Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 09, 2018 | Jun. 30, 2017 | |
Document Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
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 | 10,935,412 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1,007,156,859 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues: | |||
Earned premium | $ 1,371,336,000 | $ 1,391,664,000 | $ 1,346,564,000 |
Earned premium, percent change | (1.50%) | 3.30% | |
Installment and other fee income | $ 105,764,000 | $ 107,361,000 | 96,753,000 |
Installment and other fee income, percent change | (1.50%) | 11.00% | |
Net investment income | $ 37,262,000 | $ 35,537,000 | 36,800,000 |
Net investment income, percent change | 4.90% | (3.40%) | |
Net realized gains on investments | $ 2,220,000 | $ 3,145,000 | 2,809,000 |
Net realized gains on investments, percent change | (29.40%) | 12.00% | |
Other income | $ 1,404,000 | $ 1,000,000 | 1,106,000 |
Other income, percent change | 40.40% | (9.60%) | |
Total revenues | $ 1,517,987,000 | $ 1,538,706,000 | 1,484,032,000 |
Total revenues, percent change | (1.30%) | 3.70% | |
Costs and Expenses: | |||
Losses and loss adjustment expenses | $ 1,053,697,000 | $ 1,096,755,000 | 1,036,001,000 |
Losses and loss adjustment expense, percent change | (3.90%) | 5.90% | |
Commissions and other underwriting expenses | $ 357,281,000 | $ 356,148,000 | 348,219,000 |
Commissions and other underwriting expenses, percent change | 0.30% | 2.30% | |
Interest expense | $ 14,043,000 | $ 14,037,000 | 14,029,000 |
Interest expense, percent change | 0.00% | 0.10% | |
Corporate general and administrative expenses | $ 9,769,000 | $ 7,899,000 | 7,655,000 |
Corporate general and administrative expenses, percent change | 23.70% | 3.20% | |
Other expenses | $ 2,470,000 | $ 1,736,000 | 3,296,000 |
Other expenses, percent change | 42.30% | (47.30%) | |
Total costs and expenses | $ 1,437,260,000 | $ 1,476,575,000 | 1,409,200,000 |
Total costs and expenses, percent change | (2.70%) | 4.80% | |
Earnings before income taxes | $ 80,727,000 | $ 62,132,000 | 74,832,000 |
Earnings before income taxes, percent change | 29.90% | (17.00%) | |
Provision for income taxes | $ 35,343,000 | $ 19,047,000 | 23,351,000 |
Provision for income taxes, percent change | 85.60% | (18.40%) | |
Net Earnings | $ 45,384,000 | $ 43,085,000 | $ 51,481,000 |
Net Earnings, percent change | 5.30% | (16.30%) | |
Net Earnings per Common Share: | |||
Basic earnings per share (usd per share) | $ 4.13 | $ 3.91 | $ 4.54 |
Basic earnings per share, percent change | 5.60% | (13.90%) | |
Diluted earnings per share (usd per share) | $ 4.10 | $ 3.88 | $ 4.51 |
Diluted earnings per share, percent change | 5.70% | (14.00%) | |
Average Number of Common Shares: | |||
Basic average number of common shares | 10,984 | 11,018 | 11,334 |
Basic average number of common shares, percent change | (0.30%) | (2.80%) | |
Diluted average number of common shares | 11,067 | 11,101 | 11,417 |
Diluted average number of common shares, percent change | (0.30%) | (2.80%) | |
Cash Dividends per Common Share (usd per share) | $ 2.32 | $ 2.08 | $ 1.72 |
Cash Dividends per Common Share, percent change | 11.50% | 20.90% | |
Net realized gains before impairment losses | $ 5,343,000 | $ 3,519,000 | $ 4,102,000 |
Net realized gains before impairment losses, percent change | 51.80% | (14.20%) | |
Total other-than-temporary impairment (OTTI) losses | $ (2,912,000) | $ (375,000) | (1,294,000) |
Total other-than-temporary impairment (OTTI) losses, percent change | 677.50% | (71.10%) | |
Non-credit portion in other comprehensive income | $ 88,000 | $ 0 | 0 |
OTTI losses reclassified from other comprehensive income | (299,000) | $ 0 | 0 |
OTTI losses reclassified from other comprehensive income, percent change | 0.00% | ||
Net impairment losses recognized in earnings | $ (3,123,000) | $ (375,000) | $ (1,294,000) |
Net impairment losses recognized in earnings, percent change | 733.80% | (71.10%) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 45,384 | $ 43,085 | $ 51,481 |
Other comprehensive income before tax: | |||
Net change in post-retirement benefit liability | (204) | 88 | 771 |
Unrealized gains (losses) on investments: | |||
Unrealized holding gains (losses) arising during the period | 19,509 | 3,205 | (22,091) |
Less: Reclassification adjustments for gains included in net earnings | (2,220) | (3,145) | (2,809) |
Unrealized gains (losses) on investments, net | 17,288 | 61 | (24,900) |
Other comprehensive income (loss), before tax | 17,085 | 149 | (24,129) |
Income tax (expense) benefit related to components of other comprehensive income | 5,236 | 52 | (8,445) |
Other comprehensive income (loss), net of tax | 11,848 | 97 | (15,684) |
Comprehensive income | $ 57,232 | $ 43,182 | $ 35,797 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Investments: | ||
Fixed maturities – at fair value (amortized cost $1,439,878 and $1,392,660) | $ 1,441,107 | $ 1,390,167 |
Equity securities – at fair value (cost $68,812 and $77,013) | 96,004 | 90,640 |
Short-term investments – at fair value (amortized cost $2,541 and $2,909) | 2,541 | 2,907 |
Total investments | 1,539,653 | 1,483,714 |
Cash and cash equivalents | 107,589 | 92,800 |
Accrued investment income | 13,079 | 12,485 |
Agents’ balances and premium receivable, net of allowances for doubtful accounts of $15,262 and $14,207 | 508,078 | 495,157 |
Property and equipment, net of accumulated depreciation of $84,776 and $70,559 | 82,453 | 96,166 |
Prepaid reinsurance premium | 1,032 | 3,410 |
Recoverables from reinsurers (includes $1,269 and $121 on paid losses and LAE) | 30,340 | 17,251 |
Deferred policy acquisition costs | 88,300 | 91,136 |
Current and deferred income taxes | 9,355 | 21,635 |
Receivable for securities sold | 1,700 | 795 |
Other assets | 16,557 | 12,777 |
Goodwill | 75,275 | 75,275 |
Total assets | 2,473,411 | 2,402,601 |
Liabilities: | ||
Unpaid losses and loss adjustment expenses | 715,098 | 685,455 |
Unearned premium | 627,575 | 614,347 |
Long-term debt (fair value $290,824 and $278,726) | 273,809 | 273,591 |
Commissions payable | 16,743 | 16,176 |
Payable for securities purchased | 5,615 | 13,922 |
Other liabilities | 114,289 | 99,924 |
Total liabilities | 1,753,130 | 1,703,414 |
Commitments and contingencies (See Note 14) | ||
Shareholders’ equity: | ||
Common stock, no par value (50,000,000 shares authorized; 21,867,436 and 21,809,954 shares issued) | 21,888 | 21,829 |
Additional paid-in capital | 383,567 | 378,745 |
Retained earnings | 797,546 | 777,695 |
Accumulated other comprehensive income, net of tax | 19,756 | 7,907 |
Treasury stock, at cost (10,932,539 and 10,766,211 shares) | (502,475) | (486,990) |
Total shareholders’ equity | 720,281 | 699,187 |
Total liabilities and shareholders’ equity | $ 2,473,411 | $ 2,402,601 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, amortized costs | $ 1,439,878 | $ 1,392,660 |
Equity securities, cost | 68,812 | 77,013 |
Short-term investments, cost | 2,541 | 2,909 |
Agents' balances and premium receivable, allowance for doubtful accounts | 15,262 | 14,207 |
Property and equipment, accumulated depreciation | 84,776 | 70,559 |
Recoverable from reinsurers, paid losses and loss adjustment expenses | 1,269 | 121 |
Long-term debt | $ 290,824 | $ 278,726 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 21,867,436 | 21,809,954 |
Treasury stock, shares | 10,932,539 | 10,766,211 |
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 | 51,481 | 0 | 0 | 51,481 | 0 | 0 |
Net change in post-retirement benefit liability | 501 | 0 | 0 | 0 | 501 | 0 |
Change in unrealized gain on investments | (16,795) | 0 | 0 | 0 | (16,795) | 0 |
Change in non-credit component of impairment losses on fixed maturities | 610 | 0 | 0 | 0 | 610 | 0 |
Comprehensive income | 35,797 | |||||
Dividends paid to common shareholders | (19,528) | 0 | 0 | (19,528) | 0 | 0 |
Shares issued and share-based compensation expense, including tax benefit | 3,706 | 49 | 3,658 | 0 | 0 | 0 |
Acquisition of treasury stock | (30,040) | 0 | 0 | 0 | 0 | (30,040) |
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 | 43,085 | 0 | 0 | 43,085 | 0 | 0 |
Net change in post-retirement benefit liability | 57 | 0 | 0 | 0 | 57 | 0 |
Change in unrealized gain on investments | (238) | 0 | 0 | 0 | (238) | 0 |
Change in non-credit component of impairment losses on fixed maturities | 277 | 0 | 0 | 0 | 277 | 0 |
Comprehensive income | 43,182 | |||||
Dividends paid to common shareholders | (22,993) | 0 | 0 | (22,993) | 0 | 0 |
Shares issued and share-based compensation expense, including tax benefit | 2,755 | 35 | 2,720 | 0 | 0 | 0 |
Acquisition of treasury stock | (11,352) | 0 | 0 | 0 | 0 | (11,352) |
Ending Balance at Dec. 31, 2016 | 699,187 | 21,829 | 378,745 | 777,695 | 7,907 | (486,990) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 45,384 | 0 | 0 | 45,384 | 0 | 0 |
Net change in post-retirement benefit liability | (133) | 0 | 0 | 0 | (133) | 0 |
Change in unrealized gain on investments | 11,653 | 0 | 0 | 0 | 11,653 | 0 |
Change in non-credit component of impairment losses on fixed maturities | 327 | 0 | 0 | 0 | 327 | 0 |
Comprehensive income | 57,232 | |||||
Dividends paid to common shareholders | (25,533) | 0 | 0 | (25,533) | 0 | 0 |
Shares issued and share-based compensation expense, including tax benefit | 4,880 | 59 | 4,822 | 0 | 0 | 0 |
Acquisition of treasury stock | (15,485) | 0 | 0 | 0 | 0 | (15,485) |
Ending Balance at Dec. 31, 2017 | $ 720,281 | $ 21,888 | $ 383,567 | $ 797,546 | $ 19,756 | $ (502,475) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Activities: | |||
Net earnings | $ 45,384 | $ 43,085 | $ 51,481 |
Adjustments: | |||
Depreciation | 16,274 | 14,642 | 12,299 |
Amortization | 21,454 | 20,401 | 22,411 |
Net realized gains on investments | (2,220) | (3,145) | (2,809) |
Loss on disposal of property and equipment | 49 | 566 | 1,174 |
Share-based compensation expense | 4,596 | 2,342 | 3,149 |
Excess tax benefits from share-based payment arrangements | 0 | 157 | 298 |
Activity related to rabbi trust | 228 | 77 | (49) |
Change in accrued investment income | (594) | (240) | 732 |
Change in agents’ balances and premium receivable | (12,920) | 16,385 | (27,904) |
Change in reinsurance receivables | (10,711) | (220) | (1,101) |
Change in deferred policy acquisition costs | 2,836 | 2,021 | (2,728) |
Change in other assets | 3,878 | 9,797 | (6,200) |
Change in unpaid losses and loss adjustment expenses | 29,644 | 15,490 | 1,787 |
Change in unearned premium | 13,228 | (2,301) | 27,389 |
Change in other liabilities | 14,836 | (13,678) | (7,122) |
Net cash provided by operating activities | 125,961 | 105,380 | 72,805 |
Investing Activities: | |||
Purchases of fixed maturities | (490,728) | (479,050) | (523,502) |
Purchases of equity securities | (1,900) | (7,591) | (7,000) |
Purchases of short-term investments | (3,019) | (9,882) | (8,413) |
Purchases of property and equipment | (4,564) | (21,668) | (47,300) |
Maturities and redemptions of fixed maturities | 218,595 | 163,755 | 198,050 |
Maturities and redemptions of short-term investments | 925 | 2,270 | 1,285 |
Proceeds from sale of fixed maturities | 192,408 | 290,866 | 329,688 |
Proceeds from sale of equity securities | 16,010 | 12,185 | 8,489 |
Proceeds from sale of short-term investments | 2,400 | 9,258 | 3,086 |
Proceeds from sale of property and equipment | 25 | 2 | 0 |
Net cash used in investing activities | (69,849) | (39,855) | (45,617) |
Financing Activities: | |||
Proceeds from stock options exercised and employee stock purchases | 285 | 256 | 259 |
Principal payments under capital lease obligations | (540) | (517) | (497) |
Acquisition of treasury stock | (15,535) | (11,953) | (29,481) |
Dividends paid to shareholders | (25,533) | (22,993) | (19,528) |
Net cash used in financing activities | (41,323) | (35,208) | (49,246) |
Net increase (decrease) in cash and cash equivalents | 14,789 | 30,317 | (22,058) |
Cash and cash equivalents at beginning of period | 92,800 | 62,483 | 84,541 |
Cash and cash equivalents at end of period | $ 107,589 | $ 92,800 | $ 62,483 |
Significant Reporting and Accou
Significant Reporting and Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Significant Reporting and Accounting Policies | Significant Reporting and Accounting Policies Nature of Operations We write personal auto insurance with a concentration on nonstandard auto insurance, commercial auto insurance and classic collector auto insurance. Personal auto insurance accounts for 87% of our total gross written premium and we primarily write it in four states. We wrote approximately 53% of our personal auto gross written premium in the state of California during 2017 . Basis of Consolidation and Reporting The accompanying consolidated financial statements include our accounts and those of our subsidiaries. These financial statements reflect certain adjustments necessary for a fair presentation of our results of operations and financial position. Such adjustments consist of normal, recurring accruals recorded to accurately match expenses with their related revenue streams and the elimination of all significant intercompany transactions and balances. We have evaluated events that occurred after December 31, 2017 , for recognition or disclosure in our financial statements and the notes to the financial statements. Schedules may not foot due to rounding. Estimates The preparation of the financial statements in conformity with generally accepted accounting principles of the United States requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Changes in circumstances could cause actual results to differ materially from those estimates. Investments We consider all fixed maturity and equity securities “available for sale” and report them at fair value with net unrealized gains or losses reported after-tax (net of any valuation allowance) as a component of accumulated other comprehensive income within shareholders' equity. We base the fair values of investments on prices quoted in the most active market for each security. If quoted prices are not available, we estimate fair value based on the fair value of comparable securities, discounted cash flow models or similar methods. We treat premium and discounts on mortgage-backed securities (MBS) and asset-backed securities (ABS) as a yield adjustment over the estimated life of the securities, adjusted for anticipated prepayments, using the interest method. We base prepayment assumptions on data from widely accepted third party data sources or internal estimates. We review the amortized cost and effective yield of the security periodically and adjust it to reflect actual prepayments and changes in expectations. For high credit quality MBS and ABS (those rated AA or above at the time of purchase), the adjustments to amortized cost are recorded as a charge or credit to net investment income in accordance with the retrospective method. For MBS and ABS rated below AA, we adjust the yield prospectively for any changes in estimated cash flows. Gains or losses on securities are determined on the specific identification basis. When we consider impairment in the value of a specific investment other-than-temporary (OTTI), the cost basis of that investment is reduced. For fixed maturity securities that are OTTI, we assess our intent to sell and the likelihood that we will be required to sell the security before recovery of our amortized cost. If a fixed maturity security is considered OTTI, but we do not intend to and are not more than likely to be required to sell the security prior to its recovery to amortized cost, the amount of the impairment is separated into a credit loss component and the amount due to all other factors. The excess of the amortized cost over the present value of the expected cash flows determines the credit loss component of an impairment charge on a fixed maturity security. The present value is determined using the best estimate of cash flows discounted at (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. Securities having a fair value of approximately $19.8 million at December 31, 2017 , were on deposit as required by regulatory authorities. Cash and Cash Equivalents We consider liquid investments having original maturities of three months or less when purchased to be cash equivalents for purposes of the financial statements. Reinsurance Our insurance subsidiaries cede insurance to other companies. To the extent that any reinsuring companies are unable to meet obligations under agreements covering reinsurance ceded, our insurance subsidiaries would remain liable. We estimate amounts recoverable from reinsurers in a manner consistent with the claim liability associated with the reinsured policies. Our insurance subsidiaries report as assets (i) the estimated reinsurance recoverable on unpaid losses; and (ii) amounts paid to reinsurers applicable to the unexpired terms of policies in force. Advertising Advertising costs are charged to expense as incurred. Total advertising costs were $11.1 million , $9.7 million and $9.1 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Deferred Policy Acquisition Costs (DPAC) Policy acquisition costs (principally commissions, premium taxes and other marketing and underwriting expenses) related to the successful production of premium writings are deferred and charged against income ratably over the terms of the related policies. The method followed in computing DPAC limits the amount of such costs to their estimated realizable value without any consideration for anticipated investment income. Each quarter, we evaluate the recoverability of these costs. The DPAC amortization expense recognized in the Consolidated Statements of Earnings during 2017 , 2016 and 2015 was $200.7 million , $207.1 million and $203.7 million , respectively. Goodwill In accordance with the Goodwill topic of the FASB Accounting Standards Codification (FASC), we perform impairment test procedures for goodwill on an annual basis. These procedures require us to calculate the fair value of goodwill, compare the result to our carrying value and record the amount of any shortfall as an impairment charge. We performed this test as of October 1, 2017 , using a variety of methods, including estimates of future discounted cash flows and comparisons of our market value to that of our major competitors. Our cash flow projections rely on assumptions that are subject to uncertainty, including premium growth, loss and loss adjustment expense ratios, interest rates and capital requirements. The October 1, 2017 , test results indicated that the fair value of our goodwill exceeded our carrying value and therefore no impairment charge was required at that date. Additionally, there was no indication of impairment at December 31, 2017 . Unpaid Losses and Loss Adjustment Expenses (LAE) The net liabilities stated for unpaid claims and for expenses of investigation and adjustment of unpaid claims are based upon (i) the accumulation of case estimates for losses reported prior to the close of the accounting period on direct business written; (ii) estimates received from ceding reinsurers and insurance pools and associations; (iii) estimates of unreported losses based on past experience; (iv) estimates based on experience of expenses for investigating and adjusting claims; and (v) the current state of the law and coverage litigation. These liabilities are subject to the impact of changes in claim amounts and frequency and other factors. We have not reduced liabilities for unpaid losses and LAE for reinsurance recoverables; such recoverables are recorded separately as assets. Changes in estimates of the liabilities for losses and LAE are reflected in the Consolidated Statements of Earnings in the period in which determined. In spite of the variability inherent in such estimates, we believe that the liabilities for unpaid losses and LAE are adequate. Premium and Receivables We earn insurance premium written over the terms of the policies on a pro rata basis. Unearned premium represents that portion of premium written which is applicable to the unexpired terms of policies in force. On reinsurance assumed from other insurance companies or written through various underwriting organizations, we base unearned premium on reports received from such companies and organizations. We provide insurance and related services to individuals and small commercial accounts throughout the United States and offer a variety of payment plans. We establish an allowance for doubtful accounts based on the relationship, on a policy basis, between receivables and unearned premium, or an aging analysis of past due balances. We charge off premium due from insureds if not collected within 90 days of the policies' expiration or cancellation dates. However, even after we charge off premium, attempts to collect the premium continue. Income Taxes We file a consolidated federal income tax return, which includes all 80% and greater owned U.S. subsidiaries. We and our 80% and greater owned subsidiaries are parties to a tax allocation agreement, which designates how members of the tax group share tax payments. In general, each subsidiary agrees to pay us taxes computed on a separate company taxable income basis. We agree to pay each subsidiary for the tax benefit, if any, of net losses used by other members of the consolidated group. We calculate deferred income taxes using the “asset and liability method.” Under this method, deferred income tax assets and liabilities are determined based on differences between financial reporting and tax basis and are measured using enacted tax rates. We recognize deferred tax assets if it is more likely than not that a benefit will be realized. We aggregate current and deferred tax assets and liabilities on the Consolidated Balance Sheets. Property and Equipment We report property and equipment balances at cost less accumulated depreciation. Property and equipment, which consists of land, buildings, leasehold improvements, computer equipment, capitalized software and furniture and fixtures, consisted of the following balances as of December 31, 2017 ($ in millions): Gross Asset Accumulated Depreciation Net Asset Real estate related $ 69.8 $ (9.6 ) $ 60.2 Computer equipment & software 82.9 (66.9 ) 16.0 Furniture & fixtures 14.5 (8.2 ) 6.3 Total $ 167.2 $ (84.8 ) $ 82.5 We recognized $1.5 million , net of accumulated depreciation of $1.6 million , of equipment held under capital leases in other assets on the Consolidated Balance Sheets with the related lease obligations recorded in other liabilities. We compute depreciation over the estimated useful lives of the assets using the straight-line method. Property and equipment is a separate line item on the Consolidated Balance Sheets and we allocate the related expenses, including amortization of assets recorded under capital leases, to one or more of the following line items on the Consolidated Statements of Earnings depending on the asset: "Losses and loss adjustment expenses," "Commissions and other underwriting expenses," "Corporate general and administrative expenses" or "Other expenses." Benefit Plans We provide retirement benefits to qualified employees and healthcare and life insurance benefits to eligible retirees. We also provide post-employment benefits to former or inactive employees (primarily those on disability) who were not deemed retired under other company plans. The projected future cost of providing these benefits is expensed over the period the employees earn such benefits. Recently Adopted 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. We adopted the change to the presentation of excess tax benefits on the consolidated statements of cash flow retrospectively and all other portions of the standard prospectively as of January 1, 2017. We reclassified $0.2 million and $0.3 million of excess tax benefits from financing activities to operating activities for the twelve months ended December 31, 2016 and December 31, 2015, respectively. The adoption of this standard did not have a material impact on our financial condition or results of operations. Recently Issued Accounting Standards In March 2017 the FASB issued an ASU related to the amortization of premium on purchased callable debt securities. The guidance amends the amortization period for certain purchased callable debt securities held at a premium. Securities that contain explicit, noncontingent call features that are callable at fixed prices and on preset dates should shorten the amortization period for the premium to the earliest call date (and if the call option is not exercised, the effective yield is reset using the payment terms of the debt security). The standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, and is to be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings. We do not expect the adoption of this standard to have a material impact on our financial condition or results of operations. In October 2016 the FASB issued an ASU related to the recognition of income tax on intra-entity transfers of assets other than inventory. The guidance requires the income tax to be recognized when the transfer occurs rather than when the asset is sold to an outside party. The standard is effective for annual periods beginning after December 15, 2017, and interim periods within the year of adoption, and is to be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. We do not expect the adoption of this standard to have a material impact on our financial condition or results of operations. In June 2016 the FASB issued an ASU related to the accounting for credit losses. The guidance generally requires credit losses on available-for-sale debt securities to be recognized as an allowance rather than as a reduction to the amortized cost of a security. The standard is effective for fiscal periods beginning after December 15, 2019, and interim periods within the year of adoption, with prospective application of the ASU required for debt securities for which an other-than-temporary impairment has been recognized before the implementation date. 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 do not expect the adoption of this standard to have a material impact on our financial condition or results of operations. 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 December 31, 2017 , we have $17.7 million net unrealized gains, net of tax, recognized as a component of other comprehensive income. 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. As an insurance-entity, we are largely exempt from the provisions of this standard, with only fee income subject to this new standard. Processing and policy fees are largely earned at the inception of the policy under current guidance but will be earned over the life of the policy under the new revenue recognition guidance. We will adopt using a full retrospective approach and will record a cumulative-effect adjustment to the balance sheet reducing shareholders' equity by $4.5 million on January 1, 2018. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Fair values of instruments are based on: (i) quoted prices in active markets for identical assets (Level 1); (ii) quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which all significant inputs are observable in active markets (Level 2); or (iii) valuations derived from valuation techniques in which one or more significant inputs are unobservable in the marketplace (Level 3). The following tables present, for each of the fair value hierarchy levels, our assets and liabilities for which we report fair value on a recurring basis ($ in thousands): Fair Value December 31, 2017 Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 107,589 $ 0 $ 0 $ 107,589 Fixed maturity securities: U.S. government 60,528 0 0 60,528 State and municipal 0 490,724 3,488 494,211 Mortgage-backed securities: Residential 0 350,992 0 350,992 Commercial 0 30,569 0 30,569 Total mortgage-backed securities 0 381,561 0 381,561 Asset-backed securities 0 62,266 152 62,418 Corporates 0 442,281 108 442,390 Total fixed maturities 60,528 1,376,832 3,748 1,441,107 Equity securities 96,004 0 0 96,004 Short-term investments 0 2,541 0 2,541 Total cash and investments $ 264,121 $ 1,379,373 $ 3,748 $ 1,647,242 Percentage of total cash and investments 16.0 % 83.7 % 0.2 % 100.0 % December 31, 2016 Cash and cash equivalents $ 92,800 $ 0 $ 0 $ 92,800 Fixed maturity securities: U.S. government 62,480 5 0 62,485 State and municipal 0 472,471 3,860 476,331 Mortgage-backed securities: Residential 0 340,367 0 340,367 Commercial 0 69,801 0 69,801 Total mortgage-backed securities 0 410,169 0 410,169 Asset-backed securities 0 37,196 412 37,608 Corporates 0 402,909 666 403,575 Total fixed maturities 62,480 1,322,749 4,938 1,390,167 Equity securities 90,640 0 0 90,640 Short-term investments 769 2,139 0 2,907 Total cash and investments $ 246,689 $ 1,324,888 $ 4,938 $ 1,576,514 Percentage of total cash and investments 15.6 % 84.0 % 0.3 % 100.0 % We do not report our long-term debt at fair value in the Consolidated Balance Sheets. The $290.8 million and $278.7 million fair value of our long-term debt at December 31, 2017 , and December 31, 2016 , respectively, would be included in Level 2 of the fair value hierarchy if it were reported at fair value. Level 1 includes cash and cash equivalents, U.S. Treasury securities, an exchange-traded fund and equities invested in a rabbi trust 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): Twelve months ended December 31, 2017 State and Municipal Corporates Asset-Backed Securities Total Balance at beginning of period $ 3,860 $ 666 $ 412 $ 4,938 Total (lossses) gains, unrealized or realized Included in net earnings (129 ) 1 0 (127 ) Included in other comprehensive income 3 (30 ) 22 (5 ) Purchases 0 2,000 4,259 6,259 Sales (694 ) 0 0 (694 ) Settlements 0 (530 ) (258 ) (788 ) Transfers in 447 0 0 447 Transfers out 0 (2,000 ) (4,283 ) (6,283 ) Balance at end of period $ 3,488 $ 108 $ 152 $ 3,748 Twelve months ended December 31, 2016 Balance at beginning of period $ 10 $ 1,524 $ 0 $ 1,534 Total (losses) gains, unrealized or realized Included in net earnings (25 ) 12 0 (13 ) Included in other comprehensive income (10 ) (60 ) 3 (67 ) Purchases 0 0 620 620 Settlements (10 ) (810 ) (209 ) (1,029 ) Transfers in 3,894 0 1,338 5,232 Transfers out 0 0 (1,339 ) (1,339 ) Balance at end of period $ 3,860 $ 666 $ 412 $ 4,938 Of the $3.7 million fair value of securities in Level 3 at December 31, 2017 , which consisted of six securities , we priced two based on non-binding broker quotes and four securities, which were included in Level 3 because they were not rated by a NRSRO, were priced by a nationally recognized pricing service. During the twelve months ended December 31, 2017, one security, which was an exchange of a rated municipal bond for an unrated refunded bond, was transferred from Level 2 into Level 3 and one security was transferred from Level 2 into Level 3 because it was not rated by a recognized statistical rating organization. Six securities were purchased and placed into Level 3 during the first quarter of 2017 because a price could not be determined using observable market inputs. However, during the second quarter of 2017, prices were obtained using observable market inputs and these securities were transferred into Level 2. There were no transfers of securities between Levels 1 and 2. One security was transferred from Level 2 into Level 3 during the first quarter of 2016 because a price could not be determined using observable market inputs. However, during the third quarter of 2016, a price was obtained using observable market inputs and the security was transferred back into Level 2. Three securities during 2016 were transferred from Level 2 into Level 3 because they were no longer rated by a NRSRO. There were no transfers of securities between Levels 1 and 2 during 2016 . The gains or losses included in net earnings are included in the line item "Net realized gains on investments" in the Consolidated Statements of Earnings. We recognize the net gains or losses included in other comprehensive income in the line item " Unrealized gains (losses) on investments, net " in the Consolidated Statements of Comprehensive Income and the line item "Change in unrealized gain on investments" or 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): December 31, 2017 December 31, 2016 Carrying Value Fair Value Carrying Value Fair Value Assets: Cash and cash equivalents $ 107,589 $ 107,589 $ 92,800 $ 92,800 Available-for-sale securities: Fixed maturities 1,441,107 1,441,107 1,390,167 1,390,167 Equity securities 96,004 96,004 90,640 90,640 Short-term investments 2,541 2,541 2,907 2,907 Total cash and investments $ 1,647,242 $ 1,647,242 $ 1,576,514 $ 1,576,514 Liabilities: Long-term debt $ 273,809 $ 290,824 $ 273,591 $ 278,726 Refer to Note 3 – Investments to the Consolidated Financial Statements for additional information on investments and Note 4 – Long-Term Debt to the Consolidated Financial Statements for additional information on long-term debt. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments We consider all fixed maturity and equity securities “available for sale” and report them at fair value with net unrealized gains or losses reported after-tax (net of any valuation allowance) as a component of accumulated other comprehensive income within shareholders' equity. The proceeds from sales of securities for the twelve months ended December 31, 2017 , were $210.8 million , and are net of $1.7 million of receivable for securities sold during 2017 that had not settled at December 31, 2017 . The proceeds from sales of securities for the twelve months ended December 31, 2016 , were $312.3 million and are net of $0.8 million of receivable for securities sold during 2016 that had not settled at December 31, 2016. The proceeds from sales of securities for the twelve months ended December 31, 2015 , were $341.3 million . Gross gains of $6.9 million , $6.2 million and $7.2 million were realized on sales of available for sale securities during the years ended 2017 , 2016 and 2015 , respectively. Gross losses of $1.7 million , $2.7 million and $3.2 million were realized on sales of available for sale securities during the years ended 2017 , 2016 and 2015 , respectively. Gains or losses on securities are determined on a specific identification basis. Summarized information for the major categories of our investment portfolio follows ($ in thousands): December 31, 2017 Amortized Cost or Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI Recognized in Accumulated OCI (1) Fixed maturities: U.S. government $ 61,196 $ 0 $ (668 ) $ 60,528 $ 0 State and municipal 492,442 2,768 (999 ) 494,211 (46 ) Mortgage-backed securities: Residential 353,277 1,812 (4,097 ) 350,992 (1,479 ) Commercial 31,204 18 (653 ) 30,569 0 Total mortgage-backed securities 384,481 1,830 (4,750 ) 381,561 (1,479 ) Asset-backed securities 62,552 62 (196 ) 62,418 (8 ) Corporates 439,208 4,610 (1,429 ) 442,390 (31 ) Total fixed maturities 1,439,878 9,271 (8,042 ) 1,441,107 (1,564 ) Equity securities 68,812 27,192 0 96,004 0 Short-term investments 2,541 0 0 2,541 0 Total $ 1,511,232 $ 36,463 $ (8,042 ) $ 1,539,653 $ (1,564 ) December 31, 2016 Fixed maturities: U.S. government $ 62,808 $ 55 $ (377 ) $ 62,485 $ 0 State and municipal 477,834 2,313 (3,816 ) 476,331 (51 ) Mortgage-backed securities: Residential 343,095 2,306 (5,034 ) 340,367 (1,967 ) Commercial 70,676 63 (939 ) 69,801 0 Total mortgage-backed securities 413,772 2,369 (5,972 ) 410,169 (1,967 ) Asset-backed securities 37,562 93 (47 ) 37,608 (8 ) Corporates 400,685 4,389 (1,499 ) 403,575 (41 ) Total fixed maturities 1,392,660 9,219 (11,711 ) 1,390,167 (2,068 ) Equity securities 77,013 13,627 0 90,640 0 Short-term investments 2,909 0 (2 ) 2,907 0 Total $ 1,472,582 $ 22,846 $ (11,713 ) $ 1,483,714 $ (2,068 ) (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 December 31, 2017 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 25 $ 46,160 $ (422 ) 0.9 % 16 $ 14,368 $ (246 ) 1.7 % State and municipal 82 163,997 (939 ) 0.6 % 5 10,529 (60 ) 0.6 % Mortgage-backed securities: Residential 154 81,841 (453 ) 0.6 % 279 127,317 (3,644 ) 2.8 % Commercial 2 3,578 (30 ) 0.8 % 9 23,066 (623 ) 2.6 % Total mortgage-backed securities 156 85,419 (483 ) 0.6 % 288 150,383 (4,267 ) 2.8 % Asset-backed securities 31 35,407 (193 ) 0.5 % 2 1,561 (3 ) 0.2 % Corporate 104 158,788 (1,197 ) 0.7 % 13 16,468 (232 ) 1.4 % Total fixed maturities 398 489,771 (3,233 ) 0.7 % 324 193,309 (4,809 ) 2.4 % 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 398 $ 489,771 $ (3,233 ) 0.7 % 324 $ 193,309 $ (4,809 ) 2.4 % December 31, 2016 Fixed maturities: U.S. government 31 $ 47,640 $ (377 ) 0.8 % 0 $ 0 $ 0 0.0 % State and municipal 146 303,428 (3,816 ) 1.2 % 0 0 0 0.0 % Mortgage-backed securities: Residential 381 225,117 (4,559 ) 2.0 % 40 11,891 (474 ) 3.8 % Commercial 14 38,002 (788 ) 2.0 % 7 26,537 (150 ) 0.6 % Total mortgage-backed securities 395 263,119 (5,347 ) 2.0 % 47 38,428 (625 ) 1.6 % Asset-backed securities 9 7,836 (46 ) 0.6 % 1 519 (1 ) 0.1 % Corporate 98 145,089 (1,272 ) 0.9 % 7 7,745 (227 ) 2.8 % Total fixed maturities 679 767,112 (10,859 ) 1.4 % 55 46,693 (852 ) 1.8 % Equity securities 0 0 0 0.0 % 0 0 0 0.0 % Short-term investments 3 2,907 (2 ) 0.1 % 0 0 0 0.0 % Total 682 $ 770,019 $ (10,861 ) 1.4 % 55 $ 46,693 $ (852 ) 1.8 % The determination of whether unrealized losses are “other-than-temporary” requires judgment based on subjective as well as objective factors. Factors we considered and resources we used in our determination include: • 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: December 31, 2017 December 31, 2016 Number of positions held with unrealized: Gains 496 527 Losses 722 737 Number of positions held that individually exceed unrealized: Gains of $500,000 2 1 Losses of $500,000 0 0 Percentage of positions held with unrealized: Gains that were investment grade 81 % 85 % Losses that were investment grade 97 % 97 % Percentage of fair value held with unrealized: Gains that were investment grade 81 % 84 % Losses that were investment grade 95 % 97 % The following table sets forth the amount of unrealized losses, excluding the rabbi trust, by age and severity at December 31, 2017 ($ in thousands): Age of Unrealized Losses Fair Value of Securities with Unrealized Losses Total Gross Unrealized Losses Less Than 5%* 5% - 10%* Total Gross Greater Than 10%* Three months or less $ 316,027 $ (1,498 ) $ (1,498 ) $ 0 $ 0 Four months through six months 161,848 (1,620 ) (1,620 ) 0 0 Seven months through nine months 9,020 (86 ) (86 ) 0 0 Ten months through twelve months 3,748 (39 ) (33 ) (7 ) 0 Greater than twelve months 192,437 (4,799 ) (4,387 ) (412 ) (0 ) Total $ 683,080 $ (8,042 ) $ (7,623 ) $ (419 ) $ (0 ) * As a percentage of amortized cost or cost. The change in unrealized gains (losses) on securities included the following ($ in thousands): Pre-tax December 31, 2017 Fixed Maturities Equity Securities Short-Term Investments Tax Effects Net Unrealized holding gains (losses) on securities arising during the period $ 446 $ 19,066 $ (4 ) $ (6,085 ) $ 13,424 Realized losses (gains) included in net earnings 160 (5,501 ) (1 ) 1,870 (3,473 ) Impairment losses recognized in net earnings 3,116 0 7 (1,093 ) 2,030 Change in unrealized, net $ 3,722 $ 13,565 $ 2 $ (5,308 ) $ 11,981 December 31, 2016 Unrealized holding (losses) gains on securities arising during the period $ (2,153 ) $ 5,359 $ (0 ) $ (1,122 ) $ 2,084 Realized (gains) losses included in net earnings (671 ) (2,851 ) 3 1,232 (2,287 ) Impairment losses recognized in net earnings 375 0 0 (131 ) 243 Change in unrealized, net $ (2,449 ) $ 2,508 $ 2 $ (21 ) $ 40 December 31, 2015 Unrealized holding losses on securities arising during the period $ (18,699 ) $ (3,388 ) $ (4 ) $ 7,732 $ (14,359 ) Realized gains included in net earnings (2,064 ) (2,039 ) (0 ) 1,436 (2,667 ) Impairment losses recognized in net earnings 1,294 0 0 (453 ) 841 Change in unrealized, net $ (19,469 ) $ (5,427 ) $ (4 ) $ 8,715 $ (16,185 ) For fixed maturity securities that are other-than-temporarily impaired, we assess our intent to sell and the likelihood that we will be required to sell the security before recovery of our amortized cost. If a fixed maturity security is considered other-than-temporarily impaired but we do not intend to and are not more than likely to be required to sell the security before our recovery to amortized cost, the amount of the impairment is separated 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, the entire amount of the impairment is treated 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): 2017 2016 Balance at beginning of year $ 557 $ 683 Additions for: Previously impaired securities 299 0 Newly impaired securities 13 0 Reductions for: Reductions for securities sold and paydowns (116 ) (127 ) Balance at end of year $ 753 $ 557 The table below sets forth the scheduled maturities of fixed maturity securities at December 31, 2017 , based on their fair values ($ in thousands). We report securities that do not have a single maturity date at average maturity. Actual maturities may differ from contractual maturities because certain securities may be called or prepaid by the issuers. Fair Value Amortized Cost Maturity Securities with Unrealized Gains Securities with Unrealized Losses Securities with No Unrealized Gains or Losses All Fixed Maturity Securities All Fixed Maturity Securities One year or less $ 27,184 $ 23,139 $ 25,325 $ 75,648 $ 75,568 After one year through five years 245,431 317,699 131,378 694,509 693,370 After five years through ten years 139,337 69,472 14,449 223,257 220,275 After ten years 3,715 0 0 3,715 3,633 Mortgage- and asset-backed securities 126,679 272,770 44,530 443,979 447,032 Total $ 542,346 $ 683,080 $ 215,682 $ 1,441,107 $ 1,439,878 Net Investment Income The following table shows investment income earned and investment expenses incurred ($ in thousands): Twelve months ended December 31, 2017 2016 2015 Gross investment income: Interest income on fixed maturities, cash and cash equivalents $ 37,301 $ 35,528 $ 36,871 Dividends on equity securities 2,174 2,231 2,194 Gross investment income 39,476 37,759 39,065 Investment expenses (2,213 ) (2,222 ) (2,265 ) Net investment income $ 37,262 $ 35,537 $ 36,800 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-Term Debt December 31, ($ in thousands) 2017 2016 Principal $ 275,000 $ 275,000 Unamortized debt issuance costs 1,191 1,409 Long-term debt less unamortized debt issuance costs $ 273,809 $ 273,591 In September 2012 we issued $275 million principal of senior notes due September 2022 (the “ 5.0% Senior Notes”). The 5.0% Senior Notes accrue interest at 5.0% , payable semiannually. At the time we issued the 5.0% Senior Notes, we capitalized $2.2 million of debt issuance costs, which we are amortizing over the term of the 5.0% Senior Notes. We calculated the December 31, 2017 , fair value of $290.8 million using a 125 basis point spread to the 10 -year U.S. Treasury Note Yield of 3.658% . We paid interest on long-term debt of $13.8 million for each of the years ended December 31, 2017 , 2016 and 2015 . In August 2017 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 December 31, 2017 , there were no borrowings outstanding against it. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes In the years 2017 , 2016 and 2015 , we paid $28.3 million , $6.7 million and $28.5 million , respectively, in taxes. The following is a reconciliation of income taxes at the statutory rate of 35.0% to the effective provision for income taxes as shown in the Consolidated Statements of Earnings ($ in thousands): Twelve months ended December 31, 2017 2016 2015 Earnings before income taxes $ 80,727 $ 62,132 $ 74,832 Income taxes at statutory rate 28,254 21,746 26,191 Effect of: Dividends-received deduction (455 ) (466 ) (458 ) Tax-exempt interest (2,442 ) (2,456 ) (2,713 ) Other (198 ) 223 331 Deferred tax rate adjustment 10,184 $ 0 $ 0 Provision for income taxes as shown on the Consolidated Statements of Earnings $ 35,343 $ 19,047 $ 23,351 GAAP effective tax rate 43.8 % 30.7 % 31.2 % The total income tax provision consists of ($ in thousands): 2017 2016 2015 Current $ 30,332 $ 14,782 $ 23,133 Deferred 5,011 4,265 218 Provision for income taxes $ 35,343 $ 19,047 $ 23,351 Deferred income tax assets and liabilities reflect temporary differences between the carrying amounts of assets and liabilities recognized for financial reporting purposes and the amounts recognized for tax purposes. The significant components of deferred tax assets and liabilities included in the Consolidated Balance Sheets were as follows ($ in thousands): As of December 31, 2017 2016 Deferred tax assets: Discount on loss reserves $ 5,862 $ 4,853 Unearned premium reserve 26,358 42,844 Bad debts 3,205 4,972 Accrued bonuses 1,937 2,250 Deferred compensation 3,966 6,152 Long-term incentive compensation 740 814 Other 2,683 5,089 Gross deferred tax assets 44,751 66,974 Valuation allowance for deferred tax assets (195 ) (326 ) Total deferred tax assets 44,556 66,648 Deferred tax liabilities: Deferred policy acquisition costs (18,543 ) (31,897 ) Investment securities – unrealized gains (5,966 ) (3,896 ) Fixed assets (2,379 ) (5,037 ) Loss reserve transition liability (3,120 ) 0 Other (382 ) (1,405 ) Total deferred tax liabilities (30,390 ) (42,235 ) Net deferred tax assets 14,166 24,413 Current income tax payable (4,811 ) (2,778 ) Current and deferred income taxes $ 9,355 $ 21,635 The Tax Cuts and Jobs Act (TCJA) was enacted on December 22, 2017, and reduced the federal corporate tax rate from 35% to 21%, effective January 1, 2018. The deferred tax assets and deferred tax liabilities as of December 31, 2017, have been calculated based on the new enacted tax rate, which resulted in a net deferred tax rate adjustment of $10.2 million recorded in the provision for income taxes. The TCJA also made changes to the way companies are allowed to calculate their tax loss reserve discount factors. The TCJA requires the use of industry payout patterns and revised the method of calculating the interest rates for purposes of tax loss reserve discounting. The TCJA requires companies to revalue their tax loss reserves as of January 1, 2018, based on December 31, 2018 discount factors. This results in a grossed up deferred tax asset relating to tax loss reserves and the establishment of a deferred tax liability for the transition loss that will be recognized ratably over eight years, both of which are reflected in the above December 31, 2017 balances. Since the December 31, 2018 discount factors, and the exact methodology used to calculate the interest rate used to determine the discount factors, have not been released, both the gross-up of the tax loss reserve deferred tax asset and the setup of the transitional loss deferred tax liability have been computed on what we believe is a reasonable estimate under SAB 118. These balances will be revised when published discount factors are made available. An analysis is performed on a quarterly basis to determine if there is sufficient evidence that it is more likely than not that the deferred tax assets will be recognized for tax purposes. The evidence that is considered in assessing the need for a valuation allowance includes: (i) sufficient future taxable income; (ii) sufficient ordinary and capital taxable income in carryback periods; (iii) the reversals of existing taxable temporary differences; and (iv) tax planning strategies that could be utilized to accelerate the recognition of capital gains in the future. Based on this evaluation, it is management’s belief the only valuation allowance required at December 31, 2017 , and December 31, 2016 , relates to a net operating loss carryover generated by an inactive company that previously filed on a separate company basis. In 2016 we purchased the remaining 49% of this company’s stock resulting in their inclusion in the consolidated income tax return. Due to the limitations that will apply to utilizing the subsidiary’s net operating loss, the valuation allowance equals 100% of the subsidiary’s net operating loss, which will start expiring in the year 2028. The reduction in the valuation allowance is attributable to the reduction in the enacted tax rate. We did not have any gross unrecognized tax benefits that would exceed a materiality threshold and therefore, there was no reduction to Retained Earnings in our Consolidated Balance Sheets at January 1, 2017 . The gross unrecognized tax benefit did not exceed the materiality threshold as of December 31, 2017 . The Company is not currently under examination by the IRS and the statute of limitations has expired for all years prior to 2014 . |
Computation Of Earnings Per Sha
Computation Of Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Computation of Earnings per Share | Computation of Net Earnings per Share The following table illustrates our computations of basic and diluted net earnings per common share ($ in thousands, except per share figures): Twelve months ended December 31, 2017 2016 2015 Net earnings $ 45,384 $ 43,085 $ 51,481 Average basic shares outstanding 10,984 11,018 11,334 Basic net earnings per share $ 4.13 $ 3.91 $ 4.54 Average basic shares outstanding 10,984 11,018 11,334 Restricted stock not vested 22 26 16 Dilutive effect of Performance Share Plan 62 57 67 Average diluted shares outstanding 11,067 11,101 11,417 Diluted net earnings per share $ 4.10 $ 3.88 $ 4.51 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation We established the Amended and Restated 2013 Stock Incentive Plan (the “2013 Plan”), which was approved by the Company’s shareholders on May 21, 2013. Under the 2013 Plan, 750,000 shares are authorized and reserved for issuance. Upon the approval by the shareholders of the 2013 Plan, we became prohibited from issuing any further grants under the Restricted Stock Plan, Directors’ Plan, Performance Share Plan, or Stock Option Plan (collectively, the "Prior Plans"). However, all outstanding awards under the Prior Plans remain outstanding and will continue to be administered and settled with the applicable provisions of the Prior Plans. We have a policy of issuing new stock for shares issued under the 2013 Plan. The number of shares issued, net of forfeitures, by plan, for share-based compensation arrangements was as follows: 2017 2016 2015 2013 Plan 2013 Plan 2013 Plan Prior Plans Restricted Stock 14,500 0 (1,613) 0 Non-employee Directors’ Stock 6,680 7,596 7,013 0 Performance Shares 32,765 24,123 0 37,155 Total 53,945 31,719 5,400 37,155 The amount of total compensation cost for share-based compensation arrangements was as follows ($ in thousands): Twelve months ended December 31, 2017 2016 2015 Expense Recognized in Earnings Tax Benefit Expense Recognized in Earnings Tax Benefit Expense Recognized in Earnings Tax Benefit Restricted Stock $ 765 $ 161 $ 1,037 $ 363 $ 799 $ 280 Non-employee Directors’ Stock Ownership Plan 646 226 600 210 510 178 Employee Stock Purchase Plan 50 0 46 0 45 0 Performance Shares 3,135 658 661 231 1,795 628 Total $ 4,596 $ 1,045 $ 2,343 $ 804 $ 3,148 $ 1,086 Restricted Stock On August 5, 2014, the Committee approved the grant of 37,244 shares to certain officers under the 2013 Plan which vested in full on August 5, 2017. On October 19, 2015, the Committee approved the grant of 7,471 shares that will vest in full on October 19, 2018. On November 2, 2017, the Committee approved the grant of 14,500 shares that will vest in full on November 2, 2020. During the vesting period, the shares of restricted stock will not have voting rights but will accrue dividends, which we will not pay until the shares have vested. We treat the restricted shares as issued and outstanding for calculation of diluted earnings per share only. Until fully vested, we will not consider the shares issued and outstanding for purposes of the basic earnings per share calculation. The following table sets forth the restricted stock activity for the year ended December 31, 2017 : Restricted Stock Number of Shares Weighted-average Grant Date Fair Value Non-vested as of January 1, 2017 44,715 $ 69.54 Vested (37,244 ) $ 67.04 Granted 14,500 $ 93.7 Non-vested as of December 31, 2017 21,971 $ 89.73 Non-employee Directors’ Stock Shares are issued to non-employee directors on or about June 1 of each year as part of their compensation. We restrict these shares from sale or transfer by any recipient for six months from the grant date. These shares are treated as issued and outstanding for basic and diluted earnings per share calculations. Performance Shares The purpose of the Performance Shares is to align further the interest of management with our long-term shareholders by including performance-based compensation, payable in shares of common stock, as a component of an executive’s annual compensation. The Committee administers the Performance Shares and (i) establishes the performance goals, which may include but are not limited to, combined ratio, premium growth, growth within certain geographic areas and earnings per share or return on equity over the course of the upcoming three-year period; (ii) determines the Performance Share participants; (iii) sets the performance share units to be awarded to such participants; and (iv) sets the rate at which performance share units will convert to shares of common stock based upon attainment of the performance goals. Employee Stock Purchase Plan Under the employee stock purchase plan (ESPP), all eligible full-time employees may purchase shares of our common stock at a 15% discount to the current market price. Employees may allocate up to 25% of their base salary with a maximum annual participation amount of $25,000 . If a participant sells any shares purchased under the ESPP within one year, we preclude that employee from participating in the ESPP for one year from the date of sale. The source of shares issued to participants is treasury shares or authorized but previously unissued shares. The maximum number of shares that we may issue under the ESPP may not exceed 1,000,000 , of which we have issued 76,526 as of December 31, 2017 . Our ESPP is qualified under Section 423 of the Internal Revenue Code of 1986, as amended. We treat participants’ shares as issued and outstanding for basic and diluted earnings per share calculations. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Benefit Plans | Benefit Plans We provide retirement benefits for all eligible employees by matching contributions made on participants' discretionary basis to participants' accounts in our qualified 401(k) Retirement Plan. Eligible employees may contribute up to a maximum of the lesser of $18,000 per year or 25% of the participant's salary in 2017 . Participants age 50 or over at the end of the calendar year may make an additional elective deferral contribution of up to $6,000 for 2017 . These additional contributions (commonly referred to as catch-up contributions) are not subject to the general limits that apply to 401(k) plans. The matching percentage made by us was 100% of participants' contributions up to a ceiling of 4% and 50% of the next 2% of contributions with a maximum match of $13,500 in 2017 . The plan expense was $5.5 million , $5.1 million and $4.9 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Our Supplemental Employee Retirement Plan (SERP) is a non-qualified deferred compensation plan that enables eligible employees to make contributions and to receive employer-matching contributions that the provisions of the 401(k) Retirement Plan or laws preclude due to limits on compensation. We contributed $0.1 million to the SERP for each of the years ended December 31, 2017 , 2016 and 2015 . We maintain a rabbi trust that includes investments to fund the SERP. As of December 31, 2017 , investments in the rabbi trust totaled $2.6 million . We reflected these investments at fair value as equity securities on the Consolidated Balance Sheets. We maintain a non-qualified deferred compensation plan for certain highly compensated employees, which permits the participants to defer a portion of their salaries and bonuses. The deferred amounts accrue interest at our approximate long-term borrowing rate. The deferred amounts are our general obligation liability and amounted to $18.9 million , $17.6 million and $16.6 million at December 31, 2017 , 2016 and 2015 , respectively. We credited interest of approximately $0.7 million , $0.7 million and $0.6 million for these same periods. We also provide post-retirement medical and life insurance benefits to certain eligible retirees. We have determined that the benefits provided under this plan are actuarially equivalent to those benefits provided by the Medicare Prescription Drug, Improvement and Modernization Act of 2003 (MMA). Our calculation of the accumulated post-retirement benefit obligation (APBO) as of December 31, 2017 , 2016 and 2015 does not reflect the government subsidy provided by the MMA, other than as reflected in the insured over 65 rates going forward. Unrecognized actuarial gains of $0.9 million ( $0.6 million net of tax) and prior service costs of $0.1 million ( $0.1 million net of tax) that have not yet been recognized in net periodic post-retirement benefit costs are included in accumulated other comprehensive income at December 31, 2017 . We expect to recognize a $0.1 million actuarial gain and $0.1 million of amortization of prior service costs in net periodic post-retirement benefit income during the fiscal year ending December 31, 2018 . We recognized the unfunded status of the APBO plan of $3.8 million at December 31, 2017 , in the Consolidated Balance Sheets. We expect no plan assets to be returned to us during the fiscal year ended December 31, 2018 . The following tables show data related to the APBO plan ($ in thousands): 2017 2016 Net benefit obligation at beginning of year $ 3,613 $ 3,729 Service cost 173 183 Interest cost 125 132 Participant contributions 31 37 Assumption change 168 44 Actuarial gain (14 ) (176 ) Gross benefits paid (326 ) (338 ) Net benefit obligation at end of year $ 3,769 $ 3,613 The following table discloses the components of net periodic post-retirement benefit cost ($ in thousands): 2017 2016 2015 Service cost $ 173 $ 183 $ 235 Interest cost 125 132 146 Amortization of prior service cost 71 71 71 Amortization of net cumulative gain (121 ) (114 ) (5 ) Net periodic post-retirement benefit cost $ 247 $ 273 $ 447 The following table discloses discount rates used to determine benefit obligations: 2017 2016 2015 Discount rate 3.20% 3.60% 3.70% The weighted average health care cost trend rate used in measuring the accumulated post-retirement benefit cost is 7.5% for 2018 , declining to 5.0% in 2038 . The following table discloses the effects of a hypothetical one percentage point increase and the effects of a hypothetical one percentage point decrease in the assumed healthcare trend rate ($ in thousands): 2017 2016 2015 A one percentage point hypothetical change in the assumed healthcare trend rate would have the following effect on the post-retirement benefit obligations: 1% increase $ 188 $ 184 $ 304 1% decrease (172 ) (162 ) (269 ) A one percentage point hypothetical change in the assumed healthcare trend rate would have the following effect on the aggregate of the service and interest cost components of net periodic post-retirement healthcare benefit costs: 1% increase $ 36 $ 40 $ 49 1% decrease (31 ) (34 ) (42 ) The following table reconciles the beginning and ending balances of the fair value of plan assets for the years ended December 31, 2017 , and 2016 ($ in thousands): 2017 2016 Fair value of plan assets at beginning of year $ 0 $ 0 Employer contributions 295 301 Participant contributions 31 37 Gross benefits paid (326 ) (338 ) Fair value of plan assets at end of year $ 0 $ 0 The following table presents the funded status and the amounts recognized in the Consolidated Balance Sheets ($ in thousands): 2017 2016 Fair value of plan assets $ 0 $ 0 Benefit obligations (3,769 ) (3,613 ) Funded status at end of year (3,769 ) (3,613 ) Contributions made after the measurement date 0 0 Unrecognized actuarial net (gain) loss 0 0 Unrecognized prior service cost 0 0 Net amount recognized at end of year $ (3,769 ) $ (3,613 ) The following table presents the 10-year forecast and best estimate of expected benefit payments ($ in thousands): 2017 2016 2015 2018 $ 266 2017 $ 295 2016 $ 301 2019 276 2018 287 2017 280 2020 283 2019 289 2018 281 2021 280 2020 281 2019 294 2022 287 2021 283 2020 287 2023-2027 1,627 2022-2026 1,549 2021-2025 1,583 10-Year Total $ 3,020 $ 2,983 $ 3,026 Our best estimate of contributions expected to be paid to the plan during the fiscal year beginning January 1, 2018 , is $0.3 million . |
Quarterly Operating Results (Un
Quarterly Operating Results (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Operating Results | Quarterly Operating Results (Unaudited) While we recognize insurance premium on a relatively level basis, claim losses related to adverse weather (snow, hail, hurricanes, tornadoes, etc.) and customer driving behavior may be seasonal. Quarterly results rely heavily on estimates and are not necessarily indicative of results for longer periods. The following are quarterly results of our consolidated operations for the three years ended December 31, 2017 , ($ in thousands, except per share amounts) : 2017 1 st Quarter 2 nd Quarter 3 rd Quarter 4 th Quarter Total Year Revenues $ 377,797 $ 376,886 $ 380,701 $ 382,602 $ 1,517,987 Net earnings 10,646 5,046 14,978 14,713 45,384 Net earnings per share: Basic $ 0.97 $ 0.46 $ 1.36 $ 1.35 $ 4.13 Diluted 0.96 0.46 1.35 1.34 4.10 2016 Revenues $ 370,162 $ 375,084 $ 378,124 $ 415,336 $ 1,538,706 Net earnings 7,708 11,015 2,753 21,609 43,085 Net earnings per share: Basic $ 0.70 $ 1.00 $ 0.25 $ 1.96 $ 3.91 Diluted 0.69 0.99 0.25 1.95 3.88 2015 Revenues $ 366,973 $ 374,757 $ 372,383 $ 369,919 $ 1,484,032 Net earnings 11,154 13,493 15,737 11,097 51,481 Net earnings per share: Basic $ 0.98 $ 1.18 $ 1.39 $ 0.99 $ 4.54 Diluted 0.97 1.18 1.38 0.99 4.51 Net realized gains (losses) on investments amounted to: 1 st Quarter 2 nd Quarter 3 rd Quarter 4 th Quarter Total Year 2017 $ 509 $ 1,886 $ (431 ) $ 256 $ 2,220 2016 139 (164 ) 1,282 1,887 3,145 2015 1,169 214 (410 ) 1,835 2,809 |
Insurance Reserves
Insurance Reserves | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [Abstract] | |
Insurance Reserves | Insurance Reserves The following table provides an analysis of changes in the liability for losses and LAE, net of reinsurance ($ in thousands): 2017 2016 2015 Balance at Beginning of Period Unpaid losses on known claims $ 238,412 $ 237,660 $ 235,037 IBNR losses 306,641 290,097 277,482 LAE 140,402 142,207 155,658 Total unpaid losses and LAE 685,455 669,965 668,177 Reinsurance recoverables (17,130 ) (14,694 ) (14,370 ) Unpaid losses and LAE, net of reinsurance recoverables 668,325 655,271 653,808 Current Activity Loss and LAE incurred: Current accident year 1,072,191 1,120,756 1,064,927 Prior accident years (18,494 ) (24,001 ) (28,926 ) Total loss and LAE incurred 1,053,697 1,096,755 1,036,001 Loss and LAE payments: Current accident year (657,252 ) (687,554 ) (656,317 ) Prior accident years (381,281 ) (396,147 ) (378,221 ) Total loss and LAE payments (1,038,533 ) (1,083,701 ) (1,034,538 ) Balance at End of Period Unpaid losses and LAE, net of reinsurance recoverables 683,489 668,325 655,271 Add back reinsurance recoverables 31,609 17,130 14,694 Total unpaid losses and LAE 715,098 685,455 669,965 Unpaid losses on known claims 264,470 238,412 237,660 IBNR losses 312,516 306,641 290,097 LAE 138,112 140,402 142,207 Total unpaid losses and LAE $ 715,098 $ 685,455 $ 669,965 The $18.5 million favorable reserve development during the twelve months ended December 31, 2017 , was primarily due to decreases in ultimate frequency and severity estimates from the bodily injury and material damage coverages in California for accident year 2016 and decreases in ultimate frequency and severity estimates from material damage coverages along with decreases in severity estimates from uninsured motorist bodily injury coverage in Florida for accident year 2016. This favorable development was partially offset by increases in ultimate severity estimates in bodily injury coverages in our commercial auto product. The $24.0 million favorable reserve development during the twelve months ended December 31, 2016 , was primarily due to decreases in severity estimates in Florida bodily injury and personal injury protection coverages related to accident years 2015 and prior, partially offset by increases in severity estimates in California material damage and bodily injury coverages as well as bodily injury coverages in our commercial auto product, all related to accident year 2015 . The $28.9 million favorable reserve development during the twelve months ended December 31, 2015 , was primarily due to decreases in severity estimates in Florida bodily injury coverages and California bodily injury loss adjustment expense estimates, all related to accident years 2013 and 2014. The following tables provide incurred losses and allocated loss adjustment expenses (ALAE) as well as cumulative paid claims and ALAE, net of reinsurance, for the prior ten accident years for our two largest lines of business. In addition, as of the most recent reporting period, the total of incurred but not reported (IBNR) reserves plus expected development on reported claims and the cumulative number of reported claims are presented ($ in thousands, except severity). The information about incurred and paid claims development for the years ended December 31, 2008 to December 31, 2016 is presented as supplementary information. Personal Auto - Liability Accident Year Incurred losses and ALAE, net of reinsurance recoverable For the years ended December 31, IBNR & expected development on reported claims Cumulative number of reported claims (1) Severity (2) (unaudited) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2017 2017 2017 2008 $ 370,950 $ 365,395 $ 348,841 $ 344,914 $ 342,775 $ 343,137 $ 341,566 $ 340,998 $ 340,785 $ 340,829 $ 70 151,692 $ 2,246 2009 357,137 336,224 334,823 333,895 332,731 330,929 330,315 330,152 330,394 143 145,958 2,263 2010 386,452 400,888 404,963 406,602 404,872 406,279 404,807 405,351 348 170,120 2,381 2011 425,619 453,746 459,406 458,171 459,418 456,862 457,242 551 187,717 2,433 2012 521,603 540,012 540,572 541,696 538,233 536,492 1,391 216,394 2,473 2013 588,566 589,991 575,727 568,481 568,744 5,325 219,395 2,568 2014 569,899 572,955 561,861 562,673 14,989 213,517 2,565 2015 583,490 582,177 581,699 24,375 216,638 2,573 2016 596,021 582,451 45,447 212,174 2,531 2017 550,769 159,366 185,635 2,108 Total $ 4,916,644 Accident Year Cumulative paid losses and ALAE, net of reinsurance recoverable For the years ended December 31, (unaudited) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008 $ 164,563 $ 284,203 $ 317,660 $ 331,628 $ 336,700 $ 339,436 $ 340,305 $ 340,495 $ 340,649 $ 340,726 2009 153,561 270,633 309,115 322,313 326,575 328,647 329,386 329,793 330,032 2010 182,160 332,625 374,717 391,125 397,254 401,597 403,976 404,805 2011 201,769 374,930 423,456 442,710 450,718 454,637 456,030 2012 246,387 444,359 501,466 521,104 529,190 533,039 2013 271,961 477,408 530,162 548,631 556,695 2014 270,893 470,297 521,257 539,701 2015 282,064 488,501 537,670 2016 290,108 483,874 2017 265,959 Total $ 4,448,532 Outstanding liabilities for unpaid losses and ALAE prior to 2008, net of reinsurance recoverable 1,116 Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance recoverable $ 469,228 (1) The cumulative number of reported claims is measured by individual claimant at a coverage level. (2) Calculated severity amounts by accident year are based on inception-to-date incurred less IBNR and expected development dollars and reported claims. Note that older accident years are more developed than recent accident years. Personal Auto - Physical Damage Accident Year Incurred losses and ALAE, net of reinsurance recoverable For the years ended December 31, IBNR & expected development on reported claims Cumulative number of reported claims (1) Severity (2) (unaudited) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2017 2017 2017 2008 $ 174,923 $ 167,898 $ 168,284 $ 168,261 $ 168,366 $ 168,353 $ 168,356 $ 168,252 $ 168,272 $ 168,299 $ — 95,511 $ 1,762 2009 140,256 137,104 137,949 137,972 138,983 141,594 142,685 143,208 144,613 — 84,871 1,704 2010 154,850 153,279 152,628 152,651 152,753 152,656 152,670 152,772 — 100,585 1,519 2011 183,016 179,265 178,993 179,399 179,090 179,043 179,128 — 120,196 1,490 2012 218,216 210,510 210,690 209,905 209,933 209,994 (0 ) 143,891 1,459 2013 216,472 215,469 213,701 213,888 214,007 70 145,504 1,470 2014 237,379 223,130 223,068 223,014 157 140,849 1,582 2015 255,569 258,967 258,293 418 149,543 1,724 2016 278,305 269,680 1,533 147,334 1,820 2017 265,045 28,822 135,189 1,747 Total $ 2,084,845 Accident Year Cumulative paid losses and ALAE, net of reinsurance recoverable For the years ended December 31, (unaudited) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008 $ 155,754 $ 168,890 $ 168,207 $ 168,248 $ 168,363 $ 168,386 $ 168,368 $ 168,336 $ 168,311 $ 168,299 2009 131,593 137,902 138,063 138,150 138,878 141,385 142,403 143,282 143,363 2010 143,751 153,295 152,821 152,759 152,770 152,812 152,805 152,797 2011 172,598 179,315 179,066 179,209 179,274 179,224 179,196 2012 204,047 210,945 210,170 210,102 210,164 210,119 2013 208,503 214,631 214,026 214,139 214,138 2014 214,491 224,311 223,430 223,204 2015 248,200 260,349 258,747 2016 264,108 271,370 2017 251,865 Total $ 2,073,098 Outstanding liabilities for unpaid losses and ALAE prior to 2008, net of reinsurance recoverable 4 Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance recoverable $ 11,752 (1) The cumulative number of reported claims is measured by individual claimant at a coverage level. (2) Calculated severity amounts by accident year are based on inception-to-date incurred less IBNR and expected development dollars and reported claims. Note that older accident years are more developed than recent accident years. Commercial Auto - Liability Accident Year Incurred losses and ALAE, net of reinsurance recoverable For the years ended December 31, IBNR & expected development on reported claims Cumulative number of reported claims (1) Severity (2) (unaudited) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2017 2017 2017 2008 $ 20,258 $ 17,047 $ 14,845 $ 14,778 $ 14,218 $ 13,939 $ 13,865 $ 13,890 $ 13,890 $ 13,889 $ — 4,100 $ 3,387 2009 30,227 26,644 25,977 23,687 22,332 22,265 22,137 22,120 22,109 — 5,878 3,761 2010 34,557 32,609 29,343 28,020 26,881 27,332 26,949 26,917 — 7,276 3,699 2011 33,090 32,272 29,448 28,318 28,396 27,772 27,798 44 7,613 3,646 2012 42,396 38,781 38,144 38,279 37,722 37,077 51 8,681 4,265 2013 52,590 42,327 43,025 42,317 41,342 376 9,688 4,228 2014 54,452 52,320 53,700 54,883 1,516 11,399 4,682 2015 67,731 70,252 74,418 2,405 13,809 5,215 2016 79,025 80,418 6,591 14,651 5,039 2017 89,425 33,014 14,085 4,005 Total $ 468,275 Accident Year Cumulative paid losses and ALAE, net of reinsurance recoverable For the years ended December 31, (unaudited) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008 $ 5,471 $ 10,367 $ 12,124 $ 13,224 $ 13,780 $ 13,841 $ 13,842 $ 13,888 $ 13,888 $ 13,888 2009 8,704 16,508 20,695 21,481 21,962 22,073 22,084 22,090 22,106 2010 10,156 19,375 23,600 25,678 26,177 26,774 26,838 26,850 2011 11,046 21,665 25,402 26,768 27,489 27,641 27,721 2012 14,608 27,182 33,381 35,505 36,469 36,840 2013 15,276 30,953 36,150 38,178 39,464 2014 18,518 36,152 44,168 49,167 2015 24,840 49,828 60,558 2016 27,539 52,993 2017 29,203 Total $ 358,792 Outstanding liabilities for unpaid losses and ALAE prior to 2008, net of reinsurance recoverable 8 Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance recoverable $ 109,491 (1) The cumulative number of reported claims is measured by individual claimant at a coverage level. (2) Calculated severity amounts by accident year are based on inception-to-date incurred less IBNR and expected development dollars and reported claims. Note that older accident years are more developed than recent accident years. Commercial Auto - Physical Damage Accident Year Incurred losses and ALAE, net of reinsurance recoverable For the years ended December 31, IBNR & expected development on reported claims Cumulative number of reported claims (1) Severity (2) (unaudited) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2017 2017 2017 2008 $ 4,199 $ 4,140 $ 4,115 $ 4,115 $ 4,102 $ 4,106 $ 4,108 $ 4,106 $ 4,106 $ 4,106 $ — 2,495 $ 1,646 2009 5,400 5,259 5,249 5,257 5,266 5,269 5,266 5,265 5,264 — 3,181 1,655 2010 6,765 6,540 6,538 6,519 6,515 6,513 6,511 6,510 — 3,929 1,657 2011 7,204 6,822 6,754 6,734 6,734 6,735 6,732 — 3,884 1,733 2012 8,690 8,169 8,140 8,126 8,110 8,093 — 4,438 1,823 2013 9,567 9,112 9,057 9,090 9,082 — 4,744 1,914 2014 11,272 10,984 10,982 10,937 (0 ) 5,362 2,040 2015 14,117 14,062 14,201 42 6,357 2,227 2016 16,512 16,273 150 6,917 2,331 2017 17,340 2,132 6,605 2,302 Total $ 98,537 Accident Year Cumulative paid losses and ALAE, net of reinsurance recoverable For the years ended December 31, (unaudited) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008 $ 3,623 $ 4,122 $ 4,100 $ 4,107 $ 4,106 $ 4,106 $ 4,106 $ 4,106 $ 4,106 $ 4,106 2009 4,759 5,227 5,234 5,253 5,267 5,266 5,267 5,265 5,264 2010 5,953 6,528 6,520 6,513 6,513 6,512 6,511 6,511 2011 6,351 6,762 6,724 6,727 6,734 6,734 6,734 2012 7,665 8,140 8,120 8,118 8,109 8,096 2013 8,557 9,085 9,049 9,092 9,091 2014 10,110 11,010 10,963 10,953 2015 13,079 14,104 14,200 2016 14,929 16,279 2017 15,701 Total $ 96,935 Outstanding liabilities for unpaid losses and ALAE prior to 2008, net of reinsurance recoverable — Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance recoverable $ 1,602 (1) The cumulative number of reported claims is measured by individual claimant at a coverage level. (2) Calculated severity amounts by accident year are based on inception-to-date incurred less IBNR and expected development dollars and reported claims. Note that older accident years are more developed than recent accident years. The reconciliation of the net incurred and paid development tables to the liability for unpaid losses and LAE in the consolidated balance sheets is as follows ($ in thousands): As of December 31, 2017 Liabilities for unpaid losses and LAE: Personal Auto - Liability $ 469,228 Personal Auto - Physical Damage 11,752 Commercial Auto - Liability 109,491 Commercial Auto - Physical Damage 1,602 Other Lines 7,821 Total liabilities for unpaid losses and LAE, net of reinsurance 599,894 Reinsurance recoverables: Personal Auto - Liability 6,993 Personal Auto - Physical Damage 11,813 Commercial Auto - Liability 11,752 Commercial Auto - Physical Damage 48 Other Lines 1,003 Total reinsurance recoverables 31,609 Unallocated loss adjustment expenses 83,596 Gross liability for unpaid losses and LAE $ 715,098 Other Lines includes our roadside assistance coverage, which has been excluded from the Personal Auto triangles as the high frequency and low severity of these claims can distort analysis, as well as Classic Collector. Incurred but not reported (IBNR) reserves are established for the quarter and year-end based on a quarterly reserve analysis by our actuarial staff. Various standard actuarial tests are applied to subsets of the business at a state, product and coverage basis. Included in the analyses are the following: • Paid and incurred extrapolation methods utilizing paid and incurred loss development to predict ultimate losses; • Paid and incurred frequency and severity methods utilizing paid and incurred claims count development and paid and incurred claims cost development to predict ultimate average frequency (claims count per policy or auto insured) or ultimate average severity (cost per claim); and • Paid and incurred Bornhuetter-Ferguson methods adding expected development to actual paid or incurred experience to project ultimate losses. For each subset of the business evaluated, each test generates a point estimate based on development factors applied to known paid and incurred losses and claim counts. Selections of development factors are based on historical loss development patterns with adjustment based on professional actuarial judgment where anticipated development patterns vary from those seen historically. Deviations from historical loss development patterns may occur due to changes in items such as claims settlement and payment practices, business mix, coverage limits and deductibles, inflation trends in auto repair and medical costs and legal and regulatory trends affecting claims settlements. This estimation of IBNR requires selection of hundreds of such factors. A single point estimate for the subset being evaluated is then selected from the results of various tests, based on a combination of simple averages of the point estimates of the various tests and selections based on professional actuarial judgment. During recent years, paid methods have been less reliable because of changes in settlement practices, so we have more heavily relied on incurred methods. As described above, various actuarial methods are utilized to determine reserves that are booked to financials. Weightings of tests and methods at a detailed level may change from evaluation to evaluation based on a number of observations, measures and time elements. On an overall basis, changes to methods and/or assumptions underlying reserve estimations and selections as of December 31, 2017 , were not considered material. The following table provides supplementary information about the average annual percentage payout of incurred losses and ALAE, net of reinsurance: Average annual payout of losses and LAE, net of reinsurance (unaudited) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Personal Auto - Liability 47.2 % 35.7 % 10.0 % 3.9 % 1.6 % 0.9 % 0.3 % 0.1 % 0.1 % 0.1 % Personal Auto - Physical Damage 95.4 % 4.5 % (0.4 )% (0.1 )% 0.0 % 0.2 % 0.1 % 0.1 % (0.1 )% 0.4 % Commercial Auto - Liability 36.7 % 35.1 % 15.6 % 7.1 % 3.5 % 1.5 % 0.2 % 0.1 % 0.1 % 0.0 % Commercial Auto - Physical Damage 92.0 % 8.1 % (0.2 )% 0.1 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2017 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | Reinsurance The following table shows written and earned premium included in earnings for reinsurance assumed and amounts deducted from written and earned premium in connection with reinsurance ceded ($ in thousands): Year Direct Written Premium Reinsurance Assumed Reinsurance Ceded Net Written Premium % of Amount Assumed to Net 2017 $ 1,397,276 $ 18 $ (10,441 ) $ 1,386,853 0.0 % 2016 1,401,378 36 (8,955 ) 1,392,459 0.0 % 2015 1,387,864 2 (14,579 ) 1,373,287 0.0 % Year Direct Earned Premium Reinsurance Reinsurance Net Earned Premium % of Amount Assumed to Net 2017 $ 1,384,048 $ 18 $ (12,730 ) $ 1,371,336 0.0 % 2016 1,403,682 34 (12,052 ) 1,391,664 0.0 % 2015 1,360,473 4 (13,913 ) 1,346,564 0.0 % Assumed Reinsurance Assumed business consists of business assumed from unaffiliated insurance companies and involuntary pools and associations. We assumed $9.4 million , $9.7 million and $10.0 million , respectively, at December 31, 2017 , 2016 and 2015 of unpaid losses and LAE from unaffiliated insurance companies. We assumed less than $1,000 in premium from unaffiliated insurance companies in 2017 , 2016 and 2015 . During the twelve months ended December 31, 2017 , 2016 and 2015 , we assumed, from involuntary pools and associations, premium and unpaid losses and LAE of less than $0.1 million each. Ceded Reinsurance We use excess of loss, catastrophe and extra-contractual loss reinsurance to mitigate the financial impact of large or catastrophic losses. During 2015 our catastrophe reinsurance protection was 100% of $55 million in excess of $5 million per event. During 2016 and 2017 our catastrophe reinsurance protection was $95 million in excess of $5 million per event. The first $10 million of coverage was reinsured at 50% with the remaining layers at 100% . In September 2017 we added Third Event coverage of $25 million in excess of the first $5 million with the first $10 million of coverage reinsured at 50% . During 2016, our excess of loss reinsurance was modified to provide protection for commercial auto losses up to $500,000 for claims in excess of $500,000 per occurrence. In addition, there was a 75% quota share for our general liability business. Effective June 1, 2017, the premium paid for our excess of loss reinsurance contract for our commercial auto business is now based on earned premium rather than written premium. Our extra-contractual loss reinsurance provides protection for losses up to $10 million in excess of $5 million for any single extra-contractual loss. We also use reinsurance to mitigate losses on our Classic Collector business. Premium ceded for the twelve months ended December 31, 2017, includes the return of $2.6 million of unearned premium due to the termination of the previous excess of loss contract. Premium ceded for the twelve months ended December 31, 2016, includes the return of $5.9 million of unearned premium due to the termination of the previous excess of loss contract. The $1.8 million of ceding commissions associated with this unearned premium was returned to the reinsurers. Ceded reinsurance for all programs reduced our incurred losses and LAE by $33.9 million , $8.0 million and $4.3 million for the twelve months ended December 31, 2017 , 2016 and 2015 , respectively. |
Statutory Information
Statutory Information | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [Abstract] | |
Statutory Information | Statutory Information Capital and Surplus Insurance companies are required to file financial statements with state insurance regulatory authorities prepared on an accounting basis prescribed or permitted by such authorities (statutory basis). Net earnings and capital and surplus on a statutory basis were as follows ($ in thousands): Statutory Net Earnings Statutory Capital and Surplus 2017 2016 2015 2017 2016 $ 67,323 $ 62,247 $ 61,379 $ 665,459 $ 669,301 For the twelve-month periods ended December 31, 2017 , 2016 and 2015 , statutory results differed from net earnings on a GAAP basis primarily due to the amortization of deferred acquisition costs, the basis difference in realized gains and holding company expenses, including interest. At December 31, 2017 , the consolidated amount of statutory capital and surplus necessary to satisfy regulatory requirements as defined by the National Association of Insurance Commissioners' (NAIC) Risk-Based Capital (RBC) calculation was $134.0 million . This amount of statutory capital and surplus represents the Company Action Level (CAL) of minimum surplus. Falling below this level would require a company to prepare and submit an RBC plan to address the deficiency in surplus to the CAL to the commissioner of its state of domicile. Restrictions on Transfer of Funds and Assets of Subsidiaries As of December 31, 2017 , there are no regulatory restrictions on the payment of dividends to our shareholders. However, our ability to declare and pay dividends will depend on the working capital in the holding company, as well as dividends received from our insurance subsidiaries. Payments of dividends, loans and advances by our insurance subsidiaries are subject to certain restrictions under various state laws, federal regulations and debt covenants that limit the amount of dividends, loans and advances that can be paid. Under applicable restrictions, the maximum amount of dividends payable in 2018 from our insurance subsidiaries without regulatory approval is approximately $67.9 million . Additional amounts of dividends, loans and advances require regulatory approval. |
Legal and Regulatory Proceeding
Legal and Regulatory Proceedings | 12 Months Ended |
Dec. 31, 2017 | |
Loss Contingency [Abstract] | |
Legal and Regulatory Proceedings | Legal and Regulatory Proceedings From time to time, we and our subsidiaries are named as defendants in various lawsuits incidental to our insurance operations. We consider legal actions relating to claims made in the ordinary course of seeking indemnification for a loss covered by the insurance policy in establishing loss and LAE reserves. We also face in the ordinary course of business lawsuits that seek damages beyond policy limits, commonly known as extra-contractual claims, as well as class action and individual lawsuits that involve issues not unlike those facing other insurance companies and employers. We continually evaluate potential liabilities and reserves for litigation of these types using the criteria established by the Contingencies topic of the FASB Accounting Standards Codification. 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 or range of the loss. When disclosing litigation or claims where 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. In Reyes v. Infinity Indemnity Insurance Company (Circuit Court of Miami-Dade County, Florida), which was initially filed on June 4, 2014, a third-party claimant was attempting to recover from Infinity a $30 million consent judgment obtained against an Infinity policyholder for personal injuries suffered by the claimant. The plaintiff successfully appealed summary judgment, sending the matter back to the trial court. At mediation in December of 2017, we agreed to an opportunity to settle the lawsuit for $12.5 million , of which 90% is covered by reinsurance, resulting in a net payment by Infinity of $1.25 million . We expect the payment to be made in the first quarter of 2018. The following 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 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. As of December 31, 2017, pending putative (i.e., not certified) class action lawsuits that challenge certain of Infinity’s business operations and practices included the following: • allegations we sold a lessor liability endorsement affording only illusory coverage. • a challenge to denial of personal injury protection benefits to a class of injured third parties in vehicle accidents. • a challenge to our payment of a percentage of arbitration awards to collection agencies in successful intercompany arbitrations. • allegations that we are obligated to reimburse Medicare or secondary payers for accident-related medical payments in which personal injury protection benefits were denied. In addition to lawsuits, regulatory bodies, including state insurance departments and the Securities and Exchange Commission, among others, may make inquiries, investigate consumer complaints or conduct on-site examinations concerning specific business practices or compliance more generally. Such inquiries, investigations or examinations have in the past and may in the future directly or indirectly result in regulatory orders requiring remedial, injunctive or other actions or the assessment of substantial fines or other penalties. During the first quarter of 2017, as a result of our review of certain business practices surrounding a California consumer complaint to the California Department of Insurance (CDI), a $3.8 million adjustment was made to written and earned premium, reflecting premium returned to policyholders. During the second quarter, the CDI inquired about how we estimate and adjust an insured's annual mileage driven. Under California's auto insurance regulations, annual miles driven is one of three mandatory factors used to determine insurance premium rates. Although we believe we were in compliance with applicable regulations, we opted to revise the methodology we employ during the renewal process for estimating changes in annual miles. This change resulted in lowering mileage on approximately 200,000 policies renewed predominately in years 2016 and 2017, and correspondingly lowering rates on those policies. Any excess premiums collected were returned to policyholders, which resulted in premium adjustments to written and earned premium for the second quarter of $18.3 million and $12.4 million , respectively. While we believe our policies fully comply with all state regulations, given the broad administrative and interpretative powers of state insurance departments, future and unanticipated judicial, regulatory or legislative changes may raise challenges over established rate, underwriting or claims practices. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments Minimum rental commitments under non-cancelable leases with an initial or remaining term of more than one year as of December 31, 2017 , were as follows ($ in thousands): Due In Operating Leases Capital Leases 2018 $ 4,218 $ 717 2019 2,761 704 2020 2,158 333 2021 1,927 202 2022 882 0 Thereafter 523 0 Total $ 12,469 $ 1,956 All of these leases expire within six years. The most significant leased office spaces are located in Miami, Florida; Cerritos, California and Alpharetta, Georgia , with $3.7 million , $2.1 million and $2.1 million , respectively, due over the remaining lease terms. The operating leases above include leased vehicles. As vehicles are surrendered, they are sold for cash by the lessor. We guarantee that proceeds from sales will be at least equal to the lessor's depreciated book value. Otherwise, we are credited the excess or we pay the deficit. The lessor's depreciated book value at December 31, 2017 , on the vehicles we lease was $4.2 million , which represents the maximum deficit we would be required to pay if the lessor received no proceeds from the sale. Historically, we have not made any material additional rental payments due to surrendered vehicles. As of December 31, 2017 , the current fair market value of the vehicles we lease was approximately $4.4 million . Lease expense incurred for all leases during the last three years was as follows ($ in thousands): Twelve months ended December 31, 2017 2016 2015 Lease expense $ 6,505 $ 6,688 $ 9,611 Contingencies Based on the criteria established by the Contingencies topic of the FASC, we have the following loss contingencies for which we accrue in our financial statements: • Legal and regulatory proceedings Note 13 • Allowances for uncollectible accounts Note 15 For each item listed above, please refer to the notes referenced for additional discussion. |
Additional Information
Additional Information | 12 Months Ended |
Dec. 31, 2017 | |
Additional Information [Abstract] | |
Additional Information | Additional Information Allowances for Uncollectible Accounts Agents’ balances and premium receivable included in the Consolidated Balance Sheets are net of allowances for uncollectible accounts. The provision for such losses is included in commissions and other underwriting expenses. A progression of the aggregate allowance follows ($ in thousands): 2017 2016 2015 Beginning balance $ 14,207 $ 15,385 $ 15,510 Provision for losses 15,761 17,095 19,080 Uncollectible amounts written off (14,707 ) (18,273 ) (19,204 ) Ending balance $ 15,262 $ 14,207 $ 15,385 Negative Cash Book Balances Negative cash book balances, included in the line item “Other liabilities” in the Consolidated Balance Sheets, were $49.7 million , $40.6 million and $41.4 million at December 31, 2017 , 2016 and 2015 , respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Accumulated Other Comprehensive Income | The components of other comprehensive income before and after tax are as follows ($ in thousands): Twelve months ended December 31, 2017 Before Tax Income Tax Net Accumulated change in post-retirement benefit liability, beginning of period $ 1,033 $ (361 ) $ 671 Effect on other comprehensive income (204 ) 71 (133 ) Accumulated change in post-retirement benefit liability, end of period 829 (290 ) 539 Accumulated unrealized gains on investments, net, beginning of period 11,133 (3,896 ) 7,236 Other comprehensive income before reclassification 19,509 (6,085 ) 13,424 Reclassification adjustment for OTTI losses included in net income 3,123 (1,093 ) 2,030 Reclassification adjustment for realized gains included in net income (5,343 ) 1,870 (3,473 ) Effect on other comprehensive income 17,288 (5,308 ) 11,981 Accumulated unrealized gains on investments, net, end of period 28,421 (9,204 ) 19,217 Accumulated other comprehensive income, beginning of period 12,165 (4,258 ) 7,907 Change in post-retirement benefit liability (204 ) 71 (133 ) Change in unrealized gains on investments, net 17,288 (5,308 ) 11,981 Effect on other comprehensive income 17,085 (5,236 ) 11,848 Accumulated other comprehensive income, end of period $ 29,250 $ (9,494 ) $ 19,756 Twelve months ended December 31, 2016 Accumulated change in post-retirement benefit liability, beginning of period $ 944 $ (331 ) $ 614 Effect on other comprehensive income 88 (31 ) 57 Accumulated change in post-retirement benefit liability, end of period 1,033 (361 ) 671 Accumulated unrealized gains on investments, net, beginning of period 11,072 (3,875 ) 7,197 Other comprehensive income before reclassification 3,205 (1,122 ) 2,084 Reclassification adjustment for OTTI losses included in net income 375 (131 ) 243 Reclassification adjustment for realized gains included in net income (3,519 ) 1,232 (2,287 ) Effect on other comprehensive income 61 (21 ) 40 Accumulated unrealized gains on investments, net, end of period 11,133 (3,896 ) 7,236 Accumulated other comprehensive income, beginning of period 12,016 (4,206 ) 7,811 Change in post-retirement benefit liability 88 (31 ) 57 Change in unrealized gains on investments, net 61 (21 ) 40 Effect on other comprehensive income 149 (52 ) 97 Accumulated other comprehensive income, end of period $ 12,165 $ (4,258 ) $ 7,907 Twelve months ended December 31, 2015 Before Tax Income Tax Net Accumulated change in post-retirement benefit liability, beginning of period $ 174 $ (61 ) $ 113 Effect on other comprehensive income 771 (270 ) 501 Accumulated change in post-retirement benefit liability, end of period 944 (331 ) 614 Accumulated unrealized gains on investments, net, beginning of period 35,972 (12,590 ) 23,382 Other comprehensive income before reclassification (22,091 ) 7,732 (14,359 ) Reclassification adjustment for OTTI losses included in net income 1,294 (453 ) 841 Reclassification adjustment for realized gains included in net income (4,102 ) 1,436 (2,667 ) Effect on other comprehensive income (24,900 ) 8,715 (16,185 ) Accumulated unrealized gains on investments, net, end of period 11,072 (3,875 ) 7,197 Accumulated other comprehensive income, beginning of period 36,145 (12,651 ) 23,494 Change in post-retirement benefit liability 771 (270 ) 501 Change in unrealized gains on investments, net (24,900 ) 8,715 (16,185 ) Effect on other comprehensive income (24,129 ) 8,445 (15,684 ) Accumulated other comprehensive income, end of period $ 12,016 $ (4,206 ) $ 7,811 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We manage our business based on product line and have three operating segments: Personal Auto, Commercial Auto and Classic Collector (our reportable segments are Personal Auto and Commercial Auto). Our Personal Auto product provides coverage to individuals for liability to others for bodily injury and property damage and for physical damage to an insured's own vehicle from collision and various other perils. In addition, some states require policies to provide for first party personal injury protection, frequently referred to as no-fault coverage. Our Commercial Auto product provides coverage to businesses for liability to others for bodily injury and property damage and for physical damage to vehicles from collision and various other perils. We primarily target businesses with fleets of 10 or fewer vehicles and average 1.9 vehicles per policy. We avoid businesses that are involved in what we consider to be hazardous operations or interstate commerce. Our Classic Collector product provides coverage to individuals with classic or antique automobiles for liability to others for bodily injury and property damage and for physical damage to an insured's own vehicle from collision and various other perils. Expense allocations are based on certain assumptions and estimates primarily related to revenue and volume. Depreciation and amortization expense, related to investments and debt issuance costs, are not allocated to a segment level. Total depreciation and amortization expense for 2017 , 2016 and 2015 was $37.7 million , $35.0 million and $34.7 million , respectively. All segment revenues are generated from external customers. The following table provides revenues by segment and a reconciliation to "Total revenues" as reported on the Consolidated Statements of Earnings ($ in thousands): Twelve months ended December 31, Gross written premium: 2017 2016 2015 Personal Auto $ 1,217,384 $ 1,240,037 $ 1,246,492 Commercial Auto 163,389 145,272 126,036 Classic Collector 16,520 16,105 15,339 Total gross written premium 1,397,294 1,401,414 1,387,866 Ceded reinsurance: Personal Auto (6,366 ) (4,036 ) (3,301 ) Commercial Auto (1) (2,895 ) (4,098 ) (10,679 ) Classic Collector (1,180 ) (821 ) (600 ) Total ceded reinsurance (10,441 ) (8,955 ) (14,579 ) Net written premium: Personal Auto 1,211,019 1,236,001 1,243,191 Commercial Auto 160,494 141,174 115,357 Classic Collector 15,340 15,284 14,739 Total net written premium 1,386,853 1,392,459 1,373,287 Change in unearned premium: Personal Auto (3,068 ) 10,401 (17,901 ) Commercial Auto (12,164 ) (10,990 ) (8,395 ) Classic Collector (286 ) (205 ) (427 ) Total change in unearned premium (15,517 ) (795 ) (26,723 ) Earned premium: Personal Auto 1,207,951 1,246,402 1,225,290 Commercial Auto 148,330 130,183 106,962 Classic Collector 15,055 15,079 14,312 Total earned premium 1,371,336 1,391,664 1,346,564 Installment and other fee income: Personal Auto 94,208 97,085 88,738 Commercial Auto 11,556 10,276 8,015 Classic Collector 0 0 0 Total installment and other fee income 105,764 107,361 96,753 Net investment income 37,262 35,537 36,800 Net realized gains on investments 2,220 3,145 2,809 Other income 1,404 1,000 1,106 Total revenues $ 1,517,987 $ 1,538,706 $ 1,484,032 (1) Effective June 1, 2016, we modified the terms on our excess or loss reinsurance contract for our commercial auto business. Premium ceded for the twelve months ended December 31, 2016, includes the return of $5.9 million of unearned premium due to the termination of the previous excess of loss contract. Effective June 1, 2017, the premium paid for our excess of loss reinsurance contract for our commercial auto business is based on earned premium rather than written premium. Premium ceded during the twelve months ended December 31, 2017 includes the return of $2.6 million of unearned premium due to the termination of the previous excess of loss contract. Our management uses underwriting income and combined ratios calculated on a statutory accident year basis as primary measures of profitability. Statutory accident year underwriting income is calculated by subtracting losses and loss adjustment expenses and commissions and other underwriting expenses (including bad debt charge-offs on agents' balances and premium receivables) from the total of earned premium and installment and other fee income. The statutory accident year combined ratio represents the sum of the following ratios: (i) losses and LAE incurred, excluding development from prior accident years, as a percentage of net earned premium; and (ii) underwriting expenses incurred, including bad debt and net of fees, as a percentage of net written premium. The primary differences between the calculation of the statutory accident year used by management and the statutory calendar year combined ratios is the exclusion of bad debt charge-offs and the inclusion of development on prior accident year loss and LAE reserves. Certain expenses are treated differently under statutory accounting principles. Under GAAP, commissions, premium taxes and other variable costs incurred in connection with successfully writing new and renewal business are capitalized as deferred policy acquisition costs and amortized on a pro rata basis over the period in which the related premium is earned. On a statutory basis, these items are expensed as incurred. Additionally, bad debt charge-offs on agents' balances and premium receivables are included in the GAAP combined ratios. The following tables present the underwriting income and combined ratio on a statutory accident year basis with reconciliations to "Earnings before income taxes" as presented on the Consolidated Statements of Earnings ($ in thousands). We do not allocate assets or "Provision for income taxes" to operating segments. Twelve months ended December 31, 2017 Personal Auto Commercial Auto Classic Collector Total Pre-tax Profit (Loss) Combined Ratio (1) Pre-tax Profit (Loss) Combined Ratio (1) Pre-tax Profit (Loss) Combined Ratio (1) Pre-tax Profit (Loss) Combined Ratio (1) Statutory accident year underwriting income $ 46,924 96.1 % $ 4,544 95.5 % $ (438 ) 102.2 % $ 51,029 96.1 % Bad debt charge-offs 13,652 1,921 43 15,616 Favorable (unfavorable) development on prior accident years 23,395 (5,466 ) 564 18,494 Statutory calendar year underwriting income 83,971 93.0 % 999 98.0 % 169 98.2 % 85,139 93.6 % Statutory-to-GAAP underwriting income differences (19,017 ) GAAP calendar year underwriting income 66,122 95.2 % Net investment income 37,262 Net realized gains on investments 2,220 Other income 1,404 Interest expense (14,043 ) Corporate general and administrative expenses (9,769 ) Other expenses (2,470 ) Earnings before income taxes $ 80,727 (1) Management includes the provision for uncollectible accounts in the underwriting income and combined ratio on both statutory accident year and GAAP calendar year bases. Twelve months ended December 31, 2016 Personal Auto Commercial Auto Classic Collector Total Pre-tax Profit (Loss) Combined Ratio (1) Pre-tax Profit (Loss) Combined Ratio (1) Pre-tax Profit (Loss) Combined Ratio (1) Pre-tax Profit (Loss) Combined Ratio (1) Statutory accident year underwriting income $ 21,766 98.4 % $ 1,905 97.0 % $ 1,022 92.8 % $ 24,692 98.2 % Bad debt charge-offs 15,150 1,784 50 16,984 Favorable (unfavorable) development on prior accident years 27,958 (3,582 ) (375 ) 24,001 Statutory calendar year underwriting income 64,874 94.9 % 106 98.5 % 697 94.9 % 65,677 95.3 % Statutory-to-GAAP underwriting income differences (19,555 ) GAAP calendar year underwriting income 46,122 96.7 % Net investment income 35,537 Net realized gains on investments 3,145 Other income 1,000 Interest expense (14,037 ) Corporate general and administrative expenses (7,899 ) Other expenses (1,736 ) Earnings before income taxes $ 62,132 (1) Management includes the provision for uncollectible accounts in the underwriting income and combined ratio on both statutory accident year and GAAP calendar year bases. Twelve months ended December 31, 2015 Personal Auto Commercial Auto Classic Collector Total Pre-tax Profit (Loss) Combined Ratio (1) Pre-tax Profit (Loss) Combined Ratio (1) Pre-tax Profit (Loss) Combined Ratio (1) Pre-tax Profit (Loss) Combined Ratio (1) Statutory accident year underwriting income $ 24,876 97.7 % $ 876 97.8 % $ 2,063 84.7 % $ 27,815 97.6 % Bad debt charge-offs 17,413 1,557 44 19,013 Favorable (unfavorable) development on prior accident years 33,633 (5,176 ) 469 28,926 Statutory calendar year underwriting income 75,922 93.6 % (2,743 ) 101.3 % 2,576 81.1 % 75,754 94.0 % Statutory-to-GAAP underwriting income differences (16,658 ) GAAP calendar year underwriting income 59,096 95.6 % Net investment income 36,800 Net realized gains on investments 2,809 Other income 1,106 Interest expense (14,029 ) Corporate general and administrative expenses (7,655 ) Other expenses (3,296 ) Earnings before income taxes $ 74,832 (1) Management includes the provision for uncollectible accounts in the underwriting income and combined ratio on both statutory accident year and GAAP calendar year bases. |
Subsequent Event Subsequent Eve
Subsequent Event Subsequent Event | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Events On February 13, 2018, we announced the execution of an agreement whereby, subject to applicable regulatory approvals and the approval of our shareholders and other conditions described in the Form 10-K, Infinity will merge with and into Kemper Corporation. Kemper will be the surviving company in the merger and Infinity will become a subsidiary of Kemper. |
SCHEDULE II _ CONDENSED FINANCI
SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF REGISTRANT | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT | INFINITY PROPERTY AND CASUALTY CORPORATION – PARENT ONLY SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF REGISTRANT Condensed Balance Sheets ($ in thousands) December 31, 2017 2016 Assets: Investment in subsidiaries $ 816,153 $ 810,017 Fixed maturities – at fair value (amortized cost $136,563 and $132,039) 135,632 130,563 Equity securities – at fair value (cost $2,372 and $1,908) 2,628 1,991 Short-term investments - at fair value (amortized cost $506 and $509) 506 508 Cash and cash equivalents 34,833 25,384 Other assets 14,226 14,276 Total assets $ 1,003,977 $ 982,739 Liabilities and Shareholders’ Equity: Long-term debt 273,809 273,591 Other liabilities 8,992 8,970 Payable to affiliates 895 991 Shareholders’ equity 720,281 699,187 Total liabilities and shareholders’ equity $ 1,003,977 $ 982,739 Condensed Statements of Earnings ($ in thousands) Twelve months ended December 31, 2017 2016 % Change 2015 % Change Income: Income in equity of subsidiaries $ 58,971 $ 55,734 5.8 % $ 63,511 (12.2 )% Net investment income 2,897 2,412 20.1 % 2,074 16.3 % Realized (loss) gain on investments (460 ) 117 (492.4 )% 77 51.4 % Other income 0 0 0.0 % 1 (100.0 )% Total income 61,408 58,263 5.4 % 65,663 (11.3 )% Costs and Expenses: Interest expense 13,968 13,958 0.1 % 13,947 0.1 % Corporate general and administrative expenses 9,769 7,899 23.7 % 7,655 3.2 % Other expense 0 18 (100.0 )% 26 (31.8 )% Total expenses 23,737 21,874 8.5 % 21,628 1.1 % Earnings before income taxes 37,671 36,389 3.5 % 44,035 (17.4 )% Provision for income taxes (7,713 ) (6,696 ) 15.2 % (7,445 ) (10.1 )% Net earnings $ 45,384 $ 43,085 5.3 % $ 51,481 (16.3 )% INFINITY PROPERTY AND CASUALTY CORPORATION – PARENT ONLY Condensed Statements of Cash Flows ($ in thousands) Twelve months ended December 31, 2017 2016 2015 Operating Activities: Net income $ 45,384 $ 43,085 $ 51,481 Equity in consolidated subsidiaries (58,971 ) (55,734 ) (63,511 ) Excess tax benefits from share-based payment arrangements 0 157 298 Other 5,349 2,800 2,910 Net cash used in operating activities (8,238 ) (9,692 ) (8,822 ) Investing Activities: Purchases of fixed maturities (44,698 ) (36,202 ) (35,477 ) Purchases of short-term investments (515 ) (1,905 ) (1,602 ) Maturities and redemptions of fixed maturities 19,947 25,904 15,410 Maturities and redemptions of short-term investments 500 1,370 1,285 Proceeds from sale of fixed maturities 17,236 13,874 14,784 Proceeds from sale of short-term investments 0 1,061 0 Dividends received from subsidiary (1) 66,000 38,378 52,726 Net cash provided by investing activities 58,470 42,481 47,126 Financing Activities: Proceeds from stock options exercised and employee stock purchases 285 256 259 Acquisition of treasury stock (15,535 ) (11,953 ) (29,481 ) Dividends paid to shareholders (25,533 ) (22,993 ) (19,528 ) Net cash used in financing activities (40,783 ) (34,691 ) (48,750 ) Net increase (decrease) in cash and cash equivalents 9,449 (1,902 ) (10,445 ) Cash and cash equivalents at beginning of period 25,384 27,286 37,731 Cash and cash equivalents at end of period $ 34,833 $ 25,384 $ 27,286 (1) The parent received $21.6 million and $15.7 million in the form of securities from subsidiaries in 2016 and 2015 , respectively, not reflected in the above cash flows. |
SCHEDULE III - SUPPLEMENTARY IN
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION | 12 Months Ended |
Dec. 31, 2017 | |
Supplementary Insurance Information [Abstract] | |
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION | SCHEDULE III – SUPPLEMENTARY INSURANCE INFORMATION THREE YEARS ENDED DECEMBER 31, 2017 ($ in thousands) COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E COLUMN F COLUMN COLUMN COLUMN COLUMN COLUMN Segment Deferred Policy Acquisition Costs Future Policy Benefits, Losses, Claims and Loss Expenses Unearned Premium Other Policy Claims and Benefits Payable Premium Revenue Net Investment Income (1) Benefits, Claims, Losses, and Settlement Expenses Amortization of Deferred Policy Acquisition Costs Other Operating Expenses Premiums Written 2017 Personal Auto $ 75,486 $ 574,224 $ 536,504 $ 1,207,951 $ 922,826 $ 179,584 $ 133,751 $ 1,211,019 Commercial Auto 11,657 134,953 82,852 148,330 121,434 18,927 19,471 160,494 Classic Collector 1,156 5,921 8,219 15,055 9,437 2,197 3,351 15,340 Total $ 88,300 $ 715,098 $ 627,575 $ 0 $ 1,371,336 $ 37,262 $ 1,053,697 $ 200,708 $ 156,573 $ 1,386,853 2016 Personal Auto $ 79,429 $ 573,249 $ 533,436 $ 1,246,402 $ 981,360 $ 185,473 $ 130,772 $ 1,236,001 Commercial Auto 10,526 106,956 72,978 130,183 106,031 19,363 15,448 141,174 Classic Collector 1,181 5,250 7,934 15,079 9,364 2,247 2,845 15,284 Total $ 91,136 $ 685,455 $ 614,347 $ 0 $ 1,391,664 $ 35,537 $ 1,096,755 $ 207,083 $ 149,065 $ 1,392,459 2015 Personal Auto $ 82,881 $ 580,983 $ 543,837 $ 1,225,290 $ 937,694 $ 185,325 $ 131,277 $ 1,243,191 Commercial Auto 9,098 85,040 65,084 106,962 90,849 16,176 11,153 115,357 Classic Collector 1,178 3,942 7,728 14,312 7,459 2,167 2,122 14,739 Total $ 93,157 $ 669,965 $ 616,649 $ 0 $ 1,346,564 $ 36,800 $ 1,036,001 $ 203,667 $ 144,552 $ 1,373,287 (1) We do not allocate investment income to operating segments. |
Significant Reporting and Acc28
Significant Reporting and Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations We write personal auto insurance with a concentration on nonstandard auto insurance, commercial auto insurance and classic collector auto insurance. Personal auto insurance accounts for 87% of our total gross written premium and we primarily write it in four states. We wrote approximately 53% of our personal auto gross written premium in the state of California during 2017 . |
Basis of Consolidation and Reporting | Basis of Consolidation and Reporting The accompanying consolidated financial statements include our accounts and those of our subsidiaries. These financial statements reflect certain adjustments necessary for a fair presentation of our results of operations and financial position. Such adjustments consist of normal, recurring accruals recorded to accurately match expenses with their related revenue streams and the elimination of all significant intercompany transactions and balances. We have evaluated events that occurred after December 31, 2017 , for recognition or disclosure in our financial statements and the notes to the financial statements. Schedules may not foot due to rounding. |
Estimates | Estimates The preparation of the financial statements in conformity with generally accepted accounting principles of the United States requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Changes in circumstances could cause actual results to differ materially from those estimates. |
Investments | Investments We consider all fixed maturity and equity securities “available for sale” and report them at fair value with net unrealized gains or losses reported after-tax (net of any valuation allowance) as a component of accumulated other comprehensive income within shareholders' equity. We base the fair values of investments on prices quoted in the most active market for each security. If quoted prices are not available, we estimate fair value based on the fair value of comparable securities, discounted cash flow models or similar methods. We treat premium and discounts on mortgage-backed securities (MBS) and asset-backed securities (ABS) as a yield adjustment over the estimated life of the securities, adjusted for anticipated prepayments, using the interest method. We base prepayment assumptions on data from widely accepted third party data sources or internal estimates. We review the amortized cost and effective yield of the security periodically and adjust it to reflect actual prepayments and changes in expectations. For high credit quality MBS and ABS (those rated AA or above at the time of purchase), the adjustments to amortized cost are recorded as a charge or credit to net investment income in accordance with the retrospective method. For MBS and ABS rated below AA, we adjust the yield prospectively for any changes in estimated cash flows. Gains or losses on securities are determined on the specific identification basis. When we consider impairment in the value of a specific investment other-than-temporary (OTTI), the cost basis of that investment is reduced. For fixed maturity securities that are OTTI, we assess our intent to sell and the likelihood that we will be required to sell the security before recovery of our amortized cost. If a fixed maturity security is considered OTTI, but we do not intend to and are not more than likely to be required to sell the security prior to its recovery to amortized cost, the amount of the impairment is separated into a credit loss component and the amount due to all other factors. The excess of the amortized cost over the present value of the expected cash flows determines the credit loss component of an impairment charge on a fixed maturity security. The present value is determined using the best estimate of cash flows discounted at (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. Securities having a fair value of approximately $19.8 million at December 31, 2017 , were on deposit as required by regulatory authorities. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider liquid investments having original maturities of three months or less when purchased to be cash equivalents for purposes of the financial statements. |
Reinsurance | Reinsurance Our insurance subsidiaries cede insurance to other companies. To the extent that any reinsuring companies are unable to meet obligations under agreements covering reinsurance ceded, our insurance subsidiaries would remain liable. We estimate amounts recoverable from reinsurers in a manner consistent with the claim liability associated with the reinsured policies. Our insurance subsidiaries report as assets (i) the estimated reinsurance recoverable on unpaid losses; and (ii) amounts paid to reinsurers applicable to the unexpired terms of policies in force. |
Advertising | Advertising Advertising costs are charged to expense as incurred. Total advertising costs were $11.1 million , $9.7 million and $9.1 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. |
Deferred Policy Acquisition Costs (DPAC) | Deferred Policy Acquisition Costs (DPAC) Policy acquisition costs (principally commissions, premium taxes and other marketing and underwriting expenses) related to the successful production of premium writings are deferred and charged against income ratably over the terms of the related policies. The method followed in computing DPAC limits the amount of such costs to their estimated realizable value without any consideration for anticipated investment income. Each quarter, we evaluate the recoverability of these costs. The DPAC amortization expense recognized in the Consolidated Statements of Earnings during 2017 , 2016 and 2015 was $200.7 million , $207.1 million and $203.7 million , respectively. |
Goodwill | Goodwill In accordance with the Goodwill topic of the FASB Accounting Standards Codification (FASC), we perform impairment test procedures for goodwill on an annual basis. These procedures require us to calculate the fair value of goodwill, compare the result to our carrying value and record the amount of any shortfall as an impairment charge. We performed this test as of October 1, 2017 , using a variety of methods, including estimates of future discounted cash flows and comparisons of our market value to that of our major competitors. Our cash flow projections rely on assumptions that are subject to uncertainty, including premium growth, loss and loss adjustment expense ratios, interest rates and capital requirements. The October 1, 2017 , test results indicated that the fair value of our goodwill exceeded our carrying value and therefore no impairment charge was required at that date. Additionally, there was no indication of impairment at December 31, 2017 . |
Unpaid Losses and Loss Adjustment Expense (LAE) | Unpaid Losses and Loss Adjustment Expenses (LAE) The net liabilities stated for unpaid claims and for expenses of investigation and adjustment of unpaid claims are based upon (i) the accumulation of case estimates for losses reported prior to the close of the accounting period on direct business written; (ii) estimates received from ceding reinsurers and insurance pools and associations; (iii) estimates of unreported losses based on past experience; (iv) estimates based on experience of expenses for investigating and adjusting claims; and (v) the current state of the law and coverage litigation. These liabilities are subject to the impact of changes in claim amounts and frequency and other factors. We have not reduced liabilities for unpaid losses and LAE for reinsurance recoverables; such recoverables are recorded separately as assets. Changes in estimates of the liabilities for losses and LAE are reflected in the Consolidated Statements of Earnings in the period in which determined. In spite of the variability inherent in such estimates, we believe that the liabilities for unpaid losses and LAE are adequate. |
Premium and Receivables | Premium and Receivables We earn insurance premium written over the terms of the policies on a pro rata basis. Unearned premium represents that portion of premium written which is applicable to the unexpired terms of policies in force. On reinsurance assumed from other insurance companies or written through various underwriting organizations, we base unearned premium on reports received from such companies and organizations. We provide insurance and related services to individuals and small commercial accounts throughout the United States and offer a variety of payment plans. We establish an allowance for doubtful accounts based on the relationship, on a policy basis, between receivables and unearned premium, or an aging analysis of past due balances. We charge off premium due from insureds if not collected within 90 days of the policies' expiration or cancellation dates. However, even after we charge off premium, attempts to collect the premium continue. |
Income Taxes | Income Taxes We file a consolidated federal income tax return, which includes all 80% and greater owned U.S. subsidiaries. We and our 80% and greater owned subsidiaries are parties to a tax allocation agreement, which designates how members of the tax group share tax payments. In general, each subsidiary agrees to pay us taxes computed on a separate company taxable income basis. We agree to pay each subsidiary for the tax benefit, if any, of net losses used by other members of the consolidated group. We calculate deferred income taxes using the “asset and liability method.” Under this method, deferred income tax assets and liabilities are determined based on differences between financial reporting and tax basis and are measured using enacted tax rates. We recognize deferred tax assets if it is more likely than not that a benefit will be realized. We aggregate current and deferred tax assets and liabilities on the Consolidated Balance Sheets. |
Property and Equipment | Property and Equipment We report property and equipment balances at cost less accumulated depreciation. Property and equipment, which consists of land, buildings, leasehold improvements, computer equipment, capitalized software and furniture and fixtures, consisted of the following balances as of December 31, 2017 ($ in millions): Gross Asset Accumulated Depreciation Net Asset Real estate related $ 69.8 $ (9.6 ) $ 60.2 Computer equipment & software 82.9 (66.9 ) 16.0 Furniture & fixtures 14.5 (8.2 ) 6.3 Total $ 167.2 $ (84.8 ) $ 82.5 We recognized $1.5 million , net of accumulated depreciation of $1.6 million , of equipment held under capital leases in other assets on the Consolidated Balance Sheets with the related lease obligations recorded in other liabilities. We compute depreciation over the estimated useful lives of the assets using the straight-line method. Property and equipment is a separate line item on the Consolidated Balance Sheets and we allocate the related expenses, including amortization of assets recorded under capital leases, to one or more of the following line items on the Consolidated Statements of Earnings depending on the asset: "Losses and loss adjustment expenses," "Commissions and other underwriting expenses," "Corporate general and administrative expenses" or "Other expenses." |
Benefit Plans | Benefit Plans We provide retirement benefits to qualified employees and healthcare and life insurance benefits to eligible retirees. We also provide post-employment benefits to former or inactive employees (primarily those on disability) who were not deemed retired under other company plans. The projected future cost of providing these benefits is expensed over the period the employees earn such benefits. |
Recently Adopted and Issued Accounting Standards | Recently Adopted 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. We adopted the change to the presentation of excess tax benefits on the consolidated statements of cash flow retrospectively and all other portions of the standard prospectively as of January 1, 2017. We reclassified $0.2 million and $0.3 million of excess tax benefits from financing activities to operating activities for the twelve months ended December 31, 2016 and December 31, 2015, respectively. The adoption of this standard did not have a material impact on our financial condition or results of operations. Recently Issued Accounting Standards In March 2017 the FASB issued an ASU related to the amortization of premium on purchased callable debt securities. The guidance amends the amortization period for certain purchased callable debt securities held at a premium. Securities that contain explicit, noncontingent call features that are callable at fixed prices and on preset dates should shorten the amortization period for the premium to the earliest call date (and if the call option is not exercised, the effective yield is reset using the payment terms of the debt security). The standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, and is to be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings. We do not expect the adoption of this standard to have a material impact on our financial condition or results of operations. In October 2016 the FASB issued an ASU related to the recognition of income tax on intra-entity transfers of assets other than inventory. The guidance requires the income tax to be recognized when the transfer occurs rather than when the asset is sold to an outside party. The standard is effective for annual periods beginning after December 15, 2017, and interim periods within the year of adoption, and is to be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. We do not expect the adoption of this standard to have a material impact on our financial condition or results of operations. In June 2016 the FASB issued an ASU related to the accounting for credit losses. The guidance generally requires credit losses on available-for-sale debt securities to be recognized as an allowance rather than as a reduction to the amortized cost of a security. The standard is effective for fiscal periods beginning after December 15, 2019, and interim periods within the year of adoption, with prospective application of the ASU required for debt securities for which an other-than-temporary impairment has been recognized before the implementation date. 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 do not expect the adoption of this standard to have a material impact on our financial condition or results of operations. 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 December 31, 2017 , we have $17.7 million net unrealized gains, net of tax, recognized as a component of other comprehensive income. 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. As an insurance-entity, we are largely exempt from the provisions of this standard, with only fee income subject to this new standard. Processing and policy fees are largely earned at the inception of the policy under current guidance but will be earned over the life of the policy under the new revenue recognition guidance. We will adopt using a full retrospective approach and will record a cumulative-effect adjustment to the balance sheet reducing shareholders' equity by $4.5 million on January 1, 2018. |
Significant Reporting and Acc29
Significant Reporting and Accounting Policies Significant Reporting and Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Property, Plant and Equipment | Property and Equipment We report property and equipment balances at cost less accumulated depreciation. Property and equipment, which consists of land, buildings, leasehold improvements, computer equipment, capitalized software and furniture and fixtures, consisted of the following balances as of December 31, 2017 ($ in millions): Gross Asset Accumulated Depreciation Net Asset Real estate related $ 69.8 $ (9.6 ) $ 60.2 Computer equipment & software 82.9 (66.9 ) 16.0 Furniture & fixtures 14.5 (8.2 ) 6.3 Total $ 167.2 $ (84.8 ) $ 82.5 We recognized $1.5 million , net of accumulated depreciation of $1.6 million , of equipment held under capital leases in other assets on the Consolidated Balance Sheets with the related lease obligations recorded in other liabilities. We compute depreciation over the estimated useful lives of the assets using the straight-line method. Property and equipment is a separate line item on the Consolidated Balance Sheets and we allocate the related expenses, including amortization of assets recorded under capital leases, to one or more of the following line items on the Consolidated Statements of Earnings depending on the asset: "Losses and loss adjustment expenses," "Commissions and other underwriting expenses," "Corporate general and administrative expenses" or "Other expenses." |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair value by hierarchy | The following tables present, for each of the fair value hierarchy levels, our assets and liabilities for which we report fair value on a recurring basis ($ in thousands): Fair Value December 31, 2017 Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 107,589 $ 0 $ 0 $ 107,589 Fixed maturity securities: U.S. government 60,528 0 0 60,528 State and municipal 0 490,724 3,488 494,211 Mortgage-backed securities: Residential 0 350,992 0 350,992 Commercial 0 30,569 0 30,569 Total mortgage-backed securities 0 381,561 0 381,561 Asset-backed securities 0 62,266 152 62,418 Corporates 0 442,281 108 442,390 Total fixed maturities 60,528 1,376,832 3,748 1,441,107 Equity securities 96,004 0 0 96,004 Short-term investments 0 2,541 0 2,541 Total cash and investments $ 264,121 $ 1,379,373 $ 3,748 $ 1,647,242 Percentage of total cash and investments 16.0 % 83.7 % 0.2 % 100.0 % December 31, 2016 Cash and cash equivalents $ 92,800 $ 0 $ 0 $ 92,800 Fixed maturity securities: U.S. government 62,480 5 0 62,485 State and municipal 0 472,471 3,860 476,331 Mortgage-backed securities: Residential 0 340,367 0 340,367 Commercial 0 69,801 0 69,801 Total mortgage-backed securities 0 410,169 0 410,169 Asset-backed securities 0 37,196 412 37,608 Corporates 0 402,909 666 403,575 Total fixed maturities 62,480 1,322,749 4,938 1,390,167 Equity securities 90,640 0 0 90,640 Short-term investments 769 2,139 0 2,907 Total cash and investments $ 246,689 $ 1,324,888 $ 4,938 $ 1,576,514 Percentage of total cash and investments 15.6 % 84.0 % 0.3 % 100.0 % |
Fair value level 3 reconciliation | The following tables present the progression in the Level 3 fair value category ($ in thousands): Twelve months ended December 31, 2017 State and Municipal Corporates Asset-Backed Securities Total Balance at beginning of period $ 3,860 $ 666 $ 412 $ 4,938 Total (lossses) gains, unrealized or realized Included in net earnings (129 ) 1 0 (127 ) Included in other comprehensive income 3 (30 ) 22 (5 ) Purchases 0 2,000 4,259 6,259 Sales (694 ) 0 0 (694 ) Settlements 0 (530 ) (258 ) (788 ) Transfers in 447 0 0 447 Transfers out 0 (2,000 ) (4,283 ) (6,283 ) Balance at end of period $ 3,488 $ 108 $ 152 $ 3,748 Twelve months ended December 31, 2016 Balance at beginning of period $ 10 $ 1,524 $ 0 $ 1,534 Total (losses) gains, unrealized or realized Included in net earnings (25 ) 12 0 (13 ) Included in other comprehensive income (10 ) (60 ) 3 (67 ) Purchases 0 0 620 620 Settlements (10 ) (810 ) (209 ) (1,029 ) Transfers in 3,894 0 1,338 5,232 Transfers out 0 0 (1,339 ) (1,339 ) Balance at end of period $ 3,860 $ 666 $ 412 $ 4,938 |
Carrying value and estimated fair value | The following table presents the carrying value and estimated fair value of our financial instruments ($ in thousands): December 31, 2017 December 31, 2016 Carrying Value Fair Value Carrying Value Fair Value Assets: Cash and cash equivalents $ 107,589 $ 107,589 $ 92,800 $ 92,800 Available-for-sale securities: Fixed maturities 1,441,107 1,441,107 1,390,167 1,390,167 Equity securities 96,004 96,004 90,640 90,640 Short-term investments 2,541 2,541 2,907 2,907 Total cash and investments $ 1,647,242 $ 1,647,242 $ 1,576,514 $ 1,576,514 Liabilities: Long-term debt $ 273,809 $ 290,824 $ 273,591 $ 278,726 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Summarized information of investment portfolio | Summarized information for the major categories of our investment portfolio follows ($ in thousands): December 31, 2017 Amortized Cost or Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI Recognized in Accumulated OCI (1) Fixed maturities: U.S. government $ 61,196 $ 0 $ (668 ) $ 60,528 $ 0 State and municipal 492,442 2,768 (999 ) 494,211 (46 ) Mortgage-backed securities: Residential 353,277 1,812 (4,097 ) 350,992 (1,479 ) Commercial 31,204 18 (653 ) 30,569 0 Total mortgage-backed securities 384,481 1,830 (4,750 ) 381,561 (1,479 ) Asset-backed securities 62,552 62 (196 ) 62,418 (8 ) Corporates 439,208 4,610 (1,429 ) 442,390 (31 ) Total fixed maturities 1,439,878 9,271 (8,042 ) 1,441,107 (1,564 ) Equity securities 68,812 27,192 0 96,004 0 Short-term investments 2,541 0 0 2,541 0 Total $ 1,511,232 $ 36,463 $ (8,042 ) $ 1,539,653 $ (1,564 ) December 31, 2016 Fixed maturities: U.S. government $ 62,808 $ 55 $ (377 ) $ 62,485 $ 0 State and municipal 477,834 2,313 (3,816 ) 476,331 (51 ) Mortgage-backed securities: Residential 343,095 2,306 (5,034 ) 340,367 (1,967 ) Commercial 70,676 63 (939 ) 69,801 0 Total mortgage-backed securities 413,772 2,369 (5,972 ) 410,169 (1,967 ) Asset-backed securities 37,562 93 (47 ) 37,608 (8 ) Corporates 400,685 4,389 (1,499 ) 403,575 (41 ) Total fixed maturities 1,392,660 9,219 (11,711 ) 1,390,167 (2,068 ) Equity securities 77,013 13,627 0 90,640 0 Short-term investments 2,909 0 (2 ) 2,907 0 Total $ 1,472,582 $ 22,846 $ (11,713 ) $ 1,483,714 $ (2,068 ) (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 December 31, 2017 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 25 $ 46,160 $ (422 ) 0.9 % 16 $ 14,368 $ (246 ) 1.7 % State and municipal 82 163,997 (939 ) 0.6 % 5 10,529 (60 ) 0.6 % Mortgage-backed securities: Residential 154 81,841 (453 ) 0.6 % 279 127,317 (3,644 ) 2.8 % Commercial 2 3,578 (30 ) 0.8 % 9 23,066 (623 ) 2.6 % Total mortgage-backed securities 156 85,419 (483 ) 0.6 % 288 150,383 (4,267 ) 2.8 % Asset-backed securities 31 35,407 (193 ) 0.5 % 2 1,561 (3 ) 0.2 % Corporate 104 158,788 (1,197 ) 0.7 % 13 16,468 (232 ) 1.4 % Total fixed maturities 398 489,771 (3,233 ) 0.7 % 324 193,309 (4,809 ) 2.4 % 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 398 $ 489,771 $ (3,233 ) 0.7 % 324 $ 193,309 $ (4,809 ) 2.4 % December 31, 2016 Fixed maturities: U.S. government 31 $ 47,640 $ (377 ) 0.8 % 0 $ 0 $ 0 0.0 % State and municipal 146 303,428 (3,816 ) 1.2 % 0 0 0 0.0 % Mortgage-backed securities: Residential 381 225,117 (4,559 ) 2.0 % 40 11,891 (474 ) 3.8 % Commercial 14 38,002 (788 ) 2.0 % 7 26,537 (150 ) 0.6 % Total mortgage-backed securities 395 263,119 (5,347 ) 2.0 % 47 38,428 (625 ) 1.6 % Asset-backed securities 9 7,836 (46 ) 0.6 % 1 519 (1 ) 0.1 % Corporate 98 145,089 (1,272 ) 0.9 % 7 7,745 (227 ) 2.8 % Total fixed maturities 679 767,112 (10,859 ) 1.4 % 55 46,693 (852 ) 1.8 % Equity securities 0 0 0 0.0 % 0 0 0 0.0 % Short-term investments 3 2,907 (2 ) 0.1 % 0 0 0 0.0 % Total 682 $ 770,019 $ (10,861 ) 1.4 % 55 $ 46,693 $ (852 ) 1.8 % |
Summary of unrealized gains or losses | The following table summarizes those securities, excluding the rabbi trust, with unrealized gains or losses: December 31, 2017 December 31, 2016 Number of positions held with unrealized: Gains 496 527 Losses 722 737 Number of positions held that individually exceed unrealized: Gains of $500,000 2 1 Losses of $500,000 0 0 Percentage of positions held with unrealized: Gains that were investment grade 81 % 85 % Losses that were investment grade 97 % 97 % Percentage of fair value held with unrealized: Gains that were investment grade 81 % 84 % Losses that were investment grade 95 % 97 % |
Unrealized loss by age and severity | The following table sets forth the amount of unrealized losses, excluding the rabbi trust, by age and severity at December 31, 2017 ($ in thousands): Age of Unrealized Losses Fair Value of Securities with Unrealized Losses Total Gross Unrealized Losses Less Than 5%* 5% - 10%* Total Gross Greater Than 10%* Three months or less $ 316,027 $ (1,498 ) $ (1,498 ) $ 0 $ 0 Four months through six months 161,848 (1,620 ) (1,620 ) 0 0 Seven months through nine months 9,020 (86 ) (86 ) 0 0 Ten months through twelve months 3,748 (39 ) (33 ) (7 ) 0 Greater than twelve months 192,437 (4,799 ) (4,387 ) (412 ) (0 ) Total $ 683,080 $ (8,042 ) $ (7,623 ) $ (419 ) $ (0 ) * As a percentage of amortized cost or cost. |
Change in unrealized gains (losses) on marketable securities | The change in unrealized gains (losses) on securities included the following ($ in thousands): Pre-tax December 31, 2017 Fixed Maturities Equity Securities Short-Term Investments Tax Effects Net Unrealized holding gains (losses) on securities arising during the period $ 446 $ 19,066 $ (4 ) $ (6,085 ) $ 13,424 Realized losses (gains) included in net earnings 160 (5,501 ) (1 ) 1,870 (3,473 ) Impairment losses recognized in net earnings 3,116 0 7 (1,093 ) 2,030 Change in unrealized, net $ 3,722 $ 13,565 $ 2 $ (5,308 ) $ 11,981 December 31, 2016 Unrealized holding (losses) gains on securities arising during the period $ (2,153 ) $ 5,359 $ (0 ) $ (1,122 ) $ 2,084 Realized (gains) losses included in net earnings (671 ) (2,851 ) 3 1,232 (2,287 ) Impairment losses recognized in net earnings 375 0 0 (131 ) 243 Change in unrealized, net $ (2,449 ) $ 2,508 $ 2 $ (21 ) $ 40 December 31, 2015 Unrealized holding losses on securities arising during the period $ (18,699 ) $ (3,388 ) $ (4 ) $ 7,732 $ (14,359 ) Realized gains included in net earnings (2,064 ) (2,039 ) (0 ) 1,436 (2,667 ) Impairment losses recognized in net earnings 1,294 0 0 (453 ) 841 Change in unrealized, net $ (19,469 ) $ (5,427 ) $ (4 ) $ 8,715 $ (16,185 ) For fixed maturity securities that are other-than-temporarily impaired, we assess our intent to sell and the likelihood that we will be required to sell the security before recovery of our amortized cost. If a fixed maturity security is considered other-than-temporarily impaired but we do not intend to and are not more than likely to be required to sell the security before our recovery to amortized cost, the amount of the impairment is separated 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, the entire amount of the impairment is treated as a credit loss. |
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): 2017 2016 Balance at beginning of year $ 557 $ 683 Additions for: Previously impaired securities 299 0 Newly impaired securities 13 0 Reductions for: Reductions for securities sold and paydowns (116 ) (127 ) Balance at end of year $ 753 $ 557 |
Scheduled maturities of fixed maturity securities | Actual maturities may differ from contractual maturities because certain securities may be called or prepaid by the issuers. Fair Value Amortized Cost Maturity Securities with Unrealized Gains Securities with Unrealized Losses Securities with No Unrealized Gains or Losses All Fixed Maturity Securities All Fixed Maturity Securities One year or less $ 27,184 $ 23,139 $ 25,325 $ 75,648 $ 75,568 After one year through five years 245,431 317,699 131,378 694,509 693,370 After five years through ten years 139,337 69,472 14,449 223,257 220,275 After ten years 3,715 0 0 3,715 3,633 Mortgage- and asset-backed securities 126,679 272,770 44,530 443,979 447,032 Total $ 542,346 $ 683,080 $ 215,682 $ 1,441,107 $ 1,439,878 |
Investment income | The following table shows investment income earned and investment expenses incurred ($ in thousands): Twelve months ended December 31, 2017 2016 2015 Gross investment income: Interest income on fixed maturities, cash and cash equivalents $ 37,301 $ 35,528 $ 36,871 Dividends on equity securities 2,174 2,231 2,194 Gross investment income 39,476 37,759 39,065 Investment expenses (2,213 ) (2,222 ) (2,265 ) Net investment income $ 37,262 $ 35,537 $ 36,800 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | December 31, ($ in thousands) 2017 2016 Principal $ 275,000 $ 275,000 Unamortized debt issuance costs 1,191 1,409 Long-term debt less unamortized debt issuance costs $ 273,809 $ 273,591 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of provision for income taxes | The following is a reconciliation of income taxes at the statutory rate of 35.0% to the effective provision for income taxes as shown in the Consolidated Statements of Earnings ($ in thousands): Twelve months ended December 31, 2017 2016 2015 Earnings before income taxes $ 80,727 $ 62,132 $ 74,832 Income taxes at statutory rate 28,254 21,746 26,191 Effect of: Dividends-received deduction (455 ) (466 ) (458 ) Tax-exempt interest (2,442 ) (2,456 ) (2,713 ) Other (198 ) 223 331 Deferred tax rate adjustment 10,184 $ 0 $ 0 Provision for income taxes as shown on the Consolidated Statements of Earnings $ 35,343 $ 19,047 $ 23,351 GAAP effective tax rate 43.8 % 30.7 % 31.2 % |
Components of income tax expense | The total income tax provision consists of ($ in thousands): 2017 2016 2015 Current $ 30,332 $ 14,782 $ 23,133 Deferred 5,011 4,265 218 Provision for income taxes $ 35,343 $ 19,047 $ 23,351 |
Schedule of deferred tax assets and liabilities | The significant components of deferred tax assets and liabilities included in the Consolidated Balance Sheets were as follows ($ in thousands): As of December 31, 2017 2016 Deferred tax assets: Discount on loss reserves $ 5,862 $ 4,853 Unearned premium reserve 26,358 42,844 Bad debts 3,205 4,972 Accrued bonuses 1,937 2,250 Deferred compensation 3,966 6,152 Long-term incentive compensation 740 814 Other 2,683 5,089 Gross deferred tax assets 44,751 66,974 Valuation allowance for deferred tax assets (195 ) (326 ) Total deferred tax assets 44,556 66,648 Deferred tax liabilities: Deferred policy acquisition costs (18,543 ) (31,897 ) Investment securities – unrealized gains (5,966 ) (3,896 ) Fixed assets (2,379 ) (5,037 ) Loss reserve transition liability (3,120 ) 0 Other (382 ) (1,405 ) Total deferred tax liabilities (30,390 ) (42,235 ) Net deferred tax assets 14,166 24,413 Current income tax payable (4,811 ) (2,778 ) Current and deferred income taxes $ 9,355 $ 21,635 |
Computation Of Earnings Per S34
Computation Of Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings per Share | Computation of Net Earnings per Share The following table illustrates our computations of basic and diluted net earnings per common share ($ in thousands, except per share figures): Twelve months ended December 31, 2017 2016 2015 Net earnings $ 45,384 $ 43,085 $ 51,481 Average basic shares outstanding 10,984 11,018 11,334 Basic net earnings per share $ 4.13 $ 3.91 $ 4.54 Average basic shares outstanding 10,984 11,018 11,334 Restricted stock not vested 22 26 16 Dilutive effect of Performance Share Plan 62 57 67 Average diluted shares outstanding 11,067 11,101 11,417 Diluted net earnings per share $ 4.10 $ 3.88 $ 4.51 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Shares Issued by Plan | The number of shares issued, net of forfeitures, by plan, for share-based compensation arrangements was as follows: 2017 2016 2015 2013 Plan 2013 Plan 2013 Plan Prior Plans Restricted Stock 14,500 0 (1,613) 0 Non-employee Directors’ Stock 6,680 7,596 7,013 0 Performance Shares 32,765 24,123 0 37,155 Total 53,945 31,719 5,400 37,155 The following table sets forth the restricted stock activity for the year ended December 31, 2017 : Restricted Stock Number of Shares Weighted-average Grant Date Fair Value Non-vested as of January 1, 2017 44,715 $ 69.54 Vested (37,244 ) $ 67.04 Granted 14,500 $ 93.7 Non-vested as of December 31, 2017 21,971 $ 89.73 |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | The amount of total compensation cost for share-based compensation arrangements was as follows ($ in thousands): Twelve months ended December 31, 2017 2016 2015 Expense Recognized in Earnings Tax Benefit Expense Recognized in Earnings Tax Benefit Expense Recognized in Earnings Tax Benefit Restricted Stock $ 765 $ 161 $ 1,037 $ 363 $ 799 $ 280 Non-employee Directors’ Stock Ownership Plan 646 226 600 210 510 178 Employee Stock Purchase Plan 50 0 46 0 45 0 Performance Shares 3,135 658 661 231 1,795 628 Total $ 4,596 $ 1,045 $ 2,343 $ 804 $ 3,148 $ 1,086 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of net benefit obligation | The following tables show data related to the APBO plan ($ in thousands): 2017 2016 Net benefit obligation at beginning of year $ 3,613 $ 3,729 Service cost 173 183 Interest cost 125 132 Participant contributions 31 37 Assumption change 168 44 Actuarial gain (14 ) (176 ) Gross benefits paid (326 ) (338 ) Net benefit obligation at end of year $ 3,769 $ 3,613 |
Schedule of weighted-average assumptions used | The following table discloses discount rates used to determine benefit obligations: 2017 2016 2015 Discount rate 3.20% 3.60% 3.70% |
Schedule of net benefit costs | The following table discloses the components of net periodic post-retirement benefit cost ($ in thousands): 2017 2016 2015 Service cost $ 173 $ 183 $ 235 Interest cost 125 132 146 Amortization of prior service cost 71 71 71 Amortization of net cumulative gain (121 ) (114 ) (5 ) Net periodic post-retirement benefit cost $ 247 $ 273 $ 447 |
Schedule of health care cost trend rates | The following table discloses the effects of a hypothetical one percentage point increase and the effects of a hypothetical one percentage point decrease in the assumed healthcare trend rate ($ in thousands): 2017 2016 2015 A one percentage point hypothetical change in the assumed healthcare trend rate would have the following effect on the post-retirement benefit obligations: 1% increase $ 188 $ 184 $ 304 1% decrease (172 ) (162 ) (269 ) A one percentage point hypothetical change in the assumed healthcare trend rate would have the following effect on the aggregate of the service and interest cost components of net periodic post-retirement healthcare benefit costs: 1% increase $ 36 $ 40 $ 49 1% decrease (31 ) (34 ) (42 ) |
Schedule of changes in fair value of plan assets | The following table reconciles the beginning and ending balances of the fair value of plan assets for the years ended December 31, 2017 , and 2016 ($ in thousands): 2017 2016 Fair value of plan assets at beginning of year $ 0 $ 0 Employer contributions 295 301 Participant contributions 31 37 Gross benefits paid (326 ) (338 ) Fair value of plan assets at end of year $ 0 $ 0 |
Schedule of amounts recognized in balance sheet | The following table presents the funded status and the amounts recognized in the Consolidated Balance Sheets ($ in thousands): 2017 2016 Fair value of plan assets $ 0 $ 0 Benefit obligations (3,769 ) (3,613 ) Funded status at end of year (3,769 ) (3,613 ) Contributions made after the measurement date 0 0 Unrecognized actuarial net (gain) loss 0 0 Unrecognized prior service cost 0 0 Net amount recognized at end of year $ (3,769 ) $ (3,613 ) |
Schedule of expected benefit payments | The following table presents the 10-year forecast and best estimate of expected benefit payments ($ in thousands): 2017 2016 2015 2018 $ 266 2017 $ 295 2016 $ 301 2019 276 2018 287 2017 280 2020 283 2019 289 2018 281 2021 280 2020 281 2019 294 2022 287 2021 283 2020 287 2023-2027 1,627 2022-2026 1,549 2021-2025 1,583 10-Year Total $ 3,020 $ 2,983 $ 3,026 |
Quarterly Operating Results (Ta
Quarterly Operating Results (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial information | The following are quarterly results of our consolidated operations for the three years ended December 31, 2017 , ($ in thousands, except per share amounts) : 2017 1 st Quarter 2 nd Quarter 3 rd Quarter 4 th Quarter Total Year Revenues $ 377,797 $ 376,886 $ 380,701 $ 382,602 $ 1,517,987 Net earnings 10,646 5,046 14,978 14,713 45,384 Net earnings per share: Basic $ 0.97 $ 0.46 $ 1.36 $ 1.35 $ 4.13 Diluted 0.96 0.46 1.35 1.34 4.10 2016 Revenues $ 370,162 $ 375,084 $ 378,124 $ 415,336 $ 1,538,706 Net earnings 7,708 11,015 2,753 21,609 43,085 Net earnings per share: Basic $ 0.70 $ 1.00 $ 0.25 $ 1.96 $ 3.91 Diluted 0.69 0.99 0.25 1.95 3.88 2015 Revenues $ 366,973 $ 374,757 $ 372,383 $ 369,919 $ 1,484,032 Net earnings 11,154 13,493 15,737 11,097 51,481 Net earnings per share: Basic $ 0.98 $ 1.18 $ 1.39 $ 0.99 $ 4.54 Diluted 0.97 1.18 1.38 0.99 4.51 Net realized gains (losses) on investments amounted to: 1 st Quarter 2 nd Quarter 3 rd Quarter 4 th Quarter Total Year 2017 $ 509 $ 1,886 $ (431 ) $ 256 $ 2,220 2016 139 (164 ) 1,282 1,887 3,145 2015 1,169 214 (410 ) 1,835 2,809 |
Insurance Reserves (Tables)
Insurance Reserves (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [Abstract] | |
Liability for unpaid losses and LAE | The following table provides an analysis of changes in the liability for losses and LAE, net of reinsurance ($ in thousands): 2017 2016 2015 Balance at Beginning of Period Unpaid losses on known claims $ 238,412 $ 237,660 $ 235,037 IBNR losses 306,641 290,097 277,482 LAE 140,402 142,207 155,658 Total unpaid losses and LAE 685,455 669,965 668,177 Reinsurance recoverables (17,130 ) (14,694 ) (14,370 ) Unpaid losses and LAE, net of reinsurance recoverables 668,325 655,271 653,808 Current Activity Loss and LAE incurred: Current accident year 1,072,191 1,120,756 1,064,927 Prior accident years (18,494 ) (24,001 ) (28,926 ) Total loss and LAE incurred 1,053,697 1,096,755 1,036,001 Loss and LAE payments: Current accident year (657,252 ) (687,554 ) (656,317 ) Prior accident years (381,281 ) (396,147 ) (378,221 ) Total loss and LAE payments (1,038,533 ) (1,083,701 ) (1,034,538 ) Balance at End of Period Unpaid losses and LAE, net of reinsurance recoverables 683,489 668,325 655,271 Add back reinsurance recoverables 31,609 17,130 14,694 Total unpaid losses and LAE 715,098 685,455 669,965 Unpaid losses on known claims 264,470 238,412 237,660 IBNR losses 312,516 306,641 290,097 LAE 138,112 140,402 142,207 Total unpaid losses and LAE $ 715,098 $ 685,455 $ 669,965 |
Schedule of incurred losses and cumulative paid claims for prior ten accident years | The following tables provide incurred losses and allocated loss adjustment expenses (ALAE) as well as cumulative paid claims and ALAE, net of reinsurance, for the prior ten accident years for our two largest lines of business. In addition, as of the most recent reporting period, the total of incurred but not reported (IBNR) reserves plus expected development on reported claims and the cumulative number of reported claims are presented ($ in thousands, except severity). The information about incurred and paid claims development for the years ended December 31, 2008 to December 31, 2016 is presented as supplementary information. Personal Auto - Liability Accident Year Incurred losses and ALAE, net of reinsurance recoverable For the years ended December 31, IBNR & expected development on reported claims Cumulative number of reported claims (1) Severity (2) (unaudited) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2017 2017 2017 2008 $ 370,950 $ 365,395 $ 348,841 $ 344,914 $ 342,775 $ 343,137 $ 341,566 $ 340,998 $ 340,785 $ 340,829 $ 70 151,692 $ 2,246 2009 357,137 336,224 334,823 333,895 332,731 330,929 330,315 330,152 330,394 143 145,958 2,263 2010 386,452 400,888 404,963 406,602 404,872 406,279 404,807 405,351 348 170,120 2,381 2011 425,619 453,746 459,406 458,171 459,418 456,862 457,242 551 187,717 2,433 2012 521,603 540,012 540,572 541,696 538,233 536,492 1,391 216,394 2,473 2013 588,566 589,991 575,727 568,481 568,744 5,325 219,395 2,568 2014 569,899 572,955 561,861 562,673 14,989 213,517 2,565 2015 583,490 582,177 581,699 24,375 216,638 2,573 2016 596,021 582,451 45,447 212,174 2,531 2017 550,769 159,366 185,635 2,108 Total $ 4,916,644 Accident Year Cumulative paid losses and ALAE, net of reinsurance recoverable For the years ended December 31, (unaudited) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008 $ 164,563 $ 284,203 $ 317,660 $ 331,628 $ 336,700 $ 339,436 $ 340,305 $ 340,495 $ 340,649 $ 340,726 2009 153,561 270,633 309,115 322,313 326,575 328,647 329,386 329,793 330,032 2010 182,160 332,625 374,717 391,125 397,254 401,597 403,976 404,805 2011 201,769 374,930 423,456 442,710 450,718 454,637 456,030 2012 246,387 444,359 501,466 521,104 529,190 533,039 2013 271,961 477,408 530,162 548,631 556,695 2014 270,893 470,297 521,257 539,701 2015 282,064 488,501 537,670 2016 290,108 483,874 2017 265,959 Total $ 4,448,532 Outstanding liabilities for unpaid losses and ALAE prior to 2008, net of reinsurance recoverable 1,116 Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance recoverable $ 469,228 (1) The cumulative number of reported claims is measured by individual claimant at a coverage level. (2) Calculated severity amounts by accident year are based on inception-to-date incurred less IBNR and expected development dollars and reported claims. Note that older accident years are more developed than recent accident years. Personal Auto - Physical Damage Accident Year Incurred losses and ALAE, net of reinsurance recoverable For the years ended December 31, IBNR & expected development on reported claims Cumulative number of reported claims (1) Severity (2) (unaudited) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2017 2017 2017 2008 $ 174,923 $ 167,898 $ 168,284 $ 168,261 $ 168,366 $ 168,353 $ 168,356 $ 168,252 $ 168,272 $ 168,299 $ — 95,511 $ 1,762 2009 140,256 137,104 137,949 137,972 138,983 141,594 142,685 143,208 144,613 — 84,871 1,704 2010 154,850 153,279 152,628 152,651 152,753 152,656 152,670 152,772 — 100,585 1,519 2011 183,016 179,265 178,993 179,399 179,090 179,043 179,128 — 120,196 1,490 2012 218,216 210,510 210,690 209,905 209,933 209,994 (0 ) 143,891 1,459 2013 216,472 215,469 213,701 213,888 214,007 70 145,504 1,470 2014 237,379 223,130 223,068 223,014 157 140,849 1,582 2015 255,569 258,967 258,293 418 149,543 1,724 2016 278,305 269,680 1,533 147,334 1,820 2017 265,045 28,822 135,189 1,747 Total $ 2,084,845 Accident Year Cumulative paid losses and ALAE, net of reinsurance recoverable For the years ended December 31, (unaudited) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008 $ 155,754 $ 168,890 $ 168,207 $ 168,248 $ 168,363 $ 168,386 $ 168,368 $ 168,336 $ 168,311 $ 168,299 2009 131,593 137,902 138,063 138,150 138,878 141,385 142,403 143,282 143,363 2010 143,751 153,295 152,821 152,759 152,770 152,812 152,805 152,797 2011 172,598 179,315 179,066 179,209 179,274 179,224 179,196 2012 204,047 210,945 210,170 210,102 210,164 210,119 2013 208,503 214,631 214,026 214,139 214,138 2014 214,491 224,311 223,430 223,204 2015 248,200 260,349 258,747 2016 264,108 271,370 2017 251,865 Total $ 2,073,098 Outstanding liabilities for unpaid losses and ALAE prior to 2008, net of reinsurance recoverable 4 Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance recoverable $ 11,752 (1) The cumulative number of reported claims is measured by individual claimant at a coverage level. (2) Calculated severity amounts by accident year are based on inception-to-date incurred less IBNR and expected development dollars and reported claims. Note that older accident years are more developed than recent accident years. Commercial Auto - Liability Accident Year Incurred losses and ALAE, net of reinsurance recoverable For the years ended December 31, IBNR & expected development on reported claims Cumulative number of reported claims (1) Severity (2) (unaudited) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2017 2017 2017 2008 $ 20,258 $ 17,047 $ 14,845 $ 14,778 $ 14,218 $ 13,939 $ 13,865 $ 13,890 $ 13,890 $ 13,889 $ — 4,100 $ 3,387 2009 30,227 26,644 25,977 23,687 22,332 22,265 22,137 22,120 22,109 — 5,878 3,761 2010 34,557 32,609 29,343 28,020 26,881 27,332 26,949 26,917 — 7,276 3,699 2011 33,090 32,272 29,448 28,318 28,396 27,772 27,798 44 7,613 3,646 2012 42,396 38,781 38,144 38,279 37,722 37,077 51 8,681 4,265 2013 52,590 42,327 43,025 42,317 41,342 376 9,688 4,228 2014 54,452 52,320 53,700 54,883 1,516 11,399 4,682 2015 67,731 70,252 74,418 2,405 13,809 5,215 2016 79,025 80,418 6,591 14,651 5,039 2017 89,425 33,014 14,085 4,005 Total $ 468,275 Accident Year Cumulative paid losses and ALAE, net of reinsurance recoverable For the years ended December 31, (unaudited) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008 $ 5,471 $ 10,367 $ 12,124 $ 13,224 $ 13,780 $ 13,841 $ 13,842 $ 13,888 $ 13,888 $ 13,888 2009 8,704 16,508 20,695 21,481 21,962 22,073 22,084 22,090 22,106 2010 10,156 19,375 23,600 25,678 26,177 26,774 26,838 26,850 2011 11,046 21,665 25,402 26,768 27,489 27,641 27,721 2012 14,608 27,182 33,381 35,505 36,469 36,840 2013 15,276 30,953 36,150 38,178 39,464 2014 18,518 36,152 44,168 49,167 2015 24,840 49,828 60,558 2016 27,539 52,993 2017 29,203 Total $ 358,792 Outstanding liabilities for unpaid losses and ALAE prior to 2008, net of reinsurance recoverable 8 Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance recoverable $ 109,491 (1) The cumulative number of reported claims is measured by individual claimant at a coverage level. (2) Calculated severity amounts by accident year are based on inception-to-date incurred less IBNR and expected development dollars and reported claims. Note that older accident years are more developed than recent accident years. Commercial Auto - Physical Damage Accident Year Incurred losses and ALAE, net of reinsurance recoverable For the years ended December 31, IBNR & expected development on reported claims Cumulative number of reported claims (1) Severity (2) (unaudited) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2017 2017 2017 2008 $ 4,199 $ 4,140 $ 4,115 $ 4,115 $ 4,102 $ 4,106 $ 4,108 $ 4,106 $ 4,106 $ 4,106 $ — 2,495 $ 1,646 2009 5,400 5,259 5,249 5,257 5,266 5,269 5,266 5,265 5,264 — 3,181 1,655 2010 6,765 6,540 6,538 6,519 6,515 6,513 6,511 6,510 — 3,929 1,657 2011 7,204 6,822 6,754 6,734 6,734 6,735 6,732 — 3,884 1,733 2012 8,690 8,169 8,140 8,126 8,110 8,093 — 4,438 1,823 2013 9,567 9,112 9,057 9,090 9,082 — 4,744 1,914 2014 11,272 10,984 10,982 10,937 (0 ) 5,362 2,040 2015 14,117 14,062 14,201 42 6,357 2,227 2016 16,512 16,273 150 6,917 2,331 2017 17,340 2,132 6,605 2,302 Total $ 98,537 Accident Year Cumulative paid losses and ALAE, net of reinsurance recoverable For the years ended December 31, (unaudited) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008 $ 3,623 $ 4,122 $ 4,100 $ 4,107 $ 4,106 $ 4,106 $ 4,106 $ 4,106 $ 4,106 $ 4,106 2009 4,759 5,227 5,234 5,253 5,267 5,266 5,267 5,265 5,264 2010 5,953 6,528 6,520 6,513 6,513 6,512 6,511 6,511 2011 6,351 6,762 6,724 6,727 6,734 6,734 6,734 2012 7,665 8,140 8,120 8,118 8,109 8,096 2013 8,557 9,085 9,049 9,092 9,091 2014 10,110 11,010 10,963 10,953 2015 13,079 14,104 14,200 2016 14,929 16,279 2017 15,701 Total $ 96,935 Outstanding liabilities for unpaid losses and ALAE prior to 2008, net of reinsurance recoverable — Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance recoverable $ 1,602 (1) The cumulative number of reported claims is measured by individual claimant at a coverage level. (2) Calculated severity amounts by accident year are based on inception-to-date incurred less IBNR and expected development dollars and reported claims. Note that older accident years are more developed than recent accident years. |
Reconciliation of net incurred and paid development tables to liability for unpaid losses and LAE | The reconciliation of the net incurred and paid development tables to the liability for unpaid losses and LAE in the consolidated balance sheets is as follows ($ in thousands): As of December 31, 2017 Liabilities for unpaid losses and LAE: Personal Auto - Liability $ 469,228 Personal Auto - Physical Damage 11,752 Commercial Auto - Liability 109,491 Commercial Auto - Physical Damage 1,602 Other Lines 7,821 Total liabilities for unpaid losses and LAE, net of reinsurance 599,894 Reinsurance recoverables: Personal Auto - Liability 6,993 Personal Auto - Physical Damage 11,813 Commercial Auto - Liability 11,752 Commercial Auto - Physical Damage 48 Other Lines 1,003 Total reinsurance recoverables 31,609 Unallocated loss adjustment expenses 83,596 Gross liability for unpaid losses and LAE $ 715,098 |
Schedule of average annual payout of incurred losses and ALAE | The following table provides supplementary information about the average annual percentage payout of incurred losses and ALAE, net of reinsurance: Average annual payout of losses and LAE, net of reinsurance (unaudited) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Personal Auto - Liability 47.2 % 35.7 % 10.0 % 3.9 % 1.6 % 0.9 % 0.3 % 0.1 % 0.1 % 0.1 % Personal Auto - Physical Damage 95.4 % 4.5 % (0.4 )% (0.1 )% 0.0 % 0.2 % 0.1 % 0.1 % (0.1 )% 0.4 % Commercial Auto - Liability 36.7 % 35.1 % 15.6 % 7.1 % 3.5 % 1.5 % 0.2 % 0.1 % 0.1 % 0.0 % Commercial Auto - Physical Damage 92.0 % 8.1 % (0.2 )% 0.1 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Reinsurance Disclosures [Abstract] | |
Schedule of reinsurance assumed and ceded | The following table shows written and earned premium included in earnings for reinsurance assumed and amounts deducted from written and earned premium in connection with reinsurance ceded ($ in thousands): Year Direct Written Premium Reinsurance Assumed Reinsurance Ceded Net Written Premium % of Amount Assumed to Net 2017 $ 1,397,276 $ 18 $ (10,441 ) $ 1,386,853 0.0 % 2016 1,401,378 36 (8,955 ) 1,392,459 0.0 % 2015 1,387,864 2 (14,579 ) 1,373,287 0.0 % Year Direct Earned Premium Reinsurance Reinsurance Net Earned Premium % of Amount Assumed to Net 2017 $ 1,384,048 $ 18 $ (12,730 ) $ 1,371,336 0.0 % 2016 1,403,682 34 (12,052 ) 1,391,664 0.0 % 2015 1,360,473 4 (13,913 ) 1,346,564 0.0 % |
Statutory Information (Tables)
Statutory Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [Abstract] | |
Statutory accounting practices disclosure | Net earnings and capital and surplus on a statutory basis were as follows ($ in thousands): Statutory Net Earnings Statutory Capital and Surplus 2017 2016 2015 2017 2016 $ 67,323 $ 62,247 $ 61,379 $ 665,459 $ 669,301 |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum rental payments for operating leases | Minimum rental commitments under non-cancelable leases with an initial or remaining term of more than one year as of December 31, 2017 , were as follows ($ in thousands): Due In Operating Leases Capital Leases 2018 $ 4,218 $ 717 2019 2,761 704 2020 2,158 333 2021 1,927 202 2022 882 0 Thereafter 523 0 Total $ 12,469 $ 1,956 |
Schedule of Rent Expense | Lease expense incurred for all leases during the last three years was as follows ($ in thousands): Twelve months ended December 31, 2017 2016 2015 Lease expense $ 6,505 $ 6,688 $ 9,611 |
Additional Information (Tables)
Additional Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Additional Information [Abstract] | |
Schedule of allowances for uncollectible accounts | A progression of the aggregate allowance follows ($ in thousands): 2017 2016 2015 Beginning balance $ 14,207 $ 15,385 $ 15,510 Provision for losses 15,761 17,095 19,080 Uncollectible amounts written off (14,707 ) (18,273 ) (19,204 ) Ending balance $ 15,262 $ 14,207 $ 15,385 |
Accumulated Other Comprehensi43
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The components of other comprehensive income before and after tax are as follows ($ in thousands): Twelve months ended December 31, 2017 Before Tax Income Tax Net Accumulated change in post-retirement benefit liability, beginning of period $ 1,033 $ (361 ) $ 671 Effect on other comprehensive income (204 ) 71 (133 ) Accumulated change in post-retirement benefit liability, end of period 829 (290 ) 539 Accumulated unrealized gains on investments, net, beginning of period 11,133 (3,896 ) 7,236 Other comprehensive income before reclassification 19,509 (6,085 ) 13,424 Reclassification adjustment for OTTI losses included in net income 3,123 (1,093 ) 2,030 Reclassification adjustment for realized gains included in net income (5,343 ) 1,870 (3,473 ) Effect on other comprehensive income 17,288 (5,308 ) 11,981 Accumulated unrealized gains on investments, net, end of period 28,421 (9,204 ) 19,217 Accumulated other comprehensive income, beginning of period 12,165 (4,258 ) 7,907 Change in post-retirement benefit liability (204 ) 71 (133 ) Change in unrealized gains on investments, net 17,288 (5,308 ) 11,981 Effect on other comprehensive income 17,085 (5,236 ) 11,848 Accumulated other comprehensive income, end of period $ 29,250 $ (9,494 ) $ 19,756 Twelve months ended December 31, 2016 Accumulated change in post-retirement benefit liability, beginning of period $ 944 $ (331 ) $ 614 Effect on other comprehensive income 88 (31 ) 57 Accumulated change in post-retirement benefit liability, end of period 1,033 (361 ) 671 Accumulated unrealized gains on investments, net, beginning of period 11,072 (3,875 ) 7,197 Other comprehensive income before reclassification 3,205 (1,122 ) 2,084 Reclassification adjustment for OTTI losses included in net income 375 (131 ) 243 Reclassification adjustment for realized gains included in net income (3,519 ) 1,232 (2,287 ) Effect on other comprehensive income 61 (21 ) 40 Accumulated unrealized gains on investments, net, end of period 11,133 (3,896 ) 7,236 Accumulated other comprehensive income, beginning of period 12,016 (4,206 ) 7,811 Change in post-retirement benefit liability 88 (31 ) 57 Change in unrealized gains on investments, net 61 (21 ) 40 Effect on other comprehensive income 149 (52 ) 97 Accumulated other comprehensive income, end of period $ 12,165 $ (4,258 ) $ 7,907 Twelve months ended December 31, 2015 Before Tax Income Tax Net Accumulated change in post-retirement benefit liability, beginning of period $ 174 $ (61 ) $ 113 Effect on other comprehensive income 771 (270 ) 501 Accumulated change in post-retirement benefit liability, end of period 944 (331 ) 614 Accumulated unrealized gains on investments, net, beginning of period 35,972 (12,590 ) 23,382 Other comprehensive income before reclassification (22,091 ) 7,732 (14,359 ) Reclassification adjustment for OTTI losses included in net income 1,294 (453 ) 841 Reclassification adjustment for realized gains included in net income (4,102 ) 1,436 (2,667 ) Effect on other comprehensive income (24,900 ) 8,715 (16,185 ) Accumulated unrealized gains on investments, net, end of period 11,072 (3,875 ) 7,197 Accumulated other comprehensive income, beginning of period 36,145 (12,651 ) 23,494 Change in post-retirement benefit liability 771 (270 ) 501 Change in unrealized gains on investments, net (24,900 ) 8,715 (16,185 ) Effect on other comprehensive income (24,129 ) 8,445 (15,684 ) Accumulated other comprehensive income, end of period $ 12,016 $ (4,206 ) $ 7,811 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Revenues and Earnings Before Income Taxes | The following table provides revenues by segment and a reconciliation to "Total revenues" as reported on the Consolidated Statements of Earnings ($ in thousands): Twelve months ended December 31, Gross written premium: 2017 2016 2015 Personal Auto $ 1,217,384 $ 1,240,037 $ 1,246,492 Commercial Auto 163,389 145,272 126,036 Classic Collector 16,520 16,105 15,339 Total gross written premium 1,397,294 1,401,414 1,387,866 Ceded reinsurance: Personal Auto (6,366 ) (4,036 ) (3,301 ) Commercial Auto (1) (2,895 ) (4,098 ) (10,679 ) Classic Collector (1,180 ) (821 ) (600 ) Total ceded reinsurance (10,441 ) (8,955 ) (14,579 ) Net written premium: Personal Auto 1,211,019 1,236,001 1,243,191 Commercial Auto 160,494 141,174 115,357 Classic Collector 15,340 15,284 14,739 Total net written premium 1,386,853 1,392,459 1,373,287 Change in unearned premium: Personal Auto (3,068 ) 10,401 (17,901 ) Commercial Auto (12,164 ) (10,990 ) (8,395 ) Classic Collector (286 ) (205 ) (427 ) Total change in unearned premium (15,517 ) (795 ) (26,723 ) Earned premium: Personal Auto 1,207,951 1,246,402 1,225,290 Commercial Auto 148,330 130,183 106,962 Classic Collector 15,055 15,079 14,312 Total earned premium 1,371,336 1,391,664 1,346,564 Installment and other fee income: Personal Auto 94,208 97,085 88,738 Commercial Auto 11,556 10,276 8,015 Classic Collector 0 0 0 Total installment and other fee income 105,764 107,361 96,753 Net investment income 37,262 35,537 36,800 Net realized gains on investments 2,220 3,145 2,809 Other income 1,404 1,000 1,106 Total revenues $ 1,517,987 $ 1,538,706 $ 1,484,032 (1) Effective June 1, 2016, we modified the terms on our excess or loss reinsurance contract for our commercial auto business. Premium ceded for the twelve months ended December 31, 2016, includes the return of $5.9 million of unearned premium due to the termination of the previous excess of loss contract. Effective June 1, 2017, the premium paid for our excess of loss reinsurance contract for our commercial auto business is based on earned premium rather than written premium. Premium ceded during the twelve months ended December 31, 2017 includes the return of $2.6 million of unearned premium due to the termination of the previous excess of loss contract. The following tables present the underwriting income and combined ratio on a statutory accident year basis with reconciliations to "Earnings before income taxes" as presented on the Consolidated Statements of Earnings ($ in thousands). We do not allocate assets or "Provision for income taxes" to operating segments. Twelve months ended December 31, 2017 Personal Auto Commercial Auto Classic Collector Total Pre-tax Profit (Loss) Combined Ratio (1) Pre-tax Profit (Loss) Combined Ratio (1) Pre-tax Profit (Loss) Combined Ratio (1) Pre-tax Profit (Loss) Combined Ratio (1) Statutory accident year underwriting income $ 46,924 96.1 % $ 4,544 95.5 % $ (438 ) 102.2 % $ 51,029 96.1 % Bad debt charge-offs 13,652 1,921 43 15,616 Favorable (unfavorable) development on prior accident years 23,395 (5,466 ) 564 18,494 Statutory calendar year underwriting income 83,971 93.0 % 999 98.0 % 169 98.2 % 85,139 93.6 % Statutory-to-GAAP underwriting income differences (19,017 ) GAAP calendar year underwriting income 66,122 95.2 % Net investment income 37,262 Net realized gains on investments 2,220 Other income 1,404 Interest expense (14,043 ) Corporate general and administrative expenses (9,769 ) Other expenses (2,470 ) Earnings before income taxes $ 80,727 (1) Management includes the provision for uncollectible accounts in the underwriting income and combined ratio on both statutory accident year and GAAP calendar year bases. Twelve months ended December 31, 2016 Personal Auto Commercial Auto Classic Collector Total Pre-tax Profit (Loss) Combined Ratio (1) Pre-tax Profit (Loss) Combined Ratio (1) Pre-tax Profit (Loss) Combined Ratio (1) Pre-tax Profit (Loss) Combined Ratio (1) Statutory accident year underwriting income $ 21,766 98.4 % $ 1,905 97.0 % $ 1,022 92.8 % $ 24,692 98.2 % Bad debt charge-offs 15,150 1,784 50 16,984 Favorable (unfavorable) development on prior accident years 27,958 (3,582 ) (375 ) 24,001 Statutory calendar year underwriting income 64,874 94.9 % 106 98.5 % 697 94.9 % 65,677 95.3 % Statutory-to-GAAP underwriting income differences (19,555 ) GAAP calendar year underwriting income 46,122 96.7 % Net investment income 35,537 Net realized gains on investments 3,145 Other income 1,000 Interest expense (14,037 ) Corporate general and administrative expenses (7,899 ) Other expenses (1,736 ) Earnings before income taxes $ 62,132 (1) Management includes the provision for uncollectible accounts in the underwriting income and combined ratio on both statutory accident year and GAAP calendar year bases. Twelve months ended December 31, 2015 Personal Auto Commercial Auto Classic Collector Total Pre-tax Profit (Loss) Combined Ratio (1) Pre-tax Profit (Loss) Combined Ratio (1) Pre-tax Profit (Loss) Combined Ratio (1) Pre-tax Profit (Loss) Combined Ratio (1) Statutory accident year underwriting income $ 24,876 97.7 % $ 876 97.8 % $ 2,063 84.7 % $ 27,815 97.6 % Bad debt charge-offs 17,413 1,557 44 19,013 Favorable (unfavorable) development on prior accident years 33,633 (5,176 ) 469 28,926 Statutory calendar year underwriting income 75,922 93.6 % (2,743 ) 101.3 % 2,576 81.1 % 75,754 94.0 % Statutory-to-GAAP underwriting income differences (16,658 ) GAAP calendar year underwriting income 59,096 95.6 % Net investment income 36,800 Net realized gains on investments 2,809 Other income 1,106 Interest expense (14,029 ) Corporate general and administrative expenses (7,655 ) Other expenses (3,296 ) Earnings before income taxes $ 74,832 (1) Management includes the provision for uncollectible accounts in the underwriting income and combined ratio on both statutory accident year and GAAP calendar year bases. |
Significant Reporting and Acc45
Significant Reporting and Accounting Policies (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)states | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Concentration Risk [Line Items] | |||
Number of states primarily writes insurance | states | 4 | ||
Installment and other fee income | $ 105,764 | $ 107,361 | $ 96,753 |
Available-for-sale securities | 19,800 | ||
Advertising costs | 11,100 | 9,700 | 9,100 |
Deferred policy acquisition cost, amortization expense | $ (200,700) | $ (207,100) | $ (203,700) |
Off premium charges | 90 days | ||
Personal auto insurance [Member] | Sales Revenue, Product Line [Member] | Product Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Portion of total gross written premiums (percent) | 87.00% | ||
Personal auto insurance [Member] | Sales Revenue, Product Line [Member] | Geographic Concentration Risk [Member] | California | |||
Concentration Risk [Line Items] | |||
Portion of total gross written premiums (percent) | 53.00% |
Significant Reporting and Acc46
Significant Reporting and Accounting Policies Significant Reporting and Accounting Policies (Details 2) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Gross Asset | $ 167,200 | |
Accumulated Depreciation | (84,776) | $ (70,559) |
Net Asset | 82,453 | $ 96,166 |
Capital Leases [Abstract] | ||
Capital leases net of depreciation | 1,500 | |
Capital lease accumulated depreciation | 1,600 | |
Real Estate Related [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross Asset | 69,800 | |
Accumulated Depreciation | (9,600) | |
Net Asset | 60,200 | |
Computer Equipment & Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross Asset | 82,900 | |
Accumulated Depreciation | (66,900) | |
Net Asset | 16,000 | |
Furniture & Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross Asset | 14,500 | |
Accumulated Depreciation | (8,200) | |
Net Asset | $ 6,300 |
Significant Reporting and Acc47
Significant Reporting and Accounting Policies Significant Reporting and Accounting Policies - Affect of Adoption (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Excess tax benefits from share-based payment arrangements | $ 0 | $ 157 | $ 298 |
Other assets | 16,557 | 12,777 | |
Assets | 2,473,411 | 2,402,601 | |
Long-term debt | 273,809 | 273,591 | |
Liabilities | 1,753,130 | 1,703,414 | |
Liabilities and Equity | 2,473,411 | 2,402,601 | |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 13,424 | 2,084 | (14,359) |
Installment and other fee income | 105,764 | 107,361 | 96,753 |
Accounting Standards Update 2016-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Excess tax benefits from share-based payment arrangements, financing activities | 200 | 200 | |
Excess tax benefits from share-based payment arrangements | $ (300) | $ (300) | |
Accounting Standards Update 2014-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of new accounting principle in period of adoption | 4,500 | ||
Equity securities | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | $ 17,700 |
Fair Value - Fair Value by Hier
Fair Value - Fair Value by Hierarchy (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | $ 1,539,653 | $ 1,483,714 |
Long-term debt | 290,824 | 278,726 |
Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 1,441,107 | 1,390,167 |
U.S. government | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 60,528 | 62,485 |
State and municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 494,211 | 476,331 |
Mortgage-backed securities: | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 381,561 | 410,169 |
Residential | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 350,992 | 340,367 |
Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 30,569 | 69,801 |
Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 62,418 | 37,608 |
Corporates | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 442,390 | 403,575 |
Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 96,004 | 90,640 |
Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 2,541 | 2,907 |
Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Cash and cash equivalents | 107,589 | 92,800 |
Total cash and investments | $ 1,647,242 | $ 1,576,514 |
Percentage of total cash and investments | 100.00% | 100.00% |
Recurring basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Cash and cash equivalents | $ 107,589 | $ 92,800 |
Total cash and investments | $ 264,121 | $ 246,689 |
Percentage of total cash and investments | 16.00% | 15.60% |
Recurring basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Cash and cash equivalents | $ 0 | $ 0 |
Total cash and investments | $ 1,379,373 | $ 1,324,888 |
Percentage of total cash and investments | 83.70% | 84.00% |
Long-term debt | $ 290,800 | $ 278,700 |
Recurring basis | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Cash and cash equivalents | 0 | 0 |
Total cash and investments | $ 3,748 | $ 4,938 |
Percentage of total cash and investments | 0.20% | 0.30% |
Recurring basis | Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | $ 1,441,107 | $ 1,390,167 |
Recurring basis | Fixed maturities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 60,528 | 62,480 |
Recurring basis | Fixed maturities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 1,376,832 | 1,322,749 |
Recurring basis | Fixed maturities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 3,748 | 4,938 |
Recurring basis | U.S. government | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 60,528 | 62,485 |
Recurring basis | U.S. government | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 60,528 | 62,480 |
Recurring basis | U.S. government | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 5 |
Recurring basis | U.S. government | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 0 |
Recurring basis | State and municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 494,211 | 476,331 |
Recurring basis | State and municipal | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 0 |
Recurring basis | State and municipal | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 490,724 | 472,471 |
Recurring basis | State and municipal | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 3,488 | 3,860 |
Recurring basis | Mortgage-backed securities: | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 381,561 | 410,169 |
Recurring basis | Mortgage-backed securities: | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 0 |
Recurring basis | Mortgage-backed securities: | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 381,561 | 410,169 |
Recurring basis | Mortgage-backed securities: | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 0 |
Recurring basis | Residential | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 350,992 | 340,367 |
Recurring basis | Residential | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 0 |
Recurring basis | Residential | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 350,992 | 340,367 |
Recurring basis | Residential | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 0 |
Recurring basis | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 30,569 | 69,801 |
Recurring basis | Commercial | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 0 |
Recurring basis | Commercial | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 30,569 | 69,801 |
Recurring basis | Commercial | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 0 |
Recurring basis | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 62,418 | 37,608 |
Recurring basis | Asset-backed securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 0 |
Recurring basis | Asset-backed securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 62,266 | 37,196 |
Recurring basis | Asset-backed securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 152 | 412 |
Recurring basis | Corporates | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 442,390 | 403,575 |
Recurring basis | Corporates | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 0 |
Recurring basis | Corporates | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 442,281 | 402,909 |
Recurring basis | Corporates | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 108 | 666 |
Recurring basis | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 96,004 | 90,640 |
Recurring basis | Equity securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 96,004 | 90,640 |
Recurring basis | Equity securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 0 |
Recurring basis | Equity securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 0 |
Recurring basis | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 2,541 | 2,907 |
Recurring basis | Short-term investments | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 769 |
Recurring basis | Short-term investments | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 2,541 | 2,139 |
Recurring basis | Short-term investments | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | $ 0 | $ 0 |
Fair Value - Level 3 Investment
Fair Value - Level 3 Investments (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2017Securities | Mar. 31, 2017security | Sep. 30, 2016security | Mar. 31, 2016USD ($)security | Dec. 31, 2017USD ($)Securitiessecurity | Dec. 31, 2016USD ($) | |
Level 3 reconciliation | ||||||
Number of securities | Securities | 6 | |||||
Number of non-binding securities | Securities | 2 | |||||
Number of nationally recognized securities | Securities | 4 | |||||
Number of securities transferred from Level 2 to Level 3 | 6 | 1 | 1 | 3 | ||
Number of securities transferred from Level 3 to Level 2 | security | 1 | |||||
Recurring basis | Level 3 | ||||||
Level 3 reconciliation | ||||||
Balance at beginning of period | $ 1,534 | $ 4,938 | $ 1,534 | |||
Included in net earnings | (127) | (13) | ||||
Included in other comprehensive income | (5) | (67) | ||||
Purchases | 6,259 | 620 | ||||
Sales | 694 | |||||
Settlements | (788) | (1,029) | ||||
Transfers in | 447 | 5,232 | ||||
Transfers out | (6,283) | (1,339) | ||||
Balance at end of period | 3,748 | 4,938 | ||||
Recurring basis | Level 3 | State and municipal | ||||||
Level 3 reconciliation | ||||||
Balance at beginning of period | 10 | 3,860 | 10 | |||
Included in net earnings | (129) | (25) | ||||
Included in other comprehensive income | 3 | (10) | ||||
Purchases | 0 | 0 | ||||
Sales | 694 | |||||
Settlements | 0 | (10) | ||||
Transfers in | 447 | 3,894 | ||||
Transfers out | 0 | 0 | ||||
Balance at end of period | 3,488 | 3,860 | ||||
Recurring basis | Level 3 | Corporates | ||||||
Level 3 reconciliation | ||||||
Balance at beginning of period | 1,524 | 666 | 1,524 | |||
Included in net earnings | 1 | 12 | ||||
Included in other comprehensive income | (30) | (60) | ||||
Purchases | 2,000 | 0 | ||||
Sales | 0 | |||||
Settlements | (530) | (810) | ||||
Transfers in | 0 | 0 | ||||
Transfers out | (2,000) | 0 | ||||
Balance at end of period | 108 | 666 | ||||
Recurring basis | Level 3 | Asset-Backed Securities | ||||||
Level 3 reconciliation | ||||||
Balance at beginning of period | $ 0 | 412 | 0 | |||
Included in net earnings | 0 | 0 | ||||
Included in other comprehensive income | 22 | 3 | ||||
Purchases | 4,259 | 620 | ||||
Sales | 0 | |||||
Settlements | (258) | (209) | ||||
Transfers in | 0 | 1,338 | ||||
Transfers out | (4,283) | (1,339) | ||||
Balance at end of period | $ 152 | $ 412 |
Fair Value - Fair Value of Fina
Fair Value - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities: | $ 1,539,653 | $ 1,483,714 |
Long-term debt | 290,824 | 278,726 |
Fixed maturities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities: | 1,441,107 | 1,390,167 |
Equity securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities: | 96,004 | 90,640 |
Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities: | 2,541 | 2,907 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 107,589 | 92,800 |
Total cash and investments | 1,647,242 | 1,576,514 |
Long-term debt | 273,809 | 273,591 |
Carrying Value | Fixed maturities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities: | 1,441,107 | 1,390,167 |
Carrying Value | Equity securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities: | 96,004 | 90,640 |
Carrying Value | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities: | 2,541 | 2,907 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 107,589 | 92,800 |
Total cash and investments | 1,647,242 | 1,576,514 |
Long-term debt | 290,824 | 278,726 |
Fair Value | Fixed maturities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities: | 1,441,107 | 1,390,167 |
Fair Value | Equity securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities: | 96,004 | 90,640 |
Fair Value | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities: | $ 2,541 | $ 2,907 |
Investments - Textual (Details)
Investments - Textual (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Proceeds from sale of securities | $ 210,800 | $ 312,300 | $ 341,300 |
Receivable for securities sold | 1,700 | 795 | |
Gross realized gains on sale of securities | 6,900 | 6,200 | 7,200 |
Gross realized losses on sale of securities | $ 1,700 | $ 2,700 | $ 3,200 |
Investments - Investments by ma
Investments - Investments by major category (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost or Cost | $ 1,511,232 | $ 1,472,582 | |
Gross Unrealized Gains | 36,463 | 22,846 | |
Gross Unrealized Losses | (8,042) | (11,713) | |
Fair Value | 1,539,653 | 1,483,714 | |
OTTI Recognized in Accumulated OCI | (1,564) | (2,068) | [1] |
Fixed maturities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost or Cost | 1,439,878 | 1,392,660 | |
Gross Unrealized Gains | 9,271 | 9,219 | |
Gross Unrealized Losses | (8,042) | (11,711) | |
Fair Value | 1,441,107 | 1,390,167 | |
OTTI Recognized in Accumulated OCI | (1,564) | (2,068) | [1] |
U.S. government | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost or Cost | 61,196 | 62,808 | |
Gross Unrealized Gains | 0 | 55 | |
Gross Unrealized Losses | (668) | (377) | |
Fair Value | 60,528 | 62,485 | |
OTTI Recognized in Accumulated OCI | 0 | 0 | [1] |
State and municipal | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost or Cost | 492,442 | 477,834 | |
Gross Unrealized Gains | 2,768 | 2,313 | |
Gross Unrealized Losses | (999) | (3,816) | |
Fair Value | 494,211 | 476,331 | |
OTTI Recognized in Accumulated OCI | (46) | (51) | [1] |
Mortgage-backed securities: | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost or Cost | 384,481 | 413,772 | |
Gross Unrealized Gains | 1,830 | 2,369 | |
Gross Unrealized Losses | (4,750) | (5,972) | |
Fair Value | 381,561 | 410,169 | |
OTTI Recognized in Accumulated OCI | (1,479) | (1,967) | [1] |
Residential | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost or Cost | 353,277 | 343,095 | |
Gross Unrealized Gains | 1,812 | 2,306 | |
Gross Unrealized Losses | (4,097) | (5,034) | |
Fair Value | 350,992 | 340,367 | |
OTTI Recognized in Accumulated OCI | (1,479) | (1,967) | [1] |
Commercial | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost or Cost | 31,204 | 70,676 | |
Gross Unrealized Gains | 18 | 63 | |
Gross Unrealized Losses | (653) | (939) | |
Fair Value | 30,569 | 69,801 | |
OTTI Recognized in Accumulated OCI | 0 | 0 | [1] |
Asset-backed securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost or Cost | 62,552 | 37,562 | |
Gross Unrealized Gains | 62 | 93 | |
Gross Unrealized Losses | (196) | (47) | |
Fair Value | 62,418 | 37,608 | |
OTTI Recognized in Accumulated OCI | (8) | (8) | [1] |
Corporates | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost or Cost | 439,208 | 400,685 | |
Gross Unrealized Gains | 4,610 | 4,389 | |
Gross Unrealized Losses | (1,429) | (1,499) | |
Fair Value | 442,390 | 403,575 | |
OTTI Recognized in Accumulated OCI | (31) | (41) | [1] |
Equity securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost or Cost | 68,812 | 77,013 | |
Gross Unrealized Gains | 27,192 | 13,627 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 96,004 | 90,640 | |
OTTI Recognized in Accumulated OCI | 0 | 0 | [1] |
Short-term investments | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost or Cost | 2,541 | 2,909 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 0 | (2) | |
Fair Value | 2,541 | 2,907 | |
OTTI Recognized in Accumulated OCI | $ 0 | $ 0 | |
[1] | The total non-credit portion of OTTI recognized in Accumulated OCI reflecting the original non-credit loss at the time the credit impairment was determined. |
Investments - Continuous loss p
Investments - Continuous loss position investments (Details) | 12 Months Ended | |
Dec. 31, 2017USD ($)Securities | Dec. 31, 2016USD ($)Securities | |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Gross Unrealized Losses | $ (8,042,000) | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | Securities | 722 | 737 |
Less than 12 Months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | $ 489,771,000 | $ 770,019,000 |
Less than 12 months, Gross Unrealized Losses | $ (3,233,000) | $ (10,861,000) |
Unrealized Losses as Percentage of Cost | 0.70% | 1.40% |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 398 | 682 |
Less than 12 Months | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months., Number of Securities with Unrealized Losses | Securities | 398 | 679 |
Less than 12 Months, Fair Value | $ 489,771,000 | $ 767,112,000 |
Less than 12 months, Gross Unrealized Losses | $ (3,233,000) | $ (10,859,000) |
Unrealized Losses as Percentage of Cost | 0.70% | 1.40% |
Less than 12 Months | U.S. government | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months., Number of Securities with Unrealized Losses | Securities | 25 | 31 |
Less than 12 Months, Fair Value | $ 46,160,000 | $ 47,640,000 |
Less than 12 months, Gross Unrealized Losses | $ (422,000) | $ (377,000) |
Unrealized Losses as Percentage of Cost | 0.90% | 0.80% |
Less than 12 Months | State and municipal | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months., Number of Securities with Unrealized Losses | Securities | 82 | 146 |
Less than 12 Months, Fair Value | $ 163,997,000 | $ 303,428,000 |
Less than 12 months, Gross Unrealized Losses | $ (939,000) | $ (3,816,000) |
Unrealized Losses as Percentage of Cost | 0.60% | 1.20% |
Less than 12 Months | Mortgage-backed securities: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months., Number of Securities with Unrealized Losses | Securities | 156 | 395 |
Less than 12 Months, Fair Value | $ 85,419,000 | $ 263,119,000 |
Less than 12 months, Gross Unrealized Losses | $ (483,000) | $ (5,347,000) |
Unrealized Losses as Percentage of Cost | 0.60% | 2.00% |
Less than 12 Months | Residential | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months., Number of Securities with Unrealized Losses | Securities | 154 | 381 |
Less than 12 Months, Fair Value | $ 81,841,000 | $ 225,117,000 |
Less than 12 months, Gross Unrealized Losses | $ (453,000) | $ (4,559,000) |
Unrealized Losses as Percentage of Cost | 0.60% | 2.00% |
Less than 12 Months | Commercial | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months., Number of Securities with Unrealized Losses | Securities | 2 | 14 |
Less than 12 Months, Fair Value | $ 3,578,000 | $ 38,002,000 |
Less than 12 months, Gross Unrealized Losses | $ (30,000) | $ (788,000) |
Unrealized Losses as Percentage of Cost | 0.80% | 2.00% |
Less than 12 Months | Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months., Number of Securities with Unrealized Losses | Securities | 31 | 9 |
Less than 12 Months, Fair Value | $ 35,407,000 | $ 7,836,000 |
Less than 12 months, Gross Unrealized Losses | $ (193,000) | $ (46,000) |
Unrealized Losses as Percentage of Cost | 0.50% | 0.60% |
Less than 12 Months | Corporates | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months., Number of Securities with Unrealized Losses | Securities | 104 | 98 |
Less than 12 Months, Fair Value | $ 158,788,000 | $ 145,089,000 |
Less than 12 months, Gross Unrealized Losses | $ (1,197,000) | $ (1,272,000) |
Unrealized Losses as Percentage of Cost | 0.70% | 0.90% |
Less than 12 Months | Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months., Number of Securities with Unrealized Losses | Securities | 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] | ||
Less than 12 Months., Number of Securities with Unrealized Losses | 0 | 3 |
Less than 12 Months, Fair Value | $ 0 | $ 2,907,000 |
Less than 12 months, Gross Unrealized Losses | $ 0 | $ (2,000) |
Unrealized Losses as Percentage of Cost | 0.00% | 0.10% |
12 Months or More | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Losses as Percentage of Cost | 2.40% | 1.80% |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 324 | 55 |
12 Months or More, Fair Value | $ 192,437,000 | $ 46,693,000 |
12 Months or More, Gross Unrealized Losses | $ (4,799,000) | $ (852,000) |
12 Months or More | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Losses as Percentage of Cost | 2.40% | 1.80% |
12 Months or More, Number of Securities with Unrealized Losses | Securities | 324 | 55 |
12 Months or More, Fair Value | $ 193,309,000 | $ 46,693,000 |
12 Months or More, Gross Unrealized Losses | $ (4,809,000) | $ (852,000) |
12 Months or More | U.S. government | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Losses as Percentage of Cost | 1.70% | 0.00% |
12 Months or More, Number of Securities with Unrealized Losses | Securities | 16 | 0 |
12 Months or More, Fair Value | $ 14,368,000 | $ 0 |
12 Months or More, Gross Unrealized Losses | $ (246,000) | $ 0 |
12 Months or More | State and municipal | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Losses as Percentage of Cost | 0.60% | 0.00% |
12 Months or More, Number of Securities with Unrealized Losses | Securities | 5 | 0 |
12 Months or More, Fair Value | $ 10,529,000 | $ 0 |
12 Months or More, Gross Unrealized Losses | $ (60,000) | $ 0 |
12 Months or More | Mortgage-backed securities: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Losses as Percentage of Cost | 2.80% | 1.60% |
12 Months or More, Number of Securities with Unrealized Losses | Securities | 288 | 47 |
12 Months or More, Fair Value | $ 150,383,000 | $ 38,428,000 |
12 Months or More, Gross Unrealized Losses | $ (4,267,000) | $ (625,000) |
12 Months or More | Residential | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Losses as Percentage of Cost | 2.80% | 3.80% |
12 Months or More, Number of Securities with Unrealized Losses | Securities | 279 | 40 |
12 Months or More, Fair Value | $ 127,317,000 | $ 11,891,000 |
12 Months or More, Gross Unrealized Losses | $ (3,644,000) | $ (474,000) |
12 Months or More | Commercial | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Losses as Percentage of Cost | 2.60% | 0.60% |
12 Months or More, Number of Securities with Unrealized Losses | Securities | 9 | 7 |
12 Months or More, Fair Value | $ 23,066,000 | $ 26,537,000 |
12 Months or More, Gross Unrealized Losses | $ (623,000) | $ (150,000) |
12 Months or More | Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Losses as Percentage of Cost | 0.20% | 0.10% |
12 Months or More, Number of Securities with Unrealized Losses | Securities | 2 | 1 |
12 Months or More, Fair Value | $ 1,561,000 | $ 519,000 |
12 Months or More, Gross Unrealized Losses | $ (3,000) | $ (1,000) |
12 Months or More | Corporates | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Losses as Percentage of Cost | 1.40% | 2.80% |
12 Months or More, Number of Securities with Unrealized Losses | Securities | 13 | 7 |
12 Months or More, Fair Value | $ 16,468,000 | $ 7,745,000 |
12 Months or More, Gross Unrealized Losses | $ (232,000) | $ (227,000) |
12 Months or More | Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Losses as Percentage of Cost | 0.00% | 0.00% |
12 Months or More, Number of Securities with Unrealized Losses | Securities | 0 | 0 |
12 Months or More, Fair Value | $ 0 | $ 0 |
12 Months or More, Gross Unrealized Losses | $ 0 | $ 0 |
12 Months or More | Short-term investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Losses as Percentage of Cost | 0.00% | 0.00% |
12 Months or More, Number of Securities with Unrealized Losses | 0 | 0 |
12 Months or More, Fair Value | $ 0 | $ 0 |
12 Months or More, Gross Unrealized Losses | 0 | $ 0 |
12 Months or more [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
12 Months or More, Fair Value | 193,309,000 | |
12 Months or More, Gross Unrealized Losses | $ (4,809,000) | |
Maximum [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Threshold for impairment evaluation, percentage of book value | 95.00% | |
Minimum | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Threshold for impairment evaluation, unrealized loss amount | $ 100,000 |
Investments - Summary of unreal
Investments - Summary of unrealized gains and losses (Details) | 12 Months Ended | |
Dec. 31, 2017USD ($)Securities | Dec. 31, 2016USD ($)Securities | |
Investments, Debt and Equity Securities [Abstract] | ||
Number of positions held with unrealized gains | 496 | 527 |
Number of positions held with unrealized losses | 722 | 737 |
Number of positions held that individually exceed unrealized gains of $500,000 | 2 | 1 |
Individual unrealized gain threshold | $ | $ 500,000 | $ 500,000 |
Number of positions held that individually exceed unrealized losses of $500,000 | 0 | 0 |
Individual unrealized loss threshold | $ | $ 500,000 | $ 500,000 |
Percentage of positions held with unrealized gains that were investment grade | 81.00% | 85.00% |
Percentage of positions held with unrealized losses that were investment grade | 97.00% | 97.00% |
Percentage of fair value held with unrealized gains that were investment grade | 81.00% | 84.00% |
Percentage of fair value held with unrealized losses that were investment grade | 95.00% | 97.00% |
Investments - Unrealized losses
Investments - Unrealized losses by age and severity (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value of Securities with Unrealized Losses | $ 683,080 | |
Total Gross Unrealized Losses | (8,042) | |
0-3 months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value of Securities with Unrealized Losses, 0-12 Months | 316,027 | |
Total Gross Unrealized Losses, 0-12 Months | (1,498) | |
3-6 months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value of Securities with Unrealized Losses, 0-12 Months | 161,848 | |
Total Gross Unrealized Losses, 0-12 Months | (1,620) | |
6-9 months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value of Securities with Unrealized Losses, 0-12 Months | 9,020 | |
Total Gross Unrealized Losses, 0-12 Months | (86) | |
9-12 months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value of Securities with Unrealized Losses, 0-12 Months | 3,748 | |
Total Gross Unrealized Losses, 0-12 Months | (39) | |
Greater than twelve months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value of Securities with Unrealized Losses, Greater Than 12 Months | 192,437 | $ 46,693 |
Total Gross Unrealized Losses, Greater Than 12 Months | (4,799) | $ (852) |
Less Than 5% as a Percentage of Amortized Cost or Cost | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses | (7,623) | |
Less Than 5% as a Percentage of Amortized Cost or Cost | 0-3 months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses, 0-12 Months | (1,498) | |
Less Than 5% as a Percentage of Amortized Cost or Cost | 3-6 months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses, 0-12 Months | (1,620) | |
Less Than 5% as a Percentage of Amortized Cost or Cost | 6-9 months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses, 0-12 Months | (86) | |
Less Than 5% as a Percentage of Amortized Cost or Cost | 9-12 months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses, 0-12 Months | (33) | |
Less Than 5% as a Percentage of Amortized Cost or Cost | Greater than twelve months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses, Greater Than 12 Months | (4,387) | |
5% - 10% as a Percentage of Amortized Cost or Cost | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses | (419) | |
5% - 10% as a Percentage of Amortized Cost or Cost | 0-3 months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses, 0-12 Months | 0 | |
5% - 10% as a Percentage of Amortized Cost or Cost | 3-6 months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses, 0-12 Months | 0 | |
5% - 10% as a Percentage of Amortized Cost or Cost | 6-9 months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses, 0-12 Months | 0 | |
5% - 10% as a Percentage of Amortized Cost or Cost | 9-12 months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses, 0-12 Months | (7) | |
5% - 10% as a Percentage of Amortized Cost or Cost | Greater than twelve months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses, Greater Than 12 Months | (412) | |
Greater Than 10% as a Percentage of Amortized Cost or Cost | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses | 0 | |
Greater Than 10% as a Percentage of Amortized Cost or Cost | 0-3 months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses, 0-12 Months | 0 | |
Greater Than 10% as a Percentage of Amortized Cost or Cost | 3-6 months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses, 0-12 Months | 0 | |
Greater Than 10% as a Percentage of Amortized Cost or Cost | 6-9 months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses, 0-12 Months | 0 | |
Greater Than 10% as a Percentage of Amortized Cost or Cost | 9-12 months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses, 0-12 Months | 0 | |
Greater Than 10% as a Percentage of Amortized Cost or Cost | Greater than twelve months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses, Greater Than 12 Months | $ 0 |
Investments - Change in unreali
Investments - Change in unrealized gains and losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Unrealized holding gains (losses) on securities arising during the period, pre-tax | $ 19,509 | $ 3,205 | $ (22,091) |
Realized (gains) losses on securities sold, pre-tax | 5,343 | 3,519 | 4,102 |
Impairment losses recognized in net earnings, pre-tax | (3,123) | (375) | (1,294) |
Unrealized holding gains (losses) on securities arising during the period, tax effects | (6,085) | (1,122) | 7,732 |
Realized (gains) losses on securities sold, tax effects | 1,870 | 1,232 | 1,436 |
Impairment losses recognized in net earnings, tax effect | (1,093) | (131) | (453) |
Change in unrealized gains (losses) on marketable securities, net, tax effects | (5,308) | (21) | 8,715 |
Unrealized holding gains (losses) on securities arising during period, net of tax | 13,424 | 2,084 | (14,359) |
Realized (gains) losses on securities sold, net of tax | 3,473 | 2,287 | 2,667 |
Impairment loss recognized in earnings, net of tax | 2,030 | 243 | 841 |
Change in unrealized gains (losses) on marketable securities, net, net of tax | 11,981 | 40 | (16,185) |
Fixed maturities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Unrealized holding gains (losses) on securities arising during the period, pre-tax | 446 | (2,153) | (18,699) |
Realized (gains) losses on securities sold, pre-tax | 160 | (671) | (2,064) |
Impairment losses recognized in net earnings, pre-tax | 3,116 | 375 | 1,294 |
Unrealized gains (losses) on investments, net, pre-tax | 3,722 | (2,449) | (19,469) |
Equity securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Unrealized holding gains (losses) on securities arising during the period, pre-tax | 19,066 | 5,359 | (3,388) |
Realized (gains) losses on securities sold, pre-tax | (5,501) | (2,851) | (2,039) |
Impairment losses recognized in net earnings, pre-tax | 0 | 0 | 0 |
Unrealized gains (losses) on investments, net, pre-tax | 13,565 | 2,508 | (5,427) |
Unrealized holding gains (losses) on securities arising during period, net of tax | 17,700 | ||
Short-term investments | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Unrealized holding gains (losses) on securities arising during the period, pre-tax | (4) | 0 | (4) |
Realized (gains) losses on securities sold, pre-tax | (1) | 3 | 0 |
Impairment losses recognized in net earnings, pre-tax | 7 | 0 | 0 |
Unrealized gains (losses) on investments, net, pre-tax | $ 2 | $ 2 | $ (4) |
Investments - Credit losses rol
Investments - Credit losses rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Credit losses on fixed maturity securities | ||
Balance at beginning of year | $ 557 | $ 683 |
Previously impaired securities | 299 | 0 |
Newly impaired securities | 13 | 0 |
Reductions for securities sold and paydowns | (116) | (127) |
Balance at end of year | $ 753 | $ 557 |
Investments - Investments by co
Investments - Investments by contractual maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
One year or less, fair value | $ 75,648 | |
One year or less, amortized cost | 75,568 | |
After one year through five years, fair value | 694,509 | |
After one year through five years, amortized cost | 693,370 | |
After five years through ten years, fair value | 223,257 | |
After five years through ten years, amortized cost | 220,275 | |
After ten years, fair value | 3,715 | |
After ten years, amortized cost basis | 3,633 | |
Mortgage-backed, asset-backed and collateralized mortgage obligations, fair value | 443,979 | |
Mortgage-backed, asset-backed and collateralized mortgage obligations, amortized cost | 447,032 | |
Fixed maturities | 1,441,107 | $ 1,390,167 |
Fixed maturities, amortized costs | 1,439,878 | $ 1,392,660 |
Securities with Unrealized Gains | ||
Schedule of Available-for-sale Securities [Line Items] | ||
One year or less, fair value | 27,184 | |
After one year through five years, fair value | 245,431 | |
After five years through ten years, fair value | 139,337 | |
After ten years, fair value | 3,715 | |
Mortgage-backed, asset-backed and collateralized mortgage obligations, fair value | 126,679 | |
Fixed maturities | 542,346 | |
Securities with Unrealized Losses | ||
Schedule of Available-for-sale Securities [Line Items] | ||
One year or less, fair value | 23,139 | |
After one year through five years, fair value | 317,699 | |
After five years through ten years, fair value | 69,472 | |
After ten years, fair value | 0 | |
Mortgage-backed, asset-backed and collateralized mortgage obligations, fair value | 272,770 | |
Fixed maturities | 683,080 | |
Securities with No Unrealized Gains or Losses | ||
Schedule of Available-for-sale Securities [Line Items] | ||
One year or less, fair value | 25,325 | |
After one year through five years, fair value | 131,378 | |
After five years through ten years, fair value | 14,449 | |
After ten years, fair value | 0 | |
Mortgage-backed, asset-backed and collateralized mortgage obligations, fair value | 44,530 | |
Fixed maturities | $ 215,682 |
Investments-Investment Income (
Investments-Investment Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |||
Interest income on fixed maturities, cash and cash equivalents | $ 37,301 | $ 35,528 | $ 36,871 |
Dividends on equity securities | 2,174 | 2,231 | 2,194 |
Gross investment income | 39,476 | 37,759 | 39,065 |
Investment expenses | (2,213) | (2,222) | (2,265) |
Net investment income | $ 37,262 | $ 35,537 | $ 36,800 |
Long-Term Debt - Long-term Debt
Long-Term Debt - Long-term Debt Less Unamortized Debt Issuance Costs (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2012 |
Debt Instrument [Line Items] | |||
Long-term debt less unamortized debt issuance costs | $ 273,809,000 | $ 273,591,000 | |
Senior Notes | Senior Notes Due 2022 | |||
Debt Instrument [Line Items] | |||
Principal | 275,000,000 | 275,000,000 | $ 275,000,000 |
Unamortized debt issuance costs | 1,191,000 | 1,409,000 | |
Long-term debt less unamortized debt issuance costs | $ 273,809,000 | $ 273,591,000 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Aug. 31, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2012 | |
Debt Instrument [Line Items] | |||||
Interest payments on debt | $ 13,800,000 | $ 13,800,000 | $ 13,800,000 | ||
US Treasury Notes Securities [Member] | |||||
Debt Instrument [Line Items] | |||||
Fair Value, Debt Instrument, Valuation Basis, US Treasury Note Rate, Term of Note Used | 10 years | ||||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Credit facility capacity | $ 50,000,000 | ||||
Term of revolving credit facility | 3 years | ||||
Senior Notes Due 2022 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Principal | 275,000,000 | $ 275,000,000 | $ 275,000,000 | ||
Coupon rate | 5.00% | ||||
Debt Issuance Costs, Gross | $ 2,200,000 | ||||
Long-term Debt, Fair Value | $ 290,800,000 | ||||
Fair value spread to U.S. Treasury Note rate | 1.25% | ||||
Treasury note rate used for debt fair value calculation | 3.658% |
Income Taxes-reconciliation to
Income Taxes-reconciliation to GAAP effective tax rate (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Tax Cuts and Jobs Act of 2017, incomplete accounting, change in tax rate, provisional income tax expense (benefit) | $ 10,184,000 | ||
Income tax payments | $ 28,300,000 | $ 6,700,000 | $ 28,500,000 |
Federal statutory income tax rate (percent) | 35.00% | ||
Remaining interest of inactive company purchased | 49.00% | ||
Income tax reconciliation | |||
Earnings before income taxes | $ 80,727,000 | 62,132,000 | 74,832,000 |
Income taxes at statutory rates | 28,254,000 | 21,746,000 | 26,191,000 |
Dividends-received deduction | (455,000) | (466,000) | (458,000) |
Tax-exempt interest | (2,442,000) | (2,456,000) | (2,713,000) |
Other | (198,000) | 223,000 | 331,000 |
Deferred tax rate adjustment | 0 | 0 | |
Provision for income taxes | $ 35,343,000 | $ 19,047,000 | $ 23,351,000 |
GAAP effective tax rate (percent) | 43.80% | 30.70% | 31.20% |
Income Taxes-Provision for inco
Income Taxes-Provision for income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | |||
Current | $ 30,332 | $ 14,782 | $ 23,133 |
Deferred | 5,011 | 4,265 | 218 |
Provision for income taxes | $ 35,343 | $ 19,047 | $ 23,351 |
Income Taxes-Deferred Tax Asset
Income Taxes-Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Discount on loss reserves | $ 5,862 | $ 4,853 |
Unearned premium reserve | 26,358 | 42,844 |
Bad debts | 3,205 | 4,972 |
Accrued bonuses | 1,937 | 2,250 |
Deferred compensation | 3,966 | 6,152 |
Long-term incentive compensation | 740 | 814 |
Other | 2,683 | 5,089 |
Gross deferred tax assets | 44,751 | 66,974 |
Valuation allowance for deferred tax assets | (195) | (326) |
Deferred tax assets, net of valuation allowance | 44,556 | 66,648 |
Deferred tax liabilities: | ||
Deferred policy acquisition costs | (18,543) | (31,897) |
Investment securities – unrealized gains | (5,966) | (3,896) |
Fixed assets | (2,379) | (5,037) |
Loss reserve transition liability | (3,120) | 0 |
Other | (382) | (1,405) |
Net deferred tax assets | (30,390) | (42,235) |
Net deferred tax assets | 14,166 | 24,413 |
Current income taxes | (4,811) | (2,778) |
Current and deferred income taxes | $ 9,355 | $ 21,635 |
Computation Of Earnings Per S65
Computation Of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Computation of net earnings per share | |||||||||||||||
Net earnings | $ 14,713 | $ 14,978 | $ 5,046 | $ 10,646 | $ 21,609 | $ 2,753 | $ 11,015 | $ 7,708 | $ 11,097 | $ 15,737 | $ 13,493 | $ 11,154 | $ 45,384 | $ 43,085 | $ 51,481 |
Average basic shares outstanding (shares) | 10,984 | 11,018 | 11,334 | ||||||||||||
Basic earnings per share (usd per share) | $ 1.35 | $ 1.36 | $ 0.46 | $ 0.97 | $ 1.96 | $ 0.25 | $ 1 | $ 0.70 | $ 0.99 | $ 1.39 | $ 1.18 | $ 0.98 | $ 4.13 | $ 3.91 | $ 4.54 |
Average diluted shares outstanding (shares) | 11,067 | 11,101 | 11,417 | ||||||||||||
Diluted earnings per share (usd per share) | $ 1.34 | $ 1.35 | $ 0.46 | $ 0.96 | $ 1.95 | $ 0.25 | $ 0.99 | $ 0.69 | $ 0.99 | $ 1.38 | $ 1.18 | $ 0.97 | $ 4.10 | $ 3.88 | $ 4.51 |
Restricted stock | |||||||||||||||
Computation of net earnings per share | |||||||||||||||
Dilutive shares | 22 | 26 | 16 | ||||||||||||
Performance Shares | |||||||||||||||
Computation of net earnings per share | |||||||||||||||
Dilutive shares | 62 | 57 | 67 |
Share-Based Compensation - Plan
Share-Based Compensation - Plans (Details) | May 21, 2013shares |
2013 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares reserved for future issuance (shares) | 750,000 |
Share-Based Compensation - Shar
Share-Based Compensation - Share Awards (Details) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Non-employee Directors' Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued, net of forfeitures (shares) | 0 | ||
2013 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued, net of forfeitures (shares) | 53,945 | 31,719 | 5,400 |
Prior Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued, net of forfeitures (shares) | 37,155 | ||
Officers | 2013 Plan | Restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued, net of forfeitures (shares) | 14,500 | 0 | (1,613) |
Officers | 2013 Plan | Non-employee Directors' Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued, net of forfeitures (shares) | 6,680 | 7,596 | 7,013 |
Officers | 2013 Plan | Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued, net of forfeitures (shares) | 32,765 | 24,123 | 0 |
Officers | Prior Plan | Restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued, net of forfeitures (shares) | 0 | ||
Officers | Prior Plan | Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued, net of forfeitures (shares) | 37,155 |
Share-Based Compensation - Comp
Share-Based Compensation - Compensation Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expense Recognized in Earnings | $ 4,596 | $ 2,343 | $ 3,148 |
Tax Benefit | 1,045 | 804 | 1,086 |
Restricted Stock Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expense Recognized in Earnings | 765 | 1,037 | 799 |
Tax Benefit | 161 | 363 | 280 |
Directors Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expense Recognized in Earnings | 646 | 600 | 510 |
Tax Benefit | 226 | 210 | 178 |
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expense Recognized in Earnings | 50 | 46 | 45 |
Tax Benefit | 0 | 0 | 0 |
PSP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expense Recognized in Earnings | 3,135 | 661 | 1,795 |
Tax Benefit | $ 658 | $ 231 | $ 628 |
Share-Based Compensation Share-
Share-Based Compensation Share-Based Compensation - Restricted Stock Activity (Details) - $ / shares | Oct. 19, 2018 | Nov. 02, 2017 | Aug. 05, 2017 | Dec. 31, 2017 |
Restricted stock | ||||
Number of Shares | ||||
Nonvested options, beginning balance (in shares) | 44,715 | |||
Shares expected to vest (in shares) | (37,244) | |||
Awards granted (shares) | 14,500 | |||
Nonvested options, ending balance (in shares) | 21,971 | |||
Weighted-average Grant Date Fair Value | ||||
Nonvested options, beginning balance (in dollars per share) | $ 69.54 | |||
Shares expected to vest (in dollars per share) | 67.04 | |||
Awards granted (in dollars per share) | 93.70 | |||
Nonvested options, ending balance (in dollars per share) | $ 89.73 | |||
Officers | 2013 Plan | ||||
Number of Shares | ||||
Shares expected to vest (in shares) | (37,244) | |||
Awards granted (shares) | 14,500 | |||
Forecast | Officers | 2013 Plan | ||||
Number of Shares | ||||
Awards granted (shares) | 7,471 |
Share-Based Compensation - Empl
Share-Based Compensation - Employee Stock Purchase Plan (Details) - ESPP | 12 Months Ended |
Dec. 31, 2017USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares reserved for issuance (in shares) | 1,000,000 |
Outstanding (in shares) | 76,526 |
Common Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Discount from market price on purchase date | 15.00% |
Maximum percentage of employee base salary | 25.00% |
Maximum annual purchase amount per employee | $ | $ 25,000 |
Benefit Plans-Narrative (Detail
Benefit Plans-Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Maximum employee annual contribution | $ 18,000 | ||
Maximum employee annual contribution, percent | 25.00% | ||
Minimum age eligible for catch-up contributions | 50 years | ||
Maximum employee annual catch-up contribution | $ 6,000 | ||
Maximum annual contribution per employee, amount | 13,500 | ||
Employer contribution | 5,500,000 | $ 5,100,000 | $ 4,900,000 |
Unrecognized actuarial gain, gross | (900,000) | ||
Unrecognized actuarial gain, net | 600,000 | ||
Net prior service cost, before tax | 100,000 | ||
Net prior service cost, after tax | 100,000 | ||
Amortization of net gains (losses) | 100,000 | ||
Amortization of prior service cost | 100,000 | ||
Funded status at end of year | (3,769,000) | (3,613,000) | |
Estimated future employer contributions in next fiscal year | 300,000 | ||
Benefit obligation | 3,769,000 | 3,613,000 | 3,729,000 |
Deferred compensation, excluding share-based payments and retirement benefits [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Recorded liability | 18,900,000 | 17,600,000 | 16,600,000 |
Interest expense | 700,000 | 700,000 | 600,000 |
Supplemental Employee Retirement Plan, Defined Benefit [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Employer contribution | 100,000 | $ 100,000 | $ 100,000 |
Rabbi Trust [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Investments in the rabbi trust | $ 2,600,000 | ||
Threshold One [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Maximum employer annual contribution per employee, (percent) | 4.00% | ||
Employer match after initial threshold, percent | 100.00% | ||
Threshold Two [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Maximum employer annual contribution per employee, (percent) | 2.00% | ||
Employer match after initial threshold, percent | 50.00% |
Benefit Plans-Net Benefit Oblig
Benefit Plans-Net Benefit Obligation at End of Year (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Net benefit obligation at end of year | $ 3,613 | $ 3,729 | |
Service cost | 173 | 183 | $ 235 |
Interest cost | 125 | 132 | 146 |
Participant contributions | 31 | 37 | |
Assumption change | 168 | 44 | |
Actuarial gain | (14) | (176) | |
Gross benefits paid | (326) | (338) | |
Net benefit obligation at end of year | $ 3,769 | $ 3,613 | $ 3,729 |
Benefit Plans-Weighted Average
Benefit Plans-Weighted Average Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 3.20% | 3.60% | 3.70% |
Health care cost trend rate assumed for next fiscal year | 7.50% | ||
Ultimate health care cost trend rate | 5.00% | ||
Year that rate reaches ultimate trend rate | 2,038 |
Benefit Plans-Net Periodic Bene
Benefit Plans-Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||
Service cost | $ 173 | $ 183 | $ 235 |
Interest cost | 125 | 132 | 146 |
Amortization of prior service cost | 71 | 71 | 71 |
Amortization of net cumulative gain | (121) | (114) | (5) |
Net periodic post-retirement benefit cost | $ 247 | $ 273 | $ 447 |
Benefit Plans-Effect of One-Per
Benefit Plans-Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates [Abstract] | |||
Post-retirement benefit obligations 1% increase | $ 188 | $ 184 | $ 304 |
Post-retirement benefit obligations 1% decrease | (172) | (162) | (269) |
Service and interest cost components 1% increase | 36 | 40 | 49 |
Service and interest cost components 1% decrease | $ (31) | $ (34) | $ (42) |
Benefit Plans-Fair Value of Pla
Benefit Plans-Fair Value of Plan Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | $ 0 | $ 0 |
Employer contributions | 295 | 301 |
Participant contributions | 31 | 37 |
Gross benefits paid | (326) | (338) |
Fair value of plan assets at end of year | $ 0 | $ 0 |
Benefit Plans- Amount Recognize
Benefit Plans- Amount Recognized in Balance Sheet (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |||
Fair value of plan assets | $ 0 | $ 0 | $ 0 |
Benefit obligation | 3,769 | 3,613 | $ 3,729 |
Funded status at end of year | (3,769) | (3,613) | |
Contributions made after the measurement date | 0 | 0 | |
Unrecognized actuarial net (gain) loss | 0 | 0 | |
Unrecognized prior service cost | $ 0 | $ 0 |
Benefit Plans- Expected Future
Benefit Plans- Expected Future Benefit Payments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |||
Next twelve months | $ 266 | $ 295 | $ 301 |
Year two | 276 | 287 | 280 |
Year three | 283 | 289 | 281 |
Year four | 280 | 281 | 294 |
Year five | 287 | 283 | 287 |
Years five through ten | 1,627 | 1,549 | 1,583 |
Total expected future benefit payments | 3,020 | $ 2,983 | $ 3,026 |
Estimated future employer contributions in next fiscal year | $ 300 |
Quarterly Operating Results (De
Quarterly Operating Results (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||
Total revenues | $ 382,602 | $ 380,701 | $ 376,886 | $ 377,797 | $ 415,336 | $ 378,124 | $ 375,084 | $ 370,162 | $ 369,919 | $ 372,383 | $ 374,757 | $ 366,973 | $ 1,517,987 | $ 1,538,706 | $ 1,484,032 |
Net earnings | $ 14,713 | $ 14,978 | $ 5,046 | $ 10,646 | $ 21,609 | $ 2,753 | $ 11,015 | $ 7,708 | $ 11,097 | $ 15,737 | $ 13,493 | $ 11,154 | $ 45,384 | $ 43,085 | $ 51,481 |
Basic earnings per share (usd per share) | $ 1.35 | $ 1.36 | $ 0.46 | $ 0.97 | $ 1.96 | $ 0.25 | $ 1 | $ 0.70 | $ 0.99 | $ 1.39 | $ 1.18 | $ 0.98 | $ 4.13 | $ 3.91 | $ 4.54 |
Diluted earnings per share (usd per share) | $ 1.34 | $ 1.35 | $ 0.46 | $ 0.96 | $ 1.95 | $ 0.25 | $ 0.99 | $ 0.69 | $ 0.99 | $ 1.38 | $ 1.18 | $ 0.97 | $ 4.10 | $ 3.88 | $ 4.51 |
Realized gains (losses) on investments | $ 256 | $ (431) | $ 1,886 | $ 509 | $ 1,887 | $ 1,282 | $ (164) | $ 139 | $ 1,835 | $ (410) | $ 214 | $ 1,169 | $ 2,220 | $ 3,145 | $ 2,809 |
Insurance Reserves - Changes in
Insurance Reserves - Changes in Liability for Losses and LAE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Balance at Beginning of Period [Abstract] | |||
Unpaid losses on known claims | $ 238,412 | $ 237,660 | $ 235,037 |
IBNR losses | 306,641 | 290,097 | 277,482 |
LAE | 140,402 | 142,207 | 155,658 |
Total unpaid losses and LAE | 685,455 | 669,965 | 668,177 |
Reinsurance recoverables | (17,130) | (14,694) | (14,370) |
Unpaid losses and LAE, net of reinsurance recoverables | 668,325 | 655,271 | 653,808 |
Current Activity [Abstract] | |||
Loss and LAE incurred, current accident year | 1,072,191 | 1,120,756 | 1,064,927 |
Favorable (unfavorable) development on prior accident years | (18,494) | (24,001) | (28,926) |
Total loss and LAE incurred | 1,053,697 | 1,096,755 | 1,036,001 |
Loss and LAE payments, current accident year | (657,252) | (687,554) | (656,317) |
Loss and LAE payments, prior accident years | (381,281) | (396,147) | (378,221) |
Total loss and LAE payments | (1,038,533) | (1,083,701) | (1,034,538) |
Balance at End of Period [Abstract] | |||
Unpaid losses and LAE, net of reinsurance recoverables | 683,489 | 668,325 | 655,271 |
Add back reinsurance recoverables | 31,609 | 17,130 | 14,694 |
Total unpaid losses and LAE | 715,098 | 685,455 | 669,965 |
Unpaid losses on known claims | 264,470 | 238,412 | 237,660 |
IBNR losses | 312,516 | 306,641 | 290,097 |
LAE | $ 138,112 | $ 140,402 | $ 142,207 |
Insurance Reserves - Incurred L
Insurance Reserves - Incurred Losses and Cumulative Paid Claims for Prior Ten Accident Years (Details) $ in Thousands | Dec. 31, 2017USD ($)reported_claim$ / reported_claim | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2009USD ($) | Dec. 31, 2008USD ($) |
Claims Development [Line Items] | ||||||||||
Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance recoverable | $ 599,894 | |||||||||
Personal Auto - Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance recoverable | 4,916,644 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance recoverable | 4,448,532 | |||||||||
Outstanding liabilities for unpaid losses and ALAE prior to 2008, net of reinsurance recoverable | 1,116 | |||||||||
Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance recoverable | 469,228 | |||||||||
Personal Auto - Physical Damage | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance recoverable | 2,084,845 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance recoverable | 2,073,098 | |||||||||
Outstanding liabilities for unpaid losses and ALAE prior to 2008, net of reinsurance recoverable | 4 | |||||||||
Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance recoverable | 11,752 | |||||||||
Commercial Auto - Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance recoverable | 468,275 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance recoverable | 358,792 | |||||||||
Outstanding liabilities for unpaid losses and ALAE prior to 2008, net of reinsurance recoverable | 8 | |||||||||
Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance recoverable | 109,491 | |||||||||
Commercial Auto - Physical Damage | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance recoverable | 98,537 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance recoverable | 96,935 | |||||||||
Outstanding liabilities for unpaid losses and ALAE prior to 2008, net of reinsurance recoverable | 0 | |||||||||
Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance recoverable | 1,602 | |||||||||
2008 | Personal Auto - Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance recoverable | 340,829 | $ 340,785 | $ 340,998 | $ 341,566 | $ 343,137 | $ 342,775 | $ 344,914 | $ 348,841 | $ 365,395 | $ 370,950 |
IBNR & expected development on reported claims | $ 70 | |||||||||
Cumulative number of reported claims | reported_claim | 151,692 | |||||||||
Severity | $ / reported_claim | 2,246 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance recoverable | $ 340,726 | 340,649 | 340,495 | 340,305 | 339,436 | 336,700 | 331,628 | 317,660 | 284,203 | 164,563 |
2008 | Personal Auto - Physical Damage | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance recoverable | 168,299 | 168,272 | 168,252 | 168,356 | 168,353 | 168,366 | 168,261 | 168,284 | 167,898 | 174,923 |
IBNR & expected development on reported claims | $ 0 | |||||||||
Cumulative number of reported claims | reported_claim | 95,511 | |||||||||
Severity | $ / reported_claim | 1,762 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance recoverable | $ 168,299 | 168,311 | 168,336 | 168,368 | 168,386 | 168,363 | 168,248 | 168,207 | 168,890 | 155,754 |
2008 | Commercial Auto - Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance recoverable | 13,889 | 13,890 | 13,890 | 13,865 | 13,939 | 14,218 | 14,778 | 14,845 | 17,047 | 20,258 |
IBNR & expected development on reported claims | $ 0 | |||||||||
Cumulative number of reported claims | reported_claim | 4,100 | |||||||||
Severity | $ / reported_claim | 3,387 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance recoverable | $ 13,888 | 13,888 | 13,888 | 13,842 | 13,841 | 13,780 | 13,224 | 12,124 | 10,367 | 5,471 |
2008 | Commercial Auto - Physical Damage | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance recoverable | 4,106 | 4,106 | 4,106 | 4,108 | 4,106 | 4,102 | 4,115 | 4,115 | 4,140 | 4,199 |
IBNR & expected development on reported claims | $ 0 | |||||||||
Cumulative number of reported claims | reported_claim | 2,495 | |||||||||
Severity | $ / reported_claim | 1,646 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance recoverable | $ 4,106 | 4,106 | 4,106 | 4,106 | 4,106 | 4,106 | 4,107 | 4,100 | 4,122 | $ 3,623 |
2009 | Personal Auto - Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance recoverable | 330,394 | 330,152 | 330,315 | 330,929 | 332,731 | 333,895 | 334,823 | 336,224 | 357,137 | |
IBNR & expected development on reported claims | $ 143 | |||||||||
Cumulative number of reported claims | reported_claim | 145,958 | |||||||||
Severity | $ / reported_claim | 2,263 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance recoverable | $ 330,032 | 329,793 | 329,386 | 328,647 | 326,575 | 322,313 | 309,115 | 270,633 | 153,561 | |
2009 | Personal Auto - Physical Damage | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance recoverable | 144,613 | 143,208 | 142,685 | 141,594 | 138,983 | 137,972 | 137,949 | 137,104 | 140,256 | |
IBNR & expected development on reported claims | $ 0 | |||||||||
Cumulative number of reported claims | reported_claim | 84,871 | |||||||||
Severity | $ / reported_claim | 1,704 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance recoverable | $ 143,363 | 143,282 | 142,403 | 141,385 | 138,878 | 138,150 | 138,063 | 137,902 | 131,593 | |
2009 | Commercial Auto - Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance recoverable | 22,109 | 22,120 | 22,137 | 22,265 | 22,332 | 23,687 | 25,977 | 26,644 | 30,227 | |
IBNR & expected development on reported claims | $ 0 | |||||||||
Cumulative number of reported claims | reported_claim | 5,878 | |||||||||
Severity | $ / reported_claim | 3,761 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance recoverable | $ 22,106 | 22,090 | 22,084 | 22,073 | 21,962 | 21,481 | 20,695 | 16,508 | 8,704 | |
2009 | Commercial Auto - Physical Damage | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance recoverable | 5,264 | 5,265 | 5,266 | 5,269 | 5,266 | 5,257 | 5,249 | 5,259 | 5,400 | |
IBNR & expected development on reported claims | $ 0 | |||||||||
Cumulative number of reported claims | reported_claim | 3,181 | |||||||||
Severity | $ / reported_claim | 1,655 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance recoverable | $ 5,264 | 5,265 | 5,267 | 5,266 | 5,267 | 5,253 | 5,234 | 5,227 | $ 4,759 | |
2010 | Personal Auto - Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance recoverable | 405,351 | 404,807 | 406,279 | 404,872 | 406,602 | 404,963 | 400,888 | 386,452 | ||
IBNR & expected development on reported claims | $ 348 | |||||||||
Cumulative number of reported claims | reported_claim | 170,120 | |||||||||
Severity | $ / reported_claim | 2,381 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance recoverable | $ 404,805 | 403,976 | 401,597 | 397,254 | 391,125 | 374,717 | 332,625 | 182,160 | ||
2010 | Personal Auto - Physical Damage | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance recoverable | 152,772 | 152,670 | 152,656 | 152,753 | 152,651 | 152,628 | 153,279 | 154,850 | ||
IBNR & expected development on reported claims | $ 0 | |||||||||
Cumulative number of reported claims | reported_claim | 100,585 | |||||||||
Severity | $ / reported_claim | 1,519 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance recoverable | $ 152,797 | 152,805 | 152,812 | 152,770 | 152,759 | 152,821 | 153,295 | 143,751 | ||
2010 | Commercial Auto - Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance recoverable | 26,917 | 26,949 | 27,332 | 26,881 | 28,020 | 29,343 | 32,609 | 34,557 | ||
IBNR & expected development on reported claims | $ 0 | |||||||||
Cumulative number of reported claims | reported_claim | 7,276 | |||||||||
Severity | $ / reported_claim | 3,699 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance recoverable | $ 26,850 | 26,838 | 26,774 | 26,177 | 25,678 | 23,600 | 19,375 | 10,156 | ||
2010 | Commercial Auto - Physical Damage | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance recoverable | 6,510 | 6,511 | 6,513 | 6,515 | 6,519 | 6,538 | 6,540 | 6,765 | ||
IBNR & expected development on reported claims | $ 0 | |||||||||
Cumulative number of reported claims | reported_claim | 3,929 | |||||||||
Severity | $ / reported_claim | 1,657 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance recoverable | $ 6,511 | 6,511 | 6,512 | 6,513 | 6,513 | 6,520 | 6,528 | $ 5,953 | ||
2011 | Personal Auto - Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance recoverable | 457,242 | 456,862 | 459,418 | 458,171 | 459,406 | 453,746 | 425,619 | |||
IBNR & expected development on reported claims | $ 551 | |||||||||
Cumulative number of reported claims | reported_claim | 187,717 | |||||||||
Severity | $ / reported_claim | 2,433 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance recoverable | $ 456,030 | 454,637 | 450,718 | 442,710 | 423,456 | 374,930 | 201,769 | |||
2011 | Personal Auto - Physical Damage | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance recoverable | 179,128 | 179,043 | 179,090 | 179,399 | 178,993 | 179,265 | 183,016 | |||
IBNR & expected development on reported claims | $ 0 | |||||||||
Cumulative number of reported claims | reported_claim | 120,196 | |||||||||
Severity | $ / reported_claim | 1,490 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance recoverable | $ 179,196 | 179,224 | 179,274 | 179,209 | 179,066 | 179,315 | 172,598 | |||
2011 | Commercial Auto - Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance recoverable | 27,798 | 27,772 | 28,396 | 28,318 | 29,448 | 32,272 | 33,090 | |||
IBNR & expected development on reported claims | $ 44 | |||||||||
Cumulative number of reported claims | reported_claim | 7,613 | |||||||||
Severity | $ / reported_claim | 3,646 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance recoverable | $ 27,721 | 27,641 | 27,489 | 26,768 | 25,402 | 21,665 | 11,046 | |||
2011 | Commercial Auto - Physical Damage | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance recoverable | 6,732 | 6,735 | 6,734 | 6,734 | 6,754 | 6,822 | 7,204 | |||
IBNR & expected development on reported claims | $ 0 | |||||||||
Cumulative number of reported claims | reported_claim | 3,884 | |||||||||
Severity | $ / reported_claim | 1,733 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance recoverable | $ 6,734 | 6,734 | 6,734 | 6,727 | 6,724 | 6,762 | $ 6,351 | |||
2012 | Personal Auto - Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance recoverable | 536,492 | 538,233 | 541,696 | 540,572 | 540,012 | 521,603 | ||||
IBNR & expected development on reported claims | $ 1,391 | |||||||||
Cumulative number of reported claims | reported_claim | 216,394 | |||||||||
Severity | $ / reported_claim | 2,473 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance recoverable | $ 533,039 | 529,190 | 521,104 | 501,466 | 444,359 | 246,387 | ||||
2012 | Personal Auto - Physical Damage | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance recoverable | 209,994 | 209,933 | 209,905 | 210,690 | 210,510 | 218,216 | ||||
IBNR & expected development on reported claims | $ 0 | |||||||||
Cumulative number of reported claims | reported_claim | 143,891 | |||||||||
Severity | $ / reported_claim | 1,459 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance recoverable | $ 210,119 | 210,164 | 210,102 | 210,170 | 210,945 | 204,047 | ||||
2012 | Commercial Auto - Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance recoverable | 37,077 | 37,722 | 38,279 | 38,144 | 38,781 | 42,396 | ||||
IBNR & expected development on reported claims | $ 51 | |||||||||
Cumulative number of reported claims | reported_claim | 8,681 | |||||||||
Severity | $ / reported_claim | 4,265 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance recoverable | $ 36,840 | 36,469 | 35,505 | 33,381 | 27,182 | 14,608 | ||||
2012 | Commercial Auto - Physical Damage | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance recoverable | 8,093 | 8,110 | 8,126 | 8,140 | 8,169 | 8,690 | ||||
IBNR & expected development on reported claims | $ 0 | |||||||||
Cumulative number of reported claims | reported_claim | 4,438 | |||||||||
Severity | $ / reported_claim | 1,823 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance recoverable | $ 8,096 | 8,109 | 8,118 | 8,120 | 8,140 | $ 7,665 | ||||
2013 | Personal Auto - Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance recoverable | 568,744 | 568,481 | 575,727 | 589,991 | 588,566 | |||||
IBNR & expected development on reported claims | $ 5,325 | |||||||||
Cumulative number of reported claims | reported_claim | 219,395 | |||||||||
Severity | $ / reported_claim | 2,568 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance recoverable | $ 556,695 | 548,631 | 530,162 | 477,408 | 271,961 | |||||
2013 | Personal Auto - Physical Damage | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance recoverable | 214,007 | 213,888 | 213,701 | 215,469 | 216,472 | |||||
IBNR & expected development on reported claims | $ 70 | |||||||||
Cumulative number of reported claims | reported_claim | 145,504 | |||||||||
Severity | $ / reported_claim | 1,470 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance recoverable | $ 214,138 | 214,139 | 214,026 | 214,631 | 208,503 | |||||
2013 | Commercial Auto - Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance recoverable | 41,342 | 42,317 | 43,025 | 42,327 | 52,590 | |||||
IBNR & expected development on reported claims | $ 376 | |||||||||
Cumulative number of reported claims | reported_claim | 9,688 | |||||||||
Severity | $ / reported_claim | 4,228 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance recoverable | $ 39,464 | 38,178 | 36,150 | 30,953 | 15,276 | |||||
2013 | Commercial Auto - Physical Damage | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance recoverable | 9,082 | 9,090 | 9,057 | 9,112 | 9,567 | |||||
IBNR & expected development on reported claims | $ 0 | |||||||||
Cumulative number of reported claims | reported_claim | 4,744 | |||||||||
Severity | $ / reported_claim | 1,914 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance recoverable | $ 9,091 | 9,092 | 9,049 | 9,085 | $ 8,557 | |||||
2014 | Personal Auto - Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance recoverable | 562,673 | 561,861 | 572,955 | 569,899 | ||||||
IBNR & expected development on reported claims | $ 14,989 | |||||||||
Cumulative number of reported claims | reported_claim | 213,517 | |||||||||
Severity | $ / reported_claim | 2,565 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance recoverable | $ 539,701 | 521,257 | 470,297 | 270,893 | ||||||
2014 | Personal Auto - Physical Damage | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance recoverable | 223,014 | 223,068 | 223,130 | 237,379 | ||||||
IBNR & expected development on reported claims | $ 157 | |||||||||
Cumulative number of reported claims | reported_claim | 140,849 | |||||||||
Severity | $ / reported_claim | 1,582 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance recoverable | $ 223,204 | 223,430 | 224,311 | 214,491 | ||||||
2014 | Commercial Auto - Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance recoverable | 54,883 | 53,700 | 52,320 | 54,452 | ||||||
IBNR & expected development on reported claims | $ 1,516 | |||||||||
Cumulative number of reported claims | reported_claim | 11,399 | |||||||||
Severity | $ / reported_claim | 4,682 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance recoverable | $ 49,167 | 44,168 | 36,152 | 18,518 | ||||||
2014 | Commercial Auto - Physical Damage | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance recoverable | 10,937 | 10,982 | 10,984 | 11,272 | ||||||
IBNR & expected development on reported claims | $ 0 | |||||||||
Cumulative number of reported claims | reported_claim | 5,362 | |||||||||
Severity | $ / reported_claim | 2,040 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance recoverable | $ 10,953 | 10,963 | 11,010 | $ 10,110 | ||||||
2015 | Personal Auto - Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance recoverable | 581,699 | 582,177 | 583,490 | |||||||
IBNR & expected development on reported claims | $ 24,375 | |||||||||
Cumulative number of reported claims | reported_claim | 216,638 | |||||||||
Severity | $ / reported_claim | 2,573 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance recoverable | $ 537,670 | 488,501 | 282,064 | |||||||
2015 | Personal Auto - Physical Damage | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance recoverable | 258,293 | 258,967 | 255,569 | |||||||
IBNR & expected development on reported claims | $ 418 | |||||||||
Cumulative number of reported claims | reported_claim | 149,543 | |||||||||
Severity | $ / reported_claim | 1,724 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance recoverable | $ 258,747 | 260,349 | 248,200 | |||||||
2015 | Commercial Auto - Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance recoverable | 74,418 | 70,252 | 67,731 | |||||||
IBNR & expected development on reported claims | $ 2,405 | |||||||||
Cumulative number of reported claims | reported_claim | 13,809 | |||||||||
Severity | $ / reported_claim | 5,215 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance recoverable | $ 60,558 | 49,828 | 24,840 | |||||||
2015 | Commercial Auto - Physical Damage | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance recoverable | 14,201 | 14,062 | 14,117 | |||||||
IBNR & expected development on reported claims | $ 42 | |||||||||
Cumulative number of reported claims | reported_claim | 6,357 | |||||||||
Severity | $ / reported_claim | 2,227 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance recoverable | $ 14,200 | 14,104 | $ 13,079 | |||||||
2016 | Personal Auto - Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance recoverable | 582,451 | 596,021 | ||||||||
IBNR & expected development on reported claims | $ 45,447 | |||||||||
Cumulative number of reported claims | reported_claim | 212,174 | |||||||||
Severity | $ / reported_claim | 2,531 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance recoverable | $ 483,874 | 290,108 | ||||||||
2016 | Personal Auto - Physical Damage | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance recoverable | 269,680 | 278,305 | ||||||||
IBNR & expected development on reported claims | $ 1,533 | |||||||||
Cumulative number of reported claims | reported_claim | 147,334 | |||||||||
Severity | $ / reported_claim | 1,820 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance recoverable | $ 271,370 | 264,108 | ||||||||
2016 | Commercial Auto - Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance recoverable | 80,418 | 79,025 | ||||||||
IBNR & expected development on reported claims | $ 6,591 | |||||||||
Cumulative number of reported claims | reported_claim | 14,651 | |||||||||
Severity | $ / reported_claim | 5,039 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance recoverable | $ 52,993 | 27,539 | ||||||||
2016 | Commercial Auto - Physical Damage | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance recoverable | 16,273 | 16,512 | ||||||||
IBNR & expected development on reported claims | $ 150 | |||||||||
Cumulative number of reported claims | reported_claim | 6,917 | |||||||||
Severity | $ / reported_claim | 2,331 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance recoverable | $ 16,279 | $ 14,929 | ||||||||
2017 | Personal Auto - Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance recoverable | 550,769 | |||||||||
IBNR & expected development on reported claims | $ 159,366 | |||||||||
Cumulative number of reported claims | reported_claim | 185,635 | |||||||||
Severity | $ / reported_claim | 2,108 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance recoverable | $ 265,959 | |||||||||
2017 | Personal Auto - Physical Damage | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance recoverable | 265,045 | |||||||||
IBNR & expected development on reported claims | $ 28,822 | |||||||||
Cumulative number of reported claims | reported_claim | 135,189 | |||||||||
Severity | $ / reported_claim | 1,747 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance recoverable | $ 251,865 | |||||||||
2017 | Commercial Auto - Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance recoverable | 89,425 | |||||||||
IBNR & expected development on reported claims | $ 33,014 | |||||||||
Cumulative number of reported claims | reported_claim | 14,085 | |||||||||
Severity | $ / reported_claim | 4,005 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance recoverable | $ 29,203 | |||||||||
2017 | Commercial Auto - Physical Damage | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance recoverable | 17,340 | |||||||||
IBNR & expected development on reported claims | $ 2,132 | |||||||||
Cumulative number of reported claims | reported_claim | 6,605 | |||||||||
Severity | $ / reported_claim | 2,302 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance recoverable | $ 15,701 |
Insurance Reserves - Reconcilia
Insurance Reserves - Reconciliation of Net Incurred and Paid Development Tables to Liability for Unpaid Losses and LAE (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liabilities for unpaid losses and LAE, net of reinsurance | $ 599,894 | |||
Reinsurance recoverables | 31,609 | $ 17,130 | $ 14,694 | $ 14,370 |
Unallocated loss adjustment expenses | 83,596 | |||
Gross liability for unpaid losses and LAE | 715,098 | $ 685,455 | $ 669,965 | $ 668,177 |
Personal Auto - Liability | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liabilities for unpaid losses and LAE, net of reinsurance | 469,228 | |||
Reinsurance recoverables | 6,993 | |||
Personal Auto - Physical Damage | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liabilities for unpaid losses and LAE, net of reinsurance | 11,752 | |||
Reinsurance recoverables | 11,813 | |||
Commercial Auto - Liability | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liabilities for unpaid losses and LAE, net of reinsurance | 109,491 | |||
Reinsurance recoverables | 48 | |||
Commercial Auto - Physical Damage | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liabilities for unpaid losses and LAE, net of reinsurance | 1,602 | |||
Reinsurance recoverables | 11,752 | |||
Other Lines | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liabilities for unpaid losses and LAE, net of reinsurance | 7,821 | |||
Reinsurance recoverables | $ 1,003 |
Insurance Reserves - Average An
Insurance Reserves - Average Annual Percentage Payout (Details) | Dec. 31, 2017 |
Personal Auto - Liability | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 47.20% |
Year 2 | 35.70% |
Year 3 | 10.00% |
Year 4 | 3.90% |
Year 5 | 1.60% |
Year 6 | 0.90% |
Year 7 | 0.30% |
Year 8 | 0.10% |
Year 9 | 0.10% |
Year 10 | 0.10% |
Personal Auto - Physical Damage | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 95.40% |
Year 2 | 4.50% |
Year 3 | (0.40%) |
Year 4 | (0.10%) |
Year 5 | 0.00% |
Year 6 | 0.20% |
Year 7 | 0.10% |
Year 8 | 0.10% |
Year 9 | (0.10%) |
Year 10 | 0.40% |
Commercial Auto - Liability | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 36.70% |
Year 2 | 35.10% |
Year 3 | 15.60% |
Year 4 | 7.10% |
Year 5 | 3.50% |
Year 6 | 1.50% |
Year 7 | 0.20% |
Year 8 | 0.10% |
Year 9 | 0.10% |
Year 10 | 0.00% |
Commercial Auto - Physical Damage | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 92.00% |
Year 2 | 8.10% |
Year 3 | (0.20%) |
Year 4 | 0.10% |
Year 5 | 0.00% |
Year 6 | 0.00% |
Year 7 | 0.00% |
Year 8 | 0.00% |
Year 9 | 0.00% |
Year 10 | 0.00% |
Reinsurance-Table (Details)
Reinsurance-Table (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reinsurance Disclosures [Abstract] | |||
Direct written premium, gross amount | $ 1,397,276 | $ 1,401,378 | $ 1,387,864 |
Direct written premium, amount assumed from other companies | 18 | 36 | 2 |
Direct written premium, amount ceded to other companies | (10,441) | (8,955) | (14,579) |
Direct written premium, net amount | $ 1,386,853 | $ 1,392,459 | $ 1,373,287 |
Direct written premium, percentage of amount assumed to net | 0.00% | 0.00% | 0.00% |
Direct earned premium, gross amount | $ 1,384,048 | $ 1,403,682 | $ 1,360,473 |
Direct earned premium, amount assumed from other companies | 18 | 34 | 4 |
Direct earned premium, amount ceded to other companies | (12,730) | (12,052) | (13,913) |
Direct earned premium, net amount | $ 1,371,336 | $ 1,391,664 | $ 1,346,564 |
Direct earned premium, percentage of amount assumed to net | 0.00% | 0.00% | 0.00% |
Reinsurance- Narrative (Details
Reinsurance- Narrative (Details) - USD ($) | Jun. 01, 2016 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||
Liability for unpaid losses and LAE | $ 9,400,000 | $ 9,700,000 | $ 10,000,000 | ||
Amount assumed from other companies (less than) | 1,000 | ||||
Catastrophe reinsurance, additional coverage, third party recovery, percentage | 50.00% | 100.00% | |||
Additional coverage, loss coverage base per event | $ 25,000,000 | 95,000,000 | 95,000,000 | $ 55,000,000 | |
Additional coverage, minimum loss threshold per event | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | |
Property catastrophe reinsurance, first layer | $ 10,000,000 | $ 10,000,000 | |||
First layer percentage reinsured | 50.00% | ||||
Remaining layers percentage reinsured | 100.00% | ||||
Unearned premium returned due to termination of excess loss contract | $ 2,600,000 | 5,900,000 | |||
Ceding commissions | 1,800,000 | ||||
Reduction in losses due to amount ceded to other companies | 33,900,000 | 8,000,000 | 4,300,000 | ||
General liability [Member] | |||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||
Quota share for general liability | 75.00% | ||||
Involuntary Pools and Associations [Member] | |||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||
Amount assumed from other companies (less than) | 100,000 | $ 100,000 | $ 100,000 | ||
Commercial Auto Insurance [Member] | |||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||
Maximum third party recovery | $ 500,000 | ||||
Minimum loss threshold per event | $ 500,000 | ||||
Extra-Contractual Loss Reinsurance [Member] | |||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||
Maximum third party recovery | 10,000,000 | ||||
Minimum loss threshold per event | $ 5,000,000 |
Statutory Information (Details)
Statutory Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Insurance [Abstract] | |||
Statutory net earnings | $ 67,323 | $ 62,247 | $ 61,379 |
Statutory policyholders' surplus | 665,459 | $ 669,301 | |
Statutory capital and surplus required | 134,000 | ||
Amount available for dividend distribution without prior approval from regulatory agency | $ 67,900 |
Legal and Regulatory Proceedi87
Legal and Regulatory Proceedings - Narrative (Details) $ in Thousands | Jun. 04, 2014USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($)policy | Mar. 31, 2017USD ($) |
Loss Contingencies [Line Items] | |||||
adjustments to written and earned premiums | $ 12,400 | $ 18,300 | $ 3,800 | ||
Number of policies where mileage was lowered | policy | 200,000 | ||||
Reyes v. Infinity Indemnity Insurance Company | |||||
Loss Contingencies [Line Items] | |||||
Damages sought | 30 | ||||
Settlement amount | $ 12,500 | ||||
Percentage of lawsuit covered by reinsurance | 90.00% | ||||
Litigation settlement, amount paid after reinsurance | $ 1,250 |
Commitments And Contingencies D
Commitments And Contingencies Details (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,017 | $ 4,218 | ||
2,018 | 2,761 | ||
2,019 | 2,158 | ||
2,020 | 1,927 | ||
2,021 | 882 | ||
Thereafter | 523 | ||
Total | $ 12,469 | ||
Operating leases, lease expiration period | 6 years | ||
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,017 | $ 717 | ||
2,018 | 704 | ||
2,019 | 333 | ||
2,020 | 202 | ||
2,021 | 0 | ||
Thereafter | 0 | ||
Total | 1,956 | ||
Lease expense | 6,505 | $ 6,688 | $ 9,611 |
Guarantor Obligations, Maximum Exposure, Undiscounted | 4,200 | ||
Birmingham, Alabama [Member] | |||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Total | 2,100 | ||
Los Angeles, California [Member] | |||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Total | 3,700 | ||
Automobiles [Member] | |||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Total | $ 4,400 |
Additional Information (Details
Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning balance | $ 14,207 | $ 15,385 | $ 15,510 |
Provision for losses | 15,761 | 17,095 | 19,080 |
Uncollectible amounts written off | (14,707) | (18,273) | (19,204) |
Ending balance | 15,262 | 14,207 | 15,385 |
Supplemental Cash Flow Elements [Abstract] | |||
Negative cash book balances | $ 49,700 | $ 40,600 | $ 41,400 |
Accumulated Other Comprehensi90
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | |
Before Tax [Abstract] | ||||
Accumulated other comprehensive income, beginning of period | $ 12,165 | $ 12,016 | $ 36,145 | |
Effect on other comprehensive income | 17,085 | 149 | (24,129) | |
Accumulated other comprehensive income, end of period | 29,250 | 12,165 | 12,016 | |
Income Tax [Abstract] | ||||
Accumulated other comprehensive income, beginning of period | (4,258) | (4,206) | (12,651) | |
Effect on other comprehensive income | (5,236) | (52) | 8,445 | |
Accumulated other comprehensive income, end of period | (9,494) | (4,258) | (4,206) | |
Net [Abstract] | ||||
Accumulated other comprehensive income, beginning of period | 7,907 | 7,811 | 23,494 | |
Other Comprehensive Income (Loss), Net of Tax | 11,848 | 97 | (15,684) | |
Accumulated other comprehensive income, end of period | 7,907 | 7,811 | 23,494 | $ 19,756 |
Accumulated Change Postretirement Benefite Liability [Member] | ||||
Before Tax [Abstract] | ||||
Accumulated other comprehensive income, beginning of period | 1,033 | 944 | 174 | |
Effect on other comprehensive income | (204) | 88 | 771 | |
Accumulated other comprehensive income, end of period | 829 | 1,033 | 944 | |
Income Tax [Abstract] | ||||
Accumulated other comprehensive income, beginning of period | (361) | (331) | (61) | |
Effect on other comprehensive income | 71 | (31) | (270) | |
Accumulated other comprehensive income, end of period | (290) | (361) | (331) | |
Net [Abstract] | ||||
Accumulated other comprehensive income, beginning of period | 671 | 614 | 113 | |
Other Comprehensive Income (Loss), Net of Tax | (133) | 57 | 501 | |
Accumulated other comprehensive income, end of period | 671 | 614 | 113 | 539 |
Accumulated Unrealized Gains on Investments, net [Member] | ||||
Before Tax [Abstract] | ||||
Accumulated other comprehensive income, beginning of period | 11,133 | 11,072 | 35,972 | |
Effect on other comprehensive income | 17,288 | 61 | (24,900) | |
Other comprehensive income before reclassification | 19,509 | 3,205 | (22,091) | |
Accumulated other comprehensive income, end of period | 28,421 | 11,133 | 11,072 | |
Income Tax [Abstract] | ||||
Accumulated other comprehensive income, beginning of period | (3,896) | (3,875) | (12,590) | |
Other comprehensive income before reclassification | (6,085) | (1,122) | 7,732 | |
Effect on other comprehensive income | (5,308) | (21) | 8,715 | |
Accumulated other comprehensive income, end of period | (9,204) | (3,896) | (3,875) | |
Net [Abstract] | ||||
Accumulated other comprehensive income, beginning of period | 7,236 | 7,197 | 23,382 | |
Other comprehensive income before reclassification | 13,424 | 2,084 | (14,359) | |
Other Comprehensive Income (Loss), Net of Tax | 11,981 | 40 | (16,185) | |
Accumulated other comprehensive income, end of period | 7,236 | 7,197 | 23,382 | $ 19,217 |
Reclassification Adjustment for Other-than-Temporary Impairment [Member] | ||||
Before Tax [Abstract] | ||||
Reclassification adjustment | 3,123 | 375 | 1,294 | |
Income Tax [Abstract] | ||||
Reclassification adjustment | (1,093) | (131) | (453) | |
Net [Abstract] | ||||
Reclassification adjustment | 2,030 | 243 | 841 | |
Accumulated Unrealized Gains on Investments, Net [Member] | ||||
Before Tax [Abstract] | ||||
Effect on other comprehensive income | 17,288 | 61 | (24,900) | |
Reclassification adjustment | (5,343) | (3,519) | (4,102) | |
Income Tax [Abstract] | ||||
Reclassification adjustment | 1,870 | 1,232 | 1,436 | |
Effect on other comprehensive income | (5,308) | (21) | 8,715 | |
Net [Abstract] | ||||
Reclassification adjustment | (3,473) | (2,287) | (2,667) | |
Other Comprehensive Income (Loss), Net of Tax | $ 11,981 | $ 40 | $ (16,185) |
Segment Information - Narrative
Segment Information - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)vehicle / policyvehiclesegment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Segment Reporting [Abstract] | |||
Number of operating segments | segment | 3 | ||
Number of vehicles in fleet in target businesses (or fewer) | vehicle | 20 | ||
Average vehicles per policy | vehicle / policy | 1.9 | ||
Depreciation and amortization expense | $ | $ 37.7 | $ 35 | $ 34.7 |
Segment Information - Revenues
Segment Information - Revenues by segment and reconciliation to Total revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||||||
Gross written premium | $ 1,397,294 | $ 1,401,414 | $ 1,387,866 | ||||||||||||
Ceded reinsurance | (10,441) | (8,955) | (14,579) | ||||||||||||
Net written premium | 1,386,853 | 1,392,459 | 1,373,287 | ||||||||||||
Change in unearned premium | (15,517) | (795) | (26,723) | ||||||||||||
Earned premium | 1,371,336 | 1,391,664 | 1,346,564 | ||||||||||||
Installment and other fee income | 105,764 | 107,361 | 96,753 | ||||||||||||
Net investment income | 37,262 | 35,537 | 36,800 | ||||||||||||
Net realized gains on investments | $ 256 | $ (431) | $ 1,886 | $ 509 | $ 1,887 | $ 1,282 | $ (164) | $ 139 | $ 1,835 | $ (410) | $ 214 | $ 1,169 | 2,220 | 3,145 | 2,809 |
Other income | 1,404 | 1,000 | 1,106 | ||||||||||||
Total revenues | $ 382,602 | $ 380,701 | $ 376,886 | $ 377,797 | $ 415,336 | $ 378,124 | $ 375,084 | $ 370,162 | $ 369,919 | $ 372,383 | $ 374,757 | $ 366,973 | 1,517,987 | 1,538,706 | 1,484,032 |
Personal Auto | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Gross written premium | 1,217,384 | 1,240,037 | 1,246,492 | ||||||||||||
Ceded reinsurance | (6,366) | (4,036) | (3,301) | ||||||||||||
Net written premium | 1,211,019 | 1,236,001 | 1,243,191 | ||||||||||||
Change in unearned premium | (3,068) | 10,401 | (17,901) | ||||||||||||
Earned premium | 1,207,951 | 1,246,402 | 1,225,290 | ||||||||||||
Installment and other fee income | 94,208 | 97,085 | 88,738 | ||||||||||||
Commercial Auto | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Gross written premium | 163,389 | 145,272 | 126,036 | ||||||||||||
Ceded reinsurance | (2,895) | (4,098) | (10,679) | ||||||||||||
Net written premium | 160,494 | 141,174 | 115,357 | ||||||||||||
Change in unearned premium | (12,164) | (10,990) | (8,395) | ||||||||||||
Earned premium | 148,330 | 130,183 | 106,962 | ||||||||||||
Installment and other fee income | 11,556 | 10,276 | 8,015 | ||||||||||||
Classic Collector | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Gross written premium | 16,520 | 16,105 | 15,339 | ||||||||||||
Ceded reinsurance | (1,180) | (821) | (600) | ||||||||||||
Net written premium | 15,340 | 15,284 | 14,739 | ||||||||||||
Change in unearned premium | (286) | (205) | (427) | ||||||||||||
Earned premium | 15,055 | 15,079 | 14,312 | ||||||||||||
Installment and other fee income | $ 0 | $ 0 | $ 0 |
Segment Information - Underwrit
Segment Information - Underwriting income and reconciliations to Earnings before income taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||||||
Statutory accident year underwriting income | $ 51,029 | $ 24,692 | $ 27,815 | ||||||||||||
Statutory accident year underwriting income, Combined Ratio | 96.10% | 98.20% | 97.60% | ||||||||||||
Bad debt charge-offs | $ 15,616 | $ 16,984 | $ 19,013 | ||||||||||||
Favorable (unfavorable) development on prior accident years | 18,494 | 24,001 | 28,926 | ||||||||||||
Statutory calendar year underwriting income | $ 85,139 | $ 65,677 | $ 75,754 | ||||||||||||
Statutory calendar year underwriting income, Combined Ratio | 93.60% | 95.30% | 94.00% | ||||||||||||
Statutory-to-GAAP underwriting income differences | $ (19,017) | $ (19,555) | $ (16,658) | ||||||||||||
GAAP calendar year underwriting income | $ 66,122 | $ 46,122 | $ 59,096 | ||||||||||||
GAAP calendar year underwriting income, Combined Ratio | 95.20% | 96.70% | 95.60% | ||||||||||||
Net investment income | $ 37,262 | $ 35,537 | $ 36,800 | ||||||||||||
Net realized gains on investments | $ 256 | $ (431) | $ 1,886 | $ 509 | $ 1,887 | $ 1,282 | $ (164) | $ 139 | $ 1,835 | $ (410) | $ 214 | $ 1,169 | 2,220 | 3,145 | 2,809 |
Other income | 1,404 | 1,000 | 1,106 | ||||||||||||
Interest expense | (14,043) | (14,037) | (14,029) | ||||||||||||
Corporate general and administrative expenses | (9,769) | (7,899) | (7,655) | ||||||||||||
Other expenses | (2,470) | (1,736) | (3,296) | ||||||||||||
Earnings before income taxes | 80,727 | 62,132 | 74,832 | ||||||||||||
Personal Auto | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Statutory accident year underwriting income | $ 46,924 | $ 21,766 | $ 24,876 | ||||||||||||
Statutory accident year underwriting income, Combined Ratio | 96.10% | 98.40% | 97.70% | ||||||||||||
Bad debt charge-offs | $ 13,652 | $ 15,150 | $ 17,413 | ||||||||||||
Favorable (unfavorable) development on prior accident years | 23,395 | 27,958 | 33,633 | ||||||||||||
Statutory calendar year underwriting income | $ 83,971 | $ 64,874 | $ 75,922 | ||||||||||||
Statutory calendar year underwriting income, Combined Ratio | 93.00% | 94.90% | 93.60% | ||||||||||||
Commercial Auto | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Statutory accident year underwriting income | $ 4,544 | $ 1,905 | $ 876 | ||||||||||||
Statutory accident year underwriting income, Combined Ratio | 95.50% | 97.00% | 97.80% | ||||||||||||
Bad debt charge-offs | $ 1,921 | $ 1,784 | $ 1,557 | ||||||||||||
Favorable (unfavorable) development on prior accident years | (5,466) | (3,582) | (5,176) | ||||||||||||
Statutory calendar year underwriting income | $ 999 | $ 106 | $ (2,743) | ||||||||||||
Statutory calendar year underwriting income, Combined Ratio | 98.00% | 98.50% | 101.30% | ||||||||||||
Classic Collector | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Statutory accident year underwriting income | $ (438) | $ 1,022 | $ 2,063 | ||||||||||||
Statutory accident year underwriting income, Combined Ratio | 102.20% | 92.80% | 84.70% | ||||||||||||
Bad debt charge-offs | $ 43 | $ 50 | $ 44 | ||||||||||||
Favorable (unfavorable) development on prior accident years | 564 | (375) | 469 | ||||||||||||
Statutory calendar year underwriting income | $ 169 | $ 697 | $ 2,576 | ||||||||||||
Statutory calendar year underwriting income, Combined Ratio | 98.20% | 94.90% | 81.10% |
SCHEDULE II _ CONDENSED FINAN94
SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF REGISTRANT - Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Condensed Financial Statements, Captions [Line Items] | ||||
Fixed maturities | $ 1,441,107 | $ 1,390,167 | ||
Equity securities – at fair value (cost $2,372 and $1,908) | 96,004 | 90,640 | ||
Short-term investments - at fair value (amortized cost $506 and $509) | 2,541 | 2,907 | ||
Cash and cash equivalents | 107,589 | 92,800 | $ 62,483 | $ 84,541 |
Other assets | 16,557 | 12,777 | ||
Total assets | 2,473,411 | 2,402,601 | ||
Long-term debt | 273,809 | 273,591 | ||
Other liabilities | 114,289 | 99,924 | ||
Shareholders’ equity | 720,281 | 699,187 | 687,595 | 697,659 |
Total liabilities and shareholders’ equity | 2,473,411 | 2,402,601 | ||
Parent | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Investment in subsidiaries | 816,153 | 810,017 | ||
Fixed maturities | 135,632 | 130,563 | ||
Equity securities – at fair value (cost $2,372 and $1,908) | 2,628 | 1,991 | ||
Short-term investments - at fair value (amortized cost $506 and $509) | 506 | 508 | ||
Cash and cash equivalents | 34,833 | 25,384 | $ 27,286 | $ 37,731 |
Other assets | 14,226 | 14,276 | ||
Total assets | 1,003,977 | 982,739 | ||
Long-term debt | 273,809 | 273,591 | ||
Other liabilities | 8,992 | 8,970 | ||
Payable to affiliates | 895 | 991 | ||
Shareholders’ equity | 720,281 | 699,187 | ||
Total liabilities and shareholders’ equity | $ 1,003,977 | $ 982,739 |
SCHEDULE II _ CONDENSED FINAN95
SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF REGISTRANT - Condensed Balance Sheets (Parenthetical) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Condensed Financial Statements, Captions [Line Items] | ||
Fixed maturities, amortized costs | $ 1,439,878 | $ 1,392,660 |
Equity securities, cost | 68,812 | 77,013 |
Short-term investments, cost | 2,541 | 2,909 |
Parent | ||
Condensed Financial Statements, Captions [Line Items] | ||
Fixed maturities, amortized costs | 132,039 | 115,042 |
Equity securities, cost | 1,908 | 1,940 |
Short-term investments, cost | $ 509 | $ 1,073 |
SCHEDULE II _ CONDENSED FINAN96
SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF REGISTRANT - Condensed Statements of Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||
Net investment income | $ 37,262 | $ 35,537 | $ 36,800 | ||||||||||||
Net investment income, percent change | 4.90% | (3.40%) | |||||||||||||
Net realized gains on investments | $ 256 | $ (431) | $ 1,886 | $ 509 | $ 1,887 | $ 1,282 | $ (164) | $ 139 | $ 1,835 | $ (410) | $ 214 | $ 1,169 | $ 2,220 | $ 3,145 | 2,809 |
Net realized gains on investments, percent change | (29.40%) | 12.00% | |||||||||||||
Other income | $ 1,404 | $ 1,000 | 1,106 | ||||||||||||
Other income, percent change | 40.40% | (9.60%) | |||||||||||||
Total revenues | 382,602 | 380,701 | 376,886 | 377,797 | 415,336 | 378,124 | 375,084 | 370,162 | 369,919 | 372,383 | 374,757 | 366,973 | $ 1,517,987 | $ 1,538,706 | 1,484,032 |
Total revenues, percent change | (1.30%) | 3.70% | |||||||||||||
Interest expense | $ 14,043 | $ 14,037 | 14,029 | ||||||||||||
Interest expense, percent change | 0.00% | 0.10% | |||||||||||||
Corporate general and administrative expenses | $ 9,769 | $ 7,899 | 7,655 | ||||||||||||
Corporate general and administrative expenses, percent change | 23.70% | 3.20% | |||||||||||||
Other expenses | $ 2,470 | $ 1,736 | 3,296 | ||||||||||||
Other expenses, percent change | 42.30% | (47.30%) | |||||||||||||
Total costs and expenses | $ 1,437,260 | $ 1,476,575 | 1,409,200 | ||||||||||||
Total costs and expenses, percent change | (2.70%) | 4.80% | |||||||||||||
Earnings before income taxes | $ 80,727 | $ 62,132 | 74,832 | ||||||||||||
Earnings before income taxes, percent change | 29.90% | (17.00%) | |||||||||||||
Provision for income taxes | $ 35,343 | $ 19,047 | 23,351 | ||||||||||||
Provision for income taxes, percent change | 85.60% | (18.40%) | |||||||||||||
Net earnings | $ 14,713 | $ 14,978 | $ 5,046 | $ 10,646 | $ 21,609 | $ 2,753 | $ 11,015 | $ 7,708 | $ 11,097 | $ 15,737 | $ 13,493 | $ 11,154 | $ 45,384 | $ 43,085 | 51,481 |
Net Earnings, percent change | 5.30% | (16.30%) | |||||||||||||
Parent | |||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||
Income in equity of subsidiaries | $ 58,971 | $ 55,734 | 63,511 | ||||||||||||
Income in equity of subsidiaries, percent change | 5.80% | (12.20%) | |||||||||||||
Net investment income | $ 2,897 | $ 2,412 | 2,074 | ||||||||||||
Net investment income, percent change | 20.10% | 16.30% | |||||||||||||
Net realized gains on investments | $ (460) | $ 117 | 77 | ||||||||||||
Net realized gains on investments, percent change | (492.40%) | 51.40% | |||||||||||||
Other income | $ 0 | $ 0 | 1 | ||||||||||||
Other income, percent change | 0.00% | (100.00%) | |||||||||||||
Total revenues | $ 61,408 | $ 58,263 | 65,663 | ||||||||||||
Total revenues, percent change | 5.40% | (11.30%) | |||||||||||||
Interest expense | $ 13,968 | $ 13,958 | 13,947 | ||||||||||||
Interest expense, percent change | 0.10% | 0.10% | |||||||||||||
Corporate general and administrative expenses | $ 9,769 | $ 7,899 | 7,655 | ||||||||||||
Corporate general and administrative expenses, percent change | 23.70% | 3.20% | |||||||||||||
Other expenses | $ 0 | $ 18 | 26 | ||||||||||||
Other expenses, percent change | (100.00%) | (31.80%) | |||||||||||||
Total costs and expenses | $ 23,737 | $ 21,874 | 21,628 | ||||||||||||
Total costs and expenses, percent change | 8.50% | 1.10% | |||||||||||||
Earnings before income taxes | $ 37,671 | $ 36,389 | 44,035 | ||||||||||||
Earnings before income taxes, percent change | 3.50% | (17.40%) | |||||||||||||
Provision for income taxes | $ (7,713) | $ (6,696) | (7,445) | ||||||||||||
Provision for income taxes, percent change | 15.20% | (10.10%) | |||||||||||||
Net earnings | $ 45,384 | $ 43,085 | $ 51,481 | ||||||||||||
Net Earnings, percent change | 5.30% | (16.30%) |
SCHEDULE II _ CONDENSED FINAN97
SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF REGISTRANT - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Net Earnings | $ 14,713 | $ 14,978 | $ 5,046 | $ 10,646 | $ 21,609 | $ 2,753 | $ 11,015 | $ 7,708 | $ 11,097 | $ 15,737 | $ 13,493 | $ 11,154 | $ 45,384 | $ 43,085 | $ 51,481 | |
Excess tax benefits from share-based payment arrangements | 0 | 157 | 298 | |||||||||||||
Net cash provided by operating activities | 125,961 | 105,380 | 72,805 | |||||||||||||
Purchases of fixed maturities | (490,728) | (479,050) | (523,502) | |||||||||||||
Purchases of short-term investments | (3,019) | (9,882) | (8,413) | |||||||||||||
Maturities and redemptions of fixed maturities | 218,595 | 163,755 | 198,050 | |||||||||||||
Maturities and redemptions of short-term investments | 925 | 2,270 | 1,285 | |||||||||||||
Proceeds from sale of fixed maturities | 192,408 | 290,866 | 329,688 | |||||||||||||
Proceeds from sale of short-term investments | 2,400 | 9,258 | 3,086 | |||||||||||||
Net cash used in investing activities | (69,849) | (39,855) | (45,617) | |||||||||||||
Proceeds from stock options exercised and employee stock purchases | 285 | 256 | 259 | |||||||||||||
Acquisition of treasury stock | (15,535) | (11,953) | (29,481) | |||||||||||||
Dividends paid to shareholders | (25,533) | (22,993) | (19,528) | |||||||||||||
Net cash used in financing activities | (41,323) | (35,208) | (49,246) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | 14,789 | 30,317 | (22,058) | |||||||||||||
Cash and cash equivalents at beginning of period | 92,800 | 62,483 | 84,541 | 92,800 | 62,483 | 84,541 | ||||||||||
Cash and cash equivalents at end of period | 107,589 | 92,800 | 62,483 | 107,589 | 92,800 | 62,483 | ||||||||||
Parent | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Net Earnings | 45,384 | 43,085 | 51,481 | |||||||||||||
Equity in consolidated subsidiaries | (58,971) | (55,734) | (63,511) | |||||||||||||
Excess tax benefits from share-based payment arrangements | 0 | 157 | 298 | |||||||||||||
Other | 5,349 | 2,800 | 2,910 | |||||||||||||
Net cash provided by operating activities | (8,238) | (9,692) | (8,822) | |||||||||||||
Purchases of fixed maturities | (44,698) | (36,202) | (35,477) | |||||||||||||
Purchases of short-term investments | (515) | (1,905) | (1,602) | |||||||||||||
Maturities and redemptions of fixed maturities | 19,947 | 25,904 | 15,410 | |||||||||||||
Maturities and redemptions of short-term investments | 500 | 1,370 | 1,285 | |||||||||||||
Proceeds from sale of fixed maturities | 17,236 | 13,874 | 14,784 | |||||||||||||
Proceeds from sale of short-term investments | 0 | 1,061 | 0 | |||||||||||||
Dividends received from subsidiary | [1] | 66,000 | 38,378 | 52,726 | ||||||||||||
Net cash used in investing activities | 58,470 | 42,481 | 47,126 | |||||||||||||
Proceeds from stock options exercised and employee stock purchases | 285 | 256 | 259 | |||||||||||||
Acquisition of treasury stock | (15,535) | (11,953) | (29,481) | |||||||||||||
Dividends paid to shareholders | (25,533) | (22,993) | (19,528) | |||||||||||||
Net cash used in financing activities | (40,783) | (34,691) | (48,750) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | 9,449 | (1,902) | (10,445) | |||||||||||||
Cash and cash equivalents at beginning of period | $ 25,384 | $ 27,286 | $ 37,731 | 25,384 | 27,286 | 37,731 | ||||||||||
Cash and cash equivalents at end of period | $ 34,833 | $ 25,384 | $ 27,286 | $ 34,833 | 25,384 | 27,286 | ||||||||||
Securities received from subsidiaries | $ 21,600 | $ 15,700 | ||||||||||||||
[1] | The parent received $21.6 million and $15.7 million in the form of securities from subsidiaries in 2016 and 2015, respectively, not reflected in the above cash flows. |
SCHEDULE III - SUPPLEMENTARY 98
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | $ 88,300 | $ 91,136 | $ 93,157 |
Future Policy Benefits, Losses, Claims and Loss Expenses | 715,098 | 685,455 | |
Unearned Premium | 627,575 | 614,347 | |
Other Policy Claims and Benefits Payable | 0 | 0 | 0 |
Premium Revenue | 1,371,336 | 1,391,664 | 1,346,564 |
Net Investment Income | 37,262 | 35,537 | 36,800 |
Benefits, Claims, Losses, and Settlement Expenses | 1,053,697 | 1,096,755 | 1,036,001 |
Amortization of Deferred Policy Acquisition Costs | 200,708 | 207,083 | 203,667 |
Other Operating Expenses | 156,573 | 149,065 | 144,552 |
Premiums Written | 1,386,853 | 1,392,459 | 1,373,287 |
Personal Auto | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 75,486 | 79,429 | 82,881 |
Future Policy Benefits, Losses, Claims and Loss Expenses | 574,224 | 573,249 | 580,983 |
Unearned Premium | 536,504 | 533,436 | 543,837 |
Premium Revenue | 1,207,951 | 1,246,402 | 1,225,290 |
Benefits, Claims, Losses, and Settlement Expenses | 922,826 | 981,360 | 937,694 |
Amortization of Deferred Policy Acquisition Costs | 179,584 | 185,473 | 185,325 |
Other Operating Expenses | 133,751 | 130,772 | 131,277 |
Premiums Written | 1,211,019 | 1,236,001 | 1,243,191 |
Commercial Auto | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 11,657 | 10,526 | 9,098 |
Future Policy Benefits, Losses, Claims and Loss Expenses | 134,953 | 106,956 | 85,040 |
Unearned Premium | 82,852 | 72,978 | 65,084 |
Premium Revenue | 148,330 | 130,183 | 106,962 |
Benefits, Claims, Losses, and Settlement Expenses | 121,434 | 106,031 | 90,849 |
Amortization of Deferred Policy Acquisition Costs | 18,927 | 19,363 | 16,176 |
Other Operating Expenses | 19,471 | 15,448 | 11,153 |
Premiums Written | 160,494 | 141,174 | 115,357 |
Classic Collector | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 1,156 | 1,181 | 1,178 |
Future Policy Benefits, Losses, Claims and Loss Expenses | 5,921 | 5,250 | 3,942 |
Unearned Premium | 8,219 | 7,934 | 7,728 |
Premium Revenue | 15,055 | 15,079 | 14,312 |
Benefits, Claims, Losses, and Settlement Expenses | 9,437 | 9,364 | 7,459 |
Amortization of Deferred Policy Acquisition Costs | 2,197 | 2,247 | 2,167 |
Other Operating Expenses | 3,351 | 2,845 | 2,122 |
Premiums Written | $ 15,340 | $ 15,284 | $ 14,739 |