Document_and_Entity_Informatio
Document and Entity Information Document (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 13, 2015 | Jun. 30, 2014 | |
Document Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | INFINITY PROPERTY & CASUALTY CORP | ||
Entity Central Index Key | 1195933 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 11,473,967 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $746,839,380 |
Consolidated_Statements_of_Ear
Consolidated Statements of Earnings (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues: | |||
Earned premium | $1,325,935 | $1,302,525 | $1,184,090 |
Earned premium, percent change | 1.80% | 10.00% | |
Installment and other fee income | 95,242 | 98,428 | 99,952 |
Installment and other fee income, percent change | -3.20% | -1.50% | |
Net investment income | 35,629 | 35,546 | 37,571 |
Net investment income, percent change | 0.20% | -5.40% | |
Net realized gains on investments | 4,284 | 6,026 | 24,055 |
Net realized gains on investments, percent change | -28.90% | -74.90% | |
Gain on sale of subsidiaries | 0 | 0 | 2,922 |
Gain on sale of subsidiaries, percent change | 0.00% | -100.00% | |
Other income | 619 | 707 | 996 |
Other income, percent change | -12.50% | -29.00% | |
Total revenues | 1,461,709 | 1,443,233 | 1,349,585 |
Total revenues, percent change | 1.30% | 6.90% | |
Costs and Expenses: | |||
Losses and loss adjustment expenses | 1,001,628 | 1,017,247 | 942,253 |
Losses and loss adjustment expense, percent change | -1.50% | 8.00% | |
Commissions and other underwriting expenses | 354,559 | 357,052 | 349,808 |
Commissions and other underwriting expenses, percent change | -0.70% | 2.10% | |
Interest expense | 13,801 | 13,912 | 12,908 |
Interest expense, percent change | -0.80% | 7.80% | |
Corporate general and administrative expenses | 7,702 | 7,870 | 7,408 |
Corporate general and administrative expenses, percent change | -2.10% | 6.20% | |
Loss on redemption of long-term debt | 0 | 0 | 13,595 |
Loss on repurchase of debt, percent change | 0.00% | -100.00% | |
Other expenses | 882 | 2,073 | 1,526 |
Other expenses, percent change | -57.50% | 35.90% | |
Total costs and expenses | 1,378,572 | 1,398,155 | 1,327,498 |
Total costs and expenses, percent change | -1.40% | 5.30% | |
Earnings before income taxes | 83,138 | 45,078 | 22,088 |
Earnings before income taxes, percent change | 84.40% | 104.10% | |
Provision for income taxes | 25,936 | 12,445 | -2,231 |
Provision for income taxes, percent change | 108.40% | ||
Net Earnings | 57,201 | 32,633 | 24,319 |
Net Earnings, percent change | 75.30% | 34.20% | |
Net Earnings per Common Share: | |||
Basic earnings per share (usd per share) | $5 | $2.85 | $2.09 |
Basic earnings per share, percent change | 75.40% | 36.40% | |
Diluted earnings per share (usd per share) | $4.95 | $2.80 | $2.04 |
Diluted earnings per share, percent change | 76.80% | 37.30% | |
Average Number of Common Shares: | |||
Basic average number of common shares | 11,440 | 11,451 | 11,660 |
Basic average number of common shares, percent change | -0.10% | -1.80% | |
Diluted average number of common shares | 11,562 | 11,657 | 11,941 |
Diluted average number of common shares, percent change | -0.80% | -2.40% | |
Cash Dividends per Common Share (usd per share) | $1.44 | $1.20 | $0.90 |
Cash Dividends per Common Share, percent change | 20.00% | 33.30% | |
Net realized gains before impairment losses | 4,444 | 7,495 | 25,447 |
Net realized gains before impairment losses, percent change | -40.70% | -70.50% | |
Total other-than-temporary impairment (OTTI) losses | -1,023 | -3,772 | -1,404 |
Total other-than-temporary impairment (OTTI) losses, percent change | -72.90% | 168.70% | |
Non-credit portion in other comprehensive income | 888 | 2,338 | 44 |
Non-credit portion in other comprehensive income, percent change | -62.00% | ||
OTTI losses reclassified from other comprehensive income | -25 | -33 | -32 |
OTTI losses reclassified from other comprehensive income, percent change | -26.10% | 3.30% | |
Net impairment losses recognized in earnings | ($160) | ($1,468) | ($1,393) |
Net impairment losses recognized in earnings, percent change | -89.10% | 5.40% |
Consolidated_Statement_of_Comp
Consolidated Statement of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $57,201 | $32,633 | $24,319 |
Other comprehensive (loss) income before tax: | |||
Net change in postretirement benefit liability | 235 | 906 | -1,487 |
Unrealized gains (losses) on investments: | |||
Unrealized holding gains (losses) arising during the period | 14,618 | -15,227 | 17,129 |
Less: Reclassification adjustments for gains included in net earnings | -4,284 | -6,026 | -24,055 |
Unrealized gains (losses) on investments, net | 10,334 | -21,254 | -6,926 |
Other comprehensive income (loss), before tax | 10,569 | -20,348 | -8,412 |
Income tax benefit (expense) related to components of other comprehensive income | 3,699 | -7,122 | -2,944 |
Other comprehensive income (loss), net of tax | 6,870 | -13,226 | -5,468 |
Comprehensive income | $64,071 | $19,406 | $18,851 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investments: | ||
Fixed maturities – at fair value (amortized cost $1,412,417 and $1,345,077) | $1,431,843 | $1,354,305 |
Equity securities – at fair value (cost $77,862 and $74,718) | 94,408 | 91,127 |
Short-term investments - at fair value (amortized cost $803 and $2,595) | 803 | 2,596 |
Total investments | 1,527,054 | 1,448,027 |
Cash and cash equivalents | 84,541 | 134,211 |
Accrued investment income | 12,976 | 12,772 |
Agents’ balances and premium receivable, net of allowances for doubtful accounts of $15,510 and $15,884 | 483,638 | 451,339 |
Property and equipment, net of accumulated depreciation of $63,929 and $53,368 | 55,880 | 48,061 |
Prepaid reinsurance premium | 4,809 | 3,133 |
Recoverables from reinsurers (includes $161 and $77 on paid losses and LAE) | 14,530 | 14,508 |
Deferred policy acquisition costs | 90,428 | 88,258 |
Current and deferred income taxes | 20,022 | 28,648 |
Receivable for securities sold | 4,549 | 2,791 |
Other assets | 11,108 | 10,242 |
Goodwill | 75,275 | 75,275 |
Total assets | 2,384,812 | 2,317,265 |
Liabilities: | ||
Unpaid losses and loss adjustment expenses | 668,177 | 646,577 |
Unearned premium | 589,260 | 566,004 |
Long-term debt (fair value $291,044 and $272,632) | 275,000 | 275,000 |
Commissions payable | 18,673 | 19,100 |
Payable for securities purchased | 17,173 | 39,887 |
Other liabilities | 118,870 | 113,938 |
Total liabilities | 1,687,153 | 1,660,507 |
Commitments and contingencies (See Note 14) | ||
Shareholders’ equity: | ||
Common stock, no par value (50,000,000 shares authorized; 21,728,032 and 21,599,047 shares issued) | 21,745 | 21,684 |
Additional paid-in capital | 372,368 | 368,902 |
Retained earnings | 725,651 | 685,011 |
Accumulated other comprehensive income, net of tax | 23,494 | 16,624 |
Treasury stock, at cost (10,244,672 and 10,095,416 shares) | -445,599 | -435,463 |
Total shareholders’ equity | 697,659 | 656,758 |
Total liabilities and shareholders’ equity | $2,384,812 | $2,317,265 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Fixed maturities, amortized costs | $1,412,417 | $1,345,077 |
Equity securities, cost | 77,862 | 74,718 |
Short-term investments, cost | 803 | 2,597 |
Agents' balances and premium receivable, allowance for doubtful accounts | 15,510 | 15,884 |
Property and equipment, accumulated depreciation | 63,929 | 53,368 |
Recoverable from reinsurers, paid losses and loss adjustement expenses | 161 | 77 |
Long-term debt | $291,044 | $272,632 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 21,728,032 | 21,599,047 |
Treasury stock, shares | 10,244,672 | 10,095,416 |
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, 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 | 24,319 | 0 | 0 | 24,319 | 0 | 0 |
Net change in postretirement benefit liability | -966 | 0 | 0 | 0 | -966 | 0 |
Change in unrealized gain on investments | 11,134 | 0 | 0 | 0 | 0 | |
Available-for-sale Securities, Change in Net Unrealized Holding Gain (Loss), Net of Tax, Excluding Other Than Temporary Impairment Portion | -5,866 | -5,866 | ||||
Change in non-credit component of impairment losses on fixed maturities | 1,365 | 0 | 0 | 0 | 1,365 | 0 |
Comprehensive income | 18,851 | |||||
Dividends paid to common shareholders | -10,544 | 0 | 0 | -10,544 | 0 | 0 |
Shares issued and share-based compensation expense, including tax benefit | 6,106 | 172 | 5,934 | 0 | 0 | 0 |
Acquisition of treasury stock | -19,960 | 0 | 0 | 0 | 0 | -19,960 |
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 | 32,633 | 0 | 0 | 32,633 | 0 | 0 |
Net change in postretirement benefit liability | 589 | 0 | 0 | 0 | 589 | 0 |
Change in unrealized gain on investments | -9,898 | 0 | 0 | 0 | 0 | |
Available-for-sale Securities, Change in Net Unrealized Holding Gain (Loss), Net of Tax, Excluding Other Than Temporary Impairment Portion | -12,724 | -12,724 | ||||
Change in non-credit component of impairment losses on fixed maturities | -1,091 | 0 | 0 | 0 | -1,091 | 0 |
Comprehensive income | 19,406 | |||||
Dividends paid to common shareholders | -13,821 | 0 | 0 | -13,821 | 0 | 0 |
Shares issued and share-based compensation expense, including tax benefit | 7,212 | 155 | 7,057 | 0 | 0 | 0 |
Acquisition of treasury stock | -12,282 | 0 | 0 | 0 | 0 | -12,282 |
Ending Balance at Dec. 31, 2013 | 656,758 | 21,684 | 368,902 | 685,011 | 16,624 | -435,463 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 57,201 | 0 | 0 | 57,201 | 0 | 0 |
Net change in postretirement benefit liability | 153 | 0 | 0 | 0 | 153 | 0 |
Change in unrealized gain on investments | 9,502 | 0 | 0 | 0 | 0 | |
Available-for-sale Securities, Change in Net Unrealized Holding Gain (Loss), Net of Tax, Excluding Other Than Temporary Impairment Portion | 6,810 | 6,810 | ||||
Change in non-credit component of impairment losses on fixed maturities | -93 | 0 | 0 | 0 | -93 | 0 |
Comprehensive income | 64,071 | |||||
Dividends paid to common shareholders | -16,562 | 0 | 0 | -16,562 | 0 | 0 |
Shares issued and share-based compensation expense, including tax benefit | 3,527 | 61 | 3,466 | 0 | 0 | 0 |
Acquisition of treasury stock | -10,136 | 0 | 0 | 0 | 0 | -10,136 |
Ending Balance at Dec. 31, 2014 | $697,659 | $21,745 | $372,368 | $725,651 | $23,494 | ($445,599) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Activities: | |||
Net earnings | $57,201 | $32,633 | $24,319 |
Adjustments: | |||
Depreciation | 10,803 | 9,030 | 8,565 |
Amortization | 21,952 | 18,936 | 9,122 |
Net realized gains on investments | -4,284 | -6,026 | -24,055 |
(Gain) loss on disposal of property and equipment | -16 | -120 | 52 |
Gain on sale of subsidiaries | 0 | 0 | -2,922 |
Loss on redemption of long-term debt | 0 | 0 | 13,595 |
Share-based compensation expense | 2,634 | 4,009 | 3,194 |
Excess tax benefits from share-based payment arrangements | -108 | -573 | -896 |
Activity related to rabbi trust | 48 | 126 | 65 |
Change in accrued investment income | -205 | -845 | -1,165 |
Change in agents’ balances and premium receivable | -32,299 | -24,183 | -44,535 |
Change in reinsurance receivables | -1,699 | -575 | -216 |
Change in deferred policy acquisition costs | -2,170 | -7 | -8,180 |
Change in other assets | 4,251 | 4,583 | -15,911 |
Change in unpaid losses and loss adjustment expenses | 21,600 | 73,683 | 77,491 |
Change in unearned premium | 23,256 | 27,862 | 63,614 |
Change in other liabilities | 5,056 | 4,725 | 36,234 |
Net cash provided by operating activities | 106,020 | 143,258 | 138,371 |
Investing Activities: | |||
Purchases of fixed maturities | -516,522 | -774,640 | -699,797 |
Purchases of equity securities | -6,600 | -11,100 | -69,002 |
Purchases of short-term investments | -7,920 | -5,798 | 0 |
Purchases of property and equipment | -18,641 | -17,840 | -9,235 |
Maturities and redemptions of fixed maturities | 167,011 | 193,421 | 182,292 |
Maturities and redemptions of short-term investments | 2,800 | 0 | 0 |
Proceeds from sale of subsidiary companies | 0 | 0 | 9,107 |
Proceeds from sale of fixed maturities | 238,893 | 454,647 | 452,127 |
Proceeds from sale of equity securities | 4,999 | 7,244 | 39,502 |
Proceeds from sale of short-term investments | 6,864 | 3,204 | 0 |
Proceeds from sale of property and equipment | 34 | 171 | 11 |
Net cash used in investing activities | -129,082 | -150,691 | -94,995 |
Financing Activities: | |||
Proceeds from stock options exercised and employee stock purchases | 784 | 3,203 | 2,911 |
Excess tax benefits from share-based payment arrangements | 108 | 573 | 896 |
Proceeds from issuance of long-term debt | 0 | 0 | 273,213 |
Redemption of long-term debt | 0 | 0 | -208,122 |
Principal payments under capital lease obligations | -840 | -882 | -673 |
Acquisition of treasury stock | -10,100 | -12,612 | -19,643 |
Dividends paid to shareholders | -16,562 | -13,821 | -10,544 |
Net cash (used in) provided by financing activities | -26,609 | -23,538 | 38,039 |
Net (decrease) increase in cash and cash equivalents | -49,670 | -30,971 | 81,415 |
Cash and cash equivalents at beginning of period | 134,211 | 165,182 | 83,767 |
Cash and cash equivalents at end of period | $84,541 | $134,211 | $165,182 |
Significant_Reporting_and_Acco
Significant Reporting and Accounting Policies | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Significant Reporting and Accounting Policies | Significant Reporting and Accounting Policies | ||||||||||||
Nature of Operations | |||||||||||||
We currently write personal automobile insurance with a concentration on nonstandard automobile insurance, mono-line commercial vehicle insurance and classic collector automobile insurance. Personal auto insurance accounts for 91% of our total gross written premium and we primarily write it in four states. We wrote approximately 50% of our personal auto gross written premium in the state of California during 2014. | |||||||||||||
Basis of Consolidation and Reporting | |||||||||||||
The accompanying consolidated financial statements include our accounts and those of our subsidiaries. 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 accurately match expenses with their related revenue streams and the elimination of all significant inter-company transactions and balances. | |||||||||||||
We revised the presentation of our Consolidated Statements of Earnings for the years ending 2013 and 2012 to correctly classify $98.4 million and $100.0 million, respectively, of installment and other fee income as a component of total revenues and to conform to our current-year presentation. Previously, installment and other fee income was presented net within our commissions and other underwriting expenses, which was not in compliance with GAAP, thereby understating both total revenues and total expenses by an equivalent amount. This revision is not considered to be material to previously issued financial statements since it has no effect on the results of operations, financial condition or cash flows in any period presented or in any previously issued financial statements. | |||||||||||||
We have evaluated events that occurred after December 31, 2014, for recognition or disclosure in our financial statements and the notes to the financial statements. | |||||||||||||
Schedules may not foot due to rounding. | |||||||||||||
Estimates | |||||||||||||
The preparation of the financial statements in conformity with generally accepted accounting principles of the United States requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Changes in circumstances could cause actual results to differ materially from those estimates. | |||||||||||||
Investments | |||||||||||||
We consider all fixed maturity securities “available for sale” and report them at fair value with unrealized gains or losses reported after-tax in accumulated other comprehensive income within shareholders' equity. We base the fair values of investments on prices quoted in the most active market for each security. If quoted prices are not available, we estimate fair value based on the fair value of comparable securities, discounted cash flow models or similar methods. We treat premium and discounts on mortgage-backed securities (“MBS”) and asset-backed securities (“ABS”) as a yield adjustment over the estimated life of the securities, adjusted for anticipated prepayments, using the interest method. We base prepayment assumptions on data from widely accepted third party data sources or internal estimates. We review the amortized cost and effective yield of the security periodically and adjust it to reflect actual prepayments and changes in expectations. For high credit quality MBS and ABS (those rated AA or above at the time of purchase), the adjustments to amortized cost are recorded as a charge or credit to net investment income in accordance with the retrospective method. For MBS and ABS rated below AA, we adjust the yield prospectively for any changes in estimated cash flows. | |||||||||||||
Gains or losses on securities are determined on the specific identification basis. When we consider impairment in the value of a specific investment other-than-temporary (“OTTI”), the cost basis of that investment is reduced. For fixed maturity securities that are OTTI, 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 OTTI, but we do not intend to and are not more than likely to be required to sell the security prior to its recovery to amortized cost, the amount of the impairment is separated into a credit loss component and the amount due to all other factors. 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 varies 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. | |||||||||||||
Securities having a fair value of approximately $21.2 million at December 31, 2014, were on deposit as required by regulatory authorities. | |||||||||||||
Cash and Cash Equivalents | |||||||||||||
We consider liquid investments having original maturities of three months or less when purchased to be cash equivalents for purposes of the financial statements. | |||||||||||||
Reinsurance | |||||||||||||
Our insurance subsidiaries cede insurance to other companies. To the extent that any reinsuring companies are unable to meet obligations under agreements covering reinsurance ceded, our insurance subsidiaries would remain liable. We estimate amounts recoverable from reinsurers in a manner consistent with the claim liability associated with the reinsured policies. Our insurance subsidiaries report as assets (a) the estimated reinsurance recoverable on unpaid losses and (b) amounts paid to reinsurers applicable to the unexpired terms of policies in force. | |||||||||||||
Deferred Policy Acquisition Costs (“DPAC”) | |||||||||||||
We defer and charge against income ratably over the terms of the related policies policy acquisition costs (principally commissions, premium taxes and other marketing and underwriting expenses) related to the successful production of premium writings. The method followed in computing DPAC limits the amount of such costs to their estimated realizable value without any consideration for anticipated investment income. Each quarter, we evaluate the recoverability of these costs. The DPAC amortization expense recognized in the Consolidated Statements of Earnings during 2014, 2013 and 2012 was $204.7 million, $206.7 million and $194.9 million, respectively. | |||||||||||||
Goodwill | |||||||||||||
In accordance with the Goodwill topic of the FASB Accounting Standards Codification (“FASC”), we perform impairment test procedures for goodwill on an annual basis. These procedures require us to calculate the fair value of goodwill, compare the result to our carrying value and record the amount of any shortfall as an impairment charge. | |||||||||||||
We performed this test as of October 1, 2014, using a variety of methods, including estimates of future discounted cash flows and comparisons of our market value to that of our major competitors. Our cash flow projections rely on assumptions that are subject to uncertainty, including premium growth, loss and loss adjustment expense ratios, interest rates and capital requirements. | |||||||||||||
The October 1, 2014, test results indicated that the fair value of our goodwill exceeded our carrying value and therefore no impairment charge was required at that date. Additionally, there was no indication of impairment at December 31, 2014. | |||||||||||||
Unpaid Losses and Loss Adjustment Expenses (“LAE”) | |||||||||||||
The net liabilities stated for unpaid claims and for expenses of investigation and adjustment of unpaid claims are based upon (a) the accumulation of case estimates for losses reported prior to the close of the accounting period on direct business written; (b) estimates received from ceding reinsurers and insurance pools and associations; (c) estimates of unreported losses based on past experience; (d) estimates based on experience of expenses for investigating and adjusting claims; and (e) the current state of the law and coverage litigation. These liabilities are subject to the impact of changes in claim amounts and frequency and other factors. We have not reduced liabilities for unpaid losses and LAE for reinsurance recoverables; such recoverables are recorded separately as assets. Changes in estimates of the liabilities for losses and LAE are reflected in the Consolidated Statements of Earnings in the period in which determined. In spite of the variability inherent in such estimates, we believe that the liabilities for unpaid losses and LAE are adequate. | |||||||||||||
Premium and Receivables | |||||||||||||
We earn insurance premium written over the terms of the policies on a pro rata basis. Unearned premium represents that portion of premium written which is applicable to the unexpired terms of policies in force. On reinsurance assumed from other insurance companies or written through various underwriting organizations, we base unearned premium on reports received from such companies and organizations. We provide insurance and related services to individuals and small commercial accounts throughout the United States and offer a variety of payment plans. We establish an allowance for doubtful accounts based on the relationship, on a policy basis, between receivables and unearned premium, or an aging analysis of past due balances. We charge off premium due from insureds if not collected within 90 days of the policies' expiration or cancellation dates. However, even after we charge off premium, attempts to collect the premium continue. | |||||||||||||
Income Taxes | |||||||||||||
We file a consolidated federal income tax return, which includes all 80% and greater owned U.S. subsidiaries. We and our 80% and greater owned subsidiaries are parties to a tax allocation agreement, which designates how members of the tax group share tax payments. In general, each subsidiary agrees to pay us taxes computed on a separate company taxable income basis. We agree to pay each subsidiary for the tax benefit, if any, of net losses used by other members of the consolidated group. | |||||||||||||
We calculate deferred income taxes using the “asset and liability method.” Under this method, deferred income tax assets and liabilities are determined based on differences between financial reporting and tax basis and are measured using enacted tax rates. We recognize deferred tax assets if it is more likely than not that a benefit will be realized. We aggregate current and deferred tax assets and liabilities on the Consolidated Balance Sheets. | |||||||||||||
Property and Equipment | |||||||||||||
We report property and equipment balances at cost less accumulated depreciation. Property and equipment, which consists of land, buildings, leasehold improvements, computer equipment, capitalized software and furniture and fixtures, consisted of the following balances as of December 31, 2014 ($ in millions): | |||||||||||||
Gross Asset | Accumulated Depreciation | Net Asset | |||||||||||
Real Estate Related | $ | 41.4 | $ | (6.5 | ) | $ | 34.9 | ||||||
Computer Equipment & Software | 66.1 | (48.4 | ) | 17.8 | |||||||||
Furniture & Fixtures | 12.2 | (9.0 | ) | 3.2 | |||||||||
$ | 119.8 | $ | (63.9 | ) | $ | 55.9 | |||||||
We recognized $1.8 million, net of accumulated depreciation of $0.9 million, of equipment held under capital leases in other assets on the Consolidated Balance Sheets with the related lease obligations recorded in other liabilities. We compute depreciation over the estimated useful lives of the assets using the straight-line method. Property and equipment is a separate line item on the Consolidated Balance Sheets and we allocate the related expenses, including amortization of assets recorded under capital leases, to one or more of the following line items on the Consolidated Statements of Earnings depending on the asset: losses and LAE, commissions and other underwriting expenses, corporate general and administrative expenses or other expenses. | |||||||||||||
Benefit Plans | |||||||||||||
We provide retirement benefits to qualified employees and healthcare and life insurance benefits to eligible retirees. We also provide post-employment benefits to former or inactive employees (primarily those on disability) who were not deemed retired under other company plans. The projected future cost of providing these benefits is expensed over the period the employees earn such benefits. | |||||||||||||
Recently Issued Accounting Standards | |||||||||||||
In May 2014 the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) related to the accounting for revenue from contracts with customers. Insurance contracts have been excluded from the scope of the guidance, which is effective for fiscal years beginning after December 15, 2016. We do not expect the adoption of this standard to have a material impact on our financial condition or results of operations. |
Fair_Value
Fair Value | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
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 | |||||||||||||||||
December 31, 2014 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash and cash equivalents | $ | 84,541 | $ | 0 | $ | 0 | $ | 84,541 | |||||||||
Fixed maturity securities: | |||||||||||||||||
U.S. government | 66,847 | 87 | 0 | 66,933 | |||||||||||||
State and municipal | 0 | 503,650 | 0 | 503,650 | |||||||||||||
Mortgage-backed securities: | |||||||||||||||||
Residential | 0 | 354,528 | 0 | 354,528 | |||||||||||||
Commercial | 0 | 50,838 | 0 | 50,838 | |||||||||||||
Total mortgage-backed securities | 0 | 405,366 | 0 | 405,366 | |||||||||||||
Collateralized mortgage obligations | 0 | 0 | 0 | 0 | |||||||||||||
Asset-backed securities | 0 | 58,457 | 150 | 58,607 | |||||||||||||
Corporates | 0 | 394,152 | 3,134 | 397,286 | |||||||||||||
Total fixed maturities | 66,847 | 1,361,711 | 3,285 | 1,431,843 | |||||||||||||
Equity securities | 94,408 | 0 | 0 | 94,408 | |||||||||||||
Short-term investments | 0 | 803 | 0 | 803 | |||||||||||||
Total cash and investments | $ | 245,795 | $ | 1,362,514 | $ | 3,285 | $ | 1,611,594 | |||||||||
Percentage of total cash and investments | 15.3 | % | 84.5 | % | 0.2 | % | 100 | % | |||||||||
Fair Value | |||||||||||||||||
December 31, 2013 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash and cash equivalents | $ | 134,211 | $ | 0 | $ | 0 | $ | 134,211 | |||||||||
Fixed maturity securities: | |||||||||||||||||
U.S. government | 64,496 | 171 | 0 | 64,666 | |||||||||||||
State and municipal | 0 | 487,111 | 0 | 487,111 | |||||||||||||
Mortgage-backed securities: | |||||||||||||||||
Residential | 0 | 323,346 | 0 | 323,346 | |||||||||||||
Commercial | 0 | 35,816 | 0 | 35,816 | |||||||||||||
Total mortgage-backed securities | 0 | 359,162 | 0 | 359,162 | |||||||||||||
Collateralized mortgage obligations | 0 | 1,291 | 0 | 1,291 | |||||||||||||
Asset-backed securities | 0 | 70,573 | 686 | 71,259 | |||||||||||||
Corporates | 0 | 365,642 | 5,175 | 370,816 | |||||||||||||
Total fixed maturities | 64,496 | 1,283,949 | 5,860 | 1,354,305 | |||||||||||||
Equity securities | 91,127 | 0 | 0 | 91,127 | |||||||||||||
Short-term investments | 1,200 | 1,396 | 0 | 2,596 | |||||||||||||
Total cash and investments | $ | 291,033 | $ | 1,285,345 | $ | 5,860 | $ | 1,582,238 | |||||||||
Percentage of total cash and investments | 18.4 | % | 81.2 | % | 0.4 | % | 100 | % | |||||||||
We do not report our long-term debt at fair value in the Consolidated Balance Sheets. The $291.0 million and $272.6 million fair value of our long-term debt at December 31, 2014, and December 31, 2013, respectively, would be included in Level 2 of the fair value hierarchy if it were reported at fair value. | |||||||||||||||||
Level 1 includes cash and cash equivalents, U.S. Treasury securities, an exchange-traded fund and equities invested in a rabbi trust. Level 2 securities are comprised of securities whose fair value was determined using observable market inputs. Level 3 securities are comprised of (i) securities for which there is no active or inactive market for similar instruments, (ii) securities whose fair value is determined based on unobservable inputs and (iii) securities, other than those backed by the U.S. Government, that are not rated by a nationally recognized statistical rating organization ("NRSRO"). Transfers between levels are recognized at the beginning of the reporting period. | |||||||||||||||||
A third party nationally recognized pricing service provides the fair value of securities in Level 2. We review the third party pricing methodologies quarterly and test for significant differences between the market price used to value the security and recent sales activity. | |||||||||||||||||
The following tables present the changes in the Level 3 fair value category ($ in thousands): | |||||||||||||||||
Twelve months ended | |||||||||||||||||
31-Dec-14 | |||||||||||||||||
U.S. Government | Corporates | Asset-Backed Securities | Total | ||||||||||||||
Balance at beginning of period | $ | 0 | $ | 5,175 | $ | 686 | $ | 5,860 | |||||||||
Total gains or (losses), unrealized or realized | |||||||||||||||||
Included in net earnings | 0 | 274 | 0 | 274 | |||||||||||||
Included in other comprehensive income | 0 | (230 | ) | (1 | ) | (231 | ) | ||||||||||
Purchases | 0 | 0 | 0 | 0 | |||||||||||||
Sales | 0 | (880 | ) | 0 | (880 | ) | |||||||||||
Settlements | 0 | (1,204 | ) | (534 | ) | (1,739 | ) | ||||||||||
Transfers in | 0 | 0 | 0 | 0 | |||||||||||||
Transfers out | 0 | 0 | 0 | 0 | |||||||||||||
Balance at end of period | $ | 0 | $ | 3,134 | $ | 150 | $ | 3,285 | |||||||||
Twelve months ended | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
U.S. Government | Corporates | Asset-Backed Securities | Total | ||||||||||||||
Balance at beginning of period | $ | 3,712 | $ | 9,101 | $ | 0 | $ | 12,813 | |||||||||
Total gains or (losses), unrealized or realized | |||||||||||||||||
Included in net earnings | 268 | 583 | 0 | 852 | |||||||||||||
Included in other comprehensive income | (418 | ) | (477 | ) | 1 | (895 | ) | ||||||||||
Purchases | 0 | 0 | 0 | 0 | |||||||||||||
Sales | (2,968 | ) | (877 | ) | 0 | (3,845 | ) | ||||||||||
Settlements | (594 | ) | (1,824 | ) | (310 | ) | (2,729 | ) | |||||||||
Transfers in | 0 | 0 | 995 | 995 | |||||||||||||
Transfers out | 0 | (1,331 | ) | 0 | (1,331 | ) | |||||||||||
Balance at end of period | $ | 0 | $ | 5,175 | $ | 686 | $ | 5,860 | |||||||||
Of the $3.3 million fair value of securities in Level 3 at December 31, 2014, which consisted of seven securities, we priced five based on non-binding broker quotes, one price was provided by our unaffiliated money manager 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 transferred approximately $1.3 million of securities from Level 3 into Level 2 during 2013 because we obtained a price for those securities from a third party nationally recognized pricing service. We transferred approximately $1.0 million of securities from Level 2 into Level 3 during 2013 because we could not obtain a price from a third party nationally recognized pricing service or because a rating by a NRSRO was not available. There were no transfers between Levels 2 and 3 during 2014 and there were no transfers between Levels 1 and 2 during 2014 or 2013. | |||||||||||||||||
The gains or losses included in net earnings are included in the line item "Net realized gains on investments" in the Consolidated Statements of Earnings. We recognize the net gains or losses included in other comprehensive income in the line item "Unrealized gains (losses) on investments, net" in the Consolidated Statements of Comprehensive Income and the line item "Change in unrealized gain on investments" or "Change in non-credit component of impairment losses on fixed maturities" in the Consolidated Statements of Changes in Shareholders’ Equity. | |||||||||||||||||
The following table presents the carrying value and estimated fair value of our financial instruments ($ in thousands): | |||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||
Value | Value | Value | Value | ||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 84,541 | $ | 84,541 | $ | 134,211 | $ | 134,211 | |||||||||
Available-for-sale securities | |||||||||||||||||
Fixed maturities | 1,431,843 | 1,431,843 | 1,354,305 | 1,354,305 | |||||||||||||
Equity securities | 94,408 | 94,408 | 91,127 | 91,127 | |||||||||||||
Short-term investments | 803 | 803 | 2,596 | 2,596 | |||||||||||||
Total cash and investments | $ | 1,611,594 | $ | 1,611,594 | $ | 1,582,238 | $ | 1,582,238 | |||||||||
Liabilities: | |||||||||||||||||
Long-term debt | $ | 275,000 | $ | 291,044 | $ | 275,000 | $ | 272,632 | |||||||||
See Note 3 to the Consolidated Financial Statements for additional information on investments and Note 4 for additional information on long-term debt. |
Investments
Investments | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||
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 twelve months ended December 31, 2014, were $250.8 million. These proceeds are net of $4.5 million of receivable for securities sold during 2014 that had not settled at December 31, 2014. The proceeds from sales of securities for the twelve months ended December 31, 2013, were $465.1 million. These proceeds are net of $2.8 million of receivable for securities sold during 2013 that had not settled at December 31, 2013. The proceeds from sales of securities for the twelve months ended December 31, 2012, were $491.6 million. These proceeds are net of $48.5 million of receivable for securities sold during 2012 that had not settled at December 31, 2012. | ||||||||||||||||||||||||||
Gross gains of $5.1 million, $9.5 million and $26.0 million were realized on sales of available for sale securities during the years ending 2014, 2013, and 2012, respectively. Gross losses of $0.7 million, $2.0 million and $0.6 million were realized on sales of available for sale securities during the years ending 2014, 2013, and 2012, respectively. Gains or losses on securities are determined on a specific identification basis. | ||||||||||||||||||||||||||
Summarized information for the major categories of our investment portfolio follows ($ in thousands): | ||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | OTTI | ||||||||||||||||||||||
Cost or Cost | Unrealized | Unrealized | Recognized in | |||||||||||||||||||||||
Gains | Losses | Accumulated | ||||||||||||||||||||||||
OCI(1) | ||||||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||||
U.S. government | $ | 66,625 | $ | 502 | $ | (193 | ) | $ | 66,933 | $ | 0 | |||||||||||||||
State and municipal | 493,350 | 10,637 | (337 | ) | 503,650 | (69 | ) | |||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||
Residential | 349,371 | 6,547 | (1,390 | ) | 354,528 | (2,914 | ) | |||||||||||||||||||
Commercial | 50,914 | 182 | (258 | ) | 50,838 | 0 | ||||||||||||||||||||
Total mortgage-backed securities | $ | 400,285 | $ | 6,729 | $ | (1,648 | ) | $ | 405,366 | $ | (2,914 | ) | ||||||||||||||
Collateralized mortgage obligations | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
Asset-backed securities | 58,546 | 131 | (70 | ) | 58,607 | (8 | ) | |||||||||||||||||||
Corporates | 393,611 | 5,999 | (2,324 | ) | 397,286 | (441 | ) | |||||||||||||||||||
Total fixed maturities | $ | 1,412,417 | $ | 23,998 | $ | (4,572 | ) | $ | 1,431,843 | $ | (3,433 | ) | ||||||||||||||
Equity securities | 77,862 | 16,546 | 0 | 94,408 | 0 | |||||||||||||||||||||
Short-term investments | 803 | 0 | (1 | ) | 803 | 0 | ||||||||||||||||||||
Total | $ | 1,491,082 | $ | 40,544 | $ | (4,573 | ) | $ | 1,527,054 | $ | (3,433 | ) | ||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | OTTI | ||||||||||||||||||||||
Cost or Cost | Unrealized | Unrealized | Recognized in | |||||||||||||||||||||||
Gains | Losses | Accumulated | ||||||||||||||||||||||||
OCI(1) | ||||||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||||
U.S. government | $ | 64,194 | $ | 900 | $ | (427 | ) | $ | 64,666 | $ | 0 | |||||||||||||||
State and municipal | 478,092 | 10,789 | (1,771 | ) | 487,111 | (73 | ) | |||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||
Residential | 330,169 | 1,985 | (8,809 | ) | 323,346 | (2,435 | ) | |||||||||||||||||||
Commercial | 35,781 | 339 | (304 | ) | 35,816 | 0 | ||||||||||||||||||||
Total mortgage-backed securities | $ | 365,950 | $ | 2,324 | $ | (9,113 | ) | $ | 359,162 | $ | (2,435 | ) | ||||||||||||||
Collateralized mortgage obligations | 1,228 | 63 | 0 | 1,291 | (161 | ) | ||||||||||||||||||||
Asset-backed securities | 71,183 | 178 | (103 | ) | 71,259 | (8 | ) | |||||||||||||||||||
Corporates | 364,430 | 9,086 | (2,700 | ) | 370,816 | (612 | ) | |||||||||||||||||||
Total fixed maturities | $ | 1,345,077 | $ | 23,340 | $ | (14,112 | ) | $ | 1,354,305 | $ | (3,290 | ) | ||||||||||||||
Equity securities | 74,718 | 16,409 | 0 | 91,127 | 0 | |||||||||||||||||||||
Short-term investments | 2,595 | 1 | 0 | 2,596 | 0 | |||||||||||||||||||||
Total | $ | 1,422,390 | $ | 39,750 | $ | (14,112 | ) | $ | 1,448,027 | $ | (3,290 | ) | ||||||||||||||
(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 table sets 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 | |||||||||||||||||||||||||
December 31, 2014 | 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 | |||||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||||
U.S. government | 2 | $ | 5,275 | $ | (13 | ) | 0.3 | % | 8 | $ | 21,051 | $ | (180 | ) | 0.8 | % | ||||||||||
State and municipal | 45 | 108,721 | (290 | ) | 0.3 | % | 2 | 4,183 | (47 | ) | 1.1 | % | ||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||
Residential | 24 | 12,855 | (34 | ) | 0.3 | % | 109 | 100,752 | (1,356 | ) | 1.3 | % | ||||||||||||||
Commercial | 8 | 15,638 | (122 | ) | 0.8 | % | 5 | 9,519 | (136 | ) | 1.4 | % | ||||||||||||||
Total mortgage-backed securities | 32 | 28,493 | (156 | ) | 0.5 | % | 114 | 110,271 | (1,492 | ) | 1.3 | % | ||||||||||||||
Asset-backed securities | 24 | 23,351 | (60 | ) | 0.3 | % | 2 | 1,150 | (9 | ) | 0.8 | % | ||||||||||||||
Corporate | 103 | 142,046 | (1,820 | ) | 1.3 | % | 16 | 19,865 | (503 | ) | 2.5 | % | ||||||||||||||
Total fixed maturities | 206 | 307,886 | (2,340 | ) | 0.8 | % | 142 | 156,521 | (2,232 | ) | 1.4 | % | ||||||||||||||
Equity securities | 0 | 0 | 0 | 0 | % | 0 | 0 | 0 | 0 | % | ||||||||||||||||
Short-term investments | 2 | 803 | (1 | ) | 0.1 | % | 0 | 0 | 0 | 0 | % | |||||||||||||||
Total | 208 | $ | 308,689 | $ | (2,341 | ) | 0.8 | % | 142 | $ | 156,521 | $ | (2,232 | ) | 1.4 | % | ||||||||||
Less than 12 Months | 12 Months or More | |||||||||||||||||||||||||
December 31, 2013 | 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 | |||||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||||
U.S. government | 11 | $ | 26,396 | $ | (427 | ) | 1.6 | % | 0 | $ | 0 | $ | 0 | 0 | % | |||||||||||
State and municipal | 51 | 121,431 | (1,425 | ) | 1.2 | % | 4 | 8,062 | (346 | ) | 4.1 | % | ||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||
Residential | 229 | 207,821 | (7,064 | ) | 3.3 | % | 34 | 39,659 | (1,744 | ) | 4.2 | % | ||||||||||||||
Commercial | 11 | 22,311 | (290 | ) | 1.3 | % | 1 | 756 | (14 | ) | 1.8 | % | ||||||||||||||
Total mortgage-backed securities | 240 | 230,133 | (7,354 | ) | 3.1 | % | 35 | 40,415 | (1,758 | ) | 4.2 | % | ||||||||||||||
Asset-backed securities | 18 | 14,738 | (103 | ) | 0.7 | % | 0 | 0 | 0 | 0 | % | |||||||||||||||
Corporate | 90 | 115,735 | (2,621 | ) | 2.2 | % | 1 | 1,212 | (79 | ) | 6.1 | % | ||||||||||||||
Total fixed maturities | 410 | 508,432 | (11,929 | ) | 2.3 | % | 40 | 49,688 | (2,183 | ) | 4.2 | % | ||||||||||||||
Equity securities | 0 | 0 | 0 | 0 | % | 0 | 0 | 0 | 0 | % | ||||||||||||||||
Short-term investments | 0 | 0 | 0 | 0 | % | 0 | 0 | 0 | 0 | % | ||||||||||||||||
Total | 410 | $ | 508,432 | $ | (11,929 | ) | 2.3 | % | 40 | $ | 49,688 | $ | (2,183 | ) | 4.2 | % | ||||||||||
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: | ||||||||||||||||||||||||||
• | whether the unrealized loss is credit-driven or a result of changes in market interest rates; | |||||||||||||||||||||||||
• | the length of time the security’s market value has been below its cost; | |||||||||||||||||||||||||
• | the extent to which fair value is less than cost basis; | |||||||||||||||||||||||||
• | the intent to sell the security; | |||||||||||||||||||||||||
• | whether it is more likely than not that there will be a requirement to sell the security before its anticipated recovery; | |||||||||||||||||||||||||
• | 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 either of the following: a fair value of less than 95% of its book value or an unrealized loss that equals or exceeds $100,000. | ||||||||||||||||||||||||||
The following table summarizes those securities, excluding the rabbi trust, with unrealized gains or losses: | ||||||||||||||||||||||||||
31-Dec-14 | December 31, 2013 | |||||||||||||||||||||||||
Number of positions held with unrealized: | ||||||||||||||||||||||||||
Gains | 778 | 590 | ||||||||||||||||||||||||
Losses | 350 | 450 | ||||||||||||||||||||||||
Number of positions held that individually exceed unrealized: | ||||||||||||||||||||||||||
Gains of $500,000 | 3 | 1 | ||||||||||||||||||||||||
Losses of $500,000 | 0 | 0 | ||||||||||||||||||||||||
Percentage of positions held with unrealized: | ||||||||||||||||||||||||||
Gains that were investment grade | 92 | % | 81 | % | ||||||||||||||||||||||
Losses that were investment grade | 84 | % | 93 | % | ||||||||||||||||||||||
Percentage of fair value held with unrealized: | ||||||||||||||||||||||||||
Gains that were investment grade | 94 | % | 88 | % | ||||||||||||||||||||||
Losses that were investment grade | 86 | % | 95 | % | ||||||||||||||||||||||
The following table sets forth the amount of unrealized losses, excluding the rabbi trust, by age and severity at December 31, 2014 ($ in thousands): | ||||||||||||||||||||||||||
Fair Value of | Total Gross | Less Than 5%* | 5% - 10%* | Total Gross | ||||||||||||||||||||||
Securities with | Unrealized | Greater | ||||||||||||||||||||||||
Unrealized | Losses | Than 10%* | ||||||||||||||||||||||||
Losses | ||||||||||||||||||||||||||
Age of Unrealized Losses: | ||||||||||||||||||||||||||
Three months or less | $ | 245,391 | $ | (1,077 | ) | $ | (1,004 | ) | $ | (74 | ) | $ | 0 | |||||||||||||
Four months through six months | 49,083 | (1,018 | ) | (585 | ) | (334 | ) | (99 | ) | |||||||||||||||||
Seven months through nine months | 11,639 | (171 | ) | (135 | ) | (36 | ) | 0 | ||||||||||||||||||
Ten months through twelve months | 2,576 | (74 | ) | (74 | ) | 0 | 0 | |||||||||||||||||||
Greater than twelve months | 156,521 | (2,232 | ) | (2,044 | ) | 0 | (188 | ) | ||||||||||||||||||
Total | $ | 465,210 | $ | (4,573 | ) | $ | (3,842 | ) | $ | (443 | ) | $ | (288 | ) | ||||||||||||
* | As a percentage of amortized cost or cost. | |||||||||||||||||||||||||
The change in unrealized gains (losses) on securities included the following ($ in thousands): | ||||||||||||||||||||||||||
Pretax | ||||||||||||||||||||||||||
Fixed Maturities | Equity Securities | Short-Term Investments | Tax Effects | Net | ||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||
Unrealized holding gains (losses) on securities arising during the period | $ | 13,174 | $ | 1,440 | $ | 4 | $ | (5,116 | ) | $ | 9,502 | |||||||||||||||
Realized (gains) losses included in net earnings | (3,137 | ) | (1,303 | ) | (5 | ) | 1,556 | (2,889 | ) | |||||||||||||||||
Impairment losses recognized in net earnings | 160 | 0 | 0 | (56 | ) | 104 | ||||||||||||||||||||
Change in unrealized gain (loss) on securities, net | $ | 10,198 | $ | 137 | $ | (1 | ) | $ | (3,617 | ) | $ | 6,717 | ||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||
Unrealized holding gains (losses) on securities arising during the period | $ | (29,199 | ) | $ | 13,971 | $ | 1 | $ | 5,330 | $ | (9,898 | ) | ||||||||||||||
Realized (gains) losses included in net earnings | (6,818 | ) | (677 | ) | 0 | 2,623 | (4,872 | ) | ||||||||||||||||||
Impairment losses recognized in net earnings | 1,468 | 0 | 0 | (514 | ) | 954 | ||||||||||||||||||||
Change in unrealized gain (loss) on securities, net | $ | (34,549 | ) | $ | 13,294 | $ | 1 | $ | 7,439 | $ | (13,815 | ) | ||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||
Unrealized holding gains (losses) on securities arising during the period | $ | 10,678 | $ | 6,451 | $ | 0 | $ | (5,995 | ) | $ | 11,134 | |||||||||||||||
Realized (gains) losses included in net earnings(1) | (11,594 | ) | (13,853 | ) | 0 | 8,907 | (16,541 | ) | ||||||||||||||||||
Impairment losses recognized in net earnings | 1,393 | 0 | 0 | (487 | ) | 905 | ||||||||||||||||||||
Change in unrealized gain (loss) on securities, net | $ | 476 | $ | (7,402 | ) | $ | 0 | $ | 2,424 | $ | (4,502 | ) | ||||||||||||||
(1) The tax effect is exclusive of the release of the deferred tax valuation allowance of $6.4 million in 2012. | ||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||
to amortized cost, we separate the amount of the impairment into a credit loss component and the amount due to all other | ||||||||||||||||||||||||||
factors. 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. | ||||||||||||||||||||||||||
For our securities held with unrealized losses, we believe, based on our analysis, that we will recover our cost basis in these securities and we do not intend to sell the securities nor is it more likely than not that there will be a requirement to sell the securities before they recover in value. | ||||||||||||||||||||||||||
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): | ||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
Balance at beginning of year | $ | 956 | $ | 487 | ||||||||||||||||||||||
Additions for: | ||||||||||||||||||||||||||
Previously impaired securities | 19 | 27 | ||||||||||||||||||||||||
Newly impaired securities | 15 | 659 | ||||||||||||||||||||||||
Previously all credit | 0 | 26 | ||||||||||||||||||||||||
Reductions for: | ||||||||||||||||||||||||||
Securities sold and paydowns | (139 | ) | (206 | ) | ||||||||||||||||||||||
Securities that no longer have a non-credit component | 0 | (37 | ) | |||||||||||||||||||||||
Balance at end of year | $ | 852 | $ | 956 | ||||||||||||||||||||||
The table below sets forth the scheduled maturities of fixed maturity securities at December 31, 2014, 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. | ||||||||||||||||||||||||||
Amortized | ||||||||||||||||||||||||||
Fair Value | 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 | $ | 89,487 | $ | 9,567 | $ | 1,102 | $ | 100,156 | $ | 99,523 | ||||||||||||||||
After one year through five years | 392,906 | 190,302 | 1,353 | 584,560 | 575,609 | |||||||||||||||||||||
After five years through ten years | 165,735 | 100,053 | 1,777 | 267,565 | 263,488 | |||||||||||||||||||||
After ten years | 11,741 | 1,219 | 2,628 | 15,588 | 14,966 | |||||||||||||||||||||
Mortgage- and asset-backed | 297,407 | 163,266 | 3,301 | 463,973 | 458,831 | |||||||||||||||||||||
Total | $ | 957,275 | $ | 464,407 | $ | 10,160 | $ | 1,431,843 | $ | 1,412,417 | ||||||||||||||||
Net Investment Income | ||||||||||||||||||||||||||
The following table shows investment income earned and investment expenses incurred ($ in thousands): | ||||||||||||||||||||||||||
Twelve months ended December 31, | ||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||
Investment income: | ||||||||||||||||||||||||||
Interest income on fixed maturities, cash and cash equivalents | $ | 35,596 | $ | 36,113 | $ | 38,234 | ||||||||||||||||||||
Dividends on equity securities | 2,245 | 1,711 | 1,415 | |||||||||||||||||||||||
Gross investment income | 37,841 | 37,825 | 39,649 | |||||||||||||||||||||||
Investment expenses | (2,211 | ) | (2,279 | ) | (2,077 | ) | ||||||||||||||||||||
Net investment income | $ | 35,629 | $ | 35,546 | $ | 37,571 | ||||||||||||||||||||
LongTerm_Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-Term Debt |
In February 2004 we issued $200 million principal of senior notes due February 2014 (the “5.5% Senior Notes”). The 5.5% | |
Senior Notes accrued interest at an effective yield of 5.55% and bore a coupon of 5.5%, payable semiannually. At the time we | |
issued the 5.5% Senior Notes, we capitalized $2.1 million of debt issuance costs, which we amortized over the term of the 5.5% | |
Senior Notes. During 2009, we repurchased $5.0 million of the 5.5% Senior Notes, bringing the outstanding principal to $195.0 million. The 5.5% Senior Notes were fully redeemed on October 17, 2012, at a price of 106.729%, or $208.1 million, plus accrued interest of $1.8 million. The remaining $0.4 million issuance costs were written off at redemption. | |
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 | |
December 31, 2014, fair value of $291.0 million using a 194 basis point spread to the ten year U.S. Treasury Note of 2.173%. | |
We paid interest on long-term debt of $13.8 million, $13.8 million and $12.5 million for the twelve months ended December 31, 2014, 2013 and 2012, respectively. | |
In August 2014 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 December 31, 2014, there were no borrowings outstanding under the Credit Agreement. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | Income Taxes | |||||||||||
In the years 2014, 2013 and 2012, we paid $20.9 million, $7.6 million and $9.0 million, respectively, in taxes. The following is a reconciliation of income taxes at the statutory rate of 35.0% to the effective provision for income taxes as shown in the Consolidated Statements of Earnings ($ in thousands): | ||||||||||||
Twelve Months December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Earnings before income taxes | $ | 83,138 | $ | 45,078 | $ | 22,088 | ||||||
Income taxes at statutory rate | 29,098 | 15,777 | 7,731 | |||||||||
Effect of: | ||||||||||||
Dividends-received deduction | (469 | ) | (357 | ) | (296 | ) | ||||||
Tax-exempt interest | (2,752 | ) | (2,743 | ) | (3,294 | ) | ||||||
Adjustment to valuation allowance | 1 | (48 | ) | (6,402 | ) | |||||||
Other | 58 | (184 | ) | 30 | ||||||||
Provision for income taxes as shown on the Consolidated Statements of Earnings | $ | 25,936 | $ | 12,445 | $ | (2,231 | ) | |||||
GAAP effective tax rate | 31.2 | % | 27.6 | % | (10.1 | )% | ||||||
The total income tax provision (benefit) consists of ($ in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current | $ | 25,342 | $ | 10,541 | $ | 3,605 | ||||||
Deferred | 594 | 1,904 | (5,836 | ) | ||||||||
Provision for income taxes | $ | 25,936 | $ | 12,445 | $ | (2,231 | ) | |||||
A full valuation allowance was maintained on the deferred tax asset relating to the credit portion of the reserve for other-than-temporarily impaired securities. In 2012, a security which accounted for approximately 77% of the balance in the reserve for other-than-temporarily impaired securities was sold. As of December 31, 2012, management determined that it was more likely than not that the deferred tax asset relating to the reserve for other-than-temporarily impaired securities would be recognized and the valuation allowance was released through the provision for income taxes. | ||||||||||||
Deferred income tax assets and liabilities reflect temporary differences between the carrying amounts of assets and liabilities recognized for financial reporting purposes and the amounts recognized for tax purposes. The significant components of deferred tax assets and liabilities included in the Consolidated Balance Sheets were as follows ($ in thousands): | ||||||||||||
As of December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
Discount on loss reserves | $ | 6,001 | $ | 7,045 | ||||||||
Unearned premium reserve | 40,918 | 39,401 | ||||||||||
Bad debts | 5,428 | 5,559 | ||||||||||
Accrued bonuses | 2,791 | 2,442 | ||||||||||
Deferred compensation | 5,372 | 4,842 | ||||||||||
Long-term incentive compensation | 1,193 | 2,040 | ||||||||||
Other | 5,157 | 5,473 | ||||||||||
Gross deferred tax assets | $ | 66,860 | $ | 66,803 | ||||||||
Valuation allowance for deferred tax assets | (166 | ) | (165 | ) | ||||||||
Total deferred tax assets | $ | 66,694 | $ | 66,638 | ||||||||
Deferred tax liabilities: | ||||||||||||
Deferred policy acquisition costs | $ | (31,650 | ) | $ | (30,890 | ) | ||||||
Investment securities – unrealized gains | (12,590 | ) | (8,973 | ) | ||||||||
Other | (1,951 | ) | (2,111 | ) | ||||||||
Total deferred tax liabilities | $ | (46,191 | ) | $ | (41,975 | ) | ||||||
Net deferred tax assets | $ | 20,503 | $ | 24,663 | ||||||||
Current income taxes | (481 | ) | 3,985 | |||||||||
Current and deferred income taxes | $ | 20,022 | $ | 28,648 | ||||||||
An analysis is performed on a quarterly basis to determine if there is sufficient evidence that it is more likely than not that the deferred tax assets will be recognized for tax purposes. The evidence that is considered in assessing the need for a valuation allowance includes: (i) sufficient future taxable income; (ii) sufficient ordinary and capital taxable income in carryback periods; (iii) the reversals of existing taxable temporary differences; and (iv) tax planning strategies that could be utilized to accelerate the recognition of capital gains in the future. Based on this evaluation, it is management’s belief the only valuation allowance required at December 31, 2014, and December 31, 2013, related to the net operating loss carryover for an inactive company that is required to file its federal tax return on a separate company basis. | ||||||||||||
We did not have any gross unrecognized tax benefits that would exceed a materiality threshold and therefore, there was no reduction to Retained Earnings in our Consolidated Balance Sheets at January 1, 2014. The gross unrecognized tax benefit did not exceed the materiality threshold as of December 31, 2014. | ||||||||||||
The Company is not currently under examination by the IRS and the statute of limitations has expired for all years prior to 2011. |
Computation_Of_Earnings_Per_Sh
Computation Of Earnings Per Share | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Computation of 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): | ||||||||||||
Twelve months ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net earnings | $ | 57,201 | $ | 32,633 | $ | 24,319 | ||||||
Average basic shares outstanding | 11,440 | 11,451 | 11,660 | |||||||||
Basic net earnings per share | $ | 5 | $ | 2.85 | $ | 2.09 | ||||||
Average basic shares outstanding | 11,440 | 11,451 | 11,660 | |||||||||
Restricted stock not vested | 37 | 46 | 28 | |||||||||
Dilutive effect of assumed option exercises | 1 | 29 | 97 | |||||||||
Dilutive effect of Performance Share Plan | 84 | 130 | 156 | |||||||||
Average diluted shares outstanding | 11,562 | 11,657 | 11,941 | |||||||||
Diluted net earnings per share | $ | 4.95 | $ | 2.8 | $ | 2.04 | ||||||
ShareBased_Compensation
Share-Based Compensation | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||
Share-Based Compensation | Share-Based Compensation | |||||||||||||||||||||||
We established the Amended and Restated 2013 Stock Incentive Plan (the “2013 Plan”), which was approved by the Company’s shareholders on May 21, 2013. Under the 2013 Plan, 750,000 shares are authorized and reserved for issuance. Upon the approval by the shareholders of the 2013 Plan, we became prohibited from issuing any further grants under the Restricted Stock Plan, Directors’ Plan, Performance Share Plan, or Stock Option Plan (collectively, the "Prior Plans"). However, all outstanding awards under the Prior Plans remain outstanding and will continue to be administered and settled with the applicable provisions of the Prior Plans. | ||||||||||||||||||||||||
The number of shares issued, by plan, for share-based compensation arrangements was as follows: | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
2013 Plan | Prior Plans | 2013 Plan | Prior Plans | |||||||||||||||||||||
Restricted Stock | 46,328 | 0 | 0 | 0 | 0 | |||||||||||||||||||
Non-employee Directors’ Stock | 8,016 | 0 | 6,517 | 0 | 5,502 | |||||||||||||||||||
Performance Shares | 0 | 55,245 | 0 | 17,934 | 49,098 | |||||||||||||||||||
Total | 54,344 | 55,245 | 6,517 | 17,934 | 54,600 | |||||||||||||||||||
The amount of total compensation cost for share-based compensation arrangements was as follows ($ in thousands): | ||||||||||||||||||||||||
Twelve months ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Expense | Tax | Expense | Tax | Expense | Tax | |||||||||||||||||||
Recognized in | Benefit | Recognized in | Benefit | Recognized in | Benefit | |||||||||||||||||||
Earnings | Earnings | Earnings | ||||||||||||||||||||||
Restricted Stock | $ | 1,126 | $ | 394 | $ | 1,190 | $ | 417 | $ | 1,190 | $ | 417 | ||||||||||||
Non-employee Directors’ Stock Ownership Plan | 520 | 182 | 385 | 135 | 300 | 105 | ||||||||||||||||||
Employee Stock Purchase Plan | 55 | 0 | 54 | 0 | 55 | 0 | ||||||||||||||||||
Performance Shares | 933 | 327 | 2,380 | 833 | 1,704 | 596 | ||||||||||||||||||
Total | $ | 2,634 | $ | 903 | $ | 4,009 | $ | 1,384 | $ | 3,249 | $ | 1,118 | ||||||||||||
Restricted Stock | ||||||||||||||||||||||||
On August 2, 2011, the Compensation Committee ("the Committee") approved the grant of 72,234 shares of restricted stock to certain officers under the Restricted Stock Plan. These shares vested in full on August 2, 2014. On August 5, 2014, the Committee approved the grant of an additional 46,328 shares of restricted stock to certain officers under the 2013 Plan. These shares will vest in full on August 5, 2017. During the vesting period, the shares of restricted stock will not have voting rights but will accrue dividends, which we will not pay until the shares have vested. We treat the restricted shares as issued and outstanding for calculation of diluted earnings per share only. Until fully vested, we will not consider the shares issued and outstanding for purposes of the basic earnings per share calculation. | ||||||||||||||||||||||||
Restricted Stock | Number of | Weighted-average | ||||||||||||||||||||||
Shares | Grant Date Fair Value | |||||||||||||||||||||||
Non-vested as of January 1, 2014 | 72,234 | $49.44 | ||||||||||||||||||||||
Granted | 46,328 | $67.04 | ||||||||||||||||||||||
Vested | (72,234 | ) | $49.44 | |||||||||||||||||||||
Non-vested as of December 31, 2014 | 46,328 | $67.04 | ||||||||||||||||||||||
Non-employee Directors’ Stock | ||||||||||||||||||||||||
Shares are issued to non-employee directors on or about June 1 of each year as part of the compensation provided and to provide for stock ownership requirements for our non-employee directors. We restrict these shares from sale or transfer by any recipient for six months from the grant date. These shares are treated as issued and outstanding for basic and diluted earnings per share calculations. | ||||||||||||||||||||||||
Performance Shares | ||||||||||||||||||||||||
The purpose of the Performance Shares is to align further the interest of management with our long-term shareholders by including performance-based compensation, payable in shares of common stock, as a component of an executive’s annual compensation. The Committee administers the Performance Shares and (i) establishes the performance goals, which may include but are not limited to, combined ratio, premium growth, growth within certain geographic areas and earnings per share or return on equity over the course of the upcoming three year period, (ii) determines the Performance Share participants, (iii) sets the performance share units to be awarded to such participants, and (iv) sets the rate at which performance share units will convert to shares of common stock based upon attainment of the performance goals. | ||||||||||||||||||||||||
Stock Option Plan | ||||||||||||||||||||||||
We have not granted options under this plan since 2004. We generally granted options with an exercise price equal to the closing price of our stock at the date of grant with a 10 year contractual life. All of the options under this plan have fully vested. As of February 13, 2014, all options granted under the SOP had either expired or been exercised. | ||||||||||||||||||||||||
Optionees must make payment for shares purchased upon exercise by tendering cash, by delivery of shares of common stock already owned by the optionee having a fair market value equal to the cash option price of the shares, by assigning the proceeds of a sale or loan with respect to some or all of the shares being acquired (subject to applicable law), by a combination of the foregoing or by any other method. | ||||||||||||||||||||||||
Persons who received options incurred no federal income tax liability at the time of grant. Persons exercising nonqualified options recognize taxable income, and we have a tax deduction at the time of exercise to the extent of the difference between market price on the day of exercise and the exercise price. Persons exercising incentive stock options defer the recognition of taxable income until they sell the underlying common stock. Sales within two years of the date of grant or one year of the date of exercise result in taxable income to the holder and a deduction for us, both measured by the difference between the market price at the time of sale and the exercise price. Sales after such period are treated as capital transactions to the holder, and we receive no deduction. The foregoing is only a summary of the federal income tax rules applicable to options granted under the plan and is not intended to be complete. In addition, this summary does not discuss the effect of the income or other tax laws of any state or foreign country in which a participant may reside. | ||||||||||||||||||||||||
We estimated the weighted-average grant date fair value of options granted during 2004 using the modified Black-Scholes valuation model and the following weighted-average assumptions: | ||||||||||||||||||||||||
2004 Grants | ||||||||||||||||||||||||
Weighted-average grant date fair value | $ | 13.87 | ||||||||||||||||||||||
Dividend yield | 0.7 | % | ||||||||||||||||||||||
Expected volatility | 33 | % | ||||||||||||||||||||||
Risk-free interest rate | 4.3 | % | ||||||||||||||||||||||
Expected life (in years) | 7.5 | |||||||||||||||||||||||
Weighted-average grant exercise price | $ | 33.56 | ||||||||||||||||||||||
Outstanding as of December 31, 2014 | 0 | |||||||||||||||||||||||
The following table describes activity for our SOP for the twelve-month period ended December 31, 2014: | ||||||||||||||||||||||||
Options | Number of | Weighted- | Weighted- | Aggregate | ||||||||||||||||||||
Options | Average | Average | Intrinsic | |||||||||||||||||||||
Exercise | Remaining | Value (a) | ||||||||||||||||||||||
Price | Term | (in millions) | ||||||||||||||||||||||
(in years) | ||||||||||||||||||||||||
Outstanding as of January 1, 2014 | 16,000 | $ | 33.58 | |||||||||||||||||||||
Exercised | (14,000 | ) | 33.58 | |||||||||||||||||||||
Forfeited | (2,000 | ) | 33.58 | |||||||||||||||||||||
Outstanding as of December 31, 2014 | 0 | $ | 0 | 0 | $ | 0 | ||||||||||||||||||
Vested as of December 31, 2014 | 0 | $ | 0 | 0 | $ | 0 | ||||||||||||||||||
Exercisable as of December 31, 2014 | 0 | $ | 0 | 0 | $ | 0 | ||||||||||||||||||
(a) | The intrinsic value for the stock options is calculated based on the difference between the exercise price of the underlying awards and our closing stock price as of the reporting date. | |||||||||||||||||||||||
Cash received from option exercises for the years ended December 31, 2014, 2013 and 2012 were $0.2 million, $1.3 million and $0.6 million, respectively. The actual tax benefit realized for the tax deductions from options exercised for the years ended December 31, 2014, 2013 and 2012 totaled $0.1 million, $0.5 million and $0.6 million, respectively. The total intrinsic value of options exercised during the years ended December 31, 2014, 2013 and 2012, was approximately $0.5 million, $2.4 million and $3.9 million, respectively. | ||||||||||||||||||||||||
In 2014 a senior executive of the company surrendered to the company 3,361 shares of stock owned in order to exercise 7,500 options. | ||||||||||||||||||||||||
We have a policy of issuing new stock for the exercise of options. | ||||||||||||||||||||||||
Employee Stock Purchase Plan | ||||||||||||||||||||||||
Under the ESPP, all eligible full-time employees may purchase shares of our common stock at a 15% discount to the current market price. Employees may allocate up to 25% of their base salary with a maximum annual participation amount of $25,000. If a participant sells any shares purchased under the ESPP within one year, we preclude that employee from participating in the | ||||||||||||||||||||||||
ESPP for one year from the date of sale. The source of shares issued to participants is treasury shares or authorized but | ||||||||||||||||||||||||
previously unissued shares. The maximum number of shares that we may issue under the ESPP may not exceed 1,000,000, of which we have issued 65,341 as of December 31, 2014. Our ESPP is qualified under Section 423 of the Internal Revenue Code of 1986, as amended. We treat participants’ shares as issued and outstanding for basic and diluted earnings per share calculations. |
Benefit_Plans
Benefit Plans | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||
Benefit Plans | Benefit Plans | ||||||||||||||
We provide retirement benefits for all eligible employees by matching contributions made on participants' discretionary basis to participants' accounts in our qualified 401(k) Retirement Plan. Eligible employees may contribute up to a maximum of the lesser of $17,500 per year or 25% of the participant's salary in 2014. Participants age 50 or over at the end of the calendar year may make an additional elective deferral contribution of up to $5,500 for 2014. These additional contributions (commonly referred to as catch-up contributions) are not subject to the general limits that apply to 401(k) plans. The matching percentage made by us was 100% of participants' contributions up to a ceiling of 4% and 50% of the next 2% of contributions with a maximum match of $13,000 in 2014. The plan expense was $5.1 million, $4.9 million and $4.6 million for the twelve-month periods ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||
Our Supplemental Employee Retirement Plan (“SERP”) is a non-qualified deferred compensation plan that enables eligible employees to contribute and to receive employer-matching contributions that the provisions of the 401(k) Retirement Plan or laws preclude due to limits on compensation. We amended the SERP effective January 1, 2010, to permit participants to make contributions and to permit us to make matching contributions on compensation that exceeds the statutory annual compensation limit of $260,000 for qualified defined contribution plans. We contributed $0.1 million to the SERP for each of the years ended December 31, 2014, 2013 and 2012. We maintain a rabbi trust that includes investments to fund the SERP. As of December 31, 2014, investments in the rabbi trust totaled $1.6 million. We reflected these investments at fair value as equity securities on the Consolidated Balance Sheets. | |||||||||||||||
We maintain a non-qualified deferred compensation plan for certain highly compensated employees, which permits the participants to defer a portion of their salaries and bonuses. The deferred amounts accrue interest at our approximate long-term borrowing rate. The deferred amounts are our general obligation liability and amounted to $15.3 million, $13.8 million and $12.4 million at December 31, 2014, 2013 and 2012, respectively. We credited interest of approximately $0.7 million, $0.6 million and $0.6 million for these same periods. | |||||||||||||||
We also provide post-retirement medical and life insurance benefits to certain eligible retirees. During 2006, we determined that the benefits provided under this plan were actuarially equivalent to those benefits provided by the Medicare Prescription Drug, Improvement and Modernization Act of 2003 (“MMA”). Our calculation of the accumulated post-retirement benefit obligation (“APBO”) as of December 31, 2014, 2013 and 2012 does not reflect the government subsidy provided by the MMA, other than as reflected in the insured over 65 rates going forward. | |||||||||||||||
Unrecognized actuarial gains of $0.5 million ($0.3 million net of tax) and prior service costs of $0.3 million ($0.2 million net of tax) that have not yet been recognized in net periodic post-retirement benefit costs are included in accumulated other comprehensive income at December 31, 2014. We expect to recognize less than a $0.1 million actuarial gain and $0.1 million of amortization of prior service costs in net periodic post-retirement benefit income during the fiscal year ended December 31, 2015. | |||||||||||||||
We recognized the unfunded status of the APBO plan of $4.3 million at December 31, 2014 in the Consolidated Balance Sheets. We expect no plan assets to be returned to us during the fiscal year ended December 31, 2015. | |||||||||||||||
The following tables show data related to the APBO plan ($ in thousands): | |||||||||||||||
2014 | 2013 | ||||||||||||||
Net benefit obligation at beginning of year | $ | 4,473 | $ | 5,004 | |||||||||||
Service cost | 198 | 331 | |||||||||||||
Interest cost | 150 | 159 | |||||||||||||
Participant contributions | 28 | 27 | |||||||||||||
Plan amendment | (660 | ) | 0 | ||||||||||||
Assumption change | 534 | (342 | ) | ||||||||||||
Actuarial (gain) loss | (120 | ) | (364 | ) | |||||||||||
Gross benefits paid | (291 | ) | (342 | ) | |||||||||||
Net benefit obligation at end of year | $ | 4,313 | $ | 4,473 | |||||||||||
The 2014 $0.7 million plan amendment relates to a modification in the premium charged to eligible retirees. | |||||||||||||||
The following table discloses the components of net periodic post-retirement benefit cost ($ in thousands): | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Service cost | $ | 198 | $ | 331 | $ | 119 | |||||||||
Interest cost | 150 | 159 | 136 | ||||||||||||
Amortization of prior service cost | 71 | 199 | 0 | ||||||||||||
Amortization of net cumulative (gain)/loss | (81 | ) | 0 | (23 | ) | ||||||||||
Net periodic post-retirement benefit cost | $ | 339 | $ | 690 | $ | 232 | |||||||||
The following table discloses discount rates used to determine benefit obligations: | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Discount rate | 3.50% | 4.10% | 3.30% | ||||||||||||
The weighted average health care cost trend rate used in measuring the accumulated post-retirement benefit cost is 8.0% for 2015, declining to 5.0% in 2036. | |||||||||||||||
The following table discloses the effects of a hypothetical one percentage point increase and the effects of a hypothetical one percentage point decrease in the assumed healthcare trend rate ($ in thousands): | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
A one percentage point hypothetical change in the assumed healthcare trend rate would have the following effect on the post-retirement benefit obligations: | |||||||||||||||
1% increase | $ | 396 | 349 | 389 | |||||||||||
1% decrease | (348 | ) | (318 | ) | (363 | ) | |||||||||
A one percentage point hypothetical change in the assumed healthcare trend rate would have the following effect on the aggregate of the service and interest cost components of net periodic post-retirement healthcare benefit costs: | |||||||||||||||
1% increase | $ | 40 | 53 | $ | 56 | ||||||||||
1% decrease | (34 | ) | (47 | ) | (49 | ) | |||||||||
The following table reconciles the beginning and ending balances of the fair value of plan assets for the years ended December 31, 2014, and 2013 ($ in thousands): | |||||||||||||||
2014 | 2013 | ||||||||||||||
Fair value of plan assets at beginning of year | $ | 0 | $ | 0 | |||||||||||
Employer contributions | 263 | 315 | |||||||||||||
Participant contributions | 28 | 27 | |||||||||||||
Gross benefits paid | (291 | ) | (342 | ) | |||||||||||
Fair value of plan assets at end of year | $ | 0 | $ | 0 | |||||||||||
The following table presents the funded status and the amounts recognized in the Consolidated Balance Sheets ($ in thousands): | |||||||||||||||
2014 | 2013 | ||||||||||||||
Fair value of plan assets | $ | 0 | $ | 0 | |||||||||||
Benefit obligations | (4,313 | ) | (4,473 | ) | |||||||||||
Funded status at end of year | $ | (4,313 | ) | $ | (4,473 | ) | |||||||||
Contributions made after the measurement date | 0 | 0 | |||||||||||||
Unrecognized actuarial net (gain) loss | 0 | 0 | |||||||||||||
Unrecognized prior service cost | 0 | 0 | |||||||||||||
Net amount recognized at end of year | $ | (4,313 | ) | $ | (4,473 | ) | |||||||||
The following table presents the ten-year forecast and best estimate of expected benefit payments ($ in thousands): | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
2015 | $ | 259 | 2014 | $ | 292 | 2013 | 315 | ||||||||
2016 | 294 | 2015 | 304 | 2014 | 341 | ||||||||||
2017 | 304 | 2016 | 346 | 2015 | 356 | ||||||||||
2018 | 314 | 2017 | 361 | 2016 | 390 | ||||||||||
2019 | 337 | 2018 | 398 | 2017 | 395 | ||||||||||
2020-2024 | 1,840 | 2019-2023 | 2,459 | 2018-2022 | 2,474 | ||||||||||
Ten Year Total | $ | 3,348 | $ | 4,160 | 4,270 | ||||||||||
Our best estimate of contributions expected to be paid to the plan during the fiscal year beginning January 1, 2015, is $0.3 million. |
Quarterly_Operating_Results_Un
Quarterly Operating Results (Unaudited) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||
Quarterly Operating Results | Quarterly Operating Results (Unaudited) | |||||||||||||||||||
While we recognize insurance premium on a relatively level basis, claim losses related to adverse weather (snow, hail, hurricanes, tornadoes, etc.) may be seasonal. Quarterly results rely heavily on estimates and are not necessarily indicative of results for longer periods. | ||||||||||||||||||||
The following are quarterly results of our consolidated operations for the three years ended December 31, 2014 ($ in thousands, except per share amounts): | ||||||||||||||||||||
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | Total Year | ||||||||||||||||
2014 | ||||||||||||||||||||
Revenues | $ | 361,613 | $ | 367,954 | $ | 366,160 | $ | 365,982 | $ | 1,461,709 | ||||||||||
Net earnings | 10,327 | 10,667 | 14,855 | 21,352 | 57,201 | |||||||||||||||
Net earnings per share: | ||||||||||||||||||||
Basic | $ | 0.9 | $ | 0.93 | $ | 1.3 | $ | 1.87 | $ | 5 | ||||||||||
Diluted | 0.89 | 0.92 | 1.29 | 1.85 | 4.95 | |||||||||||||||
2013 | ||||||||||||||||||||
Revenues | $ | 356,102 | $ | 365,656 | $ | 359,145 | $ | 362,330 | $ | 1,443,233 | ||||||||||
Net earnings | 8,662 | 7,408 | 7,195 | 9,368 | 32,633 | |||||||||||||||
Net earnings per share: | ||||||||||||||||||||
Basic | $ | 0.75 | $ | 0.65 | $ | 0.63 | $ | 0.82 | $ | 2.85 | ||||||||||
Diluted | 0.74 | 0.64 | 0.62 | 0.81 | 2.8 | |||||||||||||||
2012 | ||||||||||||||||||||
Revenues | $ | 312,116 | $ | 331,081 | $ | 338,879 | $ | 367,510 | $ | 1,349,585 | ||||||||||
Net earnings | 4,294 | 6,954 | 5,154 | 7,917 | 24,319 | |||||||||||||||
Net earnings per share: | ||||||||||||||||||||
Basic | $ | 0.37 | $ | 0.59 | $ | 0.44 | $ | 0.68 | $ | 2.09 | ||||||||||
Diluted | 0.35 | 0.58 | 0.43 | 0.67 | 2.04 | |||||||||||||||
Net realized gains (losses) on investments amounted to: | ||||||||||||||||||||
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | Total Year | ||||||||||||||||
2014 | $ | 645 | $ | 1,846 | $ | 1,013 | $ | 781 | $ | 4,284 | ||||||||||
2013 | 3,824 | 794 | (546 | ) | 1,955 | 6,026 | ||||||||||||||
2012 | 238 | 2,166 | 268 | 21,382 | 24,055 | |||||||||||||||
We revised the presentation of our Consolidated Statements of Earnings for the years ending 2013 and 2012 to correctly classify $98.4 million and $100.0 million, respectively, of installment and other fee income as a component of total revenues and to conform to our current-year presentation (see Note 1 to the Consolidated Financial Statements). The following are the amounts of installment and other fee income that have been included in the revenue shown above that were not included in the amounts previously reported. | ||||||||||||||||||||
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | Total Year | ||||||||||||||||
2013 | $ | 25,300 | $ | 24,952 | $ | 24,183 | $ | 23,994 | $ | 98,428 | ||||||||||
2012 | 24,714 | 25,098 | 25,145 | 24,995 | 99,952 | |||||||||||||||
Insurance_Reserves
Insurance Reserves | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Insurance [Abstract] | ||||||||||||
Insurance Reserves | Insurance Reserves | |||||||||||
Our insurance reserves consist of business produced directly by our wholly owned insurance subsidiaries, the Assumed Agency Business and two other unaffiliated insurance companies. | ||||||||||||
Incurred but not reported (“IBNR”) reserves for the direct and Assumed Agency Business are established for the quarter and year-end based on a quarterly reserve analysis by our actuarial staff. Various standard actuarial tests are applied to subsets of the business at a state, product and coverage basis. Included in the analyses are the following: | ||||||||||||
• | Paid and incurred extrapolation methods utilizing paid and incurred loss development to predict ultimate losses; | |||||||||||
• | Paid and incurred frequency and severity methods utilizing paid and incurred claims count development and paid and incurred claims cost development to predict ultimate average frequency (claims count per policy or auto insured) or ultimate average severity (cost of claim per claim); and | |||||||||||
• | Paid and incurred Bornhuetter-Ferguson methods adding expected development to actual paid or incurred experience to project ultimate losses. | |||||||||||
For each subset of the business evaluated, each test generates a point estimate based on development factors applied to known paid and incurred claims and claim counts to estimate ultimate paid claims and claim counts. Selections of development factors are based on historical loss development patterns with adjustment based on professional actuarial judgment where anticipated development patterns vary from those seen historically. Deviations from historical loss development patterns may occur due to changes in items such as claims settlement and payment practices, business mix, coverage limits and deductibles, inflation trends in auto repair and medical costs and legal and regulatory trends affecting claims settlements. This estimation of IBNR requires selection of hundreds of such factors. A single point estimate for the subset being evaluated is then selected from the results of various tests, based on a combination of simple averages of the point estimates of the various tests and selections based on professional actuarial judgment. During recent years, paid methods have been less reliable because of changes in settlement practices, so we have more heavily relied on incurred methods. | ||||||||||||
The following table provides an analysis of changes in the liability for losses and LAE, net of reinsurance: | ||||||||||||
($ in thousands) | 2014 | 2013 | 2012 | |||||||||
Balance at Beginning of Period | ||||||||||||
Unpaid losses on known claims | $ | 221,447 | $ | 205,589 | $ | 181,972 | ||||||
IBNR losses | 262,660 | 218,552 | 177,645 | |||||||||
LAE | 162,469 | 148,753 | 135,787 | |||||||||
Total unpaid losses and LAE | 646,577 | 572,894 | 495,403 | |||||||||
Reinsurance recoverables | (14,431 | ) | (13,678 | ) | (14,640 | ) | ||||||
Unpaid losses and LAE, net of reinsurance recoverables | 632,146 | 559,215 | 480,764 | |||||||||
Current Activity | ||||||||||||
Loss and LAE incurred: | ||||||||||||
Current accident year | 1,019,033 | 1,014,299 | 926,033 | |||||||||
Prior accident years | (17,405 | ) | 2,948 | 16,219 | ||||||||
Total loss and LAE incurred | 1,001,628 | 1,017,247 | 942,253 | |||||||||
Loss and LAE payments: | ||||||||||||
Current accident year | (602,732 | ) | (593,850 | ) | (553,549 | ) | ||||||
Prior accident years | (377,235 | ) | (350,466 | ) | (310,252 | ) | ||||||
Total loss and LAE payments | (979,967 | ) | (944,316 | ) | (863,801 | ) | ||||||
Balance at End of Period | ||||||||||||
Unpaid losses and LAE, net of reinsurance recoverables | 653,808 | 632,146 | 559,215 | |||||||||
Add back reinsurance recoverables | 14,370 | 14,431 | 13,678 | |||||||||
Total unpaid losses and LAE | $ | 668,177 | $ | 646,577 | $ | 572,894 | ||||||
Unpaid losses on known claims | $ | 235,037 | $ | 221,447 | $ | 205,589 | ||||||
IBNR losses | 277,482 | 262,660 | 218,552 | |||||||||
LAE | 155,658 | 162,469 | 148,753 | |||||||||
Total unpaid losses and LAE | $ | 668,177 | $ | 646,577 | $ | 572,894 | ||||||
The $17.4 million favorable reserve development during the twelve months ended December 31, 2014, was primarily due to decreases in severity in California property damage and in both severity and frequency in Florida bodily injury coverages, related to accident year 2013. | ||||||||||||
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 $2.9 million unfavorable reserve development during the twelve months ended December 31, 2013. | ||||||||||||
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 $16.2 million unfavorable reserve development during the twelve months ended December 31, 2012. |
Reinsurance
Reinsurance | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Reinsurance Disclosures [Abstract] | |||||||||||||||||||
Reinsurance | Reinsurance | ||||||||||||||||||
The following table shows written and earned premium included in earnings for reinsurance assumed and amounts deducted from written and earned premium in connection with reinsurance ceded ($ in thousands): | |||||||||||||||||||
Year | Direct Written | Reinsurance | Reinsurance | Net Written | % of Amount | ||||||||||||||
Premium | Assumed | Ceded | Premium | Assumed to | |||||||||||||||
Net | |||||||||||||||||||
2014 | $ | 1,360,807 | $ | 63 | $ | (13,266 | ) | $ | 1,347,604 | 0 | % | ||||||||
2013 | 1,339,803 | 16 | (9,927 | ) | 1,329,892 | 0 | % | ||||||||||||
2012 | 1,254,386 | 543 | (7,731 | ) | 1,247,198 | 0 | % | ||||||||||||
Year | Direct Earned | Reinsurance | Reinsurance | Net Earned | % of Amount | ||||||||||||||
Premium | Assumed | Ceded | Premium | Assumed to | |||||||||||||||
Net | |||||||||||||||||||
2014 | $ | 1,337,557 | $ | 57 | $ | (11,679 | ) | $ | 1,325,935 | 0 | % | ||||||||
2013 | 1,311,942 | 15 | (9,432 | ) | 1,302,525 | 0 | % | ||||||||||||
2012 | 1,190,773 | 542 | (7,225 | ) | 1,184,090 | 0 | % | ||||||||||||
Assumed Reinsurance | |||||||||||||||||||
Assumed business consists of business assumed from unaffiliated insurance companies and involuntary pools and associations. | |||||||||||||||||||
We assumed $3.5 million, $4.1 million and $5.4 million, respectively, at December 31, 2014, 2013 and 2012 of total unpaid losses and LAE from unaffiliated insurance companies. We assumed no premium from unaffiliated insurance companies in 2014 or 2013. In 2012, we assumed $0.5 million of premium from unaffiliated insurance companies. | |||||||||||||||||||
At December 31, 2014, 2013 and 2012, we assumed $7.5 million, $7.8 million and $8.0 million, respectively, of assumed unpaid losses and LAE as part of fronting arrangements under which we utilized these companies' insurance licenses to write business while assuming substantially all of that business back from these carriers. Although the business was issued on these unaffiliated companies' policies, we manage the claims adjusting and loss reserving for this business. | |||||||||||||||||||
During the twelve months ended December 31, 2014, 2013 and 2012, we assumed, from involuntary pools and associations, premium and unpaid losses and LAE of less than $0.1 million each. | |||||||||||||||||||
Ceded Reinsurance | |||||||||||||||||||
We use excess of loss, catastrophe and extra-contractual loss reinsurance to mitigate the financial impact of large or | |||||||||||||||||||
catastrophic losses. During 2012, our catastrophe reinsurance protection was 100% of $25 million in excess of $5 million. For 2013, we increased our catastrophe reinsurance protection to 100% of $45 million in excess of $5 million. For 2014, we increased our catastrophe reinsurance protection to 100% of $55 million in excess of $5 million. Our excess of loss reinsurance provides reinsurance protection for commercial auto losses up to $700,000 for claims in excess of $300,000 per occurrence. Our extra-contractual loss reinsurance provides protection for losses up to $10 million in excess of $5 million for any single extra-contractual loss. We also use reinsurance to mitigate losses on our Classic Collector business. | |||||||||||||||||||
Ceded reinsurance for all programs reduced our incurred losses and LAE by $3.5 million, $1.6 million and $2.5 million for the twelve months ended December 31, 2014, 2013 and 2012, respectively. |
Statutory_Information
Statutory Information | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Insurance [Abstract] | |||||||||
Statutory Information | Statutory Information | ||||||||
Capital and Surplus | |||||||||
Insurance companies are required to file financial statements with state insurance regulatory authorities prepared on an accounting basis prescribed or permitted by such authorities (statutory basis). Net earnings and capital and surplus on a statutory basis were as follows ($ in thousands): | |||||||||
Statutory Net Earnings | Statutory Capital and Surplus | ||||||||
2014 | 2013 | 2012 | 2014 | 2013 | |||||
$67,360 | $44,906 | $31,141 | $682,068 | $673,973 | |||||
For the twelve-month periods ended December 31, 2014, 2013 and 2012, statutory results differed from net earnings on a GAAP basis primarily due to the amortization of deferred acquisition costs, the basis difference in realized gains and holding company expenses, including interest. Net earnings for 2012 include $0.1 million related to a subsidiary sold as of December 31, 2012. | |||||||||
At December 31, 2014, the consolidated amount of statutory capital and surplus necessary to satisfy regulatory requirements as defined by the National Association of Insurance Commissioners' ("NAIC") Risk-Based Capital ("RBC") calculation was $144.9 million. This amount of statutory capital and surplus represents the Company Action Level ("CAL") of minimum surplus. Falling below this level would require a company to prepare and submit an RBC plan to address the deficiency in surplus to the CAL to the commissioner of its state of domicile. | |||||||||
Restrictions on Transfer of Funds and Assets of Subsidiaries | |||||||||
As of December 31, 2014, there are no regulatory restrictions on the payment of dividends to our shareholders. However, our ability to declare and pay dividends will depend on the working capital in the holding company, as well as dividends received from our insurance subsidiaries. | |||||||||
Payments of dividends, loans and advances by our insurance subsidiaries are subject to certain restrictions under various state laws, federal regulations and debt covenants that limit the amount of dividends, loans and advances that can be paid. Under applicable restrictions, the maximum amount of dividends payable in 2015 from our insurance subsidiaries without regulatory approval is approximately $68.1 million. Additional amounts of dividends, loans and advances require regulatory approval. |
Legal_and_Regulatory_Proceedin
Legal and Regulatory Proceedings | 12 Months Ended |
Dec. 31, 2014 | |
Loss Contingency [Abstract] | |
Legal and Regulatory Proceedings | Legal and Regulatory Proceedings |
From time to time we and our subsidiaries are named as defendants in various lawsuits incidental to our insurance operations. We consider legal actions relating to claims made in the ordinary course of seeking indemnification for a loss covered by the insurance policy in establishing loss and LAE reserves. | |
We also face in the ordinary course of business lawsuits that seek damages beyond policy limits, commonly known as extra-contractual claims, as well as class action and individual lawsuits that involve issues not unlike those facing other insurance companies and employers. We continually evaluate potential liabilities and reserves for litigation of these types using the criteria established by the Contingencies topic of the FASC. Under this guidance we may only record reserves for a loss if the likelihood of occurrence is probable and we can reasonably estimate the amount. If a material loss, while not probable, is judged to be reasonably possible, we will disclose, if it can be estimated, a possible range of loss or state that an estimate cannot be made. We consider each legal action using this guidance and record reserves for losses as warranted by establishing a reserve captured within our Consolidated Balance Sheets line-items “Unpaid losses and LAE” for extra-contractual claims and “Other liabilities” for class action and other non-claims related lawsuits. We record amounts incurred on the Consolidated Statements of Earnings within “Losses and LAE” for extra-contractual claims and “Other expenses” for class action and other non-claims related lawsuits. | |
Certain claims and legal actions have been brought against us for which we have accrued no loss, and for which an estimate of a possible range of loss cannot be made under the above rules. While it is not possible to predict the ultimate outcome of these claims or lawsuits, we do not believe they are likely to have a material effect on our financial condition or liquidity. However, losses incurred because of these cases could have a material adverse impact on net earnings in a given period. | |
In Reyes v. Infinity Indemnity Insurance Company (Circuit Court of Miami-Dade County, Florida), a third party claimant is attempting to recover from Infinity a $30 million consent judgment obtained against an Infinity policyholder for personal injuries suffered by claimant. Infinity believes any claims of bad faith are unfounded and has denied any and all liability to plaintiff. In December 2014 the court granted Infinity's motion for partial summary judgment finding the $30 million consent judgment unenforceable and that no bad faith claim can exist as a matter of law. Plantiff has appealed this ruling. While a decision on the appeal cannot be predicted with certainty, we believe that a material loss is not probable. |
Commitments_And_Contingencies
Commitments And Contingencies | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||
Commitments and Contingencies | Commitments and Contingencies | |||||||||||
Commitments | ||||||||||||
Minimum rental commitments under non-cancelable leases with an initial or remaining term of more than one year as of December 31, 2014, were as follows ($ in thousands): | ||||||||||||
Due in | Operating Leases | Capital Leases | ||||||||||
2015 | $ | 9,200 | $ | 481 | ||||||||
2016 | 4,921 | 425 | ||||||||||
2017 | 3,361 | 318 | ||||||||||
2018 | 2,927 | 236 | ||||||||||
2019 | 1,153 | 222 | ||||||||||
Thereafter | 375 | 0 | ||||||||||
Total | $ | 21,937 | $ | 1,682 | ||||||||
All of these leases expire within 7 years. The most significant leased office spaces are located in Birmingham, Alabama ($4.4 million) and suburban Los Angeles, California ($7.3 million). | ||||||||||||
The operating leases above include leased vehicles. As vehicles are surrendered, they are sold for cash by the lessor. We guarantee that proceeds from sales will be at least equal to the lessor's depreciated book value. Otherwise, we are credited the excess or we pay the deficit. The lessors depreciated book value at December 31, 2014, on the vehicles we lease was $6.4 million, which represents the maximum deficit we would be required to pay if the lessor received no proceeds from the sale. Historically, we have not made any material additional rental payments due to surrendered vehicles. As of December 31, 2014, the current fair market value of the vehicles we lease was approximately $6.6 million. | ||||||||||||
Lease expense incurred for all leases during the last three years was as follows ($ in thousands): | ||||||||||||
Twelve months ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Lease expense | $ | 10,447 | $ | 12,015 | $ | 12,389 | ||||||
Sublease income | 0 | (163 | ) | (420 | ) | |||||||
Total | $ | 10,447 | $ | 11,851 | $ | 11,969 | ||||||
Contingencies | ||||||||||||
Based on the criteria established by the Contingencies topic of the FASC, we have the following loss contingencies for which we accrue in our financial statements: | ||||||||||||
• Other-than-temporary impairments on investments | Note 3 | |||||||||||
• Insurance reserves | Note 10 | |||||||||||
• Legal and regulatory proceedings | Note 13 | |||||||||||
• Allowances for uncollectible accounts | Note 15 | |||||||||||
For each item listed above, please refer to the notes referenced for additional discussion. |
Additional_Information
Additional Information | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Additional Information [Abstract] | ||||||||||||
Additional Information | Additional Information | |||||||||||
Allowances for Uncollectible Accounts | ||||||||||||
Agents’ balances and premium receivable included in the Consolidated Balance Sheets are net of allowances for uncollectible accounts. The provision for such losses is included in commissions and other underwriting expenses. A progression of the aggregate allowance follows ($ in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Beginning balance | $ | 15,884 | $ | 16,124 | $ | 13,497 | ||||||
Provision for losses | 19,541 | 20,913 | 24,884 | |||||||||
Uncollectible amounts written off | (19,916 | ) | (21,154 | ) | (22,257 | ) | ||||||
Ending balance | $ | 15,510 | $ | 15,884 | $ | 16,124 | ||||||
Negative Cash Book Balances | ||||||||||||
Negative cash book balances, included in the line item “Other liabilities” in the Consolidated Balance Sheets, were $51.2 million, $50.5 million and $45.4 million, respectively, at December 31, 2014, 2013 and 2012. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income | The components of other comprehensive income before and after tax are as follows ($ in thousands): | ||||||||||||||||||||||||||||||||||||
Twelve Months Ended December 31, | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
Before Tax | Income Tax | Net | Before Tax | Income Tax | Net | Before Tax | Income Tax | Net | |||||||||||||||||||||||||||||
Accumulated change in postretirement benefit liability, beginning of period | $ | (62 | ) | $ | 22 | $ | (40 | ) | $ | (967 | ) | $ | 339 | $ | (629 | ) | $ | 519 | $ | (182 | ) | $ | 337 | ||||||||||||||
Effect on other comprehensive income | 235 | (82 | ) | 153 | 906 | (317 | ) | 589 | (1,487 | ) | 520 | (966 | ) | ||||||||||||||||||||||||
Accumulated change in postretirement benefit liability, end of period | $ | 174 | $ | (61 | ) | $ | 113 | $ | (62 | ) | $ | 22 | $ | (40 | ) | $ | (967 | ) | $ | 339 | $ | (629 | ) | ||||||||||||||
Accumulated unrealized gains on investments, net, beginning of period | $ | 25,638 | $ | (8,973 | ) | $ | 16,665 | $ | 46,892 | $ | (16,412 | ) | $ | 30,480 | $ | 53,817 | $ | (18,836 | ) | $ | 34,981 | ||||||||||||||||
Other comprehensive income before reclassification | 14,618 | (5,116 | ) | 9,502 | (15,227 | ) | 5,330 | (9,898 | ) | 17,129 | (5,995 | ) | 11,134 | ||||||||||||||||||||||||
Reclassification adjustment for other-than-temporary impairments included in net income | 160 | (56 | ) | 104 | 1,468 | (514 | ) | 954 | 1,393 | (487 | ) | 905 | |||||||||||||||||||||||||
Reclassification adjustment for realized gains included in net income | (4,444 | ) | 1,556 | (2,889 | ) | (7,495 | ) | 2,623 | (4,872 | ) | (25,447 | ) | 8,907 | (16,541 | ) | ||||||||||||||||||||||
Effect on other comprehensive income | 10,334 | (3,617 | ) | 6,717 | (21,254 | ) | 7,439 | (13,815 | ) | (6,926 | ) | 2,424 | (4,502 | ) | |||||||||||||||||||||||
Accumulated unrealized gains on investments, net, end of period | $ | 35,972 | $ | (12,590 | ) | $ | 23,382 | $ | 25,638 | $ | (8,973 | ) | $ | 16,665 | $ | 46,892 | $ | (16,412 | ) | $ | 30,480 | ||||||||||||||||
Accumulated other comprehensive income, beginning of period | $ | 25,576 | $ | (8,952 | ) | $ | 16,624 | $ | 45,924 | $ | (16,073 | ) | $ | 29,851 | $ | 54,336 | $ | (19,018 | ) | $ | 35,319 | ||||||||||||||||
Change in postretirement benefit liability | 235 | (82 | ) | 153 | 906 | (317 | ) | 589 | (1,487 | ) | 520 | (966 | ) | ||||||||||||||||||||||||
Change in unrealized gains on investments, net | 10,334 | (3,617 | ) | 6,717 | (21,254 | ) | 7,439 | (13,815 | ) | (6,926 | ) | 2,424 | (4,502 | ) | |||||||||||||||||||||||
Effect on other comprehensive income | 10,569 | (3,699 | ) | 6,870 | (20,348 | ) | 7,122 | (13,226 | ) | (8,412 | ) | 2,944 | (5,468 | ) | |||||||||||||||||||||||
Accumulated other comprehensive income, end of period | $ | 36,145 | $ | (12,651 | ) | $ | 23,494 | $ | 25,576 | $ | (8,952 | ) | $ | 16,624 | $ | 45,924 | $ | (16,073 | ) | $ | 29,851 | ||||||||||||||||
Subsequent_Events_Notes
Subsequent Events (Notes) | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | 17 Subsequent Events |
On February 5, 2015, we signed a $20.0 million purchase agreement for a 120,493 square foot building to replace a location currently leased in Birmingham, Alabama. The purchase will be made with internally generated funds and is expected to close in approximately 60 days. |
Significant_Reporting_and_Acco1
Significant Reporting and Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Nature of Operations | Nature of Operations | ||||||||||||
We currently write personal automobile insurance with a concentration on nonstandard automobile insurance, mono-line commercial vehicle insurance and classic collector automobile insurance. Personal auto insurance accounts for 91% of our total gross written premium and we primarily write it in four states. We wrote approximately 50% of our personal auto gross written premium in the state of California during 2014. | |||||||||||||
Basis of Consolidation and Reporting | Basis of Consolidation and Reporting | ||||||||||||
The accompanying consolidated financial statements include our accounts and those of our subsidiaries. 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 accurately match expenses with their related revenue streams and the elimination of all significant inter-company transactions and balances. | |||||||||||||
We revised the presentation of our Consolidated Statements of Earnings for the years ending 2013 and 2012 to correctly classify $98.4 million and $100.0 million, respectively, of installment and other fee income as a component of total revenues and to conform to our current-year presentation. Previously, installment and other fee income was presented net within our commissions and other underwriting expenses, which was not in compliance with GAAP, thereby understating both total revenues and total expenses by an equivalent amount. This revision is not considered to be material to previously issued financial statements since it has no effect on the results of operations, financial condition or cash flows in any period presented or in any previously issued financial statements. | |||||||||||||
We have evaluated events that occurred after December 31, 2014, for recognition or disclosure in our financial statements and the notes to the financial statements. | |||||||||||||
Schedules may not foot due to rounding. | |||||||||||||
Estimates | The preparation of the financial statements in conformity with generally accepted accounting principles of the United States requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Changes in circumstances could cause actual results to differ materially from those estimates. | ||||||||||||
Investments | Investments | ||||||||||||
We consider all fixed maturity securities “available for sale” and report them at fair value with unrealized gains or losses reported after-tax in accumulated other comprehensive income within shareholders' equity. We base the fair values of investments on prices quoted in the most active market for each security. If quoted prices are not available, we estimate fair value based on the fair value of comparable securities, discounted cash flow models or similar methods. We treat premium and discounts on mortgage-backed securities (“MBS”) and asset-backed securities (“ABS”) as a yield adjustment over the estimated life of the securities, adjusted for anticipated prepayments, using the interest method. We base prepayment assumptions on data from widely accepted third party data sources or internal estimates. We review the amortized cost and effective yield of the security periodically and adjust it to reflect actual prepayments and changes in expectations. For high credit quality MBS and ABS (those rated AA or above at the time of purchase), the adjustments to amortized cost are recorded as a charge or credit to net investment income in accordance with the retrospective method. For MBS and ABS rated below AA, we adjust the yield prospectively for any changes in estimated cash flows. | |||||||||||||
Gains or losses on securities are determined on the specific identification basis. When we consider impairment in the value of a specific investment other-than-temporary (“OTTI”), the cost basis of that investment is reduced. For fixed maturity securities that are OTTI, 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 OTTI, but we do not intend to and are not more than likely to be required to sell the security prior to its recovery to amortized cost, the amount of the impairment is separated into a credit loss component and the amount due to all other factors. 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 varies 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. | |||||||||||||
Securities having a fair value of approximately $21.2 million at December 31, 2014, were on deposit as required by regulatory authorities. | |||||||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents | ||||||||||||
We consider liquid investments having original maturities of three months or less when purchased to be cash equivalents for purposes of the financial statements. | |||||||||||||
Reinsurance | Reinsurance | ||||||||||||
Our insurance subsidiaries cede insurance to other companies. To the extent that any reinsuring companies are unable to meet obligations under agreements covering reinsurance ceded, our insurance subsidiaries would remain liable. We estimate amounts recoverable from reinsurers in a manner consistent with the claim liability associated with the reinsured policies. Our insurance subsidiaries report as assets (a) the estimated reinsurance recoverable on unpaid losses and (b) amounts paid to reinsurers applicable to the unexpired terms of policies in force. | |||||||||||||
Deferred Policy Acquisition Costs (DPAC) | Deferred Policy Acquisition Costs (“DPAC”) | ||||||||||||
We defer and charge against income ratably over the terms of the related policies policy acquisition costs (principally commissions, premium taxes and other marketing and underwriting expenses) related to the successful production of premium writings. The method followed in computing DPAC limits the amount of such costs to their estimated realizable value without any consideration for anticipated investment income. Each quarter, we evaluate the recoverability of these costs. | |||||||||||||
Goodwill | Goodwill | ||||||||||||
In accordance with the Goodwill topic of the FASB Accounting Standards Codification (“FASC”), we perform impairment test procedures for goodwill on an annual basis. These procedures require us to calculate the fair value of goodwill, compare the result to our carrying value and record the amount of any shortfall as an impairment charge. | |||||||||||||
We performed this test as of October 1, 2014, using a variety of methods, including estimates of future discounted cash flows and comparisons of our market value to that of our major competitors. Our cash flow projections rely on assumptions that are subject to uncertainty, including premium growth, loss and loss adjustment expense ratios, interest rates and capital requirements. | |||||||||||||
The October 1, 2014, test results indicated that the fair value of our goodwill exceeded our carrying value and therefore no impairment charge was required at that date. Additionally, there was no indication of impairment at December 31, 2014 | |||||||||||||
Unpaid Losses and Loss Adjustment Expense (LAE) | Unpaid Losses and Loss Adjustment Expenses (“LAE”) | ||||||||||||
The net liabilities stated for unpaid claims and for expenses of investigation and adjustment of unpaid claims are based upon (a) the accumulation of case estimates for losses reported prior to the close of the accounting period on direct business written; (b) estimates received from ceding reinsurers and insurance pools and associations; (c) estimates of unreported losses based on past experience; (d) estimates based on experience of expenses for investigating and adjusting claims; and (e) the current state of the law and coverage litigation. These liabilities are subject to the impact of changes in claim amounts and frequency and other factors. We have not reduced liabilities for unpaid losses and LAE for reinsurance recoverables; such recoverables are recorded separately as assets. Changes in estimates of the liabilities for losses and LAE are reflected in the Consolidated Statements of Earnings in the period in which determined. In spite of the variability inherent in such estimates, we believe that the liabilities for unpaid losses and LAE are adequate. | |||||||||||||
Premium and Receivables | Premium and Receivables | ||||||||||||
We earn insurance premium written over the terms of the policies on a pro rata basis. Unearned premium represents that portion of premium written which is applicable to the unexpired terms of policies in force. On reinsurance assumed from other insurance companies or written through various underwriting organizations, we base unearned premium on reports received from such companies and organizations. We provide insurance and related services to individuals and small commercial accounts throughout the United States and offer a variety of payment plans. We establish an allowance for doubtful accounts based on the relationship, on a policy basis, between receivables and unearned premium, or an aging analysis of past due balances. We charge off premium due from insureds if not collected within 90 days of the policies' expiration or cancellation dates. However, even after we charge off premium, attempts to collect the premium continue. | |||||||||||||
Income Taxes | Income Taxes | ||||||||||||
We file a consolidated federal income tax return, which includes all 80% and greater owned U.S. subsidiaries. We and our 80% and greater owned subsidiaries are parties to a tax allocation agreement, which designates how members of the tax group share tax payments. In general, each subsidiary agrees to pay us taxes computed on a separate company taxable income basis. We agree to pay each subsidiary for the tax benefit, if any, of net losses used by other members of the consolidated group. | |||||||||||||
We calculate deferred income taxes using the “asset and liability method.” Under this method, deferred income tax assets and liabilities are determined based on differences between financial reporting and tax basis and are measured using enacted tax rates. We recognize deferred tax assets if it is more likely than not that a benefit will be realized. We aggregate current and deferred tax assets and liabilities on the Consolidated Balance Sheets. | |||||||||||||
Property and Equipment | Property and Equipment | ||||||||||||
We report property and equipment balances at cost less accumulated depreciation. Property and equipment, which consists of land, buildings, leasehold improvements, computer equipment, capitalized software and furniture and fixtures, consisted of the following balances as of December 31, 2014 ($ in millions): | |||||||||||||
Gross Asset | Accumulated Depreciation | Net Asset | |||||||||||
Real Estate Related | $ | 41.4 | $ | (6.5 | ) | $ | 34.9 | ||||||
Computer Equipment & Software | 66.1 | (48.4 | ) | 17.8 | |||||||||
Furniture & Fixtures | 12.2 | (9.0 | ) | 3.2 | |||||||||
$ | 119.8 | $ | (63.9 | ) | $ | 55.9 | |||||||
We recognized $1.8 million, net of accumulated depreciation of $0.9 million, of equipment held under capital leases in other assets on the Consolidated Balance Sheets with the related lease obligations recorded in other liabilities. We compute depreciation over the estimated useful lives of the assets using the straight-line method. Property and equipment is a separate line item on the Consolidated Balance Sheets and we allocate the related expenses, including amortization of assets recorded under capital leases, to one or more of the following line items on the Consolidated Statements of Earnings depending on the asset: losses and LAE, commissions and other underwriting expenses, corporate general and administrative expenses or other expenses. | |||||||||||||
Benefit Plans | Benefit Plans | ||||||||||||
We provide retirement benefits to qualified employees and healthcare and life insurance benefits to eligible retirees. We also provide post-employment benefits to former or inactive employees (primarily those on disability) who were not deemed retired under other company plans. The projected future cost of providing these benefits is expensed over the period the employees earn such benefits. | |||||||||||||
Recently Issued Accounting Standards | Recently Issued Accounting Standards | ||||||||||||
In May 2014 the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) related to the accounting for revenue from contracts with customers. Insurance contracts have been excluded from the scope of the guidance, which is effective for fiscal years beginning after December 15, 2016. We do not expect the adoption of this standard to have a material impact on our financial condition or results of operations. |
Significant_Reporting_and_Acco2
Significant Reporting and Accounting Policies Significant Reporting and Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Schedule of Property, Plant and Equipment | Property and equipment, which consists of land, buildings, leasehold improvements, computer equipment, capitalized software and furniture and fixtures, consisted of the following balances as of December 31, 2014 ($ in millions): | ||||||||||||
Gross Asset | Accumulated Depreciation | Net Asset | |||||||||||
Real Estate Related | $ | 41.4 | $ | (6.5 | ) | $ | 34.9 | ||||||
Computer Equipment & Software | 66.1 | (48.4 | ) | 17.8 | |||||||||
Furniture & Fixtures | 12.2 | (9.0 | ) | 3.2 | |||||||||
$ | 119.8 | $ | (63.9 | ) | $ | 55.9 | |||||||
Fair_Value_Tables
Fair Value (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
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 | |||||||||||||||||
December 31, 2014 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash and cash equivalents | $ | 84,541 | $ | 0 | $ | 0 | $ | 84,541 | |||||||||
Fixed maturity securities: | |||||||||||||||||
U.S. government | 66,847 | 87 | 0 | 66,933 | |||||||||||||
State and municipal | 0 | 503,650 | 0 | 503,650 | |||||||||||||
Mortgage-backed securities: | |||||||||||||||||
Residential | 0 | 354,528 | 0 | 354,528 | |||||||||||||
Commercial | 0 | 50,838 | 0 | 50,838 | |||||||||||||
Total mortgage-backed securities | 0 | 405,366 | 0 | 405,366 | |||||||||||||
Collateralized mortgage obligations | 0 | 0 | 0 | 0 | |||||||||||||
Asset-backed securities | 0 | 58,457 | 150 | 58,607 | |||||||||||||
Corporates | 0 | 394,152 | 3,134 | 397,286 | |||||||||||||
Total fixed maturities | 66,847 | 1,361,711 | 3,285 | 1,431,843 | |||||||||||||
Equity securities | 94,408 | 0 | 0 | 94,408 | |||||||||||||
Short-term investments | 0 | 803 | 0 | 803 | |||||||||||||
Total cash and investments | $ | 245,795 | $ | 1,362,514 | $ | 3,285 | $ | 1,611,594 | |||||||||
Percentage of total cash and investments | 15.3 | % | 84.5 | % | 0.2 | % | 100 | % | |||||||||
Fair Value | |||||||||||||||||
December 31, 2013 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash and cash equivalents | $ | 134,211 | $ | 0 | $ | 0 | $ | 134,211 | |||||||||
Fixed maturity securities: | |||||||||||||||||
U.S. government | 64,496 | 171 | 0 | 64,666 | |||||||||||||
State and municipal | 0 | 487,111 | 0 | 487,111 | |||||||||||||
Mortgage-backed securities: | |||||||||||||||||
Residential | 0 | 323,346 | 0 | 323,346 | |||||||||||||
Commercial | 0 | 35,816 | 0 | 35,816 | |||||||||||||
Total mortgage-backed securities | 0 | 359,162 | 0 | 359,162 | |||||||||||||
Collateralized mortgage obligations | 0 | 1,291 | 0 | 1,291 | |||||||||||||
Asset-backed securities | 0 | 70,573 | 686 | 71,259 | |||||||||||||
Corporates | 0 | 365,642 | 5,175 | 370,816 | |||||||||||||
Total fixed maturities | 64,496 | 1,283,949 | 5,860 | 1,354,305 | |||||||||||||
Equity securities | 91,127 | 0 | 0 | 91,127 | |||||||||||||
Short-term investments | 1,200 | 1,396 | 0 | 2,596 | |||||||||||||
Total cash and investments | $ | 291,033 | $ | 1,285,345 | $ | 5,860 | $ | 1,582,238 | |||||||||
Percentage of total cash and investments | 18.4 | % | 81.2 | % | 0.4 | % | 100 | % | |||||||||
Fair value level 3 reconciliation | The following tables present the changes in the Level 3 fair value category ($ in thousands): | ||||||||||||||||
Twelve months ended | |||||||||||||||||
31-Dec-14 | |||||||||||||||||
U.S. Government | Corporates | Asset-Backed Securities | Total | ||||||||||||||
Balance at beginning of period | $ | 0 | $ | 5,175 | $ | 686 | $ | 5,860 | |||||||||
Total gains or (losses), unrealized or realized | |||||||||||||||||
Included in net earnings | 0 | 274 | 0 | 274 | |||||||||||||
Included in other comprehensive income | 0 | (230 | ) | (1 | ) | (231 | ) | ||||||||||
Purchases | 0 | 0 | 0 | 0 | |||||||||||||
Sales | 0 | (880 | ) | 0 | (880 | ) | |||||||||||
Settlements | 0 | (1,204 | ) | (534 | ) | (1,739 | ) | ||||||||||
Transfers in | 0 | 0 | 0 | 0 | |||||||||||||
Transfers out | 0 | 0 | 0 | 0 | |||||||||||||
Balance at end of period | $ | 0 | $ | 3,134 | $ | 150 | $ | 3,285 | |||||||||
Twelve months ended | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
U.S. Government | Corporates | Asset-Backed Securities | Total | ||||||||||||||
Balance at beginning of period | $ | 3,712 | $ | 9,101 | $ | 0 | $ | 12,813 | |||||||||
Total gains or (losses), unrealized or realized | |||||||||||||||||
Included in net earnings | 268 | 583 | 0 | 852 | |||||||||||||
Included in other comprehensive income | (418 | ) | (477 | ) | 1 | (895 | ) | ||||||||||
Purchases | 0 | 0 | 0 | 0 | |||||||||||||
Sales | (2,968 | ) | (877 | ) | 0 | (3,845 | ) | ||||||||||
Settlements | (594 | ) | (1,824 | ) | (310 | ) | (2,729 | ) | |||||||||
Transfers in | 0 | 0 | 995 | 995 | |||||||||||||
Transfers out | 0 | (1,331 | ) | 0 | (1,331 | ) | |||||||||||
Balance at end of period | $ | 0 | $ | 5,175 | $ | 686 | $ | 5,860 | |||||||||
Carrying value and estimated fair value | The following table presents the carrying value and estimated fair value of our financial instruments ($ in thousands): | ||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||
Value | Value | Value | Value | ||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 84,541 | $ | 84,541 | $ | 134,211 | $ | 134,211 | |||||||||
Available-for-sale securities | |||||||||||||||||
Fixed maturities | 1,431,843 | 1,431,843 | 1,354,305 | 1,354,305 | |||||||||||||
Equity securities | 94,408 | 94,408 | 91,127 | 91,127 | |||||||||||||
Short-term investments | 803 | 803 | 2,596 | 2,596 | |||||||||||||
Total cash and investments | $ | 1,611,594 | $ | 1,611,594 | $ | 1,582,238 | $ | 1,582,238 | |||||||||
Liabilities: | |||||||||||||||||
Long-term debt | $ | 275,000 | $ | 291,044 | $ | 275,000 | $ | 272,632 | |||||||||
Investments_Tables
Investments (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||||
Summarized information of investment portfolio | Summarized information for the major categories of our investment portfolio follows ($ in thousands): | |||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | OTTI | ||||||||||||||||||||||
Cost or Cost | Unrealized | Unrealized | Recognized in | |||||||||||||||||||||||
Gains | Losses | Accumulated | ||||||||||||||||||||||||
OCI(1) | ||||||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||||
U.S. government | $ | 66,625 | $ | 502 | $ | (193 | ) | $ | 66,933 | $ | 0 | |||||||||||||||
State and municipal | 493,350 | 10,637 | (337 | ) | 503,650 | (69 | ) | |||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||
Residential | 349,371 | 6,547 | (1,390 | ) | 354,528 | (2,914 | ) | |||||||||||||||||||
Commercial | 50,914 | 182 | (258 | ) | 50,838 | 0 | ||||||||||||||||||||
Total mortgage-backed securities | $ | 400,285 | $ | 6,729 | $ | (1,648 | ) | $ | 405,366 | $ | (2,914 | ) | ||||||||||||||
Collateralized mortgage obligations | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
Asset-backed securities | 58,546 | 131 | (70 | ) | 58,607 | (8 | ) | |||||||||||||||||||
Corporates | 393,611 | 5,999 | (2,324 | ) | 397,286 | (441 | ) | |||||||||||||||||||
Total fixed maturities | $ | 1,412,417 | $ | 23,998 | $ | (4,572 | ) | $ | 1,431,843 | $ | (3,433 | ) | ||||||||||||||
Equity securities | 77,862 | 16,546 | 0 | 94,408 | 0 | |||||||||||||||||||||
Short-term investments | 803 | 0 | (1 | ) | 803 | 0 | ||||||||||||||||||||
Total | $ | 1,491,082 | $ | 40,544 | $ | (4,573 | ) | $ | 1,527,054 | $ | (3,433 | ) | ||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | OTTI | ||||||||||||||||||||||
Cost or Cost | Unrealized | Unrealized | Recognized in | |||||||||||||||||||||||
Gains | Losses | Accumulated | ||||||||||||||||||||||||
OCI(1) | ||||||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||||
U.S. government | $ | 64,194 | $ | 900 | $ | (427 | ) | $ | 64,666 | $ | 0 | |||||||||||||||
State and municipal | 478,092 | 10,789 | (1,771 | ) | 487,111 | (73 | ) | |||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||
Residential | 330,169 | 1,985 | (8,809 | ) | 323,346 | (2,435 | ) | |||||||||||||||||||
Commercial | 35,781 | 339 | (304 | ) | 35,816 | 0 | ||||||||||||||||||||
Total mortgage-backed securities | $ | 365,950 | $ | 2,324 | $ | (9,113 | ) | $ | 359,162 | $ | (2,435 | ) | ||||||||||||||
Collateralized mortgage obligations | 1,228 | 63 | 0 | 1,291 | (161 | ) | ||||||||||||||||||||
Asset-backed securities | 71,183 | 178 | (103 | ) | 71,259 | (8 | ) | |||||||||||||||||||
Corporates | 364,430 | 9,086 | (2,700 | ) | 370,816 | (612 | ) | |||||||||||||||||||
Total fixed maturities | $ | 1,345,077 | $ | 23,340 | $ | (14,112 | ) | $ | 1,354,305 | $ | (3,290 | ) | ||||||||||||||
Equity securities | 74,718 | 16,409 | 0 | 91,127 | 0 | |||||||||||||||||||||
Short-term investments | 2,595 | 1 | 0 | 2,596 | 0 | |||||||||||||||||||||
Total | $ | 1,422,390 | $ | 39,750 | $ | (14,112 | ) | $ | 1,448,027 | $ | (3,290 | ) | ||||||||||||||
(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 table sets 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 | |||||||||||||||||||||||||
December 31, 2014 | 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 | |||||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||||
U.S. government | 2 | $ | 5,275 | $ | (13 | ) | 0.3 | % | 8 | $ | 21,051 | $ | (180 | ) | 0.8 | % | ||||||||||
State and municipal | 45 | 108,721 | (290 | ) | 0.3 | % | 2 | 4,183 | (47 | ) | 1.1 | % | ||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||
Residential | 24 | 12,855 | (34 | ) | 0.3 | % | 109 | 100,752 | (1,356 | ) | 1.3 | % | ||||||||||||||
Commercial | 8 | 15,638 | (122 | ) | 0.8 | % | 5 | 9,519 | (136 | ) | 1.4 | % | ||||||||||||||
Total mortgage-backed securities | 32 | 28,493 | (156 | ) | 0.5 | % | 114 | 110,271 | (1,492 | ) | 1.3 | % | ||||||||||||||
Asset-backed securities | 24 | 23,351 | (60 | ) | 0.3 | % | 2 | 1,150 | (9 | ) | 0.8 | % | ||||||||||||||
Corporate | 103 | 142,046 | (1,820 | ) | 1.3 | % | 16 | 19,865 | (503 | ) | 2.5 | % | ||||||||||||||
Total fixed maturities | 206 | 307,886 | (2,340 | ) | 0.8 | % | 142 | 156,521 | (2,232 | ) | 1.4 | % | ||||||||||||||
Equity securities | 0 | 0 | 0 | 0 | % | 0 | 0 | 0 | 0 | % | ||||||||||||||||
Short-term investments | 2 | 803 | (1 | ) | 0.1 | % | 0 | 0 | 0 | 0 | % | |||||||||||||||
Total | 208 | $ | 308,689 | $ | (2,341 | ) | 0.8 | % | 142 | $ | 156,521 | $ | (2,232 | ) | 1.4 | % | ||||||||||
Less than 12 Months | 12 Months or More | |||||||||||||||||||||||||
December 31, 2013 | 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 | |||||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||||
U.S. government | 11 | $ | 26,396 | $ | (427 | ) | 1.6 | % | 0 | $ | 0 | $ | 0 | 0 | % | |||||||||||
State and municipal | 51 | 121,431 | (1,425 | ) | 1.2 | % | 4 | 8,062 | (346 | ) | 4.1 | % | ||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||
Residential | 229 | 207,821 | (7,064 | ) | 3.3 | % | 34 | 39,659 | (1,744 | ) | 4.2 | % | ||||||||||||||
Commercial | 11 | 22,311 | (290 | ) | 1.3 | % | 1 | 756 | (14 | ) | 1.8 | % | ||||||||||||||
Total mortgage-backed securities | 240 | 230,133 | (7,354 | ) | 3.1 | % | 35 | 40,415 | (1,758 | ) | 4.2 | % | ||||||||||||||
Asset-backed securities | 18 | 14,738 | (103 | ) | 0.7 | % | 0 | 0 | 0 | 0 | % | |||||||||||||||
Corporate | 90 | 115,735 | (2,621 | ) | 2.2 | % | 1 | 1,212 | (79 | ) | 6.1 | % | ||||||||||||||
Total fixed maturities | 410 | 508,432 | (11,929 | ) | 2.3 | % | 40 | 49,688 | (2,183 | ) | 4.2 | % | ||||||||||||||
Equity securities | 0 | 0 | 0 | 0 | % | 0 | 0 | 0 | 0 | % | ||||||||||||||||
Short-term investments | 0 | 0 | 0 | 0 | % | 0 | 0 | 0 | 0 | % | ||||||||||||||||
Total | 410 | $ | 508,432 | $ | (11,929 | ) | 2.3 | % | 40 | $ | 49,688 | $ | (2,183 | ) | 4.2 | % | ||||||||||
Summary of unrealized gains or losses | The following table summarizes those securities, excluding the rabbi trust, with unrealized gains or losses: | |||||||||||||||||||||||||
31-Dec-14 | December 31, 2013 | |||||||||||||||||||||||||
Number of positions held with unrealized: | ||||||||||||||||||||||||||
Gains | 778 | 590 | ||||||||||||||||||||||||
Losses | 350 | 450 | ||||||||||||||||||||||||
Number of positions held that individually exceed unrealized: | ||||||||||||||||||||||||||
Gains of $500,000 | 3 | 1 | ||||||||||||||||||||||||
Losses of $500,000 | 0 | 0 | ||||||||||||||||||||||||
Percentage of positions held with unrealized: | ||||||||||||||||||||||||||
Gains that were investment grade | 92 | % | 81 | % | ||||||||||||||||||||||
Losses that were investment grade | 84 | % | 93 | % | ||||||||||||||||||||||
Percentage of fair value held with unrealized: | ||||||||||||||||||||||||||
Gains that were investment grade | 94 | % | 88 | % | ||||||||||||||||||||||
Losses that were investment grade | 86 | % | 95 | % | ||||||||||||||||||||||
Unrealized loss by age and severity | The following table sets forth the amount of unrealized losses, excluding the rabbi trust, by age and severity at December 31, 2014 ($ in thousands): | |||||||||||||||||||||||||
Fair Value of | Total Gross | Less Than 5%* | 5% - 10%* | Total Gross | ||||||||||||||||||||||
Securities with | Unrealized | Greater | ||||||||||||||||||||||||
Unrealized | Losses | Than 10%* | ||||||||||||||||||||||||
Losses | ||||||||||||||||||||||||||
Age of Unrealized Losses: | ||||||||||||||||||||||||||
Three months or less | $ | 245,391 | $ | (1,077 | ) | $ | (1,004 | ) | $ | (74 | ) | $ | 0 | |||||||||||||
Four months through six months | 49,083 | (1,018 | ) | (585 | ) | (334 | ) | (99 | ) | |||||||||||||||||
Seven months through nine months | 11,639 | (171 | ) | (135 | ) | (36 | ) | 0 | ||||||||||||||||||
Ten months through twelve months | 2,576 | (74 | ) | (74 | ) | 0 | 0 | |||||||||||||||||||
Greater than twelve months | 156,521 | (2,232 | ) | (2,044 | ) | 0 | (188 | ) | ||||||||||||||||||
Total | $ | 465,210 | $ | (4,573 | ) | $ | (3,842 | ) | $ | (443 | ) | $ | (288 | ) | ||||||||||||
* | As a percentage of amortized cost or cost. | |||||||||||||||||||||||||
Change in unrealized gains (losses) on marketable securities | The change in unrealized gains (losses) on securities included the following ($ in thousands): | |||||||||||||||||||||||||
Pretax | ||||||||||||||||||||||||||
Fixed Maturities | Equity Securities | Short-Term Investments | Tax Effects | Net | ||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||
Unrealized holding gains (losses) on securities arising during the period | $ | 13,174 | $ | 1,440 | $ | 4 | $ | (5,116 | ) | $ | 9,502 | |||||||||||||||
Realized (gains) losses included in net earnings | (3,137 | ) | (1,303 | ) | (5 | ) | 1,556 | (2,889 | ) | |||||||||||||||||
Impairment losses recognized in net earnings | 160 | 0 | 0 | (56 | ) | 104 | ||||||||||||||||||||
Change in unrealized gain (loss) on securities, net | $ | 10,198 | $ | 137 | $ | (1 | ) | $ | (3,617 | ) | $ | 6,717 | ||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||
Unrealized holding gains (losses) on securities arising during the period | $ | (29,199 | ) | $ | 13,971 | $ | 1 | $ | 5,330 | $ | (9,898 | ) | ||||||||||||||
Realized (gains) losses included in net earnings | (6,818 | ) | (677 | ) | 0 | 2,623 | (4,872 | ) | ||||||||||||||||||
Impairment losses recognized in net earnings | 1,468 | 0 | 0 | (514 | ) | 954 | ||||||||||||||||||||
Change in unrealized gain (loss) on securities, net | $ | (34,549 | ) | $ | 13,294 | $ | 1 | $ | 7,439 | $ | (13,815 | ) | ||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||
Unrealized holding gains (losses) on securities arising during the period | $ | 10,678 | $ | 6,451 | $ | 0 | $ | (5,995 | ) | $ | 11,134 | |||||||||||||||
Realized (gains) losses included in net earnings(1) | (11,594 | ) | (13,853 | ) | 0 | 8,907 | (16,541 | ) | ||||||||||||||||||
Impairment losses recognized in net earnings | 1,393 | 0 | 0 | (487 | ) | 905 | ||||||||||||||||||||
Change in unrealized gain (loss) on securities, net | $ | 476 | $ | (7,402 | ) | $ | 0 | $ | 2,424 | $ | (4,502 | ) | ||||||||||||||
(1) The tax effect is exclusive of the release of the deferred tax valuation allowance of $6.4 million in 2012. | ||||||||||||||||||||||||||
Progression of credit losses on fixed maturity securities | The following table is a progression of credit losses on fixed maturity securities that were bifurcated between a credit and non-credit component ($ in thousands): | |||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
Balance at beginning of year | $ | 956 | $ | 487 | ||||||||||||||||||||||
Additions for: | ||||||||||||||||||||||||||
Previously impaired securities | 19 | 27 | ||||||||||||||||||||||||
Newly impaired securities | 15 | 659 | ||||||||||||||||||||||||
Previously all credit | 0 | 26 | ||||||||||||||||||||||||
Reductions for: | ||||||||||||||||||||||||||
Securities sold and paydowns | (139 | ) | (206 | ) | ||||||||||||||||||||||
Securities that no longer have a non-credit component | 0 | (37 | ) | |||||||||||||||||||||||
Balance at end of year | $ | 852 | $ | 956 | ||||||||||||||||||||||
Scheduled maturities of fixed maturity securities | Actual maturities may differ | |||||||||||||||||||||||||
from contractual maturities because certain securities may be called or prepaid by the issuers. | ||||||||||||||||||||||||||
Amortized | ||||||||||||||||||||||||||
Fair Value | 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 | $ | 89,487 | $ | 9,567 | $ | 1,102 | $ | 100,156 | $ | 99,523 | ||||||||||||||||
After one year through five years | 392,906 | 190,302 | 1,353 | 584,560 | 575,609 | |||||||||||||||||||||
After five years through ten years | 165,735 | 100,053 | 1,777 | 267,565 | 263,488 | |||||||||||||||||||||
After ten years | 11,741 | 1,219 | 2,628 | 15,588 | 14,966 | |||||||||||||||||||||
Mortgage- and asset-backed | 297,407 | 163,266 | 3,301 | 463,973 | 458,831 | |||||||||||||||||||||
Total | $ | 957,275 | $ | 464,407 | $ | 10,160 | $ | 1,431,843 | $ | 1,412,417 | ||||||||||||||||
Investment income | The following table shows investment income earned and investment expenses incurred ($ in thousands): | |||||||||||||||||||||||||
Twelve months ended December 31, | ||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||
Investment income: | ||||||||||||||||||||||||||
Interest income on fixed maturities, cash and cash equivalents | $ | 35,596 | $ | 36,113 | $ | 38,234 | ||||||||||||||||||||
Dividends on equity securities | 2,245 | 1,711 | 1,415 | |||||||||||||||||||||||
Gross investment income | 37,841 | 37,825 | 39,649 | |||||||||||||||||||||||
Investment expenses | (2,211 | ) | (2,279 | ) | (2,077 | ) | ||||||||||||||||||||
Net investment income | $ | 35,629 | $ | 35,546 | $ | 37,571 | ||||||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
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): | |||||||||||
Twelve Months December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Earnings before income taxes | $ | 83,138 | $ | 45,078 | $ | 22,088 | ||||||
Income taxes at statutory rate | 29,098 | 15,777 | 7,731 | |||||||||
Effect of: | ||||||||||||
Dividends-received deduction | (469 | ) | (357 | ) | (296 | ) | ||||||
Tax-exempt interest | (2,752 | ) | (2,743 | ) | (3,294 | ) | ||||||
Adjustment to valuation allowance | 1 | (48 | ) | (6,402 | ) | |||||||
Other | 58 | (184 | ) | 30 | ||||||||
Provision for income taxes as shown on the Consolidated Statements of Earnings | $ | 25,936 | $ | 12,445 | $ | (2,231 | ) | |||||
GAAP effective tax rate | 31.2 | % | 27.6 | % | (10.1 | )% | ||||||
Components of income tax expense | The total income tax provision (benefit) consists of ($ in thousands): | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Current | $ | 25,342 | $ | 10,541 | $ | 3,605 | ||||||
Deferred | 594 | 1,904 | (5,836 | ) | ||||||||
Provision for income taxes | $ | 25,936 | $ | 12,445 | $ | (2,231 | ) | |||||
Schedule of deferred tax assets and liabilities | The significant components of deferred tax assets and liabilities included in the Consolidated Balance Sheets were as follows ($ in thousands): | |||||||||||
As of December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
Discount on loss reserves | $ | 6,001 | $ | 7,045 | ||||||||
Unearned premium reserve | 40,918 | 39,401 | ||||||||||
Bad debts | 5,428 | 5,559 | ||||||||||
Accrued bonuses | 2,791 | 2,442 | ||||||||||
Deferred compensation | 5,372 | 4,842 | ||||||||||
Long-term incentive compensation | 1,193 | 2,040 | ||||||||||
Other | 5,157 | 5,473 | ||||||||||
Gross deferred tax assets | $ | 66,860 | $ | 66,803 | ||||||||
Valuation allowance for deferred tax assets | (166 | ) | (165 | ) | ||||||||
Total deferred tax assets | $ | 66,694 | $ | 66,638 | ||||||||
Deferred tax liabilities: | ||||||||||||
Deferred policy acquisition costs | $ | (31,650 | ) | $ | (30,890 | ) | ||||||
Investment securities – unrealized gains | (12,590 | ) | (8,973 | ) | ||||||||
Other | (1,951 | ) | (2,111 | ) | ||||||||
Total deferred tax liabilities | $ | (46,191 | ) | $ | (41,975 | ) | ||||||
Net deferred tax assets | $ | 20,503 | $ | 24,663 | ||||||||
Current income taxes | (481 | ) | 3,985 | |||||||||
Current and deferred income taxes | $ | 20,022 | $ | 28,648 | ||||||||
Computation_Of_Earnings_Per_Sh1
Computation Of Earnings Per Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Schedule of Earnings per Share | The following table illustrates our computations of basic and diluted net earnings per common share ($ in thousands, except per share figures): | |||||||||||
Twelve months ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net earnings | $ | 57,201 | $ | 32,633 | $ | 24,319 | ||||||
Average basic shares outstanding | 11,440 | 11,451 | 11,660 | |||||||||
Basic net earnings per share | $ | 5 | $ | 2.85 | $ | 2.09 | ||||||
Average basic shares outstanding | 11,440 | 11,451 | 11,660 | |||||||||
Restricted stock not vested | 37 | 46 | 28 | |||||||||
Dilutive effect of assumed option exercises | 1 | 29 | 97 | |||||||||
Dilutive effect of Performance Share Plan | 84 | 130 | 156 | |||||||||
Average diluted shares outstanding | 11,562 | 11,657 | 11,941 | |||||||||
Diluted net earnings per share | $ | 4.95 | $ | 2.8 | $ | 2.04 | ||||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||
Schedule of Shares Issued by Plan | The number of shares issued, by plan, for share-based compensation arrangements was as follows: | |||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
2013 Plan | Prior Plans | 2013 Plan | Prior Plans | |||||||||||||||||||||
Restricted Stock | 46,328 | 0 | 0 | 0 | 0 | |||||||||||||||||||
Non-employee Directors’ Stock | 8,016 | 0 | 6,517 | 0 | 5,502 | |||||||||||||||||||
Performance Shares | 0 | 55,245 | 0 | 17,934 | 49,098 | |||||||||||||||||||
Total | 54,344 | 55,245 | 6,517 | 17,934 | 54,600 | |||||||||||||||||||
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block] | The amount of total compensation cost for share-based compensation arrangements was as follows ($ in thousands): | |||||||||||||||||||||||
Twelve months ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Expense | Tax | Expense | Tax | Expense | Tax | |||||||||||||||||||
Recognized in | Benefit | Recognized in | Benefit | Recognized in | Benefit | |||||||||||||||||||
Earnings | Earnings | Earnings | ||||||||||||||||||||||
Restricted Stock | $ | 1,126 | $ | 394 | $ | 1,190 | $ | 417 | $ | 1,190 | $ | 417 | ||||||||||||
Non-employee Directors’ Stock Ownership Plan | 520 | 182 | 385 | 135 | 300 | 105 | ||||||||||||||||||
Employee Stock Purchase Plan | 55 | 0 | 54 | 0 | 55 | 0 | ||||||||||||||||||
Performance Shares | 933 | 327 | 2,380 | 833 | 1,704 | 596 | ||||||||||||||||||
Total | $ | 2,634 | $ | 903 | $ | 4,009 | $ | 1,384 | $ | 3,249 | $ | 1,118 | ||||||||||||
Schedule of Nonvested Restricted Stock Shares Activity | ||||||||||||||||||||||||
Restricted Stock | Number of | Weighted-average | ||||||||||||||||||||||
Shares | Grant Date Fair Value | |||||||||||||||||||||||
Non-vested as of January 1, 2014 | 72,234 | $49.44 | ||||||||||||||||||||||
Granted | 46,328 | $67.04 | ||||||||||||||||||||||
Vested | (72,234 | ) | $49.44 | |||||||||||||||||||||
Non-vested as of December 31, 2014 | 46,328 | $67.04 | ||||||||||||||||||||||
Valuation assumptions of stock options granted | We estimated the weighted-average grant date fair value of options granted during 2004 using the modified Black-Scholes valuation model and the following weighted-average assumptions: | |||||||||||||||||||||||
2004 Grants | ||||||||||||||||||||||||
Weighted-average grant date fair value | $ | 13.87 | ||||||||||||||||||||||
Dividend yield | 0.7 | % | ||||||||||||||||||||||
Expected volatility | 33 | % | ||||||||||||||||||||||
Risk-free interest rate | 4.3 | % | ||||||||||||||||||||||
Expected life (in years) | 7.5 | |||||||||||||||||||||||
Weighted-average grant exercise price | $ | 33.56 | ||||||||||||||||||||||
Outstanding as of December 31, 2014 | 0 | |||||||||||||||||||||||
Stock option activity | The following table describes activity for our SOP for the twelve-month period ended December 31, 2014: | |||||||||||||||||||||||
Options | Number of | Weighted- | Weighted- | Aggregate | ||||||||||||||||||||
Options | Average | Average | Intrinsic | |||||||||||||||||||||
Exercise | Remaining | Value (a) | ||||||||||||||||||||||
Price | Term | (in millions) | ||||||||||||||||||||||
(in years) | ||||||||||||||||||||||||
Outstanding as of January 1, 2014 | 16,000 | $ | 33.58 | |||||||||||||||||||||
Exercised | (14,000 | ) | 33.58 | |||||||||||||||||||||
Forfeited | (2,000 | ) | 33.58 | |||||||||||||||||||||
Outstanding as of December 31, 2014 | 0 | $ | 0 | 0 | $ | 0 | ||||||||||||||||||
Vested as of December 31, 2014 | 0 | $ | 0 | 0 | $ | 0 | ||||||||||||||||||
Exercisable as of December 31, 2014 | 0 | $ | 0 | 0 | $ | 0 | ||||||||||||||||||
Benefit_Plans_Tables
Benefit Plans (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||
Schedule of net benefit obligation | The following tables show data related to the APBO plan ($ in thousands): | ||||||||||||||
2014 | 2013 | ||||||||||||||
Net benefit obligation at beginning of year | $ | 4,473 | $ | 5,004 | |||||||||||
Service cost | 198 | 331 | |||||||||||||
Interest cost | 150 | 159 | |||||||||||||
Participant contributions | 28 | 27 | |||||||||||||
Plan amendment | (660 | ) | 0 | ||||||||||||
Assumption change | 534 | (342 | ) | ||||||||||||
Actuarial (gain) loss | (120 | ) | (364 | ) | |||||||||||
Gross benefits paid | (291 | ) | (342 | ) | |||||||||||
Net benefit obligation at end of year | $ | 4,313 | $ | 4,473 | |||||||||||
Schedule of weighted-average assumptions used | The following table discloses discount rates used to determine benefit obligations: | ||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Discount rate | 3.50% | 4.10% | 3.30% | ||||||||||||
Schedule of net benefit costs | The following table discloses the components of net periodic post-retirement benefit cost ($ in thousands): | ||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Service cost | $ | 198 | $ | 331 | $ | 119 | |||||||||
Interest cost | 150 | 159 | 136 | ||||||||||||
Amortization of prior service cost | 71 | 199 | 0 | ||||||||||||
Amortization of net cumulative (gain)/loss | (81 | ) | 0 | (23 | ) | ||||||||||
Net periodic post-retirement benefit cost | $ | 339 | $ | 690 | $ | 232 | |||||||||
Schedule of health care cost trend rates | The following table discloses the effects of a hypothetical one percentage point increase and the effects of a hypothetical one percentage point decrease in the assumed healthcare trend rate ($ in thousands): | ||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
A one percentage point hypothetical change in the assumed healthcare trend rate would have the following effect on the post-retirement benefit obligations: | |||||||||||||||
1% increase | $ | 396 | 349 | 389 | |||||||||||
1% decrease | (348 | ) | (318 | ) | (363 | ) | |||||||||
A one percentage point hypothetical change in the assumed healthcare trend rate would have the following effect on the aggregate of the service and interest cost components of net periodic post-retirement healthcare benefit costs: | |||||||||||||||
1% increase | $ | 40 | 53 | $ | 56 | ||||||||||
1% decrease | (34 | ) | (47 | ) | (49 | ) | |||||||||
Schedule of changes in fair value of plan assets | The following table reconciles the beginning and ending balances of the fair value of plan assets for the years ended December 31, 2014, and 2013 ($ in thousands): | ||||||||||||||
2014 | 2013 | ||||||||||||||
Fair value of plan assets at beginning of year | $ | 0 | $ | 0 | |||||||||||
Employer contributions | 263 | 315 | |||||||||||||
Participant contributions | 28 | 27 | |||||||||||||
Gross benefits paid | (291 | ) | (342 | ) | |||||||||||
Fair value of plan assets at end of year | $ | 0 | $ | 0 | |||||||||||
Schedule of amounts recognized in balance sheet | The following table presents the funded status and the amounts recognized in the Consolidated Balance Sheets ($ in thousands): | ||||||||||||||
2014 | 2013 | ||||||||||||||
Fair value of plan assets | $ | 0 | $ | 0 | |||||||||||
Benefit obligations | (4,313 | ) | (4,473 | ) | |||||||||||
Funded status at end of year | $ | (4,313 | ) | $ | (4,473 | ) | |||||||||
Contributions made after the measurement date | 0 | 0 | |||||||||||||
Unrecognized actuarial net (gain) loss | 0 | 0 | |||||||||||||
Unrecognized prior service cost | 0 | 0 | |||||||||||||
Net amount recognized at end of year | $ | (4,313 | ) | $ | (4,473 | ) | |||||||||
Schedule of expected benefit payments | The following table presents the ten-year forecast and best estimate of expected benefit payments ($ in thousands): | ||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
2015 | $ | 259 | 2014 | $ | 292 | 2013 | 315 | ||||||||
2016 | 294 | 2015 | 304 | 2014 | 341 | ||||||||||
2017 | 304 | 2016 | 346 | 2015 | 356 | ||||||||||
2018 | 314 | 2017 | 361 | 2016 | 390 | ||||||||||
2019 | 337 | 2018 | 398 | 2017 | 395 | ||||||||||
2020-2024 | 1,840 | 2019-2023 | 2,459 | 2018-2022 | 2,474 | ||||||||||
Ten Year Total | $ | 3,348 | $ | 4,160 | 4,270 | ||||||||||
Quarterly_Operating_Results_Ta
Quarterly Operating Results (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||
Schedule of quarterly financial information | The following are quarterly results of our consolidated operations for the three years ended December 31, 2014 ($ in thousands, except per share amounts): | |||||||||||||||||||
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | Total Year | ||||||||||||||||
2014 | ||||||||||||||||||||
Revenues | $ | 361,613 | $ | 367,954 | $ | 366,160 | $ | 365,982 | $ | 1,461,709 | ||||||||||
Net earnings | 10,327 | 10,667 | 14,855 | 21,352 | 57,201 | |||||||||||||||
Net earnings per share: | ||||||||||||||||||||
Basic | $ | 0.9 | $ | 0.93 | $ | 1.3 | $ | 1.87 | $ | 5 | ||||||||||
Diluted | 0.89 | 0.92 | 1.29 | 1.85 | 4.95 | |||||||||||||||
2013 | ||||||||||||||||||||
Revenues | $ | 356,102 | $ | 365,656 | $ | 359,145 | $ | 362,330 | $ | 1,443,233 | ||||||||||
Net earnings | 8,662 | 7,408 | 7,195 | 9,368 | 32,633 | |||||||||||||||
Net earnings per share: | ||||||||||||||||||||
Basic | $ | 0.75 | $ | 0.65 | $ | 0.63 | $ | 0.82 | $ | 2.85 | ||||||||||
Diluted | 0.74 | 0.64 | 0.62 | 0.81 | 2.8 | |||||||||||||||
2012 | ||||||||||||||||||||
Revenues | $ | 312,116 | $ | 331,081 | $ | 338,879 | $ | 367,510 | $ | 1,349,585 | ||||||||||
Net earnings | 4,294 | 6,954 | 5,154 | 7,917 | 24,319 | |||||||||||||||
Net earnings per share: | ||||||||||||||||||||
Basic | $ | 0.37 | $ | 0.59 | $ | 0.44 | $ | 0.68 | $ | 2.09 | ||||||||||
Diluted | 0.35 | 0.58 | 0.43 | 0.67 | 2.04 | |||||||||||||||
Net realized gains (losses) on investments amounted to: | ||||||||||||||||||||
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | Total Year | ||||||||||||||||
2014 | $ | 645 | $ | 1,846 | $ | 1,013 | $ | 781 | $ | 4,284 | ||||||||||
2013 | 3,824 | 794 | (546 | ) | 1,955 | 6,026 | ||||||||||||||
2012 | 238 | 2,166 | 268 | 21,382 | 24,055 | |||||||||||||||
We revised the presentation of our Consolidated Statements of Earnings for the years ending 2013 and 2012 to correctly classify $98.4 million and $100.0 million, respectively, of installment and other fee income as a component of total revenues and to conform to our current-year presentation (see Note 1 to the Consolidated Financial Statements). The following are the amounts of installment and other fee income that have been included in the revenue shown above that were not included in the amounts previously reported. | ||||||||||||||||||||
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | Total Year | ||||||||||||||||
2013 | $ | 25,300 | $ | 24,952 | $ | 24,183 | $ | 23,994 | $ | 98,428 | ||||||||||
2012 | 24,714 | 25,098 | 25,145 | 24,995 | 99,952 | |||||||||||||||
Schedule of Prior Period Adjustments | The following are the amounts of installment and other fee income that have been included in the revenue shown above that were not included in the amounts previously reported. | |||||||||||||||||||
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | Total Year | ||||||||||||||||
2013 | $ | 25,300 | $ | 24,952 | $ | 24,183 | $ | 23,994 | $ | 98,428 | ||||||||||
2012 | 24,714 | 25,098 | 25,145 | 24,995 | 99,952 | |||||||||||||||
Insurance_Reserves_Tables
Insurance Reserves (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Insurance [Abstract] | ||||||||||||
Liability for unpaid losses and LAE | The following table provides an analysis of changes in the liability for losses and LAE, net of reinsurance: | |||||||||||
($ in thousands) | 2014 | 2013 | 2012 | |||||||||
Balance at Beginning of Period | ||||||||||||
Unpaid losses on known claims | $ | 221,447 | $ | 205,589 | $ | 181,972 | ||||||
IBNR losses | 262,660 | 218,552 | 177,645 | |||||||||
LAE | 162,469 | 148,753 | 135,787 | |||||||||
Total unpaid losses and LAE | 646,577 | 572,894 | 495,403 | |||||||||
Reinsurance recoverables | (14,431 | ) | (13,678 | ) | (14,640 | ) | ||||||
Unpaid losses and LAE, net of reinsurance recoverables | 632,146 | 559,215 | 480,764 | |||||||||
Current Activity | ||||||||||||
Loss and LAE incurred: | ||||||||||||
Current accident year | 1,019,033 | 1,014,299 | 926,033 | |||||||||
Prior accident years | (17,405 | ) | 2,948 | 16,219 | ||||||||
Total loss and LAE incurred | 1,001,628 | 1,017,247 | 942,253 | |||||||||
Loss and LAE payments: | ||||||||||||
Current accident year | (602,732 | ) | (593,850 | ) | (553,549 | ) | ||||||
Prior accident years | (377,235 | ) | (350,466 | ) | (310,252 | ) | ||||||
Total loss and LAE payments | (979,967 | ) | (944,316 | ) | (863,801 | ) | ||||||
Balance at End of Period | ||||||||||||
Unpaid losses and LAE, net of reinsurance recoverables | 653,808 | 632,146 | 559,215 | |||||||||
Add back reinsurance recoverables | 14,370 | 14,431 | 13,678 | |||||||||
Total unpaid losses and LAE | $ | 668,177 | $ | 646,577 | $ | 572,894 | ||||||
Unpaid losses on known claims | $ | 235,037 | $ | 221,447 | $ | 205,589 | ||||||
IBNR losses | 277,482 | 262,660 | 218,552 | |||||||||
LAE | 155,658 | 162,469 | 148,753 | |||||||||
Total unpaid losses and LAE | $ | 668,177 | $ | 646,577 | $ | 572,894 | ||||||
Reinsurance_Tables
Reinsurance (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Reinsurance Disclosures [Abstract] | |||||||||||||||||||
Schedule of reinsurance assumed and ceded | The following table shows written and earned premium included in earnings for reinsurance assumed and amounts deducted from written and earned premium in connection with reinsurance ceded ($ in thousands): | ||||||||||||||||||
Year | Direct Written | Reinsurance | Reinsurance | Net Written | % of Amount | ||||||||||||||
Premium | Assumed | Ceded | Premium | Assumed to | |||||||||||||||
Net | |||||||||||||||||||
2014 | $ | 1,360,807 | $ | 63 | $ | (13,266 | ) | $ | 1,347,604 | 0 | % | ||||||||
2013 | 1,339,803 | 16 | (9,927 | ) | 1,329,892 | 0 | % | ||||||||||||
2012 | 1,254,386 | 543 | (7,731 | ) | 1,247,198 | 0 | % | ||||||||||||
Year | Direct Earned | Reinsurance | Reinsurance | Net Earned | % of Amount | ||||||||||||||
Premium | Assumed | Ceded | Premium | Assumed to | |||||||||||||||
Net | |||||||||||||||||||
2014 | $ | 1,337,557 | $ | 57 | $ | (11,679 | ) | $ | 1,325,935 | 0 | % | ||||||||
2013 | 1,311,942 | 15 | (9,432 | ) | 1,302,525 | 0 | % | ||||||||||||
2012 | 1,190,773 | 542 | (7,225 | ) | 1,184,090 | 0 | % | ||||||||||||
Statutory_Information_Tables
Statutory Information (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Insurance [Abstract] | |||||||||
Statutory accounting practices disclosure | Net earnings and capital and surplus on a statutory basis were as follows ($ in thousands): | ||||||||
Statutory Net Earnings | Statutory Capital and Surplus | ||||||||
2014 | 2013 | 2012 | 2014 | 2013 | |||||
$67,360 | $44,906 | $31,141 | $682,068 | $673,973 |
Commitments_And_Contingencies_
Commitments And Contingencies (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||
Schedule of future minimum rental payments for operating leases | Minimum rental commitments under non-cancelable leases with an initial or remaining term of more than one year as of December 31, 2014, were as follows ($ in thousands): | |||||||||||
Due in | Operating Leases | Capital Leases | ||||||||||
2015 | $ | 9,200 | $ | 481 | ||||||||
2016 | 4,921 | 425 | ||||||||||
2017 | 3,361 | 318 | ||||||||||
2018 | 2,927 | 236 | ||||||||||
2019 | 1,153 | 222 | ||||||||||
Thereafter | 375 | 0 | ||||||||||
Total | $ | 21,937 | $ | 1,682 | ||||||||
Schedule of Guarantor Obligations | The operating leases above include leased vehicles. As vehicles are surrendered, they are sold for cash by the lessor. We guarantee that proceeds from sales will be at least equal to the lessor's depreciated book value. Otherwise, we are credited the excess or we pay the deficit. The lessors depreciated book value at December 31, 2014, on the vehicles we lease was $6.4 million, which represents the maximum deficit we would be required to pay if the lessor received no proceeds from the sale. Historically, we have not made any material additional rental payments due to surrendered vehicles. | |||||||||||
Schedule of Rent Expense | Lease expense incurred for all leases during the last three years was as follows ($ in thousands): | |||||||||||
Twelve months ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Lease expense | $ | 10,447 | $ | 12,015 | $ | 12,389 | ||||||
Sublease income | 0 | (163 | ) | (420 | ) | |||||||
Total | $ | 10,447 | $ | 11,851 | $ | 11,969 | ||||||
Additional_Information_Tables
Additional Information (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Additional Information [Abstract] | ||||||||||||
Schedule of allowances for uncollectible accounts | A progression of the aggregate allowance follows ($ in thousands): | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Beginning balance | $ | 15,884 | $ | 16,124 | $ | 13,497 | ||||||
Provision for losses | 19,541 | 20,913 | 24,884 | |||||||||
Uncollectible amounts written off | (19,916 | ) | (21,154 | ) | (22,257 | ) | ||||||
Ending balance | $ | 15,510 | $ | 15,884 | $ | 16,124 | ||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income | ||||||||||||||||||||||||||||||||||||
The components of other comprehensive income before and after tax are as follows ($ in thousands): | |||||||||||||||||||||||||||||||||||||
Twelve Months Ended December 31, | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
Before Tax | Income Tax | Net | Before Tax | Income Tax | Net | Before Tax | Income Tax | Net | |||||||||||||||||||||||||||||
Accumulated change in postretirement benefit liability, beginning of period | $ | (62 | ) | $ | 22 | $ | (40 | ) | $ | (967 | ) | $ | 339 | $ | (629 | ) | $ | 519 | $ | (182 | ) | $ | 337 | ||||||||||||||
Effect on other comprehensive income | 235 | (82 | ) | 153 | 906 | (317 | ) | 589 | (1,487 | ) | 520 | (966 | ) | ||||||||||||||||||||||||
Accumulated change in postretirement benefit liability, end of period | $ | 174 | $ | (61 | ) | $ | 113 | $ | (62 | ) | $ | 22 | $ | (40 | ) | $ | (967 | ) | $ | 339 | $ | (629 | ) | ||||||||||||||
Accumulated unrealized gains on investments, net, beginning of period | $ | 25,638 | $ | (8,973 | ) | $ | 16,665 | $ | 46,892 | $ | (16,412 | ) | $ | 30,480 | $ | 53,817 | $ | (18,836 | ) | $ | 34,981 | ||||||||||||||||
Other comprehensive income before reclassification | 14,618 | (5,116 | ) | 9,502 | (15,227 | ) | 5,330 | (9,898 | ) | 17,129 | (5,995 | ) | 11,134 | ||||||||||||||||||||||||
Reclassification adjustment for other-than-temporary impairments included in net income | 160 | (56 | ) | 104 | 1,468 | (514 | ) | 954 | 1,393 | (487 | ) | 905 | |||||||||||||||||||||||||
Reclassification adjustment for realized gains included in net income | (4,444 | ) | 1,556 | (2,889 | ) | (7,495 | ) | 2,623 | (4,872 | ) | (25,447 | ) | 8,907 | (16,541 | ) | ||||||||||||||||||||||
Effect on other comprehensive income | 10,334 | (3,617 | ) | 6,717 | (21,254 | ) | 7,439 | (13,815 | ) | (6,926 | ) | 2,424 | (4,502 | ) | |||||||||||||||||||||||
Accumulated unrealized gains on investments, net, end of period | $ | 35,972 | $ | (12,590 | ) | $ | 23,382 | $ | 25,638 | $ | (8,973 | ) | $ | 16,665 | $ | 46,892 | $ | (16,412 | ) | $ | 30,480 | ||||||||||||||||
Accumulated other comprehensive income, beginning of period | $ | 25,576 | $ | (8,952 | ) | $ | 16,624 | $ | 45,924 | $ | (16,073 | ) | $ | 29,851 | $ | 54,336 | $ | (19,018 | ) | $ | 35,319 | ||||||||||||||||
Change in postretirement benefit liability | 235 | (82 | ) | 153 | 906 | (317 | ) | 589 | (1,487 | ) | 520 | (966 | ) | ||||||||||||||||||||||||
Change in unrealized gains on investments, net | 10,334 | (3,617 | ) | 6,717 | (21,254 | ) | 7,439 | (13,815 | ) | (6,926 | ) | 2,424 | (4,502 | ) | |||||||||||||||||||||||
Effect on other comprehensive income | 10,569 | (3,699 | ) | 6,870 | (20,348 | ) | 7,122 | (13,226 | ) | (8,412 | ) | 2,944 | (5,468 | ) | |||||||||||||||||||||||
Accumulated other comprehensive income, end of period | $ | 36,145 | $ | (12,651 | ) | $ | 23,494 | $ | 25,576 | $ | (8,952 | ) | $ | 16,624 | $ | 45,924 | $ | (16,073 | ) | $ | 29,851 | ||||||||||||||||
Significant_Reporting_and_Acco3
Significant Reporting and Accounting Policies (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
states | |||
Concentration Risk [Line Items] | |||
Number of states primarilay writes insurance | 4 | ||
Installment and other fee income | $95,242,000 | $98,428,000 | $99,952,000 |
Available-for-sale securities | 21,200,000 | ||
Deferred policy acquisition cost, amortization expense | ($204,700,000) | ($206,700,000) | ($194,900,000) |
Off premium charges | 90 days | ||
Personal auto insurance [Member] | Sales Revenue, Product Line [Member] | Product Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Portion of total gross written premiums (percent) | 91.00% | ||
Personal auto insurance [Member] | Sales Revenue, Product Line [Member] | Geographic Concentration Risk [Member] | California | |||
Concentration Risk [Line Items] | |||
Portion of total gross written premiums (percent) | 50.00% |
Significant_Reporting_and_Acco4
Significant Reporting and Accounting Policies Significant Reporting and Accounting Policies (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ||
Gross Asset | $119,810,000 | |
Accumulated Depreciation | -63,929,000 | -53,368,000 |
Net Asset | 55,880,000 | 48,061,000 |
Capital Leases [Abstract] | ||
Capital leases net of depreciation | 1,800,000 | |
Capital lease accumulated depreciation | 900,000 | |
Real Estate Related [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross Asset | 41,449,000 | |
Accumulated Depreciation | -6,525,000 | |
Net Asset | 34,924,000 | |
Computer Equipment & Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross Asset | 66,125,000 | |
Accumulated Depreciation | -48,371,000 | |
Net Asset | 17,755,000 | |
Furniture & Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross Asset | 12,235,000 | |
Accumulated Depreciation | -9,034,000 | |
Net Asset | $3,202,000 |
Fair_Value_Fair_Value_by_Hiera
Fair Value - Fair Value by Hierarchy (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | $1,527,054 | $1,448,027 |
Long-term debt | 291,044 | 272,632 |
Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 1,431,843 | 1,354,305 |
U.S. government | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 66,933 | 64,666 |
State and municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 503,650 | 487,111 |
Mortgage-backed securities: | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 405,366 | 359,162 |
Residential | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 354,528 | 323,346 |
Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 50,838 | 35,816 |
Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 0 | 1,291 |
Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 58,607 | 71,259 |
Corporates | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 397,286 | 370,816 |
Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 94,408 | 91,127 |
Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 803 | 2,596 |
Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Cash and cash equivalents | 84,541 | 134,211 |
Total cash and investments | 1,611,594 | 1,582,238 |
Percentage of total cash and investments | 100.00% | 100.00% |
Recurring basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Cash and cash equivalents | 84,541 | 134,211 |
Total cash and investments | 245,795 | 291,033 |
Percentage of total cash and investments | 15.30% | 18.40% |
Recurring basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Cash and cash equivalents | 0 | 0 |
Total cash and investments | 1,362,514 | 1,285,345 |
Percentage of total cash and investments | 84.50% | 81.20% |
Recurring basis | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Cash and cash equivalents | 0 | 0 |
Total cash and investments | 3,285 | 5,860 |
Percentage of total cash and investments | 0.20% | 0.40% |
Recurring basis | Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 1,431,843 | 1,354,305 |
Recurring basis | Fixed maturities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 66,847 | 64,496 |
Recurring basis | Fixed maturities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 1,361,711 | 1,283,949 |
Recurring basis | Fixed maturities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 3,285 | 5,860 |
Recurring basis | U.S. government | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 66,933 | 64,666 |
Recurring basis | U.S. government | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 66,847 | 64,496 |
Recurring basis | U.S. government | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 87 | 171 |
Recurring basis | U.S. government | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | State and municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 503,650 | 487,111 |
Recurring basis | State and municipal | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | State and municipal | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 503,650 | 487,111 |
Recurring basis | State and municipal | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Mortgage-backed securities: | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 405,366 | 359,162 |
Recurring basis | Mortgage-backed securities: | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Mortgage-backed securities: | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 405,366 | 359,162 |
Recurring basis | Mortgage-backed securities: | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Residential | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 354,528 | 323,346 |
Recurring basis | Residential | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Residential | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 354,528 | 323,346 |
Recurring basis | Residential | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 50,838 | 35,816 |
Recurring basis | Commercial | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Commercial | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 50,838 | 35,816 |
Recurring basis | Commercial | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 0 | 1,291 |
Recurring basis | Collateralized mortgage obligations | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Collateralized mortgage obligations | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 0 | 1,291 |
Recurring basis | Collateralized mortgage obligations | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 58,607 | 71,259 |
Recurring basis | Asset-backed securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Asset-backed securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 58,457 | 70,573 |
Recurring basis | Asset-backed securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 150 | 686 |
Recurring basis | Corporates | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 397,286 | 370,816 |
Recurring basis | Corporates | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Corporates | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 394,152 | 365,642 |
Recurring basis | Corporates | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 3,134 | 5,175 |
Recurring basis | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 94,408 | 91,127 |
Recurring basis | Equity securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 94,408 | 91,127 |
Recurring basis | Equity securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Equity securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 803 | 2,596 |
Recurring basis | Short-term investments | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 0 | 1,200 |
Recurring basis | Short-term investments | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | 803 | 1,396 |
Recurring basis | Short-term investments | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities | $0 | $0 |
Fair_Value_Level_3_Investments
Fair Value - Level 3 Investments (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Level 3 reconciliation | ||
Number of securities | 7 | |
Number of non-binding securities | 5 | |
Number of unaffiliated securities | 1 | |
Number of nationally recognized securities | 1 | |
Recurring basis | Level 3 | ||
Level 3 reconciliation | ||
Balance at beginning of period | $5,860 | $12,813 |
Included in net earnings | 274 | 852 |
Included in other comprehensive income | -231 | -895 |
Purchases | 0 | 0 |
Sales | -880 | -3,845 |
Settlements | -1,739 | -2,729 |
Transfers in | 0 | 995 |
Transfers out | 0 | -1,331 |
Balance at end of period | 3,285 | 5,860 |
Recurring basis | Level 3 | U.S. Government | ||
Level 3 reconciliation | ||
Balance at beginning of period | 0 | 3,712 |
Included in net earnings | 0 | 268 |
Included in other comprehensive income | 0 | -418 |
Purchases | 0 | 0 |
Sales | 0 | -2,968 |
Settlements | 0 | -594 |
Transfers in | 0 | 0 |
Transfers out | 0 | 0 |
Balance at end of period | 0 | 0 |
Recurring basis | Level 3 | Corporates | ||
Level 3 reconciliation | ||
Balance at beginning of period | 5,175 | 9,101 |
Included in net earnings | 274 | 583 |
Included in other comprehensive income | -230 | -477 |
Purchases | 0 | 0 |
Sales | -880 | -877 |
Settlements | -1,204 | -1,824 |
Transfers in | 0 | 0 |
Transfers out | 0 | -1,331 |
Balance at end of period | 3,134 | 5,175 |
Recurring basis | Level 3 | Asset-Backed Securities | ||
Level 3 reconciliation | ||
Balance at beginning of period | 686 | 0 |
Included in net earnings | 0 | 0 |
Included in other comprehensive income | -1 | 1 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements | -534 | -310 |
Transfers in | 0 | 995 |
Transfers out | 0 | 0 |
Balance at end of period | $150 | $686 |
Fair_Value_Fair_Value_of_Finan
Fair Value - Fair Value of Financial Instruments (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities | $1,527,054 | $1,448,027 |
Long-term debt | 291,044 | 272,632 |
Fixed maturities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities | 1,431,843 | 1,354,305 |
Equity securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities | 94,408 | 91,127 |
Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities | 803 | 2,596 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 84,541 | 134,211 |
Total cash and investments | 1,611,594 | 1,582,238 |
Long-term debt | 275,000 | 275,000 |
Carrying Value | Fixed maturities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities | 1,431,843 | 1,354,305 |
Carrying Value | Equity securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities | 94,408 | 91,127 |
Carrying Value | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities | 803 | 2,596 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 84,541 | 134,211 |
Total cash and investments | 1,611,594 | 1,582,238 |
Long-term debt | 291,044 | 272,632 |
Fair Value | Fixed maturities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities | 1,431,843 | 1,354,305 |
Fair Value | Equity securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities | 94,408 | 91,127 |
Fair Value | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities | $803 | $2,596 |
Investments_Textual_Details
Investments - Textual (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Proceeds from sale of securities | $250,800,000 | $465,100,000 | $491,600,000 |
Receivable for securities sold | 4,549,000 | 2,791,000 | 48,500,000 |
Gross realized gains on sale of securities | 5,100,000 | 9,500,000 | 26,000,000 |
Gross realized losses on sale of securities | $700,000 | $2,000,000 | $600,000 |
Investments_Investments_by_maj
Investments - Investments by major category (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost or Cost | $1,491,082 | $1,422,390 | |
Gross Unrealized Gains | 40,544 | 39,750 | |
Gross Unrealized Losses | -4,573 | -14,112 | |
Fair Value | 1,527,054 | 1,448,027 | |
OTTI Recognized in Accumulated OCI | -3,433 | -3,290 | [1] |
Fixed maturities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost or Cost | 1,412,417 | 1,345,077 | |
Gross Unrealized Gains | 23,998 | 23,340 | |
Gross Unrealized Losses | -4,572 | -14,112 | |
Fair Value | 1,431,843 | 1,354,305 | |
OTTI Recognized in Accumulated OCI | -3,433 | -3,290 | [1] |
U.S. government | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost or Cost | 66,625 | 64,194 | |
Gross Unrealized Gains | 502 | 900 | |
Gross Unrealized Losses | -193 | -427 | |
Fair Value | 66,933 | 64,666 | |
OTTI Recognized in Accumulated OCI | 0 | 0 | [1] |
State and municipal | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost or Cost | 493,350 | 478,092 | |
Gross Unrealized Gains | 10,637 | 10,789 | |
Gross Unrealized Losses | -337 | -1,771 | |
Fair Value | 503,650 | 487,111 | |
OTTI Recognized in Accumulated OCI | -69 | -73 | [1] |
Mortgage-backed securities: | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost or Cost | 400,285 | 365,950 | |
Gross Unrealized Gains | 6,729 | 2,324 | |
Gross Unrealized Losses | -1,648 | -9,113 | |
Fair Value | 405,366 | 359,162 | |
OTTI Recognized in Accumulated OCI | -2,914 | -2,435 | [1] |
Residential | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost or Cost | 349,371 | 330,169 | |
Gross Unrealized Gains | 6,547 | 1,985 | |
Gross Unrealized Losses | -1,390 | -8,809 | |
Fair Value | 354,528 | 323,346 | |
OTTI Recognized in Accumulated OCI | -2,914 | -2,435 | [1] |
Commercial | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost or Cost | 50,914 | 35,781 | |
Gross Unrealized Gains | 182 | 339 | |
Gross Unrealized Losses | -258 | -304 | |
Fair Value | 50,838 | 35,816 | |
OTTI Recognized in Accumulated OCI | 0 | 0 | [1] |
Collateralized mortgage obligations | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost or Cost | 0 | 1,228 | |
Gross Unrealized Gains | 0 | 63 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 0 | 1,291 | |
OTTI Recognized in Accumulated OCI | 0 | -161 | [1] |
Asset-backed securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost or Cost | 58,546 | 71,183 | |
Gross Unrealized Gains | 131 | 178 | |
Gross Unrealized Losses | -70 | -103 | |
Fair Value | 58,607 | 71,259 | |
OTTI Recognized in Accumulated OCI | -8 | -8 | [1] |
Corporates | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost or Cost | 393,611 | 364,430 | |
Gross Unrealized Gains | 5,999 | 9,086 | |
Gross Unrealized Losses | -2,324 | -2,700 | |
Fair Value | 397,286 | 370,816 | |
OTTI Recognized in Accumulated OCI | -441 | -612 | [1] |
Equity securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost or Cost | 77,862 | 74,718 | |
Gross Unrealized Gains | 16,546 | 16,409 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 94,408 | 91,127 | |
OTTI Recognized in Accumulated OCI | 0 | 0 | [1] |
Short-term investments | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost or Cost | 803 | 2,595 | |
Gross Unrealized Gains | 0 | 1 | |
Gross Unrealized Losses | -1 | 0 | |
Fair Value | 803 | 2,596 | |
OTTI Recognized in Accumulated OCI | $0 | $0 | |
[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 $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 350 | 450 |
Less than 12 Months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | $308,689,000 | $508,432,000 |
Less than 12 Months, Gross Unrealized Losses | -2,341,000 | -11,929,000 |
Unrealized Losses as Percentage of Cost | 0.80% | 2.30% |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 208 | 410 |
Less than 12 Months | Short-term investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months., Number of Securities with Unrealized Losses | 2 | 0 |
Less than 12 Months, Fair Value | 803,000 | 0 |
Less than 12 Months, Gross Unrealized Losses | -1,000 | 0 |
Unrealized Losses as Percentage of Cost | 0.10% | 0.00% |
12 Months or More | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Losses as Percentage of Cost | 1.40% | 4.20% |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 142 | 40 |
12 Months or More, Fair Value | 156,521,000 | 49,688,000 |
12 Months or More, Gross Unrealized Losses | -2,232,000 | -2,183,000 |
12 Months or More | Short-term investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Losses as Percentage of Cost | 0.00% | 0.00% |
12 Months or More, Number of Securities with Unrealized Losses | 0 | 0 |
12 Months or More, Fair Value | 0 | 0 |
12 Months or More, Gross Unrealized Losses | 0 | 0 |
Maximum [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Threshold for impairment evaluation, percentage of book value | 95.00% | |
Minimum [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Threshold for impairment evaluation, unrealized loss amount | 100,000 | |
Rabbi Trust [Member] | Less than 12 Months | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months., Number of Securities with Unrealized Losses | 206 | 410 |
Less than 12 Months, Fair Value | 307,886,000 | 508,432,000 |
Less than 12 Months, Gross Unrealized Losses | -2,340,000 | -11,929,000 |
Unrealized Losses as Percentage of Cost | 0.80% | 2.30% |
Rabbi Trust [Member] | Less than 12 Months | U.S. government | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months., Number of Securities with Unrealized Losses | 2 | 11 |
Less than 12 Months, Fair Value | 5,275,000 | 26,396,000 |
Less than 12 Months, Gross Unrealized Losses | -13,000 | -427,000 |
Unrealized Losses as Percentage of Cost | 0.30% | 1.60% |
Rabbi Trust [Member] | Less than 12 Months | State and municipal | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months., Number of Securities with Unrealized Losses | 45 | 51 |
Less than 12 Months, Fair Value | 108,721,000 | 121,431,000 |
Less than 12 Months, Gross Unrealized Losses | -290,000 | -1,425,000 |
Unrealized Losses as Percentage of Cost | 0.30% | 1.20% |
Rabbi Trust [Member] | Less than 12 Months | Mortgage-backed securities: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months., Number of Securities with Unrealized Losses | 32 | 240 |
Less than 12 Months, Fair Value | 28,493,000 | 230,133,000 |
Less than 12 Months, Gross Unrealized Losses | -156,000 | -7,354,000 |
Unrealized Losses as Percentage of Cost | 0.50% | 3.10% |
Rabbi Trust [Member] | Less than 12 Months | Residential | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months., Number of Securities with Unrealized Losses | 24 | 229 |
Less than 12 Months, Fair Value | 12,855,000 | 207,821,000 |
Less than 12 Months, Gross Unrealized Losses | -34,000 | -7,064,000 |
Unrealized Losses as Percentage of Cost | 0.30% | 3.30% |
Rabbi Trust [Member] | Less than 12 Months | Commercial | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months., Number of Securities with Unrealized Losses | 8 | 11 |
Less than 12 Months, Fair Value | 15,638,000 | 22,311,000 |
Less than 12 Months, Gross Unrealized Losses | -122,000 | -290,000 |
Unrealized Losses as Percentage of Cost | 0.80% | 1.30% |
Rabbi Trust [Member] | Less than 12 Months | Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months., Number of Securities with Unrealized Losses | 24 | 18 |
Less than 12 Months, Fair Value | 23,351,000 | 14,738,000 |
Less than 12 Months, Gross Unrealized Losses | -60,000 | -103,000 |
Unrealized Losses as Percentage of Cost | 0.30% | 0.70% |
Rabbi Trust [Member] | Less than 12 Months | Corporates | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months., Number of Securities with Unrealized Losses | 103 | 90 |
Less than 12 Months, Fair Value | 142,046,000 | 115,735,000 |
Less than 12 Months, Gross Unrealized Losses | -1,820,000 | -2,621,000 |
Unrealized Losses as Percentage of Cost | 1.30% | 2.20% |
Rabbi Trust [Member] | Less than 12 Months | Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months., Number of Securities with Unrealized Losses | 0 | 0 |
Less than 12 Months, Fair Value | 0 | 0 |
Less than 12 Months, Gross Unrealized Losses | 0 | 0 |
Unrealized Losses as Percentage of Cost | 0.00% | 0.00% |
Rabbi Trust [Member] | 12 Months or More | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Losses as Percentage of Cost | 1.40% | 4.20% |
12 Months or More, Number of Securities with Unrealized Losses | 142 | 40 |
12 Months or More, Fair Value | 156,521,000 | 49,688,000 |
12 Months or More, Gross Unrealized Losses | -2,232,000 | -2,183,000 |
Rabbi Trust [Member] | 12 Months or More | U.S. government | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Losses as Percentage of Cost | 0.80% | 0.00% |
12 Months or More, Number of Securities with Unrealized Losses | 8 | 0 |
12 Months or More, Fair Value | 21,051,000 | 0 |
12 Months or More, Gross Unrealized Losses | -180,000 | 0 |
Rabbi Trust [Member] | 12 Months or More | State and municipal | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Losses as Percentage of Cost | 1.10% | 4.10% |
12 Months or More, Number of Securities with Unrealized Losses | 2 | 4 |
12 Months or More, Fair Value | 4,183,000 | 8,062,000 |
12 Months or More, Gross Unrealized Losses | -47,000 | -346,000 |
Rabbi Trust [Member] | 12 Months or More | Mortgage-backed securities: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Losses as Percentage of Cost | 1.30% | 4.20% |
12 Months or More, Number of Securities with Unrealized Losses | 114 | 35 |
12 Months or More, Fair Value | 110,271,000 | 40,415,000 |
12 Months or More, Gross Unrealized Losses | -1,492,000 | -1,758,000 |
Rabbi Trust [Member] | 12 Months or More | Residential | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Losses as Percentage of Cost | 1.30% | 4.20% |
12 Months or More, Number of Securities with Unrealized Losses | 109 | 34 |
12 Months or More, Fair Value | 100,752,000 | 39,659,000 |
12 Months or More, Gross Unrealized Losses | -1,356,000 | -1,744,000 |
Rabbi Trust [Member] | 12 Months or More | Commercial | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Losses as Percentage of Cost | 1.40% | 1.80% |
12 Months or More, Number of Securities with Unrealized Losses | 5 | 1 |
12 Months or More, Fair Value | 9,519,000 | 756,000 |
12 Months or More, Gross Unrealized Losses | -136,000 | -14,000 |
Rabbi Trust [Member] | 12 Months or More | Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Losses as Percentage of Cost | 0.80% | 0.00% |
12 Months or More, Number of Securities with Unrealized Losses | 2 | 0 |
12 Months or More, Fair Value | 1,150,000 | 0 |
12 Months or More, Gross Unrealized Losses | -9,000 | 0 |
Rabbi Trust [Member] | 12 Months or More | Corporates | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Losses as Percentage of Cost | 2.50% | 6.10% |
12 Months or More, Number of Securities with Unrealized Losses | 16 | 1 |
12 Months or More, Fair Value | 19,865,000 | 1,212,000 |
12 Months or More, Gross Unrealized Losses | -503,000 | -79,000 |
Rabbi Trust [Member] | 12 Months or More | Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Losses as Percentage of Cost | 0.00% | 0.00% |
12 Months or More, Number of Securities with Unrealized Losses | 0 | 0 |
12 Months or More, Fair Value | 0 | 0 |
12 Months or More, Gross Unrealized Losses | $0 | $0 |
Investments_Summary_of_unreali
Investments - Summary of unrealized gains and losses (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Securities | Securities | |
Investments, Debt and Equity Securities [Abstract] | ||
Number of positions held with unrealized gains | 778 | 590 |
Number of positions held with unrealized losses | 350 | 450 |
Number of positions held that individually exceed unrealized gains of $500,000 | 3 | 1 |
Individual unrealized gain threshold | $500,000 | $500,000 |
Number of positions held that individually exceed unrealized losses of $500,000 | 0 | 0 |
Individual unrealized loss threshold | $500,000 | $500,000 |
Percentage of positions held with unrealized gains that were investment grade | 92.00% | 81.00% |
Percentage of positions held with unrealized losses that were investment grade | 84.00% | 93.00% |
Percentage of fair value held with unrealized gains that were investment grade | 94.00% | 88.00% |
Percentage of fair value held with unrealized losses that were investment grade | 86.00% | 95.00% |
Investments_Unrealized_losses_
Investments - Unrealized losses by age and severity (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value of Securities with Unrealized Losses | $465,210 | |
Total Gross Unrealized Losses | -4,573 | |
0-3 months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value of Securities with Unrealized Losses, 0-12 Months | 245,391 | |
Total Gross Unrealized Losses, 0-12 Months | -1,077 | |
3-6 months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value of Securities with Unrealized Losses, 0-12 Months | 49,083 | |
Total Gross Unrealized Losses, 0-12 Months | -1,018 | |
6-9 months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value of Securities with Unrealized Losses, 0-12 Months | 11,639 | |
Total Gross Unrealized Losses, 0-12 Months | -171 | |
9-12 months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value of Securities with Unrealized Losses, 0-12 Months | 2,576 | |
Total Gross Unrealized Losses, 0-12 Months | -74 | |
Greater than twelve months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value of Securities with Unrealized Losses, Greater Than 12 Months | 156,521 | 49,688 |
Total Gross Unrealized Losses, Greater Than 12 Months | -2,232 | -2,183 |
Less Than 5% as a Percentage of Amortized Cost or Cost | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses | -3,842 | |
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 | -1,004 | |
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 | -585 | |
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 | -135 | |
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 | -74 | |
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 | -2,044 | |
5% - 10% as a Percentage of Amortized Cost or Cost | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses | -443 | |
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 | -74 | |
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 | -334 | |
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 | -36 | |
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 | 0 | |
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 | |
Greater Than 10% as a Percentage of Amortized Cost or Cost | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses | -288 | |
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 | |
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 | -99 | |
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 | |
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 | |
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 | ($188) |
Investments_Change_in_unrealiz
Investments - Change in unrealized gains and losses (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Schedule of Available-for-sale Securities [Line Items] | ||||
Unrealized holding gains (losses) on securities arising during the period, pre-tax | $14,618,000 | ($15,227,000) | $17,129,000 | |
Realized (gains) losses on securities sold, pre-tax | 4,444,000 | 7,495,000 | 25,447,000 | |
Impairment losses recognized in net earnings, pre-tax | -160,000 | -1,468,000 | -1,393,000 | |
Unrealized holding gains (losses) on securities arising during the period, tax effects | -5,116,000 | 5,330,000 | -5,995,000 | |
Realized (gains) losses on securities sold, tax effects | 1,556,000 | 2,623,000 | 8,907,000 | |
Impairment losses recognized in net earnings, tax effect | -56,000 | -514,000 | -487,000 | |
Change in unrealized gains (losses) on marketable securities, net, tax effects | -3,617,000 | 7,439,000 | 2,424,000 | |
Unrealized holding gains (losses) on securities arising during period, net of tax | 9,502,000 | -9,898,000 | 11,134,000 | |
Realized (gains) losses on securities sold, net of tax | 2,889,000 | 4,872,000 | 16,541,000 | |
Impairment loss recognized in earnings, net of tax | 104,000 | 954,000 | 905,000 | |
Change in unrealized gains (losses) on marketable securities, net, net of tax | 6,717,000 | -13,815,000 | -4,502,000 | |
Deferred tax asset valuation allowance | 6,400,000 | |||
Fixed maturities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Unrealized holding gains (losses) on securities arising during the period, pre-tax | 13,174,000 | -29,199,000 | 10,678,000 | |
Realized (gains) losses on securities sold, pre-tax | -3,137,000 | -6,818,000 | -11,594,000 | [1] |
Impairment losses recognized in net earnings, pre-tax | 160,000 | 1,468,000 | 1,393,000 | |
Unrealized gains (losses) on investments, net, pre-tax | 10,198,000 | -34,549,000 | 476,000 | |
Equity securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Unrealized holding gains (losses) on securities arising during the period, pre-tax | 1,440,000 | 13,971,000 | 6,451,000 | |
Realized (gains) losses on securities sold, pre-tax | -1,303,000 | -677,000 | -13,853,000 | [1] |
Impairment losses recognized in net earnings, pre-tax | 0 | 0 | 0 | |
Unrealized gains (losses) on investments, net, pre-tax | 137,000 | 13,294,000 | -7,402,000 | |
Short-term investments | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Unrealized holding gains (losses) on securities arising during the period, pre-tax | 4,000 | 1,000 | 0 | |
Realized (gains) losses on securities sold, pre-tax | -5,000 | 0 | 0 | [1] |
Impairment losses recognized in net earnings, pre-tax | 0 | 0 | 0 | |
Unrealized gains (losses) on investments, net, pre-tax | ($1,000) | $1,000 | $0 | |
[1] | The intrinsic value for the stock options is calculated based on the difference between the exercise price of the underlying awards and our closing stock price as of the reporting date. |
Investments_Credit_losses_roll
Investments - Credit losses rollforward (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Credit losses on fixed maturity securities | ||
Balance at beginning of year | $956 | $487 |
Additions for previously impaired securities | 19 | 27 |
Additions for newly impaired securities | 15 | 659 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Additions, Previously All Non-credit | 0 | 26 |
Securities sold and paydowns | -139 | -206 |
Securities that no longer have a non-credit component | 0 | -37 |
Balance at end of year | $852 | $956 |
Investments_Investments_by_con
Investments - Investments by contractual maturity (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
One year or less, fair value | $100,156 | |
One year or less, amortized cost | 99,523 | |
After one year through five years, fair value | 584,560 | |
After one year through five years, amortized cost | 575,609 | |
After five years through ten years, fair value | 267,565 | |
After five years through ten years, amortized cost | 263,488 | |
After ten years, fair value | 15,588 | |
After ten years, amortized cost basis | 14,966 | |
Mortgage-backed, asset-backed and collateralized mortgage obligations, fair value | 463,973 | |
Mortgage-backed, asset-backed and collateralized mortgage obligations, amortized cost | 458,831 | |
Fixed maturities | 1,431,843 | 1,354,305 |
Amortized cost | 1,412,417 | |
Securities with Unrealized Gains | ||
Schedule of Available-for-sale Securities [Line Items] | ||
One year or less, fair value | 89,487 | |
After one year through five years, fair value | 392,906 | |
After five years through ten years, fair value | 165,735 | |
After ten years, fair value | 11,741 | |
Mortgage-backed, asset-backed and collateralized mortgage obligations, fair value | 297,407 | |
Fixed maturities | 957,275 | |
Securities with Unrealized Losses | ||
Schedule of Available-for-sale Securities [Line Items] | ||
One year or less, fair value | 9,567 | |
After one year through five years, fair value | 190,302 | |
After five years through ten years, fair value | 100,053 | |
After ten years, fair value | 1,219 | |
Mortgage-backed, asset-backed and collateralized mortgage obligations, fair value | 163,266 | |
Fixed maturities | 464,407 | |
Securities with No Unrealized Gains or Losses | ||
Schedule of Available-for-sale Securities [Line Items] | ||
One year or less, fair value | 1,102 | |
After one year through five years, fair value | 1,353 | |
After five years through ten years, fair value | 1,777 | |
After ten years, fair value | 2,628 | |
Mortgage-backed, asset-backed and collateralized mortgage obligations, fair value | 3,301 | |
Fixed maturities | $10,160 |
InvestmentsInvestment_Income_D
Investments-Investment Income (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Investments, Debt and Equity Securities [Abstract] | |||
Interest income on fixed maturities, cash and cash equivalents | $35,596 | $36,113 | $38,234 |
Dividends on equity securities | 2,245 | 1,711 | 1,415 |
Gross investment income | 37,841 | 37,825 | 39,649 |
Investment expenses | -2,211 | -2,279 | -2,077 |
Net investment income | $35,629 | $35,546 | $37,571 |
LongTerm_Debt_Details
Long-Term Debt (Details) (USD $) | 12 Months Ended | 1 Months Ended | 0 Months Ended | 12 Months Ended | 1 Months Ended | 9 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 31, 2014 | Oct. 17, 2013 | Dec. 31, 2004 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2011 | Feb. 29, 2004 | |
Debt Instrument [Line Items] | ||||||||||
Long-term debt | $291,044,000 | $272,632,000 | ||||||||
Debt issuance costs written off | 400,000 | |||||||||
Interest payments on debt | 13,800,000 | 13,800,000 | 12,500,000 | |||||||
Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit facility capacity | 50,000,000 | |||||||||
Term of revolving credit facility | 3 years | |||||||||
Senior Notes Due 2014 | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal amount | 200,000,000 | |||||||||
Effective yield | 5.55% | |||||||||
Coupon rate | 5.50% | |||||||||
Capitalized debt issuance costs | 2,100,000 | |||||||||
Amount of repurchased debt | 5,000,000 | |||||||||
Outstanding principal | 195,000,000 | |||||||||
Make whole price of redeemed debt | 106.73% | |||||||||
Repurchase amount | 208,100,000 | |||||||||
Interest payable | 1,800,000 | |||||||||
Senior Notes Due 2022 | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal amount | 275,000,000 | |||||||||
Coupon rate | 5.00% | |||||||||
Capitalized debt issuance costs | $2,200,000 | |||||||||
Fair value spread to U.S. Treasury Note rate | 2.60% | |||||||||
Term of note used | 10 years | |||||||||
Treasury note rate used for debt fair value calculation | 2.17% |
Income_Taxesreconciliation_to_
Income Taxes-reconciliation to GAAP effective tax rate (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Income tax payments | $20,900,000 | $7,600,000 | $9,000,000 |
Federal statutory income tax rate (percent) | 35.00% | ||
Income tax reconciliation | |||
Earnings before income taxes | 83,138,000 | 45,078,000 | 22,088,000 |
Income taxes at statutory rates | 29,098,000 | 15,777,000 | 7,731,000 |
Dividends-received deduction | -469,000 | -357,000 | -296,000 |
Tax-exempt interest | -2,752,000 | -2,743,000 | -3,294,000 |
Adjustment to valuation allowance | 1,000 | -48,000 | -6,402,000 |
Other | 58,000 | -184,000 | 30,000 |
Provision for income taxes | $25,936,000 | $12,445,000 | ($2,231,000) |
GAAP effective tax rate (percent) | 31.20% | 27.60% | -10.10% |
Income_TaxesProvision_for_inco
Income Taxes-Provision for income taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Loss Carryforwards [Line Items] | |||
Current | $25,342 | $10,541 | $3,605 |
Deferred | 594 | 1,904 | -5,836 |
Provision for income taxes | $25,936 | $12,445 | ($2,231) |
Income_TaxesDeferred_Tax_Asset
Income Taxes-Deferred Tax Assets and Liabilities (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ||
Portion of OTTI attributable to investments sold during period | 77.00% | |
Deferred tax assets: | ||
Discount on loss reserves | $6,001 | $7,045 |
Unearned premium reserve | 40,918 | 39,401 |
Bad debts | 5,428 | 5,559 |
Accrued bonuses | 2,791 | 2,442 |
Deferred compensation | 5,372 | 4,842 |
Long-term incentive compensation | 1,193 | 2,040 |
Other | 5,157 | 5,473 |
Gross deferred tax assets | 66,860 | 66,803 |
Valuation allowance for deferred tax assets | -166 | -165 |
Deferred tax assets, net of valuation allowance | 66,694 | 66,638 |
Deferred tax liabilities: | ||
Deferred policy acquisition costs | -31,650 | -30,890 |
Investment securities – unrealized gains | -12,590 | -8,973 |
Other | -1,951 | -2,111 |
Net deferred tax assets | -46,191 | -41,975 |
Net deferred tax assets | 20,503 | 24,663 |
Current income taxes | -481 | 3,985 |
Current and deferred income taxes | $20,022 | $28,648 |
Computation_Of_Earnings_Per_Sh2
Computation Of Earnings Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Computation of net earnings per share | |||||||||||||||
Net earnings | $21,352 | $14,855 | $10,667 | $10,327 | $9,368 | $7,195 | $7,408 | $8,662 | $7,917 | $5,154 | $6,954 | $4,294 | $57,201 | $32,633 | $24,319 |
Average basic shares outstanding (shares) | 11,440 | 11,451 | 11,660 | ||||||||||||
Basic earnings per share (usd per share) | $1.87 | $1.30 | $0.93 | $0.90 | $0.82 | $0.63 | $0.65 | $0.75 | $0.68 | $0.44 | $0.59 | $0.37 | $5 | $2.85 | $2.09 |
Average diluted shares outstanding (shares) | 11,562 | 11,657 | 11,941 | ||||||||||||
Diluted earnings per share (usd per share) | $1.85 | $1.29 | $0.92 | $0.89 | $0.81 | $0.62 | $0.64 | $0.74 | $0.67 | $0.43 | $0.58 | $0.35 | $4.95 | $2.80 | $2.04 |
Restricted stock | |||||||||||||||
Computation of net earnings per share | |||||||||||||||
Dilutive shares | 37 | 46 | 28 | ||||||||||||
Stock options | |||||||||||||||
Computation of net earnings per share | |||||||||||||||
Dilutive shares | 1 | 29 | 97 | ||||||||||||
Performance Shares | |||||||||||||||
Computation of net earnings per share | |||||||||||||||
Dilutive shares | 84 | 130 | 156 |
ShareBased_Compensation_Plans_
Share-Based Compensation - Plans (Details) (USD $) | 12 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 21-May-13 |
Executive Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares executives surrendered to the company | 3,361 | |||
Stock options exercised | 7,500 | |||
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cash received from option exercises | 0.2 | $1.30 | $0.60 | |
Tax benefit realized from exercise of stock options | 0.1 | 0.5 | 0.6 | |
Total intrinsic value of options exercised | 0.5 | $2.40 | $3.90 | |
2013 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares reserved for future issuance (shares) | 750,000 | |||
SOP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award contractual life | 10 years | |||
SOP | Common stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share restriction period, from date of grant | 2 years | |||
Share restriction period, from exercise date | 1 year | |||
SOP | Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options exercised | 14,000 |
ShareBased_Compensation_Share_
Share-Based Compensation - Share Awards (Details) | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2013 | Aug. 02, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards granted (shares) | 46,328,000 | 54,600 | ||
Non-employee Directors' Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards granted (shares) | 0 | 5,502 | 0 | |
Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards granted (shares) | 49,098 | |||
2013 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards granted (shares) | 54,344 | 6,517 | ||
Prior Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards granted (shares) | 55,245 | 17,934 | ||
Officers | Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards granted (shares) | 0 | |||
Officers | 2013 Plan | Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards granted (shares) | 46,328 | 0 | ||
Officers | 2013 Plan | Non-employee Directors' Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards granted (shares) | 8,016 | 6,517 | ||
Officers | 2013 Plan | Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards granted (shares) | 0 | 0 | ||
Officers | Prior Plan | Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards granted (shares) | 0 | 0 | ||
Officers | Prior Plan | Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards granted (shares) | 55,245 | 17,934 |
ShareBased_Compensation_Compen
Share-Based Compensation - Compensation Cost (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expense Recognized in Earnings | $2,634 | $4,009 | $3,249 |
Tax Benefit | 903 | 1,384 | 1,118 |
Restricted Stock Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expense Recognized in Earnings | 1,126 | 1,190 | 1,190 |
Tax Benefit | 394 | 417 | 417 |
Directors Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expense Recognized in Earnings | 520 | 385 | 300 |
Tax Benefit | 182 | 135 | 105 |
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expense Recognized in Earnings | 55 | 54 | 55 |
Tax Benefit | 0 | 0 | 0 |
PSP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expense Recognized in Earnings | 933 | 2,380 | 1,704 |
Tax Benefit | $327 | $833 | $596 |
ShareBased_Compensation_ShareB
Share-Based Compensation Share-Based Compensation - Restricted Stock Activity (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2012 | Aug. 02, 2011 | Aug. 05, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards granted (shares) | 46,328,000 | 54,600 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Non-vested as of January 1, 2014 (shares) | 72,234,000 | |||
Granted (shares) | 46,328,000 | 54,600 | ||
Vested (shares) | -72,234,000 | |||
Non-vested as of December 31, 2014 (shares) | 46,328,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Non-vested as of January 1, 2014 (in dollars per share) | $49.44 | |||
Granted (in dollars per share) | $67.04 | |||
Vested (in dollars per share) | $49.44 | |||
Non-vested as of December 31, 2014 (in dollars per share) | $67.04 | |||
Officers | Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards granted (shares) | 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Granted (shares) | 0 | |||
Officers | Restricted Stock Plan | Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards granted (shares) | 72,234 | 46,328 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Granted (shares) | 72,234 | 46,328 |
ShareBased_Compensation_Fair_V
Share-Based Compensation - Fair Value Assumptions (Details) (2004 Grants, Stock options, USD $) | 12 Months Ended |
Dec. 31, 2014 | |
2004 Grants | Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted-average grant date fair value (usd per share) | $13.87 |
Dividend yield (percent) | 0.70% |
Expected volatility (percent) | 33.00% |
Risk-free interest rate (percent) | 4.30% |
Expected life (in years) | 7 years 6 months |
Weighted-average grant exercise price (usd per share) | $33.56 |
Outstanding | 0 |
ShareBased_Compensation_Stock_
Share-Based Compensation - Stock Option Activity (Details) (SOP, Stock options, USD $) | 12 Months Ended | |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | |
SOP | Stock options | ||
Stock option activity | ||
Outstanding (in shares) | 16,000 | |
Exercised (in shares) | -14,000 | |
Forfeited (in shares) | -2,000 | |
Outstanding (in shares) | 0 | |
Vested (in shares) | 0 | |
Exercisable (in shares) | 0 | |
Stock option activity, weighted-average exercise price | ||
Outstanding, weighted-average exercise price (in dollars per share) | $33.58 | |
Exercised, weighted-average exercise price (in dollars per share) | $33.58 | |
Forfeited, weighted-average exercise price (in dollars per share) | $33.58 | |
Outstanding, weighted-average exercise price (in dollars per share) | $0 | |
Vested, weighted-average exercise price (in dollars per share) | $0 | |
Exercisable, weighted-average exercise price (in dollars per share) | $0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||
Outstanding, weighted-average remaining term | 0 years | |
Vested, weighted-average remaining term | 0 years | |
Exercisable, weighted-average remaining term | 0 years | |
Outstanding, aggregate intrinsic value | $0 | [1] |
Vested, aggregate intrinsic value | 0 | [1] |
Exercisable, aggregate intrinsic value | $0 | [1] |
[1] | The intrinsic value for the stock options is calculated based on the difference between the exercise price of the underlying awards and our closing stock price as of the reporting date. |
ShareBased_Compensation_Employ
Share-Based Compensation - Employee Stock Purchase Plan (Details) (ESPP, USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares reserved for issuance | 1,000,000 |
Outstanding (in shares) | 65,341 |
Common Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Discount from market price on purchase date | 15.00% |
Maximum percentage of employee base salary | 25.00% |
Maximum annual purchase amount per employee | $25,000 |
Benefit_PlansNarrative_Details
Benefit Plans-Narrative (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Maximum employee annual contribution | $17,500 | ||
Maximum employee annual contribution, percent | 25.00% | ||
Minimum age eligible for catch-up contributions | 50 years | ||
Maximum employee annual catch-up contribution | 5,500 | ||
Maximum annual contribution per employee, amount | 13,000 | ||
Employer contribution | 5,100,000 | 4,900,000 | 4,600,000 |
Unrecognized actuarial gain, gross | -500,000 | ||
Unrecognized actuarial gain, net | 300,000 | ||
Plan amendment | -660,000 | 0 | |
Net prior service cost, before tax | 300,000 | ||
Net prior service cost, after tax | 200,000 | ||
Amortization of net gains (losses) | 100,000 | ||
Amortization of prior service cost | 100,000 | ||
Funded status at end of year | -4,313,000 | -4,473,000 | |
Estimated future employer contributions in next fiscal year | 300,000 | ||
Benefit obligation | 4,313,000 | 4,473,000 | 5,004,000 |
Deferred compensation, excluding share-based payments and retirement benefits [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Recorded liability | 15,300,000 | 13,800,000 | 12,400,000 |
Interest expense | 700,000 | 600,000 | 600,000 |
Supplemental Employee Retirement Plan, Defined Benefit [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Employer contribution | 100,000 | ||
Statutory annual compensaiton limit | 260,000 | ||
Cost recognized | 100,000 | 100,000 | |
Rabbi Trust [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Investments in the rabbi trust | $1,600,000 | ||
Threshold One [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Maximum employer annual contribution per employee, (percent) | 4.00% | ||
Employer match after initial threshold, percent | 100.00% | ||
Threshold Two [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Maximum employer annual contribution per employee, (percent) | 2.00% | ||
Employer match after initial threshold, percent | 50.00% |
Benefit_PlansNet_Benefit_Oblig
Benefit Plans-Net Benefit Obligation at End of Year (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Net benefit obligation at end of year | $4,473 | $5,004 | |
Service cost | 198 | 331 | 119 |
Interest cost | 150 | 159 | 136 |
Participant contributions | 28 | 27 | |
Plan amendment | -660 | 0 | |
Assumption change | 534 | -342 | |
Actuarial (gain) loss | -120 | -364 | |
Gross benefits paid | -291 | -342 | |
Net benefit obligation at end of year | $4,313 | $4,473 | $5,004 |
Benefit_PlansWeighted_Average_
Benefit Plans-Weighted Average Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 3.50% | 4.10% | 3.30% |
Health care cost trend rate assumed for next fiscal year | 8.00% | ||
Ultimate health care cost trend rate | 5.00% | ||
Year that rate reaches ultimate trend rate | 2036 |
Benefit_PlansNet_Periodic_Bene
Benefit Plans-Net Periodic Benefit Cost (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||
Service cost | $198 | $331 | $119 |
Interest cost | 150 | 159 | 136 |
Amortization of prior service cost | 71 | 199 | 0 |
Amortization of net cumulative (gain)/loss | -81 | 0 | -23 |
Net periodic post-retirement benefit cost | $339 | $690 | $232 |
Benefit_PlansEffect_of_OnePerc
Benefit Plans-Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates [Abstract] | |||
Post-retirement benefit obligations 1% increase | $396 | $349 | $389 |
Post-retirement benefit obligations 1% decrease | -348 | -318 | -363 |
Service and interest cost components 1% increase | 40 | 53 | 56 |
Service and interest cost components 1% decrease | ($34) | ($47) | ($49) |
Benefit_PlansFair_Value_of_Pla
Benefit Plans-Fair Value of Plan Assets (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | $0 | $0 |
Employer contributions | 263 | 315 |
Participant contributions | 28 | 27 |
Gross benefits paid | -291 | -342 |
Fair value of plan assets at end of year | $0 | $0 |
Benefit_Plans_Amount_Recognize
Benefit Plans- Amount Recognized in Balance Sheet (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Compensation and Retirement Disclosure [Abstract] | |||
Fair value of plan assets | $0 | $0 | $0 |
Benefit obligation | 4,313 | 4,473 | 5,004 |
Funded status at end of year | -4,313 | -4,473 | |
Contributions made after the measurement date | 0 | 0 | |
Unrecognized actuarial net (gain) loss | 0 | 0 | |
Unrecognized prior service cost | $0 | $0 |
Benefit_Plans_Expected_Future_
Benefit Plans- Expected Future Benefit Payments (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |||
Next twelve months | $259,000 | $292,000 | $315,000 |
Year two | 294,000 | 304,000 | 341,000 |
Year three | 304,000 | 346,000 | 356,000 |
Year four | 314,000 | 361,000 | 390,000 |
Year five | 337,000 | 398,000 | 395,000 |
Years five through ten | 1,840,000 | 2,459,000 | 2,474,000 |
Total expected future benefit payments | 3,348,000 | 4,160,000 | 4,270,000 |
Estimated future employer contributions in next fiscal year | $300,000 |
Quarterly_Operating_Results_De
Quarterly Operating Results (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||
Total revenues | $365,982 | $366,160 | $367,954 | $361,613 | $362,330 | $359,145 | $365,656 | $356,102 | $367,510 | $338,879 | $331,081 | $312,116 | $1,461,709 | $1,443,233 | $1,349,585 |
Net earnings | 21,352 | 14,855 | 10,667 | 10,327 | 9,368 | 7,195 | 7,408 | 8,662 | 7,917 | 5,154 | 6,954 | 4,294 | 57,201 | 32,633 | 24,319 |
Basic earnings per share (usd per share) | $1.87 | $1.30 | $0.93 | $0.90 | $0.82 | $0.63 | $0.65 | $0.75 | $0.68 | $0.44 | $0.59 | $0.37 | $5 | $2.85 | $2.09 |
Diluted earnings per share (usd per share) | $1.85 | $1.29 | $0.92 | $0.89 | $0.81 | $0.62 | $0.64 | $0.74 | $0.67 | $0.43 | $0.58 | $0.35 | $4.95 | $2.80 | $2.04 |
Realized gains (losses) on investments | $781 | $1,013 | $1,846 | $645 | $1,955 | ($546) | $794 | $3,824 | $21,382 | $268 | $2,166 | $238 | $4,284 | $6,026 | $24,055 |
Quarterly_Operating_Results_Un1
Quarterly Operating Results (Unaudited) - Prior Period Adjustments (Details) (USD $) | 12 Months Ended | 3 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 |
Installment and other fee income | $95,242 | $98,428 | $99,952 | ||||||||
Restatement Adjustment [Member] | |||||||||||
Installment and other fee income | $98,428 | $99,952 | $23,994 | $24,183 | $24,952 | $25,300 | $24,995 | $25,145 | $25,098 | $24,714 |
Insurance_Reserves_Details
Insurance Reserves (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Balance at Beginning of Period [Abstract] | |||
Unpaid losses on known claims | $221,447 | $205,589 | $181,972 |
IBNR losses | 262,660 | 218,552 | 177,645 |
LAE | 162,469 | 148,753 | 135,787 |
Total unpaid losses and LAE | 646,577 | 572,894 | 495,403 |
Reinsurance recoverables | -14,431 | -13,678 | -14,640 |
Unpaid losses and LAE, net of reinsurance recoverables | 632,146 | 559,215 | 480,764 |
Current Activity [Abstract] | |||
Loss and LAE incurred, current accident year | 1,019,033 | 1,014,299 | 926,033 |
Loss and LAE incurred, prior accident years | -17,405 | 2,948 | 16,219 |
Total loss and LAE incurred | 1,001,628 | 1,017,247 | 942,253 |
Loss and LAE payments, current accident year | -602,732 | -593,850 | -553,549 |
Loss and LAE payments, prior accident years | -377,235 | -350,466 | -310,252 |
Total loss and LAE payments | -979,967 | -944,316 | -863,801 |
Balance at End of Period [Abstract] | |||
Unpaid losses and LAE, net of reinsurance recoverables | 653,808 | 632,146 | 559,215 |
Add back reinsurance recoverables | 14,370 | 14,431 | 13,678 |
Total unpaid losses and LAE | 668,177 | 646,577 | 572,894 |
Unpaid losses on known claims | 235,037 | 221,447 | 205,589 |
IBNR losses | 277,482 | 262,660 | 218,552 |
LAE | 155,658 | 162,469 | 148,753 |
Total unpaid losses and LAE | $668,177 | $646,577 | $572,894 |
ReinsuranceTable_Details
Reinsurance-Table (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reinsurance Disclosures [Abstract] | |||
Direct written premium, gross amount | $1,360,807 | $1,339,803 | $1,254,386 |
Direct written premium, amount assumed from other companies | 63 | 16 | 543 |
Direct written premium, amount ceded to other companies | -13,266 | -9,927 | -7,731 |
Direct written premium, net amount | 1,347,604 | 1,329,892 | 1,247,198 |
Direct written premium, percentage of amount assumed to net | 0.00% | 0.00% | 0.00% |
Direct earned premium, gross amount | 1,337,557 | 1,311,942 | 1,190,773 |
Direct earned premium, amount assumed from other companies | 57 | 15 | 542 |
Direct earned premium, amount ceded to other companies | -11,679 | -9,432 | -7,225 |
Direct earned premium, net amount | $1,325,935 | $1,302,525 | $1,184,090 |
Direct earned premium, percentage of amount assumed to net | 0.00% | 0.00% | 0.00% |
Reinsurance_Narrative_Details
Reinsurance- Narrative (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Direct written premium, amount assumed from other companies | $63,000 | $16,000 | $543,000 |
Liability for unpaid losses and LAE | 7,500,000 | 7,800,000 | 8,000,000 |
Maximum third party recovery | 25,000,000 | ||
Minimum loss threshold per event | 5,000,000 | ||
Additional coverage, third party recovery, percentage | 100.00% | 100.00% | 100.00% |
Additional coverage, loss coverage base per event | 55,000,000 | 45,000,000 | |
Additional coverage, minimum loss threshold per event | 5,000,000 | 5,000,000 | |
Reduction in losses due to amount ceded to other companies | -3,500,000 | -1,600,000 | -2,500,000 |
Extra-Contractual Loss Reinsurance [Member] | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Maximum third party recovery | 10,000,000 | ||
Minimum loss threshold per event | 5,000,000 | ||
Personal auto insurance [Member] | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Maximum third party recovery | 700,000 | ||
Minimum loss threshold per event | 300,000 | ||
GAI [Member] | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Liability for unpaid losses and LAE | 3,500,000 | 4,100,000 | 5,400,000 |
Amount assumed from other companies | 0 | 0 | 500,000 |
Maximum [Member] | Involuntary Pools and Associations [Member] | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Amount assumed from other companies | $100,000 | $100,000 | $100,000 |
Statutory_Information_Details
Statutory Information (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Insurance [Abstract] | |||
Statutory net earnings | $67,360,000 | $44,906,000 | $31,141,000 |
Statutory policyholders' surplus | 682,068,000 | 673,973,000 | |
Statutory net earnings from subsidiaries sold | 100,000 | ||
Statutory capital and surplus required | 144,900,000 | ||
Amount available for dividend distribution without prior approval from regulatory agency | $68,100,000 |
Commitments_And_Contingencies_1
Commitments And Contingencies Details (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2013 | $9,200,000 | ||
2014 | 4,921,000 | ||
2015 | 3,361,000 | ||
2016 | 2,927,000 | ||
2017 | 1,153,000 | ||
Thereafter | 375,000 | ||
Total | 21,937,000 | ||
Operating leases, lease expiration period | 7 years | ||
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2013 | 481,000 | ||
2014 | 425,000 | ||
2015 | 318,000 | ||
2016 | 236,000 | ||
2017 | 222,000 | ||
Thereafter | 0 | ||
Total | 1,682,000 | ||
Lease expense | 10,447,000 | 12,015,000 | 12,389,000 |
Sublease income | 0 | -163,000 | -420,000 |
Total | 10,447,000 | 11,851,000 | 11,969,000 |
Guarantor Obligations, Maximum Exposure, Undiscounted | 6,400,000 | ||
Birmingham, Alabama [Member] | |||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Total | 4,400,000 | ||
Los Angeles, California [Member] | |||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Total | 7,300,000 | ||
Automobiles [Member] | |||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Total | $6,600,000 |
Additional_Information_Details
Additional Information (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning balance | $15,884,000 | $16,124,000 | $13,497,000 |
Provision for losses | 19,541,000 | 20,913,000 | 24,884,000 |
Uncollectible amounts written off | -19,916,000 | -21,154,000 | -22,257,000 |
Ending balance | 15,510,000 | 15,884,000 | 16,124,000 |
Supplemental Cash Flow Elements [Abstract] | |||
Negative cash book balances | $51,200,000 | $50,500,000 | $45,400,000 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Before Tax [Abstract] | |||
Accumulated other comprehensive income, beginning of period | $25,576 | $45,924 | $54,336 |
Effect on other comprehensive income | 10,569 | -20,348 | -8,412 |
Accumulated other comprehensive income, end of period | 36,145 | 25,576 | 45,924 |
Income Tax [Abstract] | |||
Accumulated other comprehensive income, beginning of period | -8,952 | -16,073 | -19,018 |
Effect on other comprehensive income | -3,699 | 7,122 | 2,944 |
Accumulated other comprehensive income, end of period | -12,651 | -8,952 | -16,073 |
Net [Abstract] | |||
Accumulated other comprehensive income, beginning of period | 16,624 | 29,851 | 35,319 |
Other Comprehensive Income (Loss), Net of Tax | 6,870 | -13,226 | -5,468 |
Accumulated other comprehensive income, end of period | 23,494 | 16,624 | 29,851 |
Accumulated Change Postretirement Benefite Liability [Member] | |||
Before Tax [Abstract] | |||
Accumulated other comprehensive income, beginning of period | -62 | -967 | 519 |
Effect on other comprehensive income | 235 | 906 | -1,487 |
Accumulated other comprehensive income, end of period | 174 | -62 | -967 |
Income Tax [Abstract] | |||
Accumulated other comprehensive income, beginning of period | 22 | 339 | -182 |
Effect on other comprehensive income | -82 | -317 | 520 |
Accumulated other comprehensive income, end of period | -61 | 22 | 339 |
Net [Abstract] | |||
Accumulated other comprehensive income, beginning of period | -40 | -629 | 337 |
Other Comprehensive Income (Loss), Net of Tax | 153 | 589 | -966 |
Accumulated other comprehensive income, end of period | 113 | -40 | -629 |
Accumulated Unrealized Gains on Investments, net [Member] | |||
Before Tax [Abstract] | |||
Accumulated other comprehensive income, beginning of period | 25,638 | 46,892 | 53,817 |
Effect on other comprehensive income | 10,334 | -21,254 | -6,926 |
Other comprehensive income before reclassification | 14,618 | -15,227 | 17,129 |
Accumulated other comprehensive income, end of period | 35,972 | 25,638 | 46,892 |
Income Tax [Abstract] | |||
Accumulated other comprehensive income, beginning of period | -8,973 | -16,412 | -18,836 |
Other comprehensive income before reclassification | -5,116 | 5,330 | -5,995 |
Effect on other comprehensive income | -3,617 | 7,439 | 2,424 |
Accumulated other comprehensive income, end of period | -12,590 | -8,973 | -16,412 |
Net [Abstract] | |||
Accumulated other comprehensive income, beginning of period | 16,665 | 30,480 | 34,981 |
Other comprehensive income before reclassification | 9,502 | -9,898 | 11,134 |
Other Comprehensive Income (Loss), Net of Tax | 6,717 | -13,815 | -4,502 |
Accumulated other comprehensive income, end of period | 23,382 | 16,665 | 30,480 |
Reclassification Adjustment for Other-than-Temporary Impairment [Member] | |||
Before Tax [Abstract] | |||
Reclassicification adjustment | 160 | 1,468 | 1,393 |
Income Tax [Abstract] | |||
Reclassicification adjustment | -56 | -514 | -487 |
Net [Abstract] | |||
Reclassicification adjustment | 104 | 954 | 905 |
Accumulated Unrealized Gains on Investments, Net [Member] | |||
Before Tax [Abstract] | |||
Effect on other comprehensive income | 10,334 | -21,254 | -6,926 |
Reclassicification adjustment | -4,444 | -7,495 | -25,447 |
Income Tax [Abstract] | |||
Reclassicification adjustment | 1,556 | 2,623 | 8,907 |
Effect on other comprehensive income | -3,617 | 7,439 | 2,424 |
Net [Abstract] | |||
Reclassicification adjustment | -2,889 | -4,872 | -16,541 |
Other Comprehensive Income (Loss), Net of Tax | $6,717 | ($13,815) | ($4,502) |
Subsequent_Events_Details
Subsequent Events (Details) (Subsequent Event [Member], Building [Member], USD $) | Feb. 05, 2015 |
In Millions, unless otherwise specified | sqft |
Subsequent Event [Member] | Building [Member] | |
Subsequent Event [Line Items] | |
Purchase agreement | $20 |
Area of building (in sq ft) | 120,493 |