Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 26, 2018 | |
Document Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | INFINITY PROPERTY & CASUALTY CORP | |
Entity Central Index Key | 1,195,933 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 10,941,936 |
Consolidated Statements Of Earn
Consolidated Statements Of Earnings - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues: | ||
Earned premium | $ 353,987 | $ 341,368 |
Percent change, Earned premium | 3.70% | |
Installment and other fee income | $ 27,395 | 26,739 |
Percent change, Installment and other fee income | 2.50% | |
Net investment income | $ 9,786 | 8,695 |
Percent change, Net investment Income | 12.50% | |
Total net realized (losses) gains on investments | $ (2,832) | 509 |
Percent change, Net realized gains on investments | (656.20%) | |
Other income | $ 430 | 275 |
Percent change, Other income | 56.30% | |
Total revenues | $ 388,766 | 377,587 |
Percent change, Total revenues | 3.00% | |
Costs and Expenses: | ||
Losses and loss adjustment expenses | $ 264,552 | 270,676 |
Percent change, Losses and loss adjustment expenses | (2.30%) | |
Commissions and other underwriting expenses | $ 90,521 | 85,939 |
Percent change, Commissions and other underwriting expenses | 5.30% | |
Interest expense | $ 3,509 | 3,512 |
Percent change, Interest expense | (0.10%) | |
Corporate general and administrative expenses | $ 4,743 | 2,271 |
Percent change, Corporate general and administrative expenses | 108.90% | |
Other expenses | $ 505 | 322 |
Percent change, Other expenses | 56.90% | |
Total costs and expenses | $ 363,829 | 362,719 |
Percent change, Total costs and expenses | 0.30% | |
Earnings before income taxes | $ 24,937 | 14,868 |
Percent change, Earnings before income taxes | 67.70% | |
Provision for income taxes | $ 4,853 | 4,358 |
Percent change, Provision for income taxes | 11.40% | |
Net Earnings | $ 20,083 | $ 10,510 |
Percent change, Net Earnings | 91.10% | |
Net Earnings per Common Share: | ||
Basic (usd per share) | $ 1.84 | $ 0.96 |
Percent change, Basic | 91.70% | |
Diluted (usd per share) | $ 1.82 | $ 0.94 |
Percent change, Diluted | 93.60% | |
Average Number of Common Shares: | ||
Basic (shares) | 10,915 | 10,998 |
Percent change, Basic | (0.80%) | |
Diluted (shares) | 11,009 | 11,127 |
Percent change, Diluted | (1.10%) | |
Cash Dividends per Common Share (usd per share) | $ 0.58 | $ 0.58 |
Percent change, Cash Dividends per Common Share | 0.00% | |
Net realized gains on sales | $ 1,363 | $ 519 |
Trading Securities, Change in Unrealized Holding Gain (Loss) | (2,607) | 0 |
Total other-than-temporary impairment (OTTI) losses | (1,468) | (46) |
Non-credit portion in other comprehensive income | $ 158 | 36 |
Non-credit portion in other comprehensive income, percent | 341.90% | |
OTTI losses reclassified from other comprehensive income | $ (278) | 0 |
Net impairment losses recognized in earnings | 1,588 | 10 |
Total net realized (losses) gains on investments | $ (2,832) | $ 509 |
Percent change, Total net realized gains on investments | (656.20%) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 20,083 | $ 10,510 |
Other comprehensive income before tax: | ||
Net change in post-retirement benefit liability | (2) | (13) |
Unrealized gains on investments(1): | ||
Unrealized holding (losses) gains arising during the period | (18,344) | 10,664 |
Less: Reclassification adjustments for losses (gains) included in net earnings | 2,106 | (509) |
Unrealized (losses) gains on investments, net | (16,238) | 10,155 |
Other comprehensive (loss) income, before tax | (16,240) | 10,143 |
Income tax benefit (expense) related to components of other comprehensive income | 3,410 | (3,550) |
Other comprehensive (loss) income, net of tax | (12,829) | 6,593 |
Comprehensive income | $ 7,254 | $ 17,102 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Investments: | ||
Fixed maturities – at fair value (amortized cost $1,512,939 and $1,439,878) | $ 1,497,930 | $ 1,441,107 |
Equity securities – at fair value (cost $65,913 and $68,812) | 90,498 | 96,004 |
Short-term investments – at fair value (amortized cost $0 and $2,541) | 0 | 2,541 |
Total investments | 1,588,428 | 1,539,653 |
Cash and cash equivalents | 88,793 | 107,589 |
Accrued investment income | 10,098 | 13,079 |
Agents’ balances and premium receivable, net of allowances for doubtful accounts of $13,238 and $15,262 | 557,206 | 507,963 |
Property and equipment, net of accumulated depreciation of $87,945 and $84,776 | 78,732 | 82,453 |
Prepaid reinsurance premium | 482 | 1,032 |
Recoverables from reinsurers (includes $3,124 and $(1,269) on paid losses and LAE) | 22,674 | 30,340 |
Deferred policy acquisition costs | 98,672 | 88,300 |
Current and deferred income taxes | 9,091 | 10,543 |
Receivable for securities sold | 120 | 1,700 |
Other assets | 21,896 | 16,557 |
Goodwill | 75,275 | 75,275 |
Total assets | 2,551,466 | 2,474,484 |
Liabilities: | ||
Unpaid losses and loss adjustment expenses | 701,006 | 715,098 |
Unearned premium | 691,464 | 627,575 |
Long-term debt (fair value $286,330 and $290,824) | 273,865 | 273,809 |
Commissions payable | 15,844 | 16,743 |
Payable for securities purchased | 40,375 | 5,615 |
Other liabilities | 110,996 | 119,831 |
Total liabilities | 1,833,550 | 1,758,672 |
Commitments and contingencies (See Note 9) | ||
Shareholders’ equity: | ||
Common stock, no par value (50,000,000 shares authorized; 21,879,505 and 21,867,436 shares issued) | 21,908 | 21,888 |
Additional paid-in capital | 385,346 | 383,567 |
Retained earnings | 824,932 | 793,077 |
Accumulated other comprehensive income, net of tax | (11,202) | 19,756 |
Treasury stock, at cost (10,937,569 and 10,932,539 shares) | (503,069) | (502,475) |
Total shareholders’ equity | 717,916 | 715,812 |
Total liabilities and shareholders’ equity | $ 2,551,466 | $ 2,474,484 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, amortized cost | $ 1,512,939 | $ 1,439,878 |
Equity securities, cost | 65,913 | 68,812 |
Short term investments, amortized cost | 0 | 2,541 |
Agents' balances and premium receivable, allowance for doubtful accounts | 13,238 | 15,262 |
Property and equipment, accumulated depreciation | 87,945 | 84,776 |
Recoverable from reinsurers, paid losses and loss adjustment expenses | (3,124) | (1,269) |
Long-term debt, fair value | $ 289,831 | $ 290,824 |
Common stock, par value (usd per share) | $ 0 | $ 0 |
Common stock, shares authorized (shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (shares) | 21,879,505 | 21,867,436 |
Treasury stock, shares (shares) | 10,937,569 | 10,932,539 |
Consolidated Statements Of Chan
Consolidated Statements Of Changes In Shareholders' Equity - USD ($) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income, Net of Tax | Treasury Stock |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect of change in accounting principle | $ (3,808,000) | $ 0 | $ 0 | $ (3,808,000) | $ 0 | $ 0 |
Beginning Balance at Dec. 31, 2016 | 699,187,000 | 21,829,000 | 378,745,000 | 777,695,000 | 7,907,000 | (486,990,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 10,510,000 | 10,510,000 | ||||
Net change in post-retirement benefit liability | (8,000) | (8,000) | ||||
Change in unrealized gain on investments | 6,579,000 | 6,579,000 | ||||
Change in non-credit component of impairment losses on fixed maturities | 22,000 | 22,000 | ||||
Comprehensive income | 17,102,000 | |||||
Dividends paid to common shareholders | (6,402,000) | (6,402,000) | ||||
Shares issued and share-based compensation expense | 1,449,000 | 18,000 | 1,430,000 | |||
Acquisition of treasury stock | (2,303,000) | (2,303,000) | ||||
Ending Balance at Mar. 31, 2017 | 705,225,000 | 21,848,000 | 380,175,000 | 777,994,000 | 14,500,000 | (489,293,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 34,214,000 | 34,214,000 | ||||
Net change in post-retirement benefit liability | (124,000) | (124,000) | ||||
Change in unrealized gain on investments | 5,074,000 | 5,074,000 | ||||
Change in non-credit component of impairment losses on fixed maturities | 306,000 | 306,000 | ||||
Comprehensive income | 39,469,000 | |||||
Dividends paid to common shareholders | (19,131,000) | (19,131,000) | ||||
Shares issued and share-based compensation expense | 3,432,000 | 40,000 | 3,391,000 | |||
Acquisition of treasury stock | (13,182,000) | (13,182,000) | ||||
Ending Balance at Dec. 31, 2017 | 715,812,000 | 21,888,000 | 383,567,000 | 793,077,000 | 19,756,000 | (502,475,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect of change in accounting principle | (10,000) | 0 | 0 | 18,118,000 | (18,128,000) | 0 |
Net earnings | 20,083,000 | 20,083,000 | ||||
Net change in post-retirement benefit liability | (1,000) | (1,000) | ||||
Change in unrealized gain on investments | (12,980,000) | (12,980,000) | ||||
Change in non-credit component of impairment losses on fixed maturities | 152,000 | 152,000 | ||||
Comprehensive income | 7,254,000 | |||||
Dividends paid to common shareholders | (6,346,000) | (6,346,000) | ||||
Shares issued and share-based compensation expense | 1,800,000 | 21,000 | 1,779,000 | |||
Acquisition of treasury stock | (594,000) | (594,000) | ||||
Ending Balance at Mar. 31, 2018 | $ 717,916,000 | $ 21,908,000 | $ 385,346,000 | $ 824,932,000 | $ (11,202,000) | $ (503,069,000) |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating Activities: | ||
Net earnings | $ 20,083 | $ 10,510 |
Adjustments: | ||
Depreciation | 3,696 | 4,177 |
Amortization | 4,840 | 5,327 |
Net realized gains on investments | 2,832 | (509) |
Loss on disposal of property and equipment | 10 | (2) |
Share-based compensation expense | 1,731 | 1,384 |
Activity related to rabbi trust | (13) | 69 |
Change in accrued investment income | 2,980 | 246 |
Change in agents’ balances and premium receivable | (49,243) | (17,118) |
Change in reinsurance receivables | 8,216 | 917 |
Change in deferred policy acquisition costs | (10,372) | (2,957) |
Change in other assets | (804) | (4,505) |
Change in unpaid losses and loss adjustment expenses | (14,092) | (6,508) |
Change in unearned premium | 63,889 | 26,943 |
Change in other liabilities | (9,815) | 5,565 |
Net cash provided by operating activities | 23,939 | 23,538 |
Investing Activities: | ||
Purchases of fixed maturities | (403,516) | (120,831) |
Purchases of equity securities | 0 | (1,900) |
Purchases of property and equipment | (313) | (889) |
Maturities and redemptions of fixed maturities | 32,497 | 43,319 |
Proceeds from sale of fixed maturities | 328,064 | 37,671 |
Proceeds from sale of equity securities | 5,013 | 2,002 |
Proceeds from sale of short-term investments | 2,528 | 2,400 |
Proceeds from sale of property and equipment | 0 | 19 |
Net cash used in investing activities | (35,727) | (38,209) |
Financing Activities: | ||
Proceeds from stock options exercised and employee stock purchases | 70 | 65 |
Principal payments under capital lease obligations | (138) | (135) |
Acquisition of treasury stock | (594) | (2,296) |
Dividends paid to shareholders | (6,346) | (6,402) |
Net cash used in financing activities | (7,009) | (8,768) |
Net increase (decrease) in cash and cash equivalents | (18,796) | (23,438) |
Cash and cash equivalents at beginning of period | 107,589 | 92,800 |
Cash and cash equivalents at end of period | $ 88,793 | $ 69,361 |
Significant Reporting And Accou
Significant Reporting And Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Significant Reporting And Accounting Policies | Significant Reporting and Accounting Policies Nature of Operations We are a holding company that provides insurance through our subsidiaries for personal auto with a concentration on nonstandard risks, commercial auto and classic collectors. Although licensed to write insurance in all 50 states and the District of Columbia, we focus on select states that we believe offer the greatest opportunity for premium growth and profitability. Basis of Consolidation and Reporting The accompanying consolidated financial statements are unaudited and should be read in conjunction with our Annual Report on Form 10-K (Form 10-K) for the year ended December 31, 2017 . This Quarterly Report on Form 10-Q, including the Condensed Notes to Consolidated Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations, focuses on our financial performance since the beginning of the year. These financial statements reflect certain adjustments necessary for a fair presentation of our results of operations and financial position. Such adjustments consist of normal, recurring accruals recorded to accurately match expenses with their related revenue streams and the elimination of all significant intercompany transactions and balances. We have evaluated events that occurred after March 31, 2018 , for recognition or disclosure in our financial statements and the notes to the financial statements. Schedules may not foot due to rounding. Estimates We based certain accounts and balances within these financial statements upon our estimates and assumptions. The amount of reserves for claims not yet paid, for example, is an item that we can only record by estimation. Unrealized capital gains and losses on investments are subject to market fluctuations, and we use judgment in the determination of whether unrealized losses on certain securities are temporary or other-than-temporary. Should actual results differ significantly from these estimates, the effect on our results of operations could be material. The results of operations for the periods presented may not be indicative of our results for the entire year. Recently Adopted Accounting Standards In February 2018 the FASB issued an ASU allowing a reclassification from accumulated other comprehensive income to retained earnings and consequently eliminating the stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017. We elected to early adopt the ASU and applied the amendment in the period of adoption, with a cumulative-effect adjustment of $0.4 million reclassified from accumulated other comprehensive income to retained earnings. 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. We adopted the change on a modified retrospective basis, with a cumulative-effect adjustment of less than $(0.1) million recorded to retained earnings as of January 1, 2018. 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. We adopted the change on a modified retrospective basis as of January 1, 2018, with a cumulative-effect adjustment of $17.7 million reclassified from other comprehensive income to retained earnings. In May 2014 the FASB issued an ASU related to the accounting for revenue from contracts with customers. Insurance contracts were excluded from the scope of the guidance. 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 were generally earned at the inception of the policy under previous guidance but are earned over the life of the policy under current guidance. The guidance was adopted as of January 1, 2018, using a full retrospective approach with a cumulative-effect adjustment to the balance sheet, which reduced shareholders' equity by $4.5 million . The following table illustrates the effect of adopting this standard on the Consolidated Balance Sheets ($ in millions): December 31, 2017 As Reported As Adjusted Difference Agents' balances and premium receivable $ 508.1 $ 508.0 $ (0.1 ) Current and deferred income taxes 9.4 10.5 1.2 Total assets 2,473.4 2,474.5 1.1 Other liabilities 114.3 119.8 5.5 Shareholders' equity 720.3 715.8 (4.5 ) Total liabilities and shareholders' equity 2,473.4 2,474.5 1.1 The following table illustrates the effect of adopting this standard on the Consolidated Statements of Earnings (in millions, except per share amounts): Three months ended March 31, 2017 As Reported As Adjusted Difference Installment and other fee income $ 26.9 $ 26.7 $ (0.2 ) Total revenues 377.8 377.6 (0.2 ) Earnings before income taxes 15.1 14.9 (0.2 ) Provision for income taxes 4.4 4.4 (0.1 ) Net earnings 10.6 10.5 (0.1 ) Net earnings per common share: Basic $ 0.97 $ 0.96 $ (0.01 ) Diluted 0.96 0.94 (0.02 ) We also adjusted the Consolidated Statements of Changes in Shareholders' Equity and the Consolidated Statements of Cash Flows for these changes for the three months ended March 31, 2017. 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 period 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 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. |
Computation Of Earnings Per Sha
Computation Of Earnings Per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Net Earnings per Share | Computation of Net Earnings per Share The following table illustrates our computations of basic and diluted net earnings per common share ($ in thousands, except per share figures): Three months ended March 31, 2018 2017 Net earnings $ 20,083 $ 10,510 Average basic shares outstanding 10,915 10,998 Basic net earnings per share $ 1.84 $ 0.96 Average basic shares outstanding 10,915 10,998 Restricted stock not vested 8 33 Dilutive effect of Performance Share Plan 86 96 Average diluted shares outstanding 11,009 11,127 Diluted net earnings per share $ 1.82 $ 0.94 |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Fair values of instruments are based on: (i) quoted prices in active markets for identical assets (Level 1); (ii) quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which all significant inputs are observable in active markets (Level 2); or (iii) valuations derived from valuation techniques in which one or more significant inputs are unobservable in the marketplace (Level 3). The following tables present, for each of the fair value hierarchy levels, our assets and liabilities for which we report fair value on a recurring basis ($ in thousands): Fair Value March 31, 2018 Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 88,793 $ 0 $ 0 $ 88,793 Fixed maturity securities: U.S. government 124,757 0 0 124,757 State and municipal 0 296,048 766 296,814 Mortgage-backed securities: Residential 0 365,007 0 365,007 Commercial 0 59,204 2,857 62,061 Total mortgage-backed securities 0 424,211 2,857 427,068 Asset-backed securities 0 110,836 17,647 128,484 Corporates 0 520,698 109 520,807 Total fixed maturities 124,757 1,351,794 21,379 1,497,930 Equity securities 90,498 0 0 90,498 Short-term investments 0 0 0 0 Total cash and investments $ 304,048 $ 1,351,794 $ 21,379 $ 1,677,221 Percentage of total cash and investments 18.1 % 80.6 % 1.3 % 100.0 % December 31, 2017 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 % We do not report our long-term debt at fair value in the Consolidated Balance Sheets. The $286.3 million and $290.8 million fair value of our long-term debt at March 31, 2018 , and December 31, 2017 , respectively, would be included in Level 2 of the fair value hierarchy if it were reported at fair value. Level 1 includes cash and cash equivalents, U.S. Treasury securities, an exchange-traded fund and equities held in a rabbi trust which funds our Supplemental Employee Retirement Plan (SERP). Level 2 includes securities whose fair value was determined using observable market inputs. Level 3 securities are comprised of (i) securities for which there is no active or inactive market for similar instruments; (ii) securities whose fair value is determined based on unobservable inputs; and (iii) securities, other than those backed by the U.S. Government, that are not rated by a nationally recognized statistical rating organization (NRSRO). We recognize transfers between levels at the beginning of the reporting period. A third party nationally recognized pricing service provides the fair value of securities in Level 2. A summary of the significant valuation techniques and market inputs for each class of security follows: U.S. Government : In determining the fair value for U.S. Government securities we use the market approach. The primary inputs to the valuation include reported trades, dealer quotes for identical or similar assets in markets that are not active, benchmark yields, credit spreads, reference data and industry and economic events. State and municipal : In determining the fair value for state and municipal securities we use the market approach. The primary inputs to the valuation include reported trades, dealer quotes for identical or similar assets in markets that are not active, benchmark yields, credit spreads, reference data and industry and economic events. Mortgage-backed securities : In determining the fair value for mortgage-backed securities we use the market approach and to a lesser extent the income approach. The primary inputs to the valuation include reported trades, dealer quotes for identical or similar assets in markets that are not active, benchmark yields, credit spreads, reference data, industry and economic events and monthly payment information. Asset-backed securities : In determining the fair value for asset-backed securities we use the market approach and to a lesser extent the income approach. The primary inputs to the valuation include reported trades, dealer quotes for identical or similar assets in markets that are not active, benchmark yields, credit spreads, reference data, industry and economic events, monthly payment information and collateral performance. Corporate : In determining the fair value for corporate securities we use the market approach. The primary inputs to the valuation include reported trades, dealer quotes for identical or similar assets in markets that are not active, benchmark yields, credit spreads (for investment grade securities), observations of equity and credit default swap curves (for high-yield corporates), reference data and industry and economic events. We review the third party pricing methodologies quarterly and test for significant differences between the market price used to value the security and recent sales activity. The following tables present the progression in the Level 3 fair value category ($ in thousands): Three months ended March 31, 2018 State and Municipal Mortgage- Backed Securities Asset-Backed Securities Corporates Total Balance at beginning of period $ 3,488 $ 0 $ 152 $ 108 $ 3,748 Total (losses) gains, unrealized or realized Included in net earnings (10 ) 0 (0 ) (0 ) (10 ) Included in other comprehensive income 3 10 27 1 41 Purchases 0 2,847 17,729 0 20,576 Sales (3,360 ) 0 0 0 (3,360 ) Settlements 0 0 (261 ) 0 (261 ) Transfers in 645 0 0 0 645 Balance at end of period $ 766 $ 2,857 $ 17,647 $ 109 $ 21,379 Three months ended March 31, 2017 Balance at beginning of period $ 3,860 $ 0 $ 412 $ 666 $ 4,938 Total (losses) gains, unrealized or realized Included in net earnings (31 ) 0 0 1 (30 ) Included in other comprehensive income 15 0 1 (22 ) (6 ) Purchases 0 0 4,259 2,000 6,259 Sales (694 ) 0 0 0 (694 ) Settlements 0 0 (88 ) (92 ) (180 ) Transfers in 329 0 0 0 329 Balance at end of period $ 3,479 $ 0 $ 4,584 $ 2,553 $ 10,616 Of the $21.4 million fair value of securities in Level 3 at March 31, 2018 , which consisted of eleven securities, we priced six based on non-binding broker quotes, one was priced based on our unaffiliated money manager and four securities, which were included in Level 3 because they were not rated by a nationally recognized statistical rating organization, were priced by a nationally recognized pricing service. During the three months ended March 31, 2018, eight securities were purchased and are new issues. One security, which was an exchange of a rated municipal bond for an unrated refunded bond, was transferred from Level 2 into Level 3. There were no transfers of securities between Levels 1 and 2. During the three months ended March 31, 2017, one security, which was an exchange of a rated municipal bond for an unrated refunded bond, was transferred from Level 2 into Level 3. The gains or losses included in net earnings are included in the line item "Net realized gains on investments" in the Consolidated Statements of Earnings. We recognize the net gains or losses included in other comprehensive income in the line item " Unrealized (losses) gains on investments, net " in the Consolidated Statements of Comprehensive Income and the line item "Change in unrealized gain on investments" or the line item "Change in non-credit component of impairment losses on fixed maturities" in the Consolidated Statements of Changes in Shareholders’ Equity. The following table presents the carrying value and estimated fair value of our financial instruments ($ in thousands): March 31, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value Assets: Cash and cash equivalents $ 88,793 $ 88,793 $ 107,589 $ 107,589 Available-for-sale securities: Fixed maturities 1,497,930 1,497,930 1,441,107 1,441,107 Equity securities 90,498 90,498 96,004 96,004 Short-term investments 0 0 2,541 2,541 Total cash and investments $ 1,677,221 $ 1,677,221 $ 1,647,242 $ 1,647,242 Liabilities: Long-term debt $ 273,865 $ 286,330 $ 273,809 $ 290,824 Refer to Note 4 – Investments to the Consolidated Financial Statements for additional information on investments and Note 5 – Long-Term Debt to the Consolidated Financial Statements for additional information on long-term debt. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments We consider all fixed maturity and equity securities to be available-for-sale and report them at fair value. Net unrealized gains or losses on equity securities prior to January 1, 2018, and on fixed maturities are reported after-tax (net of any valuation allowance) as a component of other comprehensive income. As of January 1, 2018, changes in fair value of equity securities are recognized through net income. The proceeds from sales of securities for the three months ended March 31, 2018 , and March 31, 2017 , were $335.6 million and $42.1 million , respectively. Sales of securities were higher during the first quarter of 2018 as a result of our transition to a new investment policy statement and related portfolio repositioning. The proceeds for the three months ended March 31, 2018 , were net of $0.1 million of receivable for securities sold as of March 31, 2018 . The proceeds for the three months ended March 31, 2017 , were net of $5.2 million of receivable for securities sold during the first quarter of 2017 that had not settled as of March 31, 2017 . Gross gains of $2.9 million and gross losses of $1.6 million were realized on sales of available-for-sale securities during the three months ended March 31, 2018 , compared with gross gains of $0.7 million and gross losses of $0.2 million realized on sales during the three months ended March 31, 2017 . Gains or losses on securities are determined on a specific identification basis. Summarized information for the major categories of our investment portfolio follows ($ in thousands): March 31, 2018 Amortized Cost or Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI Recognized in Accumulated OCI (1) Fixed maturities: U.S. government $ 125,887 $ 58 $ (1,188 ) $ 124,757 $ 0 State and municipal 297,994 1,031 (2,211 ) 296,814 0 Mortgage-backed securities: Residential 372,319 669 (7,981 ) 365,007 (72 ) Commercial 63,053 23 (1,016 ) 62,061 0 Total mortgage-backed securities 435,372 693 (8,996 ) 427,068 (72 ) Asset-backed securities 129,010 104 (630 ) 128,484 0 Corporates 524,676 1,726 (5,595 ) 520,807 0 Total fixed maturities 1,512,939 3,612 (18,621 ) 1,497,930 (72 ) Short-term investments 0 0 0 0 0 Total $ 1,512,939 $ 3,612 $ (18,621 ) $ 1,497,930 $ (72 ) December 31, 2017 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 ) (1) The total non-credit portion of OTTI recognized in Accumulated OCI reflecting the original non-credit loss at the time the credit impairment was determined. The following tables set forth the amount of unrealized loss by investment category and length of time that individual securities have been in a continuous unrealized loss position ($ in thousands): Less than 12 Months 12 Months or More March 31, 2018 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 28 $ 48,202 $ (881 ) 1.8 % 16 $ 12,743 $ (307 ) 2.4 % State and municipal 99 184,046 (2,147 ) 1.2 % 4 4,573 (64 ) 1.4 % Mortgage-backed securities: Residential 263 144,098 (2,250 ) 1.5 % 272 119,273 (5,730 ) 4.6 % Commercial 15 30,658 (177 ) 0.6 % 8 23,206 (839 ) 3.5 % Total mortgage-backed securities 278 174,756 (2,427 ) 1.4 % 280 142,480 (6,569 ) 4.4 % Asset-backed securities 43 74,670 (628 ) 0.8 % 1 1,458 (2 ) 0.1 % Corporates 232 367,660 (5,168 ) 1.4 % 15 18,126 (427 ) 2.3 % Total fixed maturities 680 849,333 (11,252 ) 1.3 % 316 179,380 (7,369 ) 3.9 % Short-term investments 0 0 0 0.0 % 0 0 0 0.0 % Total 680 $ 849,333 $ (11,252 ) 1.3 % 316 $ 179,380 $ (7,369 ) 3.9 % December 31, 2017 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 % Corporates 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 % 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 with unrealized gains or losses (2018 includes fixed maturity securities only): March 31, 2018 December 31, 2017 Number of positions held with unrealized: Gains 302 496 Losses 996 722 Number of positions held that individually exceed unrealized: Gains of $500,000 0 2 Losses of $500,000 0 0 Percentage of positions held with unrealized: Gains that were investment grade 84 % 81 % Losses that were investment grade 94 % 97 % Percentage of fair value held with unrealized: Gains that were investment grade 88 % 81 % Losses that were investment grade 93 % 95 % The following table sets forth the amount of unrealized losses by age and severity at March 31, 2018 , ($ 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 $ 454,565 $ (3,506 ) $ (3,394 ) $ (112 ) $ 0 Four months through six months 247,851 (4,193 ) (4,007 ) (185 ) 0 Seven months through nine months 139,484 (3,392 ) (3,392 ) 0 0 Ten months through twelve months 7,432 (161 ) (161 ) 0 0 Greater than twelve months 179,380 (7,369 ) (4,846 ) (2,523 ) 0 Total $ 1,028,713 $ (18,621 ) $ (15,801 ) $ (2,820 ) $ 0 * As a percentage of amortized cost or cost. The change in unrealized gains (losses) on marketable securities recognized through accumulated other comprehensive income included the following ($ in thousands): Pre-tax Three months ended March 31, 2018 Fixed Maturities Short-Term Investments Tax Effects Net Unrealized holding (losses) gains on securities arising during the period $ (18,346 ) $ 1 3,852 (14,492 ) Realized losses (gains) on securities sold 519 (1 ) (109 ) 409 Impairment loss recognized in earnings 1,588 0 (334 ) 1,255 Change in unrealized, net $ (16,238 ) $ 0 $ 3,410 $ (12,828 ) Pre-tax Three months ended March 31, 2017 Fixed Maturities Equity Securities Short-Term Investments Tax Effects Net Unrealized holding gains on securities arising during the period $ 4,368 $ 6,294 $ 3 $ (3,733 ) $ 6,932 Realized losses (gains) on securities sold 52 (569 ) (1 ) 182 (337 ) Impairment loss recognized in earnings 10 0 0 (3 ) 6 Change in unrealized, net $ 4,429 $ 5,725 $ 1 $ (3,554 ) $ 6,601 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): Three months ended March 31, 2018 2017 Beginning balance $ 753 $ 557 Additions for: Previously impaired securities 278 0 Newly impaired securities 7 10 Reductions for: Securities sold and paid down (41 ) (24 ) Ending balance $ 996 $ 542 The table below sets forth the scheduled maturities of fixed maturity securities at March 31, 2018 , 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 $ 9,473 $ 24,024 $ 1,353 $ 34,850 $ 34,848 After one year through five years 188,968 453,537 7,187 649,692 653,913 After five years through ten years 68,219 157,207 649 226,075 228,286 After ten years 31,179 582 0 31,761 31,510 Mortgage- and asset-backed securities 143,210 393,363 18,979 555,552 564,382 Total $ 441,049 $ 1,028,713 $ 28,168 $ 1,497,930 $ 1,512,939 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt ($ in thousands) March 31, 2018 December 31, 2017 Principal $ 275,000 $ 275,000 Unamortized debt issuance costs 1,135 1,191 Long-term debt less unamortized debt issuance costs $ 273,865 $ 273,809 In September 2012 we issued $275 million principal of senior notes due September 2022 (the “ 5.0% Senior Notes”). The 5.0% Senior Notes accrue interest at 5.0% , payable semiannually. At the time we issued the 5.0% Senior Notes, we capitalized $2.2 million of debt issuance costs, which we are amortizing over the term of the 5.0% Senior Notes. We calculated the March 31, 2018 , fair value of $286.3 million using a 124 basis point spread to the 10 -year U.S. Treasury Note of 2.741% . In August 2017 we renewed our agreement for a $50 million three -year revolving credit facility (the “Credit Agreement”) that requires us to meet certain financial and other covenants. We are currently in compliance with all covenants under the Credit Agreement, and as of March 31, 2018 , there were no borrowings outstanding against it. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following is a reconciliation of income taxes at the statutory rate of 21% and 35% for 2018 and 2017, respectively, to the effective provision for income taxes as shown in the Consolidated Statements of Earnings ($ in thousands): Three months ended March 31, 2018 2017 Earnings before income taxes $ 24,937 $ 14,868 Income taxes at statutory rate 5,237 5,204 Effect of: Dividends-received deduction (25 ) (79 ) Tax-exempt interest (279 ) (633 ) Other (80 ) (134 ) Provision for income taxes as shown on the Consolidated Statements of Earnings $ 4,853 $ 4,358 GAAP effective tax rate 19.5 % 29.3 % |
Additional Information
Additional Information | 3 Months Ended |
Mar. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Additional Information | Additional Information Supplemental Cash Flow Information We made the following payments that we do not separately disclose in the Consolidated Statements of Cash Flows ($ in thousands): Three months ended March 31, 2018 2017 Income tax payments $ 0 $ 3,100 Interest payments on debt 6,875 6,875 Interest payments on capital leases 15 21 Negative Cash Book Balances Negative cash book balances, included in the line item “Other liabilities” in the Consolidated Balance Sheets, were $49.2 million and $49.7 million at March 31, 2018 , and December 31, 2017 , respectively. Merger with Kemper Corporation On February 13, 2018, Kemper Corporation (“ Kemper ”), a wholly owned subsidiary of Kemper (“ Kemper Merger Sub ”) and Infinity entered into a merger agreement (the “ Merger Agreement ”) under which Kemper will acquire Infinity in a cash and stock transaction valued at approximately $1.4 billion , plus assumption of certain of Infinity’s debt, or $129.00 per Infinity share; the exchange ratio for stock consideration to be issued in the merger is fixed and was determined based on Kemper’s 20-trading day volume weighted average price as of February 12, 2018 of $64.40 . Based on Kemper’s February 12, 2018 closing stock price of $57.75 , the implied total consideration is approximately $1.3 billion , or $121.01 per Infinity share. Pursuant to the Merger Agreement, Kemper Merger Sub will merge with and into Infinity, with Infinity surviving as a wholly owned subsidiary of Kemper. Kemper is a diversified insurance holding company, with subsidiaries that provide automobile, homeowners, life, health, and other insurance products to individuals and businesses. Kemper conducts its operations through two operating segments: Property & Casualty Insurance and Life & Health Insurance. Kemper conducts its operations solely in the United States with approximately 5,550 full-time associates supporting their operations. Under the terms of the Merger Agreement, as of the effective time of the merger (the “ Effective Time ”), each share of Infinity common stock issued and outstanding as of immediately prior to the Effective Time (other than as set forth in the Merger Agreement) will be canceled and converted into, at the election of the holder of such share and subject to an automatic adjustment as described below, the right to, receive (i) $51.60 in cash and 1.2019 Kemper common shares for each share of Infinity common stock, without interest (the “ Mixed Consideration ”), (ii) an amount of cash for each share of Infinity common stock, without interest, equal to $129.00 (the “ Cash Consideration ”) or (iii) a number of shares of Kemper common stock equal to 2.0031 (the “ Stock Consideration ”). Holders of Infinity common stock who do not make an election will receive the Mixed Consideration. The consideration to be paid to holders of Infinity common stock electing to receive the Cash Consideration or the Stock Consideration in connection with the merger is subject to automatic adjustment, as applicable, to ensure that the total amount of cash paid and the total number of shares of Kemper common stock issued in the merger is the same as what would be paid and issued if all holders of Infinity common stock were to receive the Mixed Consideration. Following the close of the merger, Infinity shareholders are expected to own approximately 20% of the combined company on a pro-forma basis. The merger has been approved by the Board of Directors of each company and is expected to close in the third quarter of 2018, subject to the satisfaction or waiver of applicable closing conditions. During the first quarter of 2018, Kemper and Infinity received notice from the U.S. Federal Trade Commission granting early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, thereby satisfying one of the applicable closing conditions. Remaining closing conditions to which the completion of the merger is subject include, among others, (i) adoption by Infinity shareholders of the Merger Agreement, (ii) approval by Kemper stockholders of the issuance of Kemper common stock in connection with the merger, (iii) the receipt of certain other regulatory approvals, (iv) the absence of any effective order issued by any court of competent jurisdiction or other legal restraint prohibiting or preventing the consummation of the merger and (v) other closing conditions. |
Insurance Reserves
Insurance Reserves | 3 Months Ended |
Mar. 31, 2018 | |
Insurance [Abstract] | |
Insurance Reserves | Insurance Reserves Insurance reserves include liabilities for unpaid losses, both known and estimated for incurred but not reported (IBNR), and unpaid loss adjustment expenses (LAE). The following table provides an analysis of changes in the liability for unpaid losses and LAE on a GAAP basis ($ in thousands): Three months ended March 31, 2018 2017 Balance at Beginning of Period Unpaid losses on known claims $ 264,470 $ 238,412 IBNR losses 312,516 306,641 LAE 138,112 140,402 Total unpaid losses and LAE 715,098 685,455 Reinsurance recoverables (31,609 ) (17,130 ) Unpaid losses and LAE, net of reinsurance recoverables 683,489 668,325 Current Activity Loss and LAE incurred: Current accident year 273,408 277,044 Prior accident years (8,856 ) (6,368 ) Total loss and LAE incurred 264,552 270,676 Loss and LAE payments: Current accident year (89,106 ) (96,869 ) Prior accident years (177,479 ) (179,319 ) Total loss and LAE payments (266,585 ) (276,187 ) Balance at End of Period Unpaid losses and LAE, net of reinsurance recoverables 681,457 662,814 Add back reinsurance recoverables 19,549 16,133 Total unpaid losses and LAE 701,006 678,947 Unpaid losses on known claims 247,940 233,303 IBNR losses 318,281 307,932 LAE 134,786 137,712 Total unpaid losses and LAE $ 701,006 $ 678,947 The $8.9 million of favorable reserve development during the three months ended March 31, 2018 , was primarily due to decreases in accident year 2017 estimates from California, with lower ultimate frequency estimates in collision and comprehensive coverages along with lower ultimate severity estimates for collision coverage, and from Florida, with decreased ultimate frequency estimates in collision, comprehensive and personal injury protection coverages. The $6.4 million of favorable reserve development during the three months ended March 31, 2017 , was primarily due to decreases in frequency estimates in California and Florida material damage coverages related to accident year 2016, partially offset by increases in severity estimates in personal injury protection coverages and in bodily injury coverages in our commercial auto product related to accident years 2016 and prior. |
Commitments And Contingencies
Commitments And Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments There have been no material changes from the commitments discussed on Form 10-K for the year ended December 31, 2017 . For a description of our previously reported commitments, refer to Note 14 Commitments and Contingencies of our Form 10-K for the year ended December 31, 2017 . Contingencies From time to time, we and our subsidiaries are named as defendants in various lawsuits incidental to our insurance operations. We consider legal actions relating to claims made in the ordinary course of seeking indemnification for a loss covered by the insurance policy in establishing loss and LAE reserves. We also face in the ordinary course of business lawsuits that seek damages beyond policy limits, commonly known as extra-contractual claims, as well as class action and individual lawsuits that involve issues not unlike those facing other insurance companies and employers. We continually evaluate potential liabilities and reserves for litigation of these types using the criteria established by the Contingencies topic of the 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. Certain claims and regulatory or legal actions have been threatened or 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 March 31, 2018, 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. For a description of previously reported contingencies, refer to Note 14 Commitments and Contingencies of our Form 10-K for the year ended December 31, 2017 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The components of other comprehensive income before and after tax are as follows ($ in thousands): Three months ended March 31, 2018 2017 Before Tax Income Tax Net Before Tax Income Tax Net Accumulated change in post-retirement benefit liability, beginning of period $ 829 $ (290 ) $ 539 $ 1,033 $ (361 ) $ 671 Cumulative effect of change in accounting principle 0 116 116 0 0 0 Effect on other comprehensive income (2 ) 0 (1 ) (13 ) 4 (8 ) Accumulated change in post-retirement benefit liability, end of period 827 (174 ) 653 1,020 (357 ) 663 Accumulated unrealized gains on investments, net, beginning of period 28,421 (9,204 ) 19,217 11,133 (3,896 ) 7,236 Cumulative effect of change in accounting principle (27,192 ) 8,948 (18,244 ) 0 0 0 Other comprehensive (loss) income before reclassification (1) (18,344 ) 3,852 (14,492 ) 10,664 (3,733 ) 6,932 Reclassification adjustment for other-than-temporary impairments included in net income (1) 1,588 (334 ) 1,255 10 (3 ) 6 Reclassification adjustment for realized losses (gains) included in net income (1) 518 (109 ) 409 (519 ) 182 (337 ) Effect on other comprehensive income (16,238 ) 3,410 (12,828 ) 10,155 (3,554 ) 6,601 Accumulated unrealized (losses) gains on investments, net, end of period (15,009 ) 3,154 (11,855 ) 21,288 (7,451 ) 13,837 Accumulated other comprehensive income, beginning of period 29,250 (9,494 ) 19,756 12,165 (4,258 ) 7,907 Cumulative effect of change in accounting principle (27,192 ) 9,064 (18,128 ) 0 0 0 Change in post-retirement benefit liability (2 ) 0 (1 ) (13 ) 4 (8 ) Change in unrealized (losses) gains on investments, net (1) (16,238 ) 3,410 (12,828 ) 10,155 (3,554 ) 6,601 Effect on other comprehensive income (43,432 ) 12,474 (30,958 ) 10,143 (3,550 ) 6,593 Accumulated other comprehensive (loss) income, end of period $ (14,182 ) $ 2,980 $ (11,202 ) $ 22,308 $ (7,808 ) $ 14,500 (1) The amounts for 2018 are for fixed maturities only. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2018 | |
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. 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): Three months ended March 31, Gross written premium: 2018 2017 Personal Auto $ 370,193 $ 324,352 Commercial Auto 47,739 42,785 Classic Collector 3,660 3,565 Total gross written premium 421,592 370,702 Ceded reinsurance: Personal Auto (2,077 ) (983 ) Commercial Auto (1,379 ) (1,412 ) Classic Collector (260 ) (213 ) Total ceded reinsurance (3,716 ) (2,608 ) Net written premium: Personal Auto 368,116 323,369 Commercial Auto 46,360 41,373 Classic Collector 3,400 3,352 Total net written premium 417,876 368,094 Change in unearned premium: Personal Auto (57,817 ) (20,983 ) Commercial Auto (6,532 ) (6,170 ) Classic Collector 460 428 Total change in unearned premium (63,889 ) (26,726 ) Earned premium: Personal Auto 310,298 302,386 Commercial Auto 39,828 35,203 Classic Collector 3,860 3,780 Total earned premium 353,987 341,368 Installment and other fee income: Personal Auto 24,281 23,937 Commercial Auto 3,114 2,802 Classic Collector 0 0 Total installment and other fee income 27,395 26,739 Net investment income 9,786 8,695 Net realized gains on investments (2,832 ) 509 Other income 430 275 Total revenues $ 388,766 $ 377,587 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. Three months ended March 31, 2018 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 $ 6,311 94.8 % $ 812 95.2 % $ 613 88.1 % $ 7,737 94.7 % Bad debt charge-offs 3,363 392 (44 ) 3,711 Favorable (unfavorable) development on prior accident years 10,555 (1,362 ) (337 ) 8,856 Statutory calendar year underwriting income 20,229 90.5 % (158 ) 97.8 % 233 98.2 % 20,304 91.3 % Statutory-to-GAAP underwriting income differences 6,005 GAAP calendar year underwriting income 26,309 92.6 % Net investment income 9,786 Net realized gains on investments (2,832 ) Other income 430 Interest expense (3,509 ) Corporate general and administrative expenses (4,743 ) Other expenses (505 ) Earnings before income taxes $ 24,937 (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. Three months ended March 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 $ 1,594 98.3 % $ 629 95.3 % $ 335 95.3 % $ 2,558 98.0 % Bad debt charge-offs 2,251 291 10 2,552 Favorable (unfavorable) development on prior accident years 6,986 (874 ) 256 6,368 Statutory calendar year underwriting income 10,831 95.2 % 45 97.1 % 602 88.3 % 11,478 95.4 % Statutory-to-GAAP underwriting income differences 14 GAAP calendar year underwriting income 11,492 96.6 % Net investment income 8,695 Net realized gains on investments 509 Other income 275 Interest expense (3,512 ) Corporate general and administrative expenses (2,271 ) Other expenses (322 ) Earnings before income taxes $ 14,868 (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 Acc19
Significant Reporting And Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Consolidation and Reporting | Basis of Consolidation and Reporting The accompanying consolidated financial statements are unaudited and should be read in conjunction with our Annual Report on Form 10-K (Form 10-K) for the year ended December 31, 2017 . This Quarterly Report on Form 10-Q, including the Condensed Notes to Consolidated Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations, focuses on our financial performance since the beginning of the year. These financial statements reflect certain adjustments necessary for a fair presentation of our results of operations and financial position. Such adjustments consist of normal, recurring accruals recorded to accurately match expenses with their related revenue streams and the elimination of all significant intercompany transactions and balances. We have evaluated events that occurred after March 31, 2018 , for recognition or disclosure in our financial statements and the notes to the financial statements. Schedules may not foot due to rounding. |
Estimates | Estimates We based certain accounts and balances within these financial statements upon our estimates and assumptions. The amount of reserves for claims not yet paid, for example, is an item that we can only record by estimation. Unrealized capital gains and losses on investments are subject to market fluctuations, and we use judgment in the determination of whether unrealized losses on certain securities are temporary or other-than-temporary. Should actual results differ significantly from these estimates, the effect on our results of operations could be material. The results of operations for the periods presented may not be indicative of our results for the entire year. |
Recently Adopted and Issued Accounting Standards | Recently Adopted Accounting Standards In February 2018 the FASB issued an ASU allowing a reclassification from accumulated other comprehensive income to retained earnings and consequently eliminating the stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017. We elected to early adopt the ASU and applied the amendment in the period of adoption, with a cumulative-effect adjustment of $0.4 million reclassified from accumulated other comprehensive income to retained earnings. 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. We adopted the change on a modified retrospective basis, with a cumulative-effect adjustment of less than $(0.1) million recorded to retained earnings as of January 1, 2018. 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. We adopted the change on a modified retrospective basis as of January 1, 2018, with a cumulative-effect adjustment of $17.7 million reclassified from other comprehensive income to retained earnings. In May 2014 the FASB issued an ASU related to the accounting for revenue from contracts with customers. Insurance contracts were excluded from the scope of the guidance. 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 were generally earned at the inception of the policy under previous guidance but are earned over the life of the policy under current guidance. The guidance was adopted as of January 1, 2018, using a full retrospective approach with a cumulative-effect adjustment to the balance sheet, which reduced shareholders' equity by $4.5 million . The following table illustrates the effect of adopting this standard on the Consolidated Balance Sheets ($ in millions): December 31, 2017 As Reported As Adjusted Difference Agents' balances and premium receivable $ 508.1 $ 508.0 $ (0.1 ) Current and deferred income taxes 9.4 10.5 1.2 Total assets 2,473.4 2,474.5 1.1 Other liabilities 114.3 119.8 5.5 Shareholders' equity 720.3 715.8 (4.5 ) Total liabilities and shareholders' equity 2,473.4 2,474.5 1.1 The following table illustrates the effect of adopting this standard on the Consolidated Statements of Earnings (in millions, except per share amounts): Three months ended March 31, 2017 As Reported As Adjusted Difference Installment and other fee income $ 26.9 $ 26.7 $ (0.2 ) Total revenues 377.8 377.6 (0.2 ) Earnings before income taxes 15.1 14.9 (0.2 ) Provision for income taxes 4.4 4.4 (0.1 ) Net earnings 10.6 10.5 (0.1 ) Net earnings per common share: Basic $ 0.97 $ 0.96 $ (0.01 ) Diluted 0.96 0.94 (0.02 ) We also adjusted the Consolidated Statements of Changes in Shareholders' Equity and the Consolidated Statements of Cash Flows for these changes for the three months ended March 31, 2017. 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 period 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 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. |
Significant Reporting And Acc20
Significant Reporting And Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following table illustrates the effect of adopting this standard on the Consolidated Balance Sheets ($ in millions): December 31, 2017 As Reported As Adjusted Difference Agents' balances and premium receivable $ 508.1 $ 508.0 $ (0.1 ) Current and deferred income taxes 9.4 10.5 1.2 Total assets 2,473.4 2,474.5 1.1 Other liabilities 114.3 119.8 5.5 Shareholders' equity 720.3 715.8 (4.5 ) Total liabilities and shareholders' equity 2,473.4 2,474.5 1.1 The following table illustrates the effect of adopting this standard on the Consolidated Statements of Earnings (in millions, except per share amounts): Three months ended March 31, 2017 As Reported As Adjusted Difference Installment and other fee income $ 26.9 $ 26.7 $ (0.2 ) Total revenues 377.8 377.6 (0.2 ) Earnings before income taxes 15.1 14.9 (0.2 ) Provision for income taxes 4.4 4.4 (0.1 ) Net earnings 10.6 10.5 (0.1 ) Net earnings per common share: Basic $ 0.97 $ 0.96 $ (0.01 ) Diluted 0.96 0.94 (0.02 ) |
Computation of Net Earnings per
Computation of Net Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Earnings Per Common Share | The following table illustrates our computations of basic and diluted net earnings per common share ($ in thousands, except per share figures): Three months ended March 31, 2018 2017 Net earnings $ 20,083 $ 10,510 Average basic shares outstanding 10,915 10,998 Basic net earnings per share $ 1.84 $ 0.96 Average basic shares outstanding 10,915 10,998 Restricted stock not vested 8 33 Dilutive effect of Performance Share Plan 86 96 Average diluted shares outstanding 11,009 11,127 Diluted net earnings per share $ 1.82 $ 0.94 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair value by hierarchy | The following tables present, for each of the fair value hierarchy levels, our assets and liabilities for which we report fair value on a recurring basis ($ in thousands): Fair Value March 31, 2018 Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 88,793 $ 0 $ 0 $ 88,793 Fixed maturity securities: U.S. government 124,757 0 0 124,757 State and municipal 0 296,048 766 296,814 Mortgage-backed securities: Residential 0 365,007 0 365,007 Commercial 0 59,204 2,857 62,061 Total mortgage-backed securities 0 424,211 2,857 427,068 Asset-backed securities 0 110,836 17,647 128,484 Corporates 0 520,698 109 520,807 Total fixed maturities 124,757 1,351,794 21,379 1,497,930 Equity securities 90,498 0 0 90,498 Short-term investments 0 0 0 0 Total cash and investments $ 304,048 $ 1,351,794 $ 21,379 $ 1,677,221 Percentage of total cash and investments 18.1 % 80.6 % 1.3 % 100.0 % December 31, 2017 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 % |
Fair value level 3 reconciliation | The following tables present the progression in the Level 3 fair value category ($ in thousands): Three months ended March 31, 2018 State and Municipal Mortgage- Backed Securities Asset-Backed Securities Corporates Total Balance at beginning of period $ 3,488 $ 0 $ 152 $ 108 $ 3,748 Total (losses) gains, unrealized or realized Included in net earnings (10 ) 0 (0 ) (0 ) (10 ) Included in other comprehensive income 3 10 27 1 41 Purchases 0 2,847 17,729 0 20,576 Sales (3,360 ) 0 0 0 (3,360 ) Settlements 0 0 (261 ) 0 (261 ) Transfers in 645 0 0 0 645 Balance at end of period $ 766 $ 2,857 $ 17,647 $ 109 $ 21,379 Three months ended March 31, 2017 Balance at beginning of period $ 3,860 $ 0 $ 412 $ 666 $ 4,938 Total (losses) gains, unrealized or realized Included in net earnings (31 ) 0 0 1 (30 ) Included in other comprehensive income 15 0 1 (22 ) (6 ) Purchases 0 0 4,259 2,000 6,259 Sales (694 ) 0 0 0 (694 ) Settlements 0 0 (88 ) (92 ) (180 ) Transfers in 329 0 0 0 329 Balance at end of period $ 3,479 $ 0 $ 4,584 $ 2,553 $ 10,616 |
Carrying Value and Estimated Fair Value | The following table presents the carrying value and estimated fair value of our financial instruments ($ in thousands): March 31, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value Assets: Cash and cash equivalents $ 88,793 $ 88,793 $ 107,589 $ 107,589 Available-for-sale securities: Fixed maturities 1,497,930 1,497,930 1,441,107 1,441,107 Equity securities 90,498 90,498 96,004 96,004 Short-term investments 0 0 2,541 2,541 Total cash and investments $ 1,677,221 $ 1,677,221 $ 1,647,242 $ 1,647,242 Liabilities: Long-term debt $ 273,865 $ 286,330 $ 273,809 $ 290,824 |
Investments (Tables)
Investments (Tables) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||
Summary of information of investment portfolio | Summarized information for the major categories of our investment portfolio follows ($ in thousands): March 31, 2018 Amortized Cost or Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI Recognized in Accumulated OCI (1) Fixed maturities: U.S. government $ 125,887 $ 58 $ (1,188 ) $ 124,757 $ 0 State and municipal 297,994 1,031 (2,211 ) 296,814 0 Mortgage-backed securities: Residential 372,319 669 (7,981 ) 365,007 (72 ) Commercial 63,053 23 (1,016 ) 62,061 0 Total mortgage-backed securities 435,372 693 (8,996 ) 427,068 (72 ) Asset-backed securities 129,010 104 (630 ) 128,484 0 Corporates 524,676 1,726 (5,595 ) 520,807 0 Total fixed maturities 1,512,939 3,612 (18,621 ) 1,497,930 (72 ) Short-term investments 0 0 0 0 0 Total $ 1,512,939 $ 3,612 $ (18,621 ) $ 1,497,930 $ (72 ) December 31, 2017 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 ) (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 portion of unrealized gains and losses recorded during the three months ended March 31, 2018, that relate to equities still held at the end of the reporting date are as follows ($ in thousands): Net losses recognized during the period on equity securities $ (726 ) Less: Net gains recognized during the period on equity securities sold (1,881 ) Unrealized losses recognized during the period on equity securities still held at the reporting date $ (2,607 ) |
Unrealized loss by investment category and length of time | The following tables set forth the amount of unrealized loss by investment category and length of time that individual securities have been in a continuous unrealized loss position ($ in thousands): Less than 12 Months 12 Months or More March 31, 2018 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 28 $ 48,202 $ (881 ) 1.8 % 16 $ 12,743 $ (307 ) 2.4 % State and municipal 99 184,046 (2,147 ) 1.2 % 4 4,573 (64 ) 1.4 % Mortgage-backed securities: Residential 263 144,098 (2,250 ) 1.5 % 272 119,273 (5,730 ) 4.6 % Commercial 15 30,658 (177 ) 0.6 % 8 23,206 (839 ) 3.5 % Total mortgage-backed securities 278 174,756 (2,427 ) 1.4 % 280 142,480 (6,569 ) 4.4 % Asset-backed securities 43 74,670 (628 ) 0.8 % 1 1,458 (2 ) 0.1 % Corporates 232 367,660 (5,168 ) 1.4 % 15 18,126 (427 ) 2.3 % Total fixed maturities 680 849,333 (11,252 ) 1.3 % 316 179,380 (7,369 ) 3.9 % Short-term investments 0 0 0 0.0 % 0 0 0 0.0 % Total 680 $ 849,333 $ (11,252 ) 1.3 % 316 $ 179,380 $ (7,369 ) 3.9 % December 31, 2017 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 % Corporates 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 % | |
Summary of unrealized gains or losses | The following table summarizes those securities with unrealized gains or losses (2018 includes fixed maturity securities only): March 31, 2018 December 31, 2017 Number of positions held with unrealized: Gains 302 496 Losses 996 722 Number of positions held that individually exceed unrealized: Gains of $500,000 0 2 Losses of $500,000 0 0 Percentage of positions held with unrealized: Gains that were investment grade 84 % 81 % Losses that were investment grade 94 % 97 % Percentage of fair value held with unrealized: Gains that were investment grade 88 % 81 % Losses that were investment grade 93 % 95 % | |
Unrealized loss by age and severity | The following table sets forth the amount of unrealized losses by age and severity at March 31, 2018 , ($ 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 $ 454,565 $ (3,506 ) $ (3,394 ) $ (112 ) $ 0 Four months through six months 247,851 (4,193 ) (4,007 ) (185 ) 0 Seven months through nine months 139,484 (3,392 ) (3,392 ) 0 0 Ten months through twelve months 7,432 (161 ) (161 ) 0 0 Greater than twelve months 179,380 (7,369 ) (4,846 ) (2,523 ) 0 Total $ 1,028,713 $ (18,621 ) $ (15,801 ) $ (2,820 ) $ 0 * As a percentage of amortized cost or cost. | |
Change in unrealized gains (losses) on marketable securities | The change in unrealized gains (losses) on marketable securities recognized through accumulated other comprehensive income included the following ($ in thousands): Pre-tax Three months ended March 31, 2018 Fixed Maturities Short-Term Investments Tax Effects Net Unrealized holding (losses) gains on securities arising during the period $ (18,346 ) $ 1 3,852 (14,492 ) Realized losses (gains) on securities sold 519 (1 ) (109 ) 409 Impairment loss recognized in earnings 1,588 0 (334 ) 1,255 Change in unrealized, net $ (16,238 ) $ 0 $ 3,410 $ (12,828 ) Pre-tax Three months ended March 31, 2017 Fixed Maturities Equity Securities Short-Term Investments Tax Effects Net Unrealized holding gains on securities arising during the period $ 4,368 $ 6,294 $ 3 $ (3,733 ) $ 6,932 Realized losses (gains) on securities sold 52 (569 ) (1 ) 182 (337 ) Impairment loss recognized in earnings 10 0 0 (3 ) 6 Change in unrealized, net $ 4,429 $ 5,725 $ 1 $ (3,554 ) $ 6,601 | |
Progression of credit losses on fixed maturity securities | The following table is a progression of credit losses on fixed maturity securities that were bifurcated between a credit and non-credit component ($ in thousands): Three months ended March 31, 2018 2017 Beginning balance $ 753 $ 557 Additions for: Previously impaired securities 278 0 Newly impaired securities 7 10 Reductions for: Securities sold and paid down (41 ) (24 ) Ending balance $ 996 $ 542 | |
Scheduled maturities of fixed maturity securities | The table below sets forth the scheduled maturities of fixed maturity securities at March 31, 2018 , 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 $ 9,473 $ 24,024 $ 1,353 $ 34,850 $ 34,848 After one year through five years 188,968 453,537 7,187 649,692 653,913 After five years through ten years 68,219 157,207 649 226,075 228,286 After ten years 31,179 582 0 31,761 31,510 Mortgage- and asset-backed securities 143,210 393,363 18,979 555,552 564,382 Total $ 441,049 $ 1,028,713 $ 28,168 $ 1,497,930 $ 1,512,939 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | ($ in thousands) March 31, 2018 December 31, 2017 Principal $ 275,000 $ 275,000 Unamortized debt issuance costs 1,135 1,191 Long-term debt less unamortized debt issuance costs $ 273,865 $ 273,809 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of provision for income taxes | The following is a reconciliation of income taxes at the statutory rate of 21% and 35% for 2018 and 2017, respectively, to the effective provision for income taxes as shown in the Consolidated Statements of Earnings ($ in thousands): Three months ended March 31, 2018 2017 Earnings before income taxes $ 24,937 $ 14,868 Income taxes at statutory rate 5,237 5,204 Effect of: Dividends-received deduction (25 ) (79 ) Tax-exempt interest (279 ) (633 ) Other (80 ) (134 ) Provision for income taxes as shown on the Consolidated Statements of Earnings $ 4,853 $ 4,358 GAAP effective tax rate 19.5 % 29.3 % |
Additional Information (Tables)
Additional Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | We made the following payments that we do not separately disclose in the Consolidated Statements of Cash Flows ($ in thousands): Three months ended March 31, 2018 2017 Income tax payments $ 0 $ 3,100 Interest payments on debt 6,875 6,875 Interest payments on capital leases 15 21 |
Insurance Reserves (Tables)
Insurance Reserves (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Insurance [Abstract] | |
Liability for unpaid losses and LAE | The following table provides an analysis of changes in the liability for unpaid losses and LAE on a GAAP basis ($ in thousands): Three months ended March 31, 2018 2017 Balance at Beginning of Period Unpaid losses on known claims $ 264,470 $ 238,412 IBNR losses 312,516 306,641 LAE 138,112 140,402 Total unpaid losses and LAE 715,098 685,455 Reinsurance recoverables (31,609 ) (17,130 ) Unpaid losses and LAE, net of reinsurance recoverables 683,489 668,325 Current Activity Loss and LAE incurred: Current accident year 273,408 277,044 Prior accident years (8,856 ) (6,368 ) Total loss and LAE incurred 264,552 270,676 Loss and LAE payments: Current accident year (89,106 ) (96,869 ) Prior accident years (177,479 ) (179,319 ) Total loss and LAE payments (266,585 ) (276,187 ) Balance at End of Period Unpaid losses and LAE, net of reinsurance recoverables 681,457 662,814 Add back reinsurance recoverables 19,549 16,133 Total unpaid losses and LAE 701,006 678,947 Unpaid losses on known claims 247,940 233,303 IBNR losses 318,281 307,932 LAE 134,786 137,712 Total unpaid losses and LAE $ 701,006 $ 678,947 |
Accumulated Other Comprehensi28
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Other Comprehensive Income Before and After Tax | The components of other comprehensive income before and after tax are as follows ($ in thousands): Three months ended March 31, 2018 2017 Before Tax Income Tax Net Before Tax Income Tax Net Accumulated change in post-retirement benefit liability, beginning of period $ 829 $ (290 ) $ 539 $ 1,033 $ (361 ) $ 671 Cumulative effect of change in accounting principle 0 116 116 0 0 0 Effect on other comprehensive income (2 ) 0 (1 ) (13 ) 4 (8 ) Accumulated change in post-retirement benefit liability, end of period 827 (174 ) 653 1,020 (357 ) 663 Accumulated unrealized gains on investments, net, beginning of period 28,421 (9,204 ) 19,217 11,133 (3,896 ) 7,236 Cumulative effect of change in accounting principle (27,192 ) 8,948 (18,244 ) 0 0 0 Other comprehensive (loss) income before reclassification (1) (18,344 ) 3,852 (14,492 ) 10,664 (3,733 ) 6,932 Reclassification adjustment for other-than-temporary impairments included in net income (1) 1,588 (334 ) 1,255 10 (3 ) 6 Reclassification adjustment for realized losses (gains) included in net income (1) 518 (109 ) 409 (519 ) 182 (337 ) Effect on other comprehensive income (16,238 ) 3,410 (12,828 ) 10,155 (3,554 ) 6,601 Accumulated unrealized (losses) gains on investments, net, end of period (15,009 ) 3,154 (11,855 ) 21,288 (7,451 ) 13,837 Accumulated other comprehensive income, beginning of period 29,250 (9,494 ) 19,756 12,165 (4,258 ) 7,907 Cumulative effect of change in accounting principle (27,192 ) 9,064 (18,128 ) 0 0 0 Change in post-retirement benefit liability (2 ) 0 (1 ) (13 ) 4 (8 ) Change in unrealized (losses) gains on investments, net (1) (16,238 ) 3,410 (12,828 ) 10,155 (3,554 ) 6,601 Effect on other comprehensive income (43,432 ) 12,474 (30,958 ) 10,143 (3,550 ) 6,593 Accumulated other comprehensive (loss) income, end of period $ (14,182 ) $ 2,980 $ (11,202 ) $ 22,308 $ (7,808 ) $ 14,500 (1) The amounts for 2018 are for fixed maturities only. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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): Three months ended March 31, Gross written premium: 2018 2017 Personal Auto $ 370,193 $ 324,352 Commercial Auto 47,739 42,785 Classic Collector 3,660 3,565 Total gross written premium 421,592 370,702 Ceded reinsurance: Personal Auto (2,077 ) (983 ) Commercial Auto (1,379 ) (1,412 ) Classic Collector (260 ) (213 ) Total ceded reinsurance (3,716 ) (2,608 ) Net written premium: Personal Auto 368,116 323,369 Commercial Auto 46,360 41,373 Classic Collector 3,400 3,352 Total net written premium 417,876 368,094 Change in unearned premium: Personal Auto (57,817 ) (20,983 ) Commercial Auto (6,532 ) (6,170 ) Classic Collector 460 428 Total change in unearned premium (63,889 ) (26,726 ) Earned premium: Personal Auto 310,298 302,386 Commercial Auto 39,828 35,203 Classic Collector 3,860 3,780 Total earned premium 353,987 341,368 Installment and other fee income: Personal Auto 24,281 23,937 Commercial Auto 3,114 2,802 Classic Collector 0 0 Total installment and other fee income 27,395 26,739 Net investment income 9,786 8,695 Net realized gains on investments (2,832 ) 509 Other income 430 275 Total revenues $ 388,766 $ 377,587 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. Three months ended March 31, 2018 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 $ 6,311 94.8 % $ 812 95.2 % $ 613 88.1 % $ 7,737 94.7 % Bad debt charge-offs 3,363 392 (44 ) 3,711 Favorable (unfavorable) development on prior accident years 10,555 (1,362 ) (337 ) 8,856 Statutory calendar year underwriting income 20,229 90.5 % (158 ) 97.8 % 233 98.2 % 20,304 91.3 % Statutory-to-GAAP underwriting income differences 6,005 GAAP calendar year underwriting income 26,309 92.6 % Net investment income 9,786 Net realized gains on investments (2,832 ) Other income 430 Interest expense (3,509 ) Corporate general and administrative expenses (4,743 ) Other expenses (505 ) Earnings before income taxes $ 24,937 (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. Three months ended March 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 $ 1,594 98.3 % $ 629 95.3 % $ 335 95.3 % $ 2,558 98.0 % Bad debt charge-offs 2,251 291 10 2,552 Favorable (unfavorable) development on prior accident years 6,986 (874 ) 256 6,368 Statutory calendar year underwriting income 10,831 95.2 % 45 97.1 % 602 88.3 % 11,478 95.4 % Statutory-to-GAAP underwriting income differences 14 GAAP calendar year underwriting income 11,492 96.6 % Net investment income 8,695 Net realized gains on investments 509 Other income 275 Interest expense (3,512 ) Corporate general and administrative expenses (2,271 ) Other expenses (322 ) Earnings before income taxes $ 14,868 (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 Acc30
Significant Reporting And Accounting Policies (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018USD ($)state | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Accounting Policies [Abstract] | ||||
Number of states licensed to write insurance | state | 50 | |||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cumulative effect of change in accounting principle | $ (10) | $ (3,808) | ||
Unrealized holding gains on securities arising during period, net of tax | $ (14,492) | $ 6,932 | ||
Installment and other fee income | $ 27,395 | 26,739 | ||
Accounting Standards Update 2018-05 | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cumulative effect of change in accounting principle | 400 | |||
Accounting Standards Update 2016-16 | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cumulative effect of change in accounting principle | (100) | |||
Accounting Standards Update 2016-01 | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cumulative effect of change in accounting principle | 17,700 | |||
Accounting Standards Update 2014-09 | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cumulative effect of change in accounting principle | $ 4,500 |
Significant Reporting And Acc31
Significant Reporting And Accounting Policies - Effect of Revenue Standard on the Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Agents' balances and premium receivable | $ 557,206 | $ 507,963 | ||
Current and deferred income taxes | 9,091 | 10,543 | ||
Total assets | 2,551,466 | 2,474,484 | ||
Other liabilities | 110,996 | 119,831 | ||
Shareholders' equity | 717,916 | 715,812 | $ 705,225 | $ 699,187 |
Total liabilities and shareholders' equity | $ 2,551,466 | 2,474,484 | ||
As Reported | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Agents' balances and premium receivable | 508,100 | |||
Current and deferred income taxes | 9,400 | |||
Total assets | 2,473,400 | |||
Other liabilities | 114,300 | |||
Shareholders' equity | 720,300 | |||
Total liabilities and shareholders' equity | 2,473,400 | |||
Accounting Standards Update 2014-09 | As Adjusted | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Agents' balances and premium receivable | (100) | |||
Current and deferred income taxes | 1,200 | |||
Total assets | 1,100 | |||
Other liabilities | 5,500 | |||
Shareholders' equity | (4,500) | |||
Total liabilities and shareholders' equity | $ 1,100 |
Significant Reporting And Acc32
Significant Reporting And Accounting Policies - Effect of Revenue Standard on the Consolidated Statement of Earnigns (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Installment and other fee income | $ 27,395 | $ 26,739 | |
Total revenues | 388,766 | 377,587 | |
Earnings before income taxes | 24,937 | 14,868 | |
Provision for income taxes | 4,853 | 4,358 | |
Net earnings | $ 20,083 | $ 10,510 | $ 34,214 |
Basic (usd per share) | $ 1.84 | $ 0.96 | |
Diluted (usd per share) | $ 1.82 | $ 0.94 | |
As Reported | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Installment and other fee income | $ 26,900 | ||
Total revenues | 377,800 | ||
Earnings before income taxes | 15,100 | ||
Provision for income taxes | 4,400 | ||
Net earnings | $ 10,600 | ||
Basic (usd per share) | $ 0 | ||
Diluted (usd per share) | $ 0 | ||
Accounting Standards Update 2014-09 | As Adjusted | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Installment and other fee income | $ (200) | ||
Total revenues | (200) | ||
Earnings before income taxes | (200) | ||
Provision for income taxes | (100) | ||
Net earnings | $ (100) | ||
Basic (usd per share) | $ 0 | ||
Diluted (usd per share) | $ 0 |
Computation of Net Earnings p33
Computation of Net Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Computation of net earnings per share | |||
Net earnings | $ 20,083 | $ 10,510 | $ 34,214 |
Average basic shares outstanding (shares) | 10,915 | 10,998 | |
Basic net earnings per share (usd per share) | $ 1.84 | $ 0.96 | |
Average diluted shares outstanding (shares) | 11,009 | 11,127 | |
Diluted net earnings per share (usd per share) | $ 1.82 | $ 0.94 | |
Restricted stock not vested | |||
Computation of net earnings per share | |||
Dilutive shares (shares) | 8 | 33 | |
Dilutive effect of Performance Share Plan | |||
Computation of net earnings per share | |||
Dilutive shares (shares) | 86 | 96 |
Fair Value - Fair Value by Hier
Fair Value - Fair Value by Hierarchy (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | $ 1,497,930 | $ 1,539,653 |
Recurring basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Long-term debt | 286,300 | 290,800 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Cash and cash equivalents | 88,793 | 107,589 |
Long-term debt | 286,330 | 290,824 |
Fair Value | Fixed Maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 1,497,930 | 1,441,107 |
Fair Value | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 90,498 | 96,004 |
Fair Value | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 2,541 |
Fair Value | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Cash and cash equivalents | 88,793 | 107,589 |
Total cash and investments | $ 1,677,221 | $ 1,647,242 |
Percentage of total cash and investments (percent) | 100.00% | 100.00% |
Fair Value | Recurring basis | Fixed Maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | $ 1,497,930 | $ 1,441,107 |
Fair Value | Recurring basis | U.S. government | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 124,757 | 60,528 |
Fair Value | Recurring basis | State and Municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 296,814 | 494,211 |
Fair Value | Recurring basis | Mortgage- Backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 427,068 | 381,561 |
Fair Value | Recurring basis | Residential | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 365,007 | 350,992 |
Fair Value | Recurring basis | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 62,061 | 30,569 |
Fair Value | Recurring basis | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 128,484 | 62,418 |
Fair Value | Recurring basis | Corporates | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 520,807 | 442,390 |
Fair Value | Recurring basis | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 90,498 | 96,004 |
Fair Value | Recurring basis | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 2,541 |
Fair Value | Recurring basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Cash and cash equivalents | 88,793 | 107,589 |
Total cash and investments | $ 304,048 | $ 264,121 |
Percentage of total cash and investments (percent) | 18.10% | 16.00% |
Fair Value | Recurring basis | Level 1 | Fixed Maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | $ 124,757 | $ 60,528 |
Fair Value | Recurring basis | Level 1 | U.S. government | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 124,757 | 60,528 |
Fair Value | Recurring basis | Level 1 | State and Municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 0 |
Fair Value | Recurring basis | Level 1 | Mortgage- Backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 0 |
Fair Value | Recurring basis | Level 1 | Residential | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 0 |
Fair Value | Recurring basis | Level 1 | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 0 |
Fair Value | Recurring basis | Level 1 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 0 |
Fair Value | Recurring basis | Level 1 | Corporates | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 0 |
Fair Value | Recurring basis | Level 1 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 90,498 | 96,004 |
Fair Value | Recurring basis | Level 1 | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 0 |
Fair Value | Recurring basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Cash and cash equivalents | 0 | 0 |
Total cash and investments | $ 1,351,794 | $ 1,379,373 |
Percentage of total cash and investments (percent) | 80.60% | 83.70% |
Fair Value | Recurring basis | Level 2 | Fixed Maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | $ 1,351,794 | $ 1,376,832 |
Fair Value | Recurring basis | Level 2 | U.S. government | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 0 |
Fair Value | Recurring basis | Level 2 | State and Municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 296,048 | 490,724 |
Fair Value | Recurring basis | Level 2 | Mortgage- Backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 424,211 | 381,561 |
Fair Value | Recurring basis | Level 2 | Residential | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 365,007 | 350,992 |
Fair Value | Recurring basis | Level 2 | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 59,204 | 30,569 |
Fair Value | Recurring basis | Level 2 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 110,836 | 62,266 |
Fair Value | Recurring basis | Level 2 | Corporates | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 520,698 | 442,281 |
Fair Value | Recurring basis | Level 2 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 0 |
Fair Value | Recurring basis | Level 2 | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 2,541 |
Fair Value | Recurring basis | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Cash and cash equivalents | 0 | 0 |
Total cash and investments | $ 21,379 | $ 3,748 |
Percentage of total cash and investments (percent) | 1.30% | 0.20% |
Fair Value | Recurring basis | Level 3 | Fixed Maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | $ 21,379 | $ 3,748 |
Fair Value | Recurring basis | Level 3 | U.S. government | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 0 |
Fair Value | Recurring basis | Level 3 | State and Municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 766 | 3,488 |
Fair Value | Recurring basis | Level 3 | Mortgage- Backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 2,857 | 0 |
Fair Value | Recurring basis | Level 3 | Residential | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 0 |
Fair Value | Recurring basis | Level 3 | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 2,857 | 0 |
Fair Value | Recurring basis | Level 3 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 17,647 | 152 |
Fair Value | Recurring basis | Level 3 | Corporates | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 109 | 108 |
Fair Value | Recurring basis | Level 3 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | 0 | 0 |
Fair Value | Recurring basis | Level 3 | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale securities: | $ 0 | $ 0 |
Fair Value - Level 3 Investment
Fair Value - Level 3 Investments (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018USD ($)securitySecurities | Mar. 31, 2017USD ($)Securities | |
Level 3 reconciliation | ||
Number of securities purchased and new issues | Securities | 8 | |
Number of securities, exchange of a rate bond for an unrated refund bond, transfers into level 3 | Securities | 1 | 1 |
Number of securities transferred from level 1 to level 2 | Securities | 0 | |
Level 3 | ||
Level 3 reconciliation | ||
Balance at beginning of period | $ 3,748 | $ 4,938 |
Included in net earnings | (10) | (30) |
Included in other comprehensive income | 41 | (6) |
Purchases | 20,576 | 6,259 |
Sales | (3,360) | (694) |
Settlements | (261) | (180) |
Transfers in | 645 | 329 |
Balance at end of period | $ 21,379 | 10,616 |
Number of positions (securities) | security | 11 | |
Level 3 | Non-binding broker quotes | ||
Level 3 reconciliation | ||
Number of positions (securities) | security | 6 | |
Level 3 | Nationally recognized pricing service | ||
Level 3 reconciliation | ||
Number of positions (securities) | security | 4 | |
State and Municipal | Level 3 | ||
Level 3 reconciliation | ||
Balance at beginning of period | $ 3,488 | 3,860 |
Included in net earnings | (10) | (31) |
Included in other comprehensive income | 3 | 15 |
Purchases | 0 | 0 |
Sales | (3,360) | (694) |
Settlements | 0 | 0 |
Transfers in | 645 | 329 |
Balance at end of period | 766 | 3,479 |
Asset-backed securities | Level 3 | ||
Level 3 reconciliation | ||
Balance at beginning of period | 152 | 412 |
Included in net earnings | 0 | 0 |
Included in other comprehensive income | 27 | 1 |
Purchases | 17,729 | 4,259 |
Sales | 0 | 0 |
Settlements | (261) | (88) |
Transfers in | 0 | 0 |
Balance at end of period | 17,647 | 4,584 |
Corporates | Level 3 | ||
Level 3 reconciliation | ||
Balance at beginning of period | 108 | 666 |
Included in net earnings | 0 | 1 |
Included in other comprehensive income | 1 | (22) |
Purchases | 0 | 2,000 |
Sales | 0 | 0 |
Settlements | 0 | (92) |
Transfers in | 0 | 0 |
Balance at end of period | 109 | 2,553 |
Mortgage- Backed Securities | ||
Level 3 reconciliation | ||
Balance at beginning of period | 0 | 0 |
Included in net earnings | 0 | 0 |
Included in other comprehensive income | 10 | 0 |
Purchases | 0 | |
Sales | 0 | |
Settlements | 0 | 0 |
Transfers in | 0 | |
Balance at end of period | $ 2,857 | $ 0 |
Fair Value - Fair Value of Fina
Fair Value - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities: | $ 1,497,930 | $ 1,539,653 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 88,793 | 107,589 |
Total cash and investments | 1,677,221 | 1,647,242 |
Long-term debt | 273,865 | 273,809 |
Carrying Value | Fixed Maturities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities: | 1,497,930 | 1,441,107 |
Carrying Value | Equity securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities: | 90,498 | 96,004 |
Carrying Value | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities: | 0 | 2,541 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 88,793 | 107,589 |
Total cash and investments | 1,677,221 | 1,647,242 |
Long-term debt | 286,330 | 290,824 |
Fair Value | Fixed Maturities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities: | 1,497,930 | 1,441,107 |
Fair Value | Equity securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities: | 90,498 | 96,004 |
Fair Value | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities: | $ 0 | $ 2,541 |
Investments - Textual (Details)
Investments - Textual (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sale of available-for-sale securities | $ 335,600 | $ 42,100 | |
Receivable for securities sold | 120 | 5,200 | $ 1,700 |
Gross realized gains | 2,900 | 700 | |
Gross realized losses | $ 1,600 | $ 200 |
Investments - Investments by ma
Investments - Investments by major category (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fixed Maturities | ||
Amortized Cost, Fixed Maturities | $ 1,512,939 | $ 1,439,878 |
Fixed maturities, Fair Value | 1,497,930 | 1,441,107 |
Equity Securities | ||
Equity securities, Amortized cost | 65,913 | 68,812 |
Equity securities, Fair Value | 90,498 | 96,004 |
Available-for-sale securities, Amortized Cost or Cost, Total | 1,512,939 | 1,511,232 |
Available-for-sale securities, Gross Unrealized Gains | 3,612 | 36,463 |
Available-for-sale securities, Gross Unrealized Losses | (18,621) | (8,042) |
Available-for-sale securities, Fair Value | 1,497,930 | 1,539,653 |
Available-for-sale securities, OTTI Recognized in Accumulated OCI | (72) | (1,564) |
Fixed Maturities | ||
Fixed Maturities | ||
Amortized Cost, Fixed Maturities | 1,512,939 | 1,439,878 |
Fixed maturities, Gross Unrealized Gains | 3,612 | 9,271 |
Fixed maturities, Gross Unrealized Losses | (18,621) | (8,042) |
Fixed maturities, Fair Value | 1,497,930 | 1,441,107 |
Fixed maturities, OTTI Recognized in Accumulated OCI | (72) | (1,564) |
U.S. government | ||
Fixed Maturities | ||
Amortized Cost, Fixed Maturities | 125,887 | 61,196 |
Fixed maturities, Gross Unrealized Gains | 58 | 0 |
Fixed maturities, Gross Unrealized Losses | (1,188) | (668) |
Fixed maturities, Fair Value | 124,757 | 60,528 |
Fixed maturities, OTTI Recognized in Accumulated OCI | 0 | 0 |
State and Municipal | ||
Fixed Maturities | ||
Amortized Cost, Fixed Maturities | 297,994 | 492,442 |
Fixed maturities, Gross Unrealized Gains | 1,031 | 2,768 |
Fixed maturities, Gross Unrealized Losses | (2,211) | (999) |
Fixed maturities, Fair Value | 296,814 | 494,211 |
Fixed maturities, OTTI Recognized in Accumulated OCI | 0 | (46) |
Mortgage- Backed Securities | ||
Fixed Maturities | ||
Amortized Cost, Fixed Maturities | 435,372 | 384,481 |
Fixed maturities, Gross Unrealized Gains | 693 | 1,830 |
Fixed maturities, Gross Unrealized Losses | (8,996) | (4,750) |
Fixed maturities, Fair Value | 427,068 | 381,561 |
Fixed maturities, OTTI Recognized in Accumulated OCI | (72) | (1,479) |
Residential | ||
Fixed Maturities | ||
Amortized Cost, Fixed Maturities | 372,319 | 353,277 |
Fixed maturities, Gross Unrealized Gains | 669 | 1,812 |
Fixed maturities, Gross Unrealized Losses | (7,981) | (4,097) |
Fixed maturities, Fair Value | 365,007 | 350,992 |
Fixed maturities, OTTI Recognized in Accumulated OCI | (72) | (1,479) |
Commercial | ||
Fixed Maturities | ||
Amortized Cost, Fixed Maturities | 63,053 | 31,204 |
Fixed maturities, Gross Unrealized Gains | 23 | 18 |
Fixed maturities, Gross Unrealized Losses | (1,016) | (653) |
Fixed maturities, Fair Value | 62,061 | 30,569 |
Fixed maturities, OTTI Recognized in Accumulated OCI | 0 | 0 |
Asset-backed securities | ||
Fixed Maturities | ||
Amortized Cost, Fixed Maturities | 129,010 | 62,552 |
Fixed maturities, Gross Unrealized Gains | 104 | 62 |
Fixed maturities, Gross Unrealized Losses | (630) | (196) |
Fixed maturities, Fair Value | 128,484 | 62,418 |
Fixed maturities, OTTI Recognized in Accumulated OCI | 0 | (8) |
Corporates | ||
Fixed Maturities | ||
Amortized Cost, Fixed Maturities | 524,676 | 439,208 |
Fixed maturities, Gross Unrealized Gains | 1,726 | 4,610 |
Fixed maturities, Gross Unrealized Losses | (5,595) | (1,429) |
Fixed maturities, Fair Value | 520,807 | 442,390 |
Fixed maturities, OTTI Recognized in Accumulated OCI | 0 | (31) |
Equity securities | ||
Equity Securities | ||
Equity securities, Amortized cost | 68,812 | |
Equity securities, Gross Unrealized Gains | 27,192 | |
Equity securities, Gross Unrealized Losses | 0 | |
Equity securities, Fair Value | 96,004 | |
Equity securities, OTTI Recognized in Accumulated OCI | 0 | |
Short-term investments | ||
Equity Securities | ||
Equity securities, Amortized cost | 0 | 2,541 |
Equity securities, Gross Unrealized Gains | 0 | 0 |
Equity securities, Gross Unrealized Losses | 0 | 0 |
Equity securities, Fair Value | 0 | 2,541 |
Equity securities, OTTI Recognized in Accumulated OCI | $ 0 | $ 0 |
Investments - Continuous loss p
Investments - Continuous loss position investments (Details) | 3 Months Ended | |
Mar. 31, 2018USD ($)security | Dec. 31, 2017USD ($)security | |
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | security | 996 | 722 |
Maximum | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Percentage of book value (percent) | 95.00% | |
Minimum | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized loss amount | $ 100,000 | |
Less than 12 Months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | security | 680 | 398 |
Less than 12 Months, Fair Value | $ 849,333,000 | $ 489,771,000 |
Less than 12 Months, Gross Unrealized Losses | $ (11,252,000) | $ (3,233,000) |
Unrealized Losses as Percentage of Cost | 1.30% | 0.70% |
Less than 12 Months | Fixed Maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | security | 680 | 398 |
Less than 12 Months, Fair Value | $ 849,333,000 | $ 489,771,000 |
Less than 12 Months, Gross Unrealized Losses | $ (11,252,000) | $ (3,233,000) |
Unrealized Losses as Percentage of Cost | 1.30% | 0.70% |
Less than 12 Months | U.S. government | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | security | 28 | 25 |
Less than 12 Months, Fair Value | $ 48,202,000 | $ 46,160,000 |
Less than 12 Months, Gross Unrealized Losses | $ (881,000) | $ (422,000) |
Unrealized Losses as Percentage of Cost | 1.80% | 0.90% |
Less than 12 Months | State and Municipal | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | security | 99 | 82 |
Less than 12 Months, Fair Value | $ 184,046,000 | $ 163,997,000 |
Less than 12 Months, Gross Unrealized Losses | $ (2,147,000) | $ (939,000) |
Unrealized Losses as Percentage of Cost | 1.20% | 0.60% |
Less than 12 Months | Mortgage- Backed Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | security | 278 | 156 |
Less than 12 Months, Fair Value | $ 174,756,000 | $ 85,419,000 |
Less than 12 Months, Gross Unrealized Losses | $ (2,427,000) | $ (483,000) |
Unrealized Losses as Percentage of Cost | 1.40% | 0.60% |
Less than 12 Months | Residential | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | security | 263 | 154 |
Less than 12 Months, Fair Value | $ 144,098,000 | $ 81,841,000 |
Less than 12 Months, Gross Unrealized Losses | $ (2,250,000) | $ (453,000) |
Unrealized Losses as Percentage of Cost | 1.50% | 0.60% |
Less than 12 Months | Commercial | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | security | 15 | 2 |
Less than 12 Months, Fair Value | $ 30,658,000 | $ 3,578,000 |
Less than 12 Months, Gross Unrealized Losses | $ (177,000) | $ (30,000) |
Unrealized Losses as Percentage of Cost | 0.60% | 0.80% |
Less than 12 Months | Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | security | 43 | 31 |
Less than 12 Months, Fair Value | $ 74,670,000 | $ 35,407,000 |
Less than 12 Months, Gross Unrealized Losses | $ (628,000) | $ (193,000) |
Unrealized Losses as Percentage of Cost | 0.80% | 0.50% |
Less than 12 Months | Corporates | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | security | 232 | 104 |
Less than 12 Months, Fair Value | $ 367,660,000 | $ 158,788,000 |
Less than 12 Months, Gross Unrealized Losses | $ (5,168,000) | $ (1,197,000) |
Unrealized Losses as Percentage of Cost | 1.40% | 0.70% |
Less than 12 Months | Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | security | 0 | |
Less than 12 Months, Fair Value | $ 0 | |
Less than 12 Months, Gross Unrealized Losses | $ 0 | |
Unrealized Losses as Percentage of Cost | 0.00% | |
Less than 12 Months | Short-term investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | security | 0 | 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% |
12 Months or More | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | security | 316 | 324 |
Unrealized Losses as Percentage of Cost | 3.90% | 2.40% |
12 Months or More, Fair Value | $ 179,380,000 | $ 193,309,000 |
12 Months of More, Gross Unrealized Losses | $ (7,369,000) | $ (4,809,000) |
12 Months or More | Fixed Maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | security | 316 | 324 |
Unrealized Losses as Percentage of Cost | 3.90% | 2.40% |
12 Months or More, Fair Value | $ 179,380,000 | $ 193,309,000 |
12 Months of More, Gross Unrealized Losses | $ (7,369,000) | $ (4,809,000) |
12 Months or More | U.S. government | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | security | 16 | 16 |
Unrealized Losses as Percentage of Cost | 2.40% | 1.70% |
12 Months or More, Fair Value | $ 12,743,000 | $ 14,368,000 |
12 Months of More, Gross Unrealized Losses | $ (307,000) | $ (246,000) |
12 Months or More | State and Municipal | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | security | 4 | 5 |
Unrealized Losses as Percentage of Cost | 1.40% | 0.60% |
12 Months or More, Fair Value | $ 4,573,000 | $ 10,529,000 |
12 Months of More, Gross Unrealized Losses | $ (64,000) | $ (60,000) |
12 Months or More | Mortgage- Backed Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | security | 280 | 288 |
Unrealized Losses as Percentage of Cost | 4.40% | 2.80% |
12 Months or More, Fair Value | $ 142,480,000 | $ 150,383,000 |
12 Months of More, Gross Unrealized Losses | $ (6,569,000) | $ (4,267,000) |
12 Months or More | Residential | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | security | 272 | 279 |
Unrealized Losses as Percentage of Cost | 4.60% | 2.80% |
12 Months or More, Fair Value | $ 119,273,000 | $ 127,317,000 |
12 Months of More, Gross Unrealized Losses | $ (5,730,000) | $ (3,644,000) |
12 Months or More | Commercial | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | security | 8 | 9 |
Unrealized Losses as Percentage of Cost | 3.50% | 2.60% |
12 Months or More, Fair Value | $ 23,206,000 | $ 23,066,000 |
12 Months of More, Gross Unrealized Losses | $ (839,000) | $ (623,000) |
12 Months or More | Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | security | 1 | 2 |
Unrealized Losses as Percentage of Cost | 0.10% | 0.20% |
12 Months or More, Fair Value | $ 1,458,000 | $ 1,561,000 |
12 Months of More, Gross Unrealized Losses | $ (2,000) | $ (3,000) |
12 Months or More | Corporates | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | security | 15 | 13 |
Unrealized Losses as Percentage of Cost | 2.30% | 1.40% |
12 Months or More, Fair Value | $ 18,126,000 | $ 16,468,000 |
12 Months of More, Gross Unrealized Losses | $ (427,000) | $ (232,000) |
12 Months or More | Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | security | 0 | |
Unrealized Losses as Percentage of Cost | 0.00% | |
12 Months or More, Fair Value | $ 0 | |
12 Months of More, Gross Unrealized Losses | $ 0 | |
12 Months or More | Short-term investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities with Unrealized Losses (positions) | security | 0 | 0 |
Unrealized Losses as Percentage of Cost | 0.00% | 0.00% |
12 Months or More, Fair Value | $ 0 | $ 0 |
12 Months of More, Gross Unrealized Losses | $ 0 | $ 0 |
Investments - Summary of unreal
Investments - Summary of unrealized gains and losses (Details) - security | Mar. 31, 2018 | Dec. 31, 2017 |
Investments, Debt and Equity Securities [Abstract] | ||
Number of positions held with unrealized gains (positions) | 302 | 496 |
Number of positions held with unrealized losses (positions) | 996 | 722 |
Number of positions held that individually exceed unrealized gains of $500,000 (positions) | 0 | 2 |
Number of positions held that individually exceed unrealized losses of $500,000 (positions) | 0 | 0 |
Percentage of positions held with unrealized gains that were investment grade (percent) | 84.00% | 81.00% |
Percentage of positions held with unrealized losses that were investment grade (percent) | 94.00% | 97.00% |
Percentage of fair value held with unrealized gains that were investment grade (percent) | 88.00% | 81.00% |
Percentage of fair value held with unrealized losses that were investment grade (percent) | 93.00% | 95.00% |
Investments - Unrealized losses
Investments - Unrealized losses by age and severity (Details) $ in Thousands | Mar. 31, 2018USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value of Securities with Unrealized Losses | $ 1,028,713 | |
Total Gross Unrealized Losses | (18,621) | |
Three months or less | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value of Securities with Unrealized Losses | 454,565 | |
Total Gross Unrealized Losses | (3,506) | |
Four months through six months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value of Securities with Unrealized Losses | 247,851 | |
Total Gross Unrealized Losses | (4,193) | |
Seven months through nine months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value of Securities with Unrealized Losses | 139,484 | |
Total Gross Unrealized Losses | (3,392) | |
Ten months through twelve months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value of Securities with Unrealized Losses | 7,432 | |
Total Gross Unrealized Losses | (161) | |
Greater than twelve months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value of Securities with Unrealized Losses | 179,380 | |
Total Gross Unrealized Losses | (7,369) | |
Less Than 5% as a Percentage of Amortized Cost or Cost | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses | (15,801) | [1] |
Less Than 5% as a Percentage of Amortized Cost or Cost | Three months or less | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses | (3,394) | [1] |
Less Than 5% as a Percentage of Amortized Cost or Cost | Four months through six months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses | (4,007) | [1] |
Less Than 5% as a Percentage of Amortized Cost or Cost | Seven months through nine months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses | (3,392) | [1] |
Less Than 5% as a Percentage of Amortized Cost or Cost | Ten months through twelve months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses | (161) | [1] |
Less Than 5% as a Percentage of Amortized Cost or Cost | Greater than twelve months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses | (4,846) | [1] |
5% - 10% as a Percentage of Amortized Cost or Cost | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses | (2,820) | [1] |
5% - 10% as a Percentage of Amortized Cost or Cost | Three months or less | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses | (112) | [1] |
5% - 10% as a Percentage of Amortized Cost or Cost | Four months through six months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses | (185) | [1] |
5% - 10% as a Percentage of Amortized Cost or Cost | Seven months through nine months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses | 0 | [1] |
5% - 10% as a Percentage of Amortized Cost or Cost | Ten months through twelve months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses | 0 | [1] |
5% - 10% as a Percentage of Amortized Cost or Cost | Greater than twelve months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses | (2,523) | [1] |
Greater Than 10% as a Percentage of Amortized Cost or Cost | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses | 0 | [1] |
Greater Than 10% as a Percentage of Amortized Cost or Cost | Three months or less | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses | 0 | [1] |
Greater Than 10% as a Percentage of Amortized Cost or Cost | Four months through six months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses | 0 | [1] |
Greater Than 10% as a Percentage of Amortized Cost or Cost | Seven months through nine months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses | 0 | [1] |
Greater Than 10% as a Percentage of Amortized Cost or Cost | Ten months through twelve months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses | 0 | [1] |
Greater Than 10% as a Percentage of Amortized Cost or Cost | Greater than twelve months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Gross Unrealized Losses | $ 0 | [1] |
[1] | As a percentage of amortized cost or cost. |
Investments - Change in unreali
Investments - Change in unrealized gains and losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized holding gains (losses) on securities arising during the period, pre-tax | $ (18,344) | $ 10,664 |
Unrealized holding gains (losses) on securities arising during the period, tax effects | 3,852 | (3,733) |
Unrealized holding gains (losses) on securities arising during period, net of tax | (14,492) | 6,932 |
Realized gains on securities sold, pre-tax | (1,363) | (519) |
Realized gains on securities sold, tax effects | (109) | 182 |
Realized gains on securities sold, net of tax | 409 | (337) |
Net impairment losses recognized in earnings | (1,588) | (10) |
Impairment loss recognized in earnings, tax effects | (334) | (3) |
Impairment loss recognized in earnings | 1,255 | 6 |
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax | (3,410) | 3,554 |
Change in unrealized gains (losses) on marketable securities, net, net of tax | (12,828) | 6,601 |
Fixed Maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized holding gains (losses) on securities arising during the period, pre-tax | (18,346) | 4,368 |
Realized gains on securities sold, pre-tax | (519) | (52) |
Net impairment losses recognized in earnings | 1,588 | 10 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Tax | (16,238) | 4,429 |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized holding gains (losses) on securities arising during the period, pre-tax | 6,294 | |
Realized gains on securities sold, pre-tax | 569 | |
Net impairment losses recognized in earnings | 0 | |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Tax | 5,725 | |
Short-term investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized holding gains (losses) on securities arising during the period, pre-tax | 1 | 3 |
Realized gains on securities sold, pre-tax | 1 | 1 |
Net impairment losses recognized in earnings | 0 | 0 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Tax | $ 0 | $ 1 |
Investments - Credit losses rol
Investments - Credit losses rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Credit losses on fixed maturity securities | ||
Beginning balance | $ 753 | $ 557 |
Percent change, Net realized gains on sales | 162.60% | |
Additions for: Previously impaired securities | $ 278 | 0 |
Additions for: Newly impaired securities | 7 | 10 |
Reductions for: Securities sold and paid down | (41) | (24) |
Ending balance | $ 996 | $ 542 |
Investments - Investments by co
Investments - Investments by contractual maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
One year or less, fair value | $ 34,850 | |
One year or less, amortized cost | 34,848 | |
After one year through five years, fair value | 649,692 | |
After one year through five years, amortized cost | 653,913 | |
After five years through ten years, fair value | 226,075 | |
After five years through ten years, amortized cost | 228,286 | |
After ten years, fair value | 31,761 | |
After ten years, amortized cost basis | 31,510 | |
Mortgage-backed, asset-backed and collateralized mortgage obligations, fair value | 555,552 | |
Mortgage-backed, asset-backed and collateralized mortgage obligations, amortized cost | 564,382 | |
Fair Value, Fixed maturities | 1,497,930 | $ 1,441,107 |
Amortized Cost, Fixed Maturities | 1,512,939 | $ 1,439,878 |
Securities with Unrealized Gains | ||
Schedule of Available-for-sale Securities [Line Items] | ||
One year or less, fair value | 9,473 | |
After one year through five years, fair value | 188,968 | |
After five years through ten years, fair value | 68,219 | |
After ten years, fair value | 31,179 | |
Mortgage-backed, asset-backed and collateralized mortgage obligations, fair value | 143,210 | |
Fair Value, Fixed maturities | 441,049 | |
Securities with Unrealized Losses | ||
Schedule of Available-for-sale Securities [Line Items] | ||
One year or less, fair value | 24,024 | |
After one year through five years, fair value | 453,537 | |
After five years through ten years, fair value | 157,207 | |
After ten years, fair value | 582 | |
Mortgage-backed, asset-backed and collateralized mortgage obligations, fair value | 393,363 | |
Fair Value, Fixed maturities | 1,028,713 | |
Securities with No Unrealized Gains or Losses | ||
Schedule of Available-for-sale Securities [Line Items] | ||
One year or less, fair value | 1,353 | |
After one year through five years, fair value | 7,187 | |
After five years through ten years, fair value | 649 | |
After ten years, fair value | 0 | |
Mortgage-backed, asset-backed and collateralized mortgage obligations, fair value | 18,979 | |
Fair Value, Fixed maturities | $ 28,168 |
Investments - Unrealized Gains
Investments - Unrealized Gains and Losses Relating to Equities (Details) - Equity securities $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Gain (Loss) on Investments [Line Items] | |
Net losses recognized during the period on equity securities | $ (726) |
Less: Net gains recognized during the period on equity securities sold | (1,881) |
Unrealized losses recognized during the period on equity securities still held at the reporting date | $ (2,607) |
Long-Term Debt - Long-term Debt
Long-Term Debt - Long-term Debt Less Unamortized Debt Issuance Costs (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2012 |
Debt Instrument [Line Items] | |||
Long-term debt less unamortized debt issuance costs | $ 273,865,000 | $ 273,809,000 | |
Senior Notes | Senior Notes Due 2022 | |||
Debt Instrument [Line Items] | |||
Principal | 275,000,000 | 275,000,000 | $ 275,000,000 |
Unamortized debt issuance costs | 1,135,000 | 1,191,000 | |
Long-term debt less unamortized debt issuance costs | $ 273,865,000 | $ 273,809,000 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Aug. 31, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2012 | |
Debt Instrument [Line Items] | ||||
Long-term debt, fair value | $ 289,831,000 | $ 290,824,000 | ||
US Treasury Note | ||||
Debt Instrument [Line Items] | ||||
Term of note used (years) | 10 years | |||
Effective percentage (percent) | 2.741% | |||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Credit facility capacity | $ 50,000,000 | |||
Term of revolving credit facility (years) | 3 years | |||
Senior Notes Due 2022 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Principal | $ 275,000,000 | $ 275,000,000 | $ 275,000,000 | |
Coupon rate (percent) | 5.00% | |||
Capitalized debt issuance costs | $ 2,200,000 | |||
Long-term debt, fair value | $ 286,300,000 | |||
10-year U.S. Treasury note | Senior Notes Due 2022 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Basis points | 1.24% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income tax reconciliation | ||
Earnings before income taxes | $ 24,937 | $ 14,868 |
Income taxes at statutory rate | 5,237 | 5,204 |
Dividends-received deduction | (25) | (79) |
Tax-exempt interest | (279) | (633) |
Other | (80) | (134) |
Provision for income taxes as shown on the Consolidated Statements of Earnings | $ 4,853 | $ 4,358 |
GAAP effective tax rate (percent) | 19.50% | 29.30% |
Additional Information (Details
Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |||
Income tax payments | $ 0 | $ 3,100 | |
Interest payments on debt | 6,875 | 6,875 | |
Interest payments on capital leases | 15 | $ 21 | |
Negative cash book balances | $ 49,200 | $ 49,700 |
Additional Information - Merger
Additional Information - Merger with Kemper Corporation (Details) - Kemper Corporation $ / shares in Units, $ in Billions | Feb. 13, 2018USD ($)$ / sharesshares | Feb. 12, 2018USD ($)employee$ / shares |
Business Acquisition [Line Items] | ||
Transaction value | $ | $ 1.4 | $ 1.3 |
Weighted average share price (usd per share) | $ 64.40 | |
Share price (usd per share) | 57.75 | |
Business acquisition, share price (usd per share) | $ 129 | $ 121.01 |
Entity Number of Employees | employee | 5,550 | |
Cash, mixed consideration (use per share) | $ 51.60 | |
Stock, mixed consideration (shares) | shares | 1.2019 | |
Cash, cash consideration (usd per share) | $ 129 | |
Stock, stock consideration (shares) | shares | 2.0031 | |
Percentage of ownership | 20.00% |
Insurance Reserves - Changes in
Insurance Reserves - Changes in the liability for unpaid losses and LAE (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Unpaid losses on known claims, balance at beginning of period | $ 264,470 | $ 238,412 |
IBNR losses, balance at beginning of period | 312,516 | 306,641 |
LAE, balance at beginning of period | 138,112 | 140,402 |
Total unpaid losses and LAE, balance at beginning of period | 715,098 | 685,455 |
Reinsurance recoverables, balance at beginning of period | (31,609) | (17,130) |
Unpaid losses and LAE, net of reinsurance recoverables, balance at beginning of period | 683,489 | 668,325 |
Loss and LAE incurred, current accident year | 273,408 | 277,044 |
Loss and LAE incurred, Prior accident years | (8,856) | (6,368) |
Total loss and LAE incurred | 264,552 | 270,676 |
Loss and LAE payments, current accident year | (89,106) | (96,869) |
Loss and LAE payments, prior accident years | (177,479) | (179,319) |
Total loss and LAE payments | (266,585) | (276,187) |
Unpaid losses and LAE, net of reinsurance recoverables, balance at end of period | 681,457 | 662,814 |
Add back reinsurance recoverables, balance at end of period | 19,549 | 16,133 |
Total unpaid losses and LAE, balance at end of period | 701,006 | 678,947 |
Unpaid losses on known claims, balance at end of period | 247,940 | 233,303 |
IBNR losses, balance at end of period | 318,281 | 307,932 |
LAE, balance at end of period | $ 134,786 | $ 137,712 |
Insurance Reserves - Narrative
Insurance Reserves - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Insurance [Abstract] | ||
Favorable reserve development related to prior accident years | $ 8,856 | $ 6,368 |
Accumulated Other Comprehensi53
Accumulated Other Comprehensive Income (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Before Tax [Abstract] | ||||
Accumulated other comprehensive income, beginning of period | $ 29,250,000 | $ 12,165,000 | ||
Effect on other comprehensive income | (16,240,000) | 10,143,000 | ||
Effect on other comprehensive income, including cumulative effect of change in accounting principle | (43,432,000) | 10,143,000 | ||
Accumulated other comprehensive income, end of period | (14,182,000) | 22,308,000 | ||
Income Tax [Abstract] | ||||
Accumulated other comprehensive income, beginning of period | (9,494,000) | (4,258,000) | ||
Cumulative Effect of New Accounting Principle in Period of Adoption, Tax | $ 9,064,000 | |||
Effect on other comprehensive income | 3,410,000 | (3,550,000) | ||
Effect on other comprehensive income, including cumulative effect of change in accounting principle | 12,474,000 | (3,550,000) | ||
Accumulated other comprehensive income, end of period | 2,980,000 | (7,808,000) | ||
Net [Abstract] | ||||
Accumulated other comprehensive income, beginning of period | 19,756,000 | 7,907,000 | ||
Cumulative Effect of New Accounting Principle in Period of Adoption, Net of Tax | (18,128,000) | |||
Other comprehensive (loss) income, net of tax | (12,829,000) | 6,593,000 | ||
Effect on other comprehensive income, including cumulative effect of change in accounting principle | (30,958,000) | 6,593,000 | ||
Accumulated other comprehensive income, end of period | (11,202,000) | 14,500,000 | ||
Accumulated Change Post-retirement Benefit Liability | ||||
Before Tax [Abstract] | ||||
Accumulated other comprehensive income, beginning of period | 829,000 | 1,033,000 | ||
Cumulative Effect of New Accounting Principle in Period of Adoption, Before Tax | 0 | $ 0 | ||
Effect on other comprehensive income | (2,000) | (13,000) | ||
Accumulated other comprehensive income, end of period | 827,000 | 1,020,000 | ||
Income Tax [Abstract] | ||||
Accumulated other comprehensive income, beginning of period | (290,000) | (361,000) | ||
Cumulative Effect of New Accounting Principle in Period of Adoption, Tax | 116,000 | 0 | ||
Effect on other comprehensive income | 0 | 4,000 | ||
Accumulated other comprehensive income, end of period | (174,000) | (357,000) | ||
Net [Abstract] | ||||
Accumulated other comprehensive income, beginning of period | 539,000 | 671,000 | ||
Cumulative Effect of New Accounting Principle in Period of Adoption, Net of Tax | 116,000 | 0 | ||
Other comprehensive (loss) income, net of tax | (1,000) | (8,000) | ||
Accumulated other comprehensive income, end of period | 653,000 | 663,000 | ||
Accumulated Unrealized Gains on Investments, Net and Other-than-Temporary Impairments | ||||
Before Tax [Abstract] | ||||
Accumulated other comprehensive income, beginning of period | 28,421,000 | 11,133,000 | ||
Cumulative Effect of New Accounting Principle in Period of Adoption, Before Tax | (27,192,000) | 0 | ||
Other comprehensive income (loss) before reclassification | (18,344,000) | 10,664,000 | ||
Effect on other comprehensive income | (16,238,000) | 10,155,000 | ||
Accumulated other comprehensive income, end of period | (15,009,000) | 21,288,000 | ||
Income Tax [Abstract] | ||||
Accumulated other comprehensive income, beginning of period | (9,204,000) | (3,896,000) | ||
Cumulative Effect of New Accounting Principle in Period of Adoption, Tax | 8,948,000 | 0 | ||
Other comprehensive income (loss) before reclassification | 3,852,000 | (3,733,000) | ||
Effect on other comprehensive income | 3,410,000 | (3,554,000) | ||
Accumulated other comprehensive income, end of period | 3,154,000 | (7,451,000) | ||
Net [Abstract] | ||||
Accumulated other comprehensive income, beginning of period | 19,217,000 | 7,236,000 | ||
Cumulative Effect of New Accounting Principle in Period of Adoption, Net of Tax | $ (18,244,000) | $ 0 | ||
Other comprehensive income (loss) before reclassification | (14,492,000) | 6,932,000 | ||
Other comprehensive (loss) income, net of tax | (12,828,000) | 6,601,000 | ||
Accumulated other comprehensive income, end of period | (11,855,000) | 13,837,000 | ||
Reclassification Adjustment for Other-than-Temporary Impairments | ||||
Before Tax [Abstract] | ||||
Reclassicification adjustment | 1,588,000 | 10,000 | ||
Income Tax [Abstract] | ||||
Reclassification adjustment | (334,000) | (3,000) | ||
Net [Abstract] | ||||
Reclassicification adjustment | 1,255,000 | 6,000 | ||
Accumulated Unrealized Gains on Investments, Net | ||||
Before Tax [Abstract] | ||||
Reclassicification adjustment | 518,000 | (519,000) | ||
Effect on other comprehensive income | (16,238,000) | 10,155,000 | ||
Income Tax [Abstract] | ||||
Reclassification adjustment | (109,000) | 182,000 | ||
Effect on other comprehensive income | 3,410,000 | (3,554,000) | ||
Net [Abstract] | ||||
Reclassicification adjustment | 409,000 | (337,000) | ||
Other comprehensive (loss) income, net of tax | $ (12,828,000) | $ 6,601,000 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 3 Months Ended |
Mar. 31, 2018vehicle / policyvehiclesegment | |
Segment Reporting [Abstract] | |
Number of operating segments | segment | 3 |
Number of vehicles in fleet in target businesses (or fewer) | vehicle | 10 |
Average vehicles per policy | vehicle / policy | 1.9 |
Segment Information - Revenues
Segment Information - Revenues by segment and reconciliation to Total revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Gross written premium | $ 421,592 | $ 370,702 |
Ceded reinsurance | (3,716) | (2,608) |
Net written premium | 417,876 | 368,094 |
Change in unearned premium | (63,889) | (26,726) |
Earned premium | 353,987 | 341,368 |
Installment and other fee income | 27,395 | 26,739 |
Net investment income | 9,786 | 8,695 |
Net realized gains on investments | (2,832) | 509 |
Other income | 430 | 275 |
Total revenues | 388,766 | 377,587 |
Personal Auto | ||
Segment Reporting Information [Line Items] | ||
Gross written premium | 370,193 | 324,352 |
Ceded reinsurance | (2,077) | (983) |
Net written premium | 368,116 | 323,369 |
Change in unearned premium | (57,817) | (20,983) |
Earned premium | 310,298 | 302,386 |
Installment and other fee income | 24,281 | 23,937 |
Commercial Vehicle | ||
Segment Reporting Information [Line Items] | ||
Gross written premium | 47,739 | 42,785 |
Ceded reinsurance | (1,379) | (1,412) |
Net written premium | 46,360 | 41,373 |
Change in unearned premium | (6,532) | (6,170) |
Earned premium | 39,828 | 35,203 |
Installment and other fee income | 3,114 | 2,802 |
Classic Collector | ||
Segment Reporting Information [Line Items] | ||
Gross written premium | 3,660 | 3,565 |
Ceded reinsurance | (260) | (213) |
Net written premium | 3,400 | 3,352 |
Change in unearned premium | 460 | 428 |
Earned premium | 3,860 | 3,780 |
Installment and other fee income | $ 0 | $ 0 |
Segment Information - Underwrit
Segment Information - Underwriting income and reconciliations to Earnings before income taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Statutory accident year underwriting income | $ 7,737 | $ 2,558 |
Statutory accident year underwriting income, Combined Ratio | 94.70% | 98.00% |
Bad debt charge-offs | $ 3,711 | $ 2,552 |
Favorable (unfavorable) development on prior accident years | 8,856 | 6,368 |
Statutory calendar year underwriting income | $ 20,304 | $ 11,478 |
Statutory calendar year underwriting income, Combined Ratio | 91.30% | 95.40% |
Statutory-to-GAAP underwriting income differences | $ 6,005 | $ 14 |
GAAP calendar year underwriting income | $ 26,309 | $ 11,492 |
GAAP calendar year underwriting income, Combined Ratio | 92.60% | 96.60% |
Net investment income | $ 9,786 | $ 8,695 |
Net realized gains on investments | (2,832) | 509 |
Other income | 430 | 275 |
Interest expense | (3,509) | (3,512) |
Corporate general and administrative expenses | (4,743) | (2,271) |
Other expenses | (505) | (322) |
Earnings before income taxes | 24,937 | 14,868 |
Personal Auto | ||
Segment Reporting Information [Line Items] | ||
Statutory accident year underwriting income | $ 6,311 | $ 1,594 |
Statutory accident year underwriting income, Combined Ratio | 94.80% | 98.30% |
Bad debt charge-offs | $ 3,363 | $ 2,251 |
Favorable (unfavorable) development on prior accident years | 10,555 | 6,986 |
Statutory calendar year underwriting income | $ 20,229 | $ 10,831 |
Statutory calendar year underwriting income, Combined Ratio | 90.50% | 95.20% |
Commercial Vehicle | ||
Segment Reporting Information [Line Items] | ||
Statutory accident year underwriting income | $ 812 | $ 629 |
Statutory accident year underwriting income, Combined Ratio | 95.20% | 95.30% |
Bad debt charge-offs | $ 392 | $ 291 |
Favorable (unfavorable) development on prior accident years | (1,362) | (874) |
Statutory calendar year underwriting income | $ (158) | $ 45 |
Statutory calendar year underwriting income, Combined Ratio | 97.80% | 97.10% |
Classic Collector | ||
Segment Reporting Information [Line Items] | ||
Statutory accident year underwriting income | $ 613 | $ 335 |
Statutory accident year underwriting income, Combined Ratio | 88.10% | 95.30% |
Bad debt charge-offs | $ (44) | $ 10 |
Favorable (unfavorable) development on prior accident years | (337) | 256 |
Statutory calendar year underwriting income | $ 233 | $ 602 |
Statutory calendar year underwriting income, Combined Ratio | 98.20% | 88.30% |