Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 29, 2016 | |
Document Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | INFINITY PROPERTY & CASUALTY CORP | |
Entity Central Index Key | 1,195,933 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 11,056,531 |
Consolidated Statements Of Earn
Consolidated Statements Of Earnings - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues: | ||
Earned premium | $ 336,184 | $ 332,106 |
Percent change, Earned premium | 1.20% | |
Installment and other fee income | $ 25,518 | 24,561 |
Percent change, Installment and other fee income | 3.90% | |
Net investment income | $ 8,063 | 8,736 |
Percent change, Net investment Income | (7.70%) | |
Net realized (losses) gains on investments | $ 139 | 1,169 |
Percent change, Net realized gains on investments | (88.10%) | |
Other income | $ 258 | 400 |
Percent change, Other income | (35.60%) | |
Total revenues | $ 370,162 | 366,973 |
Percent change, Total revenues | 0.90% | |
Costs and Expenses: | ||
Losses and loss adjustment expenses | $ 265,284 | 255,643 |
Percent change, Losses and loss adjustment expenses | 3.80% | |
Commissions and other underwriting expenses | $ 88,607 | 88,828 |
Percent change, Commissions and other underwriting expenses | (0.20%) | |
Interest expense | $ 3,509 | 3,507 |
Percent change, Interest expense | 0.00% | |
Corporate general and administrative expenses | $ 1,704 | 1,855 |
Percent change, Corporate general and administrative expenses | (8.10%) | |
Other expenses | $ 282 | 903 |
Percent change, Other expenses | (68.70%) | |
Total costs and expenses | $ 359,386 | 350,737 |
Percent change, Total costs and expenses | 2.50% | |
Earnings before income taxes | $ 10,776 | 16,236 |
Percent change, Earnings before income taxes | (33.60%) | |
Provision for income taxes | $ 3,068 | 5,082 |
Percent change, Provision for income taxes | (39.60%) | |
Net Earnings | $ 7,708 | $ 11,154 |
Percent change, Net Earnings | (30.90%) | |
Net Earnings per Common Share: | ||
Basic (usd per share) | $ 0.70 | $ 0.98 |
Percent change, Basic | (28.60%) | |
Diluted (usd per share) | $ 0.69 | $ 0.97 |
Percent change, Diluted | (28.90%) | |
Average Number of Common Shares: | ||
Basic (shares) | 11,036 | 11,427 |
Percent change, Basic | (3.40%) | |
Diluted (shares) | 11,134 | 11,551 |
Percent change, Diluted | (3.60%) | |
Cash Dividends per Common Share (usd per share) | $ 0.52 | $ 0.43 |
Percent change, Cash Dividends per Common Share | 20.90% | |
Net realized gains on sales | $ 257 | $ 1,551 |
Percent change, Net realized gains on sales | (83.40%) | |
Total other-than-temporary impairment (OTTI) losses | $ (118) | (381) |
Percent change, Total other-than-temporary impairment (OTTI) losses | (69.20%) | |
Total net realized gains on investments | $ 139 | $ 1,169 |
Percent change,Total net realized gains on investments | (88.10%) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 7,708 | $ 11,154 |
Other comprehensive income before tax: | ||
Net change in post-retirement benefit liability | (11) | 16 |
Unrealized gains on investments: | ||
Unrealized holding gains arising during the period | 15,459 | 8,416 |
Less: Reclassification adjustments for gains included in net earnings | (139) | (1,169) |
Unrealized gains on investments, net | 15,320 | 7,247 |
Other comprehensive income, before tax | 15,309 | 7,263 |
Income tax expense related to components of other comprehensive income | (5,358) | (2,542) |
Other comprehensive income, net of tax | 9,951 | 4,721 |
Comprehensive income | $ 17,659 | $ 15,875 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Investments: | ||
Fixed maturities – at fair value (amortized cost $1,392,299 and $1,381,510) | $ 1,407,446 | $ 1,381,467 |
Equity securities – at fair value (cost $78,810 and $78,815) | 90,055 | 89,935 |
Short-term investments - at fair value (amortized cost $0 and $4,656) | 0 | 4,651 |
Total investments | 1,497,501 | 1,476,053 |
Cash and cash equivalents | 43,623 | 62,483 |
Accrued investment income | 11,421 | 12,245 |
Agents’ balances and premium receivable, net of allowances for doubtful accounts of $14,201 and $15,385 | 542,603 | 511,543 |
Property and equipment, net of accumulated depreciation of $75,619 and $72,892 | 91,567 | 89,707 |
Prepaid reinsurance premium | 5,708 | 5,385 |
Recoverables from reinsurers (includes $739 and $362 on paid losses and LAE) | 18,463 | 15,056 |
Deferred policy acquisition costs | 97,213 | 93,157 |
Current and deferred income taxes | 25,500 | 33,926 |
Receivable for securities sold | 2,142 | 0 |
Other assets | 16,500 | 10,306 |
Goodwill | 75,275 | 75,275 |
Total assets | 2,427,516 | 2,385,135 |
Liabilities: | ||
Unpaid losses and loss adjustment expenses | 673,475 | 669,965 |
Unearned premium | 652,499 | 616,649 |
Long-term debt (fair value $288,613 and $281,581) | 273,434 | 273,383 |
Commissions payable | 15,524 | 17,406 |
Payable for securities purchased | 10,479 | 7,264 |
Other liabilities | 110,609 | 112,873 |
Total liabilities | $ 1,736,020 | $ 1,697,540 |
Commitments and contingencies (See Note 9) | ||
Shareholders’ equity: | ||
Common stock, no par value (50,000,000 shares authorized; 21,775,372 and 21,774,520 shares issued) | $ 21,799 | $ 21,794 |
Additional paid-in capital | 376,400 | 376,025 |
Retained earnings | 759,567 | 757,604 |
Accumulated other comprehensive income, net of tax | 17,762 | 7,811 |
Treasury stock, at cost (10,729,904 and 10,623,138 shares) | (484,032) | (475,638) |
Total shareholders’ equity | 691,496 | 687,595 |
Total liabilities and shareholders’ equity | $ 2,427,516 | $ 2,385,135 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Fixed Maturities, Amortized Cost | $ 1,392,299 | $ 1,381,510 |
Equity securities, cost | 78,810 | 78,815 |
Short term investments, amortized cost | 0 | 4,656 |
Agents' balances and premium receivable, allowance for doubtful accounts | 14,201 | 15,385 |
Property and equipment, accumulated depreciation | 75,619 | 72,892 |
Recoverable from reinsurers, paid losses and loss adjustment expenses | 739 | 362 |
Long-term debt, fair value | $ 288,613 | $ 281,581 |
Common stock, par value (usd per share) | $ 0 | $ 0 |
Common stock, shares authorized (shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (shares) | 21,775,372 | 21,774,520 |
Treasury stock, shares (shares) | 10,729,904 | 10,623,138 |
Consolidated Statements Of Chan
Consolidated Statements Of Changes In Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income, Net of Tax | Treasury Stock |
Beginning Balance at Dec. 31, 2014 | $ 697,659 | $ 21,745 | $ 372,368 | $ 725,651 | $ 23,494 | $ (445,599) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 11,154 | 11,154 | ||||
Net change in post-retirement benefit liability | 11 | 11 | ||||
Change in unrealized gain on investments | 4,497 | 4,497 | ||||
Change in non-credit component of impairment losses on fixed maturities | 213 | 213 | ||||
Comprehensive income | 15,875 | |||||
Dividends paid to common shareholders | (4,932) | (4,932) | ||||
Shares issued and share-based compensation expense, including tax benefit | 725 | 11 | 714 | |||
Acquisition of treasury stock | (1,999) | (1,999) | ||||
Ending Balance at Mar. 31, 2015 | 707,328 | 21,756 | 373,082 | 731,873 | 28,216 | (447,598) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 40,327 | 40,327 | ||||
Net change in post-retirement benefit liability | 490 | 490 | ||||
Change in unrealized gain on investments | (21,292) | (21,292) | ||||
Change in non-credit component of impairment losses on fixed maturities | 397 | 397 | ||||
Comprehensive income | 19,922 | |||||
Dividends paid to common shareholders | (14,596) | (14,596) | ||||
Shares issued and share-based compensation expense, including tax benefit | 2,982 | 38 | 2,944 | |||
Acquisition of treasury stock | (28,041) | (28,041) | ||||
Ending Balance at Dec. 31, 2015 | 687,595 | 21,794 | 376,025 | 757,604 | 7,811 | (475,638) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 7,708 | 7,708 | ||||
Net change in post-retirement benefit liability | (7) | (7) | ||||
Change in unrealized gain on investments | 9,906 | 9,906 | ||||
Change in non-credit component of impairment losses on fixed maturities | 52 | 52 | ||||
Comprehensive income | 17,659 | |||||
Dividends paid to common shareholders | (5,744) | (5,744) | ||||
Shares issued and share-based compensation expense, including tax benefit | 380 | 5 | 375 | |||
Acquisition of treasury stock | (8,394) | (8,394) | ||||
Ending Balance at Mar. 31, 2016 | $ 691,496 | $ 21,799 | $ 376,400 | $ 759,567 | $ 17,762 | $ (484,032) |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating Activities: | ||
Net earnings | $ 7,708 | $ 11,154 |
Adjustments: | ||
Depreciation | 3,083 | 2,982 |
Amortization | 5,801 | 5,936 |
Net realized gains on investments | (139) | (1,169) |
Loss (gain) on disposal of property and equipment | 3 | 115 |
Share-based compensation expense | 323 | 659 |
Activity related to rabbi trust | 18 | 27 |
Change in accrued investment income | 823 | 946 |
Change in agents’ balances and premium receivable | (31,061) | (46,331) |
Change in reinsurance receivables | (3,730) | (761) |
Change in deferred policy acquisition costs | (4,056) | (7,736) |
Change in other assets | (3,130) | 1,684 |
Change in unpaid losses and loss adjustment expenses | 3,511 | 7,578 |
Change in unearned premium | 35,850 | 55,173 |
Change in other liabilities | (4,039) | (2,790) |
Net cash provided by operating activities | 10,965 | 27,467 |
Investing Activities: | ||
Purchases of fixed maturities | (157,887) | (150,155) |
Purchases of equity securities | 0 | (2,000) |
Purchases of short-term investments | 0 | (1,032) |
Purchases of property and equipment | (4,945) | (2,140) |
Maturities and redemptions of fixed maturities | 39,298 | 46,727 |
Proceeds from sale of fixed maturities | 103,935 | 95,432 |
Proceeds from sale of equity securities | 0 | 4,489 |
Proceeds from sale of short-term investments | 4,602 | 0 |
Net cash used in investing activities | (14,996) | (8,678) |
Financing Activities: | ||
Proceeds from stock options exercised and employee stock purchases | 57 | 66 |
Principal payments under capital lease obligations | (120) | (118) |
Acquisition of treasury stock | (9,021) | (1,912) |
Dividends paid to shareholders | (5,744) | (4,932) |
Net cash used in financing activities | (14,829) | (6,896) |
Net decrease in cash and cash equivalents | (18,860) | 11,893 |
Cash and cash equivalents at beginning of period | 62,483 | 84,541 |
Cash and cash equivalents at end of period | $ 43,623 | $ 96,434 |
Significant Reporting And Accou
Significant Reporting And Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Significant Reporting And Accounting Policies | Significant Reporting and Accounting Policies Nature of Operations We are a holding company that provides insurance through our subsidiaries for personal automobiles with a concentration on nonstandard risks, commercial vehicles and classic collectors. Although licensed to write insurance in all 50 states and the District of Columbia, we focus on select states that we believe offer the greatest opportunity for premium growth and profitability. Basis of Consolidation and Reporting The accompanying consolidated financial statements are unaudited and should be read in conjunction with our Annual Report on Form 10-K (Form 10-K) for the year ended December 31, 2015 . This Quarterly Report on Form 10-Q, including the Condensed Notes to Consolidated Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations, focuses on our financial performance since the beginning of the year. These financial statements reflect certain adjustments necessary for a fair presentation of our results of operations and financial position. Such adjustments consist of normal, recurring accruals recorded to accurately match expenses with their related revenue streams and the elimination of all significant intercompany transactions and balances. We have evaluated events that occurred after March 31, 2016 , for recognition or disclosure in our financial statements and the notes to the financial statements. Schedules may not foot due to rounding. Estimates We based certain accounts and balances within these financial statements upon our estimates and assumptions. The amount of reserves for claims not yet paid, for example, is an item that we can only record by estimation. Unrealized capital gains and losses on investments are subject to market fluctuations, and we use judgment in the determination of whether unrealized losses on certain securities are temporary or other-than-temporary. Should actual results differ significantly from these estimates, the effect on our results of operations could be material. The results of operations for the periods presented may not be indicative of our results for the entire year. Recently Adopted Accounting Standards In April 2015 the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) related to the presentation of debt issuance costs. The guidance requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability. We adopted this standard retrospectively as of January 1, 2016. The following table illustrates the effect of adopting this standard on the Consolidated Balance Sheets ($ in millions): December 31, 2015 As Reported As Adjusted Difference Other assets $ 11.9 $ 10.3 $ (1.6 ) Total assets 2,386.8 2,385.1 (1.6 ) Long-term debt 275.0 273.4 (1.6 ) Total liabilities 1,699.2 1,697.5 (1.6 ) Total liabilities and shareholders' equity 2,386.8 2,385.1 (1.6 ) Recently Issued Accounting Standards In March 2016 the FASB issued an ASU related to the accounting for employee share-based payments. The guidance addresses the recognition, presentation and classification of awards, forfeitures and shares withheld for tax purposes. The standard is effective for fiscal periods beginning after December 15, 2016, with each provision having a different application method. We do not expect the adoption of this standard to have a material impact on our financial condition or results of operations. In February 2016 the FASB issued an ASU related to the accounting for leases. The guidance requires lessees to recognize lease assets and liabilities on the balance sheet. The standard is effective for fiscal years beginning after December 15, 2018, and is to be applied retrospectively, with an option to use a modified retrospective approach for leases which commenced prior to the effective date of this ASU. We are still evaluating the impact this ASU will have on the Company's consolidated financial statements. In January 2016 the FASB issued an ASU amending the guidance on classifying and measuring financial instruments. The guidance requires equity securities to be measured at fair value and changes in that fair value to be recognized through net income. The standard is effective for fiscal years beginning after December 15, 2017, with a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. We currently record equity securities at fair value and as of March 31, 2016 , we have $7.3 million net unrealized gains , net of tax, recognized as a component of other comprehensive income. In May 2015 the FASB issued an ASU related to the disclosure for short-duration contracts. The guidance requires additional disclosures related to the liability for unpaid claims and claim adjustment expenses in an effort to increase transparency and comparability. The standard is effective for fiscal years beginning after December 15, 2015, and is to be applied retrospectively. The new guidance will have no material impact on our results of operations or financial position. In May 2014 the FASB issued an ASU related to the accounting for revenue from contracts with customers. Insurance contracts have been excluded from the scope of the guidance. In August 2015 the FASB issued an ASU to defer the effective date from fiscal years beginning after December 15, 2016, to fiscal years beginning after December 15, 2017. We do not expect the adoption of this standard to have a material impact on our financial condition or results of operations. |
Computation Of Earnings Per Sha
Computation Of Earnings Per Share | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Computation of Net Earnings per Share | Computation of Net Earnings per Share The following table illustrates our computations of basic and diluted net earnings per common share ($ in thousands, except per share figures): Three months ended March 31, 2016 2015 Net earnings $ 7,708 $ 11,154 Average basic shares outstanding 11,036 11,427 Basic net earnings per share $ 0.70 $ 0.98 Average basic shares outstanding 11,036 11,427 Restricted stock not vested 21 11 Dilutive effect of Performance Share Plan 77 113 Average diluted shares outstanding 11,134 11,551 Diluted net earnings per share $ 0.69 $ 0.97 |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 43,623 $ 0 $ 0 $ 43,623 Fixed maturity securities: U.S. government 64,836 14 0 64,850 State and municipal 0 486,212 0 486,212 Mortgage-backed securities: Residential 0 340,971 0 340,971 Commercial 0 65,532 0 65,532 Total mortgage-backed securities 0 406,503 0 406,503 Asset-backed securities 0 49,183 1,338 50,522 Corporates 0 397,917 1,442 399,359 Total fixed maturities 64,836 1,339,830 2,781 1,407,446 Equity securities 90,055 0 0 90,055 Short-term investments 0 0 0 0 Total cash and investments $ 198,513 $ 1,339,830 $ 2,781 $ 1,541,124 Percentage of total cash and investments 12.9 % 86.9 % 0.2 % 100.0 % Fair Value December 31, 2015 Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 62,483 $ 0 $ 0 $ 62,483 Fixed maturity securities: U.S. government 64,638 32 0 64,669 State and municipal 0 479,656 10 479,666 Mortgage-backed securities: Residential 0 334,784 0 334,784 Commercial 0 70,224 0 70,224 Total mortgage-backed securities 0 405,008 0 405,008 Asset-backed securities 0 54,018 0 54,018 Corporates 0 376,582 1,524 378,105 Total fixed maturities 64,638 1,315,295 1,534 1,381,467 Equity securities 89,935 0 0 89,935 Short-term investments 0 4,651 0 4,651 Total cash and investments $ 217,056 $ 1,319,946 $ 1,534 $ 1,538,536 Percentage of total cash and investments 14.1 % 85.8 % 0.1 % 100.0 % We do not report our long-term debt at fair value in the Consolidated Balance Sheets. The $288.6 million and $281.6 million fair value of our long-term debt at March 31, 2016 , and December 31, 2015 , 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 held in a rabbi trust which funds our Supplemental Employee Retirement Plan (SERP). Level 2 includes securities whose fair value was determined using observable market inputs. Level 3 securities are comprised of (i) securities for which there is no active or inactive market for similar instruments; (ii) securities whose fair value is determined based on unobservable inputs; and (iii) securities, other than those backed by the U.S. Government, that are not rated by a nationally recognized statistical rating organization (NRSRO). We recognize transfers between levels at the beginning of the reporting period. A third party nationally recognized pricing service provides the fair value of securities in Level 2. A summary of the significant valuation techniques and market inputs for each class of security follows: U.S. Government : In determining the fair value for U.S. Government securities we use the market approach. The primary inputs to the valuation include reported trades, dealer quotes for identical or similar assets in markets that are not active, benchmark yields, credit spreads, reference data and industry and economic events. State and municipal : In determining the fair value for state and municipal securities we use the market approach. The primary inputs to the valuation include reported trades, dealer quotes for identical or similar assets in markets that are not active, benchmark yields, credit spreads, reference data and industry and economic events. Mortgage-backed securities : In determining the fair value for mortgage-backed securities we use the market approach and to a lesser extent the income approach. The primary inputs to the valuation include reported trades, dealer quotes for identical or similar assets in markets that are not active, benchmark yields, credit spreads, reference data, industry and economic events and monthly payment information. Asset-backed securities : In determining the fair value for asset-backed securities we use the market approach and to a lesser extent the income approach. The primary inputs to the valuation include reported trades, dealer quotes for identical or similar assets in markets that are not active, benchmark yields, credit spreads, reference data, industry and economic events, monthly payment information and collateral performance. Corporate : In determining the fair value for corporate securities we use the market approach. The primary inputs to the valuation include reported trades, dealer quotes for identical or similar assets in markets that are not active, benchmark yields, credit spreads (for investment grade securities), observations of equity and credit default swap curves (for high-yield corporates), reference data and industry and economic events. We review the third party pricing methodologies quarterly and test for significant differences between the market price used to value the security and recent sales activity. The following tables present the progression in the Level 3 fair value category ($ in thousands): Three months ended March 31, 2016 State and Municipal Corporates Asset-Backed Securities Total Balance at beginning of period $ 10 $ 1,524 $ 0 $ 1,534 Total gains or (losses), unrealized or realized Included in net earnings (0 ) 3 0 3 Included in other comprehensive income (0 ) 1 1 1 Settlements (10 ) (86 ) 0 (96 ) Transfers in 0 0 1,338 1,338 Balance at end of period $ 0 $ 1,442 $ 1,338 $ 2,781 Three months ended March 31, 2015 State and Municipal Corporates Asset-Backed Securities Total Balance at beginning of period $ 0 $ 3,134 $ 150 $ 3,285 Total losses, unrealized or realized Included in net earnings (0 ) (95 ) 0 (95 ) Included in other comprehensive income 0 (14 ) 0 (14 ) Settlements 0 (80 ) (105 ) (184 ) Transfers in 10 0 0 10 Balance at end of period $ 10 $ 2,946 $ 46 $ 3,002 Of the $2.8 million fair value of securities in Level 3 at March 31, 2016 , which consisted of four securities, we priced three based on non-binding broker quotes and one price was provided by our unaffiliated money manager. During the three months ended March 31, 2016 , one security was transferred from Level 2 into Level 3 because a price could not be determined using observable market inputs. There were no transfers of securities between Levels 1 and 2. The gains or losses included in net earnings are included in the line item "Net realized gains on investments" in the Consolidated Statements of Earnings. We recognize the net gains or losses included in other comprehensive income in the line item "Unrealized gains on investments, net" in the Consolidated Statements of Comprehensive Income and the line item "Change in unrealized gain on investments" or the line item "Change in non-credit component of impairment losses on fixed maturities" in the Consolidated Statements of Changes in Shareholders’ Equity. The following table presents the carrying value and estimated fair value of our financial instruments ($ in thousands): March 31, 2016 December 31, 2015 Carrying Value Fair Value Carrying Value Fair Value Assets: Cash and cash equivalents $ 43,623 $ 43,623 $ 62,483 $ 62,483 Available-for-sale securities: Fixed maturities 1,407,446 1,407,446 1,381,467 1,381,467 Equity securities 90,055 90,055 89,935 89,935 Short-term investments 0 0 4,651 4,651 Total cash and investments $ 1,541,124 $ 1,541,124 $ 1,538,536 $ 1,538,536 Liabilities: Long-term debt $ 273,434 $ 288,613 $ 273,383 $ 281,581 Refer to Note 4 – Investments to the Consolidated Financial Statements for additional information on investments and Note 5 – Long-Term Debt to the Consolidated Financial Statements for additional information on long-term debt. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments We consider all fixed maturity and equity securities to be available-for-sale and report them at fair value with the net unrealized gains or losses reported after-tax (net of any valuation allowance) as a component of other comprehensive income. The proceeds from sales of securities for the three months ended March 31, 2016 , and March 31, 2015 , were $108.5 million and $99.9 million , respectively. The proceeds for the three months ended March 31, 2016 , were net of $2.1 million of receivable for unsettled sales as of March 31, 2016 . The proceeds for the three months ended March 31, 2015 , were net of $3.6 million of receivable for securities sold during the first quarter of 2015 that had not settled at March 31, 2015 . Gross gains of $1.3 million and gross losses of $1.0 million were realized on sales of available-for-sale securities during the three months ended March 31, 2016 , compared with gross gains of $2.1 million and gross losses of $0.6 million realized on sales during the three months ended March 31, 2015 . Gains or losses on securities are determined on a specific identification basis. Summarized information for the major categories of our investment portfolio follows ($ in thousands): March 31, 2016 Amortized Cost or Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI Recognized in Accumulated OCI (1) Fixed maturities: U.S. government $ 64,232 $ 624 $ (6 ) $ 64,850 $ 0 State and municipal 477,530 8,908 (226 ) 486,212 (51 ) Mortgage-backed securities: Residential 334,746 6,652 (427 ) 340,971 (2,303 ) Commercial 65,947 163 (578 ) 65,532 0 Total mortgage-backed securities 400,693 $ 6,815 (1,005 ) $ 406,503 (2,303 ) Asset-backed securities 50,475 114 (67 ) 50,522 (8 ) Corporates 399,369 4,258 (4,267 ) 399,359 (51 ) Total fixed maturities 1,392,299 20,718 (5,570 ) 1,407,446 (2,414 ) Equity securities 78,810 11,245 0 90,055 0 Short-term investments 0 0 0 0 0 Total $ 1,471,109 $ 31,962 $ (5,570 ) $ 1,497,501 $ (2,414 ) December 31, 2015 Amortized Cost or Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI Recognized in Accumulated OCI (1) Fixed maturities: U.S. government $ 64,849 $ 103 $ (282 ) $ 64,669 $ 0 State and municipal 472,402 7,393 (129 ) 479,666 (51 ) Mortgage-backed securities: Residential 333,554 3,678 (2,448 ) 334,784 (2,374 ) Commercial 71,137 16 (929 ) 70,224 0 Total mortgage-backed securities 404,691 3,694 (3,377 ) 405,008 (2,374 ) Asset-backed securities 54,106 50 (138 ) 54,018 (8 ) Corporates 385,462 1,281 (8,638 ) 378,105 (61 ) Total fixed maturities 1,381,510 12,521 (12,564 ) 1,381,467 (2,495 ) Equity securities 78,815 11,120 0 89,935 0 Short-term investments 4,656 0 (4 ) 4,651 0 Total $ 1,464,981 $ 23,640 $ (12,568 ) $ 1,476,053 $ (2,495 ) (1) The total non-credit portion of OTTI recognized in Accumulated OCI reflecting the original non-credit loss at the time the credit impairment was determined. The following tables set forth the amount of unrealized loss by investment category and length of time that individual securities have been in a continuous unrealized loss position ($ in thousands): Less than 12 Months 12 Months or More March 31, 2016 Number of Securities with Unrealized Losses Fair Value Gross Unrealized Losses Unrealized Losses as % of Cost Number of Securities with Unrealized Losses Fair Value Gross Unrealized Losses Unrealized Losses as % of Cost Fixed maturities: U.S. government 1 $ 3,894 $ (3 ) 0.1 % 3 $ 3,406 $ (3 ) 0.1 % State and municipal 22 47,615 (226 ) 0.5 % 0 0 0 0.0 % Mortgage-backed securities: Residential 35 13,838 (50 ) 0.4 % 74 42,056 (377 ) 0.9 % Commercial 6 17,216 (126 ) 0.7 % 11 39,953 (452 ) 1.1 % Total mortgage-backed securities 41 31,053 (177 ) 0.6 % 85 82,009 (828 ) 1.0 % Asset-backed securities 19 18,395 (61 ) 0.3 % 3 2,008 (6 ) 0.3 % Corporates 66 84,680 (2,895 ) 3.3 % 25 32,720 (1,372 ) 4.0 % Total fixed maturities 149 185,638 (3,361 ) 1.8 % 116 120,144 (2,210 ) 1.8 % Equity securities 0 0 0 0.0 % 0 0 0 0.0 % Short-term investments 0 0 0 0.0 % 0 0 0 0.0 % Total 149 $ 185,638 $ (3,361 ) 1.8 % 116 $ 120,144 $ (2,210 ) 1.8 % Less than 12 Months 12 Months or More December 31, 2015 Number of Securities with Unrealized Losses Fair Value Gross Unrealized Losses Unrealized Losses as % of Cost Number of Securities with Unrealized Losses Fair Value Gross Unrealized Losses Unrealized Losses as % of Cost Fixed maturities: U.S. government 18 $ 36,024 $ (241 ) 0.7 % 4 $ 4,687 $ (41 ) 0.9 % State and municipal 27 54,680 (129 ) 0.2 % 0 0 0 0.0 % Mortgage-backed securities: Residential 205 133,814 (1,436 ) 1.1 % 64 39,001 (1,012 ) 2.5 % Commercial 9 28,733 (349 ) 1.2 % 10 34,169 (580 ) 1.7 % Total mortgage-backed securities 214 162,547 (1,785 ) 1.1 % 74 73,170 (1,592 ) 2.1 % Asset-backed securities 36 35,313 (132 ) 0.4 % 2 1,153 (7 ) 0.6 % Corporates 172 239,440 (7,149 ) 2.9 % 12 14,373 (1,488 ) 9.4 % Total fixed maturities 467 528,003 (9,436 ) 1.8 % 92 93,384 (3,128 ) 3.2 % Equity securities 0 0 0 0.0 % 0 0 0 0.0 % Short-term investments 2 4,651 (4 ) 0.1 % 0 0 0 0.0 % Total 469 $ 532,654 $ (9,440 ) 1.7 % 92 $ 93,384 $ (3,128 ) 3.2 % 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: March 31, December 31, Number of positions held with unrealized: Gains 918 602 Losses 265 561 Number of positions held that individually exceed unrealized: Gains of $500,000 2 2 Losses of $500,000 0 0 Percentage of positions held with unrealized: Gains that were investment grade 94 % 94 % Losses that were investment grade 83 % 89 % Percentage of fair value held with unrealized: Gains that were investment grade 94 % 95 % Losses that were investment grade 84 % 88 % The following table sets forth the amount of unrealized losses, excluding the rabbi trust, by age and severity at March 31, 2016 , ($ in thousands): Fair Value of Securities with Unrealized Losses Total Gross Unrealized Losses Less Than 5%* 5% - 10%* Total Gross Greater Than 10%* Age of Unrealized Losses Three months or less $ 71,462 $ (341 ) $ (341 ) $ 0 $ 0 Four months through six months 41,617 (572 ) (319 ) (253 ) 0 Seven months through nine months 27,755 (1,578 ) (272 ) (216 ) (1,090 ) Ten months through twelve months 55,845 (1,066 ) (522 ) (331 ) (213 ) Greater than twelve months 109,102 (2,014 ) (1,049 ) (336 ) (629 ) Total $ 305,782 $ (5,570 ) $ (2,502 ) $ (1,136 ) $ (1,932 ) * As a percentage of amortized cost or cost. The change in unrealized gains (losses) on marketable securities included the following ($ in thousands): Pre-tax Fixed Maturities Equity Securities Short-Term Investments Tax Effects Net Three months ended March 31, 2016 Unrealized holding gains on securities arising during the period $ 15,332 $ 125 $ 2 $ (5,411 ) $ 10,048 Realized (gains) losses on securities sold (259 ) 0 2 90 (167 ) Impairment loss recognized in earnings 118 0 0 (41 ) 76 Change in unrealized gains on securities, net $ 15,190 $ 125 $ 4 $ (5,362 ) $ 9,958 Three months ended March 31, 2015 Unrealized holding gains (losses) on securities arising during the period $ 6,036 $ 2,380 $ (0 ) $ (2,946 ) $ 5,470 Realized gains on securities sold (452 ) (1,098 ) 0 543 (1,008 ) Impairment loss recognized in earnings 381 0 0 (134 ) 248 Change in unrealized gains (losses) on securities, net $ 5,966 $ 1,282 $ (0 ) $ (2,536 ) $ 4,711 For fixed maturity securities that are other-than-temporarily impaired, we assess our intent to sell and the likelihood that we will be required to sell the security before recovery of our amortized cost. If a fixed maturity security is considered other-than-temporarily impaired but we do not intend to and are not more than likely to be required to sell the security before our recovery of amortized cost, we separate the amount of the impairment into a credit loss component and the amount due to all other factors ("non-credit component"). The excess of the amortized cost over the present value of the expected cash flows determines the credit loss component of an impairment charge on a fixed maturity security. The present value is determined using the best estimate of cash flows discounted at (i) the effective interest rate implicit at the date of acquisition for non-structured securities; or (ii) 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): Three months ended March 31, 2016 2015 Beginning balance $ 683 $ 852 Securities sold and paid down (26 ) (52 ) Ending balance $ 658 $ 799 The table below sets forth the scheduled maturities of fixed maturity securities at March 31, 2016 , based on their fair values ($ in thousands). We report securities that do not have a single maturity date at average maturity. Actual maturities may differ from contractual maturities because certain securities may be called or prepaid by the issuers. Fair Value Amortized Cost Securities with Unrealized Gains Securities with Unrealized Losses Securities with No Unrealized Gains or Losses All Fixed Maturity Securities All Fixed Maturity Securities Maturity One year or less $ 66,163 $ 536 $ 4,000 $ 70,699 $ 70,101 After one year through five years 485,671 107,271 0 592,942 587,296 After five years through ten years 216,409 64,508 1,504 282,421 279,469 After ten years 4,359 0 0 4,359 4,265 Mortgage- and asset-backed securities 323,559 133,466 0 457,025 451,168 Total $ 1,096,160 $ 305,782 $ 5,504 $ 1,407,446 $ 1,392,299 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt ($ in thousands) March 31, 2016 December 31, 2015 Principal $ 275,000 $ 275,000 Less unamortized debt issuance costs 1,566 1,617 Long-term debt less unamortized debt issuance costs $ 273,434 $ 273,383 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 March 31, 2016 , fair value of $288.6 million using a 235 basis point spread to the 10 -year U.S. Treasury Note of 1.77% . In August 2014 we renewed our agreement for a $50 million three -year revolving credit facility (the “Credit Agreement”) that requires us to meet certain financial and other covenants. We are currently in compliance with all covenants under the Credit Agreement, and as of March 31, 2016 , there were no borrowings outstanding against it. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following is a reconciliation of income taxes at the statutory rate of 35.0% to the effective provision for income taxes as shown in the Consolidated Statements of Earnings ($ in thousands): Three months ended March 31, 2016 2015 Earnings before income taxes $ 10,776 $ 16,236 Income taxes at statutory rate 3,772 5,683 Effect of: Dividends-received deduction (72 ) (104 ) Tax-exempt interest (639 ) (724 ) Other 8 228 Provision for income taxes as shown on the Consolidated Statements of Earnings $ 3,068 $ 5,082 GAAP effective tax rate 28.5 % 31.3 % |
Additional Information
Additional Information | 3 Months Ended |
Mar. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Additional Information | Additional Information Supplemental Cash Flow Information We made the following payments that we do not separately disclose in the Consolidated Statements of Cash Flows ($ in thousands): Three months ended March 31, 2016 2015 Income tax payments $ 0 $ 750 Interest payments on debt 6,875 6,875 Interest payments on capital leases 20 22 Negative Cash Book Balances Negative cash book balances, included in the line item “Other liabilities” in the Consolidated Balance Sheets, were $47.0 million and $41.4 million at March 31, 2016 , and December 31, 2015 , respectively. |
Insurance Reserves
Insurance Reserves | 3 Months Ended |
Mar. 31, 2016 | |
Insurance [Abstract] | |
Insurance Reserves | Insurance Reserves Insurance reserves include liabilities for unpaid losses, both known and estimated for incurred but not reported (IBNR), and unpaid loss adjustment expenses (LAE). The following table provides an analysis of changes in the liability for unpaid losses and LAE on a GAAP basis ($ in thousands): Three months ended March 31, 2016 2015 Balance at Beginning of Period Unpaid losses on known claims $ 237,660 $ 235,037 IBNR losses 290,097 277,482 LAE 142,207 155,658 Total unpaid losses and LAE 669,965 668,177 Reinsurance recoverables (14,694 ) (14,370 ) Unpaid losses and LAE, net of reinsurance recoverables 655,271 653,808 Current Activity Loss and LAE incurred: Current accident year 271,167 257,785 Prior accident years (5,883 ) (2,142 ) Total loss and LAE incurred 265,284 255,643 Loss and LAE payments: Current accident year (89,444 ) (81,907 ) Prior accident years (175,360 ) (165,770 ) Total loss and LAE payments (264,804 ) (247,677 ) Balance at End of Period Unpaid losses and LAE, net of reinsurance recoverables 655,751 661,773 Add back reinsurance recoverables 17,724 13,982 Total unpaid losses and LAE 673,475 675,755 Unpaid losses on known claims 236,701 241,483 IBNR losses 295,281 278,863 LAE 141,493 155,409 Total unpaid losses and LAE $ 673,475 $ 675,755 The $5.9 million of favorable reserve development during the three months ended March 31, 2016 , was primarily due to decreases in severity estimates and loss adjustment expenses related to Florida and California bodily injury coverages as well as a decrease in severity estimates in Florida personal injury protection, all related to accident years 2014 and prior. This was partially offset by unfavorable development from accident year 2015 in California material damage coverages, driven by an increase in severity. The $2.1 million of favorable reserve development during the three months ended March 31, 2015 , was primarily due to decreases in loss adjustment expense in Florida bodily injury coverages and in California property damage and bodily injury coverages related to accident year 2013. |
Commitments And Contingencies
Commitments And Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments There have been no material changes from the commitments discussed on Form 10-K for the year ended December 31, 2015 . For a description of our previously reported commitments, refer to Note 14 Commitments and Contingencies of our Form 10-K for the year ended December 31, 2015 . Contingencies 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 is judged to be reasonably possible, we will disclose an estimated 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 loss adjustment expenses” 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 loss adjustment expenses” 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. For a description of previously reported contingencies, refer to Note 14 Commitments and Contingencies of our Form 10-K for the year ended December 31, 2015 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The components of other comprehensive income before and after tax are as follows ($ in thousands): Three months ended March 31, 2016 2015 Before Tax Income Tax Net Before Tax Income Tax Net Accumulated change in post-retirement benefit liability, beginning of period $ 944 $ (331 ) $ 614 $ 174 $ (61 ) $ 113 Effect on other comprehensive income (11 ) 4 (7 ) 16 (6 ) 11 Accumulated change in post-retirement benefit liability, end of period 934 (327 ) 607 190 (66 ) 123 Accumulated unrealized gains on investments, net, beginning of period 11,072 (3,875 ) 7,197 35,972 (12,590 ) 23,382 Other comprehensive income before reclassification 15,459 (5,411 ) 10,048 8,416 (2,946 ) 5,470 Reclassification adjustment for other-than-temporary impairments included in net income 118 (41 ) 76 381 (134 ) 248 Reclassification adjustment for realized gains included in net income (257 ) 90 (167 ) (1,551 ) 543 (1,008 ) Effect on other comprehensive income 15,320 (5,362 ) 9,958 7,247 (2,536 ) 4,711 Accumulated unrealized gains on investments, net, end of period 26,392 (9,237 ) 17,155 43,218 (15,126 ) 28,092 Accumulated other comprehensive income, beginning of period 12,016 (4,206 ) 7,811 36,145 (12,651 ) 23,494 Change in post-retirement benefit liability (11 ) 4 (7 ) 16 (6 ) 11 Change in unrealized gains on investments, net 15,320 (5,362 ) 9,958 7,247 (2,536 ) 4,711 Effect on other comprehensive income 15,309 (5,358 ) 9,951 7,263 (2,542 ) 4,721 Accumulated other comprehensive income, end of period $ 27,326 $ (9,564 ) $ 17,762 $ 43,408 $ (15,193 ) $ 28,216 |
Significant Reporting And Acc18
Significant Reporting And Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Consolidation and Reporting | Basis of Consolidation and Reporting The accompanying consolidated financial statements are unaudited and should be read in conjunction with our Annual Report on Form 10-K (Form 10-K) for the year ended December 31, 2015 . This Quarterly Report on Form 10-Q, including the Condensed Notes to Consolidated Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations, focuses on our financial performance since the beginning of the year. These financial statements reflect certain adjustments necessary for a fair presentation of our results of operations and financial position. Such adjustments consist of normal, recurring accruals recorded to accurately match expenses with their related revenue streams and the elimination of all significant intercompany transactions and balances. We have evaluated events that occurred after March 31, 2016 , for recognition or disclosure in our financial statements and the notes to the financial statements. Schedules may not foot due to rounding. |
Estimates | Estimates We based certain accounts and balances within these financial statements upon our estimates and assumptions. The amount of reserves for claims not yet paid, for example, is an item that we can only record by estimation. Unrealized capital gains and losses on investments are subject to market fluctuations, and we use judgment in the determination of whether unrealized losses on certain securities are temporary or other-than-temporary. Should actual results differ significantly from these estimates, the effect on our results of operations could be material. The results of operations for the periods presented may not be indicative of our results for the entire year. |
Recently Adopted and Issued Accounting Standards | Recently Adopted Accounting Standards In April 2015 the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) related to the presentation of debt issuance costs. The guidance requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability. We adopted this standard retrospectively as of January 1, 2016. The following table illustrates the effect of adopting this standard on the Consolidated Balance Sheets ($ in millions): December 31, 2015 As Reported As Adjusted Difference Other assets $ 11.9 $ 10.3 $ (1.6 ) Total assets 2,386.8 2,385.1 (1.6 ) Long-term debt 275.0 273.4 (1.6 ) Total liabilities 1,699.2 1,697.5 (1.6 ) Total liabilities and shareholders' equity 2,386.8 2,385.1 (1.6 ) Recently Issued Accounting Standards In March 2016 the FASB issued an ASU related to the accounting for employee share-based payments. The guidance addresses the recognition, presentation and classification of awards, forfeitures and shares withheld for tax purposes. The standard is effective for fiscal periods beginning after December 15, 2016, with each provision having a different application method. We do not expect the adoption of this standard to have a material impact on our financial condition or results of operations. In February 2016 the FASB issued an ASU related to the accounting for leases. The guidance requires lessees to recognize lease assets and liabilities on the balance sheet. The standard is effective for fiscal years beginning after December 15, 2018, and is to be applied retrospectively, with an option to use a modified retrospective approach for leases which commenced prior to the effective date of this ASU. We are still evaluating the impact this ASU will have on the Company's consolidated financial statements. In January 2016 the FASB issued an ASU amending the guidance on classifying and measuring financial instruments. The guidance requires equity securities to be measured at fair value and changes in that fair value to be recognized through net income. The standard is effective for fiscal years beginning after December 15, 2017, with a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. We currently record equity securities at fair value and as of March 31, 2016 , we have $7.3 million net unrealized gains , net of tax, recognized as a component of other comprehensive income. In May 2015 the FASB issued an ASU related to the disclosure for short-duration contracts. The guidance requires additional disclosures related to the liability for unpaid claims and claim adjustment expenses in an effort to increase transparency and comparability. The standard is effective for fiscal years beginning after December 15, 2015, and is to be applied retrospectively. The new guidance will have no material impact on our results of operations or financial position. In May 2014 the FASB issued an ASU related to the accounting for revenue from contracts with customers. Insurance contracts have been excluded from the scope of the guidance. In August 2015 the FASB issued an ASU to defer the effective date from fiscal years beginning after December 15, 2016, to fiscal years beginning after December 15, 2017. We do not expect the adoption of this standard to have a material impact on our financial condition or results of operations. |
Significant Reporting and Acc19
Significant Reporting and Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of effect of adopting new ASU on the Consolidated Balance Sheets | The following table illustrates the effect of adopting this standard on the Consolidated Balance Sheets ($ in millions): December 31, 2015 As Reported As Adjusted Difference Other assets $ 11.9 $ 10.3 $ (1.6 ) Total assets 2,386.8 2,385.1 (1.6 ) Long-term debt 275.0 273.4 (1.6 ) Total liabilities 1,699.2 1,697.5 (1.6 ) Total liabilities and shareholders' equity 2,386.8 2,385.1 (1.6 ) |
Computation of Net Earnings per
Computation of Net Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Earnings Per Common Share | The following table illustrates our computations of basic and diluted net earnings per common share ($ in thousands, except per share figures): Three months ended March 31, 2016 2015 Net earnings $ 7,708 $ 11,154 Average basic shares outstanding 11,036 11,427 Basic net earnings per share $ 0.70 $ 0.98 Average basic shares outstanding 11,036 11,427 Restricted stock not vested 21 11 Dilutive effect of Performance Share Plan 77 113 Average diluted shares outstanding 11,134 11,551 Diluted net earnings per share $ 0.69 $ 0.97 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 43,623 $ 0 $ 0 $ 43,623 Fixed maturity securities: U.S. government 64,836 14 0 64,850 State and municipal 0 486,212 0 486,212 Mortgage-backed securities: Residential 0 340,971 0 340,971 Commercial 0 65,532 0 65,532 Total mortgage-backed securities 0 406,503 0 406,503 Asset-backed securities 0 49,183 1,338 50,522 Corporates 0 397,917 1,442 399,359 Total fixed maturities 64,836 1,339,830 2,781 1,407,446 Equity securities 90,055 0 0 90,055 Short-term investments 0 0 0 0 Total cash and investments $ 198,513 $ 1,339,830 $ 2,781 $ 1,541,124 Percentage of total cash and investments 12.9 % 86.9 % 0.2 % 100.0 % Fair Value December 31, 2015 Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 62,483 $ 0 $ 0 $ 62,483 Fixed maturity securities: U.S. government 64,638 32 0 64,669 State and municipal 0 479,656 10 479,666 Mortgage-backed securities: Residential 0 334,784 0 334,784 Commercial 0 70,224 0 70,224 Total mortgage-backed securities 0 405,008 0 405,008 Asset-backed securities 0 54,018 0 54,018 Corporates 0 376,582 1,524 378,105 Total fixed maturities 64,638 1,315,295 1,534 1,381,467 Equity securities 89,935 0 0 89,935 Short-term investments 0 4,651 0 4,651 Total cash and investments $ 217,056 $ 1,319,946 $ 1,534 $ 1,538,536 Percentage of total cash and investments 14.1 % 85.8 % 0.1 % 100.0 % |
Fair value level 3 reconciliation | The following tables present the progression in the Level 3 fair value category ($ in thousands): Three months ended March 31, 2016 State and Municipal Corporates Asset-Backed Securities Total Balance at beginning of period $ 10 $ 1,524 $ 0 $ 1,534 Total gains or (losses), unrealized or realized Included in net earnings (0 ) 3 0 3 Included in other comprehensive income (0 ) 1 1 1 Settlements (10 ) (86 ) 0 (96 ) Transfers in 0 0 1,338 1,338 Balance at end of period $ 0 $ 1,442 $ 1,338 $ 2,781 Three months ended March 31, 2015 State and Municipal Corporates Asset-Backed Securities Total Balance at beginning of period $ 0 $ 3,134 $ 150 $ 3,285 Total losses, unrealized or realized Included in net earnings (0 ) (95 ) 0 (95 ) Included in other comprehensive income 0 (14 ) 0 (14 ) Settlements 0 (80 ) (105 ) (184 ) Transfers in 10 0 0 10 Balance at end of period $ 10 $ 2,946 $ 46 $ 3,002 |
Carrying Value and Estimated Fair Value | The following table presents the carrying value and estimated fair value of our financial instruments ($ in thousands): March 31, 2016 December 31, 2015 Carrying Value Fair Value Carrying Value Fair Value Assets: Cash and cash equivalents $ 43,623 $ 43,623 $ 62,483 $ 62,483 Available-for-sale securities: Fixed maturities 1,407,446 1,407,446 1,381,467 1,381,467 Equity securities 90,055 90,055 89,935 89,935 Short-term investments 0 0 4,651 4,651 Total cash and investments $ 1,541,124 $ 1,541,124 $ 1,538,536 $ 1,538,536 Liabilities: Long-term debt $ 273,434 $ 288,613 $ 273,383 $ 281,581 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Summarized information of investment portfolio | Summarized information for the major categories of our investment portfolio follows ($ in thousands): March 31, 2016 Amortized Cost or Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI Recognized in Accumulated OCI (1) Fixed maturities: U.S. government $ 64,232 $ 624 $ (6 ) $ 64,850 $ 0 State and municipal 477,530 8,908 (226 ) 486,212 (51 ) Mortgage-backed securities: Residential 334,746 6,652 (427 ) 340,971 (2,303 ) Commercial 65,947 163 (578 ) 65,532 0 Total mortgage-backed securities 400,693 $ 6,815 (1,005 ) $ 406,503 (2,303 ) Asset-backed securities 50,475 114 (67 ) 50,522 (8 ) Corporates 399,369 4,258 (4,267 ) 399,359 (51 ) Total fixed maturities 1,392,299 20,718 (5,570 ) 1,407,446 (2,414 ) Equity securities 78,810 11,245 0 90,055 0 Short-term investments 0 0 0 0 0 Total $ 1,471,109 $ 31,962 $ (5,570 ) $ 1,497,501 $ (2,414 ) December 31, 2015 Amortized Cost or Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI Recognized in Accumulated OCI (1) Fixed maturities: U.S. government $ 64,849 $ 103 $ (282 ) $ 64,669 $ 0 State and municipal 472,402 7,393 (129 ) 479,666 (51 ) Mortgage-backed securities: Residential 333,554 3,678 (2,448 ) 334,784 (2,374 ) Commercial 71,137 16 (929 ) 70,224 0 Total mortgage-backed securities 404,691 3,694 (3,377 ) 405,008 (2,374 ) Asset-backed securities 54,106 50 (138 ) 54,018 (8 ) Corporates 385,462 1,281 (8,638 ) 378,105 (61 ) Total fixed maturities 1,381,510 12,521 (12,564 ) 1,381,467 (2,495 ) Equity securities 78,815 11,120 0 89,935 0 Short-term investments 4,656 0 (4 ) 4,651 0 Total $ 1,464,981 $ 23,640 $ (12,568 ) $ 1,476,053 $ (2,495 ) (1) The total non-credit portion of OTTI recognized in Accumulated OCI reflecting the original non-credit loss at the time the credit impairment was determined. |
Unrealized loss by investment category and length of time | The following tables set forth the amount of unrealized loss by investment category and length of time that individual securities have been in a continuous unrealized loss position ($ in thousands): Less than 12 Months 12 Months or More March 31, 2016 Number of Securities with Unrealized Losses Fair Value Gross Unrealized Losses Unrealized Losses as % of Cost Number of Securities with Unrealized Losses Fair Value Gross Unrealized Losses Unrealized Losses as % of Cost Fixed maturities: U.S. government 1 $ 3,894 $ (3 ) 0.1 % 3 $ 3,406 $ (3 ) 0.1 % State and municipal 22 47,615 (226 ) 0.5 % 0 0 0 0.0 % Mortgage-backed securities: Residential 35 13,838 (50 ) 0.4 % 74 42,056 (377 ) 0.9 % Commercial 6 17,216 (126 ) 0.7 % 11 39,953 (452 ) 1.1 % Total mortgage-backed securities 41 31,053 (177 ) 0.6 % 85 82,009 (828 ) 1.0 % Asset-backed securities 19 18,395 (61 ) 0.3 % 3 2,008 (6 ) 0.3 % Corporates 66 84,680 (2,895 ) 3.3 % 25 32,720 (1,372 ) 4.0 % Total fixed maturities 149 185,638 (3,361 ) 1.8 % 116 120,144 (2,210 ) 1.8 % Equity securities 0 0 0 0.0 % 0 0 0 0.0 % Short-term investments 0 0 0 0.0 % 0 0 0 0.0 % Total 149 $ 185,638 $ (3,361 ) 1.8 % 116 $ 120,144 $ (2,210 ) 1.8 % Less than 12 Months 12 Months or More December 31, 2015 Number of Securities with Unrealized Losses Fair Value Gross Unrealized Losses Unrealized Losses as % of Cost Number of Securities with Unrealized Losses Fair Value Gross Unrealized Losses Unrealized Losses as % of Cost Fixed maturities: U.S. government 18 $ 36,024 $ (241 ) 0.7 % 4 $ 4,687 $ (41 ) 0.9 % State and municipal 27 54,680 (129 ) 0.2 % 0 0 0 0.0 % Mortgage-backed securities: Residential 205 133,814 (1,436 ) 1.1 % 64 39,001 (1,012 ) 2.5 % Commercial 9 28,733 (349 ) 1.2 % 10 34,169 (580 ) 1.7 % Total mortgage-backed securities 214 162,547 (1,785 ) 1.1 % 74 73,170 (1,592 ) 2.1 % Asset-backed securities 36 35,313 (132 ) 0.4 % 2 1,153 (7 ) 0.6 % Corporates 172 239,440 (7,149 ) 2.9 % 12 14,373 (1,488 ) 9.4 % Total fixed maturities 467 528,003 (9,436 ) 1.8 % 92 93,384 (3,128 ) 3.2 % Equity securities 0 0 0 0.0 % 0 0 0 0.0 % Short-term investments 2 4,651 (4 ) 0.1 % 0 0 0 0.0 % Total 469 $ 532,654 $ (9,440 ) 1.7 % 92 $ 93,384 $ (3,128 ) 3.2 % |
Summary of unrealized gains or losses | The following table summarizes those securities, excluding the rabbi trust, with unrealized gains or losses: March 31, December 31, Number of positions held with unrealized: Gains 918 602 Losses 265 561 Number of positions held that individually exceed unrealized: Gains of $500,000 2 2 Losses of $500,000 0 0 Percentage of positions held with unrealized: Gains that were investment grade 94 % 94 % Losses that were investment grade 83 % 89 % Percentage of fair value held with unrealized: Gains that were investment grade 94 % 95 % Losses that were investment grade 84 % 88 % |
Unrealized loss by age and severity | The following table sets forth the amount of unrealized losses, excluding the rabbi trust, by age and severity at March 31, 2016 , ($ in thousands): Fair Value of Securities with Unrealized Losses Total Gross Unrealized Losses Less Than 5%* 5% - 10%* Total Gross Greater Than 10%* Age of Unrealized Losses Three months or less $ 71,462 $ (341 ) $ (341 ) $ 0 $ 0 Four months through six months 41,617 (572 ) (319 ) (253 ) 0 Seven months through nine months 27,755 (1,578 ) (272 ) (216 ) (1,090 ) Ten months through twelve months 55,845 (1,066 ) (522 ) (331 ) (213 ) Greater than twelve months 109,102 (2,014 ) (1,049 ) (336 ) (629 ) Total $ 305,782 $ (5,570 ) $ (2,502 ) $ (1,136 ) $ (1,932 ) * As a percentage of amortized cost or cost. |
Change in unrealized gains (losses) on marketable securities | The change in unrealized gains (losses) on marketable securities included the following ($ in thousands): Pre-tax Fixed Maturities Equity Securities Short-Term Investments Tax Effects Net Three months ended March 31, 2016 Unrealized holding gains on securities arising during the period $ 15,332 $ 125 $ 2 $ (5,411 ) $ 10,048 Realized (gains) losses on securities sold (259 ) 0 2 90 (167 ) Impairment loss recognized in earnings 118 0 0 (41 ) 76 Change in unrealized gains on securities, net $ 15,190 $ 125 $ 4 $ (5,362 ) $ 9,958 Three months ended March 31, 2015 Unrealized holding gains (losses) on securities arising during the period $ 6,036 $ 2,380 $ (0 ) $ (2,946 ) $ 5,470 Realized gains on securities sold (452 ) (1,098 ) 0 543 (1,008 ) Impairment loss recognized in earnings 381 0 0 (134 ) 248 Change in unrealized gains (losses) on securities, net $ 5,966 $ 1,282 $ (0 ) $ (2,536 ) $ 4,711 |
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): Three months ended March 31, 2016 2015 Beginning balance $ 683 $ 852 Securities sold and paid down (26 ) (52 ) Ending balance $ 658 $ 799 |
Scheduled maturities of fixed maturity securities | The table below sets forth the scheduled maturities of fixed maturity securities at March 31, 2016 , based on their fair values ($ in thousands). We report securities that do not have a single maturity date at average maturity. Actual maturities may differ from contractual maturities because certain securities may be called or prepaid by the issuers. Fair Value Amortized Cost Securities with Unrealized Gains Securities with Unrealized Losses Securities with No Unrealized Gains or Losses All Fixed Maturity Securities All Fixed Maturity Securities Maturity One year or less $ 66,163 $ 536 $ 4,000 $ 70,699 $ 70,101 After one year through five years 485,671 107,271 0 592,942 587,296 After five years through ten years 216,409 64,508 1,504 282,421 279,469 After ten years 4,359 0 0 4,359 4,265 Mortgage- and asset-backed securities 323,559 133,466 0 457,025 451,168 Total $ 1,096,160 $ 305,782 $ 5,504 $ 1,407,446 $ 1,392,299 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | ($ in thousands) March 31, 2016 December 31, 2015 Principal $ 275,000 $ 275,000 Less unamortized debt issuance costs 1,566 1,617 Long-term debt less unamortized debt issuance costs $ 273,434 $ 273,383 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of provision for income taxes | The following is a reconciliation of income taxes at the statutory rate of 35.0% to the effective provision for income taxes as shown in the Consolidated Statements of Earnings ($ in thousands): Three months ended March 31, 2016 2015 Earnings before income taxes $ 10,776 $ 16,236 Income taxes at statutory rate 3,772 5,683 Effect of: Dividends-received deduction (72 ) (104 ) Tax-exempt interest (639 ) (724 ) Other 8 228 Provision for income taxes as shown on the Consolidated Statements of Earnings $ 3,068 $ 5,082 GAAP effective tax rate 28.5 % 31.3 % |
Additional Information (Tables)
Additional Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | We made the following payments that we do not separately disclose in the Consolidated Statements of Cash Flows ($ in thousands): Three months ended March 31, 2016 2015 Income tax payments $ 0 $ 750 Interest payments on debt 6,875 6,875 Interest payments on capital leases 20 22 |
Insurance Reserves (Tables)
Insurance Reserves (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Insurance [Abstract] | |
Liability for unpaid losses and LAE | The following table provides an analysis of changes in the liability for unpaid losses and LAE on a GAAP basis ($ in thousands): Three months ended March 31, 2016 2015 Balance at Beginning of Period Unpaid losses on known claims $ 237,660 $ 235,037 IBNR losses 290,097 277,482 LAE 142,207 155,658 Total unpaid losses and LAE 669,965 668,177 Reinsurance recoverables (14,694 ) (14,370 ) Unpaid losses and LAE, net of reinsurance recoverables 655,271 653,808 Current Activity Loss and LAE incurred: Current accident year 271,167 257,785 Prior accident years (5,883 ) (2,142 ) Total loss and LAE incurred 265,284 255,643 Loss and LAE payments: Current accident year (89,444 ) (81,907 ) Prior accident years (175,360 ) (165,770 ) Total loss and LAE payments (264,804 ) (247,677 ) Balance at End of Period Unpaid losses and LAE, net of reinsurance recoverables 655,751 661,773 Add back reinsurance recoverables 17,724 13,982 Total unpaid losses and LAE 673,475 675,755 Unpaid losses on known claims 236,701 241,483 IBNR losses 295,281 278,863 LAE 141,493 155,409 Total unpaid losses and LAE $ 673,475 $ 675,755 |
Accumulated Other Comprehensi27
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Other Comprehensive Income Before and After Tax | The components of other comprehensive income before and after tax are as follows ($ in thousands): Three months ended March 31, 2016 2015 Before Tax Income Tax Net Before Tax Income Tax Net Accumulated change in post-retirement benefit liability, beginning of period $ 944 $ (331 ) $ 614 $ 174 $ (61 ) $ 113 Effect on other comprehensive income (11 ) 4 (7 ) 16 (6 ) 11 Accumulated change in post-retirement benefit liability, end of period 934 (327 ) 607 190 (66 ) 123 Accumulated unrealized gains on investments, net, beginning of period 11,072 (3,875 ) 7,197 35,972 (12,590 ) 23,382 Other comprehensive income before reclassification 15,459 (5,411 ) 10,048 8,416 (2,946 ) 5,470 Reclassification adjustment for other-than-temporary impairments included in net income 118 (41 ) 76 381 (134 ) 248 Reclassification adjustment for realized gains included in net income (257 ) 90 (167 ) (1,551 ) 543 (1,008 ) Effect on other comprehensive income 15,320 (5,362 ) 9,958 7,247 (2,536 ) 4,711 Accumulated unrealized gains on investments, net, end of period 26,392 (9,237 ) 17,155 43,218 (15,126 ) 28,092 Accumulated other comprehensive income, beginning of period 12,016 (4,206 ) 7,811 36,145 (12,651 ) 23,494 Change in post-retirement benefit liability (11 ) 4 (7 ) 16 (6 ) 11 Change in unrealized gains on investments, net 15,320 (5,362 ) 9,958 7,247 (2,536 ) 4,711 Effect on other comprehensive income 15,309 (5,358 ) 9,951 7,263 (2,542 ) 4,721 Accumulated other comprehensive income, end of period $ 27,326 $ (9,564 ) $ 17,762 $ 43,408 $ (15,193 ) $ 28,216 |
Significant Reporting And Acc28
Significant Reporting And Accounting Policies (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($)state | Mar. 31, 2015USD ($) | |
Accounting Policies [Abstract] | ||
Number of states licensed to write insurance | state | 50 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized holding gains on securities arising during period, net of tax | $ 10,048 | $ 5,470 |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized holding gains on securities arising during period, net of tax | $ 7,300 |
Significant Reporting And Acc29
Significant Reporting And Accounting Policies - Effect on Line Items of Recently Adopted Accounting Policies (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Other assets | $ 16,500 | $ 10,306 |
Total assets | 2,427,516 | 2,385,135 |
Long-term debt | 273,434 | 273,383 |
Total liabilities | 1,736,020 | 1,697,540 |
Total liabilities and shareholders' equity | $ 2,427,516 | 2,385,135 |
As Reported | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Other assets | 11,900 | |
Total assets | 2,386,800 | |
Long-term debt | 275,000 | |
Total liabilities | 1,699,200 | |
Total liabilities and shareholders' equity | 2,386,800 | |
Difference | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Other assets | (1,600) | |
Total assets | (1,600) | |
Long-term debt | (1,600) | |
Total liabilities | (1,600) | |
Total liabilities and shareholders' equity | $ (1,600) |
Computation of Net Earnings p30
Computation of Net Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Computation of net earnings per share | |||
Net earnings | $ 7,708 | $ 11,154 | $ 40,327 |
Average basic shares outstanding (shares) | 11,036 | 11,427 | |
Basic net earnings per share (usd per share) | $ 0.70 | $ 0.98 | |
Average diluted shares outstanding (shares) | 11,134 | 11,551 | |
Diluted net earnings per share (usd per share) | $ 0.69 | $ 0.97 | |
Restricted Stock | |||
Computation of net earnings per share | |||
Dilutive shares (shares) | 21 | 11 | |
Performance Shares | |||
Computation of net earnings per share | |||
Dilutive shares (shares) | 77 | 113 |
Fair Value - Fair Value by Hier
Fair Value - Fair Value by Hierarchy (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | $ 1,497,501 | $ 1,476,053 |
Recurring basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Long-term debt | 288,600 | 281,600 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Cash and cash equivalents | 43,623 | 62,483 |
Long-term debt | 288,613 | 281,581 |
Fair Value | Fixed Maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 1,407,446 | 1,381,467 |
Fair Value | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 90,055 | 89,935 |
Fair Value | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 4,651 |
Fair Value | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Cash and cash equivalents | 43,623 | 62,483 |
Total cash and investments | $ 1,541,124 | $ 1,538,536 |
Percentage of total cash and investments (percent) | 100.00% | 100.00% |
Fair Value | Recurring basis | Fixed Maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | $ 1,407,446 | $ 1,381,467 |
Fair Value | Recurring basis | U.S. government | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 64,850 | 64,669 |
Fair Value | Recurring basis | State and Municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 486,212 | 479,666 |
Fair Value | Recurring basis | Mortgage- Backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 406,503 | 405,008 |
Fair Value | Recurring basis | Residential | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 340,971 | 334,784 |
Fair Value | Recurring basis | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 65,532 | 70,224 |
Fair Value | Recurring basis | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 50,522 | 54,018 |
Fair Value | Recurring basis | Corporates | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 399,359 | 378,105 |
Fair Value | Recurring basis | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 90,055 | 89,935 |
Fair Value | Recurring basis | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 4,651 |
Fair Value | Recurring basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Cash and cash equivalents | 43,623 | 62,483 |
Total cash and investments | $ 198,513 | $ 217,056 |
Percentage of total cash and investments (percent) | 12.90% | 14.10% |
Fair Value | Recurring basis | Level 1 | Fixed Maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | $ 64,836 | $ 64,638 |
Fair Value | Recurring basis | Level 1 | U.S. government | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 64,836 | 64,638 |
Fair Value | Recurring basis | Level 1 | State and Municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 0 |
Fair Value | Recurring basis | Level 1 | Mortgage- Backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 0 |
Fair Value | Recurring basis | Level 1 | Residential | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 0 |
Fair Value | Recurring basis | Level 1 | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 0 |
Fair Value | Recurring basis | Level 1 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 0 |
Fair Value | Recurring basis | Level 1 | Corporates | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 0 |
Fair Value | Recurring basis | Level 1 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 90,055 | 89,935 |
Fair Value | Recurring basis | Level 1 | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 0 |
Fair Value | Recurring basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Cash and cash equivalents | 0 | 0 |
Total cash and investments | $ 1,339,830 | $ 1,319,946 |
Percentage of total cash and investments (percent) | 86.90% | 85.80% |
Fair Value | Recurring basis | Level 2 | Fixed Maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | $ 1,339,830 | $ 1,315,295 |
Fair Value | Recurring basis | Level 2 | U.S. government | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 14 | 32 |
Fair Value | Recurring basis | Level 2 | State and Municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 486,212 | 479,656 |
Fair Value | Recurring basis | Level 2 | Mortgage- Backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 406,503 | 405,008 |
Fair Value | Recurring basis | Level 2 | Residential | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 340,971 | 334,784 |
Fair Value | Recurring basis | Level 2 | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 65,532 | 70,224 |
Fair Value | Recurring basis | Level 2 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 49,183 | 54,018 |
Fair Value | Recurring basis | Level 2 | Corporates | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 397,917 | 376,582 |
Fair Value | Recurring basis | Level 2 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 0 |
Fair Value | Recurring basis | Level 2 | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 4,651 |
Fair Value | Recurring basis | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Cash and cash equivalents | 0 | 0 |
Total cash and investments | $ 2,781 | $ 1,534 |
Percentage of total cash and investments (percent) | 0.20% | 0.10% |
Fair Value | Recurring basis | Level 3 | Fixed Maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | $ 2,781 | $ 1,534 |
Fair Value | Recurring basis | Level 3 | U.S. government | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 0 |
Fair Value | Recurring basis | Level 3 | State and Municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 10 |
Fair Value | Recurring basis | Level 3 | Mortgage- Backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 0 |
Fair Value | Recurring basis | Level 3 | Residential | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 0 |
Fair Value | Recurring basis | Level 3 | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 0 |
Fair Value | Recurring basis | Level 3 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 1,338 | 0 |
Fair Value | Recurring basis | Level 3 | Corporates | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 1,442 | 1,524 |
Fair Value | Recurring basis | Level 3 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 0 |
Fair Value | Recurring basis | Level 3 | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | $ 0 | $ 0 |
Fair Value - Level 3 Investment
Fair Value - Level 3 Investments (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($)Securitiessecurityprice | Mar. 31, 2015USD ($) | |
Level 3 reconciliation | ||
Balance at beginning of period | $ 1,534 | $ 3,285 |
Included in net earnings | 3 | (95) |
Included in other comprehensive income | 1 | (14) |
Settlements | (96) | (184) |
Transfers in | 1,338 | 10 |
Balance at end of period | $ 2,781 | 3,002 |
Number of prices provided by unaffiliated money managers (prices) | price | 1 | |
Available-for-sale Securities, Number of securities for which price could not be determined using observable marketable inputs | Securities | 1 | |
Level 3 | ||
Level 3 reconciliation | ||
Number of Positions (securities) | security | 4 | |
Level 3 | Non-Binding Broker Quotes | ||
Level 3 reconciliation | ||
Number of Positions (securities) | Securities | 3 | |
State and Municipal | ||
Level 3 reconciliation | ||
Balance at beginning of period | $ 10 | 0 |
Included in net earnings | 0 | 0 |
Included in other comprehensive income | 0 | 0 |
Settlements | (10) | 0 |
Transfers in | 0 | 10 |
Balance at end of period | 0 | 10 |
Corporates | ||
Level 3 reconciliation | ||
Balance at beginning of period | 1,524 | 3,134 |
Included in net earnings | 3 | (95) |
Included in other comprehensive income | 1 | (14) |
Settlements | (86) | (80) |
Transfers in | 0 | 0 |
Balance at end of period | 1,442 | 2,946 |
Asset-backed securities | ||
Level 3 reconciliation | ||
Balance at beginning of period | 0 | 150 |
Included in net earnings | 0 | 0 |
Included in other comprehensive income | 1 | 0 |
Settlements | 0 | (105) |
Transfers in | 1,338 | 0 |
Balance at end of period | $ 1,338 | $ 46 |
Fair Value - Fair Value of Fina
Fair Value - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities: | $ 1,497,501 | $ 1,476,053 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 43,623 | 62,483 |
Total cash and investments | 1,541,124 | 1,538,536 |
Long-term debt | 273,434 | 273,383 |
Carrying Value | Fixed Maturities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities: | 1,407,446 | 1,381,467 |
Carrying Value | Equity securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities: | 90,055 | 89,935 |
Carrying Value | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities: | 0 | 4,651 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 43,623 | 62,483 |
Total cash and investments | 1,541,124 | 1,538,536 |
Long-term debt | 288,613 | 281,581 |
Fair Value | Fixed Maturities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities: | 1,407,446 | 1,381,467 |
Fair Value | Equity securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities: | 90,055 | 89,935 |
Fair Value | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities: | $ 0 | $ 4,651 |
Investments - Textual (Details)
Investments - Textual (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from Sale of Available-for-sale Securities | $ 108,500 | $ 99,900 | |
Receivable for unsettled sales | 2,142 | $ 0 | |
Receivable for securities sold but not settled | 3,600 | ||
Gross realized gains | 1,300 | 2,100 | |
Gross realized losses | $ 1,000 | $ 600 |
Investments - Investments by ma
Investments - Investments by major category (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | |
Fixed Maturities | |||
Amortized Cost, Fixed Maturities | $ 1,392,299 | $ 1,381,510 | |
Fixed maturities, Fair Value | 1,407,446 | 1,381,467 | |
Equity Securities | |||
Equity securities, Amortized cost | 78,810 | 78,815 | |
Equity securities, Fair Value | 90,055 | 89,935 | |
Available-for-sale securities, Amortized Cost or Cost, Total | 1,471,109 | 1,464,981 | |
Available-for-sale securities, Gross Unrealized Gains | 31,962 | 23,640 | |
Available-for-sale securities, Gross Unrealized Losses | (5,570) | (12,568) | |
Available-for-sale securities, Fair Value | 1,497,501 | 1,476,053 | |
Available-for-sale securities, OTTI Recognized in Accumulated OCI | [1] | (2,414) | (2,495) |
Fixed Maturities | |||
Fixed Maturities | |||
Amortized Cost, Fixed Maturities | 1,392,299 | 1,381,510 | |
Fixed maturities, Gross Unrealized Gains | 20,718 | 12,521 | |
Fixed maturities, Gross Unrealized Losses | (5,570) | (12,564) | |
Fixed maturities, Fair Value | 1,407,446 | 1,381,467 | |
Fixed maturities, OTTI Recognized in Accumulated OCI | [1] | (2,414) | (2,495) |
U.S. government | |||
Fixed Maturities | |||
Amortized Cost, Fixed Maturities | 64,232 | 64,849 | |
Fixed maturities, Gross Unrealized Gains | 624 | 103 | |
Fixed maturities, Gross Unrealized Losses | (6) | (282) | |
Fixed maturities, Fair Value | 64,850 | 64,669 | |
Fixed maturities, OTTI Recognized in Accumulated OCI | [1] | 0 | 0 |
State and Municipal | |||
Fixed Maturities | |||
Amortized Cost, Fixed Maturities | 477,530 | 472,402 | |
Fixed maturities, Gross Unrealized Gains | 8,908 | 7,393 | |
Fixed maturities, Gross Unrealized Losses | (226) | (129) | |
Fixed maturities, Fair Value | 486,212 | 479,666 | |
Fixed maturities, OTTI Recognized in Accumulated OCI | [1] | (51) | (51) |
Mortgage- Backed Securities | |||
Fixed Maturities | |||
Amortized Cost, Fixed Maturities | 400,693 | 404,691 | |
Fixed maturities, Gross Unrealized Gains | 6,815 | 3,694 | |
Fixed maturities, Gross Unrealized Losses | (1,005) | (3,377) | |
Fixed maturities, Fair Value | 406,503 | 405,008 | |
Fixed maturities, OTTI Recognized in Accumulated OCI | [1] | (2,303) | (2,374) |
Residential | |||
Fixed Maturities | |||
Amortized Cost, Fixed Maturities | 334,746 | 333,554 | |
Fixed maturities, Gross Unrealized Gains | 6,652 | 3,678 | |
Fixed maturities, Gross Unrealized Losses | (427) | (2,448) | |
Fixed maturities, Fair Value | 340,971 | 334,784 | |
Fixed maturities, OTTI Recognized in Accumulated OCI | [1] | (2,303) | (2,374) |
Commercial | |||
Fixed Maturities | |||
Amortized Cost, Fixed Maturities | 65,947 | 71,137 | |
Fixed maturities, Gross Unrealized Gains | 163 | 16 | |
Fixed maturities, Gross Unrealized Losses | (578) | (929) | |
Fixed maturities, Fair Value | 65,532 | 70,224 | |
Fixed maturities, OTTI Recognized in Accumulated OCI | [1] | 0 | 0 |
Asset-backed securities | |||
Fixed Maturities | |||
Amortized Cost, Fixed Maturities | 50,475 | 54,106 | |
Fixed maturities, Gross Unrealized Gains | 114 | 50 | |
Fixed maturities, Gross Unrealized Losses | (67) | (138) | |
Fixed maturities, Fair Value | 50,522 | 54,018 | |
Fixed maturities, OTTI Recognized in Accumulated OCI | [1] | (8) | (8) |
Corporates | |||
Fixed Maturities | |||
Amortized Cost, Fixed Maturities | 399,369 | 385,462 | |
Fixed maturities, Gross Unrealized Gains | 4,258 | 1,281 | |
Fixed maturities, Gross Unrealized Losses | (4,267) | (8,638) | |
Fixed maturities, Fair Value | 399,359 | 378,105 | |
Fixed maturities, OTTI Recognized in Accumulated OCI | [1] | (51) | (61) |
Equity securities | |||
Equity Securities | |||
Equity securities, Amortized cost | 78,810 | 78,815 | |
Equity securities, Gross Unrealized Gains | 11,245 | 11,120 | |
Equity securities, Gross Unrealized Losses | 0 | 0 | |
Equity securities, Fair Value | 90,055 | 89,935 | |
Equity securities, OTTI Recognized in Accumulated OCI | [1] | 0 | 0 |
Short-term investments | |||
Equity Securities | |||
Equity securities, Amortized cost | 0 | 4,656 | |
Equity securities, Gross Unrealized Gains | 0 | 0 | |
Equity securities, Gross Unrealized Losses | 0 | (4) | |
Equity securities, Fair Value | 0 | 4,651 | |
Equity securities, OTTI Recognized in Accumulated OCI | [1] | $ 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 p
Investments - Continuous loss position investments (Details) | 3 Months Ended | |
Mar. 31, 2016USD ($)security | Dec. 31, 2015USD ($)security | |
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | security | 265 | 561 |
Maximum | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Percentage of book value (percent) | 95.00% | |
Minimum | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized loss amount | $ 100,000 | |
Less than 12 Months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | security | 149 | 469 |
Less than 12 Months, Fair Value | $ 185,638,000 | $ 532,654,000 |
Less than 12 Months, Gross Unrealized Losses | $ (3,361,000) | $ (9,440,000) |
Unrealized Losses as Percentage of Cost | 1.80% | 1.70% |
Less than 12 Months | Fixed Maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | security | 149 | 467 |
Less than 12 Months, Fair Value | $ 185,638,000 | $ 528,003,000 |
Less than 12 Months, Gross Unrealized Losses | $ (3,361,000) | $ (9,436,000) |
Unrealized Losses as Percentage of Cost | 1.80% | 1.80% |
Less than 12 Months | U.S. government | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | security | 1 | 18 |
Less than 12 Months, Fair Value | $ 3,894,000 | $ 36,024,000 |
Less than 12 Months, Gross Unrealized Losses | $ (3,000) | $ (241,000) |
Unrealized Losses as Percentage of Cost | 0.10% | 0.70% |
Less than 12 Months | State and Municipal | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | security | 22 | 27 |
Less than 12 Months, Fair Value | $ 47,615,000 | $ 54,680,000 |
Less than 12 Months, Gross Unrealized Losses | $ (226,000) | $ (129,000) |
Unrealized Losses as Percentage of Cost | 0.50% | 0.20% |
Less than 12 Months | Mortgage- Backed Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | security | 41 | 214 |
Less than 12 Months, Fair Value | $ 31,053,000 | $ 162,547,000 |
Less than 12 Months, Gross Unrealized Losses | $ (177,000) | $ (1,785,000) |
Unrealized Losses as Percentage of Cost | 0.60% | 1.10% |
Less than 12 Months | Residential | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | security | 35 | 205 |
Less than 12 Months, Fair Value | $ 13,838,000 | $ 133,814,000 |
Less than 12 Months, Gross Unrealized Losses | $ (50,000) | $ (1,436,000) |
Unrealized Losses as Percentage of Cost | 0.40% | 1.10% |
Less than 12 Months | Commercial | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | security | 6 | 9 |
Less than 12 Months, Fair Value | $ 17,216,000 | $ 28,733,000 |
Less than 12 Months, Gross Unrealized Losses | $ (126,000) | $ (349,000) |
Unrealized Losses as Percentage of Cost | 0.70% | 1.20% |
Less than 12 Months | Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | security | 19 | 36 |
Less than 12 Months, Fair Value | $ 18,395,000 | $ 35,313,000 |
Less than 12 Months, Gross Unrealized Losses | $ (61,000) | $ (132,000) |
Unrealized Losses as Percentage of Cost | 0.30% | 0.40% |
Less than 12 Months | Corporates | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | security | 66 | 172 |
Less than 12 Months, Fair Value | $ 84,680,000 | $ 239,440,000 |
Less than 12 Months, Gross Unrealized Losses | $ (2,895,000) | $ (7,149,000) |
Unrealized Losses as Percentage of Cost | 3.30% | 2.90% |
Less than 12 Months | Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | 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% |
Less than 12 Months | Short-term investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | security | 0 | 2 |
Less than 12 Months, Fair Value | $ 0 | $ 4,651,000 |
Less than 12 Months, Gross Unrealized Losses | $ 0 | $ (4,000) |
Unrealized Losses as Percentage of Cost | 0.00% | 0.10% |
12 Months or More | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | 116 | 92 |
Unrealized Losses as Percentage of Cost | 1.80% | 3.20% |
12 Months or More, Fair Value | $ 120,144,000 | $ 93,384,000 |
12 Months of More, Gross Unrealized Losses | $ (2,210,000) | $ (3,128,000) |
12 Months or More | Fixed Maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | 116 | 92 |
Unrealized Losses as Percentage of Cost | 1.80% | 3.20% |
12 Months or More, Fair Value | $ 120,144,000 | $ 93,384,000 |
12 Months of More, Gross Unrealized Losses | $ (2,210,000) | $ (3,128,000) |
12 Months or More | U.S. government | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | 3 | 4 |
Unrealized Losses as Percentage of Cost | 0.10% | 0.90% |
12 Months or More, Fair Value | $ 3,406,000 | $ 4,687,000 |
12 Months of More, Gross Unrealized Losses | $ (3,000) | $ (41,000) |
12 Months or More | State and Municipal | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | 0 | 0 |
Unrealized Losses as Percentage of Cost | 0.00% | 0.00% |
12 Months or More, Fair Value | $ 0 | $ 0 |
12 Months of More, Gross Unrealized Losses | $ 0 | $ 0 |
12 Months or More | Mortgage- Backed Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | 85 | 74 |
Unrealized Losses as Percentage of Cost | 1.00% | 2.10% |
12 Months or More, Fair Value | $ 82,009,000 | $ 73,170,000 |
12 Months of More, Gross Unrealized Losses | $ (828,000) | $ (1,592,000) |
12 Months or More | Residential | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | 74 | 64 |
Unrealized Losses as Percentage of Cost | 0.90% | 2.50% |
12 Months or More, Fair Value | $ 42,056,000 | $ 39,001,000 |
12 Months of More, Gross Unrealized Losses | $ (377,000) | $ (1,012,000) |
12 Months or More | Commercial | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | 11 | 10 |
Unrealized Losses as Percentage of Cost | 1.10% | 1.70% |
12 Months or More, Fair Value | $ 39,953,000 | $ 34,169,000 |
12 Months of More, Gross Unrealized Losses | $ (452,000) | $ (580,000) |
12 Months or More | Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | 3 | 2 |
Unrealized Losses as Percentage of Cost | 0.30% | 0.60% |
12 Months or More, Fair Value | $ 2,008,000 | $ 1,153,000 |
12 Months of More, Gross Unrealized Losses | $ (6,000) | $ (7,000) |
12 Months or More | Corporates | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | 25 | 12 |
Unrealized Losses as Percentage of Cost | 4.00% | 9.40% |
12 Months or More, Fair Value | $ 32,720,000 | $ 14,373,000 |
12 Months of More, Gross Unrealized Losses | $ (1,372,000) | $ (1,488,000) |
12 Months or More | Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | 0 | 0 |
Unrealized Losses as Percentage of Cost | 0.00% | 0.00% |
12 Months or More, Fair Value | $ 0 | $ 0 |
12 Months of More, Gross Unrealized Losses | $ 0 | $ 0 |
12 Months or More | Short-term investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | 0 | 0 |
Unrealized Losses as Percentage of Cost | 0.00% | 0.00% |
12 Months or More, Fair Value | $ 0 | $ 0 |
12 Months of More, Gross Unrealized Losses | $ 0 | $ 0 |
Investments - Summary of unreal
Investments - Summary of unrealized gains and losses (Details) - security | Mar. 31, 2016 | Dec. 31, 2015 |
Investments, Debt and Equity Securities [Abstract] | ||
Number of positions held with unrealized gains (positions) | 918 | 602 |
Number of positions held with unrealized losses (positions) | 265 | 561 |
Number of positions held that individually exceed unrealized gains of $500,000 (positions) | 2 | 2 |
Number of positions held that individually exceed unrealized losses of $500,000 (positions) | 0 | 0 |
Percentage of positions held with unrealized gains that were investment grade (percent) | 94.00% | 94.00% |
Percentage of positions held with unrealized losses that were investment grade (percent) | 83.00% | 89.00% |
Percentage of fair value held with unrealized gains that were investment grade (percent) | 94.00% | 95.00% |
Percentage of fair value held with unrealized losses that were investment grade (percent) | 84.00% | 88.00% |
Investments - Unrealized losses
Investments - Unrealized losses by age and severity (Details) $ in Thousands | Mar. 31, 2016USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value of Securities with Unrealized Losses | $ 305,782 | |
Total Gross Unrealized Losses | (5,570) | |
Three months or less | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value of Securities with Unrealized Losses | 71,462 | |
Total Gross Unrealized Losses | (341) | |
Four months through six months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value of Securities with Unrealized Losses | 41,617 | |
Total Gross Unrealized Losses | (572) | |
Seven months through nine months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value of Securities with Unrealized Losses | 27,755 | |
Total Gross Unrealized Losses | (1,578) | |
Ten months through twelve months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value of Securities with Unrealized Losses | 55,845 | |
Total Gross Unrealized Losses | (1,066) | |
Greater than twelve months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value of Securities with Unrealized Losses | 109,102 | |
Total Gross Unrealized Losses | (2,014) | |
Less Than 5% as a Percentage of Amortized Cost or Cost | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses | (2,502) | [1] |
Less Than 5% as a Percentage of Amortized Cost or Cost | Three months or less | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses | (341) | [1] |
Less Than 5% as a Percentage of Amortized Cost or Cost | Four months through six months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses | (319) | [1] |
Less Than 5% as a Percentage of Amortized Cost or Cost | Seven months through nine months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses | (272) | [1] |
Less Than 5% as a Percentage of Amortized Cost or Cost | Ten months through twelve months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses | (522) | [1] |
Less Than 5% as a Percentage of Amortized Cost or Cost | Greater than twelve months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses | (1,049) | [1] |
5% - 10% as a Percentage of Amortized Cost or Cost | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses | (1,136) | [1] |
5% - 10% as a Percentage of Amortized Cost or Cost | Three months or less | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses | 0 | [1] |
5% - 10% as a Percentage of Amortized Cost or Cost | Four months through six months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses | (253) | [1] |
5% - 10% as a Percentage of Amortized Cost or Cost | Seven months through nine months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses | (216) | [1] |
5% - 10% as a Percentage of Amortized Cost or Cost | Ten months through twelve months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses | (331) | [1] |
5% - 10% as a Percentage of Amortized Cost or Cost | Greater than twelve months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses | (336) | [1] |
Greater Than 10% as a Percentage of Amortized Cost or Cost | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses | (1,932) | [1] |
Greater Than 10% as a Percentage of Amortized Cost or Cost | Three months or less | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses | 0 | [1] |
Greater Than 10% as a Percentage of Amortized Cost or Cost | Four months through six months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses | 0 | [1] |
Greater Than 10% as a Percentage of Amortized Cost or Cost | Seven months through nine months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses | (1,090) | [1] |
Greater Than 10% as a Percentage of Amortized Cost or Cost | Ten months through twelve months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses | (213) | [1] |
Greater Than 10% as a Percentage of Amortized Cost or Cost | Greater than twelve months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses | $ (629) | [1] |
[1] | As a percentage of amortized cost or cost. |
Investments - Change in unreali
Investments - Change in unrealized gains and losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized holding gains (losses) on securities arising during the period, pre-tax | $ 15,459 | $ 8,416 |
Unrealized holding gains (losses) on securities arising during the period, tax effects | (5,411) | (2,946) |
Unrealized holding gains (losses) on securities arising during period, net of tax | 10,048 | 5,470 |
Realized gains on securities sold, pre-tax | (257) | (1,551) |
Realized gains on securities sold, tax effects | 90 | 543 |
Realized gains on securities sold, net of tax | (167) | (1,008) |
Impairment loss recognized in earnings, tax effects | (41) | (134) |
Impairment loss recognized in earnings | 76 | 248 |
Change in unrealized gains (losses) on marketable securities, net, pre-tax | 15,320 | 7,247 |
Change in unrealized gains (losses) on marketable securities, net, tax effects | (5,362) | (2,536) |
Change in unrealized gains (losses) on marketable securities, net, net of tax | 9,958 | 4,711 |
Fixed Maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized holding gains (losses) on securities arising during the period, pre-tax | 15,332 | 6,036 |
Realized gains on securities sold, pre-tax | (259) | (452) |
Impairment loss recognized in earnings, pre-tax | 118 | 381 |
Change in unrealized gains (losses) on marketable securities, net, pre-tax | 15,190 | 5,966 |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized holding gains (losses) on securities arising during the period, pre-tax | 125 | 2,380 |
Unrealized holding gains (losses) on securities arising during period, net of tax | 7,300 | |
Realized gains on securities sold, pre-tax | 0 | (1,098) |
Impairment loss recognized in earnings, pre-tax | 0 | 0 |
Change in unrealized gains (losses) on marketable securities, net, pre-tax | 125 | 1,282 |
Short-term investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized holding gains (losses) on securities arising during the period, pre-tax | 2 | 0 |
Realized gains on securities sold, pre-tax | 2 | 0 |
Impairment loss recognized in earnings, pre-tax | 0 | 0 |
Change in unrealized gains (losses) on marketable securities, net, pre-tax | $ 4 | $ 0 |
Investments - Credit losses rol
Investments - Credit losses rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Credit losses on fixed maturity securities | ||
Beginning balance | $ 683 | $ 852 |
Reductions for: Securities sold and paid down | (26) | (52) |
Ending balance | $ 658 | $ 799 |
Investments - Investments by co
Investments - Investments by contractual maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
One year or less, fair value | $ 70,699 | |
One year or less, amortized cost | 70,101 | |
After one year through five years, fair value | 592,942 | |
After one year through five years, amortized cost | 587,296 | |
After five years through ten years, fair value | 282,421 | |
After five years through ten years, amortized cost | 279,469 | |
After ten years, fair value | 4,359 | |
After ten years, amortized cost basis | 4,265 | |
Mortgage-backed, asset-backed and collateralized mortgage obligations, fair value | 457,025 | |
Mortgage-backed, asset-backed and collateralized mortgage obligations, amortized cost | 451,168 | |
Fair Value, Fixed maturities | 1,407,446 | $ 1,381,467 |
Amortized Cost, Fixed Maturities | 1,392,299 | $ 1,381,510 |
Securities with Unrealized Gains | ||
Schedule of Available-for-sale Securities [Line Items] | ||
One year or less, fair value | 66,163 | |
After one year through five years, fair value | 485,671 | |
After five years through ten years, fair value | 216,409 | |
After ten years, fair value | 4,359 | |
Mortgage-backed, asset-backed and collateralized mortgage obligations, fair value | 323,559 | |
Fair Value, Fixed maturities | 1,096,160 | |
Securities with Unrealized Losses | ||
Schedule of Available-for-sale Securities [Line Items] | ||
One year or less, fair value | 536 | |
After one year through five years, fair value | 107,271 | |
After five years through ten years, fair value | 64,508 | |
After ten years, fair value | 0 | |
Mortgage-backed, asset-backed and collateralized mortgage obligations, fair value | 133,466 | |
Fair Value, Fixed maturities | 305,782 | |
Securities with No Unrealized Gains or Losses | ||
Schedule of Available-for-sale Securities [Line Items] | ||
One year or less, fair value | 4,000 | |
After one year through five years, fair value | 0 | |
After five years through ten years, fair value | 1,504 | |
After ten years, fair value | 0 | |
Mortgage-backed, asset-backed and collateralized mortgage obligations, fair value | 0 | |
Fair Value, Fixed maturities | $ 5,504 |
Long-Term Debt - Long-term Debt
Long-Term Debt - Long-term Debt Less Unamortized Debt Issuance Costs (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2012 |
Debt Instrument [Line Items] | |||
Long-term debt less unamortized debt issuance costs | $ 273,434,000 | $ 273,383,000 | |
Senior Notes | Senior Notes Due 2022 | |||
Debt Instrument [Line Items] | |||
Principal | 275,000,000 | 275,000,000 | $ 275,000,000 |
Less unamortized debt issuance costs | 1,566,000 | 1,617,000 | |
Long-term debt less unamortized debt issuance costs | $ 273,434,000 | $ 273,383,000 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Aug. 31, 2014 | Sep. 30, 2012 | Mar. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||||
Long-term debt, fair value | $ 288,613,000 | $ 281,581,000 | ||
US Treasury Note | ||||
Debt Instrument [Line Items] | ||||
Term of note used (years) | 10 years | |||
Effective percentage (percent) | 1.77% | |||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Credit facility capacity | $ 50,000,000 | |||
Term of revolving credit facility (years) | 3 years | |||
Senior Notes Due 2022 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Principal | $ 275,000,000 | $ 275,000,000 | $ 275,000,000 | |
Coupon rate (percent) | 5.00% | |||
Capitalized debt issuance costs | $ 2,200,000 | |||
Long-term debt, fair value | $ 288,600,000 | |||
10-year U.S. Treasury note | Senior Notes Due 2022 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Basis points | 2.35% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Federal statutory income tax rate (percent) | 35.00% | |
Income tax reconciliation | ||
Earnings before income taxes | $ 10,776 | $ 16,236 |
Income taxes at statutory rate | 3,772 | 5,683 |
Dividends-received deduction | (72) | (104) |
Tax-exempt interest | (639) | (724) |
Other | 8 | 228 |
Provision for income taxes as shown on the Consolidated Statements of Earnings | $ 3,068 | $ 5,082 |
GAAP effective tax rate (percent) | 28.50% | 31.30% |
Additional Information (Details
Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |||
Income tax payments | $ 0 | $ 750 | |
Interest payments on debt | 6,875 | 6,875 | |
Interest payments on capital leases | 20 | $ 22 | |
Negative cash book balances | $ 47,000 | $ 41,400 |
Insurance Reserves (Details)
Insurance Reserves (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Unpaid losses on known claims, balance at beginning of period | $ 237,660 | $ 235,037 |
IBNR losses, balance at beginning of period | 290,097 | 277,482 |
LAE, balance at beginning of period | 142,207 | 155,658 |
Total unpaid losses and LAE, balance at beginning of period | 669,965 | 668,177 |
Reinsurance recoverables, balance at beginning of period | (14,694) | (14,370) |
Unpaid losses and LAE, net of reinsurance recoverables, balance at beginning of period | 655,271 | 653,808 |
Loss and LAE incurred, current accident year | 271,167 | 257,785 |
Loss and LAE incurred, Prior accident years | (5,883) | (2,142) |
Total loss and LAE incurred | 265,284 | 255,643 |
Loss and LAE payments, current accident year | (89,444) | (81,907) |
Loss and LAE payments, prior accident years | (175,360) | (165,770) |
Total loss and LAE payments | (264,804) | (247,677) |
Unpaid losses and LAE, net of reinsurance recoverables, balance at end of period | 655,751 | 661,773 |
Add back reinsurance recoverables, balance at end of period | 17,724 | 13,982 |
Total unpaid losses and LAE, balance at end of period | 673,475 | 675,755 |
Unpaid losses on known claims, balance at end of period | 236,701 | 241,483 |
IBNR losses, balance at end of period | 295,281 | 278,863 |
LAE, balance at end of period | $ 141,493 | $ 155,409 |
Accumulated Other Comprehensi47
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Before Tax [Abstract] | ||
Accumulated other comprehensive income, beginning of period | $ 12,016 | $ 36,145 |
Effect on other comprehensive income | 15,309 | 7,263 |
Accumulated other comprehensive income, end of period | 27,326 | 43,408 |
Income Tax [Abstract] | ||
Accumulated other comprehensive income, beginning of period | (4,206) | (12,651) |
Effect on other comprehensive income | (5,358) | (2,542) |
Accumulated other comprehensive income, end of period | (9,564) | (15,193) |
Net [Abstract] | ||
Accumulated other comprehensive income, beginning of period | 7,811 | 23,494 |
Other comprehensive income, net of tax | 9,951 | 4,721 |
Accumulated other comprehensive income, end of period | 17,762 | 28,216 |
Accumulated Change Post-retirement Benefit Liability | ||
Before Tax [Abstract] | ||
Accumulated other comprehensive income, beginning of period | 944 | 174 |
Effect on other comprehensive income | (11) | 16 |
Accumulated other comprehensive income, end of period | 934 | 190 |
Income Tax [Abstract] | ||
Accumulated other comprehensive income, beginning of period | (331) | (61) |
Effect on other comprehensive income | 4 | (6) |
Accumulated other comprehensive income, end of period | (327) | (66) |
Net [Abstract] | ||
Accumulated other comprehensive income, beginning of period | 614 | 113 |
Other comprehensive income, net of tax | (7) | 11 |
Accumulated other comprehensive income, end of period | 607 | 123 |
Accumulated Unrealized Gains on Investments, Net and Other-than-Temporary Impairments | ||
Before Tax [Abstract] | ||
Accumulated other comprehensive income, beginning of period | 11,072 | 35,972 |
Effect on other comprehensive income | 15,320 | 7,247 |
Other comprehensive (loss) income before reclassification | 15,459 | 8,416 |
Accumulated other comprehensive income, end of period | 26,392 | 43,218 |
Income Tax [Abstract] | ||
Accumulated other comprehensive income, beginning of period | (3,875) | (12,590) |
Other comprehensive (loss) income before reclassification | (5,411) | (2,946) |
Effect on other comprehensive income | (5,362) | (2,536) |
Accumulated other comprehensive income, end of period | (9,237) | (15,126) |
Net [Abstract] | ||
Accumulated other comprehensive income, beginning of period | 7,197 | 23,382 |
Other comprehensive (loss) income before reclassification | 10,048 | 5,470 |
Other comprehensive income, net of tax | 9,958 | 4,711 |
Accumulated other comprehensive income, end of period | 17,155 | 28,092 |
Reclassification Adjustment for Other-than-Temporary Impairments | ||
Before Tax [Abstract] | ||
Reclassicification adjustment | 118 | 381 |
Income Tax [Abstract] | ||
Reclassicification adjustment | (41) | (134) |
Net [Abstract] | ||
Reclassicification adjustment | 76 | 248 |
Accumulated Unrealized Gains on Investments, Net | ||
Before Tax [Abstract] | ||
Reclassicification adjustment | (257) | (1,551) |
Income Tax [Abstract] | ||
Reclassicification adjustment | 90 | 543 |
Net [Abstract] | ||
Reclassicification adjustment | $ (167) | $ (1,008) |