Document_and_Entity_Informatio
Document and Entity Information Document | 9 Months Ended | |
Sep. 30, 2013 | Oct. 31, 2013 | |
Document Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Entity Registrant Name | 'INFINITY PROPERTY & CASUALTY CORP | ' |
Entity Central Index Key | '0001195933 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 11,485,735 |
Consolidated_Statements_Of_Ear
Consolidated Statements Of Earnings (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Gain (Loss) on Disposition of Stock in Subsidiary | $0 | $2,922 | $0 | $2,922 |
Increase Decrease Gain on Sale of Subsidiaries | -100.00% | ' | -100.00% | ' |
Revenues: | ' | ' | ' | ' |
Earned premium | 327,078 | 301,463 | 976,882 | 872,730 |
Percent change, Earned premium | 8.50% | ' | 11.90% | ' |
Net investment income | 8,141 | 9,018 | 25,101 | 28,364 |
Percent change, Net investment Income | -9.70% | ' | -11.50% | ' |
Net realized gains on investments | -546 | 268 | 4,072 | 2,673 |
Percent change, Net realized gains on investments | -303.40% | ' | 52.30% | ' |
Other income | 289 | 63 | 414 | 430 |
Percent change, Other income | 358.90% | ' | -3.80% | ' |
Total revenues | 334,963 | 313,734 | 1,006,469 | 907,119 |
Percent change, Total revenues | 6.80% | ' | 11.00% | ' |
Costs and Expenses: | ' | ' | ' | ' |
Losses and loss adjustment expenses | 255,240 | 238,261 | 762,690 | 683,946 |
Percent change, Losses and loss adjustment expenses | 7.10% | ' | 11.50% | ' |
Commissions and other underwriting expenses | 64,325 | 63,353 | 193,684 | 186,356 |
Percent change, Commissions and other underwriting expenses | 1.50% | ' | 3.90% | ' |
Interest expense | 3,458 | 3,199 | 10,456 | 8,604 |
Percent change, Interest expense | 8.10% | ' | 21.50% | ' |
Corporate general and administrative expenses | 1,888 | 1,750 | 5,960 | 5,850 |
Percent change, Corporate general and administrative expenses | 7.90% | ' | 1.90% | ' |
Other expenses | 409 | 585 | 1,802 | 931 |
Percent change, Other expenses | -30.10% | ' | 93.50% | ' |
Total costs and expenses | 325,320 | 307,148 | 974,592 | 885,687 |
Percent change, Total costs and expenses | 5.90% | ' | 10.00% | ' |
Earnings before income taxes | 9,643 | 6,586 | 31,877 | 21,431 |
Percent change, Earnings before income taxes | 46.40% | ' | 48.70% | ' |
Provision for income taxes | 2,448 | 1,432 | 8,612 | 5,029 |
Percent change, Provision for income taxes | 70.90% | ' | 71.20% | ' |
Net Earnings | 7,195 | 5,154 | 23,265 | 16,402 |
Percent change, Net Earnings | 39.60% | ' | 41.80% | ' |
Net Earnings Per Common Share: | ' | ' | ' | ' |
Basic (usd per share) | $0.63 | $0.44 | $2.03 | $1.40 |
Percent change, Basic | 43.20% | ' | 45.00% | ' |
Diluted (usd per share) | $0.62 | $0.43 | $1.99 | $1.37 |
Percent change, Diluted | 44.20% | ' | 45.30% | ' |
Average Number of Common Shares: | ' | ' | ' | ' |
Basic (shares) | 11,421 | 11,631 | 11,463 | 11,689 |
Percent change, Basic | -1.80% | ' | -1.90% | ' |
Diluted (shares) | 11,622 | 11,893 | 11,670 | 11,959 |
Percent change, Diluted | -2.30% | ' | -2.40% | ' |
Cash Dividends per Common Share | $0.30 | $0.23 | $0.90 | $0.68 |
Percent change, Cash Dividends per Common Share | 33.30% | ' | 33.30% | ' |
Net realized gains before impairment losses | 273 | 479 | 5,262 | 3,949 |
Percent change, Net realized gains before impairment losses | -43.00% | ' | 33.20% | ' |
Total other-than-temporary impairment (OTTI) losses | -1,547 | -211 | -2,105 | -1,245 |
Percent change, Total other-than-temporary impairment (OTTI) losses | 632.70% | ' | 69.10% | ' |
Non-credit portion in other comprehensive income | 728 | 0 | 915 | 1 |
OTTI losses reclassified from other comprehensive income | 0 | 0 | 0 | -32 |
Percent change, OTTI losses reclassified from other comprehensive income | 0.00% | ' | -100.00% | ' |
Net impairment losses recognized in earnings | -819 | -211 | -1,190 | -1,277 |
Percent change, Net impairment losses recognized in earnings | 287.80% | ' | -6.80% | ' |
Total net realized gains on investments | ($546) | $268 | $4,072 | $2,673 |
Percent change,Total net realized gains on investments | -303.40% | ' | 52.30% | ' |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net earnings | $7,195 | $5,154 | $23,265 | $16,402 |
Other comprehensive income before tax: | ' | ' | ' | ' |
Net change in postretirement benefit liability | 50 | -6 | 150 | -17 |
Unrealized gains on investments: | ' | ' | ' | ' |
Unrealized holding gains arising during the period | 9,847 | 10,662 | -17,463 | 20,780 |
Less: Reclassification adjustments for gains included in net income | 546 | -268 | -4,072 | -2,673 |
Unrealized gains on investments, net | 10,393 | 10,394 | -21,534 | 18,107 |
Other comprehensive income, before tax | 10,443 | 10,388 | -21,385 | 18,090 |
Effect on other comprehensive income | -3,655 | -3,636 | 7,485 | -6,332 |
Other comprehensive income, net of tax | 6,788 | 6,752 | -13,900 | 11,759 |
Comprehensive income | $13,983 | $11,907 | $9,364 | $28,161 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Investments: | ' | ' |
Fixed maturities – at fair value (amortized cost $1,358,436 and $1,278,051) | $1,372,887 | $1,321,828 |
Equity securities – at fair value (cost $65,657 and $69,992) | 76,561 | 73,106 |
Short-term investments - at fair value (amortized cost $4,068 and $0) | 4,069 | 0 |
Total investments | 1,453,517 | 1,394,934 |
Cash and cash equivalents | 87,257 | 165,182 |
Accrued investment income | 12,097 | 11,926 |
Agents’ balances and premium receivable, net of allowances for doubtful accounts of $15,639 and $16,124 | 461,296 | 427,156 |
Property and equipment, net of accumulated depreciation of $50,685 and $45,339 | 48,078 | 39,301 |
Prepaid reinsurance premium | 3,074 | 2,637 |
Recoverables from reinsurers (includes $112 and $750 on paid losses and LAE) | 14,315 | 14,428 |
Deferred policy acquisition costs | 91,234 | 88,251 |
Current and deferred income taxes | 30,145 | 25,798 |
Receivable for securities sold | 512 | 48,467 |
Other assets | 11,583 | 10,236 |
Goodwill | 75,275 | 75,275 |
Total assets | 2,288,385 | 2,303,593 |
Liabilities: | ' | ' |
Unpaid losses and loss adjustment expenses | 632,860 | 572,894 |
Unearned premium | 580,868 | 538,142 |
Payable to reinsurers | 159 | 137 |
Long-term debt (fair value $284,004 and $288,879) | 275,000 | 275,000 |
Commissions payable | 17,912 | 18,073 |
Payable for securities purchased | 10,737 | 132,440 |
Other liabilities | 121,674 | 110,665 |
Total liabilities | 1,639,211 | 1,647,351 |
Commitments and contingencies (See Note 10) | ' | ' |
Shareholders' equity: | ' | ' |
Common stock, no par value (50,000,000 shares authorized; 21,567,688 and 21,493,354 shares issued) | 21,635 | 21,529 |
Additional paid-in capital | 366,698 | 361,845 |
Retained earnings | 679,088 | 666,199 |
Accumulated other comprehensive income, net of tax | 15,950 | 29,851 |
Treasury stock, at cost (10,076,872 and 9,888,680 shares) | -434,198 | -423,181 |
Total shareholders' equity | 649,174 | 656,242 |
Total liabilities and shareholders' equity | $2,288,385 | $2,303,593 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Fixed maturities, amortized cost | $1,358,436 | $1,278,051 |
Equity securities, cost | 65,657 | 69,992 |
Short term investments, amortized cost | 4,068 | 0 |
Agents' balances and premium receivable, allowance for doubtful accounts | 15,639 | 16,124 |
Property and equipment, accumulated depreciation | 50,685 | 45,339 |
Recoverable from reinsurers, paid losses and loss adjustment expenses | 112 | 750 |
Long-term debt, fair value | $284,004 | $288,879 |
Common stock, par value (usd per share) | $0 | $0 |
Common stock, shares authorized (shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (shares) | 21,567,688 | 21,493,354 |
Treasury stock, shares (shares) | 10,076,872 | 9,888,680 |
Consolidated_Statements_Of_Cha
Consolidated Statements Of Changes In Shareholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss), Net Of Tax | Treasury Stock |
In Thousands, unless otherwise specified | ||||||
Beginning Balance at Dec. 31, 2011 | $661,789 | $21,358 | $355,911 | $652,423 | $35,319 | ($403,221) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net earnings | 16,402 | ' | ' | 16,402 | ' | ' |
Net change in postretirement benefit liability | -11 | ' | ' | ' | -11 | ' |
Change in unrealized gain on investments | 10,784 | ' | ' | ' | 10,784 | ' |
Change in non-credit component of impairment losses on fixed maturities | 986 | ' | ' | ' | 986 | ' |
Comprehensive income | 28,161 | ' | ' | ' | ' | ' |
Dividends paid to common shareholders | -7,929 | ' | ' | -7,929 | ' | ' |
Shares issued and share-based compensation expense, including tax benefit | 4,045 | 98 | 3,947 | ' | ' | ' |
Acquisition of treasury stock | -11,483 | ' | ' | ' | ' | -11,483 |
Ending Balance at Sep. 30, 2012 | 674,584 | 21,456 | 359,858 | 660,896 | 47,077 | -414,704 |
Beginning Balance at Jun. 30, 2012 | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net earnings | 7,917 | ' | ' | 7,917 | ' | ' |
Net change in postretirement benefit liability | -955 | ' | ' | ' | -955 | ' |
Change in unrealized gain on investments | -16,650 | ' | ' | ' | -16,650 | ' |
Change in non-credit component of impairment losses on fixed maturities | 378 | ' | ' | ' | 378 | ' |
Comprehensive income | -9,309 | ' | ' | ' | ' | ' |
Dividends paid to common shareholders | -2,615 | ' | ' | -2,615 | ' | ' |
Shares issued and share-based compensation expense, including tax benefit | 2,060 | 73 | 1,987 | ' | ' | ' |
Acquisition of treasury stock | -8,478 | ' | ' | ' | ' | -8,478 |
Ending Balance at Dec. 31, 2012 | 656,242 | 21,529 | 361,845 | 666,199 | 29,851 | -423,181 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net earnings | 23,265 | ' | ' | 23,265 | ' | ' |
Net change in postretirement benefit liability | 97 | ' | ' | ' | 97 | ' |
Change in unrealized gain on investments | -13,770 | ' | ' | ' | -13,770 | ' |
Change in non-credit component of impairment losses on fixed maturities | -228 | ' | ' | ' | -228 | ' |
Comprehensive income | 9,364 | ' | ' | ' | ' | ' |
Dividends paid to common shareholders | -10,376 | ' | ' | -10,376 | ' | ' |
Shares issued and share-based compensation expense, including tax benefit | 4,960 | 106 | 4,854 | ' | ' | ' |
Acquisition of treasury stock | -11,017 | ' | ' | ' | ' | -11,017 |
Ending Balance at Sep. 30, 2013 | $649,174 | $21,635 | $366,698 | $679,088 | $15,950 | ($434,198) |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Operating Activities: | ' | ' | ' | ' |
Net earnings | $7,195 | $5,154 | $23,265 | $16,402 |
Adjustments: | ' | ' | ' | ' |
Depreciation | 2,259 | 2,356 | 6,312 | 6,442 |
Amortization | 5,357 | 2,580 | 15,072 | 7,137 |
Net realized gains on investments | 546 | -268 | -4,072 | -2,673 |
(Gain) loss on disposal of property and equipment | -121 | 30 | -120 | 44 |
Gain (Loss) on Disposition of Stock in Subsidiary | 0 | 2,922 | 0 | 2,922 |
Share-based compensation expense | 956 | 671 | 3,043 | 2,817 |
Activity related to rabbi trust | 50 | 37 | 75 | 72 |
Decrease (increase) in accrued investment income | 687 | 101 | -171 | -1 |
Decrease (increase) in agents’ balances and premium receivable | -4,849 | -18,250 | -34,140 | -62,713 |
Decrease (increase) in reinsurance receivables | 765 | -1,108 | -323 | -1,145 |
Decrease (increase) in deferred policy acquisition costs | 1,034 | -2,463 | -2,983 | -12,421 |
Decrease (increase) in other assets | -2,635 | -2,685 | 1,842 | -8,004 |
Increase (decrease) in unpaid losses and loss adjustment expenses | 20,857 | 13,446 | 59,966 | 48,915 |
Increase (decrease) in unearned premium | -927 | 21,645 | 42,726 | 83,220 |
Increase (decrease) in payable to reinsurers | 159 | 0 | 23 | -45 |
Increase (decrease) in other liabilities | 11,000 | -1,099 | 11,205 | -2,096 |
Net cash provided by operating activities | 42,334 | 17,225 | 121,720 | 73,029 |
Investing Activities: | ' | ' | ' | ' |
Purchases of fixed maturities | -148,160 | -89,084 | -638,575 | -344,520 |
Purchases of equity securities | -1,000 | 0 | -2,100 | 0 |
Purchases of short-term investments | -575 | 0 | -4,191 | 0 |
Purchases of property and equipment | -5,908 | -944 | -15,139 | -8,529 |
Maturities and redemptions of fixed maturities | 46,100 | 62,178 | 149,382 | 144,171 |
Proceeds from sale of fixed maturities | 42,909 | 9,968 | 323,845 | 133,510 |
Proceeds from sale of equity securities | ' | ' | 7,244 | 0 |
Proceeds from sale of short-term investments | 125 | 0 | 125 | 0 |
Proceeds from Sale of Property, Plant, and Equipment | 171 | 11 | 171 | 11 |
Net cash used in investing activities | -66,338 | -17,872 | -179,239 | -75,359 |
Financing Activities: | ' | ' | ' | ' |
Proceeds from Issuance of Long-term Debt | 0 | -273,213 | 0 | -273,213 |
Proceeds from stock options exercised and employee stock purchases, including tax benefit | 1,189 | 396 | 1,917 | 1,229 |
Principal payments under capital lease obligation | -133 | 0 | -582 | 0 |
Increase (Decrease) in Restricted Cash | 0 | 209,879 | 0 | 209,879 |
Acquisition of treasury stock | -2,208 | -3,194 | -11,365 | -11,497 |
Dividends paid to shareholders | -3,448 | -2,629 | -10,376 | -7,929 |
Net cash (used in) provided by financing activities | -4,600 | 57,906 | -20,406 | 45,136 |
Net (decrease) increase in cash and cash equivalents | -28,604 | 57,260 | -77,925 | 42,807 |
Cash and cash equivalents at beginning of period | ' | ' | 165,182 | 83,767 |
Cash and cash equivalents at end of period | $87,257 | $126,574 | $87,257 | $126,574 |
Reporting_And_Accounting_Polic
Reporting And Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Reporting And Accounting Policies | ' |
Reporting and Accounting Policies | |
Nature of Operations | |
We are a holding company that, through subsidiaries, provides personal automobile insurance with a concentration on nonstandard auto insurance. Although licensed to write insurance in all 50 states and the District of Columbia, we focus on select states that we believe offer the greatest opportunity for premium growth and profitability. | |
Basis of Consolidation and Reporting | |
The accompanying consolidated financial statements are unaudited and should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2012. This Quarterly Report on Form 10-Q, including the Condensed Notes to Consolidated Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations, focuses on our financial performance since the beginning of the year. | |
These financial statements reflect certain adjustments necessary for a fair presentation of our results of operations and financial position. Such adjustments consist of normal, recurring accruals recorded to match expenses with their related revenue streams and the elimination of all significant inter-company transactions and balances. | |
We have evaluated events that occurred after September 30, 2013 for recognition or disclosure in our financial statements and the notes to the financial statements. | |
Schedules may not foot due to rounding. | |
Estimates | |
We based certain accounts and balances within these financial statements upon our estimates and assumptions. The amount of reserves for claims not yet paid, for example, is an item that we can only record by estimation. Unrealized capital gains and losses on investments are subject to market fluctuations, and we use judgment in the determination of whether unrealized losses on certain securities are temporary or other-than-temporary. Should actual results differ significantly from these estimates, the effect on our results of operations could be material. The results of operations for the periods presented may not be indicative of our results for the entire year. | |
Recently Adopted Accounting Standards | |
Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income | |
In February 2013, the FASB issued guidance requiring expanded disclosures about amounts reclassified out of accumulated other comprehensive income (AOCI). Entities are required to present reclassifications by component when reporting changes in AOCI balances. The guidance requires the presentation of significant amounts reclassified out of AOCI by income statement line item. We adopted the new guidance as of March 31, 2013. The new guidance affects disclosures only and therefore had no impact on our results of operations or financial position. |
Computation_Of_Earnings_Per_Sh
Computation Of Earnings Per Share | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Computation of Net Earnings per Share | ' | |||||||||||||||
Computation of Net Earnings per Share | ||||||||||||||||
The following table illustrates our computations of basic and diluted net earnings per common share (in thousands, except per | ||||||||||||||||
share figures): | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net earnings | $ | 7,195 | $ | 5,154 | $ | 23,265 | $ | 16,402 | ||||||||
Average basic shares outstanding | 11,421 | 11,631 | 11,463 | 11,689 | ||||||||||||
Basic net earnings per share | $ | 0.63 | $ | 0.44 | $ | 2.03 | $ | 1.4 | ||||||||
Average basic shares outstanding | 11,421 | 11,631 | 11,463 | 11,689 | ||||||||||||
Restricted stock not yet vested | 49 | 32 | 44 | 25 | ||||||||||||
Dilutive effect of assumed option exercises | 26 | 101 | 31 | 103 | ||||||||||||
Dilutive effect of Performance Share Plan | 127 | 129 | 132 | 141 | ||||||||||||
Average diluted shares outstanding | 11,622 | 11,893 | 11,670 | 11,959 | ||||||||||||
Diluted net earnings per share | $ | 0.62 | $ | 0.43 | $ | 1.99 | $ | 1.37 | ||||||||
Fair_Value
Fair Value | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||
Fair Value | ' | |||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||
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 following tables present, for each of the fair value hierarchy levels, our assets and liabilities for which we report fair value on a recurring basis (in thousands): | ||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||
September 30, 2013 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 87,257 | $ | 0 | $ | 0 | $ | 87,257 | ||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||
U.S. government | 76,015 | 177 | 2,942 | 79,134 | ||||||||||||||||||||||||
Government-sponsored entities | 0 | 8,530 | 0 | 8,530 | ||||||||||||||||||||||||
State and municipal | 0 | 472,106 | 0 | 472,106 | ||||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||
Residential | 0 | 292,586 | 0 | 292,586 | ||||||||||||||||||||||||
Commercial | 0 | 37,593 | 0 | 37,593 | ||||||||||||||||||||||||
Total mortgage-backed securities | $ | 0 | $ | 330,180 | $ | 0 | $ | 330,180 | ||||||||||||||||||||
Collateralized mortgage obligations | 0 | 9,920 | 0 | 9,920 | ||||||||||||||||||||||||
Asset-backed securities | 0 | 83,857 | 0 | 83,857 | ||||||||||||||||||||||||
Corporates | 0 | 381,302 | 7,858 | 389,160 | ||||||||||||||||||||||||
Total fixed maturities | $ | 76,015 | $ | 1,286,072 | $ | 10,800 | $ | 1,372,887 | ||||||||||||||||||||
Equity securities | 76,561 | 0 | 0 | 76,561 | ||||||||||||||||||||||||
Short-term investments | 4,069 | 0 | 0 | 4,069 | ||||||||||||||||||||||||
Total cash and investments | $ | 243,902 | $ | 1,286,072 | $ | 10,800 | $ | 1,540,774 | ||||||||||||||||||||
Percentage of total cash and investments | 15.8 | % | 83.5 | % | 0.7 | % | 100 | % | ||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||
December 31, 2012 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 165,182 | $ | 0 | $ | 0 | $ | 165,182 | ||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||
U.S. government | 81,529 | 296 | 3,712 | 85,537 | ||||||||||||||||||||||||
Government-sponsored entities | 0 | 22,140 | 0 | 22,140 | ||||||||||||||||||||||||
State and municipal | 0 | 457,113 | 0 | 457,113 | ||||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||
Residential | 0 | 281,907 | 0 | 281,907 | ||||||||||||||||||||||||
Commercial | 0 | 13,768 | 0 | 13,768 | ||||||||||||||||||||||||
Total mortgage-backed securities | $ | 0 | $ | 295,675 | $ | 0 | $ | 295,675 | ||||||||||||||||||||
Collateralized mortgage obligations | 0 | 19,307 | 0 | 19,307 | ||||||||||||||||||||||||
Asset-backed securities | 0 | 79,257 | 0 | 79,257 | ||||||||||||||||||||||||
Corporates | 0 | 353,697 | 9,101 | 362,797 | ||||||||||||||||||||||||
Total fixed maturities | $ | 81,529 | $ | 1,227,486 | $ | 12,813 | $ | 1,321,828 | ||||||||||||||||||||
Equity securities | 73,106 | 0 | 0 | 73,106 | ||||||||||||||||||||||||
Total cash and investments | $ | 319,817 | $ | 1,227,486 | $ | 12,813 | $ | 1,560,116 | ||||||||||||||||||||
Percentage of total cash and investments | 20.5 | % | 78.7 | % | 0.8 | % | 100 | % | ||||||||||||||||||||
We do not report our long-term debt at fair value in the Consolidated Balance Sheets. The $284.0 million and $288.9 million fair value of our long-term debt at September 30, 2013 and December 31, 2012, respectively, would be included in Level 2 of the fair value hierarchy if it were reported at fair value. | ||||||||||||||||||||||||||||
Level 1 includes cash and cash equivalents, U.S. Treasury securities, an exchange-traded fund and equities invested in a rabbi trust. Level 2 includes securities whose fair value was determined using observable market inputs. Level 3 securities are comprised of (i) securities for which there is no active or inactive market for similar instruments, (ii) securities whose fair value is determined based on unobservable inputs and (iii) securities, other than those backed by the U.S. Government, that are not rated by a nationally recognized statistical rating organization ("NRSRO"). We recognize transfers between levels at the beginning of the reporting period. | ||||||||||||||||||||||||||||
A third party nationally recognized pricing service provides the fair value of securities in Level 2. We review the third party pricing methodologies quarterly and test for significant differences between the market price used to value the security and recent sales activity. | ||||||||||||||||||||||||||||
The following tables present the progression in the Level 3 fair value category (in thousands): | ||||||||||||||||||||||||||||
Three months ended September 30, 2013 | ||||||||||||||||||||||||||||
U.S. | State and | Mortgage- | Collateralized | Corporates | ABS | Total | ||||||||||||||||||||||
Government | Municipal | Backed | Mortgage | |||||||||||||||||||||||||
Securities | Obligations | |||||||||||||||||||||||||||
Balance at beginning of period | $ | 3,124 | $ | 0 | $ | 0 | $ | 0 | $ | 8,055 | $ | 0 | $ | 11,179 | ||||||||||||||
Total gains or (losses), unrealized or realized | ||||||||||||||||||||||||||||
Included in net earnings | (7 | ) | 0 | 0 | 0 | 22 | 0 | 15 | ||||||||||||||||||||
Included in other comprehensive income | (66 | ) | 0 | 0 | 0 | (72 | ) | 0 | (138 | ) | ||||||||||||||||||
Settlements | (109 | ) | 0 | 0 | 0 | (147 | ) | 0 | (255 | ) | ||||||||||||||||||
Balance at end of period | $ | 2,942 | $ | 0 | $ | 0 | $ | 0 | $ | 7,858 | $ | 0 | $ | 10,800 | ||||||||||||||
Three months ended September 30, 2012 | ||||||||||||||||||||||||||||
U.S. | State and | Mortgage- | Collateralized | Corporates | ABS | Total | ||||||||||||||||||||||
Government | Municipal | Backed | Mortgage | |||||||||||||||||||||||||
Securities | Obligations | |||||||||||||||||||||||||||
Balance at beginning of period | $ | 3,899 | $ | 2,750 | $ | 7,188 | $ | 486 | $ | 9,966 | $ | 1,361 | $ | 25,651 | ||||||||||||||
Total gains or (losses), unrealized or realized | ||||||||||||||||||||||||||||
Included in net earnings | (1 | ) | (1 | ) | 0 | (75 | ) | 61 | 0 | (16 | ) | |||||||||||||||||
Included in other comprehensive income | (22 | ) | 30 | 0 | 89 | (32 | ) | 0 | 65 | |||||||||||||||||||
Purchases | 0 | 4,002 | 0 | 0 | 0 | 2,645 | 6,647 | |||||||||||||||||||||
Sales | 0 | 0 | 0 | (483 | ) | (1 | ) | 0 | (485 | ) | ||||||||||||||||||
Settlements | (141 | ) | (2,750 | ) | 0 | (18 | ) | (129 | ) | 0 | (3,039 | ) | ||||||||||||||||
Transfers in | 0 | 0 | 0 | 0 | 1,053 | 0 | 1,053 | |||||||||||||||||||||
Transfers out | 0 | 0 | (7,188 | ) | 0 | 0 | (1,361 | ) | (8,549 | ) | ||||||||||||||||||
Balance at end of period | $ | 3,735 | $ | 4,031 | $ | 0 | $ | 0 | $ | 10,918 | $ | 2,645 | $ | 21,329 | ||||||||||||||
Nine months ended September 30, 2013 | ||||||||||||||||||||||||||||
U.S. | State and | Mortgage- | Collateralized | Corporates | ABS | Total | ||||||||||||||||||||||
Government | Municipal | Backed | Mortgage | |||||||||||||||||||||||||
Securities | Obligations | |||||||||||||||||||||||||||
Balance at beginning of period | $ | 3,712 | $ | 0 | $ | 0 | $ | 0 | $ | 9,101 | $ | 0 | $ | 12,813 | ||||||||||||||
Total gains or (losses), unrealized or realized | ||||||||||||||||||||||||||||
Included in net earnings | (39 | ) | 0 | 0 | 0 | 494 | 0 | 455 | ||||||||||||||||||||
Included in other comprehensive income | (137 | ) | 0 | 0 | 0 | (393 | ) | 0 | (530 | ) | ||||||||||||||||||
Settlements | (594 | ) | 0 | 0 | 0 | (1,343 | ) | 0 | (1,938 | ) | ||||||||||||||||||
Balance at end of period | $ | 2,942 | $ | 0 | $ | 0 | $ | 0 | $ | 7,858 | $ | 0 | $ | 10,800 | ||||||||||||||
Nine months ended September 30, 2012 | ||||||||||||||||||||||||||||
U.S. | State and | Mortgage- | Collateralized | Corporates | ABS | Total | ||||||||||||||||||||||
Government | Municipal | Backed | Mortgage | |||||||||||||||||||||||||
Securities | Obligations | |||||||||||||||||||||||||||
Balance at beginning of period | $ | 4,438 | $ | 0 | $ | 0 | $ | 509 | $ | 10,426 | $ | 0 | $ | 15,374 | ||||||||||||||
Total gains or (losses), unrealized or realized | ||||||||||||||||||||||||||||
Included in net earnings | (71 | ) | (15 | ) | 0 | (74 | ) | 123 | 0 | (38 | ) | |||||||||||||||||
Included in other comprehensive income | (35 | ) | 14 | 32 | 93 | 201 | 1 | 306 | ||||||||||||||||||||
Purchases | 0 | 4,002 | 7,156 | 0 | 0 | 4,005 | 15,163 | |||||||||||||||||||||
Sales | 0 | 0 | 0 | (483 | ) | (254 | ) | 0 | (737 | ) | ||||||||||||||||||
Settlements | (597 | ) | (2,750 | ) | 0 | (44 | ) | (1,398 | ) | 0 | (4,789 | ) | ||||||||||||||||
Transfers in | 0 | 2,781 | 0 | 0 | 2,889 | 0 | 5,670 | |||||||||||||||||||||
Transfers out | 0 | 0 | (7,188 | ) | 0 | (1,070 | ) | (1,361 | ) | (9,619 | ) | |||||||||||||||||
Balance at end of period | $ | 3,735 | $ | 4,031 | $ | 0 | $ | 0 | $ | 10,918 | $ | 2,645 | $ | 21,329 | ||||||||||||||
Of the $10.8 million fair value of securities in Level 3 at September 30, 2013, which consists of 11 securities, we priced six based on non-binding broker quotes, two prices were provided by our unaffiliated money managers and one security, which was included in Level 3 because it was not rated by a nationally recognized statistical rating organization, was priced by a nationally recognized pricing service. We manually calculated the remaining two securities, which have a combined fair value of $0.7 million. | ||||||||||||||||||||||||||||
Quantitative information about the significant unobservable inputs used in the fair value measurement of these manually priced securities at September 30, 2013 is as follows (in millions): | ||||||||||||||||||||||||||||
Fair Value | Valuation Technique | Unobservable Input | Value Used | |||||||||||||||||||||||||
Corporate bond | $ | 0.1 | Recovery rate1 | Probability of default | 100% | |||||||||||||||||||||||
Corporate bond | 0.6 | Discounted cash flow | Comparable credit rating2 | CCC | ||||||||||||||||||||||||
Total | $ | 0.7 | ||||||||||||||||||||||||||
1 Recovery rate for senior unsecured bonds as indicated in Moody's Investor's Service Annual Default Study: Corporate Default and Recovery Rates, 1920-2012. | ||||||||||||||||||||||||||||
2 This bond is not rated, but is supported by JC Penney Corporation trust assets; therefore a JC Penney comparable bond rating is used. | ||||||||||||||||||||||||||||
The significant unobservable inputs used in the fair value measurement of our manually-priced corporate bonds are a probability of default assumption and an assigned credit rating. Significant changes in either of these inputs in isolation could result in a significant change in fair value measurement for these corporate bonds. Generally, a reduction in probability of default would increase security valuation. A change in the credit rating assumption would change the yield spread associated with that bond, and thus the yield used in discounting the cash flows to arrive at the security’s valuation. | ||||||||||||||||||||||||||||
There were no transfers between Levels 1, 2 or 3 during the nine months ended September 30, 2013. We transfered $8.5 million and $9.6 million of securities from Level 3 to Level 2 during the three and nine months ended September 30, 2012, respectively, because we obtained a price for those securities from a nationally recognized pricing service. | ||||||||||||||||||||||||||||
The gains or losses included in net earnings are included in the line item "Net realized (losses) gains on investments" in the Consolidated Statements of Earnings. We recognize the net gains or losses included in other comprehensive income in the line item "Unrealized gains (losses) on investments, net" in the Consolidated Statements of Comprehensive Income and the line item "Change in unrealized gain on investments" or the line item "Change in non-credit component of impairment losses on fixed maturities" in the Consolidated Statements of Changes in Shareholders’ Equity. | ||||||||||||||||||||||||||||
The following table presents the carrying value and estimated fair value of our financial instruments (in thousands): | ||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||||||||||||||
Value | Value | Value | Value | |||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 87,257 | $ | 87,257 | $ | 165,182 | $ | 165,182 | ||||||||||||||||||||
Investments | ||||||||||||||||||||||||||||
Fixed maturities | 1,372,887 | 1,372,887 | 1,321,828 | 1,321,828 | ||||||||||||||||||||||||
Equity securities | 76,561 | 76,561 | 73,106 | 73,106 | ||||||||||||||||||||||||
Short-term | $ | 4,069 | $ | 4,069 | $ | 0 | $ | 0 | ||||||||||||||||||||
Total cash and investments | $ | 1,540,774 | $ | 1,540,774 | $ | 1,560,116 | $ | 1,560,116 | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||
Long-term debt | $ | 275,000 | $ | 284,004 | $ | 275,000 | $ | 288,879 | ||||||||||||||||||||
See Note 4 to the Consolidated Financial Statements for additional information on investments and Note 5 to the Consolidated Financial Statements for additional information on long-term debt. |
Investments
Investments | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||||||
Investments | ' | |||||||||||||||||||||||||||
Investments | ||||||||||||||||||||||||||||
We consider all fixed maturity and equity securities to be available-for-sale and report them at fair value with the net unrealized gains or losses reported after-tax (net of any valuation allowance) as a component of other comprehensive income. The proceeds from sales of securities for the three and nine months ended September 30, 2013 were $43.0 million and $331.2 million, respectively. The proceeds from sales of securities for the three and nine months ended September 30, 2012 were $10.0 million and $133.5 million, respectively. The proceeds for the nine months ended September 30, 2013 were net of $0.5 million of receivable for securities sold during the third quarter of 2013 that had not settled at September 30, 2013. | ||||||||||||||||||||||||||||
Gains or losses on securities are determined on a specific identification basis. | ||||||||||||||||||||||||||||
Summarized information for the major categories of our investment portfolio follows (in thousands): | ||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | OTTI | ||||||||||||||||||||||||
Cost or Cost | Unrealized | Unrealized | Recognized in | |||||||||||||||||||||||||
Gains | Losses | Accumulated | ||||||||||||||||||||||||||
OCI(1) | ||||||||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||||||
U.S. government | $ | 78,080 | $ | 1,471 | $ | (418 | ) | $ | 79,134 | $ | 0 | |||||||||||||||||
Government-sponsored entities | 8,325 | 205 | 0 | 8,530 | 0 | |||||||||||||||||||||||
State and municipal | 462,758 | 11,163 | (1,814 | ) | 472,106 | (36 | ) | |||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||
Residential | 293,623 | 3,171 | (4,208 | ) | 292,586 | (1,049 | ) | |||||||||||||||||||||
Commercial | 37,927 | 339 | (673 | ) | 37,593 | 0 | ||||||||||||||||||||||
Total mortgage-backed securities | $ | 331,550 | $ | 3,510 | $ | (4,880 | ) | $ | 330,180 | $ | (1,049 | ) | ||||||||||||||||
Collateralized mortgage obligations | 9,624 | 299 | (3 | ) | 9,920 | (166 | ) | |||||||||||||||||||||
Asset-backed securities | 83,813 | 191 | (147 | ) | 83,857 | (60 | ) | |||||||||||||||||||||
Corporates | 384,286 | 9,145 | (4,271 | ) | 389,160 | (652 | ) | |||||||||||||||||||||
Total fixed maturities | $ | 1,358,436 | $ | 25,985 | $ | (11,533 | ) | $ | 1,372,887 | $ | (1,962 | ) | ||||||||||||||||
Equity securities | 65,657 | 10,904 | 0 | 76,561 | 0 | |||||||||||||||||||||||
Short-term investments | 4,068 | 1 | 0 | 4,069 | 0 | |||||||||||||||||||||||
Total | $ | 1,428,160 | $ | 36,891 | $ | (11,533 | ) | $ | 1,453,517 | $ | (1,962 | ) | ||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | OTTI | ||||||||||||||||||||||||
Cost or Cost | Unrealized | Unrealized | Recognized in | |||||||||||||||||||||||||
Gains | Losses | Accumulated | ||||||||||||||||||||||||||
OCI(1) | ||||||||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||||||
U.S. government | $ | 83,320 | $ | 2,225 | $ | (8 | ) | $ | 85,537 | $ | 0 | |||||||||||||||||
Government-sponsored entities | 21,401 | 740 | 0 | 22,140 | 0 | |||||||||||||||||||||||
State and municipal | 438,367 | 19,109 | (364 | ) | 457,113 | (53 | ) | |||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||
Residential | 275,668 | 6,511 | (272 | ) | 281,907 | (292 | ) | |||||||||||||||||||||
Commercial | 13,023 | 749 | (3 | ) | 13,768 | 0 | ||||||||||||||||||||||
Total mortgage-backed securities | $ | 288,691 | $ | 7,259 | $ | (275 | ) | $ | 295,675 | $ | (292 | ) | ||||||||||||||||
Collateralized mortgage obligations | 18,847 | 469 | (9 | ) | 19,307 | (244 | ) | |||||||||||||||||||||
Asset-backed securities | 78,931 | 435 | (109 | ) | 79,257 | (51 | ) | |||||||||||||||||||||
Corporates | 348,494 | 14,807 | (503 | ) | 362,797 | (972 | ) | |||||||||||||||||||||
Total fixed maturities | $ | 1,278,051 | $ | 45,045 | $ | (1,268 | ) | $ | 1,321,828 | $ | (1,612 | ) | ||||||||||||||||
Equity securities | 69,992 | 3,115 | 0 | 73,106 | 0 | |||||||||||||||||||||||
Total | $ | 1,348,042 | $ | 48,160 | $ | (1,268 | ) | $ | 1,394,934 | $ | (1,612 | ) | ||||||||||||||||
(1) The total non-credit portion of OTTI recognized in Accumulated OCI reflecting the original non-credit loss at the time the credit impairment was determined. | ||||||||||||||||||||||||||||
The following tables set forth the amount of unrealized loss by investment category and length of time that individual securities have been in a continuous unrealized loss position (in thousands): | ||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | |||||||||||||||||||||||||||
Number of | Fair | Gross | Unrealized | Number of | Fair | Gross | Unrealized | |||||||||||||||||||||
Securities | Value | Unrealized | Losses as | Securities | Value | Unrealized | Losses as | |||||||||||||||||||||
with | Losses | % of Cost | with | Losses | % of Cost | |||||||||||||||||||||||
Unrealized | Unrealized | |||||||||||||||||||||||||||
Losses | Losses | |||||||||||||||||||||||||||
30-Sep-13 | ||||||||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||||||
U.S. government | 9 | $ | 30,060 | $ | (418 | ) | 1.4 | % | 0 | $ | 0 | $ | 0 | 0 | % | |||||||||||||
Government-sponsored entities | 0 | 0 | 0 | 0 | % | 0 | 0 | 0 | 0 | % | ||||||||||||||||||
State and municipal | 49 | 99,437 | (1,814 | ) | 1.8 | % | 1 | 598 | (1 | ) | 0.1 | % | ||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||
Residential | 166 | 180,786 | (3,916 | ) | 2.1 | % | 5 | 6,106 | (292 | ) | 4.6 | % | ||||||||||||||||
Commercial | 14 | 28,804 | (673 | ) | 2.3 | % | 0 | 0 | 0 | 0 | % | |||||||||||||||||
Total mortgage-backed securities | 180 | $ | 209,591 | $ | (4,589 | ) | 2.1 | % | 5 | $ | 6,106 | $ | (292 | ) | 4.6 | % | ||||||||||||
Collateralized mortgage obligations | 4 | 479 | (2 | ) | 0.5 | % | 1 | 316 | (1 | ) | 0.2 | % | ||||||||||||||||
Asset-backed securities | 21 | 18,360 | (96 | ) | 0.5 | % | 1 | 5,043 | (51 | ) | 1 | % | ||||||||||||||||
Corporates | 119 | 141,612 | (4,244 | ) | 2.9 | % | 1 | 863 | (27 | ) | 3.1 | % | ||||||||||||||||
Total fixed maturities | 382 | $ | 499,538 | $ | (11,162 | ) | 2.2 | % | 9 | $ | 12,925 | $ | (372 | ) | 2.8 | % | ||||||||||||
Equity securities | 0 | 0 | 0 | 0 | % | 0 | 0 | 0 | 0 | % | ||||||||||||||||||
Short-term investments | 0 | 0 | 0 | 0 | % | 0 | 0 | 0 | 0 | % | ||||||||||||||||||
Total | 382 | $ | 499,538 | $ | (11,162 | ) | 2.2 | % | 9 | $ | 12,925 | $ | (372 | ) | 2.8 | % | ||||||||||||
Less than 12 Months | 12 Months or More | |||||||||||||||||||||||||||
Number of | Fair | Gross | Unrealized | Number of | Fair | Gross | Unrealized | |||||||||||||||||||||
Securities | Value | Unrealized | Losses as | Securities | Value | Unrealized | Losses as | |||||||||||||||||||||
with | Losses | % of Cost | with | Losses | % of Cost | |||||||||||||||||||||||
Unrealized | Unrealized | |||||||||||||||||||||||||||
Losses | Losses | |||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||||||
U.S. government | 3 | $ | 11,758 | $ | (8 | ) | 0.1 | % | 0 | $ | 0 | $ | 0 | 0 | % | |||||||||||||
Government-sponsored entities | 0 | 0 | 0 | 0 | % | 0 | 0 | 0 | 0 | % | ||||||||||||||||||
State and municipal | 32 | 52,399 | (364 | ) | 0.7 | % | 0 | 0 | 0 | 0 | % | |||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||
Residential | 42 | 75,927 | (272 | ) | 0.4 | % | 0 | 0 | 0 | 0 | % | |||||||||||||||||
Commercial | 1 | 73 | 0 | 0.6 | % | 1 | 259 | (3 | ) | 1.1 | % | |||||||||||||||||
Total mortgage-backed securities | 43 | $ | 76,000 | $ | (272 | ) | 0.4 | % | 1 | $ | 259 | $ | (3 | ) | 1.1 | % | ||||||||||||
Collateralized mortgage obligations | 2 | 1,264 | (9 | ) | 0.7 | % | 0 | 0 | 0 | 0 | % | |||||||||||||||||
Asset-backed securities | 6 | 11,941 | (57 | ) | 0.5 | % | 2 | 6,138 | (52 | ) | 0.8 | % | ||||||||||||||||
Corporates | 58 | 70,540 | (503 | ) | 0.7 | % | 0 | 0 | 0 | 0 | % | |||||||||||||||||
Total fixed maturities | 144 | $ | 223,903 | $ | (1,213 | ) | 0.5 | % | 3 | $ | 6,397 | $ | (55 | ) | 0.8 | % | ||||||||||||
Equity securities | 0 | 0 | 0 | 0 | % | 0 | 0 | 0 | 0 | % | ||||||||||||||||||
Total | 144 | $ | 223,903 | $ | (1,213 | ) | 0.5 | % | 3 | $ | 6,397 | $ | (55 | ) | 0.8 | % | ||||||||||||
The determination of whether unrealized losses are “other-than-temporary” requires judgment based on subjective as well as objective factors. Factors we considered and resources we used in our determination include: | ||||||||||||||||||||||||||||
• | the intent to sell the security; | |||||||||||||||||||||||||||
• | whether it is more likely than not that there will be a requirement to sell the security before our anticipated recovery; | |||||||||||||||||||||||||||
• | whether the unrealized loss is credit-driven or a result of changes in market interest rates; | |||||||||||||||||||||||||||
• | the length of time the security’s fair value has been below our cost; | |||||||||||||||||||||||||||
• | the extent to which fair value is less than cost basis; | |||||||||||||||||||||||||||
• | historical operating, balance sheet and cash flow data contained in issuer SEC filings; | |||||||||||||||||||||||||||
• | issuer news releases; | |||||||||||||||||||||||||||
• | near-term prospects for improvement in the issuer and/or its industry; | |||||||||||||||||||||||||||
• | industry research and communications with industry specialists and | |||||||||||||||||||||||||||
• | third-party research and credit rating reports. | |||||||||||||||||||||||||||
We regularly evaluate for potential impairment each security position that has any of the following: a fair value of less than 95% of its book value, an unrealized loss that equals or exceeds $100,000 or one or more impairment charges recorded in the past. In addition, we review positions held related to an issuer of a previously impaired security. | ||||||||||||||||||||||||||||
The following table summarizes those securities, excluding the rabbi trust, with unrealized gains or losses: | ||||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||
Number of positions held with unrealized: | ||||||||||||||||||||||||||||
Gains | 630 | 749 | ||||||||||||||||||||||||||
Losses | 391 | 147 | ||||||||||||||||||||||||||
Number of positions held that individually exceed unrealized: | ||||||||||||||||||||||||||||
Gains of $500,000 | 2 | 3 | ||||||||||||||||||||||||||
Losses of $500,000 | 0 | 0 | ||||||||||||||||||||||||||
Percentage of positions held with unrealized: | ||||||||||||||||||||||||||||
Gains that were investment grade | 84 | % | 81 | % | ||||||||||||||||||||||||
Losses that were investment grade | 87 | % | 86 | % | ||||||||||||||||||||||||
Percentage of fair value held with unrealized: | ||||||||||||||||||||||||||||
Gains that were investment grade | 91 | % | 92 | % | ||||||||||||||||||||||||
Losses that were investment grade | 91 | % | 93 | % | ||||||||||||||||||||||||
The following table sets forth the amount of unrealized loss, excluding the rabbi trust, by age and severity at September 30, 2013 (in thousands): | ||||||||||||||||||||||||||||
Age of Unrealized Losses: | Fair Value of | Total Gross | Less Than 5%* | 5% - 10%* | Greater | |||||||||||||||||||||||
Securities with | Unrealized | Than 10%* | ||||||||||||||||||||||||||
Unrealized | Losses | |||||||||||||||||||||||||||
Losses | ||||||||||||||||||||||||||||
Three months or less | $ | 45,222 | $ | (287 | ) | $ | (287 | ) | $ | 0 | $ | 0 | ||||||||||||||||
Four months through six months | 382,813 | (9,210 | ) | (6,680 | ) | (2,497 | ) | (33 | ) | |||||||||||||||||||
Seven months through nine months | 44,195 | (1,040 | ) | (747 | ) | (293 | ) | 0 | ||||||||||||||||||||
Ten months through twelve months | 38,458 | (967 | ) | (545 | ) | (422 | ) | 0 | ||||||||||||||||||||
Greater than twelve months | 1,777 | (29 | ) | (29 | ) | 0 | 0 | |||||||||||||||||||||
Total | $ | 512,464 | $ | (11,533 | ) | $ | (8,288 | ) | $ | (3,212 | ) | $ | (33 | ) | ||||||||||||||
* As a percentage of amortized cost or cost. | ||||||||||||||||||||||||||||
The change in unrealized gains (losses) on marketable securities included the following (in thousands): | ||||||||||||||||||||||||||||
Pre-tax | ||||||||||||||||||||||||||||
Fixed | Equity | Short-Term Investments | Tax | Net | ||||||||||||||||||||||||
Maturities | Securities | Effects | ||||||||||||||||||||||||||
Nine months ended September 30, 2013 | ||||||||||||||||||||||||||||
Unrealized holding gains (losses) on securities arising during the period | $ | (25,913 | ) | $ | 8,449 | $ | 1 | $ | 6,112 | $ | (11,351 | ) | ||||||||||||||||
Realized (gains) losses on securities sold | (4,602 | ) | (660 | ) | 0 | 1,842 | (3,420 | ) | ||||||||||||||||||||
Impairment loss recognized in earnings | 1,190 | 0 | 0 | (416 | ) | 773 | ||||||||||||||||||||||
Change in unrealized gains (losses) on marketable securities, net | $ | (29,325 | ) | $ | 7,790 | $ | 1 | $ | 7,537 | $ | (13,997 | ) | ||||||||||||||||
Nine months ended September 30, 2012 | ||||||||||||||||||||||||||||
Unrealized holding gains (losses) on securities arising during the period | $ | 15,466 | $ | 5,314 | $ | 0 | $ | (7,273 | ) | $ | 13,507 | |||||||||||||||||
Realized (gains) losses on securities sold | (3,949 | ) | 0 | 0 | 1,382 | (2,567 | ) | |||||||||||||||||||||
Impairment loss recognized in earnings(1) | 1,277 | 0 | 0 | (447 | ) | 830 | ||||||||||||||||||||||
Change in unrealized gains (losses) on marketable securities, net | $ | 12,793 | $ | 5,314 | $ | 0 | $ | (6,338 | ) | $ | 11,770 | |||||||||||||||||
(1) Tax excludes valuation reserve | ||||||||||||||||||||||||||||
For fixed maturity securities that are other-than-temporarily impaired, we assess our intent to sell and the likelihood that we will be required to sell the security before recovery of our amortized cost. If a fixed maturity security is considered other-than-temporarily impaired but we do not intend to and are not more than likely to be required to sell the security before our recovery of amortized cost, we separate the amount of the impairment into a credit loss component and the amount due to all other factors ("non-credit component"). The excess of the amortized cost over the present value of the expected cash flows determines the credit loss component of an impairment charge on a fixed maturity security. The present value is determined using the best estimate of cash flows discounted at (1) the effective interest rate implicit at the date of acquisition for non-structured securities or (2) the book yield for structured securities. The techniques and assumptions for determining the best estimate of cash flows vary depending on the type of security. We recognize the credit loss component of an impairment charge in net earnings and the non-credit component in accumulated other comprehensive income. If we intend to sell or will, more likely than not, be required to sell a security, we treat the entire amount of the impairment as a credit loss. | ||||||||||||||||||||||||||||
The following table is a progression of credit losses on fixed maturity securities that were bifurcated between a credit and non-credit component (in thousands): | ||||||||||||||||||||||||||||
Nine months ended September 30, | ||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||
Beginning balance | $ | 487 | $ | 1,728 | ||||||||||||||||||||||||
Additions for: | ||||||||||||||||||||||||||||
Newly impaired securities | 541 | 9 | ||||||||||||||||||||||||||
Reductions for: | ||||||||||||||||||||||||||||
Securities sold and paid down | (189 | ) | (362 | ) | ||||||||||||||||||||||||
Securities that no longer have a non-credit component | 0 | (735 | ) | |||||||||||||||||||||||||
Ending balance | $ | 839 | $ | 640 | ||||||||||||||||||||||||
The table below sets forth the scheduled maturities of fixed maturity securities at September 30, 2013, based on their fair values (in thousands). We report securities that do not have a single maturity date at average maturity. Actual maturities may differ from contractual maturities because certain securities may be called or prepaid by the issuers. | ||||||||||||||||||||||||||||
Fair Value | Amortized | |||||||||||||||||||||||||||
Cost | ||||||||||||||||||||||||||||
Maturity | Securities | Securities | Securities | All Fixed | All Fixed | |||||||||||||||||||||||
with | with | with No | Maturity | Maturity | ||||||||||||||||||||||||
Unrealized | Unrealized | Unrealized | Securities | Securities | ||||||||||||||||||||||||
Gains | Losses | Gains or | ||||||||||||||||||||||||||
Losses | ||||||||||||||||||||||||||||
One year or less | $ | 49,037 | $ | 1,633 | $ | 97 | $ | 50,767 | $ | 51,318 | ||||||||||||||||||
After one year through five years | 452,040 | 138,471 | 2,103 | 592,613 | 492,994 | |||||||||||||||||||||||
After five years through ten years | 156,419 | 122,724 | 630 | 279,772 | 369,437 | |||||||||||||||||||||||
After ten years | 15,435 | 9,742 | 600 | 25,777 | 19,700 | |||||||||||||||||||||||
Mortgage-backed, asset-backed and collateralized mortgage obligations | 179,883 | 239,894 | 4,180 | 423,957 | 424,986 | |||||||||||||||||||||||
Total | $ | 852,814 | $ | 512,464 | $ | 7,609 | $ | 1,372,887 | $ | 1,358,436 | ||||||||||||||||||
LongTerm_Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2013 | |
Debt Disclosure [Abstract] | ' |
Long-Term Debt | ' |
Long-Term Debt | |
In September 2012, we issued $275 million principal of senior notes due September 2022 (the “5.0% Senior Notes”). The 5.0% Senior Notes accrue interest at 5.0%, payable semiannually. At the time we issued the 5.0% Senior Notes, we capitalized $2.2 million of debt issuance costs, which we are amortizing over the term of the 5.0% Senior Notes. We calculated the September 30, 2013 fair value of $284.0 million using a 194 basis point spread to the ten-year U.S. Treasury Note of 2.611%. | |
In August 2011, we renewed our agreement for a $50 million three-year revolving credit facility (the “Credit Agreement”) that requires us to meet certain financial and other covenants. We are currently in compliance with all covenants under the Credit | |
Agreement. At September 30, 2013, there were no borrowings outstanding under the Credit Agreement. |
Income_Taxes
Income Taxes | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||
Income Taxes | ' | |||||||||||||||
Income Taxes | ||||||||||||||||
The following is a reconciliation of income taxes at the statutory rate of 35.0% to the effective provision for income taxes as shown in the Consolidated Statements of Earnings (in thousands): | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Earnings before income taxes | $ | 9,643 | $ | 6,586 | $ | 31,877 | $ | 21,431 | ||||||||
Income taxes at statutory rates | $ | 3,375 | $ | 2,305 | $ | 11,157 | $ | 7,501 | ||||||||
Effect of: | ||||||||||||||||
Dividends-received deduction | (70 | ) | (44 | ) | (249 | ) | (123 | ) | ||||||||
Tax-exempt interest | (664 | ) | (824 | ) | (2,129 | ) | (2,468 | ) | ||||||||
Adjustment to valuation allowance | 0 | 36 | 0 | 117 | ||||||||||||
Other | (193 | ) | (42 | ) | (166 | ) | 3 | |||||||||
Provision for income taxes | $ | 2,448 | $ | 1,432 | $ | 8,612 | $ | 5,029 | ||||||||
GAAP effective tax rate | 25.4 | % | 21.7 | % | 27 | % | 23.5 | % | ||||||||
Additional_Information
Additional Information | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Disclosure Text Block Supplement [Abstract] | ' | |||||||||||||||
Additional Information | ' | |||||||||||||||
Additional Information | ||||||||||||||||
Supplemental Cash Flow Information | ||||||||||||||||
We made the following payments that we do not separately disclose in the Consolidated Statements of Cash Flows (in thousands): | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Income tax payments | $ | 5,100 | $ | 4,000 | $ | 5,100 | $ | 9,000 | ||||||||
Interest payments on debt | 6,875 | 5,363 | 13,826 | 10,725 | ||||||||||||
Negative Cash Book Balances | ||||||||||||||||
Negative cash book balances, included in the line item “Other liabilities” in the Consolidated Balance Sheets, were $55.0 million and $45.4 million, respectively, at September 30, 2013 and December 31, 2012. |
Insurance_Reserves
Insurance Reserves | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Insurance [Abstract] | ' | |||||||||||||||
Insurance Reserves | ' | |||||||||||||||
Insurance Reserves | ||||||||||||||||
Insurance reserves include liabilities for unpaid losses, both known and estimated for incurred but not reported (“IBNR”), and unpaid loss adjustment expenses (“LAE”). The following table provides an analysis of changes in the liability for unpaid losses and LAE on a GAAP basis (in thousands): | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Balance at Beginning of Period | ||||||||||||||||
Unpaid losses on known claims | $ | 222,138 | $ | 202,622 | $ | 205,589 | $ | 181,972 | ||||||||
IBNR losses | 232,546 | 182,630 | 218,552 | 177,645 | ||||||||||||
LAE | 157,320 | 145,620 | 148,753 | 135,787 | ||||||||||||
Total unpaid losses and LAE | 612,004 | 530,872 | 572,894 | 495,403 | ||||||||||||
Reinsurance recoverables | (13,819 | ) | (13,798 | ) | (13,678 | ) | (14,640 | ) | ||||||||
Unpaid losses and LAE, net of reinsurance recoverables | 598,184 | 517,074 | 559,215 | 480,764 | ||||||||||||
Current Activity | ||||||||||||||||
Loss and LAE incurred: | ||||||||||||||||
Current accident year | 254,381 | 232,940 | 760,530 | 676,822 | ||||||||||||
Prior accident years | 859 | 5,321 | 2,160 | 7,124 | ||||||||||||
Total loss and LAE incurred | 255,240 | 238,261 | 762,690 | 683,946 | ||||||||||||
Loss and LAE payments: | ||||||||||||||||
Current accident year | (171,924 | ) | (165,714 | ) | (400,114 | ) | (368,230 | ) | ||||||||
Prior accident years | (62,844 | ) | (59,864 | ) | (303,133 | ) | (266,722 | ) | ||||||||
Total loss and LAE payments | (234,767 | ) | (225,578 | ) | (703,248 | ) | (634,953 | ) | ||||||||
Balance at End of Period | ||||||||||||||||
Unpaid losses and LAE, net of reinsurance recoverables | 618,658 | 529,757 | 618,658 | 529,757 | ||||||||||||
Add back reinsurance recoverables | 14,203 | 14,561 | 14,203 | 14,561 | ||||||||||||
Total unpaid losses and LAE | $ | 632,860 | $ | 544,318 | $ | 632,860 | $ | 544,318 | ||||||||
Unpaid losses on known claims | $ | 219,330 | $ | 201,804 | $ | 219,330 | $ | 201,804 | ||||||||
IBNR losses | 249,213 | 193,959 | 249,213 | 193,959 | ||||||||||||
LAE | 164,317 | 148,556 | 164,317 | 148,556 | ||||||||||||
Total unpaid losses and LAE | $ | 632,860 | $ | 544,318 | $ | 632,860 | $ | 544,318 | ||||||||
Increases in severities in both bodily injury coverage in California and personal injury protection coverage in Florida related to | ||||||||||||||||
accident year 2012 were the primary sources of the $0.9 million and $2.2 million of unfavorable reserve development during the three and nine months ended September 30, 2013, respectively. | ||||||||||||||||
Increases in severities in both bodily injury coverage in California and personal injury protection coverage in Florida related to | ||||||||||||||||
accident year 2011 were the primary sources of the $5.3 million and $7.1 million of unfavorable reserve development during the three and nine months ended September 30, 2012, respectively. |
Commitments_And_Contingencies
Commitments And Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
Commitments | |
There have been no material changes from the commitments discussed in the Form 10-K for the year ended December 31, 2012. For a description of our previously reported commitments, refer to Note 14 Commitments and Contingencies in the Form 10-K for the year ended December 31, 2012. | |
Contingencies | |
There have been no material changes from the contingencies discussed in the Form 10-K for the year ended December 31, 2012. For a description of our previously reported contingencies, refer to Note 14 Commitments and Contingencies, in the Form 10-K for the year ended December 31, 2012. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||||||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||||||||||||||||
Accumulated Other Comprehensive Income | |||||||||||||||||||||||||
The components of other comprehensive income before and after tax are as follows (in thousands): | |||||||||||||||||||||||||
Three months ended September 30, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Before Tax | Income Tax | Net | Before Tax | Income Tax | Net | ||||||||||||||||||||
Accumulated change in postretirement benefit liability, beginning of period | $ | (868 | ) | $ | 304 | $ | (564 | ) | $ | 508 | $ | (178 | ) | $ | 330 | ||||||||||
Effect on other comprehensive income | 50 | (17 | ) | 32 | (6 | ) | 2 | (4 | ) | ||||||||||||||||
Accumulated change in postretirement benefit liability, end of period | $ | (818 | ) | $ | 286 | $ | (532 | ) | $ | 502 | $ | (176 | ) | $ | 326 | ||||||||||
Accumulated unrealized gains on investments, net, beginning of period | $ | 14,964 | $ | (5,237 | ) | $ | 9,727 | $ | 61,531 | $ | (21,536 | ) | $ | 39,995 | |||||||||||
Other comprehensive income before reclassification | 9,847 | (3,447 | ) | 6,401 | 10,662 | (3,732 | ) | 6,930 | |||||||||||||||||
Reclassification adjustment for other-than-temporary impairments included in net income | 819 | (287 | ) | 532 | 211 | (74 | ) | 137 | |||||||||||||||||
Reclassification adjustment for realized gains included in net income | (273 | ) | 96 | (178 | ) | (479 | ) | 168 | (312 | ) | |||||||||||||||
Effect on other comprehensive income | 10,393 | (3,638 | ) | 6,756 | 10,394 | (3,638 | ) | 6,756 | |||||||||||||||||
Accumulated unrealized gains on investments, net, end of period | $ | 25,357 | $ | (8,875 | ) | $ | 16,482 | $ | 71,925 | $ | (25,174 | ) | $ | 46,751 | |||||||||||
Accumulated other comprehensive income, beginning of period | $ | 14,096 | $ | (4,934 | ) | $ | 9,163 | $ | 62,039 | $ | (21,714 | ) | $ | 40,325 | |||||||||||
Change in postretirement benefit liability | 50 | (17 | ) | 32 | (6 | ) | 2 | (4 | ) | ||||||||||||||||
Change in unrealized gains on investments, net | 10,393 | (3,638 | ) | 6,756 | 10,394 | (3,638 | ) | 6,756 | |||||||||||||||||
Effect on other comprehensive income | 10,443 | (3,655 | ) | 6,788 | 10,388 | (3,636 | ) | 6,752 | |||||||||||||||||
Accumulated other comprehensive income, end of period | $ | 24,539 | $ | (8,589 | ) | $ | 15,950 | $ | 72,427 | $ | (25,349 | ) | $ | 47,077 | |||||||||||
Nine months ended September 30, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Before Tax | Income Tax | Net | Before Tax | Income Tax | Net | ||||||||||||||||||||
Accumulated change in postretirement benefit liability, beginning of period | $ | (967 | ) | $ | 339 | $ | (629 | ) | $ | 519 | $ | (182 | ) | $ | 337 | ||||||||||
Effect on other comprehensive income | 150 | (52 | ) | 97 | (17 | ) | 6 | (11 | ) | ||||||||||||||||
Accumulated change in postretirement benefit liability, end of period | $ | (818 | ) | $ | 286 | $ | (532 | ) | $ | 502 | $ | (176 | ) | $ | 326 | ||||||||||
Accumulated unrealized gains on investments, net, beginning of period | $ | 46,892 | $ | (16,412 | ) | $ | 30,480 | $ | 53,817 | $ | (18,836 | ) | $ | 34,981 | |||||||||||
Other comprehensive income before reclassification | (17,463 | ) | 6,112 | (11,351 | ) | 20,780 | (7,273 | ) | 13,507 | ||||||||||||||||
Reclassification adjustment for other-than-temporary impairments included in net income | 1,190 | (416 | ) | 774 | 1,277 | (447 | ) | 830 | |||||||||||||||||
Reclassification adjustment for realized gains included in net income | (5,262 | ) | 1,842 | (3,420 | ) | (3,949 | ) | 1,382 | (2,567 | ) | |||||||||||||||
Effect on other comprehensive income | (21,534 | ) | 7,537 | (13,997 | ) | 18,107 | (6,337 | ) | 11,770 | ||||||||||||||||
Accumulated unrealized gains on investments, net, end of period | $ | 25,357 | $ | (8,875 | ) | $ | 16,482 | $ | 71,925 | $ | (25,174 | ) | $ | 46,751 | |||||||||||
Accumulated other comprehensive income, beginning of period | $ | 45,924 | $ | (16,073 | ) | $ | 29,851 | $ | 54,336 | $ | (19,018 | ) | $ | 35,319 | |||||||||||
Change in postretirement benefit liability | 150 | (52 | ) | 97 | (17 | ) | 6 | (11 | ) | ||||||||||||||||
Change in unrealized gains on investments, net | (21,534 | ) | 7,537 | (13,997 | ) | 18,107 | (6,337 | ) | 11,770 | ||||||||||||||||
Effect on other comprehensive income | (21,385 | ) | 7,485 | (13,900 | ) | 18,090 | (6,332 | ) | 11,759 | ||||||||||||||||
Accumulated other comprehensive income, end of period | $ | 24,539 | $ | (8,589 | ) | $ | 15,950 | $ | 72,427 | $ | (25,349 | ) | $ | 47,077 | |||||||||||
Reporting_And_Accounting_Polic1
Reporting And Accounting Policies Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Basis of reporting | ' |
The accompanying consolidated financial statements are unaudited and should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2012. This Quarterly Report on Form 10-Q, including the Condensed Notes to Consolidated Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations, focuses on our financial performance since the beginning of the year. | |
These financial statements reflect certain adjustments necessary for a fair presentation of our results of operations and financial position. Such adjustments consist of normal, recurring accruals recorded to match expenses with their related revenue streams and the elimination of all significant inter-company transactions and balances. | |
Estimates | ' |
We based certain accounts and balances within these financial statements upon our estimates and assumptions. The amount of reserves for claims not yet paid, for example, is an item that we can only record by estimation. Unrealized capital gains and losses on investments are subject to market fluctuations, and we use judgment in the determination of whether unrealized losses on certain securities are temporary or other-than-temporary. Should actual results differ significantly from these estimates, the effect on our results of operations could be material. The results of operations for the periods presented may not be indicative of our results for the entire year. | |
Recently Adopted Accounting Standards | ' |
Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income | |
In February 2013, the FASB issued guidance requiring expanded disclosures about amounts reclassified out of accumulated other comprehensive income (AOCI). Entities are required to present reclassifications by component when reporting changes in AOCI balances. The guidance requires the presentation of significant amounts reclassified out of AOCI by income statement line item. We adopted the new guidance as of March 31, 2013. The new guidance affects disclosures only and therefore had no impact on our results of operations or financial position. |
Computation_Of_Earnings_Per_Sh1
Computation Of Earnings Per Share (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Computation of Basic and Diluted Net Earnings Per Common Share | ' | |||||||||||||||
The following table illustrates our computations of basic and diluted net earnings per common share (in thousands, except per | ||||||||||||||||
share figures): | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net earnings | $ | 7,195 | $ | 5,154 | $ | 23,265 | $ | 16,402 | ||||||||
Average basic shares outstanding | 11,421 | 11,631 | 11,463 | 11,689 | ||||||||||||
Basic net earnings per share | $ | 0.63 | $ | 0.44 | $ | 2.03 | $ | 1.4 | ||||||||
Average basic shares outstanding | 11,421 | 11,631 | 11,463 | 11,689 | ||||||||||||
Restricted stock not yet vested | 49 | 32 | 44 | 25 | ||||||||||||
Dilutive effect of assumed option exercises | 26 | 101 | 31 | 103 | ||||||||||||
Dilutive effect of Performance Share Plan | 127 | 129 | 132 | 141 | ||||||||||||
Average diluted shares outstanding | 11,622 | 11,893 | 11,670 | 11,959 | ||||||||||||
Diluted net earnings per share | $ | 0.62 | $ | 0.43 | $ | 1.99 | $ | 1.37 | ||||||||
Fair_Value_Tables
Fair Value (Tables) | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||
Fair value by hierarchy | ' | |||||||||||||||||||||||||||
The following tables present, for each of the fair value hierarchy levels, our assets and liabilities for which we report fair value on a recurring basis (in thousands): | ||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||
September 30, 2013 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 87,257 | $ | 0 | $ | 0 | $ | 87,257 | ||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||
U.S. government | 76,015 | 177 | 2,942 | 79,134 | ||||||||||||||||||||||||
Government-sponsored entities | 0 | 8,530 | 0 | 8,530 | ||||||||||||||||||||||||
State and municipal | 0 | 472,106 | 0 | 472,106 | ||||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||
Residential | 0 | 292,586 | 0 | 292,586 | ||||||||||||||||||||||||
Commercial | 0 | 37,593 | 0 | 37,593 | ||||||||||||||||||||||||
Total mortgage-backed securities | $ | 0 | $ | 330,180 | $ | 0 | $ | 330,180 | ||||||||||||||||||||
Collateralized mortgage obligations | 0 | 9,920 | 0 | 9,920 | ||||||||||||||||||||||||
Asset-backed securities | 0 | 83,857 | 0 | 83,857 | ||||||||||||||||||||||||
Corporates | 0 | 381,302 | 7,858 | 389,160 | ||||||||||||||||||||||||
Total fixed maturities | $ | 76,015 | $ | 1,286,072 | $ | 10,800 | $ | 1,372,887 | ||||||||||||||||||||
Equity securities | 76,561 | 0 | 0 | 76,561 | ||||||||||||||||||||||||
Short-term investments | 4,069 | 0 | 0 | 4,069 | ||||||||||||||||||||||||
Total cash and investments | $ | 243,902 | $ | 1,286,072 | $ | 10,800 | $ | 1,540,774 | ||||||||||||||||||||
Percentage of total cash and investments | 15.8 | % | 83.5 | % | 0.7 | % | 100 | % | ||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||
December 31, 2012 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 165,182 | $ | 0 | $ | 0 | $ | 165,182 | ||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||
U.S. government | 81,529 | 296 | 3,712 | 85,537 | ||||||||||||||||||||||||
Government-sponsored entities | 0 | 22,140 | 0 | 22,140 | ||||||||||||||||||||||||
State and municipal | 0 | 457,113 | 0 | 457,113 | ||||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||
Residential | 0 | 281,907 | 0 | 281,907 | ||||||||||||||||||||||||
Commercial | 0 | 13,768 | 0 | 13,768 | ||||||||||||||||||||||||
Total mortgage-backed securities | $ | 0 | $ | 295,675 | $ | 0 | $ | 295,675 | ||||||||||||||||||||
Collateralized mortgage obligations | 0 | 19,307 | 0 | 19,307 | ||||||||||||||||||||||||
Asset-backed securities | 0 | 79,257 | 0 | 79,257 | ||||||||||||||||||||||||
Corporates | 0 | 353,697 | 9,101 | 362,797 | ||||||||||||||||||||||||
Total fixed maturities | $ | 81,529 | $ | 1,227,486 | $ | 12,813 | $ | 1,321,828 | ||||||||||||||||||||
Equity securities | 73,106 | 0 | 0 | 73,106 | ||||||||||||||||||||||||
Total cash and investments | $ | 319,817 | $ | 1,227,486 | $ | 12,813 | $ | 1,560,116 | ||||||||||||||||||||
Percentage of total cash and investments | 20.5 | % | 78.7 | % | 0.8 | % | 100 | % | ||||||||||||||||||||
Fair value level 3 reconciliation | ' | |||||||||||||||||||||||||||
The following tables present the progression in the Level 3 fair value category (in thousands): | ||||||||||||||||||||||||||||
Three months ended September 30, 2013 | ||||||||||||||||||||||||||||
U.S. | State and | Mortgage- | Collateralized | Corporates | ABS | Total | ||||||||||||||||||||||
Government | Municipal | Backed | Mortgage | |||||||||||||||||||||||||
Securities | Obligations | |||||||||||||||||||||||||||
Balance at beginning of period | $ | 3,124 | $ | 0 | $ | 0 | $ | 0 | $ | 8,055 | $ | 0 | $ | 11,179 | ||||||||||||||
Total gains or (losses), unrealized or realized | ||||||||||||||||||||||||||||
Included in net earnings | (7 | ) | 0 | 0 | 0 | 22 | 0 | 15 | ||||||||||||||||||||
Included in other comprehensive income | (66 | ) | 0 | 0 | 0 | (72 | ) | 0 | (138 | ) | ||||||||||||||||||
Settlements | (109 | ) | 0 | 0 | 0 | (147 | ) | 0 | (255 | ) | ||||||||||||||||||
Balance at end of period | $ | 2,942 | $ | 0 | $ | 0 | $ | 0 | $ | 7,858 | $ | 0 | $ | 10,800 | ||||||||||||||
Three months ended September 30, 2012 | ||||||||||||||||||||||||||||
U.S. | State and | Mortgage- | Collateralized | Corporates | ABS | Total | ||||||||||||||||||||||
Government | Municipal | Backed | Mortgage | |||||||||||||||||||||||||
Securities | Obligations | |||||||||||||||||||||||||||
Balance at beginning of period | $ | 3,899 | $ | 2,750 | $ | 7,188 | $ | 486 | $ | 9,966 | $ | 1,361 | $ | 25,651 | ||||||||||||||
Total gains or (losses), unrealized or realized | ||||||||||||||||||||||||||||
Included in net earnings | (1 | ) | (1 | ) | 0 | (75 | ) | 61 | 0 | (16 | ) | |||||||||||||||||
Included in other comprehensive income | (22 | ) | 30 | 0 | 89 | (32 | ) | 0 | 65 | |||||||||||||||||||
Purchases | 0 | 4,002 | 0 | 0 | 0 | 2,645 | 6,647 | |||||||||||||||||||||
Sales | 0 | 0 | 0 | (483 | ) | (1 | ) | 0 | (485 | ) | ||||||||||||||||||
Settlements | (141 | ) | (2,750 | ) | 0 | (18 | ) | (129 | ) | 0 | (3,039 | ) | ||||||||||||||||
Transfers in | 0 | 0 | 0 | 0 | 1,053 | 0 | 1,053 | |||||||||||||||||||||
Transfers out | 0 | 0 | (7,188 | ) | 0 | 0 | (1,361 | ) | (8,549 | ) | ||||||||||||||||||
Balance at end of period | $ | 3,735 | $ | 4,031 | $ | 0 | $ | 0 | $ | 10,918 | $ | 2,645 | $ | 21,329 | ||||||||||||||
Nine months ended September 30, 2013 | ||||||||||||||||||||||||||||
U.S. | State and | Mortgage- | Collateralized | Corporates | ABS | Total | ||||||||||||||||||||||
Government | Municipal | Backed | Mortgage | |||||||||||||||||||||||||
Securities | Obligations | |||||||||||||||||||||||||||
Balance at beginning of period | $ | 3,712 | $ | 0 | $ | 0 | $ | 0 | $ | 9,101 | $ | 0 | $ | 12,813 | ||||||||||||||
Total gains or (losses), unrealized or realized | ||||||||||||||||||||||||||||
Included in net earnings | (39 | ) | 0 | 0 | 0 | 494 | 0 | 455 | ||||||||||||||||||||
Included in other comprehensive income | (137 | ) | 0 | 0 | 0 | (393 | ) | 0 | (530 | ) | ||||||||||||||||||
Settlements | (594 | ) | 0 | 0 | 0 | (1,343 | ) | 0 | (1,938 | ) | ||||||||||||||||||
Balance at end of period | $ | 2,942 | $ | 0 | $ | 0 | $ | 0 | $ | 7,858 | $ | 0 | $ | 10,800 | ||||||||||||||
Nine months ended September 30, 2012 | ||||||||||||||||||||||||||||
U.S. | State and | Mortgage- | Collateralized | Corporates | ABS | Total | ||||||||||||||||||||||
Government | Municipal | Backed | Mortgage | |||||||||||||||||||||||||
Securities | Obligations | |||||||||||||||||||||||||||
Balance at beginning of period | $ | 4,438 | $ | 0 | $ | 0 | $ | 509 | $ | 10,426 | $ | 0 | $ | 15,374 | ||||||||||||||
Total gains or (losses), unrealized or realized | ||||||||||||||||||||||||||||
Included in net earnings | (71 | ) | (15 | ) | 0 | (74 | ) | 123 | 0 | (38 | ) | |||||||||||||||||
Included in other comprehensive income | (35 | ) | 14 | 32 | 93 | 201 | 1 | 306 | ||||||||||||||||||||
Purchases | 0 | 4,002 | 7,156 | 0 | 0 | 4,005 | 15,163 | |||||||||||||||||||||
Sales | 0 | 0 | 0 | (483 | ) | (254 | ) | 0 | (737 | ) | ||||||||||||||||||
Settlements | (597 | ) | (2,750 | ) | 0 | (44 | ) | (1,398 | ) | 0 | (4,789 | ) | ||||||||||||||||
Transfers in | 0 | 2,781 | 0 | 0 | 2,889 | 0 | 5,670 | |||||||||||||||||||||
Transfers out | 0 | 0 | (7,188 | ) | 0 | (1,070 | ) | (1,361 | ) | (9,619 | ) | |||||||||||||||||
Balance at end of period | $ | 3,735 | $ | 4,031 | $ | 0 | $ | 0 | $ | 10,918 | $ | 2,645 | $ | 21,329 | ||||||||||||||
Quantitative information about inputs of manually priced securities | ' | |||||||||||||||||||||||||||
Quantitative information about the significant unobservable inputs used in the fair value measurement of these manually priced securities at September 30, 2013 is as follows (in millions): | ||||||||||||||||||||||||||||
Fair Value | Valuation Technique | Unobservable Input | Value Used | |||||||||||||||||||||||||
Corporate bond | $ | 0.1 | Recovery rate1 | Probability of default | 100% | |||||||||||||||||||||||
Corporate bond | 0.6 | Discounted cash flow | Comparable credit rating2 | CCC | ||||||||||||||||||||||||
Total | $ | 0.7 | ||||||||||||||||||||||||||
1 Recovery rate for senior unsecured bonds as indicated in Moody's Investor's Service Annual Default Study: Corporate Default and Recovery Rates, 1920-2012. | ||||||||||||||||||||||||||||
2 This bond is not rated, but is supported by JC Penney Corporation trust assets; therefore a JC Penney comparable bond rating is used. | ||||||||||||||||||||||||||||
Carrying Value and Estimated Fair Value | ' | |||||||||||||||||||||||||||
The following table presents the carrying value and estimated fair value of our financial instruments (in thousands): | ||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||||||||||||||
Value | Value | Value | Value | |||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 87,257 | $ | 87,257 | $ | 165,182 | $ | 165,182 | ||||||||||||||||||||
Investments | ||||||||||||||||||||||||||||
Fixed maturities | 1,372,887 | 1,372,887 | 1,321,828 | 1,321,828 | ||||||||||||||||||||||||
Equity securities | 76,561 | 76,561 | 73,106 | 73,106 | ||||||||||||||||||||||||
Short-term | $ | 4,069 | $ | 4,069 | $ | 0 | $ | 0 | ||||||||||||||||||||
Total cash and investments | $ | 1,540,774 | $ | 1,540,774 | $ | 1,560,116 | $ | 1,560,116 | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||
Long-term debt | $ | 275,000 | $ | 284,004 | $ | 275,000 | $ | 288,879 | ||||||||||||||||||||
Investments_Tables
Investments (Tables) | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||||||
Summarized information of investment portfolio | ' | |||||||||||||||||||||||||||
Summarized information for the major categories of our investment portfolio follows (in thousands): | ||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | OTTI | ||||||||||||||||||||||||
Cost or Cost | Unrealized | Unrealized | Recognized in | |||||||||||||||||||||||||
Gains | Losses | Accumulated | ||||||||||||||||||||||||||
OCI(1) | ||||||||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||||||
U.S. government | $ | 78,080 | $ | 1,471 | $ | (418 | ) | $ | 79,134 | $ | 0 | |||||||||||||||||
Government-sponsored entities | 8,325 | 205 | 0 | 8,530 | 0 | |||||||||||||||||||||||
State and municipal | 462,758 | 11,163 | (1,814 | ) | 472,106 | (36 | ) | |||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||
Residential | 293,623 | 3,171 | (4,208 | ) | 292,586 | (1,049 | ) | |||||||||||||||||||||
Commercial | 37,927 | 339 | (673 | ) | 37,593 | 0 | ||||||||||||||||||||||
Total mortgage-backed securities | $ | 331,550 | $ | 3,510 | $ | (4,880 | ) | $ | 330,180 | $ | (1,049 | ) | ||||||||||||||||
Collateralized mortgage obligations | 9,624 | 299 | (3 | ) | 9,920 | (166 | ) | |||||||||||||||||||||
Asset-backed securities | 83,813 | 191 | (147 | ) | 83,857 | (60 | ) | |||||||||||||||||||||
Corporates | 384,286 | 9,145 | (4,271 | ) | 389,160 | (652 | ) | |||||||||||||||||||||
Total fixed maturities | $ | 1,358,436 | $ | 25,985 | $ | (11,533 | ) | $ | 1,372,887 | $ | (1,962 | ) | ||||||||||||||||
Equity securities | 65,657 | 10,904 | 0 | 76,561 | 0 | |||||||||||||||||||||||
Short-term investments | 4,068 | 1 | 0 | 4,069 | 0 | |||||||||||||||||||||||
Total | $ | 1,428,160 | $ | 36,891 | $ | (11,533 | ) | $ | 1,453,517 | $ | (1,962 | ) | ||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | OTTI | ||||||||||||||||||||||||
Cost or Cost | Unrealized | Unrealized | Recognized in | |||||||||||||||||||||||||
Gains | Losses | Accumulated | ||||||||||||||||||||||||||
OCI(1) | ||||||||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||||||
U.S. government | $ | 83,320 | $ | 2,225 | $ | (8 | ) | $ | 85,537 | $ | 0 | |||||||||||||||||
Government-sponsored entities | 21,401 | 740 | 0 | 22,140 | 0 | |||||||||||||||||||||||
State and municipal | 438,367 | 19,109 | (364 | ) | 457,113 | (53 | ) | |||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||
Residential | 275,668 | 6,511 | (272 | ) | 281,907 | (292 | ) | |||||||||||||||||||||
Commercial | 13,023 | 749 | (3 | ) | 13,768 | 0 | ||||||||||||||||||||||
Total mortgage-backed securities | $ | 288,691 | $ | 7,259 | $ | (275 | ) | $ | 295,675 | $ | (292 | ) | ||||||||||||||||
Collateralized mortgage obligations | 18,847 | 469 | (9 | ) | 19,307 | (244 | ) | |||||||||||||||||||||
Asset-backed securities | 78,931 | 435 | (109 | ) | 79,257 | (51 | ) | |||||||||||||||||||||
Corporates | 348,494 | 14,807 | (503 | ) | 362,797 | (972 | ) | |||||||||||||||||||||
Total fixed maturities | $ | 1,278,051 | $ | 45,045 | $ | (1,268 | ) | $ | 1,321,828 | $ | (1,612 | ) | ||||||||||||||||
Equity securities | 69,992 | 3,115 | 0 | 73,106 | 0 | |||||||||||||||||||||||
Total | $ | 1,348,042 | $ | 48,160 | $ | (1,268 | ) | $ | 1,394,934 | $ | (1,612 | ) | ||||||||||||||||
(1) The total non-credit portion of OTTI recognized in Accumulated OCI reflecting the original non-credit loss at the time the credit impairment was determined. | ||||||||||||||||||||||||||||
Unrealized loss by investment category and length of time | ' | |||||||||||||||||||||||||||
The following tables set forth the amount of unrealized loss by investment category and length of time that individual securities have been in a continuous unrealized loss position (in thousands): | ||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | |||||||||||||||||||||||||||
Number of | Fair | Gross | Unrealized | Number of | Fair | Gross | Unrealized | |||||||||||||||||||||
Securities | Value | Unrealized | Losses as | Securities | Value | Unrealized | Losses as | |||||||||||||||||||||
with | Losses | % of Cost | with | Losses | % of Cost | |||||||||||||||||||||||
Unrealized | Unrealized | |||||||||||||||||||||||||||
Losses | Losses | |||||||||||||||||||||||||||
30-Sep-13 | ||||||||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||||||
U.S. government | 9 | $ | 30,060 | $ | (418 | ) | 1.4 | % | 0 | $ | 0 | $ | 0 | 0 | % | |||||||||||||
Government-sponsored entities | 0 | 0 | 0 | 0 | % | 0 | 0 | 0 | 0 | % | ||||||||||||||||||
State and municipal | 49 | 99,437 | (1,814 | ) | 1.8 | % | 1 | 598 | (1 | ) | 0.1 | % | ||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||
Residential | 166 | 180,786 | (3,916 | ) | 2.1 | % | 5 | 6,106 | (292 | ) | 4.6 | % | ||||||||||||||||
Commercial | 14 | 28,804 | (673 | ) | 2.3 | % | 0 | 0 | 0 | 0 | % | |||||||||||||||||
Total mortgage-backed securities | 180 | $ | 209,591 | $ | (4,589 | ) | 2.1 | % | 5 | $ | 6,106 | $ | (292 | ) | 4.6 | % | ||||||||||||
Collateralized mortgage obligations | 4 | 479 | (2 | ) | 0.5 | % | 1 | 316 | (1 | ) | 0.2 | % | ||||||||||||||||
Asset-backed securities | 21 | 18,360 | (96 | ) | 0.5 | % | 1 | 5,043 | (51 | ) | 1 | % | ||||||||||||||||
Corporates | 119 | 141,612 | (4,244 | ) | 2.9 | % | 1 | 863 | (27 | ) | 3.1 | % | ||||||||||||||||
Total fixed maturities | 382 | $ | 499,538 | $ | (11,162 | ) | 2.2 | % | 9 | $ | 12,925 | $ | (372 | ) | 2.8 | % | ||||||||||||
Equity securities | 0 | 0 | 0 | 0 | % | 0 | 0 | 0 | 0 | % | ||||||||||||||||||
Short-term investments | 0 | 0 | 0 | 0 | % | 0 | 0 | 0 | 0 | % | ||||||||||||||||||
Total | 382 | $ | 499,538 | $ | (11,162 | ) | 2.2 | % | 9 | $ | 12,925 | $ | (372 | ) | 2.8 | % | ||||||||||||
Less than 12 Months | 12 Months or More | |||||||||||||||||||||||||||
Number of | Fair | Gross | Unrealized | Number of | Fair | Gross | Unrealized | |||||||||||||||||||||
Securities | Value | Unrealized | Losses as | Securities | Value | Unrealized | Losses as | |||||||||||||||||||||
with | Losses | % of Cost | with | Losses | % of Cost | |||||||||||||||||||||||
Unrealized | Unrealized | |||||||||||||||||||||||||||
Losses | Losses | |||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||||||
U.S. government | 3 | $ | 11,758 | $ | (8 | ) | 0.1 | % | 0 | $ | 0 | $ | 0 | 0 | % | |||||||||||||
Government-sponsored entities | 0 | 0 | 0 | 0 | % | 0 | 0 | 0 | 0 | % | ||||||||||||||||||
State and municipal | 32 | 52,399 | (364 | ) | 0.7 | % | 0 | 0 | 0 | 0 | % | |||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||
Residential | 42 | 75,927 | (272 | ) | 0.4 | % | 0 | 0 | 0 | 0 | % | |||||||||||||||||
Commercial | 1 | 73 | 0 | 0.6 | % | 1 | 259 | (3 | ) | 1.1 | % | |||||||||||||||||
Total mortgage-backed securities | 43 | $ | 76,000 | $ | (272 | ) | 0.4 | % | 1 | $ | 259 | $ | (3 | ) | 1.1 | % | ||||||||||||
Collateralized mortgage obligations | 2 | 1,264 | (9 | ) | 0.7 | % | 0 | 0 | 0 | 0 | % | |||||||||||||||||
Asset-backed securities | 6 | 11,941 | (57 | ) | 0.5 | % | 2 | 6,138 | (52 | ) | 0.8 | % | ||||||||||||||||
Corporates | 58 | 70,540 | (503 | ) | 0.7 | % | 0 | 0 | 0 | 0 | % | |||||||||||||||||
Total fixed maturities | 144 | $ | 223,903 | $ | (1,213 | ) | 0.5 | % | 3 | $ | 6,397 | $ | (55 | ) | 0.8 | % | ||||||||||||
Equity securities | 0 | 0 | 0 | 0 | % | 0 | 0 | 0 | 0 | % | ||||||||||||||||||
Total | 144 | $ | 223,903 | $ | (1,213 | ) | 0.5 | % | 3 | $ | 6,397 | $ | (55 | ) | 0.8 | % | ||||||||||||
Summary of unrealized gains or losses | ' | |||||||||||||||||||||||||||
The following table summarizes those securities, excluding the rabbi trust, with unrealized gains or losses: | ||||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||
Number of positions held with unrealized: | ||||||||||||||||||||||||||||
Gains | 630 | 749 | ||||||||||||||||||||||||||
Losses | 391 | 147 | ||||||||||||||||||||||||||
Number of positions held that individually exceed unrealized: | ||||||||||||||||||||||||||||
Gains of $500,000 | 2 | 3 | ||||||||||||||||||||||||||
Losses of $500,000 | 0 | 0 | ||||||||||||||||||||||||||
Percentage of positions held with unrealized: | ||||||||||||||||||||||||||||
Gains that were investment grade | 84 | % | 81 | % | ||||||||||||||||||||||||
Losses that were investment grade | 87 | % | 86 | % | ||||||||||||||||||||||||
Percentage of fair value held with unrealized: | ||||||||||||||||||||||||||||
Gains that were investment grade | 91 | % | 92 | % | ||||||||||||||||||||||||
Losses that were investment grade | 91 | % | 93 | % | ||||||||||||||||||||||||
Unrealized loss by age and severity | ' | |||||||||||||||||||||||||||
The following table sets forth the amount of unrealized loss, excluding the rabbi trust, by age and severity at September 30, 2013 (in thousands): | ||||||||||||||||||||||||||||
Age of Unrealized Losses: | Fair Value of | Total Gross | Less Than 5%* | 5% - 10%* | Greater | |||||||||||||||||||||||
Securities with | Unrealized | Than 10%* | ||||||||||||||||||||||||||
Unrealized | Losses | |||||||||||||||||||||||||||
Losses | ||||||||||||||||||||||||||||
Three months or less | $ | 45,222 | $ | (287 | ) | $ | (287 | ) | $ | 0 | $ | 0 | ||||||||||||||||
Four months through six months | 382,813 | (9,210 | ) | (6,680 | ) | (2,497 | ) | (33 | ) | |||||||||||||||||||
Seven months through nine months | 44,195 | (1,040 | ) | (747 | ) | (293 | ) | 0 | ||||||||||||||||||||
Ten months through twelve months | 38,458 | (967 | ) | (545 | ) | (422 | ) | 0 | ||||||||||||||||||||
Greater than twelve months | 1,777 | (29 | ) | (29 | ) | 0 | 0 | |||||||||||||||||||||
Total | $ | 512,464 | $ | (11,533 | ) | $ | (8,288 | ) | $ | (3,212 | ) | $ | (33 | ) | ||||||||||||||
* As a percentage of amortized cost or cost. | ||||||||||||||||||||||||||||
Change in unrealized gains (losses) on marketable securities | ' | |||||||||||||||||||||||||||
The change in unrealized gains (losses) on marketable securities included the following (in thousands): | ||||||||||||||||||||||||||||
Pre-tax | ||||||||||||||||||||||||||||
Fixed | Equity | Short-Term Investments | Tax | Net | ||||||||||||||||||||||||
Maturities | Securities | Effects | ||||||||||||||||||||||||||
Nine months ended September 30, 2013 | ||||||||||||||||||||||||||||
Unrealized holding gains (losses) on securities arising during the period | $ | (25,913 | ) | $ | 8,449 | $ | 1 | $ | 6,112 | $ | (11,351 | ) | ||||||||||||||||
Realized (gains) losses on securities sold | (4,602 | ) | (660 | ) | 0 | 1,842 | (3,420 | ) | ||||||||||||||||||||
Impairment loss recognized in earnings | 1,190 | 0 | 0 | (416 | ) | 773 | ||||||||||||||||||||||
Change in unrealized gains (losses) on marketable securities, net | $ | (29,325 | ) | $ | 7,790 | $ | 1 | $ | 7,537 | $ | (13,997 | ) | ||||||||||||||||
Nine months ended September 30, 2012 | ||||||||||||||||||||||||||||
Unrealized holding gains (losses) on securities arising during the period | $ | 15,466 | $ | 5,314 | $ | 0 | $ | (7,273 | ) | $ | 13,507 | |||||||||||||||||
Realized (gains) losses on securities sold | (3,949 | ) | 0 | 0 | 1,382 | (2,567 | ) | |||||||||||||||||||||
Impairment loss recognized in earnings(1) | 1,277 | 0 | 0 | (447 | ) | 830 | ||||||||||||||||||||||
Change in unrealized gains (losses) on marketable securities, net | $ | 12,793 | $ | 5,314 | $ | 0 | $ | (6,338 | ) | $ | 11,770 | |||||||||||||||||
(1) Tax excludes valuation reserve | ||||||||||||||||||||||||||||
Progression of credit losses on fixed maturity securities | ' | |||||||||||||||||||||||||||
The following table is a progression of credit losses on fixed maturity securities that were bifurcated between a credit and non-credit component (in thousands): | ||||||||||||||||||||||||||||
Nine months ended September 30, | ||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||
Beginning balance | $ | 487 | $ | 1,728 | ||||||||||||||||||||||||
Additions for: | ||||||||||||||||||||||||||||
Newly impaired securities | 541 | 9 | ||||||||||||||||||||||||||
Reductions for: | ||||||||||||||||||||||||||||
Securities sold and paid down | (189 | ) | (362 | ) | ||||||||||||||||||||||||
Securities that no longer have a non-credit component | 0 | (735 | ) | |||||||||||||||||||||||||
Ending balance | $ | 839 | $ | 640 | ||||||||||||||||||||||||
Scheduled maturities of fixed maturity securities | ' | |||||||||||||||||||||||||||
The table below sets forth the scheduled maturities of fixed maturity securities at September 30, 2013, based on their fair values (in thousands). We report securities that do not have a single maturity date at average maturity. Actual maturities may differ from contractual maturities because certain securities may be called or prepaid by the issuers. | ||||||||||||||||||||||||||||
Fair Value | Amortized | |||||||||||||||||||||||||||
Cost | ||||||||||||||||||||||||||||
Maturity | Securities | Securities | Securities | All Fixed | All Fixed | |||||||||||||||||||||||
with | with | with No | Maturity | Maturity | ||||||||||||||||||||||||
Unrealized | Unrealized | Unrealized | Securities | Securities | ||||||||||||||||||||||||
Gains | Losses | Gains or | ||||||||||||||||||||||||||
Losses | ||||||||||||||||||||||||||||
One year or less | $ | 49,037 | $ | 1,633 | $ | 97 | $ | 50,767 | $ | 51,318 | ||||||||||||||||||
After one year through five years | 452,040 | 138,471 | 2,103 | 592,613 | 492,994 | |||||||||||||||||||||||
After five years through ten years | 156,419 | 122,724 | 630 | 279,772 | 369,437 | |||||||||||||||||||||||
After ten years | 15,435 | 9,742 | 600 | 25,777 | 19,700 | |||||||||||||||||||||||
Mortgage-backed, asset-backed and collateralized mortgage obligations | 179,883 | 239,894 | 4,180 | 423,957 | 424,986 | |||||||||||||||||||||||
Total | $ | 852,814 | $ | 512,464 | $ | 7,609 | $ | 1,372,887 | $ | 1,358,436 | ||||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||
Reconciliation of provision for income taxes | ' | |||||||||||||||
The following is a reconciliation of income taxes at the statutory rate of 35.0% to the effective provision for income taxes as shown in the Consolidated Statements of Earnings (in thousands): | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Earnings before income taxes | $ | 9,643 | $ | 6,586 | $ | 31,877 | $ | 21,431 | ||||||||
Income taxes at statutory rates | $ | 3,375 | $ | 2,305 | $ | 11,157 | $ | 7,501 | ||||||||
Effect of: | ||||||||||||||||
Dividends-received deduction | (70 | ) | (44 | ) | (249 | ) | (123 | ) | ||||||||
Tax-exempt interest | (664 | ) | (824 | ) | (2,129 | ) | (2,468 | ) | ||||||||
Adjustment to valuation allowance | 0 | 36 | 0 | 117 | ||||||||||||
Other | (193 | ) | (42 | ) | (166 | ) | 3 | |||||||||
Provision for income taxes | $ | 2,448 | $ | 1,432 | $ | 8,612 | $ | 5,029 | ||||||||
GAAP effective tax rate | 25.4 | % | 21.7 | % | 27 | % | 23.5 | % | ||||||||
Additional_Information_Tables
Additional Information (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | ' | |||||||||||||||
Supplemental Cash Flow Information | ' | |||||||||||||||
We made the following payments that we do not separately disclose in the Consolidated Statements of Cash Flows (in thousands): | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Income tax payments | $ | 5,100 | $ | 4,000 | $ | 5,100 | $ | 9,000 | ||||||||
Interest payments on debt | 6,875 | 5,363 | 13,826 | 10,725 | ||||||||||||
Insurance_Reserves_Tables
Insurance Reserves (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Insurance [Abstract] | ' | |||||||||||||||
Liability for unpaid losses and LAE | ' | |||||||||||||||
The following table provides an analysis of changes in the liability for unpaid losses and LAE on a GAAP basis (in thousands): | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Balance at Beginning of Period | ||||||||||||||||
Unpaid losses on known claims | $ | 222,138 | $ | 202,622 | $ | 205,589 | $ | 181,972 | ||||||||
IBNR losses | 232,546 | 182,630 | 218,552 | 177,645 | ||||||||||||
LAE | 157,320 | 145,620 | 148,753 | 135,787 | ||||||||||||
Total unpaid losses and LAE | 612,004 | 530,872 | 572,894 | 495,403 | ||||||||||||
Reinsurance recoverables | (13,819 | ) | (13,798 | ) | (13,678 | ) | (14,640 | ) | ||||||||
Unpaid losses and LAE, net of reinsurance recoverables | 598,184 | 517,074 | 559,215 | 480,764 | ||||||||||||
Current Activity | ||||||||||||||||
Loss and LAE incurred: | ||||||||||||||||
Current accident year | 254,381 | 232,940 | 760,530 | 676,822 | ||||||||||||
Prior accident years | 859 | 5,321 | 2,160 | 7,124 | ||||||||||||
Total loss and LAE incurred | 255,240 | 238,261 | 762,690 | 683,946 | ||||||||||||
Loss and LAE payments: | ||||||||||||||||
Current accident year | (171,924 | ) | (165,714 | ) | (400,114 | ) | (368,230 | ) | ||||||||
Prior accident years | (62,844 | ) | (59,864 | ) | (303,133 | ) | (266,722 | ) | ||||||||
Total loss and LAE payments | (234,767 | ) | (225,578 | ) | (703,248 | ) | (634,953 | ) | ||||||||
Balance at End of Period | ||||||||||||||||
Unpaid losses and LAE, net of reinsurance recoverables | 618,658 | 529,757 | 618,658 | 529,757 | ||||||||||||
Add back reinsurance recoverables | 14,203 | 14,561 | 14,203 | 14,561 | ||||||||||||
Total unpaid losses and LAE | $ | 632,860 | $ | 544,318 | $ | 632,860 | $ | 544,318 | ||||||||
Unpaid losses on known claims | $ | 219,330 | $ | 201,804 | $ | 219,330 | $ | 201,804 | ||||||||
IBNR losses | 249,213 | 193,959 | 249,213 | 193,959 | ||||||||||||
LAE | 164,317 | 148,556 | 164,317 | 148,556 | ||||||||||||
Total unpaid losses and LAE | $ | 632,860 | $ | 544,318 | $ | 632,860 | $ | 544,318 | ||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||||||||||
The components of other comprehensive income before and after tax are as follows (in thousands): | |||||||||||||||||||||||||
Three months ended September 30, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Before Tax | Income Tax | Net | Before Tax | Income Tax | Net | ||||||||||||||||||||
Accumulated change in postretirement benefit liability, beginning of period | $ | (868 | ) | $ | 304 | $ | (564 | ) | $ | 508 | $ | (178 | ) | $ | 330 | ||||||||||
Effect on other comprehensive income | 50 | (17 | ) | 32 | (6 | ) | 2 | (4 | ) | ||||||||||||||||
Accumulated change in postretirement benefit liability, end of period | $ | (818 | ) | $ | 286 | $ | (532 | ) | $ | 502 | $ | (176 | ) | $ | 326 | ||||||||||
Accumulated unrealized gains on investments, net, beginning of period | $ | 14,964 | $ | (5,237 | ) | $ | 9,727 | $ | 61,531 | $ | (21,536 | ) | $ | 39,995 | |||||||||||
Other comprehensive income before reclassification | 9,847 | (3,447 | ) | 6,401 | 10,662 | (3,732 | ) | 6,930 | |||||||||||||||||
Reclassification adjustment for other-than-temporary impairments included in net income | 819 | (287 | ) | 532 | 211 | (74 | ) | 137 | |||||||||||||||||
Reclassification adjustment for realized gains included in net income | (273 | ) | 96 | (178 | ) | (479 | ) | 168 | (312 | ) | |||||||||||||||
Effect on other comprehensive income | 10,393 | (3,638 | ) | 6,756 | 10,394 | (3,638 | ) | 6,756 | |||||||||||||||||
Accumulated unrealized gains on investments, net, end of period | $ | 25,357 | $ | (8,875 | ) | $ | 16,482 | $ | 71,925 | $ | (25,174 | ) | $ | 46,751 | |||||||||||
Accumulated other comprehensive income, beginning of period | $ | 14,096 | $ | (4,934 | ) | $ | 9,163 | $ | 62,039 | $ | (21,714 | ) | $ | 40,325 | |||||||||||
Change in postretirement benefit liability | 50 | (17 | ) | 32 | (6 | ) | 2 | (4 | ) | ||||||||||||||||
Change in unrealized gains on investments, net | 10,393 | (3,638 | ) | 6,756 | 10,394 | (3,638 | ) | 6,756 | |||||||||||||||||
Effect on other comprehensive income | 10,443 | (3,655 | ) | 6,788 | 10,388 | (3,636 | ) | 6,752 | |||||||||||||||||
Accumulated other comprehensive income, end of period | $ | 24,539 | $ | (8,589 | ) | $ | 15,950 | $ | 72,427 | $ | (25,349 | ) | $ | 47,077 | |||||||||||
Nine months ended September 30, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Before Tax | Income Tax | Net | Before Tax | Income Tax | Net | ||||||||||||||||||||
Accumulated change in postretirement benefit liability, beginning of period | $ | (967 | ) | $ | 339 | $ | (629 | ) | $ | 519 | $ | (182 | ) | $ | 337 | ||||||||||
Effect on other comprehensive income | 150 | (52 | ) | 97 | (17 | ) | 6 | (11 | ) | ||||||||||||||||
Accumulated change in postretirement benefit liability, end of period | $ | (818 | ) | $ | 286 | $ | (532 | ) | $ | 502 | $ | (176 | ) | $ | 326 | ||||||||||
Accumulated unrealized gains on investments, net, beginning of period | $ | 46,892 | $ | (16,412 | ) | $ | 30,480 | $ | 53,817 | $ | (18,836 | ) | $ | 34,981 | |||||||||||
Other comprehensive income before reclassification | (17,463 | ) | 6,112 | (11,351 | ) | 20,780 | (7,273 | ) | 13,507 | ||||||||||||||||
Reclassification adjustment for other-than-temporary impairments included in net income | 1,190 | (416 | ) | 774 | 1,277 | (447 | ) | 830 | |||||||||||||||||
Reclassification adjustment for realized gains included in net income | (5,262 | ) | 1,842 | (3,420 | ) | (3,949 | ) | 1,382 | (2,567 | ) | |||||||||||||||
Effect on other comprehensive income | (21,534 | ) | 7,537 | (13,997 | ) | 18,107 | (6,337 | ) | 11,770 | ||||||||||||||||
Accumulated unrealized gains on investments, net, end of period | $ | 25,357 | $ | (8,875 | ) | $ | 16,482 | $ | 71,925 | $ | (25,174 | ) | $ | 46,751 | |||||||||||
Accumulated other comprehensive income, beginning of period | $ | 45,924 | $ | (16,073 | ) | $ | 29,851 | $ | 54,336 | $ | (19,018 | ) | $ | 35,319 | |||||||||||
Change in postretirement benefit liability | 150 | (52 | ) | 97 | (17 | ) | 6 | (11 | ) | ||||||||||||||||
Change in unrealized gains on investments, net | (21,534 | ) | 7,537 | (13,997 | ) | 18,107 | (6,337 | ) | 11,770 | ||||||||||||||||
Effect on other comprehensive income | (21,385 | ) | 7,485 | (13,900 | ) | 18,090 | (6,332 | ) | 11,759 | ||||||||||||||||
Accumulated other comprehensive income, end of period | $ | 24,539 | $ | (8,589 | ) | $ | 15,950 | $ | 72,427 | $ | (25,349 | ) | $ | 47,077 | |||||||||||
Reporting_And_Accounting_Polic2
Reporting And Accounting Policies (Details) | Sep. 30, 2012 |
states | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Number of states licensed to write insurance | 50 |
Computation_Of_Earnings_Per_Sh2
Computation Of Earnings Per Share (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Computation of net earnings per share | ' | ' | ' | ' | ' |
Net earnings | $7,195 | $5,154 | $7,917 | $23,265 | $16,402 |
Average basic shares outstanding (shares) | 11,421 | 11,631 | ' | 11,463 | 11,689 |
Basic net earnings per share (usd per share) | $0.63 | $0.44 | ' | $2.03 | $1.40 |
Average diluted shares outstanding (shares) | 11,622 | 11,893 | ' | 11,670 | 11,959 |
Diluted net earnings per share (usd per share) | $0.62 | $0.43 | ' | $1.99 | $1.37 |
Restricted Stock | ' | ' | ' | ' | ' |
Computation of net earnings per share | ' | ' | ' | ' | ' |
Dilutive shares (shares) | 49 | 32 | ' | 44 | 25 |
Stock Options | ' | ' | ' | ' | ' |
Computation of net earnings per share | ' | ' | ' | ' | ' |
Dilutive shares (shares) | 26 | 101 | ' | 31 | 103 |
Performance Shares | ' | ' | ' | ' | ' |
Computation of net earnings per share | ' | ' | ' | ' | ' |
Dilutive shares (shares) | 127 | 129 | ' | 132 | 141 |
Fair_Value_Fair_Value_by_Hiera
Fair Value - Fair Value by Hierarchy (Details) (Recurring basis, USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Cash and cash equivalents | $87,257 | $165,182 |
Total cash and investments | 243,902 | 319,817 |
Percentage of total cash and investments (percent) | 15.80% | 20.50% |
Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Cash and cash equivalents | 0 | 0 |
Total cash and investments | 1,286,072 | 1,227,486 |
Percentage of total cash and investments (percent) | 83.50% | 78.70% |
Long-term debt | 284,000 | 288,900 |
Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Cash and cash equivalents | 0 | 0 |
Total cash and investments | 10,800 | 12,813 |
Percentage of total cash and investments (percent) | 0.70% | 0.80% |
Estimate of Fair Value Measurement [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Cash and cash equivalents | 87,257 | 165,182 |
Total cash and investments | 1,540,774 | 1,560,116 |
Percentage of total cash and investments (percent) | 100.00% | 100.00% |
U.S. Government | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 76,015 | 81,529 |
U.S. Government | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 177 | 296 |
U.S. Government | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 2,942 | 3,712 |
U.S. Government | Estimate of Fair Value Measurement [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 79,134 | 85,537 |
Fixed maturities | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 76,015 | 81,529 |
Fixed maturities | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 1,286,072 | 1,227,486 |
Fixed maturities | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 10,800 | 12,813 |
Fixed maturities | Estimate of Fair Value Measurement [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 1,372,887 | 1,321,828 |
Government-sponsored enterprises | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 0 | 0 |
Government-sponsored enterprises | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 8,530 | 22,140 |
Government-sponsored enterprises | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 0 | 0 |
Government-sponsored enterprises | Estimate of Fair Value Measurement [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 8,530 | 22,140 |
State and Municipal | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 0 | 0 |
State and Municipal | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 472,106 | 457,113 |
State and Municipal | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 0 | 0 |
State and Municipal | Estimate of Fair Value Measurement [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 472,106 | 457,113 |
Mortgage- Backed Securities | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 0 | 0 |
Mortgage- Backed Securities | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 330,180 | 295,675 |
Mortgage- Backed Securities | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 0 | 0 |
Mortgage- Backed Securities | Estimate of Fair Value Measurement [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 330,180 | 295,675 |
Residential | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 0 | 0 |
Residential | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 292,586 | 281,907 |
Residential | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 0 | 0 |
Residential | Estimate of Fair Value Measurement [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 292,586 | 281,907 |
Commercial | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 0 | 0 |
Commercial | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 37,593 | 13,768 |
Commercial | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 0 | 0 |
Commercial | Estimate of Fair Value Measurement [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 37,593 | 13,768 |
Collateralized Mortgage Obligations | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 0 | 0 |
Collateralized Mortgage Obligations | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 9,920 | 19,307 |
Collateralized Mortgage Obligations | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 0 | 0 |
Collateralized Mortgage Obligations | Estimate of Fair Value Measurement [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 9,920 | 19,307 |
ABS | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 0 | 0 |
ABS | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 83,857 | 79,257 |
ABS | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 0 | 0 |
ABS | Estimate of Fair Value Measurement [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 83,857 | 79,257 |
Corporates | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 0 | 0 |
Corporates | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 381,302 | 353,697 |
Corporates | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 7,858 | 9,101 |
Corporates | Estimate of Fair Value Measurement [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 389,160 | 362,797 |
Equity securities | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 76,561 | 73,106 |
Equity securities | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 0 | 0 |
Equity securities | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 0 | 0 |
Equity securities | Estimate of Fair Value Measurement [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 76,561 | 73,106 |
Short-term investments | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 4,069 | ' |
Short-term investments | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 0 | ' |
Short-term investments | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | 0 | ' |
Short-term investments | Estimate of Fair Value Measurement [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Available-for-sale Securities | $4,069 | ' |
Fair_Value_Level_3_Investments
Fair Value - Level 3 Investments (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
price | ||||
Securities | ||||
Level 3 reconciliation | ' | ' | ' | ' |
Balance at beginning of period | $11,179 | $25,651 | $12,813 | $15,374 |
Included in net earnings | 15 | -16 | 455 | -38 |
Included in other comprehensive income | -138 | 65 | -530 | 306 |
Purchases | ' | 6,647 | ' | 15,163 |
Sales | ' | -485 | ' | -737 |
Settlements | -255 | -3,039 | -1,938 | -4,789 |
Transfers in | ' | 1,053 | ' | 5,670 |
Transfers out | ' | -8,549 | ' | -9,619 |
Balance at end of period | 10,800 | 21,329 | 10,800 | 21,329 |
Number of prices provided by unaffiliated money managers (prices) | ' | ' | 2 | ' |
Number of securities not rated by a nationally recognized statistical rating organization (securities) | ' | ' | 1 | ' |
U.S. Government | ' | ' | ' | ' |
Level 3 reconciliation | ' | ' | ' | ' |
Balance at beginning of period | 3,124 | 3,899 | 3,712 | 4,438 |
Included in net earnings | -7 | -1 | -39 | -71 |
Included in other comprehensive income | -66 | -22 | -137 | -35 |
Purchases | ' | 0 | ' | 0 |
Sales | ' | 0 | ' | 0 |
Settlements | -109 | -141 | -594 | -597 |
Transfers in | ' | 0 | ' | 0 |
Transfers out | ' | 0 | ' | 0 |
Balance at end of period | 2,942 | 3,735 | 2,942 | 3,735 |
State and Municipal | ' | ' | ' | ' |
Level 3 reconciliation | ' | ' | ' | ' |
Balance at beginning of period | 0 | 2,750 | 0 | 0 |
Included in net earnings | 0 | -1 | 0 | -15 |
Included in other comprehensive income | 0 | 30 | 0 | 14 |
Purchases | ' | 4,002 | ' | 4,002 |
Sales | ' | 0 | ' | 0 |
Settlements | 0 | -2,750 | 0 | -2,750 |
Transfers in | ' | 0 | ' | 2,781 |
Transfers out | ' | 0 | ' | 0 |
Balance at end of period | 0 | 4,031 | 0 | 4,031 |
Mortgage- Backed Securities | ' | ' | ' | ' |
Level 3 reconciliation | ' | ' | ' | ' |
Balance at beginning of period | 0 | 7,188 | 0 | 0 |
Included in net earnings | 0 | 0 | 0 | 0 |
Included in other comprehensive income | 0 | 0 | 0 | 32 |
Purchases | ' | 0 | ' | 7,156 |
Sales | ' | 0 | ' | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers in | ' | 0 | ' | 0 |
Transfers out | ' | -7,188 | ' | -7,188 |
Balance at end of period | 0 | 0 | 0 | 0 |
Collateralized Mortgage Obligations | ' | ' | ' | ' |
Level 3 reconciliation | ' | ' | ' | ' |
Balance at beginning of period | 0 | 486 | 0 | 509 |
Included in net earnings | 0 | -75 | 0 | -74 |
Included in other comprehensive income | 0 | 89 | 0 | 93 |
Purchases | ' | 0 | ' | 0 |
Sales | ' | -483 | ' | -483 |
Settlements | 0 | -18 | 0 | -44 |
Transfers in | ' | 0 | ' | 0 |
Transfers out | ' | 0 | ' | 0 |
Balance at end of period | 0 | 0 | 0 | 0 |
Corporates | ' | ' | ' | ' |
Level 3 reconciliation | ' | ' | ' | ' |
Balance at beginning of period | 8,055 | 9,966 | 9,101 | 10,426 |
Included in net earnings | 22 | 61 | 494 | 123 |
Included in other comprehensive income | -72 | -32 | -393 | 201 |
Purchases | ' | 0 | ' | 0 |
Sales | ' | -1 | ' | -254 |
Settlements | -147 | -129 | -1,343 | -1,398 |
Transfers in | ' | 1,053 | ' | 2,889 |
Transfers out | ' | 0 | ' | -1,070 |
Balance at end of period | 7,858 | 10,918 | 7,858 | 10,918 |
ABS | ' | ' | ' | ' |
Level 3 reconciliation | ' | ' | ' | ' |
Balance at beginning of period | 0 | 1,361 | 0 | 0 |
Included in net earnings | 0 | 0 | 0 | 0 |
Included in other comprehensive income | 0 | 0 | 0 | 1 |
Purchases | ' | 2,645 | ' | 4,005 |
Sales | ' | 0 | ' | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers in | ' | 0 | ' | 0 |
Transfers out | ' | -1,361 | ' | -1,361 |
Balance at end of period | 0 | 2,645 | 0 | 2,645 |
Level 3 | ' | ' | ' | ' |
Level 3 reconciliation | ' | ' | ' | ' |
Number of Positions (securities) | 11 | ' | 11 | ' |
Level 3 | Recurring basis | ' | ' | ' | ' |
Level 3 reconciliation | ' | ' | ' | ' |
Balance at end of period | $10,800 | ' | $10,800 | ' |
Non-Binding Broker Quotes | Level 3 | ' | ' | ' | ' |
Level 3 reconciliation | ' | ' | ' | ' |
Number of Positions (securities) | 6 | ' | 6 | ' |
Manual Calculation | Level 3 | ' | ' | ' | ' |
Level 3 reconciliation | ' | ' | ' | ' |
Number of Positions (securities) | 2 | ' | 2 | ' |
Recovery Rate | Level 3 | ' | ' | ' | ' |
Level 3 reconciliation | ' | ' | ' | ' |
Probability of default (percent) | ' | ' | 100.00% | ' |
Fair_Value_Fair_Value_of_Finan
Fair Value - Fair Value of Financial Instruments (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
In Thousands, unless otherwise specified | Carrying Value | Carrying Value | Fair Value | Fair Value | Fixed maturities | Fixed maturities | Fixed maturities | Fixed maturities | Equity securities | Equity securities | Equity securities | Equity securities | Short-term investments | Short-term investments | Short-term investments | Short-term investments | Recovery Rate | Discounted Cash Flow | Manual Calculation | |
Carrying Value | Carrying Value | Fair Value | Fair Value | Carrying Value | Carrying Value | Fair Value | Fair Value | Carrying Value | Carrying Value | Fair Value | Fair Value | Level 3 | Level 3 | Level 3 | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Cash and cash equivalents | $87,257 | $165,182 | $87,257 | $165,182 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Available-for-sale securities | 1,540,774 | 1,560,116 | 1,540,774 | 1,560,116 | 1,372,887 | 1,321,828 | 1,372,887 | 1,321,828 | 76,561 | 73,106 | 76,561 | 73,106 | 4,069 | 0 | 4,069 | 0 | 100 | [1] | 600 | 700 |
Probability of default (percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | |
Long-term debt | $275,000 | $275,000 | $284,004 | $288,879 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
[1] | Recovery rate for senior unsecured bonds as indicated in Moody's Investor's Service Annual Default Study: Corporate Default and Recovery Rates, 1920-2012. |
Investments_Textual_Details
Investments - Textual (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Investments, Debt and Equity Securities [Abstract] | ' | ' | ' | ' | ' |
Proceeds from Sale of Available-for-sale Securities | $43,000,000 | $10,000,000 | $331,200,000 | $133,500,000 | ' |
Receivable for Investments Sold | $512,000 | ' | $512,000 | ' | $48,467,000 |
Investments_Investments_by_maj
Investments - Investments by major category (Details) (USD $) | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost or Cost, Fixed maturities | $1,358,436 | $1,278,051 | ||
Amortized Cost or Cost, Equity securities | 65,657 | 69,992 | ||
Amortized Cost or Cost, Total | 1,428,160 | 1,348,042 | ||
Gross Unrealized Gains | 36,891 | 48,160 | ||
Gross Unrealized Losses | -11,533 | -1,268 | ||
Fixed maturities – at fair value (amortized cost $1,358,436 and $1,278,051) | 1,372,887 | 1,321,828 | ||
Fair Value | 76,561 | 73,106 | ||
Total investments | 1,453,517 | 1,394,934 | ||
OTTI Recognized in Accumulated OCI, Fixed maturities | -1,962 | [1] | -1,612 | [1] |
OTTI Recognized in Accumulated OCI | -1,962 | [1] | -1,612 | [1] |
Fixed maturities | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Gross Unrealized Gains | 25,985 | 45,045 | ||
Gross Unrealized Losses | -11,533 | -1,268 | ||
U.S. Government | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost or Cost, Fixed maturities | 78,080 | 83,320 | ||
Gross Unrealized Gains | 1,471 | 2,225 | ||
Gross Unrealized Losses | -418 | -8 | ||
Fixed maturities – at fair value (amortized cost $1,358,436 and $1,278,051) | 79,134 | 85,537 | ||
OTTI Recognized in Accumulated OCI, Fixed maturities | 0 | [1] | 0 | [1] |
Government-sponsored enterprises | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost or Cost, Fixed maturities | 8,325 | 21,401 | ||
Gross Unrealized Gains | 205 | 740 | ||
Gross Unrealized Losses | 0 | 0 | ||
Fixed maturities – at fair value (amortized cost $1,358,436 and $1,278,051) | 8,530 | 22,140 | ||
OTTI Recognized in Accumulated OCI, Fixed maturities | 0 | [1] | 0 | [1] |
State and Municipal | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost or Cost, Fixed maturities | 462,758 | 438,367 | ||
Gross Unrealized Gains | 11,163 | 19,109 | ||
Gross Unrealized Losses | -1,814 | -364 | ||
Fixed maturities – at fair value (amortized cost $1,358,436 and $1,278,051) | 472,106 | 457,113 | ||
OTTI Recognized in Accumulated OCI, Fixed maturities | -36 | [1] | -53 | [1] |
Mortgage- Backed Securities | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost or Cost, Fixed maturities | 331,550 | 288,691 | ||
Gross Unrealized Gains | 3,510 | 7,259 | ||
Gross Unrealized Losses | -4,880 | -275 | ||
Fixed maturities – at fair value (amortized cost $1,358,436 and $1,278,051) | 330,180 | 295,675 | ||
OTTI Recognized in Accumulated OCI, Fixed maturities | -1,049 | [1] | -292 | [1] |
Residential | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost or Cost, Fixed maturities | 293,623 | 275,668 | ||
Gross Unrealized Gains | 3,171 | 6,511 | ||
Gross Unrealized Losses | -4,208 | -272 | ||
Fixed maturities – at fair value (amortized cost $1,358,436 and $1,278,051) | 292,586 | 281,907 | ||
OTTI Recognized in Accumulated OCI, Fixed maturities | -1,049 | [1] | -292 | [1] |
Commercial | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost or Cost, Fixed maturities | 37,927 | 13,023 | ||
Gross Unrealized Gains | 339 | 749 | ||
Gross Unrealized Losses | -673 | -3 | ||
Fixed maturities – at fair value (amortized cost $1,358,436 and $1,278,051) | 37,593 | 13,768 | ||
OTTI Recognized in Accumulated OCI, Fixed maturities | 0 | [1] | 0 | [1] |
Collateralized Mortgage Obligations | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost or Cost, Fixed maturities | 9,624 | 18,847 | ||
Gross Unrealized Gains | 299 | 469 | ||
Gross Unrealized Losses | -3 | -9 | ||
Fixed maturities – at fair value (amortized cost $1,358,436 and $1,278,051) | 9,920 | 19,307 | ||
OTTI Recognized in Accumulated OCI, Fixed maturities | -166 | [1] | -244 | [1] |
ABS | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost or Cost, Fixed maturities | 83,813 | 78,931 | ||
Gross Unrealized Gains | 191 | 435 | ||
Gross Unrealized Losses | -147 | -109 | ||
Fixed maturities – at fair value (amortized cost $1,358,436 and $1,278,051) | 83,857 | 79,257 | ||
OTTI Recognized in Accumulated OCI, Fixed maturities | -60 | [1] | -51 | [1] |
Corporates | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost or Cost, Fixed maturities | 384,286 | 348,494 | ||
Gross Unrealized Gains | 9,145 | 14,807 | ||
Gross Unrealized Losses | -4,271 | -503 | ||
Fixed maturities – at fair value (amortized cost $1,358,436 and $1,278,051) | 389,160 | 362,797 | ||
OTTI Recognized in Accumulated OCI, Fixed maturities | -652 | [1] | -972 | [1] |
Equity securities | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost or Cost, Equity securities | 65,657 | 69,992 | ||
Gross Unrealized Gains | 10,904 | 3,115 | ||
Gross Unrealized Losses | 0 | 0 | ||
Fair Value | 76,561 | 73,106 | ||
OTTI Recognized in Accumulated OCI, Equity securities | 0 | [1] | 0 | [1] |
Short-term investments | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost or Cost, Equity securities | 4,068 | ' | ||
Gross Unrealized Gains | 1 | ' | ||
Gross Unrealized Losses | 0 | ' | ||
Fair Value | 4,069 | ' | ||
OTTI Recognized in Accumulated OCI, Equity securities | $0 | [1] | ' | |
[1] | The total non-credit portion of OTTI recognized in Accumulated OCI reflecting the original non-credit loss at the time the credit impairment was determined. |
Investments_Continuous_loss_po
Investments - Continuous loss position investments (Details) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Number of Securities with Unrealized Losses (positions) | 391 | 147 |
Less than 12 Months, Fair Value | $499,538,000 | $223,903,000 |
Less than 12 Months, Gross Unrealized Losses | -11,162,000 | -1,213,000 |
12 Months or More, Fair Value | 12,925,000 | 6,397,000 |
12 Months or More, Gross Unrealized Losses | -372,000 | -55,000 |
Fixed maturities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 Months, Fair Value | 499,538,000 | 223,903,000 |
Less than 12 Months, Gross Unrealized Losses | -11,162,000 | -1,213,000 |
12 Months or More, Fair Value | 12,925,000 | 6,397,000 |
12 Months or More, Gross Unrealized Losses | -372,000 | -55,000 |
U.S. Government | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 Months, Fair Value | 30,060,000 | 11,758,000 |
Less than 12 Months, Gross Unrealized Losses | -418,000 | -8,000 |
12 Months or More, Fair Value | 0 | 0 |
12 Months or More, Gross Unrealized Losses | 0 | 0 |
Government-sponsored enterprises | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 Months, Fair Value | 0 | 0 |
Less than 12 Months, Gross Unrealized Losses | 0 | 0 |
12 Months or More, Fair Value | 0 | 0 |
12 Months or More, Gross Unrealized Losses | 0 | 0 |
State and Municipal | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 Months, Fair Value | 99,437,000 | 52,399,000 |
Less than 12 Months, Gross Unrealized Losses | -1,814,000 | -364,000 |
12 Months or More, Fair Value | 598,000 | 0 |
12 Months or More, Gross Unrealized Losses | -1,000 | 0 |
Mortgage- Backed Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 Months, Fair Value | 209,591,000 | 76,000,000 |
Less than 12 Months, Gross Unrealized Losses | -4,589,000 | -272,000 |
12 Months or More, Fair Value | 6,106,000 | 259,000 |
12 Months or More, Gross Unrealized Losses | -292,000 | -3,000 |
Residential | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 Months, Fair Value | 180,786,000 | 75,927,000 |
Less than 12 Months, Gross Unrealized Losses | -3,916,000 | -272,000 |
12 Months or More, Fair Value | 6,106,000 | 0 |
12 Months or More, Gross Unrealized Losses | -292,000 | 0 |
Commercial | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 Months, Fair Value | 28,804,000 | 73,000 |
Less than 12 Months, Gross Unrealized Losses | -673,000 | 0 |
12 Months or More, Fair Value | 0 | 259,000 |
12 Months or More, Gross Unrealized Losses | 0 | -3,000 |
Collateralized Mortgage Obligations | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 Months, Fair Value | 479,000 | 1,264,000 |
Less than 12 Months, Gross Unrealized Losses | -2,000 | -9,000 |
12 Months or More, Fair Value | 316,000 | 0 |
12 Months or More, Gross Unrealized Losses | -1,000 | 0 |
ABS | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 Months, Fair Value | 18,360,000 | 11,941,000 |
Less than 12 Months, Gross Unrealized Losses | -96,000 | -57,000 |
12 Months or More, Fair Value | 5,043,000 | 6,138,000 |
12 Months or More, Gross Unrealized Losses | -51,000 | -52,000 |
Corporates | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 Months, Fair Value | 141,612,000 | 70,540,000 |
Less than 12 Months, Gross Unrealized Losses | -4,244,000 | -503,000 |
12 Months or More, Fair Value | 863,000 | 0 |
12 Months or More, Gross Unrealized Losses | -27,000 | 0 |
Equity securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 Months, Fair Value | 0 | 0 |
Less than 12 Months, Gross Unrealized Losses | 0 | 0 |
12 Months or More, Fair Value | 0 | 0 |
12 Months or More, Gross Unrealized Losses | 0 | 0 |
Short-term investments | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 Months, Fair Value | 0 | ' |
Less than 12 Months, Gross Unrealized Losses | 0 | ' |
12 Months or More, Fair Value | 0 | ' |
12 Months or More, Gross Unrealized Losses | 0 | ' |
Less than 12 Months | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Number of Securities with Unrealized Losses (positions) | 382 | 144 |
Unrealized Losses as Percentage of Cost | 2.20% | 0.50% |
Less than 12 Months | Fixed maturities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Number of Securities with Unrealized Losses (positions) | 382 | 144 |
Unrealized Losses as Percentage of Cost | 2.20% | 0.50% |
Less than 12 Months | U.S. Government | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Number of Securities with Unrealized Losses (positions) | 9 | 3 |
Unrealized Losses as Percentage of Cost | 1.40% | 0.10% |
Less than 12 Months | Government-sponsored enterprises | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Number of Securities with Unrealized Losses (positions) | 0 | 0 |
Unrealized Losses as Percentage of Cost | 0.00% | 0.00% |
Less than 12 Months | State and Municipal | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Number of Securities with Unrealized Losses (positions) | 49 | 32 |
Unrealized Losses as Percentage of Cost | 1.80% | 0.70% |
Less than 12 Months | Mortgage- Backed Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Number of Securities with Unrealized Losses (positions) | 180 | 43 |
Unrealized Losses as Percentage of Cost | 2.10% | 0.40% |
Less than 12 Months | Residential | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Number of Securities with Unrealized Losses (positions) | 166 | 42 |
Unrealized Losses as Percentage of Cost | 2.10% | 0.40% |
Less than 12 Months | Commercial | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Number of Securities with Unrealized Losses (positions) | 14 | 1 |
Unrealized Losses as Percentage of Cost | 2.30% | 0.60% |
Less than 12 Months | Collateralized Mortgage Obligations | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Number of Securities with Unrealized Losses (positions) | 4 | 2 |
Unrealized Losses as Percentage of Cost | 0.50% | 0.70% |
Less than 12 Months | ABS | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Number of Securities with Unrealized Losses (positions) | 21 | 6 |
Unrealized Losses as Percentage of Cost | 0.50% | 0.50% |
Less than 12 Months | Corporates | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Number of Securities with Unrealized Losses (positions) | 119 | 58 |
Unrealized Losses as Percentage of Cost | 2.90% | 0.70% |
Less than 12 Months | Equity securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Number of Securities with Unrealized Losses (positions) | 0 | 0 |
Unrealized Losses as Percentage of Cost | 0.00% | 0.00% |
Less than 12 Months | Short-term investments | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Number of Securities with Unrealized Losses (positions) | 0 | ' |
Unrealized Losses as Percentage of Cost | 0.00% | ' |
12 Months or More | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Number of Securities with Unrealized Losses (positions) | 9 | 3 |
Unrealized Losses as Percentage of Cost | 2.80% | 0.80% |
12 Months or More, Fair Value | 1,777,000 | ' |
12 Months or More, Gross Unrealized Losses | -29,000 | ' |
12 Months or More | Fixed maturities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Number of Securities with Unrealized Losses (positions) | 9 | 3 |
Unrealized Losses as Percentage of Cost | 2.80% | 0.80% |
12 Months or More | U.S. Government | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Number of Securities with Unrealized Losses (positions) | 0 | 0 |
Unrealized Losses as Percentage of Cost | 0.00% | 0.00% |
12 Months or More | Government-sponsored enterprises | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Number of Securities with Unrealized Losses (positions) | 0 | 0 |
Unrealized Losses as Percentage of Cost | 0.00% | 0.00% |
12 Months or More | State and Municipal | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Number of Securities with Unrealized Losses (positions) | 1 | 0 |
Unrealized Losses as Percentage of Cost | 0.10% | 0.00% |
12 Months or More | Mortgage- Backed Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Number of Securities with Unrealized Losses (positions) | 5 | 1 |
Unrealized Losses as Percentage of Cost | 4.60% | 1.10% |
12 Months or More | Residential | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Number of Securities with Unrealized Losses (positions) | 5 | 0 |
Unrealized Losses as Percentage of Cost | 4.60% | 0.00% |
12 Months or More | Commercial | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Number of Securities with Unrealized Losses (positions) | 0 | 1 |
Unrealized Losses as Percentage of Cost | 0.00% | 1.10% |
12 Months or More | Collateralized Mortgage Obligations | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Number of Securities with Unrealized Losses (positions) | 1 | 0 |
Unrealized Losses as Percentage of Cost | 0.20% | 0.00% |
12 Months or More | ABS | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Number of Securities with Unrealized Losses (positions) | 1 | 2 |
Unrealized Losses as Percentage of Cost | 1.00% | 0.80% |
12 Months or More | Corporates | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Number of Securities with Unrealized Losses (positions) | 1 | 0 |
Unrealized Losses as Percentage of Cost | 3.10% | 0.00% |
12 Months or More | Equity securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Number of Securities with Unrealized Losses (positions) | 0 | 0 |
Unrealized Losses as Percentage of Cost | 0.00% | 0.00% |
12 Months or More | Short-term investments | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Number of Securities with Unrealized Losses (positions) | 0 | ' |
Unrealized Losses as Percentage of Cost | 0.00% | ' |
Maximum | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Percentage of book value (percent) | 95.00% | ' |
Minimum | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Unrealized loss amount | $100,000 | ' |
Number of previous impairment charges | 1 | ' |
Investments_Summary_of_unreali
Investments - Summary of unrealized gains and losses (Details) | Sep. 30, 2013 | Dec. 31, 2012 |
Securities | Securities | |
Investments, Debt and Equity Securities [Abstract] | ' | ' |
Number of positions held with unrealized gains (positions) | 630 | 749 |
Number of positions held with unrealized losses (positions) | 391 | 147 |
Number of positions held that individually exceed unrealized gains of $500,000 (positions) | 2 | 3 |
Number of positions held that individually exceed unrealized losses of $500,000 (positions) | 0 | 0 |
Percentage of positions held with unrealized gains that were investment grade (percent) | 84.00% | 81.00% |
Percentage of positions held with unrealized losses that were investment grade (percent) | 87.00% | 86.00% |
Percentage of fair value held with unrealized gains that were investment grade (percent) | 91.00% | 92.00% |
Percentage of fair value held with unrealized losses that were investment grade (percent) | 91.00% | 93.00% |
Investments_Unrealized_losses_
Investments - Unrealized losses by age and severity (Details) (USD $) | 9 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Fair Value of Securities with Unrealized Losses, 0-12 Months | $499,538 | $223,903 | |
Fair Value of Securities with Unrealized Losses, Greater Than 12 Months | 12,925 | 6,397 | |
Fair Value of Securities with Unrealized Losses | 512,464 | ' | |
Total Gross Unrealized Losses, 0-12 Months | -11,162 | -1,213 | |
Total Gross Unrealized Losses, Greater Than 12 Months | -372 | -55 | |
Total Gross Unrealized Losses | -11,533 | ' | |
0-3 months | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Fair Value of Securities with Unrealized Losses, 0-12 Months | 45,222 | ' | |
Total Gross Unrealized Losses, 0-12 Months | -287 | ' | |
3-6 months | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Fair Value of Securities with Unrealized Losses, 0-12 Months | 382,813 | ' | |
Total Gross Unrealized Losses, 0-12 Months | -9,210 | ' | |
6-9 months | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Fair Value of Securities with Unrealized Losses, 0-12 Months | 44,195 | ' | |
Total Gross Unrealized Losses, 0-12 Months | -1,040 | ' | |
9-12 months | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Fair Value of Securities with Unrealized Losses, 0-12 Months | 38,458 | ' | |
Total Gross Unrealized Losses, 0-12 Months | -967 | ' | |
Greater than twelve months | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Fair Value of Securities with Unrealized Losses, Greater Than 12 Months | 1,777 | ' | |
Total Gross Unrealized Losses, Greater Than 12 Months | -29 | ' | |
Less Than 5% as a Percentage of Amortized Cost or Cost | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Total Gross Unrealized Losses | -8,288 | [1] | ' |
Less Than 5% as a Percentage of Amortized Cost or Cost | 0-3 months | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Total Gross Unrealized Losses, 0-12 Months | -287 | [1] | ' |
Less Than 5% as a Percentage of Amortized Cost or Cost | 3-6 months | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Total Gross Unrealized Losses, 0-12 Months | -6,680 | [1] | ' |
Less Than 5% as a Percentage of Amortized Cost or Cost | 6-9 months | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Total Gross Unrealized Losses, 0-12 Months | -747 | [1] | ' |
Less Than 5% as a Percentage of Amortized Cost or Cost | 9-12 months | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Total Gross Unrealized Losses, 0-12 Months | -545 | [1] | ' |
Less Than 5% as a Percentage of Amortized Cost or Cost | Greater than twelve months | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Total Gross Unrealized Losses, Greater Than 12 Months | -29 | [1] | ' |
5% - 10% as a Percentage of Amortized Cost or Cost | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Total Gross Unrealized Losses | -3,212 | [1] | ' |
5% - 10% as a Percentage of Amortized Cost or Cost | 0-3 months | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Total Gross Unrealized Losses, 0-12 Months | 0 | [1] | ' |
5% - 10% as a Percentage of Amortized Cost or Cost | 3-6 months | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Total Gross Unrealized Losses, 0-12 Months | -2,497 | [1] | ' |
5% - 10% as a Percentage of Amortized Cost or Cost | 6-9 months | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Total Gross Unrealized Losses, 0-12 Months | -293 | [1] | ' |
5% - 10% as a Percentage of Amortized Cost or Cost | 9-12 months | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Total Gross Unrealized Losses, 0-12 Months | -422 | [1] | ' |
5% - 10% as a Percentage of Amortized Cost or Cost | Greater than twelve months | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Total Gross Unrealized Losses, Greater Than 12 Months | 0 | [1] | ' |
Greater Than 10% as a Percentage of Amortized Cost or Cost | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Total Gross Unrealized Losses | -33 | [1] | ' |
Greater Than 10% as a Percentage of Amortized Cost or Cost | 0-3 months | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Total Gross Unrealized Losses, 0-12 Months | 0 | [1] | ' |
Greater Than 10% as a Percentage of Amortized Cost or Cost | 3-6 months | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Total Gross Unrealized Losses, 0-12 Months | -33 | [1] | ' |
Greater Than 10% as a Percentage of Amortized Cost or Cost | 6-9 months | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Total Gross Unrealized Losses, 0-12 Months | 0 | [1] | ' |
Greater Than 10% as a Percentage of Amortized Cost or Cost | 9-12 months | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Total Gross Unrealized Losses, 0-12 Months | 0 | [1] | ' |
Greater Than 10% as a Percentage of Amortized Cost or Cost | Greater than twelve months | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Total Gross Unrealized Losses, Greater Than 12 Months | $0 | [1] | ' |
[1] | As a percentage of amortized cost or cost. |
Investments_Change_in_unrealiz
Investments - Change in unrealized gains and losses (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ||
Unrealized holding gains arising during the period | $9,847 | $10,662 | ($17,463) | $20,780 | ||
Unrealized holding gains (losses) on securities arising during the period, tax effects | ' | ' | -6,112 | 7,273 | ||
Unrealized holding gains (losses) on securities arising during period, net of tax | ' | ' | -11,351 | 13,507 | ||
Realized (gains) losses on securities sold, pre-tax | 273 | 479 | 5,262 | 3,949 | ||
Realized (gains) losses on securities sold, tax effects | ' | ' | -1,842 | -1,382 | ||
Realized (gains) losses on securities sold, net of tax | ' | ' | -3,420 | -2,567 | ||
Impairment loss recognized in earnings, pre-tax | 819 | 211 | 1,190 | 1,277 | ||
Impairment loss recognized in earnings, tax effects | ' | ' | -416 | -447 | ||
Impairment loss recognized in earnings | ' | ' | 773 | 830 | ||
Unrealized gains (losses) on investments, net | 10,393 | 10,394 | -21,534 | 18,107 | ||
Change in unrealized gains (losses) on marketable securities, net, tax effects | ' | ' | -7,537 | 6,338 | ||
Change in unrealized gains (losses) on marketable securities, net, net of tax | ' | ' | -13,997 | 11,770 | ||
Fixed maturities | ' | ' | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ||
Unrealized holding gains arising during the period | ' | ' | -25,913 | 15,466 | ||
Realized (gains) losses on securities sold, pre-tax | ' | ' | -4,602 | -3,949 | ||
Impairment loss recognized in earnings, pre-tax | ' | ' | 1,190 | [1] | 1,277 | [1] |
Unrealized gains (losses) on investments, net | ' | ' | -29,325 | 12,793 | ||
Equity securities | ' | ' | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ||
Unrealized holding gains arising during the period | ' | ' | 8,449 | 5,314 | ||
Realized (gains) losses on securities sold, pre-tax | ' | ' | -660 | 0 | ||
Impairment loss recognized in earnings, pre-tax | ' | ' | 0 | [1] | 0 | [1] |
Unrealized gains (losses) on investments, net | ' | ' | 7,790 | 5,314 | ||
Short-term investments | ' | ' | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ||
Unrealized holding gains arising during the period | ' | ' | 1 | 0 | ||
Realized (gains) losses on securities sold, pre-tax | ' | ' | 0 | 0 | ||
Impairment loss recognized in earnings, pre-tax | ' | ' | 0 | [1] | 0 | [1] |
Unrealized gains (losses) on investments, net | ' | ' | $1 | $0 | ||
[1] | Tax excludes valuation reserveThe total non-credit portion of OTTI recognized in Accumulated OCI reflecting the original non-credit loss at the time the credit impairment was determined. |
Investments_Credit_losses_roll
Investments - Credit losses rollforward (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Credit losses on fixed maturity securities | ' | ' |
Beginning balance | $487 | $1,728 |
Additions for newly impaired securities | 541 | 9 |
Reductions for securities sold and paid down | -189 | -362 |
Reductions for securities that no longer have a non-credit component | 0 | -735 |
Ending balance | $839 | $640 |
Investments_Investments_by_con
Investments - Investments by contractual maturity (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
One year or less, fair value | $50,767 | ' |
Short term investments, amortized cost | 51,318 | ' |
After one year through five years, fair value | 592,613 | ' |
After one year through five years, amortized cost | 492,994 | ' |
After five years through ten years, fair value | 279,772 | ' |
After five years through ten years, amortized cost | 369,437 | ' |
After ten years, fair value | 25,777 | ' |
After ten years, amortized cost basis | 19,700 | ' |
Mortgage-backed, asset-backed and collateralized mortgage obligations, fair value | 423,957 | ' |
Mortgage-backed, asset-backed and collateralized mortgage obligations, amortized cost | 424,986 | ' |
Fair Value, Fixed maturities | 1,372,887 | 1,321,828 |
Amortized Cost | 1,358,436 | 1,278,051 |
Securities with Unrealized Gains | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
One year or less, fair value | 49,037 | ' |
After one year through five years, fair value | 452,040 | ' |
After five years through ten years, fair value | 156,419 | ' |
After ten years, fair value | 15,435 | ' |
Mortgage-backed, asset-backed and collateralized mortgage obligations, fair value | 179,883 | ' |
Fair Value, Fixed maturities | 852,814 | ' |
Securities with Unrealized Losses | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
One year or less, fair value | 1,633 | ' |
After one year through five years, fair value | 138,471 | ' |
After five years through ten years, fair value | 122,724 | ' |
After ten years, fair value | 9,742 | ' |
Mortgage-backed, asset-backed and collateralized mortgage obligations, fair value | 239,894 | ' |
Fair Value, Fixed maturities | 512,464 | ' |
Securities with No Unrealized Gains or Losses | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
One year or less, fair value | 97 | ' |
After one year through five years, fair value | 2,103 | ' |
After five years through ten years, fair value | 630 | ' |
After ten years, fair value | 600 | ' |
Mortgage-backed, asset-backed and collateralized mortgage obligations, fair value | 4,180 | ' |
Fair Value, Fixed maturities | $7,609 | ' |
LongTerm_Debt_Details
Long-Term Debt (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Aug. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
US Treasury Note | Revolving Credit Facility | Senior Notes Due 2022 | Senior Notes Due 2022 | |||
Senior Notes | Senior Notes | |||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' |
Principal amount | ' | ' | ' | ' | ' | $275,000,000 |
Coupon rate (percent) | ' | ' | ' | ' | ' | 5.00% |
Capitalized debt issuance costs | ' | ' | ' | ' | 2,200,000 | ' |
Long-term debt, fair value | 284,004,000 | 288,879,000 | ' | ' | ' | 284,000,000 |
Basis points | 2.62% | ' | ' | ' | ' | ' |
Term of note used | ' | ' | ' | ' | ' | '10 years |
Effective percentage (percent) | ' | ' | 2.61% | ' | ' | ' |
Credit facility capacity | ' | ' | ' | $50,000,000 | ' | ' |
Term of revolving credit facility | ' | ' | ' | '3 years | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Federal statutory income tax rate (percent) | ' | ' | 35.00% | ' |
Income tax reconciliation | ' | ' | ' | ' |
Earnings before income taxes | $9,643 | $6,586 | $31,877 | $21,431 |
Income taxes at statutory rates | 3,375 | 2,305 | 11,157 | 7,501 |
Dividends-received deduction | -70 | -44 | -249 | -123 |
Tax-exempt interest | -664 | -824 | -2,129 | -2,468 |
Adjustment to valuation allowance | 0 | 36 | 0 | 117 |
Other | -193 | -42 | -166 | 3 |
Provision for income taxes | $2,448 | $1,432 | $8,612 | $5,029 |
GAAP effective tax rate (percent) | 25.40% | 21.70% | 27.00% | 23.50% |
Additional_Information_Details
Additional Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Supplemental Cash Flow Elements [Abstract] | ' | ' | ' | ' | ' |
Income tax payments | $5,100,000 | $4,000,000 | $5,100,000 | $9,000,000 | ' |
Interest payments on debt | 6,875,000 | 5,363,000 | 13,826,000 | 10,725,000 | ' |
Negative cash book balances | $55,000,000 | ' | $55,000,000 | ' | $45,400,000 |
Insurance_Reserves_Details
Insurance Reserves (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ' | ' | ' | ' |
Unpaid losses on known claims, balance at beginning of period | $222,138 | $202,622 | $205,589 | $181,972 |
IBNR losses, balance at beginning of period | 232,546 | 182,630 | 218,552 | 177,645 |
LAE, balance at beginning of period | 157,320 | 145,620 | 148,753 | 135,787 |
Total unpaid losses and LAE, balance at beginning of period | 612,004 | 530,872 | 572,894 | 495,403 |
Reinsurance recoverables, balance at beginning of period | -13,819 | -13,798 | -13,678 | -14,640 |
Unpaid losses and LAE, net of reinsurance recoverables, balance at beginning of period | 598,184 | 517,074 | 559,215 | 480,764 |
Loss and LAE incurred, current accident year | 254,381 | 232,940 | 760,530 | 676,822 |
Loss and LAE incurred, prior accident years | 859 | 5,321 | 2,160 | 7,124 |
Total loss and LAE incurred | 255,240 | 238,261 | 762,690 | 683,946 |
Loss and LAE payments, current accident year | -171,924 | -165,714 | -400,114 | -368,230 |
Loss and LAE payments, prior accident years | -62,844 | -59,864 | -303,133 | -266,722 |
Total loss and LAE payments | -234,767 | -225,578 | -703,248 | -634,953 |
Unpaid losses and LAE, net of reinsurance recoverables, balance at end of period | 618,658 | 529,757 | 618,658 | 529,757 |
Add back reinsurance recoverables, balance at end of period | 14,203 | 14,561 | 14,203 | 14,561 |
Total unpaid losses and LAE, balance at end of period | 632,860 | 544,318 | 632,860 | 544,318 |
Unpaid losses on known claims, balance at end of period | 219,330 | 201,804 | 219,330 | 201,804 |
IBNR losses, balance at end of period | 249,213 | 193,959 | 249,213 | 193,959 |
LAE, balance at end of period | $164,317 | $148,556 | $164,317 | $148,556 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Before Tax [Abstract] | ' | ' | ' | ' |
Accumulated other comprehensive income, beginning of period | $14,096 | $62,039 | $45,924 | $54,336 |
Effect on other comprehensive income | 10,443 | 10,388 | -21,385 | 18,090 |
Accumulated other comprehensive income, end of period | 24,539 | 72,427 | 24,539 | 72,427 |
Income Tax [Abstract] | ' | ' | ' | ' |
Accumulated other comprehensive income, beginning of period | -4,934 | -21,714 | -16,073 | -19,018 |
Effect on other comprehensive income | -3,655 | -3,636 | 7,485 | -6,332 |
Accumulated other comprehensive income, end of period | -8,589 | -25,349 | -8,589 | -25,349 |
Net [Abstract] | ' | ' | ' | ' |
Accumulated other comprehensive income, beginning of period | 9,163 | 40,325 | 29,851 | 35,319 |
Other comprehensive income, net of tax | 6,788 | 6,752 | -13,900 | 11,759 |
Accumulated other comprehensive income, end of period | 15,950 | 47,077 | 15,950 | 47,077 |
Accumulated Change Postretirement Benefite Liability [Member] | ' | ' | ' | ' |
Before Tax [Abstract] | ' | ' | ' | ' |
Accumulated other comprehensive income, beginning of period | -868 | 508 | -967 | 519 |
Effect on other comprehensive income | 50 | -6 | 150 | -17 |
Accumulated other comprehensive income, end of period | -818 | 502 | -818 | 502 |
Income Tax [Abstract] | ' | ' | ' | ' |
Accumulated other comprehensive income, beginning of period | 304 | -178 | 339 | -182 |
Effect on other comprehensive income | -17 | 2 | -52 | 6 |
Accumulated other comprehensive income, end of period | 286 | -176 | 286 | -176 |
Net [Abstract] | ' | ' | ' | ' |
Accumulated other comprehensive income, beginning of period | -564 | 330 | -629 | 337 |
Other comprehensive income, net of tax | 32 | -4 | 97 | -11 |
Accumulated other comprehensive income, end of period | -532 | 326 | -532 | 326 |
Accumulated Unrealized Gains on Investments, net [Member] | ' | ' | ' | ' |
Before Tax [Abstract] | ' | ' | ' | ' |
Accumulated other comprehensive income, beginning of period | 14,964 | 61,531 | 46,892 | 53,817 |
Effect on other comprehensive income | 10,393 | 10,394 | -21,534 | 18,107 |
Other comprehensive income before reclassification | 9,847 | 10,662 | -17,463 | 20,780 |
Accumulated other comprehensive income, end of period | 25,357 | 71,925 | 25,357 | 71,925 |
Income Tax [Abstract] | ' | ' | ' | ' |
Accumulated other comprehensive income, beginning of period | -5,237 | -21,536 | -16,412 | -18,836 |
Other comprehensive income before reclassification | -3,447 | -3,732 | 6,112 | -7,273 |
Effect on other comprehensive income | -3,638 | -3,638 | 7,537 | -6,337 |
Accumulated other comprehensive income, end of period | -8,875 | -25,174 | -8,875 | -25,174 |
Net [Abstract] | ' | ' | ' | ' |
Accumulated other comprehensive income, beginning of period | 9,727 | 39,995 | 30,480 | 34,981 |
Other comprehensive income before reclassification | 6,401 | 6,930 | -11,351 | 13,507 |
Other comprehensive income, net of tax | 6,756 | 6,756 | -13,997 | 11,770 |
Accumulated other comprehensive income, end of period | 16,482 | 46,751 | 16,482 | 46,751 |
Reclassification Adjustment for Other-than-Temporary Impairment [Member] | ' | ' | ' | ' |
Before Tax [Abstract] | ' | ' | ' | ' |
Reclassicification adjustment | 819 | 211 | 1,190 | 1,277 |
Income Tax [Abstract] | ' | ' | ' | ' |
Reclassicification adjustment | -287 | -74 | -416 | -447 |
Net [Abstract] | ' | ' | ' | ' |
Reclassicification adjustment | 532 | 137 | 774 | 830 |
Accumulated Unrealized Gains on Investments, Net [Member] | ' | ' | ' | ' |
Before Tax [Abstract] | ' | ' | ' | ' |
Effect on other comprehensive income | 10,393 | 10,394 | -21,534 | 18,107 |
Reclassicification adjustment | -273 | -479 | -5,262 | -3,949 |
Income Tax [Abstract] | ' | ' | ' | ' |
Reclassicification adjustment | 96 | 168 | 1,842 | 1,382 |
Effect on other comprehensive income | -3,638 | -3,638 | 7,537 | -6,337 |
Net [Abstract] | ' | ' | ' | ' |
Reclassicification adjustment | -178 | -312 | -3,420 | -2,567 |
Other comprehensive income, net of tax | $6,756 | $6,756 | ($13,997) | $11,770 |