massachusetts Property Insurance Underwriting Association (“FAIR Plan”) for homeowner insurance in Massachusetts. See Note 9 for a discussion of the Company’s accounting for amounts assumed from residual markets.
Equipment and Leasehold Improvements	Equipment and Leasehold Improvements Property, equipment, leasehold improvements, and software which are included in other assets are carried at cost less accumulated depreciation. Depreciation is provided using the straight‑ line or accelerated method over the estimated useful lives of the related assets, which range from 3 to 10 years. Amortization of leasehold improvements is provided using the straight‑line method over the term of the lease. The costs of computer software developed or obtained for internal use are capitalized and amortized over the estimated life of the business system, beginning when the software is ready for its intended use. Maintenance and repairs are charged to expense as incurred.
Losses and Loss Adjustment Expenses	Losses and Loss Adjustment Expenses Liabilities for losses and loss adjustment expenses (“LAE”) include case basis estimates for open claims reported prior to year‑end and estimates of unreported claims and claim adjustment expenses, net of salvage and subrogation. The estimates are continually reviewed and modified to reflect current conditions, and any resulting adjustments are reflected in current operating results. Adjustments for anticipated salvage and subrogation are recorded on incurred and reported and incurred but not reported losses. The Company determines its loss and LAE reserves estimate based upon the analysis of our actuaries. A reasonable estimate is derived by selecting a point estimate within a range of indications as calculated by our actuaries using generally accepted actuarial techniques. The key assumption in most actuarial analysis is that past patterns of frequency and severity will repeat in the future, unless a significant change in the factors described above takes place. Our key factors and resulting assumptions are the ultimate frequency and severity of claims, based upon the most recent ten years of claims reported to the Company, and the data reported to us to calculate our share of the residual market. For each accident year and each coverage within a line of business our actuaries calculate the ultimate losses incurred.
Premiums and Unearned Premiums	Premiums and Unearned Premiums Premiums are earned over the terms of the respective policies, which are generally one year. Unearned premiums represent the portion of premiums written applicable to the unexpired terms of the policies. Ceded premiums are charged to income over the terms of the respective policies and the applicable term of the reinsurance contracts with third‑party reinsurers. Ceded unearned premiums represent the unexpired portion of premiums ceded to CAR and other reinsurers. Premiums received in advance of the policy effective date are recorded as a liability and not recognized as income until earned. Such amounts are included in accounts payable and accrued liabilities and totaled $14,649 and $14,371 at December 31, 2018 and 2017, respectively.
Reinsurance	Reinsurance Liabilities for unearned premiums and unpaid losses are stated before deductions for ceded reinsurance. The ceded amounts are carried as receivables. Earned premiums are stated net of deductions for ceded reinsurance. The Company, as primary insurer, will be required to pay losses in their entirety in the event that the reinsurers are unable to discharge their obligations under the reinsurance agreements.
Advertising Costs	Advertising Costs Advertising costs are charged to expense when they are incurred. Total advertising costs were $2,500, $2,216 and $2,063 for the years ended December 31, 2018, 2017, and 2016, respectively.
Finance and Other Service Income	Finance and Other Service Income Finance and other service income primarily include revenues from premium installment charges, which are recognized when earned.
Income Taxes	Income Taxes The Company and its subsidiaries file a consolidated U.S. federal income tax return. The method of allocation among members of the consolidated group is subject to a written agreement approved by the Board of Directors (the “Board”). The consolidated tax liability (benefit) is allocated on the basis of the members’ proportionate contribution to consolidated taxable income (loss). Deferred income taxes are generally recognized when assets and liabilities have different values for financial statement and tax reporting purposes, and for other temporary taxable and deductible differences as defined by Accounting Standards Codification (“ASC”) 740, Income Taxes. A valuation allowance is established where management has assessed that it is more likely than not that the Company will not be able to utilize the full deferred tax asset. On December 22, 2017, the TCJA was enacted, which significantly amends the Internal Revenue Code of 1986. The TCJA, among other things, reduces the corporate tax rate from a statutory rate of 35% to 21%, imposes additional limitations on net operating losses and executive compensation, allows for the full expensing of certain capital expenditures, and enacts other changes impacting the insurance industry.
Earnings per Weighted Average Common Share	Earnings per Weighted Average Common share Basic earnings per weighted average common share (“EPS”) are calculated by dividing net income by the weighted average number of basic common shares outstanding during the period. Diluted earnings per share amounts are based on the weighted average number of common shares including non-vested performance stock grants and the net effect of potentially dilutive common stock options. The following table sets forth the computation of basic and diluted EPS for the periods indicated. Years Ended December 31, 2018 2017 2016 Earnings attributable to common shareholders - basic and diluted): Net income from continuing operations $ 83,195 $ 62,387 $ 64,585 Allocation of income for participating shares (496) (392) (436) Net income from continuing operations attributed to common shareholders $ 82,699 $ 61,995 $ 64,149 Earnings per share denominator - basis and diluted Total weighted average common shares outstanding, including participating shares 15,170,754 15,105,558 15,048,048 Less: weighted average participating shares (90,485) (94,807) (101,595) Basic earnings per share denominator 15,080,269 15,010,751 14,946,453 Common equivalent shares- stock options — — 134 Common equivalent shares- non-vested performance stock grants 149,629 124,597 85,676 Diluted earnings per share denominator 15,229,898 15,135,348 15,032,263 Basic earnings per share $ 5.48 $ 4.13 $ 4.29 Diluted earnings per share $ 5.43 $ 4.10 $ 4.27 Undistributed earnings attributable to common shareholders - basic and diluted: Net income from continuing operations attributable to common shareholders -Basic $ 5.48 $ 4.13 $ 4.29 Dividends declared (3.20) (3.00) (2.80) Undistributed earnings $ 2.28 $ 1.13 $ 1.49 Net income from continuing operations attributable to common shareholders -Diluted $ 5.43 $ 4.10 $ 4.27 Dividends declared (3.20) (3.00) (2.80) Undistributed earnings $ 2.23 $ 1.10 $ 1.47 Diluted EPS excludes stock options with exercise prices and exercise tax benefits greater than the average market price of the Company’s common stock during the period because their inclusion would be anti‑dilutive. There were no anti‑dilutive stock options or non-vested performance stock grants for the years ended December 31, 2018 and 2017.
Share-Based Compensation	Share‑Based Compensation Accounting Standards Codification (“ASC”) 718, Compensation —Stock Compensation requires the Company to measure and recognize the cost of employee services received in exchange for an award of equity instruments. Under the provisions of ASC 718, share-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as an expense over the requisite service period (generally the vesting period of the equity grant). See Note 6 for further information regarding share‑based compensation.
Use of Estimates	Use of Estimates 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 and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Recent Accounting Pronouncements	Recent Accounting Pronouncements On August 17, 2018, the SEC adopted amendments to eliminate, integrate, update or modify certain of its disclosure requirements. The amendments which are focused on disclosure requirements that have become redundant, duplicative, overlapping, outdated, or superseded, are intended to facilitate the disclosure of information to investors and simplify compliance without significantly altering the total mix of information provided to investors. The amended rules generally reduce disclosures but some provisions added new disclosure requirements. The amendment is effective November 5, 2018 and the Company has elected to early adopt the amendment in this filing. The adoption of the new rules did not have a material impact on the Company’s financial position, results of operations, cash flows, or disclosures. In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . The ASU permits a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the newly enacted federal corporate income tax rate as a result of the 2017 Tax Cuts and Jobs Act (“TCJA”). The amount of the reclassification is the difference between the historical corporate income tax rate of thirty-five percent and the newly enacted twenty-one percent corporate income tax rate. The ASU is effective for fiscal years beginning after December 15, 2018. Early adoption is permitted. The Company adopted the updated guidance effective January 1, 2018 and elected to reclassify the income tax effects of the TCJA from accumulated other comprehensive income (“AOCI”) to retained earnings at the beginning of the period of adoption. This reclassification resulted in a decrease of $4,736 in retained earnings as of January 1, 2018 and an increase in AOCI by the same amount. In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities , which requires certain premiums on callable debt securities to be amortized to the earliest call date. The amortization period for callable debt securities purchased at a discount will not be impacted. For public business entities with calendar year ends, the amendments in ASU No. 2017-08 are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. If early adopted in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes the interim period. The Company is evaluating the impact of ASU 2017-08 on its financial position and results of operations. The extent of the impact will depend upon the nature and characteristics of the Company’s portfolio at the adoption date. In August 2016, the FASB issued ASU 2016-15 , Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 reduces diversity in practice in how certain transactions are classified in the statement of cash flows. The amendments in ASU 2016-15 provide guidance on specific cash flow issues including debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, and distributions received from equity method investees. ASU 2016-15 is effective for annual and interim periods beginning after December 15, 2017. The impact of the adoption of ASU 2016-15 was not material to the Company’s Consolidated Statements of Cash Flows. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Statements , which amends the guidance for the impairment of financial instruments and is expected to result in more timely recognition of impairment losses. The update introduces an impairment model referred to as the current expected credit loss (“CECL”) model. The impairment model is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses. The ASU is also intended to reduce the complexity of the current guidance by decreasing the number of credit impairment models that entities use to account for debt instruments. For public business entities that are SEC filers, the amendments in ASU No. 2016-13 are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Entities may adopt the amendments in this update earlier as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is evaluating the impact of ASU 2016-13 on its financial position and results of operations with regards to potential credit losses on its Available For Sale investment portfolio. The extent of the increase of credit losses is under evaluation, but will depend upon the nature and characteristics of the Company’s portfolio at the adoption date, and the macroeconomic conditions and forecasts at the date. In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . This ASC update requires all excess tax benefits and tax deficiencies to be recognized as income tax expense or benefit in the income statement, and be treated as discrete items in the reporting period in which they occur. Additionally, excess tax benefits will be classified with other income tax cash flows as an operating activity and cash paid by an employer when directly withholding shares for tax withholding purposes will be classified as a financing activity. Awards that are used to settle employee tax liabilities will be allowed to qualify for equity classification for withholdings up to the maximum statutory tax rates in applicable jurisdictions. Regarding forfeitures, a company can make an entity-wide accounting policy election to either continue estimating the number of awards that are expected to vest or account for forfeitures when they occur. The updated guidance was effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods. The impact of the adoption of ASU 2016-09 was not material to the Company’s financial position, results of operations or cash flows. In February 2016, the FASB issued ASU 2016-02, Leases . ASU 2016-02 establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. In 2018, the FASB issued two additional updates, ASU 2018-10, Codification Improvements to Topic 842, Leases and ASU 2018-11, Leases (Topic 842): Targeted Improvements, both of which have the same effective date and transition requirements as ASU 2016-02. ASU 2018-10 makes sixteen technical corrections to alleviate unintended consequences from applying the new standard and does not make any substantive changes to the core provisions or principals of the new standard. ASU 2019-11 creates an additional transition method which allows companies to elect to not adjust their comparative period financial information and disclosures for the effects of the new lease standard and also creates a practical expedient for lessors to not separate lease and non-lease components. The Company is currently evaluating the impact of ASU 2016-02, ASU 2018-10 and ASU 2018-11 by reviewing its existing lease contracts. The Company expects a gross-up of its Consolidated Balance Sheets as a result of recognizing lease liabilities and right of use assets. The gross-up related to lease liabilities is approximately $35,000 which primarily reflects the liability associated with our leased office space. The Company does not expect material changes to the Consolidated Statements of Operations. In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities . The amendments in this ASC update address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01: (1) requires equity investments (except those accounted for under the equity method or those that result in the consolidation of the investee) to be measured at fair value with changes in the fair value recognized in net income; (2) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (3) requires the use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes; and (4) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the notes to the financial statements. These amendments were effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company adopted the updated guidance effective January 1, 2018 which resulted in the recognition of $16,895 of net after-tax unrealized gains on equity investments as a cumulative effect adjustment that increased retained earnings as of January 1, 2018 and decreased AOCI by the same amount. At December 31, 2017, equity investments were classified as available-for-sale on the Company’s Consolidated Balance Sheets; however, upon adoption, the updated guidance eliminated the available-for-sale balance sheet classification for equity investments In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosures of Uncertainties about an Entity’s Ability as a Going Concern. ASU 2014-15 provides guidance on determining when and how to disclose going concern uncertainties in the financial statements, and requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. ASU 2014-15 is effective for annual periods ending after December 15, 2016 and interim periods thereafter. Management has assessed and concluded that there were no conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date the financial statements were issued. In May 2014, the FASB issued as final, ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , which supersedes virtually all existing revenue recognition guidance under GAAP. The update's core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The update was effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017 and allows early adoption. ASU 2014-09 allows for the use of either the retrospective or modified retrospective approach of adoption. The Company adopted the updated guidance effective January 1, 2018 using the modified retrospective approach. The adoption of ASU 2014-09 did not have a material impact on the Company’s financial position, results of operations, cash flows, or disclosures.
Segments	Segments Segment Reporting, the financial information of the segment is presented consistent with the way results are regularly evaluated by the chief operating decision maker in deciding how to allocate resources and in assessing performance.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2018
Earnings per Weighted Average Common Share
Computation of basic and diluted EPS	Years Ended December 31, 2018 2017 2016 Earnings attributable to common shareholders - basic and diluted): Net income from continuing operations $ 83,195 $ 62,387 $ 64,585 Allocation of income for participating shares (496) (392) (436) Net income from continuing operations attributed to common shareholders $ 82,699 $ 61,995 $ 64,149 Earnings per share denominator - basis and diluted Total weighted average common shares outstanding, including participating shares 15,170,754 15,105,558 15,048,048 Less: weighted average participating shares (90,485) (94,807) (101,595) Basic earnings per share denominator 15,080,269 15,010,751 14,946,453 Common equivalent shares- stock options — — 134 Common equivalent shares- non-vested performance stock grants 149,629 124,597 85,676 Diluted earnings per share denominator 15,229,898 15,135,348 15,032,263 Basic earnings per share $ 5.48 $ 4.13 $ 4.29 Diluted earnings per share $ 5.43 $ 4.10 $ 4.27 Undistributed earnings attributable to common shareholders - basic and diluted: Net income from continuing operations attributable to common shareholders -Basic $ 5.48 $ 4.13 $ 4.29 Dividends declared (3.20) (3.00) (2.80) Undistributed earnings $ 2.28 $ 1.13 $ 1.49 Net income from continuing operations attributable to common shareholders -Diluted $ 5.43 $ 4.10 $ 4.27 Dividends declared (3.20) (3.00) (2.80) Undistributed earnings $ 2.23 $ 1.10 $ 1.47

Investments (Tables)

Investments (Tables)	12 Months Ended
	Dec. 31, 2018
Investments
Gross unrealized gains and losses on investments in securities	As of December 31, 2018 Gross Unrealized Losses (3) Cost or Gross Non-OTTI OTTI Estimated Amortized Unrealized Unrealized Unrealized Fair Cost Gains Losses Losses (4) Value U.S. Treasury securities $ 1,807 $ — $ (30) $ — $ 1,777 Obligations of states and political subdivisions 262,772 5,098 (1,672) — 266,198 Residential mortgage-backed securities (1) 300,387 1,477 (4,841) — 297,023 Commercial mortgage-backed securities 60,897 337 (898) — 60,336 Other asset-backed securities 61,310 95 (329) — 61,076 Corporate and other securities 488,240 1,775 (14,563) — 475,452 Subtotal, fixed maturity securities 1,175,413 8,782 (22,333) — 1,161,862 Equity securities (2) 142,948 15,419 (10,356) — 148,011 Other invested assets (5) 23,481 — — — 23,481 Totals $ 1,341,842 $ 24,201 $ (32,689) $ — $ 1,333,354 As of December 31, 2017 Gross Unrealized Losses (3) Cost or Gross Non-OTTI OTTI Estimated Amortized Unrealized Unrealized Unrealized Fair Cost Gains Losses Losses (4) Value U.S. Treasury securities $ 1,809 $ — $ (18) $ — $ 1,791 Obligations of states and political subdivisions 391,806 12,244 (966) — 403,084 Residential mortgage-backed securities (1) 223,257 2,352 (2,843) — 222,766 Commercial mortgage-backed securities 39,268 415 (314) — 39,369 Other asset-backed securities 72,665 173 (225) — 72,613 Corporate and other securities 427,892 6,962 (2,451) — 432,403 Subtotal, fixed maturity securities 1,156,697 22,146 (6,817) — 1,172,026 Equity securities (2) 90,481 21,995 (609) — 111,867 Other invested assets (5) 23,162 — — — 23,162 Totals $ 1,270,340 $ 44,141 $ (7,426) $ — $ 1,307,055 (1) Residential mortgage‑backed securities consists primarily of obligations of U.S. Government agencies including collateralized mortgage obligations issued, guaranteed and/or insured by the following issuers: Government National Mortgage Association (GNMA), Federal Home Loan Mortgage Corporation (FHLMC), Federal National Mortgage Association (FNMA) and the Federal Home Loan Bank (FHLB). (2) Equity securities include common stock, preferred stock, mutual funds and interests in mutual funds held to fund the Company’s executive deferred compensation plan. (3) The Company’s investment portfolio included 958 and 367 securities in an unrealized loss position at December 31, 2018 and December 31, 2017, respectively. (4) Amounts in this column represent other‑than‑temporary impairment (“OTTI”) recognized in accumulated other comprehensive (loss) income. (5) Other invested assets are accounted for under the equity method which approximates fair value.
Amortized cost and the estimated fair value of fixed maturity securities, by maturity	As of December 31, 2018 Amortized Estimated Cost Fair Value Due in one year or less $ 32,505 $ 32,467 Due after one year through five years 281,428 280,060 Due after five years through ten years 295,645 287,379 Due after ten years through twenty years 139,596 140,107 Due after twenty years 3,645 3,414 Asset-backed securities 422,594 418,435 Totals $ 1,175,413 $ 1,161,862
Gross realized gains and losses on sales of investments	Years Ended December 31, 2018 2017 2016 Gross realized gains Fixed maturity securities $ 1,022 $ 1,468 $ 803 Equity securities 5,129 5,244 6,946 Gross realized losses Fixed maturity securities (1,878) (504) (1,242) Equity securities (1,047) (172) (948) Net realized gains on investments $ 3,226 $ 6,036 $ 5,559
Gross unrealized losses included in the Company's investment portfolio and the fair value of those securities	As of December 31, 2018 Less than 12 Months 12 Months or More Total Estimated Unrealized Estimated Unrealized Estimated Unrealized Fair Value Losses Fair Value Losses Fair Value Losses U.S. Treasury securities $ — $ — $ 1,777 $ 30 $ 1,777 $ 30 Obligations of states and political subdivisions 80,856 707 16,049 965 96,905 1,672 Residential mortgage-backed securities 64,101 694 138,572 4,147 202,673 4,841 Commercial mortgage-backed securities 22,652 270 13,117 628 35,769 898 Other asset-backed securities 33,866 112 23,532 217 57,398 329 Corporate and other securities 288,786 10,149 87,546 4,414 376,332 14,563 Subtotal, fixed maturity securities 490,261 11,932 280,593 10,401 770,854 22,333 Equity securities 71,439 9,955 2,072 401 73,511 10,356 Total temporarily impaired securities $ 561,700 $ 21,887 $ 282,665 $ 10,802 $ 844,365 $ 32,689 As of December 31, 2017 Less than 12 Months 12 Months or More Total Estimated Unrealized Estimated Unrealized Estimated Unrealized Fair Value Losses Fair Value Losses Fair Value Losses U.S. Treasury securities $ 1,791 $ 18 $ — $ — $ 1,791 $ 18 Obligations of states and political subdivisions 19,603 152 30,018 814 49,621 966 Residential mortgage-backed securities 126,713 1,724 39,638 1,119 166,351 2,843 Commercial mortgage-backed securities 5,457 30 8,027 284 13,484 314 Other asset-backed securities 25,769 167 18,270 58 44,039 225 Corporate and other securities 94,863 1,189 36,440 1,262 131,303 2,451 Subtotal, fixed maturity securities 274,196 3,280 132,393 3,537 406,589 6,817 Equity securities 4,730 361 2,420 248 7,150 609 Total temporarily impaired securities $ 278,926 $ 3,641 $ 134,813 $ 3,785 $ 413,739 $ 7,426
Credit loss recognized in earnings related to fixed maturity securities	Years Ended December 31, 2018 2017 2016 Credit losses on fixed maturity securities, beginning of period $ 892 $ 1,094 $ 796 Add: credit losses on OTTI not previously recognized 228 256 798 Less: credit losses on securities sold (276) (458) (500) Less: credit losses on securities impaired due to intent to sell — — — Add: credit losses on previously impaired securities — — — Less: increases in cash flows expected on previously impaired securities — — — Credit losses on fixed maturity securities, end of period $ 844 $ 892 $ 1,094
Components of net investment income	Years Ended December 31, 2018 2017 2016 Interest on fixed maturity securities $ 40,988 $ 37,246 $ 36,961 Dividends on equity securities 4,500 3,093 3,401 Equity in earnings of other invested assets 1,182 1,016 949 Interest on other assets 62 89 64 Interest on cash and cash equivalents — — 43 Total Investment Income 46,732 41,444 41,418 Investment expenses 2,944 2,686 3,005 Net investment income $ 43,788 $ 38,758 $ 38,413

Equipment and Leasehold Impro_2

Equipment and Leasehold Improvements (Tables)	12 Months Ended
	Dec. 31, 2018
Equipment and Leasehold Improvements
Schedule of carrying value of equipment and leasehold improvements by classification	As of December 31, 2018 2017 Software $ 36,161 $ 34,252 Computer equipment 9,195 8,820 Leasehold improvements 8,264 2,524 Other equipment 3,116 2,770 Furniture and fixtures 4,129 1,338 Total cost 60,865 49,704 Less accumulated depreciation and amortization 45,281 39,837 Equipment and leasehold improvements, net $ 15,584 $ 9,867

Share-Based Compensation (Table

Share-Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2018
Share-Based Compensation
Schedule of stock option activity	Years Ended December 31, 2018 2017 2016 Shares Weighted Shares Weighted Shares Weighted Under Average Under Average Under Average Option Exercise Price Option Exercise Price Option Exercise Price Outstanding at beginning of year $ — $ — $ — $ — $ 6,200 $ 42.85 Exercised — — — — (6,000) 42.85 Forfeited — — — — (200) 42.85 Outstanding at end of period — — — — — — Exercisable at end of period $ — $ — $ — $ — $ — $ —
Schedule of restricted stock and performance-based restricted stock activity	Years Ended December 31, 2018 2017 2016 Shares Weighted Shares Weighted Shares Weighted Under Average Under Average Under Average Restriction Fair Value Restriction Fair Value Restriction Fair Value Outstanding at beginning of year 93,086 $ 63.13 95,493 $ 55.86 112,024 $ 54.44 Granted 39,451 75.05 40,226 73.42 46,556 56.09 Vested and unrestricted (43,276) 62.46 (42,453) 56.56 (56,279) 53.43 Forfeited (126) 70.63 (180) 63.87 (6,808) 50.02 Outstanding at end of period 89,135 $ 68.70 93,086 $ 63.13 95,493 $ 55.86 Years Ended December 31, 2018 2017 2016 Performance-based Weighted Performance-based Weighted Performance-based Weighted Shares Under Average Shares Under Average Shares Under Average Restriction Fair Value Restriction Fair Value Restriction Fair Value Outstanding at beginning of year 105,660 $ 62.75 94,610 $ 57.60 99,101 $ 55.55 Granted 31,832 75.14 29,829 74.96 44,626 61.07 Vested and unrestricted (27,801) 61.50 (18,259) 53.99 (15,289) 47.42 Forfeited (4,521) 62.41 (520) 53.99 (33,828) 52.07 Outstanding at end of period 105,170 $ 66.79 105,660 $ 62.75 94,610 $ 57.60

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2018
Commitments and Contingencies
Schedule of minimum annual rental payments due under lease agreements	The approximate minimum annual rental payments due under these lease agreements as of December 31, 2018 are presented in the following table. 2019 $ 4,044 2020 4,037 2021 3,988 2022 4,005 2023 3,892 2024 and after 20,064 Total minimum lease payments $ 40,030

Reinsurance (Tables)

Reinsurance (Tables)	12 Months Ended
	Dec. 31, 2018
Reinsurance
Schedule of effect of assumed and ceded premiums on net written and earned premiums and losses and LAE incurred	Years Ended December 31, 2018 2017 2016 Written Premiums Direct $ 843,675 $ 827,316 $ 811,559 Assumed 32,403 34,214 30,424 Ceded (89,166) (80,476) (75,513) Net written premiums $ 786,912 $ 781,054 $ 766,470 Earned Premiums Direct $ 836,759 $ 818,804 $ 796,366 Assumed 32,196 32,502 29,544 Ceded (87,368) (76,886) (70,150) Net earned premiums $ 781,587 $ 774,420 $ 755,760 Loss and LAE Direct $ 538,569 $ 517,146 $ 515,506 Assumed 28,815 28,003 23,343 Ceded (81,871) (41,262) (45,416) Net loss and LAE $ 485,513 $ 503,887 $ 493,433

Loss and Loss Adjustment Expe_2

Loss and Loss Adjustment Expense Reserves (Tables)	12 Months Ended
	Dec. 31, 2018
Loss and Loss Adjustment Expense Reserves
Schedule of reconciliation of beginning and ending reserves for losses and loss adjustment expenses (LAE)	Years Ended December 31, 2018 2017 2016 Reserves for losses and LAE at beginning of year $ 574,054 $ 560,321 $ 553,977 Less receivable from reinsurers related to unpaid losses and LAE (83,085) (83,724) (68,261) Net reserves for losses and LAE at beginning of year 490,969 476,597 485,716 Incurred losses and LAE, related to: Current year 542,001 545,671 538,881 Prior years (56,488) (41,784) (45,448) Total incurred losses and LAE 485,513 503,887 493,433 Paid losses and LAE related to: Current year 340,927 325,049 328,046 Prior years 159,234 164,466 174,506 Total paid losses and LAE 500,161 489,515 502,552 Net reserves for losses and LAE at end of period 476,321 490,969 476,597 Plus receivable from reinsurers related to unpaid losses and LAE 108,398 83,085 83,724 Reserves for losses and LAE at end of period $ 584,719 $ 574,054 $ 560,321
Schedule of incurred and paid claims development	Private Passenger Automobile Liability Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance As of December 31, 2018 For the Years Ended December 31, Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims Cumulative Number of Reported Claims Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited) $ 174,243 $ 172,667 $ 168,900 $ 167,078 $ 163,593 $ 160,844 $ 159,674 $ 159,021 $ 158,433 $ 157,996 $ - - - Total $ 1,739,604 Private Passenger Automobile Liability Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited) $ 73,808 $ 121,962 $ 139,517 $ 148,807 $ 153,756 $ 156,808 $ 157,440 $ 157,697 $ 157,710 $ 157,718 Total $ 1,524,602 All outstanding liabilities before 2009, net of reinsurance Liabilities for claims and claim adjustment expenses, net of reinsurance $ 215,140 Private Passenger Automobile Physical Damage Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance As of December 31, 2018 For the Years Ended December 31, Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims Cumulative Number of Reported Claims Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited) $ 96,219 $ 93,993 $ 93,156 $ 93,058 $ 93,060 $ 93,021 $ 93,036 $ 93,014 $ 93,002 $ 92,992 $ - - - - - Total $ 1,152,485 Private Passenger Automobile Physical Damage Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited) $ 96,496 $ 94,258 $ 93,187 $ 93,116 $ 93,049 $ 93,024 $ 93,026 $ 93,012 $ 92,998 $ 92,991 Total $ 1,161,439 All outstanding liabilities before 2009, net of reinsurance - Liabilities for claims and claim adjustment expenses, net of reinsurance $ (8,954) Commercial Automobile Liability Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance As of December 31, 2018 For the Years Ended December 31, Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims Cumulative Number of Reported Claims Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited) $ 23,292 $ 22,757 $ 22,416 $ 21,968 $ 21,938 $ 21,720 $ 21,564 $ 21,461 $ 21,193 $ 21,048 $ 10 Total $ 305,492 Commercial Automobile Liability Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited) $ 6,811 $ 12,705 $ 15,196 $ 17,237 $ 19,004 $ 20,589 $ 20,988 $ 21,026 $ 21,026 $ 21,026 Total $ 219,850 All outstanding liabilities before 2009, net of reinsurance Liabilities for claims and claim adjustment expenses, net of reinsurance $ 85,588 Commercial Automobile Physical Damage Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance As of December 31, 2018 For the Years Ended December 31, Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims Cumulative Number of Reported Claims Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited) $ 10,786 $ 9,987 $ 9,904 $ 9,981 $ 9,913 $ 9,935 $ 9,981 $ 9,981 $ 10,002 $ 10,020 $ (12) Total $ 146,956 Commercial Automobile Physical Damage Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited) $ 9,707 $ 10,253 $ 10,079 $ 10,004 $ 10,034 $ 10,035 $ 10,034 $ 10,034 $ 10,032 $ 10,033 Total $ 144,267 All outstanding liabilities before 2009, net of reinsurance - Liabilities for claims and claim adjustment expenses, net of reinsurance $ 2,689 Homeowners Liability Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance As of December 31, 2018 For the Years Ended December 31, Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims Cumulative Number of Reported Claims Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited) $ 4,637 $ 4,637 $ 4,637 $ 4,012 $ 3,456 $ 3,072 $ 3,015 $ 2,966 $ 2,966 $ 2,867 $ - - - - Total $ 67,229 Homeowners Liability Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited) $ 535 $ 1,411 $ 2,092 $ 2,607 $ 2,813 $ 2,867 $ 2,867 $ 2,867 $ 2,867 $ 2,867 Total $ 35,254 All outstanding liabilities before 2009, net of reinsurance Liabilities for claims and claim adjustment expenses, net of reinsurance $ 32,076 Homeowners Property Damage Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance As of December 31, 2018 For the Years Ended December 31, Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims Cumulative Number of Reported Claims Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited) $ 27,483 $ 27,024 $ 27,233 $ 26,913 $ 26,244 $ 25,977 $ 25,967 $ 25,922 $ 25,922 $ 25,877 $ 123 Total $ 691,356 Homeowners Property Damage Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited) $ 16,147 $ 22,305 $ 25,812 $ 25,718 $ 25,705 $ 25,741 $ 25,754 $ 25,753 $ 25,753 $ 25,752 Total $ 645,480 All outstanding liabilities before 2009, net of reinsurance Liabilities for claims and claim adjustment expenses, net of reinsurance $ 46,254
Schedule of unaudited supplementary information related to incurred and paid claims development	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Years Private Passenger Automobile Liability Private Passenger Automobile Physical Damage -4.9% -2.2% -0.4% -0.1% Commercial Automobile Liability Commercial Automobile Physical Damage -1.9% -0.4% Homeowners Liability Homeowners Property Damage -0.1% -0.5%
Schedule of reconciliation of the disclosure of Incurred and Paid Claims Development to the Liability for Unpaid claims and Claims Adjustment Expenses	Reconciliation of the Disclosure of Incurred and Paid Claims Development to the Liability for Unpaid claims and Claim Adjustment Expenses December 31, 2018 Net outstanding liabilities Private Passenger Automobile Liability $ 215,140 Private Passenger Automobile Physical Damage (8,954) Commercial Automobile Liability 85,588 Commercial Automobile Physical Damage 2,689 Homeowners Liability 32,076 Homeowners Property Damage 46,254 Other Short-Duration Insurance Lines 74,356 Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance $ 447,149 Reinsurance recoverable on unpaid claims Private Passenger Automobile Liability $ 318 Private Passenger Automobile Physical Damage - Commercial Automobile Liability 97,727 Commercial Automobile Physical Damage 2,564 Homeowners Liability - Homeowners Property Damage 653 Other Short-Duration Insurance Lines 7,136 Total reinsurance recoverable on unpaid claims $ 108,398 Unallocated claims adjustment expenses 29,172 Total gross liability for unpaid claims and claim adjustment expenses $ 584,719

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2018
Income Taxes
Summary of income tax expense (benefit) in the Consolidated Statements of Operations	Years Ended December 31, 2018 2017 2016 Current Income Taxes: Federal $ 26,548 $ 22,198 $ 26,927 State 108 30 89 26,656 22,228 27,016 Deferred Income Taxes: Federal (5,600) 2,085 1,681 State — — — (5,600) 2,085 1,681 Total income tax expense $ 21,056 $ 24,313 $ 28,697
Schedule of sources of the difference and the tax effects	Years Ended December 31, 2018 2017 2016 Federal income tax expense at statutory rate $ 21,893 $ 30,345 $ 32,649 Tax exempt investment income, net (1,862) (4,123) (4,194) State taxes, net 85 19 58 Nondeductible expenses 494 237 202 Remeasurement of deferred tax liability upon enactment of the TCJA — (1,540) — Tax windfall related to share-based stock compensation (79) (333) — Other, net 525 (292) (18) Total income tax expense $ 21,056 $ 24,313 $ 28,697
Schedule of deferred income tax asset (liability) representing the tax effects of temporary differences attributable to the Company's consolidated federal tax return group	Years Ended December 31, 2018 2017 Deferred tax assets: Discounting of loss reserves $ 5,688 $ 3,361 Discounting of unearned premium reserve 17,475 17,239 Investments 327 — Bad debt allowance 274 289 Employee benefits 4,159 3,499 Rent incentive 1,181 64 Depreciation — 75 Total deferred tax assets before valuation allowance 29,104 24,527 Valuation allowance for deferred tax assets — — Total deferred tax assets 29,104 24,527 Deferred tax liabilities: Deferred acquisition costs (15,405) (15,163) Investments — (2,421) Net unrealized gains on investments — (7,710) Loss reserve transition adjustment (2,229) — Software development costs (1,268) (1,648) Premium acquisition expenses (512) (502) Depreciation (941) — Total deferred tax liabilities (20,355) (27,444) Net deferred tax asset (liability) $ 8,749 $ (2,917)

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	12 Months Ended
	Dec. 31, 2018
Fair Value of Financial Instruments
Fair value measurements for investments	As of December 31, 2018 Total Level 1 Inputs Level 2 Inputs Level 3 Inputs U.S. Treasury securities $ 1,777 $ — $ 1,777 $ — Obligations of states and political subdivisions 266,198 — 266,198 — Residential mortgage-backed securities 297,023 — 297,023 — Commercial mortgage-backed securities 60,336 — 60,336 — Other asset-backed securities 61,076 — 61,076 — Corporate and other securities 475,452 — 475,452 — Equity securities 116,173 115,493 — 680 Total investment securities $ 1,278,035 $ 115,493 $ 1,161,862 $ 680 As of December 31, 2017 Total Level 1 Inputs Level 2 Inputs Level 3 Inputs U.S. Treasury securities $ 1,791 $ — $ 1,791 $ — Obligations of states and political subdivisions 403,084 — 403,084 — Residential mortgage-backed securities 222,766 — 222,766 — Commercial mortgage-backed securities 39,369 — 39,369 — Other asset-backed securities 72,613 — 72,613 — Corporate and other securities 432,403 — 432,403 — Equity securities 87,737 87,057 — 680 Total investment securities $ 1,259,763 $ 87,057 $ 1,172,026 $ 680
Changes in the Company's Level 3 fair value securities	Years Ended December 31, 2018 2017 2016 Balance at beginning of period $ 680 $ 678 $ 547 Net gains and losses included in earnings — — — Net gains included in other comprehensive income — — — Purchases — 2 131 Sales — — — Transfers into Level 3 — — — Transfers out of Level 3 — — — Balance at end of period $ 680 $ 680 $ 678

Quarterly Results of Operatio_2

Quarterly Results of Operations (Tables)	12 Months Ended
	Dec. 31, 2018
Quarterly Results of Operations
Summary of the Company's unaudited of quarterly performance, and audited annual performance results of operations	Year ended December 31, 2018 First Second Third Fourth Total Quarter Quarter Quarter Quarter Year Total revenue $ 209,719 $ 207,970 $ 215,907 $ 202,901 $ 836,497 Net income 9,125 26,816 28,908 18,346 83,195 Earnings per weighted average common share: Basic 0.60 1.77 1.90 1.21 5.48 Diluted 0.60 1.75 1.88 1.19 5.43 Cash dividends paid per common share 0.80 0.80 0.80 0.80 3.20 Year ended December 31, 2017 First Second Third Fourth Total Quarter Quarter Quarter Quarter Year Total revenue $ 204,770 $ 208,249 $ 212,529 $ 213,565 $ 839,113 Net income 12,019 21,105 17,954 11,309 62,387 Earnings per weighted average common share: Basic 0.80 1.40 1.19 0.73 4.13 Diluted 0.79 1.39 1.18 0.72 4.10 Cash dividends paid per common share 0.70 0.70 0.80 0.80 3.00

Basis of Presentation (Details)

Basis of Presentation (Details)	12 Months Ended
	Dec. 31, 2018
Basis of Presentation
Percentage of private passenger automobile insurance to total direct written premiums	55.70%

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details) $ / shares in Units, $ in Thousands	Jan. 01, 2018USD ($)	Dec. 22, 2017	Dec. 31, 2018USD ($)$ / shares	Sep. 30, 2018USD ($)$ / shares	Jun. 30, 2018USD ($)$ / shares	Mar. 31, 2018USD ($)$ / shares	Dec. 31, 2017USD ($)$ / shares	Sep. 30, 2017USD ($)$ / shares	Jun. 30, 2017USD ($)$ / shares	Mar. 31, 2017USD ($)$ / shares	Dec. 31, 2018USD ($)segment$ / sharesshares	Dec. 31, 2017USD ($)$ / sharesshares	Dec. 31, 2016USD ($)$ / sharesshares
Investments
Maximum period considered for applying equity method accounting based on financial information provided by the investee											3 months
Accounts Receivable
Premiums receivable, allowance for doubtful accounts			$ 482				$ 414				$ 482	$ 414
Deferred Policy Acquisition Costs
Amortization expense											146,601	144,703	$ 141,540
Marketing and Advertising Expense [Abstract]
Advertising costs											2,500	2,216	2,063
Earnings per Weighted Average Common Share
Net income from continuing operations			$ 18,346	$ 28,908	$ 26,816	$ 9,125	$ 11,309	$ 17,954	$ 21,105	$ 12,019	83,195	62,387	64,585
Allocation of income for participating shares											(496)	(392)	(436)
Net income from continuing operations attributed to common shareholders											$ 82,699	$ 61,995	$ 64,149
Total weighted average common shares outstanding, including participating shares | shares											15,170,754	15,105,558	15,048,048
Less: weighted average participating shares | shares											(90,485)	(94,807)	(101,595)
Basic earnings per share denominator | shares											15,080,269	15,010,751	14,946,453
Common equivalent shares- stock options | shares													134
Common equivalent shares- non-vested performance stock grants | shares											149,629	124,597	85,676
Diluted earnings per share denominator | shares											15,229,898	15,135,348	15,032,263
Basic earnings per share (in dollars per share) | $ / shares			$ 1.21	$ 1.90	$ 1.77	$ 0.60	$ 0.73	$ 1.19	$ 1.40	$ 0.80	$ 5.48	$ 4.13	$ 4.29
Diluted earnings per share (in dollars per share) | $ / shares			1.19	1.88	1.75	0.60	0.72	1.18	1.39	0.79	$ 5.43	$ 4.10	4.27
Antidilutive common shares | shares											0	0
Undistributed Earnings, Diluted [Abstract]
Basic earnings per share (in dollars per share) | $ / shares			1.21	1.90	1.77	0.60	0.73	1.19	1.40	0.80	$ 5.48	$ 4.13	4.29
Dividends declared | $ / shares											(3.2)	(3)	(2.8)
Undistributed earnings (loss) | $ / shares											2.28	1.13	1.49
Diluted earnings per share (in dollars per share) | $ / shares			$ 1.19	$ 1.88	$ 1.75	$ 0.60	$ 0.72	$ 1.18	$ 1.39	$ 0.79	5.43	4.10	4.27
Undistributed earnings (loss) - Diluted | $ / shares											$ 2.23	$ 1.10	$ 1.47
Premiums and Unearned Premiums
Term over which premiums are earned											1 year
Deferred revenue											$ 14,649	$ 14,371
Segments
Number of business segments | segment											1
Statutory tax rate		35.00%									21.00%
Minimum
Equipment and Leasehold Improvements
Estimated useful lives											3 years
Maximum
Equipment and Leasehold Improvements
Estimated useful lives											10 years
Accounting Standards Update 2018-02
Segments
Cumulative Effect of Adoption of ASU 2018-02 in Period of Adoption	$ (4,736)
Statutory tax rate											21.00%	35.00%
Accounting Standards Update 2016-01
Segments
Cumulative effect of change in accounting principle	$ 16,895
Accounting Standards Update 2016-02 | Restatement Adjustment
Accounting Policies [Line Items]
Operating lease liability			$ 35,000								$ 35,000

Investments (Details)

Investments (Details) $ in Thousands	Dec. 31, 2018USD ($)item	Dec. 31, 2017USD ($)item
Marketable Securities [Line Items]
Fixed maturity securities, amortized cost	$ 1,175,413	$ 1,156,697
Fixed maturity securities, Gross Unrealized Gains	8,782	22,146
Fixed maturity securities, Non-OTTI Gross Unrealized Losses	(22,333)	(6,817)
Fixed maturity securities, Estimated Fair Value	1,161,862	1,172,026
Equity securities, Cost or Amortized Cost	142,948	90,481
Equity securities, Estimated Fair Value	148,011	111,867
Other invested assets, Cost or Amortized Cost	23,481	23,162
Cost or Amortized Cost	1,341,842	1,270,340
Gross Unrealized Gains	24,201	44,141
Gross Non-OTTI Unrealized Losses	(32,689)	(7,426)
Estimated Fair Value	$ 1,333,354	$ 1,307,055
Number of securities in an unrealized loss position | item	958	367
U.S. Treasury securities
Marketable Securities [Line Items]
Fixed maturity securities, amortized cost	$ 1,807	$ 1,809
Fixed maturity securities, Non-OTTI Gross Unrealized Losses	(30)	(18)
Fixed maturity securities, Estimated Fair Value	1,777	1,791
Obligations of states and political subdivisions
Marketable Securities [Line Items]
Fixed maturity securities, amortized cost	262,772	391,806
Fixed maturity securities, Gross Unrealized Gains	5,098	12,244
Fixed maturity securities, Non-OTTI Gross Unrealized Losses	(1,672)	(966)
Fixed maturity securities, Estimated Fair Value	266,198	403,084
Residential mortgage-backed securities
Marketable Securities [Line Items]
Fixed maturity securities, amortized cost	300,387	223,257
Fixed maturity securities, Gross Unrealized Gains	1,477	2,352
Fixed maturity securities, Non-OTTI Gross Unrealized Losses	(4,841)	(2,843)
Fixed maturity securities, Estimated Fair Value	297,023	222,766
Commercial mortgage-backed securities
Marketable Securities [Line Items]
Fixed maturity securities, amortized cost	60,897	39,268
Fixed maturity securities, Gross Unrealized Gains	337	415
Fixed maturity securities, Non-OTTI Gross Unrealized Losses	(898)	(314)
Fixed maturity securities, Estimated Fair Value	60,336	39,369
Other asset-backed securities
Marketable Securities [Line Items]
Fixed maturity securities, amortized cost	61,310	72,665
Fixed maturity securities, Gross Unrealized Gains	95	173
Fixed maturity securities, Non-OTTI Gross Unrealized Losses	(329)	(225)
Fixed maturity securities, Estimated Fair Value	61,076	72,613
Corporate and other securities
Marketable Securities [Line Items]
Fixed maturity securities, amortized cost	488,240	427,892
Fixed maturity securities, Gross Unrealized Gains	1,775	6,962
Fixed maturity securities, Non-OTTI Gross Unrealized Losses	(14,563)	(2,451)
Fixed maturity securities, Estimated Fair Value	475,452	432,403
Equity securities
Marketable Securities [Line Items]
Equity securities, Cost or Amortized Cost	142,948	90,481
Equity securities, Gross Unrealized Gains	15,419	21,995
Equity securities, Non-OTTI Gross Unrealized Losses	(10,356)	(609)
Equity securities, Estimated Fair Value	148,011	111,867
Other invested assets
Marketable Securities [Line Items]
Other invested assets, Cost or Amortized Cost	23,481	23,162
Other invested assets, Estimated Fair Value	$ 23,481	$ 23,162

Investments Amortized Cost and

Investments Amortized Cost and Estimated Fair Value (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Amortized Cost
Due in one year or less, Amortized Cost	$ 32,505
Due after one year through five years, Amortized Cost	281,428
Due after five years though ten years, Amortized Cost	295,645
Due after ten years through twenty years, Amortized Cost	139,596
Due after twenty years, Amortized Cost	3,645
Asset-backed securities, Amortized Cost	422,594
Totals, Amortized Cost	1,175,413	$ 1,156,697
Estimated Fair Value
Due in one year or less, Fair Value	32,467
Due after one year through five years, Fair Value	280,060
Due after five years through ten years, Fair Value	287,379
Due after ten years through twenty years, Fair Value	140,107
Due after twenty years, Fair Value	3,414
Asset-backed securities, Fair Value	418,435
Totals, Fair Value	$ 1,161,862	$ 1,172,026

Investments Gross Realized Gain

Investments Gross Realized Gains and Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Investments
Gross realized gains fixed maturity securities	$ 1,022	$ 1,468	$ 803
Gross realized gains equity securities	5,129	5,244	6,946
Gross realized losses fixed maturities	(1,878)	(504)	(1,242)
Gross realized losses equity securities	(1,047)	(172)	(948)
Net realized gains on investments	$ 3,226	$ 6,036	$ 5,559

Investments Gross Unrealized Lo

Investments Gross Unrealized Losses and Fair Value (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Fixed Maturity Securities
Estimated Fair Value, Less than 12 Months	$ 561,700	$ 278,926
Estimated Fair Value, 12 Months or More	282,665	134,813
Estimated Fair Value, Total	844,365	413,739
Unrealized Losses, Less than 12 Months	21,887	3,641
Unrealized Losses, 12 Months or More	10,802	3,785
Unrealized Losses, Total	32,689	7,426
Subtotal, fixed maturity securities
Fixed Maturity Securities
Estimated Fair Value, Less than 12 Months	490,261	274,196
Estimated Fair Value, 12 Months or More	280,593	132,393
Estimated Fair Value, Total	770,854	406,589
Unrealized Losses, Less than 12 Months	11,932	3,280
Unrealized Losses, 12 Months or More	10,401	3,537
Unrealized Losses, Total	22,333	6,817
U.S. Treasury securities
Fixed Maturity Securities
Estimated Fair Value, Less than 12 Months		1,791
Estimated Fair Value, 12 Months or More	1,777
Estimated Fair Value, Total	1,777	1,791
Unrealized Losses, Less than 12 Months		18
Unrealized Losses, 12 Months or More	30
Unrealized Losses, Total	30	18
Obligations of states and political subdivisions
Fixed Maturity Securities
Estimated Fair Value, Less than 12 Months	80,856	19,603
Estimated Fair Value, 12 Months or More	16,049	30,018
Estimated Fair Value, Total	96,905	49,621
Unrealized Losses, Less than 12 Months	707	152
Unrealized Losses, 12 Months or More	965	814
Unrealized Losses, Total	1,672	966
Residential mortgage-backed securities
Fixed Maturity Securities
Estimated Fair Value, Less than 12 Months	64,101	126,713
Estimated Fair Value, 12 Months or More	138,572	39,638
Estimated Fair Value, Total	202,673	166,351
Unrealized Losses, Less than 12 Months	694	1,724
Unrealized Losses, 12 Months or More	4,147	1,119
Unrealized Losses, Total	4,841	2,843
Commercial mortgage-backed securities
Fixed Maturity Securities
Estimated Fair Value, Less than 12 Months	22,652	5,457
Estimated Fair Value, 12 Months or More	13,117	8,027
Estimated Fair Value, Total	35,769	13,484
Unrealized Losses, Less than 12 Months	270	30
Unrealized Losses, 12 Months or More	628	284
Unrealized Losses, Total	898	314
Other asset-backed securities
Fixed Maturity Securities
Estimated Fair Value, Less than 12 Months	33,866	25,769
Estimated Fair Value, 12 Months or More	23,532	18,270
Estimated Fair Value, Total	57,398	44,039
Unrealized Losses, Less than 12 Months	112	167
Unrealized Losses, 12 Months or More	217	58
Unrealized Losses, Total	329	225
Corporate and other securities
Fixed Maturity Securities
Estimated Fair Value, Less than 12 Months	288,786	94,863
Estimated Fair Value, 12 Months or More	87,546	36,440
Estimated Fair Value, Total	376,332	131,303
Unrealized Losses, Less than 12 Months	10,149	1,189
Unrealized Losses, 12 Months or More	4,414	1,262
Unrealized Losses, Total	14,563	2,451
Equity securities
Fixed Maturity Securities
Estimated Fair Value, Less than 12 Months	71,439	4,730
Estimated Fair Value, 12 Months or More	2,072	2,420
Estimated Fair Value, Total	73,511	7,150
Unrealized Losses, Less than 12 Months	9,955	361
Unrealized Losses, 12 Months or More	401	248
Unrealized Losses, Total	$ 10,356	$ 609

Investments Other (Details)

Investments Other (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)perioditem	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)
Other-Than-Temporary Impairments
Securities held with a material (20% or greater) unrealized loss for four or more consecutive quarters | item	3
Material loss threshold, percentage	20.00%
Material loss threshold, number of consecutive quarters | period	4
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward]
Credit losses on fixed maturity securities, beginning of period	$ 892	$ 1,094	$ 796
Add: credit losses on OTTI not previously recognized	228	256	798
Less: credit losses on securities sold	(276)	(458)	(500)
Credit losses on fixed maturity securities, end of period	844	892	$ 1,094
Amounts included in accumulated other comprehensive income related to OTTI securities	0	0
Short-term Investments	0	$ 0
Subprime mortgage debt securities
Other-Than-Temporary Impairments
Securities held	$ 0

Investments Components of Net I

Investments Components of Net Investment Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Components of net investment income
Interest on fixed maturity securities	$ 40,988	$ 37,246	$ 36,961
Dividends on equity securities	4,500	3,093	3,401
Equity in earnings of other invested assets	1,182	1,016	949
Interest on other assets	62	89	64
Interest on cash and cash equivalents			43
Total investment income	46,732	41,444	41,418
Investment expenses	2,944	2,686	3,005
Net investment income	$ 43,788	$ 38,758	$ 38,413

Equipment and Leasehold Impro_3

Equipment and Leasehold Improvements (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Property, plant and equipment
Total cost	$ 60,865	$ 49,704
Less accumulated depreciation and amortization	45,281	39,837
Equipment and leasehold improvements, net	15,584	9,867
Depreciation and amortization	5,464	5,037	$ 4,382
Software
Property, plant and equipment
Total cost	36,161	34,252
Computer equipment
Property, plant and equipment
Total cost	9,195	8,820
Leasehold improvements
Property, plant and equipment
Total cost	8,264	2,524
Other equipment
Property, plant and equipment
Total cost	3,116	2,770
Furniture and fixtures
Property, plant and equipment
Total cost	$ 4,129	$ 1,338

Employee Benefit Plan (Details)

Employee Benefit Plan (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Employee Benefit Plan
Minimum age required to be eligible for contribution under the Retirement Plan	21 years
Employer matching contribution (as a percent)	100.00%
Maximum amount contributed by employee from employees base salary (as a percent)	8.00%
Compensation expense	$ 3,302	$ 3,164	$ 3,018

Share-Based Compensation (Detai

Share-Based Compensation (Details)	12 Months Ended
	Dec. 31, 2018shares
Maximum number of shares of common stock with respect to which awards may be granted	2,850,000
Number of shares available for future grant	350,000
The Incentive Plan
Number of shares available for future grant	0
2018 Long Term Incentive Plan
Granted (in shares)	0
Number of shares available for future grant	350,000

Share-Based Compensation Stock

Share-Based Compensation Stock Options (Details)	12 Months Ended
	Dec. 31, 2016$ / sharesshares
Shares Under Option
Outstanding at beginning of year (in shares) | shares	6,200
Exercised (in shares) | shares	(6,000)
Forfeited (in shares) | shares	(200)
Weighted Average Exercise Price
Outstanding at beginning of year (in dollars per share) | $ / shares	$ 42.85
Exercised (in dollars per share) | $ / shares	42.85
Forfeited (in dollars per share) | $ / shares	$ 42.85

Share-Based Compensation Restri

Share-Based Compensation Restricted Stock Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Weighted Average Fair Value
Unrecognized compensation expense related to non-vested restricted stock awards	$ 6,376
Weighted average period expected for recognition of compensation expense related to non-vested restricted stock awards	1 year 6 months
Total fair value of the shares that were vested and unrestricted during the period	$ 4,413	$ 3,387	$ 3,732
Compensation Expense, Net of Tax	5,197	3,358	2,797
Income tax benefits from compensation expense	$ 1,382	$ 1,808	$ 1,506
Restricted Stock
Shares Under Restriction
Outstanding at beginning of year (in shares)	93,086	95,493	112,024
Granted (in shares)	39,451	40,226	46,556
Vested and unrestricted (in shares)	(43,276)	(42,453)	(56,279)
Forfeited (in shares)	(126)	(180)	(6,808)
Outstanding at end of period (in shares)	89,135	93,086	95,493
Weighted Average Fair Value
Outstanding at beginning of year (in dollars per share)	$ 63.13	$ 55.86	$ 54.44
Granted (in dollars per share)	75.05	73.42	56.09
Vested and unrestricted (in dollars per share)	62.46	56.56	53.43
Forfeited (in dollars per share)	70.63	63.87	50.02
Outstanding at end of period (in dollars per share)	$ 68.70	$ 63.13	$ 55.86
Restricted Stock | Executives and non-executives (2018 and after)
Share-Based Compensation
Vesting period	3 years
Restricted Stock | First anniversary of grant date
Share-Based Compensation
Actual Payouts (as a percent)	30.00%
Restricted Stock | Second anniversary of grant date
Share-Based Compensation
Actual Payouts (as a percent)	30.00%
Restricted Stock | Third anniversary of grant date
Share-Based Compensation
Actual Payouts (as a percent)	40.00%
Performance-based | Restricted Stock
Share-Based Compensation
Vesting period	3 years
Shares Under Restriction
Outstanding at beginning of year (in shares)	105,660	94,610	99,101
Granted (in shares)	31,832	29,829	44,626
Vested and unrestricted (in shares)	(27,801)	(18,259)	(15,289)
Forfeited (in shares)	(4,521)	(520)	(33,828)
Outstanding at end of period (in shares)	105,170	105,660	94,610
Weighted Average Fair Value
Outstanding at beginning of year (in dollars per share)	$ 62.75	$ 57.60	$ 55.55
Granted (in dollars per share)	75.14	74.96	61.07
Vested and unrestricted (in dollars per share)	61.50	53.99	47.42
Forfeited (in dollars per share)	62.41	53.99	52.07
Outstanding at end of period (in dollars per share)	$ 66.79	$ 62.75	$ 57.60
Performance-based | Restricted Stock | Minimum
Share-Based Compensation
Actual Payouts (as a percent)	0.00%
Performance-based | Restricted Stock | Maximum
Share-Based Compensation
Actual Payouts (as a percent)	200.00%

Commitments and Contingencies_2

Commitments and Contingencies (Details) $ in Thousands	Nov. 07, 2017item	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)
Lease of office space
Rental Expense		$ 3,531	$ 4,557	$ 4,242
Minimum annual rental payments due
2,019		4,044
2,020		4,037
2,021		3,988
2,022		4,005
2,023		3,892
2024 and after		20,064
Total minimum lease payments		40,030
Ninth Amendment to lease agreement
Minimum annual rental payments due
Lease extension, additional term commencing on January 1, 2018 | item	11
Number of renewal terms | item	2
Lessee Leasing Arrangements, Operating Leases, Renewal Term	5 years
Limited partnership commitments
Commitments and Contingencies
Investment in limited partnership, committed amount		80,000
Contributions to be made		46,898
Contribution made		$ 34,794

Debt (Details)

Debt (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Revolving Credit Agreement | LIBOR rate
Debt
Variable interest rate basis	LIBOR
Spread on variable rate (as a percent)	1.25%
Revolving Credit Agreement | Prime rate
Debt
Variable interest rate basis	prime rate
Revolving Credit Agreement | Federal Funds Effective Swap Rate
Debt
Variable interest rate basis	federal funds rate
Spread on variable rate (as a percent)	1.25%
Additional spread on variable rate (as a percent)	0.50%
RBS Citizens | Revolving Credit Agreement
Debt
Current borrowing capacity	$ 30,000	$ 30,000
Maximum borrowing capacity	50,000
Default trigger, principal amount	10,000
Outstanding amount	$ 0	$ 0
Commitment fee (as a percent)	0.25%	0.25%
F H L B Boston
Debt
Outstanding amount	$ 0
Maximum borrowing capacity using eligible invested assets as collateral	$ 284,369

Reinsurance (Details)

Reinsurance (Details) - USD ($) $ in Thousands	Jan. 08, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Reinsurance
Prepaid Reinsurance Premiums		$ 33,974	$ 32,175
Disputed Reinsurance Recoverable
Reinsurance
Disputed reinsurance recoverable			20,918
Award for settlement of paid and outstanding losses	$ 9,200
Unrecovered reinsurance expensed			11,718
CAR | Reinsurance Recoverable Including Reinsurance Premium Paid [Member] | Concentration of credit risk
Reinsurance
Reinsurance receivables on paid and unpaid loss and LAE		113,544	86,291
Assumed net losses		5,362	5,444	$ 2,341
Prepaid Reinsurance Premiums		$ 32,447	$ 30,706

Reinsurance Written and Earned

Reinsurance Written and Earned Premiums (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Written Premiums
Direct	$ 843,675	$ 827,316	$ 811,559
Assumed	32,403	34,214	30,424
Ceded	(89,166)	(80,476)	(75,513)
Net written premiums	786,912	781,054	766,470
Earned Premiums
Direct	836,759	818,804	796,366
Assumed	32,196	32,502	29,544
Ceded	(87,368)	(76,886)	(70,150)
Net earned premiums	781,587	774,420	755,760
Loss and LAE
Direct	538,569	517,146	515,506
Assumed	28,815	28,003	23,343
Ceded	(81,871)	(41,262)	(45,416)
Net loss and LAE	$ 485,513	$ 503,887	$ 493,433

Loss and Loss Adjustment Expe_3

Loss and Loss Adjustment Expense Reserves (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Loss and Loss Adjustment Expense Reserves
Reserves for losses and LAE at beginning of year	$ 574,054	$ 560,321	$ 553,977
Less receivable from reinsurers related to unpaid losses and LAE	(83,085)	(83,724)	(68,261)
Net reserves for losses and LAE at beginning of year	490,969	476,597	485,716
Incurred losses and LAE, related to:
Current year	542,001	545,671	538,881
Prior years	(56,488)	(41,784)	(45,448)
Total incurred losses and LAE	485,513	503,887	493,433
Paid losses and LAE related to:
Current year	340,927	325,049	328,046
Prior years	159,234	164,466	174,506
Total paid losses and LAE	500,161	489,515	502,552
Net reserves for losses and LAE at end of period	476,321	490,969	476,597
Plus receivable from reinsurers related to unpaid losses and LAE	108,398	83,085	83,724
Reserves for losses and LAE at end of period	584,719	574,054	560,321
Reduction in retained automobile reserves	36,266	29,855	25,019
Reduction in retained homeowners reserves	$ 18,947	$ 10,201	$ 11,648

Loss and Loss Adjustment Expe_4

Loss and Loss Adjustment Expense Reserves - Incurred and paid claims development (Details) $ in Thousands	Dec. 31, 2018USD ($)claim	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)	Dec. 31, 2012USD ($)	Dec. 31, 2011USD ($)	Dec. 31, 2010USD ($)	Dec. 31, 2009USD ($)
incurred and paid claims development
Liabilities for claims and claims adjustment expenses, net of reinsurance	$ 447,149
Private Passenger Automobile Liability
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	1,739,604
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	1,524,602
All outstanding liabilities before 2009, net of reinsurance	138
Liabilities for claims and claims adjustment expenses, net of reinsurance	215,140
Private Passenger Automobile Liability | 2009
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 157,996	$ 158,433	$ 159,021	$ 159,674	$ 160,844	$ 163,593	$ 167,078	$ 168,900	$ 172,667	$ 174,243
Cumulative Number of Reported claims | claim	55,015
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 157,718	157,710	157,697	157,440	156,808	153,756	148,807	139,517	121,962	73,808
Private Passenger Automobile Liability | 2010
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	161,236	162,679	163,206	164,723	166,195	170,089	171,978	172,558	169,426
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ 1
Cumulative Number of Reported claims | claim	54,930
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 161,114	161,080	160,859	160,192	157,887	153,408	142,688	126,734	73,721
Private Passenger Automobile Liability | 2011
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 168,671	170,732	171,852	172,957	175,209	176,906	176,906	176,727
Cumulative Number of Reported claims | claim	56,124
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 168,585	168,025	167,251	164,413	158,904	146,532	130,018	76,467
Private Passenger Automobile Liability | 2012
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 163,350	166,008	167,831	170,379	174,856	175,189	175,262
Cumulative Number of Reported claims | claim	53,273
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 161,749	160,416	157,443	152,991	144,157	126,553	74,306
Private Passenger Automobile Liability | 2013
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	176,713	179,167	181,492	183,264	183,517	183,367
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ (131)
Cumulative Number of Reported claims | claim	54,246
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 172,736	169,634	163,694	152,472	135,031	79,049
Private Passenger Automobile Liability | 2014
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	181,312	183,119	186,798	187,104	187,305
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ (1,108)
Cumulative Number of Reported claims | claim	52,784
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 173,163	166,815	156,693	136,434	79,151
Private Passenger Automobile Liability | 2015
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	184,477	188,317	190,236	190,036
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ (903)
Cumulative Number of Reported claims | claim	52,966
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 168,641	156,483	138,255	76,934
Private Passenger Automobile Liability | 2016
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	185,009	192,318	192,912
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ (7,391)
Cumulative Number of Reported claims | claim	49,294
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 154,964	137,917	78,862
Private Passenger Automobile Liability | 2017
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	184,429	185,673
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ (11,567)
Cumulative Number of Reported claims | claim	45,879
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 133,037	77,519
Private Passenger Automobile Liability | 2018
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	176,411
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ (2,785)
Cumulative Number of Reported claims | claim	39,846
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 72,895
Private Passenger Automobile Physical Damage
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	1,152,485
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	1,161,439
Liabilities for claims and claim adjustment expenses, net of reinsurance	(8,954)
Private Passenger Automobile Physical Damage | 2009
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 92,992	93,002	93,014	93,036	93,021	93,060	93,058	93,156	93,993	96,219
Cumulative Number of Reported claims | claim	127,434
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 92,991	92,998	93,012	93,026	93,024	93,049	93,116	93,187	94,258	96,496
Private Passenger Automobile Physical Damage | 2010
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 96,335	96,323	96,325	96,366	96,385	96,485	96,642	98,463	101,456
Cumulative Number of Reported claims | claim	128,201
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 96,306	96,317	96,325	96,335	96,369	96,444	96,587	98,445	101,635
Private Passenger Automobile Physical Damage | 2011
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 113,640	113,677	113,674	113,765	113,821	115,028	117,951	118,131
Cumulative Number of Reported claims | claim	140,509
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 113,640	113,669	113,673	113,719	113,809	114,451	117,152	126,196
Private Passenger Automobile Physical Damage | 2012
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 103,510	103,547	103,575	103,679	104,393	107,912	108,376
Cumulative Number of Reported claims | claim	123,639
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 103,510	103,537	103,573	103,664	104,311	107,017	111,928
Private Passenger Automobile Physical Damage | 2013
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 112,060	112,096	112,197	113,034	114,239	114,389
Cumulative Number of Reported claims | claim	131,704
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 112,060	112,085	112,162	112,894	115,904	120,843
Private Passenger Automobile Physical Damage | 2014
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	122,341	122,327	122,410	123,622	123,421
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ (9)
Cumulative Number of Reported claims | claim	135,002
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 122,350	122,402	122,668	126,414	130,732
Private Passenger Automobile Physical Damage | 2015
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	133,737	134,101	136,661	140,219
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ 31
Cumulative Number of Reported claims | claim	144,263
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 133,701	134,066	136,760	143,532
Private Passenger Automobile Physical Damage | 2016
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	122,116	124,922	129,528
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ 68
Cumulative Number of Reported claims | claim	126,059
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 122,023	124,298	133,530
Private Passenger Automobile Physical Damage | 2017
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	126,304	128,340
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ (801)
Cumulative Number of Reported claims | claim	123,902
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 126,822	132,409
Private Passenger Automobile Physical Damage | 2018
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	129,450
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ (22,380)
Cumulative Number of Reported claims | claim	116,887
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 138,036
Commercial Automobile Liability
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	305,492
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	219,850
All outstanding liabilities before 2009, net of reinsurance	(54)
Liabilities for claims and claims adjustment expenses, net of reinsurance	85,588
Commercial Automobile Liability | 2009
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	21,048	21,193	21,461	21,564	21,720	21,938	21,968	22,416	22,757	23,292
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ 10
Cumulative Number of Reported claims | claim	4,755
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 21,026	21,026	21,026	20,988	20,589	19,004	17,237	15,196	12,705	6,811
Commercial Automobile Liability | 2010
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	18,495	18,725	19,034	19,285	19,763	19,576	19,493	19,922	20,150
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ (34)
Cumulative Number of Reported claims | claim	4,531
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 18,280	18,269	18,113	17,892	17,351	15,821	13,816	11,520	6,466
Commercial Automobile Liability | 2011
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	22,759	22,817	22,933	23,649	24,187	24,160	24,298	23,658
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ 3
Cumulative Number of Reported claims | claim	4,958
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 22,445	22,043	21,913	20,941	19,783	17,807	14,263	7,306
Commercial Automobile Liability | 2012
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	22,859	23,819	24,572	24,723	24,662	24,447	23,704
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ 610
Cumulative Number of Reported claims | claim	4,566
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 21,021	20,601	18,876	17,804	15,617	12,474	6,503
Commercial Automobile Liability | 2013
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	25,986	26,310	26,864	28,377	29,541	29,175
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ 659
Cumulative Number of Reported claims | claim	5,783
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 23,867	22,434	21,129	19,625	17,079	8,502
Commercial Automobile Liability | 2014
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	32,948	33,914	34,376	34,105	34,117
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ 100
Cumulative Number of Reported claims | claim	6,084
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 27,886	25,253	21,968	17,853	9,426
Commercial Automobile Liability | 2015
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	37,730	36,610	36,150	35,371
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ (770)
Cumulative Number of Reported claims | claim	7,207
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 29,804	26,018	21,700	11,181
Commercial Automobile Liability | 2016
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	40,947	39,416	37,954
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ (1,655)
Cumulative Number of Reported claims | claim	6,444
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 25,711	19,902	9,991
Commercial Automobile Liability | 2017
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	41,373	42,865
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ 2,777
Cumulative Number of Reported claims | claim	6,091
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 20,106	10,407
Commercial Automobile Liability | 2018
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	41,347
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ 14,106
Cumulative Number of Reported claims | claim	4,965
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 9,704
Commercial Automobile Physical Damage
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	146,956
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	144,267
All outstanding liabilities before 2009, net of reinsurance
Liabilities for claims and claims adjustment expenses, net of reinsurance	2,689
Commercial Automobile Physical Damage | 2009
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	10,020	10,002	9,981	9,981	9,935	9,913	9,981	9,904	9,987	10,786
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ (12)
Cumulative Number of Reported claims | claim	11,593
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 10,033	10,032	10,034	10,034	10,035	10,034	10,004	10,079	10,253	9,707
Commercial Automobile Physical Damage | 2010
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	9,990	9,990	9,916	9,955	10,077	9,892	9,893	9,963	10,048
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ (36)
Cumulative Number of Reported claims | claim	10,555
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 10,026	10,026	10,027	10,025	10,028	10,039	10,053	10,219	9,398
Commercial Automobile Physical Damage | 2011
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	11,024	10,952	10,910	10,952	10,960	11,031	11,151	11,511
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ (25)
Cumulative Number of Reported claims | claim	11,488
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 11,049	11,050	11,053	11,055	11,060	11,092	11,119	11,006
Commercial Automobile Physical Damage | 2012
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	10,209	10,208	10,250	10,249	10,331	10,382	10,382
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ (19)
Cumulative Number of Reported claims | claim	9,913
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 10,228	10,235	10,239	10,242	10,270	10,553	9,707
Commercial Automobile Physical Damage | 2013
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	13,047	13,057	13,180	13,298	13,567	13,666
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ (13)
Cumulative Number of Reported claims | claim	12,298
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 13,060	13,065	13,074	13,114	13,378	12,665
Commercial Automobile Physical Damage | 2014
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	15,353	15,419	15,455	16,925	17,426
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ (27)
Cumulative Number of Reported claims | claim	13,545
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 15,381	15,388	15,424	15,862	15,377
Commercial Automobile Physical Damage | 2015
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	18,974	19,021	19,047	20,223
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ 425
Cumulative Number of Reported claims | claim	15,468
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 18,549	18,667	18,910	17,787
Commercial Automobile Physical Damage | 2016
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	17,909	18,506	20,216
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ 146
Cumulative Number of Reported claims | claim	13,590
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 17,763	18,143	17,228
Commercial Automobile Physical Damage | 2017
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	19,200	19,691
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ (154)
Cumulative Number of Reported claims | claim	13,097
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 19,336	17,957
Commercial Automobile Physical Damage | 2018
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	21,230
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ 1,042
Cumulative Number of Reported claims | claim	12,196
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 18,842
Homeowners Liability
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	67,229
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	35,254
All outstanding liabilities before 2009, net of reinsurance	101
Liabilities for claims and claims adjustment expenses, net of reinsurance	32,076
Homeowners Liability | 2009
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 2,867	2,966	2,966	3,015	3,072	3,456	4,012	4,637	4,637	4,637
Cumulative Number of Reported claims | claim	200
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 2,867	2,867	2,867	2,867	2,867	2,813	2,607	2,092	1,411	535
Homeowners Liability | 2010
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 3,457	3,612	3,735	4,098	4,717	4,888	5,422	5,422	5,591
Cumulative Number of Reported claims | claim	217
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 3,457	3,457	3,472	3,425	3,214	2,890	2,684	1,420	963
Homeowners Liability | 2011
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 4,845	5,546	6,017	6,923	7,531	7,644	7,644	6,260
Cumulative Number of Reported claims | claim	304
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 4,769	4,758	4,536	4,497	4,336	3,459	1,969	235
Homeowners Liability | 2012
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 3,824	4,331	5,304	6,464	7,514	7,514	7,514
Cumulative Number of Reported claims | claim	249
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 3,606	3,600	3,029	2,731	2,308	2,063	1,389
Homeowners Liability | 2013
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	5,312	5,978	7,578	9,337	9,768	9,768
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ 118
Cumulative Number of Reported claims | claim	262
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 4,038	3,829	3,493	3,080	2,337	527
Homeowners Liability | 2014
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	7,120	7,388	9,738	11,494	11,494
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ 391
Cumulative Number of Reported claims | claim	261
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 4,828	4,200	3,212	1,834	340
Homeowners Liability | 2015
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	9,201	9,908	12,555	12,965
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ (148)
Cumulative Number of Reported claims | claim	285
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 5,205	4,267	3,319	428
Homeowners Liability | 2016
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	10,594	10,594	10,594
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ 428
Cumulative Number of Reported claims | claim	263
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 4,257	2,669	647
Homeowners Liability | 2017
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	10,058	11,276
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ 1,794
Cumulative Number of Reported claims | claim	253
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 1,676	305
Homeowners Liability | 2018
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	9,951
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ 2,181
Cumulative Number of Reported claims | claim	201
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 551
Homeowners Property Damage
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	691,356
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	645,480
All outstanding liabilities before 2009, net of reinsurance	378
Liabilities for claims and claims adjustment expenses, net of reinsurance	46,254
Homeowners Property Damage | 2009
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	25,877	25,922	25,922	25,967	25,977	26,244	26,913	27,233	27,024	27,483
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ 123
Cumulative Number of Reported claims | claim	3,651
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 25,752	25,753	25,753	25,754	25,741	25,705	25,718	25,812	22,305	$ 16,147
Homeowners Property Damage | 2010
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	39,097	39,501	39,501	39,658	39,921	40,868	43,021	44,550	45,342
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ 173
Cumulative Number of Reported claims | claim	6,685
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 38,923	39,235	39,235	39,203	39,145	39,110	38,790	37,447	$ 25,761
Homeowners Property Damage | 2011
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	92,388	92,595	93,186	93,914	94,657	97,571	98,021	95,586
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ 204
Cumulative Number of Reported claims | claim	15,116
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 92,182	92,182	92,333	92,444	92,462	92,184	89,741	$ 71,532
Homeowners Property Damage | 2012
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	41,895	42,382	43,097	44,380	47,392	49,911	50,351
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ 84
Cumulative Number of Reported claims | claim	6,051
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 41,736	41,789	41,782	41,737	41,960	40,681	$ 30,801
Homeowners Property Damage | 2013
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	49,973	51,077	52,464	55,722	56,199	56,298
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ 235
Cumulative Number of Reported claims | claim	5,697
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 49,620	49,653	49,612	49,702	48,456	$ 38,661
Homeowners Property Damage | 2014
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	55,127	57,331	59,751	60,213	59,160
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ 751
Cumulative Number of Reported claims | claim	6,076
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 54,262	54,224	54,088	52,161	$ 40,409
Homeowners Property Damage | 2015
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	162,788	162,377	152,049	152,586
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ (122)
Cumulative Number of Reported claims | claim	20,074
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 161,745	160,572	145,337	$ 112,563
Homeowners Property Damage | 2016
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	64,208	66,442	67,116
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ 1,694
Cumulative Number of Reported claims | claim	5,417
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 59,155	57,238	$ 44,103
Homeowners Property Damage | 2017
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	76,560	80,736
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ (2,049)
Cumulative Number of Reported claims | claim	5,987
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 64,401	$ 46,366
Homeowners Property Damage | 2018
incurred and paid claims development
Incurred claims and allocated claim adjustment expenses, net of reinsurance	83,443
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development of Reported Claims	$ (1,667)
Cumulative Number of Reported claims | claim	7,961
Cumulative paid and allocated claim adjustment expenses, net of reinsurance	$ 57,704

Loss and Loss Adjustment Expe_5

Loss and Loss Adjustment Expense Reserves - Supplementary information about average historical claims (Details)	12 Months Ended
	Dec. 31, 2018
Private Passenger Automobile Liability
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Year 1	43.80%
Year 2	31.70%
Year 3	10.20%
Year 4	6.30%
Year 5	3.10%
Year 6	1.70%
Year 7	0.50%
Year 8	0.20%
Year 9	0.00%
Year 10	0.00%
Private Passenger Automobile Physical Damage
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Year 1	107.20%
Year 2	(4.9)
Year 3	(2.2)
Year 4	(0.4)
Year 5	(0.1)
Year 6	0.00%
Year 7	0.00%
Year 8	0.00%
Year 9	0.00%
Year 10	0.00%
Commercial Automobile Liability
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Year 1	28.20%
Year 2	26.90%
Year 3	12.70%
Year 4	9.20%
Year 5	6.60%
Year 6	5.60%
Year 7	1.40%
Year 8	1.00%
Year 9	0.00%
Year 10	0.00%
Commercial Automobile Physical Damage
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Year 1	95.00%
Year 2	5.50%
Year 3	(1.9)
Year 4	(0.4)
Year 5	0.00%
Year 6	0
Year 7	0.00%
Year 8	0.00%
Year 9	0.00%
Year 10	0.00%
Homeowners Liability
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Year 1	8.80%
Year 2	23.30%
Year 3	17.70%
Year 4	11.90%
Year 5	7.10%
Year 6	5.30%
Year 7	1.80%
Year 8	0.00%
Year 9	0.00%
Year 10	0.00%
Homeowners Property Damage
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Year 1	70.00%
Year 2	21.60%
Year 3	5.40%
Year 4	0.30%
Year 5	0.00%
Year 6	0.00%
Year 7	(0.10%)
Year 8	0.00%
Year 9	(0.50%)
Year 10	0.00%

Loss and Loss Adjustment Expe_6

Loss and Loss Adjustment Expense Reserves - Disclosure of Incurred and Paid Claims Development to the Liability for Unpaid claims and Claim Adjustment Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Reconciliation of the Disclosure of Incurred and Paid Claims Development to the Liability for Unpaid claims and Claim Adjustment Expenses
Net outstanding liabilities	$ 447,149
Reinsurance recoverable on unpaid claims	108,398	$ 83,085	$ 83,724
Unallocated claims adjustment expenses	29,172
Total gross liability for unpaid claims and claim adjustment expenses	584,719	$ 574,054	$ 560,321	$ 553,977
Private Passenger Automobile Liability
Reconciliation of the Disclosure of Incurred and Paid Claims Development to the Liability for Unpaid claims and Claim Adjustment Expenses
Net outstanding liabilities	215,140
Reinsurance recoverable on unpaid claims	318
Private Passenger Automobile Physical Damage
Reconciliation of the Disclosure of Incurred and Paid Claims Development to the Liability for Unpaid claims and Claim Adjustment Expenses
Net outstanding liabilities	(8,954)
Reinsurance recoverable on unpaid claims	0
Commercial Automobile Liability
Reconciliation of the Disclosure of Incurred and Paid Claims Development to the Liability for Unpaid claims and Claim Adjustment Expenses
Net outstanding liabilities	85,588
Reinsurance recoverable on unpaid claims	97,727
Commercial Automobile Physical Damage
Reconciliation of the Disclosure of Incurred and Paid Claims Development to the Liability for Unpaid claims and Claim Adjustment Expenses
Net outstanding liabilities	2,689
Reinsurance recoverable on unpaid claims	2,564
Homeowners Liability
Reconciliation of the Disclosure of Incurred and Paid Claims Development to the Liability for Unpaid claims and Claim Adjustment Expenses
Net outstanding liabilities	32,076
Homeowners Property Damage
Reconciliation of the Disclosure of Incurred and Paid Claims Development to the Liability for Unpaid claims and Claim Adjustment Expenses
Net outstanding liabilities	46,254
Reinsurance recoverable on unpaid claims	653
Other short-Duration Insurance Lines
Reconciliation of the Disclosure of Incurred and Paid Claims Development to the Liability for Unpaid claims and Claim Adjustment Expenses
Net outstanding liabilities	74,356
Reinsurance recoverable on unpaid claims	$ 7,136

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	Dec. 22, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Current Income Taxes:
Federal		$ 26,548	$ 22,198	$ 26,927
State		108	30	89
Current Income Tax Expense (Benefit), Total		26,656	22,228	27,016
Deferred Income Taxes:
Federal		(5,600)	2,085	1,681
Deferred Income Tax Expense (Benefit), Total		(5,600)	2,085	1,681
Total income tax expense (benefit)		$ 21,056	$ 24,313	$ 28,697
Statutory tax rate	35.00%	21.00%

Income Taxes (Sources of Differ

Income Taxes (Sources of Difference and Tax Effects) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Sources of the difference and the tax effects
Federal income tax expense (benefit), at statutory rate	$ 21,893	$ 30,345	$ 32,649
Tax-exempt investment income, net	(1,862)	(4,123)	(4,194)
State taxes, net	85	19	58
Nondeductible expenses	494	237	202
Remeasurement of deferred tax liability upon enactment of the TCJA		(1,540)
Tax windfall related to share-based stock compensation	(79)	(333)
Other, net	525	(292)	(18)
Total income tax expense (benefit)	$ 21,056	$ 24,313	$ 28,697

Income Taxes (Temporary Differe

Income Taxes (Temporary Differences) (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Deferred tax assets:
Discounting of loss reserves	$ 5,688	$ 3,361
Discounting of unearned premium reserve	17,475	17,239
Investments	327
Bad debt allowance	274	289
Employee benefits	4,159	3,499
Rent incentive	1,181	64
Depreciation		75
Total deferred tax assets before valuation allowance	29,104	24,527
Total deferred tax assets	29,104	24,527
Deferred tax liabilities:
Deferred acquisition costs	(15,405)	(15,163)
Investments		(2,421)
Net unrealized gains on investments	(2,229)
Software development costs	(1,268)	(1,648)
Premium acquisition expenses	(512)	(502)
Depreciation	(941)
Total deferred tax liabilities	(20,355)	(27,444)
Net deferred tax asset (liability)	(8,749)
Net deferred tax asset (liability)		(2,917)
Unrecognized tax benefits	0	0
Unrecognized tax benefits if recognized would affect the effective tax rate	0	0
Unrecognized tax benefits interest and penalties accrued	$ 0	$ 0

Share Repurchase Program (Detai

Share Repurchase Program (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Aug. 03, 2007
Share Repurchase Program
Share Repurchase Program	$ 150,000		$ 30,000
Number of common shares purchased during period under the program	0	0
Treasury stock shares	2,279,570	2,279,570
Treasury stock, at cost	$ 83,835	$ 83,835

Statutory Net Income and Surp_2

Statutory Net Income and Surplus (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)item	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)
Statutory Net Income and Surplus
Maximum available for dividends without approval	$ 86,734
Company's insurance company subsidiaries
Statutory Net Income and Surplus
Statutory net income	86,734	$ 57,982	$ 57,202
Statutory capital and surplus	$ 646,820	$ 617,577
Period of statutory measurement of income and dividends	12 months
Dividend limitation without prior permission, percentage of preceding surplus	10.00%
Period allowed for Commissioner to object to notice of an extraordinary dividend	30 days
Restricted net assets amount	$ 560,086
Number of levels of regulatory action, risk-based capital law | item	4
Minimum statutory capital and surplus or company action level risk-based capital	$ 180,582
Safety Insurance Company
Statutory Net Income and Surplus
Statutory capital and surplus	646,820
Recorded dividends	$ 45,271

Fair Value of Financial Instr_3

Fair Value of Financial Instruments Level 1 - 3 Inputs (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Fair value of financial instruments
Fixed maturity securities, Estimated Fair Value	$ 1,161,862	$ 1,172,026
Equity securities, Estimated Fair Value	148,011	111,867
Short-term investments	0	0
Level 1 Inputs
Fair value of financial instruments
Marketable Securities, Total	115,493	87,057
Level 1 Inputs | Equity securities
Fair value of financial instruments
Equity securities, Estimated Fair Value	115,493	87,057
Level 2 Inputs
Fair value of financial instruments
Marketable Securities, Total	1,161,862	1,172,026
Level 2 Inputs | U.S. Treasury securities
Fair value of financial instruments
Fixed maturity securities, Estimated Fair Value	1,777	1,791
Level 2 Inputs | Obligations of states and political subdivisions
Fair value of financial instruments
Fixed maturity securities, Estimated Fair Value	266,198	403,084
Level 2 Inputs | Residential mortgage-backed securities
Fair value of financial instruments
Fixed maturity securities, Estimated Fair Value	297,023	222,766
Level 2 Inputs | Commercial mortgage-backed securities
Fair value of financial instruments
Fixed maturity securities, Estimated Fair Value	60,336	39,369
Level 2 Inputs | Other asset-backed securities
Fair value of financial instruments
Fixed maturity securities, Estimated Fair Value	61,076	72,613
Level 2 Inputs | Corporate and other securities
Fair value of financial instruments
Fixed maturity securities, Estimated Fair Value	475,452	432,403
Level 3 Inputs
Fair value of financial instruments
Marketable Securities, Total	680	680
Level 3 Inputs | Equity securities
Fair value of financial instruments
Equity securities, Estimated Fair Value	680	680
Total
Fair value of financial instruments
Marketable Securities, Total	1,278,035	1,259,763
Total | U.S. Treasury securities
Fair value of financial instruments
Fixed maturity securities, Estimated Fair Value	1,777	1,791
Total | Obligations of states and political subdivisions
Fair value of financial instruments
Fixed maturity securities, Estimated Fair Value	266,198	403,084
Total | Residential mortgage-backed securities
Fair value of financial instruments
Fixed maturity securities, Estimated Fair Value	297,023	222,766
Total | Commercial mortgage-backed securities
Fair value of financial instruments
Fixed maturity securities, Estimated Fair Value	60,336	39,369
Total | Other asset-backed securities
Fair value of financial instruments
Fixed maturity securities, Estimated Fair Value	61,076	72,613
Total | Corporate and other securities
Fair value of financial instruments
Fixed maturity securities, Estimated Fair Value	475,452	432,403
Total | Equity securities
Fair value of financial instruments
Equity securities, Estimated Fair Value	$ 116,173	$ 87,737

Fair Value of Financial Instr_4

Fair Value of Financial Instruments Transfers between Levels (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Transfers between Levels
Transfers from Level 1 to Level 2	$ 0	$ 0
Transfers from Level 2 to Level 1	0	0
Changes in the Company's Level 3 fair value securities
Balance at beginning of period	680	678	$ 547
Purchases		2	131
Transfers into Level 3	0	0	0
Transfers out of Level 3	0	0	0
Balance at end of period	$ 680	680	$ 678
Period of advance notice before quarter end	45 days
Accounting Standards Update 2015-07
Changes in the Company's Level 3 fair value securities
Alternative investments fair value	$ 31,838	$ 24,130

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 Results of Operations
Total revenue	$ 202,901	$ 215,907	$ 207,970	$ 209,719	$ 213,565	$ 212,529	$ 208,249	$ 204,770	$ 836,497	$ 839,113	$ 819,822
Net income	$ 18,346	$ 28,908	$ 26,816	$ 9,125	$ 11,309	$ 17,954	$ 21,105	$ 12,019	$ 83,195	$ 62,387	$ 64,585
Earnings per weighted average common share:
Basic (in dollars per share)	$ 1.21	$ 1.90	$ 1.77	$ 0.60	$ 0.73	$ 1.19	$ 1.40	$ 0.80	$ 5.48	$ 4.13	$ 4.29
Diluted (in dollars per share)	1.19	1.88	1.75	0.60	0.72	1.18	1.39	0.79	5.43	4.10	4.27
Cash dividends paid per common share (in dollars per share)	$ 0.80	$ 0.80	$ 0.80	$ 0.80	$ 0.80	$ 0.80	$ 0.70	$ 0.70	$ 3.20	$ 3	$ 2.80

Related Party Transactions (Det

Related Party Transactions (Details)	12 Months Ended
	Dec. 31, 2012item
Related Party Transactions
Number of loans in which the entity participated as lender	2

Schedule I - Summary of Inves_2

Schedule I - Summary of Investments - Other than Investments in Related Parties (Details) $ in Thousands	Dec. 31, 2018USD ($)
Summary of investments - other than investments in related parties
Cost or Amortized Cost	$ 1,341,842
Estimated Fair Value	1,333,354
Amount at which shown in the Balance Sheet	1,333,354
Total fixed maturities
Summary of investments - other than investments in related parties
Cost or Amortized Cost	1,175,413
Estimated Fair Value	1,161,862
Amount at which shown in the Balance Sheet	1,161,862
U.S. government and government agencies and authorities
Summary of investments - other than investments in related parties
Cost or Amortized Cost	302,194
Estimated Fair Value	298,800
Amount at which shown in the Balance Sheet	298,800
Obligations of states and political subdivisions
Summary of investments - other than investments in related parties
Cost or Amortized Cost	262,772
Estimated Fair Value	266,198
Amount at which shown in the Balance Sheet	266,198
Corporate and other securities
Summary of investments - other than investments in related parties
Cost or Amortized Cost	610,447
Estimated Fair Value	596,864
Amount at which shown in the Balance Sheet	596,864
Total equity securities
Summary of investments - other than investments in related parties
Cost or Amortized Cost	142,948
Estimated Fair Value	148,011
Amount at which shown in the Balance Sheet	148,011
Industrial, miscellaneous and all other
Summary of investments - other than investments in related parties
Cost or Amortized Cost	142,948
Estimated Fair Value	148,011
Amount at which shown in the Balance Sheet	148,011
Other invested assets
Summary of investments - other than investments in related parties
Cost or Amortized Cost	23,481
Estimated Fair Value	23,481
Amount at which shown in the Balance Sheet	$ 23,481

Schedule II - Condensed Finan_2

Schedule II - Condensed Financial Information of the Registrant (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Assets
Investments in consolidated affiliates	$ 23,481	$ 23,162
Other	19,522	16,219
Total assets	1,856,240	1,807,279
Liabilities
Total liabilities	1,137,596	1,106,263
Shareholders' equity	718,644	701,016	$ 670,726	$ 644,499
Total liabilities and shareholders' equity	1,856,240	1,807,279
Registrant
Assets
Investments in consolidated affiliates	720,721	702,661
Other	69	9
Total assets	720,790	702,670
Liabilities
Accounts payable and other liabilities	2,146	1,654
Total liabilities	2,146	1,654
Shareholders' equity	718,644	701,016
Total liabilities and shareholders' equity	$ 720,790	$ 702,670

Schedule II - Condensed Finan_3

Schedule II - Condensed Financial Information of the Registrant Comprehensive Income (Detail) - 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
Condensed Statements of Income and Comprehensive Income
Revenues	$ 202,901	$ 215,907	$ 207,970	$ 209,719	$ 213,565	$ 212,529	$ 208,249	$ 204,770	$ 836,497	$ 839,113	$ 819,822
Expenses									732,246	752,413	726,540
Net income	$ 18,346	$ 28,908	$ 26,816	$ 9,125	$ 11,309	$ 17,954	$ 21,105	$ 12,019	83,195	62,387	64,585
Other comprehensive (loss) income, net of tax									(22,816)	8,426	(621)
Comprehensive income									60,379	70,813	63,964
Registrant
Condensed Statements of Income and Comprehensive Income
Expenses									1,695	1,494	1,406
Net loss									(1,695)	(1,494)	(1,406)
Earnings from consolidated subsidiaries									84,890	63,881	65,991
Net income									83,195	62,387	64,585
Other comprehensive (loss) income, net of tax									(22,816)	8,426	(621)
Comprehensive income									$ 60,379	$ 70,813	$ 63,964

Schedule II - Condensed Finan_4

Schedule II - Condensed Financial Information of the Registrant Cash Flow (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
Condensed Statements of Cash Flows
Net income	$ 18,346	$ 28,908	$ 26,816	$ 9,125	$ 11,309	$ 17,954	$ 21,105	$ 12,019	$ 83,195	$ 62,387	$ 64,585
Adjustments to reconcile net income to net cash provided by operating activities:
Earnings from consolidated subsidiaries									(1,182)	(1,016)	(949)
Changes in assets and liabilities:
Other assets									2,565	(5,400)	348
Accounts payable and accrued liabilities									10,678	(6,333)	14,068
Net cash provided by operating activities									127,691	82,040	98,824
Proceeds from exercise of stock options											257
Dividends paid									(48,813)	(45,460)	(42,265)
Net cash used for financing activities									(48,813)	(45,460)	(42,014)
Net (decrease) increase in cash and cash equivalents									(4,126)	21,656	(27,442)
Cash and cash equivalents at beginning of year				$ 41,708				$ 20,052	41,708	20,052	47,494
Cash and cash equivalents at end of period	$ 37,582				$ 41,708				37,582	41,708	20,052
Registrant
Condensed Statements of Cash Flows
Net income									83,195	62,387	64,585
Adjustments to reconcile net income to net cash provided by operating activities:
Earnings from consolidated subsidiaries									(84,890)	(63,881)	(65,991)
Dividends received from consolidated subsidiaries									45,271	41,826	39,156
Amortization of restricted stock expense									5,789	5,367	4,312
Changes in assets and liabilities:
Other assets									(60)	15	63
Accounts payable and accrued liabilities									(492)	(254)	(111)
Net cash provided by operating activities									48,813	45,460	42,014
Proceeds from exercise of stock options											257
Excess tax benefit from stock options exercised											(6)
Dividends paid									(48,813)	(45,460)	(42,265)
Net cash used for financing activities									$ (48,813)	$ (45,460)	$ (42,014)

Schedule III - Supplementary _2

Schedule III - Supplementary Insurance Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Schedule III - Supplementary Insurance Information
Deferred Policy Acquisition Costs	$ 73,355	$ 72,202	$ 70,996
Future Policy Benefits, Losses, Claims and Loss Expenses	584,719	574,054	560,321
Unearned Premiums	435,380	428,257	418,033
Earned Premiums	781,587	774,420	755,760
Premium Revenue	781,587	774,420	755,760
Net Investment Income	43,788	38,758	38,413
Benefits, Claims, Losses, and Settlement Expenses	485,513	503,887	493,433
Amortization of Deferred Policy Acquisition Costs	146,601	144,703	141,540
Other Operating Expenses	100,042	103,733	91,477
Premiums Written	$ 786,912	$ 781,054	$ 766,470

Schedule IV - Reinsurance (Deta

Schedule IV - Reinsurance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Insurance Earned Premiums
Gross Amount	$ 836,759	$ 818,804	$ 796,366
Ceded to Other Companies	87,368	76,886	70,150
Assumed from Other Companies	32,196	32,502	29,544
Net Amount	781,587	774,420	755,760
Property and Casualty Insurance
Insurance Earned Premiums
Gross Amount	836,759	818,804	796,366
Ceded to Other Companies	87,368	76,886	70,150
Assumed from Other Companies	32,196	32,502	29,544
Net Amount	$ 781,587	$ 774,420	$ 755,760
Percentage of Amount Assumed to Net	4.10%	4.20%	3.90%

Schedule V - Valuation and Qu_2

Schedule V - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Movement in valuation and qualifying accounts
Balance at Beginning of Period	$ 414	$ 435	$ 425
Charged to Costs and Expenses	1,338	1,203	1,162
Deductions	1,270	1,224	1,152
Balance at End of Period	$ 482	$ 414	$ 435

Schedule VI - Supplemental In_2

Schedule VI - Supplemental Information Concerning Property and Casualty Insurance Operations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Supplemental Information Concerning Property and Casualty Insurance Operations
Earned Premiums	$ 781,587	$ 774,420	$ 755,760
Current year	542,001	545,671	538,881
Prior year	(56,488)	(41,784)	(45,448)
Consolidated Property & Casualty Subsidiaries
Supplemental Information Concerning Property and Casualty Insurance Operations
Deferred Policy Acquisition Costs	73,355	72,202	70,996
Reserves for Unpaid Claims and Claims Adjustment Expenses	584,719	574,054	560,321
Unearned Premiums	435,380	428,257	418,033
Earned Premiums	781,587	774,420	755,760
Net Investment Income	43,788	38,758	38,413
Current year	542,001	545,671	538,881
Prior year	(56,488)	(41,784)	(45,448)
Amortization of Deferred Policy Acquisition Costs	146,601	144,703	141,540
Paid Claims and Claims Adjustment Expenses	500,161	489,515	502,552
Premiums Written	$ 786,912	$ 781,054	$ 766,470