Affirmative Insurance Inactive 10-K31 Mar 142013 FY Annual reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information (USD $)	12 Months Ended
Document and Entity Information (USD $)	Dec. 31, 2013	Mar. 25, 2014	Jun. 30, 2013
Document Information [Line Items]	'	'	'
Document Type	'10-K	'	'
Amendment Flag	'false	'	'
Document Period End Date	31-Dec-13	'	'
Document Fiscal Year Focus	'2013	'	'
Document Fiscal Period Focus	'FY	'	'
Trading Symbol	'AFFM	'	'
Entity Registrant Name	'AFFIRMATIVE INSURANCE HOLDINGS INC	'	'
Entity Central Index Key	'0001282543	'	'
Current Fiscal Year End Date	'--12-31	'	'
Entity Well-known Seasoned Issuer	'No	'	'
Entity Current Reporting Status	'Yes	'	'
Entity Voluntary Filers	'No	'	'
Entity Filer Category	'Smaller Reporting Company	'	'
Entity Common Stock, Shares Outstanding	'	15,880,358	'
Entity Public Float	'	'	$3,796,185

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Assets	'	'
Available-for-sale securities, at fair value	$62,321	$47,748
Other invested assets	4,085	3,390
Cash and cash equivalents	44,569	38,176
Fiduciary and restricted cash	1,369	569
Accrued investment income	231	284
Premiums and fees receivable, net	53,442	29,431
Premium finance receivable, net	'	38,942
Commissions receivable	'	1,869
Receivable from reinsurers	165,819	120,601
Deferred acquisition costs, net asset	'	98
Income taxes receivable	'	150
Investment in real property, net	10,277	10,996
Property and equipment (net of accumulated depreciation of $53,222 for 2013 and $60,242 for 2012)	13,978	22,571
Other intangible assets (net of accumulated amortization of $7,765 for 2013 and 2012)	1,500	14,265
Prepaid expenses	7,126	6,318
Other assets (net of allowance for doubtful accounts of $7,739 for 2013 and $7,213 for 2012)	22,124	2,987
Total assets	386,841	338,395
Liabilities:	'	'
Reserves for losses and loss adjustment expenses	133,589	138,854
Unearned premium	81,598	72,861
Amounts due to reinsurers	64,910	27,286
Due to third-party carriers	7,221	2,617
Deferred revenue	6,763	6,117
Capital lease obligation	9,428	7,513
Debt	127,563	176,165
Income taxes payable	3,641	'
Deferred tax liability	'	3,178
Deferred acquisition costs, net liability	7,544	'
Other liabilities	47,476	37,058
Total liabilities	489,733	471,649
Stockholders' deficit:	'	'
Common stock, $0.01 par value; 75,000,000 shares authorized, 18,202,221 shares issued and 15,408,358 shares outstanding at December 31, 2013 and 2012	182	182
Additional paid-in capital	167,049	166,749
Treasury stock, at cost (2,793,863 shares at December 31, 2013 and 2012)	-32,910	-32,910
Accumulated other comprehensive loss	-1,654	-998
Retained deficit	-235,559	-266,277
Total stockholders' deficit	-102,892	-133,254
Total liabilities and stockholders' deficit	$386,841	$338,395

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Property and equipment, accumulated depreciation	$53,222	$60,242
Other intangible assets, accumulated amortization	7,765	7,765
Other assets, allowance for doubtful accounts	$7,739	$7,213
Common stock, par value	$0.01	$0.01
Common stock, shares authorized	75,000,000	75,000,000
Common stock, shares issued	18,202,221	18,202,221
Common stock, shares outstanding	15,408,358	15,408,358
Treasury stock, shares	2,793,863	2,793,863

CONSOLIDATED_STATEMENTS_OF_OPE

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	12 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Revenues	'	'	'
Net premiums earned	$165,683	$143,736	$176,549
Commission income, fees and managing general agent revenue	77,534	61,495	67,885
Net investment income	2,721	3,105	4,992
Net realized gains	61	922	107
Other income	125	503	265
Total revenues	246,124	209,761	249,798
Expenses	'	'	'
Net losses and loss adjustment expenses	147,818	111,858	137,657
Selling, general and administrative expenses	99,735	96,055	110,716
Depreciation and amortization	7,079	10,062	9,674
Total expenses	254,632	217,975	258,047
Operating loss	-8,508	-8,214	-8,249
Gain on sale of retail business	64,971	'	'
Loss on extinguishment of debt	-4,193	'	'
Loss on interest rate swaps	'	'	-2
Interest expense	-20,663	-19,743	-21,575
Goodwill and other intangible assets impairment	'	-23,692	-141,812
Income (loss) before income tax expense (benefit)	31,607	-51,649	-171,638
Income tax expense (benefit)	889	264	-9,040
Net income (loss)	$30,718	($51,913)	($162,598)
Basic income (loss) per common share:	'	'	'
Net income (loss)	$1.99	($3.37)	($10.55)
Diluted income (loss) per common share:	'	'	'
Net income (loss)	$1.97	($3.37)	($10.55)
Weighted average common shares outstanding:	'	'	'
Basic	15,408	15,408	15,408
Diluted	15,622	15,408	15,408

CONSOLIDATED_STATEMENTS_OF_COM

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Net income (loss)	$30,718	($51,913)	($162,598)
Other comprehensive loss:	'	'	'
Unrealized gains (losses) on available-for-sale investment securities arising during period	-607	117	-593
Reclassification adjustment for realized gains included in net income (loss)	-49	-888	-79
Other comprehensive loss, net	-656	-771	-672
Total comprehensive income (loss)	$30,062	($52,684)	($163,270)

CONSOLIDATED_STATEMENTS_OF_STO

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT (USD $)	Total	Common Stock	Additional Paid-in Capital	Treasury Stock	Accumulated Other Comprehensive Income (Loss)	Retained Deficit
In Thousands, except Share data	Total	Common Stock	Additional Paid-in Capital	Treasury Stock	Accumulated Other Comprehensive Income (Loss)	Retained Deficit
Beginning Balance at Dec. 31, 2010	'	$178	$165,776	($32,906)	$445	($51,766)
Beginning Balance (in shares) at Dec. 31, 2010	'	17,768,721	'	2,360,363	'	'
Issuance of restricted stock awards (in shares)	'	433,500	'	'	'	'
Issuance of restricted stock awards	'	4	'	'	'	'
Stock-based compensation	'	'	566	'	'	'
Unrealized loss on available-for-sale investment securities	'	'	'	'	-672	'
Net income (loss)	-162,598	'	'	'	'	-162,598
Acquisition of treasury stock (in shares)	'	'	'	433,500	'	'
Acquisition of treasury stock	'	'	'	-4	'	'
Ending Balance at Dec. 31, 2011	-80,977	182	166,342	-32,910	-227	-214,364
Ending Balance (in shares) at Dec. 31, 2011	'	18,202,221	'	2,793,863	'	'
Stock-based compensation	'	'	407	'	'	'
Unrealized loss on available-for-sale investment securities	'	'	'	'	-771	'
Net income (loss)	-51,913	'	'	'	'	-51,913
Ending Balance at Dec. 31, 2012	-133,254	182	166,749	-32,910	-998	-266,277
Ending Balance (in shares) at Dec. 31, 2012	'	18,202,221	'	2,793,863	'	'
Stock-based compensation	'	'	300	'	'	'
Unrealized loss on available-for-sale investment securities	'	'	'	'	-656	'
Net income (loss)	30,718	'	'	'	'	30,718
Ending Balance at Dec. 31, 2013	($102,892)	$182	$167,049	($32,910)	($1,654)	($235,559)
Ending Balance (in shares) at Dec. 31, 2013	'	18,202,221	'	2,793,863	'	'

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Cash flows from operating activities	'	'	'
Net income (loss)	$30,718	($51,913)	($162,598)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:	'	'	'
Depreciation and amortization	7,798	10,842	9,674
Stock-based compensation expense	369	390	446
Amortization of debt modification costs	1,314	435	409
Amortization of debt discount	4,944	4,126	4,468
Net realized gains from sales of available-for-sale securities	-49	-888	-79
Fair value gain on investment in hedge fund	-695	-492	-334
Gain on disposal of assets	-12	-34	-28
Gain on sale of retail business	-64,971	'	'
Amortization of premiums on investments, net	557	1,515	2,818
Provision for doubtful accounts	88	451	734
Loss on interest rate swaps	'	'	2
Proceeds from insurance recoveries	'	'	-212
Paid-in-kind interest	2,083	1,543	1,003
Loss on extinguishment of debt	4,193	'	'
Goodwill and other intangible assets impairment	'	23,692	141,812
Deferred tax asset valuation allowance	-13,303	12,708	19,703
Change in operating assets and liabilities:	'	'	'
Fiduciary and restricted cash	-800	1,909	1,388
Premiums, fees and commissions receivable, net	-4,007	-7,833	19,866
Reserves for losses and loss adjustment expenses	-5,265	-44,982	-68,248
Amounts due from reinsurers	-7,594	3,500	-1,839
Due to third-party carriers	8,193	-948	1,891
Premium finance receivable, net (related to our insurance premiums)	-3,932	-2,251	9,217
Deferred revenue	2,398	1,301	-3,078
Unearned premium	8,737	14,619	-33,960
Deferred acquisition costs, net	7,642	-6,562	6,925
Deferred taxes	10,125	-12,458	-28,870
Income taxes receivable	3,791	589	1,064
Other	4,543	-7,067	-923
Net cash used in operating activities	-3,135	-57,808	-78,749
Cash flows from investing activities	'	'	'
Proceeds from sale of retail business, net	84,270	'	'
Proceeds from sales of available-for-sale securities	8,964	37,447	70,247
Proceeds from maturities of available-for-sale securities	54,302	37,871	34,759
Purchases of available-for-sale securities	-69,004	-9,392	-21,076
Premium finance receivable, net (related to third-party insurance premiums)	-281	1,391	-4,156
Purchases of property and equipment	-917	-1,443	-2,703
Proceeds from insurance recoveries	'	30	'
Investment in real property, net	'	'	-591
Net cash provided by investing activities	77,334	65,904	76,480
Cash flows from financing activities	'	'	'
Principal payments under capital lease obligations	-2,943	-4,937	-5,001
Principal payments on mortgage security agreement	-1,248	'	'
Issuance of mortgage security agreement	4,809	'	'
Debt issuance costs paid	-860	'	-769
Bank overdrafts	-2,872	4,488	'
Acquisition of treasury stock	'	'	-4
Net cash provided by (used in) financing activities	-67,806	1,521	-15,536
Net increase (decrease) in cash and cash equivalents	6,393	9,617	-17,805
Cash and cash equivalents at beginning of year	38,176	28,559	46,364
Cash and cash equivalents at end of year	44,569	38,176	28,559
Supplemental disclosure of cash flow information:	'	'	'
Cash paid for interest	10,004	10,941	14,116
Cash paid for income taxes	390	336	371
Disclosure of non-cash information:	'	'	'
Capital lease obligation settled by transfer of securities (see Note 12)	'	7,851	'
Debt issuance costs	3,000	'	'
Effective January 2007	'	'	'
Cash flows from financing activities	'	'	'
Borrowings under senior secured credit facility	12,500	5,500	'
Principal payments on senior secured credit facility	-120,192	-3,530	-9,762
Effective September 2013	'	'	'
Cash flows from financing activities	'	'	'
Borrowings under senior secured credit facility	48,000	'	'
Principal payments on senior secured credit facility	($5,000)	'	'

General

General	12 Months Ended
General	Dec. 31, 2013
General	'
	1. General
	Affirmative Insurance Holdings, Inc. (the Company), was incorporated in Delaware in June 1998. The Company is a provider of non-standard personal automobile insurance policies for individual consumers in targeted geographic areas. The Company is a party to an agreement with an unaffiliated underwriting agency in the state of California and provides non-standard insurance policies written by a Texas county mutual. The Company is currently distributing insurance policies through approximately 5,200 independent agents or brokers in 7 states (Louisiana, Texas, California, Alabama, Illinois, Indiana and Missouri).
	Immaterial Correction of an Error
	The accompanying consolidated statement of cash flows for the year ended December 31, 2012 includes an immaterial correction of an error related to bank overdraft activity. In the prior year presentation, $4.5 million of cash provided from bank overdrafts was incorrectly presented as a use of cash rather than as a source of cash. The impact of this error on the statement of cash flows overstated the reported amount of cash used in financing activities by $9.0 million and understated cash used in the operating activities section by the same amount. The error had no impact on the previously reported net loss, earnings per share, balance sheet or stockholders’ deficit accounts and is properly reflected on the consolidated statement of cash flows for the year ended December 31, 2012 in the accompanying consolidated financial statements.

Going_Concern

Going Concern	12 Months Ended
	Dec. 31, 2013
Going Concern	'
	2. Going Concern

	The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern. This assumes continuing operations and the realization of assets and liabilities in the normal course of business.

	The Company incurred losses from operations over the last five years, including an operating loss of $8.5 million for the year ended December 31, 2013. Losses over this period were primarily due to underwriting losses, significant revenue declines, expenses declining less than the amount of revenue declines, and goodwill impairments. The losses from operations were the result of prior pricing issues in some states in which the Company has taken significant pricing and underwriting actions to address profitability, losses from states that the Company has exited, such as Florida and Michigan, and goodwill impairment charges as a result of such losses.

	The senior secured and subordinated credit facilities contain quarterly debt covenants that set forth, among other things, minimum risk-based capital requirements for the Company’s insurance subsidiaries as well as minimum cash flow requirements for the Company’s non-regulated businesses. As of December 31, 2013, the Company was in compliance with these covenants. However, it is probable the Company will not meet certain of these covenants in 2014. If the Company is unable to maintain compliance with the covenants or obtain a forbearance or waiver of any non-compliance or amend the agreements to change such covenants, the lenders could declare all amounts outstanding under the facilities to be immediately due and payable. If the Company’s lenders declare the amounts outstanding to be immediately due and payable, it would have a material adverse effect on the Company’s operations and the Company’s creditors and stockholders.

	The Company has taken actions to address its liquidity concerns including:



		•	Sale of retail business — On September 30, 2013, the Company sold its retail agency distribution business for $101.9 million plus the potential to receive an additional $20.0 million of cash proceeds. The Company already paid down the senior secured note by $5.0 million in November 2013 from the $20.0 million originally established in an escrow account on the sale date. The Company expects to pay down an additional $5.0 million of the senior secured note in April 2014 based on the risk-based capital measurement as of December 31, 2013. In addition, the purchase agreement was amended in March 2014 to suspend the measurement of risk-based capital as of March 31, 2014, which determines how the remaining escrow account is utilized until the measurement date as of June 30, 2014 (See Note 4).


		•	Debt refinancing — The Company used proceeds from the sale of the retail agency distribution business and two new debt arrangements to replace the existing senior secured credit facility. The Company’s new debt arrangement consists of a $40.0 million senior secured credit facility with a maturity date of March 30, 2016, and a $10.0 million subordinated secured credit facility with a maturity date of March 30, 2017 (See Note 11).


		•	Management has taken and will continue to pursue appropriate actions to improve the underwriting results; however, there can be no assurance that this will occur.


		•	Management has obtained sufficient quota-share reinsurance to allow the Company to maintain written premium capacity through 2014.
	The Company’s recent history of recurring losses from operations and its probable failure to comply with certain financial covenants in its senior secured and subordinated credit facilities in 2014 raises substantial doubt about the Company’s ability to continue as a going concern.

	The accompanying consolidated financial statements do not include any adjustments to reflect the possible future effects of this uncertainty on the recoverability or classification of recorded asset amounts or the amounts or classification of liabilities.

Summary_of_Significant_Account

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2013
Summary of Significant Accounting Policies	'

	3. Summary of Significant Accounting Policies

	Basis of Presentation • The consolidated financial statements include the accounts of Affirmative Insurance Holdings, Inc. and its subsidiaries (together the Company), and have been prepared in accordance with U.S. generally accepted accounting principles (GAAP). All material intercompany transactions and balances have been eliminated in consolidation.

	Certain prior year amounts have been reclassified to conform to the current presentation.

	Use of Estimates • The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. These estimates and assumptions are particularly important in determining reserves for losses and loss adjustment expenses, deferred policy acquisition costs, reinsurance receivables, valuation of investments, other intangible assets, and deferred income taxes.

	Cash and Cash Equivalents • Cash and cash equivalents are highly liquid investments with an original maturity of ninety days or less and include principally money market funds, repurchase agreements, and other bank deposits. Unless the right-of-setoff requirements have been met, bank overdrafts or negative book cash balances, if material, are recorded in other liabilities in the consolidated balance sheet. As of December 31, 2013 and 2012, $1.6 million and $4.5 million negative book cash balance was reflected in other liabilities in the consolidated balance sheets, respectively.



	Fiduciary and Restricted Cash • Fiduciary and restricted cash consists of non-operating certificates of deposit required by state regulations and/or under various agreements with third parties.

	Investments • Investment securities consist of debt securities, and are recorded at fair value on the consolidated balance sheet. These investments are classified as available-for-sale, based on management’s intent and ability to hold to maturity. Unrealized gains and losses are recorded in accumulated other comprehensive income (loss), a separate component of stockholders’ deficit. No income tax effect of unrealized gains and losses is reflected in other comprehensive income (loss) due to the Company carrying a full deferred tax valuation allowance. The Investment Committee periodically reviews investment portfolio results and evaluates strategies to maximize yields, to match maturity durations with anticipated needs, and to maintain compliance with investment guidelines.

	Fair value is based on quoted prices in active markets or third-party valuation sources when observable market prices are not available. Gains and losses realized on the disposition of investment securities are determined on the specific-identification basis and credited or charged to income. Premium and discount on investment securities are amortized and accreted using the interest method and charged or credited to investment income.

	Other invested assets is comprised of an investment in a hedge fund, which primarily invests in mortgage-backed securities with the strategy of seeking attractive yields on commercial and residential mortgage-backed securities. The Company elected the fair value option for its investment in the hedge fund and measures the fair value of this investment using the net asset value of the fund as reported by the fund manager. The financial statements of the hedge fund are subject to annual audits evaluating the net asset positions of the underlying investments. The fair value is included in the Level 3 fair value hierarchy. The Company records changes in the value of its other invested assets as a component of net investment income.

	Investments are considered to be impaired when a decline in fair value is judged to be other-than-temporary. On a quarterly basis, the Company considers available quantitative and qualitative evidence in evaluating potential impairment of its investments. If the cost of an investment exceeds its fair value, the Company evaluates, among other factors, general market conditions, the duration and extent to which the fair value is less than cost. If the fair value of a debt security is less than its amortized cost basis, an other-than-temporary impairment may be triggered in circumstances where (1) an entity has an intent to sell the security, (2) it is more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis, or (3) the entity does not expect to recover the entire amortized cost basis of the security (that is, a credit loss exists). Other-than-temporary impairments are separated into amounts representing credit losses which are recognized in earnings and amounts related to all other factors which are recognized in other comprehensive income (loss). The Company also considers potential adverse conditions related to the financial health of the issuer based on rating agency actions.

	Premium Finance Receivable • Prior to the sale of the retail agency distribution business on September 30, 2013, the Company recognized interest and origination fees from finance receivables over the term of the finance contract. Late fee revenue was recognized when received. Premium finance receivables were secured by the underlying unearned policy premiums for which the Company obtained assignment from the policyholder in the event of non-payment. When a payment became past due, the Company canceled the underlying policy with the insurance carrier and received the unearned premium to clear unpaid principal and interest. The loan was closed by writing off any uncollected amounts or refunding any overpayment to the customer.

	Amounts Due from/to Reinsurers • The Company collects premiums from insureds and after deducting its authorized commissions, the Company remits these premiums to the appropriate reinsurance companies. The Company’s obligation to remit these premiums is recorded as amounts due reinsurers in its consolidated balance sheet. The Company records the amounts it expects to receive from reinsurers for paid and unpaid losses as an asset on its consolidated balance sheet.

	Deferred Policy Acquisition Costs, net of ceding commission • Deferred policy acquisition costs represent the deferral of expenses that the Company incurs in the successful acquisition of new business or renewal of existing insurance policies. Policy acquisition costs, consisting of primarily commissions and premium taxes, net of ceding commission income, are deferred and charged against income ratably over the terms of the related policies. The Company regularly reviews the categories of acquisition costs that are deferred and assesses the recoverability of this asset. A premium deficiency, and a corresponding charge to income, is recognized if the sum of the expected losses and loss adjustment expenses, unamortized acquisition costs, and maintenance costs exceeds related unearned premiums and anticipated investment income. Amounts received as ceding commissions on reinsurance contracts are recorded as reductions of deferred acquisition costs and are recognized into income ratably as the related ceded premium is earned. Amortization of deferred policy acquisition costs is recorded in selling, general and administrative expenses in the consolidated statement of operations.

	Property and Equipment, Net • Property and equipment is stated at cost, less accumulated depreciation. Depreciation is recognized using the straight-line method over the estimated useful lives of the Company’s assets, typically ranging from three to eight years. Leasehold improvements are depreciated over the shorter of the estimated useful lives of the assets or the remainder of the lease term.

	Other Intangible Assets, Net • Other intangible assets with indefinite useful lives are tested for impairment annually as of September 30 or more frequently if events or changes in circumstances indicate that the assets might be impaired.

	Identifiable intangible assets consist of state insurance company licenses and brand names prior to the sale of the retail agency distribution business on September 30, 2013. The Company reviews such intangibles for impairment whenever an impairment indicator exists. Management continually monitors events and changes in circumstances that could indicate carrying amounts of long-lived assets, including intangible assets, may not be recoverable. When such events or changes in circumstances occur, management assesses recoverability by determining whether the carrying value of such assets will be recovered through the undiscounted expected future cash flows. If the future undiscounted cash flows are less than the carrying amount of these assets, an impairment loss is recognized based on the excess of the carrying amount over the fair value of the assets.

	Variable Interest Entities • Affirmative Insurance Holdings Statutory Trust I (“Trust I”), is an unconsolidated trust subsidiary, for the sole purpose of issuing $30.0 million trust preferred securities in 2004. Trust I used the proceeds from the sale of these securities and the Company’s initial capital contribution to purchase $30.9 million of subordinated debt securities from the Company. The debt securities are the sole assets of Trust I, and the payments under the debt securities are the sole revenues of Trust I. The Company’s initial capital contribution consisted of the purchase of 928,000 common securities issued by Trust I for $928,000, which represented 3% of the total dollar amount of subordinated debentures issued.

	Affirmative Insurance Holdings Statutory Trust II (“Trust II”), is an unconsolidated trust subsidiary, for the sole purpose of issuing $25.0 million trust preferred securities in 2005. Trust II used the proceeds from the sale of these securities and the Company’s initial capital contribution to purchase $25.8 million of subordinated debt securities from the Company. The debt securities are the sole assets of Trust II, and the payments under the debt securities are the sole revenues of Trust II. The Company’s initial capital contribution consisted of the purchase of 774,000 common securities issued by Trust II for $774,000, which represented 3% of the total dollar amount of subordinated debentures issued.



	The investment in the common securities totaling $1.7 million is reflected in other assets in the Company’s consolidated balance sheets. The subordinated debentures totaling $56.7 million are included in debt in the Company’s consolidated balance sheets.

	Management evaluates on an ongoing basis the Company’s investments in Trust I and II (collectively the “Trusts”) and continue to conclude that, while the Trusts continue to be variable interest entities (“VIE’s”), the Company is not the primary beneficiary. Therefore, the Trusts are not included in the Company’s consolidated financial statements.

	Reserves for Losses and Loss Adjustment Expenses • The Company maintains reserves for the estimated ultimate liability for unpaid losses and loss adjustment expenses related to incurred claims and estimates of unreported claims. The estimation of the ultimate liability for unpaid losses and loss adjustment expenses is based on projections developed by the Company’s actuaries using analytical methodologies commonly used in the property-casualty insurance industry. Liabilities for unpaid claims and for expenses of investigation and adjustment of unpaid claims are based on: (1) the accumulation of estimates of individual claims for losses reported prior to the close of the accounting period; (2) estimates received from ceding companies, reinsurers and insurance pools and associations; (3) estimates of unreported losses based on past experience; (4) estimates based on past experience of expenses for investigating and adjusting claims; and (5) estimates of subrogation and salvage collections. Management periodically adjusts the losses and loss adjustment expense reserves for changes in product mix, underwriting standards, loss cost trends and other factors. Losses and loss adjustment expense reserves may also be impacted by factors such as the rate of inflation, claims settlement patterns, litigation and legislative and regulatory activities. Unpaid losses and loss adjustment expenses have not been reduced for amounts recoverable from reinsurers. Changes in estimates of liabilities for unpaid losses and loss adjustment expenses are reflected in the consolidated statement of operations in the period in which determined. Ultimately, the actual losses and loss adjustment expenses may differ materially from recorded estimates.

	Treasury Stock • Treasury stock purchases are accounted for using the cost method, whereby the entire cost of the acquired stock is recorded as treasury stock. When reissued, shares of treasury stock will be removed from the treasury stock account at the average purchase price per share of the aggregate treasury shares held.

	Revenue Recognition • Premium income — Premiums, net of premiums ceded, is earned over the life of the underlying policies. Unearned premiums represent that portion of premiums written that are applicable to the unexpired terms of policies in force. Premiums receivable are recorded net of an estimated allowance for uncollectible amounts.

	Commission income — Represents revenues from the retail agency business prior to being sold on September 30, 2013. Commission income and related policy fees, written for third-party insurance companies, are recognized, net of an allowance for estimated policy cancellations, at the date the customer is initially billed or as of the effective date of the insurance policy, whichever is later. Commissions on premium endorsements are recognized when premiums are processed. The allowance for estimated third-party cancellations is periodically evaluated and adjusted as necessary.

	Profit-sharing commissions, which enable the Company to collect commission income and fees in excess of provisional commissions, are recorded when it is probable that estimates of loss ratios will be below the levels stated in the Company’s agency contracts. Provisional commissions may be reduced when it is probable that estimates of loss ratios will be above the levels stated in the related agency contract.

	Fee Income — Policy origination fees and installment fees compensate the Company for the costs of policy administration and providing installment payment plans. Policy origination fees are recognized over the underlying policy terms. Other fees are recognized when services are provided.



	Agency Fees — Represents revenues from the retail agency business prior to being sold on September 30, 2013. These fees compensated the Company for the costs of policy cancellation, policy rewrite and reinstatement and were recognized when the services were provided. Premium finance and origination fees were recognized over the term of the finance contracts.

	Managing general agent revenue — Revenues earned for business produced for a Texas county mutual insurance agency beginning January 1, 2013. The Company receives compensation for distribution and underwriting services and providing claims handling on the business. Revenue for distribution and underwriting services are recognized, net of an allowance for estimated policy cancellations, at the date the customer is initially billed or as of the effective date of the insurance policy, whichever is later. Claims handling revenue is recognized as the services are provided.

Accounting and Reporting for Reinsurance • Income and expense on reinsurance contracts are recognized principally over the term of the reinsurance contracts or until the reinsurers maximum liability is exhausted, whichever comes first. Reinsurance contracts do not relieve the Company from its obligations to policyholders. The Company continually monitors reinsurers to minimize the exposure to significant losses from reinsurer insolvencies. The Company only cedes risks to reinsurers whom it believes to be financially sound.

Stock-Based Compensation • Compensation cost is measured based on the grant-date fair value of an award utilizing the assumptions discussed in Note 17. Compensation cost is recognized for financial reporting purposes on a straight-line basis over the period in which the employee is required to provide service in exchange for the award.

Income Taxes • The Company accounts for income taxes under the asset and liability method. Under this method, deferred income taxes are recognized for temporary differences between the financial statement and tax return bases of assets and liabilities. Recorded amounts are adjusted to reflect changes in income tax rates for the period in which the change is enacted. Any resulting future tax benefits are recognized to the extent that realization of such benefits is more likely than not, and a valuation allowance is established for any portion of a deferred tax asset that management believes will not be realized. While the Company typically does not incur significant interest or penalties on income tax liabilities, the Company’s policy is to classify such amounts as income tax expense on the consolidated statement of operations.

Net Income (Loss) Per Common Share • Basic net income (loss) per common share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the year. Diluted net income (loss) per share is computed by giving effect to the potential dilution that could occur if securities or other contracts to issue common shares were exercised and converted into common shares during the year.

Fair Value of Financial Instruments • The Company determines fair value for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value, the Company considers the principal or most advantageous market in which the Company would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions and credit risk.

Segment Reporting • The Company’s operations consist of designing, underwriting and servicing non-standard personal automobile insurance policies. The Company is a holding company, with no operating revenues and only interest expense on corporate debt. The Company’s subsidiaries consist of several types of legal entities: insurance companies, an underwriting agency and a service company from which all employees are paid. Insurance subsidiaries possess the certificates of authority and capital necessary to transact insurance business and issue policies, but they rely on both affiliated and an unaffiliated underwriting agency to design, distribute and service those policies. Underwriting agencies primarily design, distribute and service policies issued or reinsured by the Company’s insurance subsidiaries and that are distributed by independent agents. Given the homogeneity of the Company’s products, the regulatory environments in which the Company operates, the nature of the Company’s customers and distribution channels, Company management monitors, controls and manages the business as an integrated entity offering non-standard personal automobile insurance products through multiple distribution channels.

Statutory Accounting Practices • The Company’s insurance subsidiaries are required to report results of operations and financial position to insurance regulatory authorities based upon statutory accounting principles (SAP). The more significant differences between SAP and GAAP are as follows:


	•	Under SAP, all sales and other policy acquisition costs are expensed as they are incurred rather than capitalized and amortized over the expected life of the policy as required by GAAP. The immediate charge off of sales and acquisition expenses and other conservative valuations under SAP generally cause a lag between the sale of a policy and the emergence of reported earnings. Since this lag can reduce income from operations on a SAP basis, it can have the effect of reducing the amount of funds available for dividends from insurance companies.


	•	Under SAP, certain assets, including deferred taxes, are designated as “non-admitted” and are charged directly to unassigned surplus, whereas under GAAP, such assets are included in the consolidated balance sheet net of an appropriate valuation allowance.


	•	SAP requires available-for-sale investments generally be carried at amortized book value while GAAP requires available-for-sale investments be carried at fair value.

Recently Adopted Accounting Standards • Accounting Standards Update (ASU) 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, requires disclosure of amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present either on the face of the statement of operations or in the notes to the financial statements, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income, but only if the amount reclassified is required to be reclassified to net income in its entirety in the same reporting period. This ASU is effective prospectively for annual and interim periods beginning after December 15, 2012. The adoption of this standard did not have an impact on our consolidated financial position, results of operations or cash flows.

ASU 2012-02, Intangibles-Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment, provides companies with the option to assess qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that the indefinite-lived intangible asset is impaired. If the Company concludes that it is more likely than not that the asset is impaired, it is required to determine the fair value of the intangible asset and perform a quantitative impairment test by comparing the fair value with the carrying value in accordance with Topic 350. If the Company concludes otherwise, no further quantitative assessment is required. This standard was effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. The adoption of this standard did not have a material impact on our consolidated financial position, results of operations or cash flows.

Sale_of_the_Retail_Business

Sale of the Retail Business	12 Months Ended
Sale of the Retail Business	Dec. 31, 2013
Sale of the Retail Business	'



	4. Sale of the Retail Business

	On September 30, 2013, the Company sold its retail agency distribution business to Confie Seguros (Confie). The Company’s retail agency distribution business consisted of 195 retail locations in Louisiana, Alabama, Texas, Illinois, Indiana, Missouri, Kansas, South Carolina and Wisconsin and two premium finance companies (the retail business). Proceeds from the sale were $101.9 million in cash with the potential to receive an additional $20.0 million of cash proceeds. The cash proceeds included $20.0 million placed in an escrow account which is included in other assets on the consolidated balance sheet. The funds held in escrow will, dependent upon the risk-based capital status of Affirmative Insurance Company (AIC), be utilized to either infuse capital into AIC or pay down debt. The risk-based capital measurement will be made quarterly through June 30, 2014. As of the first measurement date of September 30, 2013, AIC met the risk-based capital target and in November 2013, $5.0 million was released from the escrow account and was used to pay down the senior secured credit facility. The Company expects to pay down an additional $5.0 million of the senior secured credit facility in April 2014 based on the risk-based capital measurement as of December 31, 2013. In addition, the purchase agreement was amended in March 2014 to suspend the measurement of risk-based capital as of March 31, 2014, which determines how the remaining escrow account is utilized until the measurement date as of June 30, 2014. The initial cash proceeds also included a preliminary working capital adjustment of $1.8 million as of September 30, 2013. Upon review by the purchaser, an additional working capital adjustment of $0.1 million was received in the fourth quarter of 2013.

	The Company may receive up to an additional $20.0 million of proceeds that could be used to pay down debt or infuse capital into AIC. The additional proceeds are contingent on AIC meeting certain risk-based capital thresholds and maintaining the obligations of the distribution agreement. The risk-based capital measurement begins as of June 30, 2014 and can be achieved quarterly through December 31, 2015. In the best case scenario, the Company would receive an additional $10.0 million of proceeds based on the risk-based capital measurement as of June 30, 2014, and an additional $10.0 million of proceeds based on the measurement as of September 30, 2014. These contingent proceeds will be recognized in future periods as risk-based capital measurement thresholds are achieved.

	In connection with the sale of the retail business, the Company also entered into a distribution agreement pursuant to which the purchaser will continue to produce insurance business for the Company’s insurance subsidiaries at least until the earlier of December 15, 2015, or when Confie’s obligation to pay the contingent proceeds pursuant to the purchase agreement is discharged. Among other things, the distribution agreement sets forth the terms and conditions under which Confie will produce insurance business for the Company after the closing and includes terms designed to preserve the volume of business produced by the retail business for the Company as of the closing. In turn, the distribution agreement obligates the Company’s insurance subsidiaries to maintain reinsurance and their underwriting capacity in the markets where the retail business operates for the duration of the distribution agreement, including certain restrictions on increasing fees and rates beyond certain thresholds without Confie’s consent. Additionally, Confie will continue to provide premium financing capability for the Company’s policies, including for business written through other independent agencies in certain markets, and the parties will share equally in any increased profits from premium financing other independent agency business during the term of the distribution agreement. Due to the Company’s significant continuing involvement as the underwriter for business produced by the retail agency distribution business and the ongoing premium finance arrangements, the operating activities of the retail agency distribution are not reflected as discontinued operations as of December 31, 2013.



	The Company realized a pretax gain on the sale of $65.0 million. The Company’s consolidated results of operations include the retail business’s results of operations through the date of the sale, September 30, 2013. The net assets sold consisted of (in thousands):




		September 30,
		2013
	Assets
	Cash and cash equivalents	$	2,529
	Premium finance and commission receivable		47,847
	Other intangible assets		12,764
	Other assets		3,709

	Total Assets	$	66,849

	Liabilities
	Due to third-party carriers	$	24,456
	Other liabilities		5,419

	Total Liabilities		29,875
	Net Assets	$	36,974


	Intercompany balances between the Company and the retail subsidiaries sold which were previously eliminated are now reflected in the consolidated financial statements gross, including premiums and fees receivable and due to third-party carriers of $20.9 million.

Availableforsale_Investment_Se

Available-for-sale Investment Securities	12 Months Ended
Available-for-sale Investment Securities	Dec. 31, 2013
Available-for-sale Investment Securities	'

	5. Available-for-sale Investment Securities

	The Company’s available-for-sale investment securities are carried at fair value with unrealized gains and losses reported in accumulated other comprehensive income (loss), a separate component of stockholders’ deficit. No income tax effect of unrealized gains and losses is reflected in other comprehensive income (loss) due to the Company carrying a full deferred tax valuation allowance. Gains and losses realized on the disposition of investment securities are determined on the specific-identification basis and credited or charged to income at the time of disposal.



	Amortized Cost and Fair Value

	The amortized cost, gross unrealized gains (losses), and estimated fair value of the Company’s available-for-sale securities at December 31, 2013 and 2012, were as follows (in thousands):



			Amortized			Gross			Gross				Estimated
			Cost			Unrealized			Unrealized				Fair Value
						Gains			Losses
	December 31, 2013
	U.S. Treasury and government agencies		$	17,830		$	55		$	(51	)		$	17,834
	Mortgage-backed securities			4,023			4			(47	)			3,980
	States and political subdivisions			3,265			68			—				3,333
	Corporate debt securities			32,458			135			(310	)			32,283
	Certificates of deposit			4,860			32			(1	)			4,891

	Total		$	62,436		$	294		$	(409	)		$	62,321

	December 31, 2012
	U.S. Treasury and government agencies		$	11,354		$	112		$	—			$	11,466
	States and political subdivisions			3,535			107			(3	)			3,639
	Corporate debt securities			19,108			262			(1	)			19,369
	Certificates of deposit			13,210			65			(1	)			13,274

	Total		$	47,207		$	546		$	(5	)		$	47,748


	The Company had $10.0 million and $0 million of unsettled investment purchases as of December 31, 2013, and 2012, respectively.

	For additional disclosures regarding methods and assumptions used in estimating fair values of these securities see Note 23.

	Maturities

	Expected maturities may differ from contractual maturities because certain borrowers may have the right to call or prepay obligations with or without penalties. The Company’s amortized cost and estimated fair values of fixed-income securities at December 31, 2013 by contractual maturity were as follows (in thousands):



			Amortized			Estimated Fair
			Cost			Value
	Fixed maturities:
	Due in one year or less		$	21,750		$	21,819
	Due after one year through five years			30,686			30,618
	Due after five years through ten years			5,977			5,904
	Mortgage-backed securities			4,023			3,980

	Total		$	62,436		$	62,321




	Net Investment Income

	Major categories of net investment income for the years ended December 31 were as follows (in thousands):



		2013			2012			2011
Available-for-sale investment securities		$	769		$	1,520		$	3,818
Rental income from investment in real property			2,390			2,410			2,388
Income from investment in hedge fund			695			492			334
Cash and cash equivalents			155			3			—

			4,009			4,425			6,540
Less investment expense			(1,288	)		(1,320	)		(1,548	)

Net investment income		$	2,721		$	3,105		$	4,992


Gross Realized Gains and Losses

Gross realized gains and losses on available-for-sale investments for the years ended December 31 were as follows (in thousands):



		2013			2012			2011
Gross gains		$	58		$	1,025		$	267
Gross losses			(9	)		(137	)		(188	)

Total		$	49		$	888		$	79


Unrealized Losses

The following table summarizes the Company’s available-for-sale securities in an unrealized loss position at December 31, 2013 and 2012, the estimated fair value and amount of gross unrealized losses, aggregated by investment category and length of time those securities have been continuously in an unrealized loss position (in thousands):



		December 31, 2013
		Less Than Twelve						Twelve Months or							Total
		Months						Greater							Total
		Estimated			Gross			Estimated				Gross			Estimated		Gross
		Fair			Unrealized			Fair				Unrealized			Fair		Unrealized
		Value			Losses			Value				Losses			Value		Losses
U.S. Treasury and government agencies		$	13,220		$	(51	)	$	—			$	—		$	13,220	$	(51	)
Mortgage-backed securities			3,403			(47	)		—				—			3,403		(47	)
Corporate debt securities			23,410			(310	)		—				—			23,410		(310	)
Certificates of deposit			849			(1	)		—				—			849		(1	)

Total		$	40,882		$	(409	)	$	—			$	—		$	40,882	$	(409	)




		December 31, 2012
		Less Than Twelve						Twelve Months or							Total
		Months						Greater							Total
		Estimated			Gross			Estimated				Gross			Estimated		Gross
		Fair			Unrealized			Fair				Unrealized			Fair		Unrealized
		Value			Losses			Value				Losses			Value		Losses
States and political subdivisions		$	—		$	—		$	71			$	(3	)	$	71	$	(3	)
Corporate debt securities			979			(1	)		—				—			979		(1	)
Certificates of deposit			499			(1	)		—				—			499		(1	)

Total		$	1,478		$	(2	)	$	71			$	(3	)	$	1,549	$	(5	)




The Company’s portfolio contained approximately 53 and 16 individual investment securities that were in an unrealized loss position as of December 31, 2013 and 2012, respectively.

The unrealized losses at December 31, 2013 were primarily attributable to changes in market interest rates since the securities were purchased. Management systematically evaluates investment securities for other-than-temporary declines in fair value on a quarterly basis. Investments are considered to be impaired when a decline in fair value is judged to be other-than-temporary. On a quarterly basis, the Company considers available quantitative and qualitative evidence in evaluating potential impairment of its investments. If the cost of an investment exceeds its fair value, the Company evaluates, among other factors, general market conditions, duration and extent to which the fair value is less than cost. If the fair value of a debt security is less than its amortized cost basis, an other-than-temporary impairment may be triggered in circumstances where (1) an entity has an intent to sell the security, (2) it is more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis, or (3) the entity does not expect to recover the entire amortized cost basis of the security (that is, a credit loss exists). Other-than-temporary impairments are separated into amounts representing credit losses which are recognized in earnings and amounts related to all other factors which are recognized in other comprehensive income (loss). The Company also considers potential adverse conditions related to the financial health of the issuer based on rating agency actions. As a result of management’s quarterly analyses for the years ended December 31, 2013 and 2012, no individual securities were considered other-than-temporarily impaired.

Restricted Investments

As of December 31, 2013, certificates of deposit in the amount of $4.9 million were pledged as collateral associated with the capital lease related to certain computer software, software licenses, and hardware used in the Company’s insurance operations. See Note 12 for discussion of the associated capital lease obligation.

At December 31, 2013 and 2012, investments in fixed-maturity securities with an approximate carrying value of $6.9 million and $7.1 million, respectively, were on deposit with regulatory authorities as required by insurance regulations.

Reinsurance

Reinsurance	12 Months Ended
Reinsurance	Dec. 31, 2013
Reinsurance	'

	6. Reinsurance

	In the ordinary course of business, the Company places reinsurance with other insurance companies in order to provide greater diversification of its business and limit the potential for losses arising from large risks. The Company’s reinsurance agreements provide for recovery of a portion of losses and loss expenses from reinsurers and reinsurance recoverables are recorded as assets. The Company is liable if the reinsurers are unable to satisfy their obligations under the agreements. The Company seeks to cede business to reinsurers generally with a financial strength rating of “A-” or better.

	Quota-share agreements

	During 2011, the Company entered into a quota-share reinsurance agreement with a third-party reinsurance company effective January 1, 2011 ceding 28% of gross written premium in all states other than Michigan through December 31, 2011. This contract terminated on January 1, 2012 on a cut-off basis and resulted in the return of $11.8 million of ceded unearned premium, net of $4.3 million of deferred ceding commissions. Written premiums ceded under this agreement totaled $50.6 million.



	Also in 2011, the Company entered into a quota-share agreement with a different third-party reinsurance company under which the Company ceded 10% of business produced in Louisiana, Alabama, Texas and Illinois from September 1, 2011 through December 31, 2011. At December 31, 2011, this contract converted to a 40% quota-share reinsurance contract on the in-force business for the applicable states throughout 2012. Written premiums ceded under this agreement totaled $82.0 million during the year ended December 31, 2012, and this agreement was extended under the same terms through March 31, 2013 and terminated on a cutoff basis as of April 1, 2013. Upon termination, the Company recorded $27.2 million of returned premium, net of $7.7 million deferred ceding commissions. Written premiums under this agreement during 2013 represented a return of previously ceded premiums totaling $5.5 million. Written premiums ceded under this agreement totaled $99.4 million since inception through April 1, 2013.

	In 2013, the Company entered into a new quota-share agreement with the previous third-party reinsurance company effective March 31, 2013, under which the Company cedes 40% for the same four states as the expiring agreement. This agreement is through December 31, 2013 but has automatic one-year renewals unless either party provides notice of intent not to renew within 75 days. This agreement was amended effective June 30, 2013, under which the Company cedes an additional 40% for the same four states for the remainder of 2013. This agreement was further amended to provide a $10.0 million reduction in ceded premiums in the fourth quarter. Written premiums ceded under this agreement totaled $145.8 million during the year ended December 31, 2013. This agreement terminated on January 1, 2014.

	Effective December 31, 2013, the Company entered into a new reinsurance agreement with four new third-party reinsurance companies. Under this agreement, the Company cedes 20% of premiums and losses in Alabama, Illinois, Louisiana and Texas, and 60% in California on policies in force on December 31, 2013 or written or renewed on and after that date. Written premiums ceded under this agreement totaled $22.2 million as of December 31, 2013. On January 1, 2014, the quota-share rate increases to 60% for all business in force in these same states and for new and renewal business through January 1, 2015.

	Assumed Reinsurance

	The Company assumes reinsurance from a Texas county mutual insurance company (the county mutual) whereby the Company has assumed 100% of the policies issued by the county mutual for business produced by the Company’s owned general agents with policies in force prior to January 1, 2013. The county mutual does not retain any of this business and there are no loss limits other than the underlying policy limits. AIC has established a trust to secure the Company’s obligation under this reinsurance contract with a balance of $15.0 million and $27.7 million as of December 31, 2013 and 2012, of which $3.6 million and $9.9 million was held in cash equivalents as of December 31, 2013 and 2012, respectively. On January 1, 2013, the Company terminated this agreement on a cut-off basis and unearned premium of $11.8 million was returned to the ceding company.

	Excess of Loss Contracts

	In July 2013, the Company entered into a reinsurance agreement with third-party reinsurers that provides $7.0 million in excess of the first $3.0 million of losses coverage for catastrophic events that may involve multiple insured losses.

	In February 2013, the Company entered into a one-year excess of loss reinsurance contract with third-party reinsurers that provides coverage for individual losses in excess of $100,000 up to $1.0 million.



	The effect of reinsurance on premiums written and earned was as follows (in thousands):



			Year Ended December 31,
			2013								2012						2011
			Written				Earned				Written			Earned			Written			Earned
	Direct		$	304,007			$	284,479			$	198,359		$	185,546		$	193,528		$	220,156
	Reinsurance assumed			(11,812	)			—				38,663			36,718			35,701			41,933
	Reinsurance ceded			(163,549	)			(118,796	)			(66,482	)		(78,528	)		(88,065	)		(85,540	)

	Total		$	128,646			$	165,683			$	170,540		$	143,736		$	141,164		$	176,549


	Under certain of the Company’s reinsurance transactions, the Company has received ceding commissions. The ceding commission rate varies based on loss experience. The estimates of loss experience are continually reviewed and adjusted, and the resulting adjustments to ceding commissions are reflected in current operations. Ceding commissions recognized, reflected as a reduction of selling, general and administrative expenses, were as follows (in thousands):



			Year Ended December 31,
			2013				2012				2011
	Selling, general and administrative expenses		$	(29,716	)		$	(26,676	)		$	(24,026	)


	The amount of loss reserves and unearned premium the Company would remain liable for in the event its reinsurers are unable to meet their obligations were as follows (in thousands):



			December 31,				December 31,
			2013				2012
	Losses and loss adjustment expense reserves		$	72,366			$	67,166
	Unearned premium reserve			69,381				24,628

	Total		$	141,747			$	91,794


The following table summarizes the ceded incurred losses and loss adjustment expenses (consisting of ceded paid losses and loss adjustment expenses and change in reserves for loss and loss adjustment expenses ceded) to various reinsurers (in thousands):



		Year Ended December 31,
		2013				2012				2011
Paid losses and loss adjustment expenses ceded		$	74,903			$	61,186			$	55,197
Change in reserves for loss and loss adjustment expenses ceded			5,200				(11,344	)			(14,574	)

Incurred losses and loss adjustment expenses ceded		$	80,103			$	49,842			$	40,623


The Michigan Catastrophic Claims Association (MCCA) is the mandatory reinsurance facility that covers no-fault medical losses above a specific retention amount in Michigan. The Company discontinued writing policies in Michigan in 2011. For policies effective in 2011 and 2010, the retention amount was $0.5 million. When the Company wrote personal automobile policies in the state of Michigan, the Company ceded premiums and claims to the MCCA. Funding for MCCA comes from assessments against active automobile insurers based upon their proportionate market share of the state’s automobile liability insurance market. Insurers are allowed to pass along this cost to Michigan automobile policyholders.



The table below presents the ceded premiums written and ceded loss and loss adjustment expenses to the MCCA for the year ended December 31, 2012 and 2011 (in thousands):



		2012				2011
Ceded premiums written		$	—			$	528

Ceded loss and loss adjustment expenses		$	(158	)		$	(16,071	)


Receivable from reinsurers

The table below presents the total amount of receivables due from reinsurers as of December 31, 2013 and 2012 (in thousands):



		December 31,				December 31,
		2013				2012
Quota-share reinsurer for agreements effective September 1, 2011 and March 31, 2013		$	91,879			$	53,195
Michigan Catastrophic Claims Association			34,878				39,652
Quota-share reinsurers for agreements effective December 31, 2013			22,218				—
Vesta Insurance Group			13,435				13,674
Excess of loss reinsurers			3,413				5,521
Quota-share reinsurer for agreements effective in fourth quarter of 2010 and January 1, 2011 and other			(4	)			8,559

Total reinsurance receivable		$	165,819			$	120,601


The quota-share reinsurers and the excess of loss reinsurers all have at least A- ratings from A.M. Best. Accordingly, the Company believes there is minimal credit risk related to these reinsurance receivables. Under the reinsurance agreement with Vesta Insurance Group (VIG), including primarily Vesta Fire Insurance Corporation (VFIC), AIC had the right, under certain circumstances, to require VFIC to provide a letter of credit or establish a trust account to collateralize gross amounts due from VFIC under the reinsurance agreement. At December 31, 2013, the VFIC Trust held $16.6 million (after cumulative withdrawals of $9.0 million through December 31, 2013), consisting of a U.S. Treasury money market account held in cash and cash equivalents, to collateralize the $13.4 million net recoverable from VFIC.

At December 31, 2013, $2.5 million was included in reserves for losses and loss adjustment expenses that represented the amounts owed by AIC under a reinsurance agreement with a VIG-affiliated company. Affirmative established a trust account to secure the Company’s obligations under this reinsurance contract, which currently holds $15.7 million in a money market cash equivalent account (the AIC Trust). The Special Deputy Receiver in Texas had cumulative withdrawals from the AIC Trust of $0.4 million through December 2013, and the Special Deputy Receiver in Hawaii had cumulative withdrawals from the AIC Trust of $1.7 million through December 2013.

In June 2006, the Texas Department of Insurance (TDI) placed VFIC, along with several of its affiliates, into rehabilitation and subsequently into liquidation (except for VIG which remains in rehabilitation). In accordance with the TDI liquidation orders, all VIG subsidiary reinsurance agreements were terminated. Prior to the termination, the Company assumed various quota-share percentages according to which managing general agents (MGAs) produced the business. With respect to business produced by certain MGAs, the Company assumed 100% of the contracts. For business produced by other MGAs, the Company’s assumption was net after VIG cession to other reinsurers. For this latter assumed business, the other reinsurers and their participation varied by MGA. Prior to the termination of the VIG subsidiary reinsurance agreements, the agreements contained no maximum loss limit other than the underlying policy limits. The ceding company’s retention was zero and these agreements could be terminated at the end of any calendar quarter by either party with prior written notice of not less than 90 days.

VIG indemnified the Company for any losses due to uncollectible reinsurance related to reinsurance agreements entered into with unaffiliated reinsurers prior to December 31, 2003. As of December 31, 2013, all such unaffiliated reinsurers had A.M. best ratings of A- or better. The Company had reinsurance recoverable from VIG of $2.2 million and $2.5 million as of December 31, 2013 and 2012, respectively.

Deferred_Policy_Acquisition_Co

Deferred Policy Acquisition Costs	12 Months Ended
Deferred Policy Acquisition Costs	Dec. 31, 2013
Deferred Policy Acquisition Costs	'
	7. Deferred Policy Acquisition Costs
	Policy acquisition costs, consisting of primarily commissions and premium taxes, net of ceding commission income, are deferred and charged against income ratably over the terms of the related policies. The components of deferred policy acquisition costs and the related amortization expense were as follows (in thousands):


		Gross			Ceded			Net
	Ending balance at December 31, 2011	$	3,668		$	(10,132	)	$	(6,464	)
	Additions		20,431			(19,090	)		1,341
	Amortization		(16,988	)		22,209			5,221

	Ending balance at December 31, 2012		7,111			(7,013	)		98
	Additions		38,156			(47,705	)		(9,549	)
	Amortization		(32,680	)		34,587			1,907

	Ending balance at December 31, 2013	$	12,587		$	(20,131	)	$	(7,544	)

Property_and_Equipment_Net

Property and Equipment, Net	12 Months Ended
Property and Equipment, Net	Dec. 31, 2013
Property and Equipment, Net	'

	8. Property and Equipment, Net

	Property and equipment, net, consisted of the following as of December 31, 2013 and 2012 (in thousands):



		2013			2012
	Computer software	$	50,448		$	57,401
	Data processing equipment		9,056			9,513
	Leasehold improvements		3,805			10,366
	Furniture and office equipment		3,637			5,069
	Automobiles		254			464

			67,200			82,813
	Accumulated depreciation		(53,222	)		(60,242	)

	Property and equipment, net	$	13,978		$	22,571


	The Company’s depreciation expense was $7.1 million, $10.0 million and $9.5 million for the years ended December 31, 2013, 2012 and 2011, respectively.

Goodwill_and_Other_Intangible_

Goodwill and Other Intangible Assets	12 Months Ended
Goodwill and Other Intangible Assets	Dec. 31, 2013
Goodwill and Other Intangible Assets	'

	9. Goodwill and Other Intangible Assets

	The Company reports no carrying value for goodwill since the impairment analysis as of September 30, 2012. The Company reports under a single reporting segment and, as such, the goodwill analysis was measured under one reporting unit. Trends and developments resulted in management concluding that it is more likely than not that a goodwill impairment existed at September 30, 2012. Specifically, operating income and cash flow was less than plan, and premium production was below forecast. Due to the Company’s negative equity position of $101.3 million as of September 30, 2012, prior to goodwill impairment, ASC 350-20-35-30 required that the Company perform step two of the goodwill impairment test.

	Consistent with prior assessments, the fair value of the Company was determined using an internally developed discounted cash flow method. Management made significant assumptions and estimates about the extent and timing of future cash flows, growth rates, and discount rates that represent unobservable inputs into the valuation methodologies used to calculate fair value. A discount rate of 19% was used at September 30, 2012, which the Company believes adequately reflected an appropriate risk-adjusted discount rate based on its overall cost of capital and company-specific risk factors related to cash flow, debt covenants compliance, and regulatory risk. The cash flows were estimated over a significant future period of time, which made those estimates and assumptions subject to a high degree of uncertainty. Based upon the results of the assessment, the Company concluded that the carrying value of goodwill was fully impaired as of September 30, 2012. In step two of the goodwill impairment analysis, the Company determined the fair values of the Company’s assets and liabilities (including any unrecognized intangible assets) as if the Company had been acquired in a business combination. Determining the implied fair value of goodwill was judgmental in nature and involved the use of significant estimates and assumptions. The resulting implied fair value of goodwill was compared to the carrying value of goodwill, resulting in the write-off of the remaining goodwill balance of $23.4 million.

	The Company completed its annual goodwill and indefinite lived intangible asset impairment analysis as of September 30, 2011. Based upon the results of the assessment, the Company concluded that the carrying values of goodwill and other intangible assets were not impaired as of September 30, 2011. Due to prior period adverse loss development on the Company’s Michigan business recorded in the fourth quarter of 2011 and recent negative premium production trends, the Company revised its five-year forecast and updated its discounted cash flow model to assess the recoverability of recorded goodwill at December 31, 2011. A discount rate of 14.5% was used at December 31, 2011, which the Company believed was an appropriate risk-adjusted discount rate based on the Company’s overall cost of capital. Based on this updated analysis, the Company concluded that the carrying amount of goodwill was not recoverable. In step two of the goodwill impairment analysis, the Company determined the fair values of the Company’s assets and liabilities (including any unrecognized intangible assets) as if the Company had been acquired in a business combination. The resulting implied fair value was compared to the carrying value of goodwill with the excess carrying value resulting in an impairment. The step two analysis resulted in the recognition of a non-cash, pretax goodwill impairment charge of $140.1 million.

	The fair value of goodwill presented below is not necessarily indicative of the amounts the Company might realize in actual market transactions. The carrying amount and fair value for goodwill is summarized as follows (in thousands):



		Carrying			Fair Value								Total Recognized
	Goodwill as of and for	Value			Quoted Prices			Significant			Significant		Impairment Loss
	the Year Ended				in Active			Other			Unobservable
	December 31,				Markets			Observable			Inputs
					(Level 1)			Inputs			(Level 3)
								(Level 2)
	2012	$	—		$	—		$	—		$	—	$	23,448
	2011		23,448			—			—			23,448		140,122



	Changes in the carrying value of goodwill for the year ended December 31, 2012 and 2011 were as follows (in thousands):



		Year Ended
		December 31,
		2012			2011
	Beginning balance	$	23,448		$	163,570
	Goodwill impairment		(23,448	)		(140,122	)

	Ending balance	$	—		$	23,448


	Indefinite-lived intangible assets primarily consist of state insurance licenses. Prior to the sale of the retail business, intangible assets included brand names that were evaluated for impairment utilizing the relief-from-royalty method. This method assumes that trade names have value to the extent that their owner is relieved of the obligation to pay royalties for the benefits received from them. This method requires an estimate of future revenue for the related brands, the appropriate royalty rate and the weighted average cost of capital. This analysis indicated an impairment of indefinite-lived intangible assets of $0.2 million as of September 30, 2012. Impairment of intangible assets is recorded in goodwill and other intangible assets impairment on the consolidated statements of operations.

	Significant declines in the fourth quarter of 2011 in premiums written in the markets corresponding to the recorded agency relationship compared with prior periods and forecast, as well as customer attrition rates indicated that the carrying amounts of definite-lived intangible assets were not recoverable, resulting in a non-cash impairment charge of $1.7 million.

	Other intangible assets at December 31, 2013 and 2012 were as follows (in thousands):



		2013											2012
		Cost			Impairment			Accumulated			Net		Cost		Impairment			Accumulated			Net
		Cost			Impairment			Amortization			Net		Cost		Impairment			Amortization			Net
	Amortizable intangible assets:
	Agency and customer relationships	$	8,054		$	(1,689	)	$	(6,365	)	$	0	$	8,054	$	(1,689	)	$	(6,365	)	$	0
	Non-amortizable intangible assets:
	Trade names and licenses		3,144			(244	)		(1,400	)		1,500		15,909		(244	)		(1,400	)		14,265

	Total	$	11,198		$	(1,933	)	$	(7,765	)	$	1,500	$	23,963	$	(1,933	)	$	(7,765	)	$	14,265


	The Company transferred $12.8 million of trade name intangibles as part of the retail sale, as discussed in Note 4.

	Amortization expense for the years ended December 31 (in thousands):



	2013	$	—
2012		100
2011		170

Reserve_for_Losses_and_Loss_Ad

Reserve for Losses and Loss Adjustment Expenses	12 Months Ended
Reserve for Losses and Loss Adjustment Expenses	Dec. 31, 2013
Reserve for Losses and Loss Adjustment Expenses	'

	10. Reserve for Losses and Loss Adjustment Expenses

	The following table provides a reconciliation of the beginning and ending reserves for unpaid losses and loss adjustment expenses for the periods indicated (in thousands):



		Year Ended December 31,
		2013		2012		2011
	Gross balance at beginning of year	$	138,854	$	183,836	$	252,084
	Less: Reinsurance recoverable		67,166		78,510		93,084
	Less: Deposits		—		—		213

	Net balance at beginning of year		71,688		105,326		158,787
	Incurred related to:
	Current year		135,556		106,379		132,557
	Prior years		12,262		5,479		5,100
	Paid related to:
	Current year		88,727		66,916		87,117
	Prior years		69,556		78,580		104,001

	Net balance at the end of year		61,223		71,688		105,326
	Reinsurance recoverable		72,366		67,166		78,510

	Gross balance at the end of year	$	133,589	$	138,854	$	183,836


	In 2013, the percentage of net losses and loss adjustment expense to net premiums earned (the net loss ratio) was 89.2% compared with 77.8% in 2012. The current year included $7.0 million of unfavorable prior period development primarily related to the 2011 accident year for our Louisiana business, $3.6 million related to the 2011 and 2012 Texas business, and $1.3 million for the accident year 2012 California business. Excluding the prior year development, the current accident year net loss ratio was 81.8% compared with 74.0% in 2012. The use of quota-share reinsurance overstates the net loss ratio. Loss adjustment expenses include all of the business subject to the quota-share treaties with ceding commission income booked as an offset to selling, general and administrative expenses. As such, the quota-share treaties’ impact on the loss ratio was to increase it by 6.5 points for 2013 and 4.6 points for 2012. Excluding the impact of the quota-share, the net loss ratio for the 2013 accident year was 75.3% and 69.4% for the 2012 accident year. The increase in the current year was primarily due to a significant increase in new business, which tends to have a higher loss ratio than renewal business. Also reflected in the above numbers is the effect of catastrophes. In the current accident year we have incurred catastrophes, net of reinsurance, equal to 2.0 points for 2013 and 2012. Both of these numbers are higher than our long term average expectation of 0.5 points.

	In 2012, the percentage of calendar year losses and loss adjustment expense to net premiums earned (the net loss ratio) was 77.8% compared with 78.0% in 2011. On an accident year basis, the net loss ratio was 74.0% in 2012 compared with 75.1% in 2011. Loss adjustment expenses include all of the business subject to the quota-share treaties with ceding commission income booked as an offset to selling, general and administrative expenses. As such, the quota-share treaties’ impact on the loss ratio was to increase it by 4.6 points for 2012 and 3.1 points for 2011. Excluding the impact of the quota-share, the net loss ratio for the 2012 accident year was 69.4% and 71.1% for the 2011 accident year. Management believes this decrease reflects the pricing, claims and underwriting actions that commenced in the second half of 2010 through 2011. Also reflected in the above numbers is the effect of catastrophes. For the 2012 accident year we have incurred catastrophes, net of reinsurance, equal to 2.0 points for 2012 compared to 1.5 points in 2011. The adverse prior period development recognized in 2012 was primarily due to an increase in the estimated severity for Louisiana bodily injury claims in 2011.



	Management believes the decrease in the 2012 accident year resulted from the confluence of a number of initiatives. During 2012, we realized the full benefit of our new multi-variate pricing model in our four largest states, implemented pricing and underwriting changes and our continuing improvements in our claims process. Management believes the combination of these improvements has allowed us to start growing in the fourth quarter while keeping our losses at levels lower than 2011.

Debt

Debt	12 Months Ended
Debt	Dec. 31, 2013
Debt	'

	11. Debt

	The Company’s long-term debt instruments and balances outstanding at December 31, 2013 and 2012 were as follows (in thousands):



		2013		2012
	Notes payable due 2035	$	30,928	$	30,928
	Notes payable due 2035		25,774		25,774
	Notes payable due 2035		20,126		20,140

	Total notes payable		76,828		76,842
	Senior secured credit facility effective January 2007, net of discount		—		99,323
	Senior secured credit facility effective September 2013, net of discount		33,523		—
	Subordinated secured credit facility		13,650		—
	Mortgage payable		3,562		—

	Total long-term debt	$	127,563	$	176,165


	Notes payable

	The $30.9 million notes payable due 2035 are redeemable in whole or in part by the Company. The notes adjust quarterly to the three-month LIBOR rate plus 3.60%. The interest rate as of December 31, 2013 was 3.84%.

	The $25.8 million notes payable due 2035 are redeemable in whole or in part by the Company. The notes adjust quarterly to the three-month LIBOR rate plus 3.55%. The interest rate as of December 31, 2013 was 3.79%.

	On February 28, 2012, the Company exercised its right to defer interest payments on the two notes payable mentioned above beginning with the scheduled interest payment due in March 2012 and continuing for a period of up to five years. The affected notes are associated with obligations to the Company’s unconsolidated trusts. The outstanding balance of the affected notes was $56.7 million as of December 31, 2013. The Company will continue to accrue interest on the principal during the interest deferral period and the unpaid deferred interest will also accrue interest. Deferred interest will be due and payable at the expiration of the interest deferral period and totaled $4.6 million as of December 31, 2013.

	The $20.1 million notes payable due 2035 are redeemable in whole or in part by the Company. The notes adjust quarterly to the three-month LIBOR rate plus 3.95%. The interest rate as of December 31, 2013 was 4.19%.

	Senior and subordinated secured facilities

	On September 30, 2013, the Company replaced its existing senior credit facility with the proceeds from the sale of the retail business and with proceeds from two new debt arrangements. The Company’s new debt arrangement consisted of a $40.0 million senior secured credit facility with a maturity date of March 30, 2016, and a $10.0 million subordinated secured credit facility with a maturity date of March 30, 2017.



	The pricing under the senior secured credit facility is currently subject to an adjusted LIBOR rate floor of 1.25%, plus 7.25%. The interest rate as of December 31, 2013 was 8.50%. The Company made a $5.0 million payment in November 2013. As of December 31, 2013, the principal balance of the senior secured credit facility was $35.0 million. The senior secured credit facility was issued at a discount of $2.0 million that will be amortized as interest expense over the expected term of the loan using the effective interest method. Repayment of the facility is due quarterly with $2.0 million payable for each quarter through September 30, 2014, $3.5 million payable each quarter through September 30, 2015, $4.5 million payable on December 31, 2015 and the remaining balance of $13.5 million due in full on March 30, 2016. Prepayments under this agreement are applied to the earliest payments due. After the $5.0 million payment was made in November 2013, the next payment due is $1.0 million on June 30, 2014.

	The pricing under the subordinated secured credit facility is currently subject to an adjusted LIBOR rate floor of 1.25%, plus 18.00%. The interest rate as of December 31, 2013 was 19.25%. The subordinated secured credit facility included a commitment fee of $3.0 million that was added to the principal balance outstanding. Accrued interest is added to the outstanding principal balance until the senior secured credit facility is paid. Capitalized interest totaling $0.7 million was added to the principal balance during 2013. As of December 31, 2013, the principal balance of the subordinated secured credit facility was $13.7 million.

	The Company recorded a $4.2 million pretax loss on extinguishment of debt as a result of the refinancing on September 30, 2013. The $4.2 million debt extinguishment loss resulted from the write-off of $2.2 million of deferred debt issuance costs and unamortized discount relating to the senior secured credit facility effective January 2007, $1.4 million of legal fees and a $0.6 million prepayment premium.

	New debt issuance costs of $4.5 million were capitalized and will be amortized to interest expense over the expected term of the new credit agreements.

	The Company’s obligations under the credit facilities are guaranteed by its material operating subsidiaries (other than the Company’s insurance companies) and are secured by a first lien security interest on all of the Company’s assets and the assets of its material operating subsidiaries (other than the Company’s insurance companies), including a pledge of 100% of the stock of AIC.

	The following table summarizes the Company’s credit facilities scheduled principal payments (in thousands):



	2014	$	6,500
	2015		15,000
	2016		13,500
	2017		13,650

	Total	$	48,650


	In 2007, the Company entered into a $220.0 million senior secured credit facility (the facility) with a syndicate of lenders that consisted of a $200.0 million senior term loan facility, and a revolving facility of up to $20.0 million, depending on the Company’s borrowing capacity. The pricing under the senior secured credit facility was subject to a LIBOR floor of 3.00% plus 6.25%, and was tiered based on the Company’s leverage ratio. The facility was paid in full with the proceeds from the sale of the retail business and two new debt arrangements.



In August 2013, a new class of loans to be borrowed under the senior secured credit facility effective January 2007 was created allowing for an additional tranche of incremental term loan (ITL B). Under the ITL B, the Company borrowed $12.5 million which was contributed to our subsidiary, LIFCO, LLC to pay off an intercompany note due AIC.

In November 2012, a new class of loans under the senior secured credit facility was created allowing for an incremental term loan. The incremental term loan has the following characteristics:


	•	Face amount of $8.0 million with a funded amount of $5.5 million, of which the Company contributed $4.6 million to Affirmative Insurance Company.


	•	Repayment of the full $8.0 million will be on a first out basis, payable in full, on or prior to January 17, 2014, with priority over all other amounts outstanding under the senior secured credit facility. The incremental term loan lenders retained $2.5 million, representing non-cash original issue discount.


	•	Of the total proceeds, $900 thousand is to be used solely for paying the incremental term loan lenders’ and administrative agent’s professional fees.


	•	A $60,000 principal payment is due as of March 31, 2013 and $40,000 is due each quarter end for the remainder of 2013. The remaining balance is due at maturity.


	•	As of December 31, 2012, a non-cash $550,000 commitment fee was recorded in other liabilities, and subsequently added to the principal amount of the incremental term loan.


	•	The incremental term loan lenders receive an 8% prepayment premium of the principal amount if the incremental term loan is prepaid.


	•	The incremental term loan lenders retained a financial advisor to assess the financial, operational and regulatory condition of the Company.

In March 2011, the Company entered into an amendment to the facility. The amendment included the following significant items:


	•	A waiver of any defaults or events of default for the period prior to the effective date of the amendment related to the risk-based capital ratio and loss ratio covenants under the prior terms of the agreement.


	•	The permitted dividend leverage ratio was changed from 1.5 to 1.0.


	•	Indebtedness under the baskets for qualified additional subordinated debt and Affirmative Premium Finance Company was eliminated. The Company did not have any such debt.


	•	A provision was added allowing for the acquisition of $30 million of subordinated debt if the proceeds are used as a capital contribution to the regulated insurance entities.


	•	The assets and stock of Affirmative Premium Finance Company were pledged and this entity became a guarantor of the debt.


	•	The quarterly requirements for the leverage ratio covenant calculation were changed for the first three quarters of 2011.


	•	The quarterly requirements for the interest coverage ratio covenant calculation were changed for the first two quarters of 2011.


	•	The quarterly requirements for the loss ratio covenant calculation were changed from December 31, 2010 through March 31, 2012.


	•	The annual requirements for the risk-based capital covenant calculation were changed for December 31, 2010 and December 31, 2011.


	•	At every quarter end, the Company will make a payment to the lenders equal to the excess of cash at the non-regulated entities of $12 million at December 31 and March 31 and $10 million at June 30 and September 30.


	•	Effective April 1, 2011, the pricing under the agreement changed to if the leverage ratio is greater than 2.3, the pricing is LIBOR plus 9.00%. If the leverage ratio is greater than 2.0 and less than or equal to 2.3, the pricing is LIBOR plus 7.50%. If the leverage ratio is greater than 1.8 and less than or equal to 2.0, the pricing is LIBOR plus 6.25%. The pricing for leverage ratios less than or equal to 1.8 was unchanged.


	•	The Company has the option to capitalize interest that is in excess of the prior payment terms to the loan balance.

In addition, the Company paid a 0.25% fee to all lenders that approved the amendment.

Mortgage payable

In March 2013, the Company, through one of its indirect, wholly-owned subsidiaries, entered into a $4.8 million loan secured by commercial real estate to provide liquidity to AIC. The loan is evidenced by a promissory note secured by a mortgage security agreement and assignment of leases and rents on real estate located in Baton Rouge, Louisiana, which is held as investment in real property on the consolidated balance sheet. The mortgage bears interest at a per annum fixed rate of 4.95%. The mortgage requires monthly payments of principal and interest with the final payment due on the maturity date of December 15, 2015. As security for payments, the Company assigned rents due under the lease to a trustee. Pursuant to an escrow and servicing agreement, the trustee will receive rent due under the lease, make required payments due under the mortgage and maintain certain escrow accounts to pay for the necessary expenses of the property until the mortgage is paid in full. The principal balance of the mortgage payable was $3.6 million at December 31, 2013.

Capital_Lease_Obligation

Capital Lease Obligation	12 Months Ended
Capital Lease Obligation	Dec. 31, 2013
Capital Lease Obligation	'

	12. Capital Lease Obligation

	In December 2013, the Company entered into a capital lease obligation related to certain computer software, software licenses and hardware used in the Company’s insurance operations. The Company received cash proceeds from the financing in the amount of $4.9 million in January 2014. A receivable for settlement of this transaction was included in other assets as of December 31, 2013. The transaction proceeds, when received, will be pledged as collateral against all the Company’s obligations under the lease. The dollar amount of collateral pledged is set to decline over the term of the lease as the Company makes the scheduled lease payments. At the end of the initial term, the Company will have the right to purchase the software for a nominal fee, after which all rights, title and interest would transfer to the Company.

	In May 2010, the Company entered into two capital lease obligations related to certain computer software, software licenses, and hardware used in the Company’s insurance operations. The Company received cash proceeds from the financing in the amount of $28.2 million. As required by the lease agreements, the Company purchased $28.2 million of certificates of deposit held in brokerage accounts and pledged such securities as collateral against all of the Company’s obligations under the lease. The dollar amount of collateral pledged is set to decline over the term of the lease as the Company makes the scheduled lease payments. At the end of the initial term, the Company will have the right to purchase the software for a nominal fee, after which all rights, title and interest would transfer to the Company.



	On October 17, 2012, the Company received notice from one of the lessors (Lessor) under a capital lease obligation that, based upon Lessor’s claim of an alleged default under the terms of the applicable lease and security agreements, it elected to immediately seek recovery of an amount equal to the casualty loss value of the leased property, together with all other sums allegedly due to Lessor, which Lessor calculated as $9.6 million. Lessor informed the Company that it had directed the escrow agent to redeem the CDs securing the Company’s lease payment obligation and disburse to it the approximately $8.3 million in proceeds, which Lessor received on October 15, 2012. Lessor threatened legal action against the Company to recover the remaining $1.3 million, alleged liquidated damages. The Company contests that any event of default has occurred and also disputes Lessor’s demand for payment of the casualty loss value of the leased property. On December 26, 2012, Lessor conveyed all right and interest in the leased property back to the Company, although both parties reserved all claims with respect to the disputed demands for payment. Neither party has filed suit at this time.

	The remaining lease term is 17 months with monthly rental payments totaling approximately $0.3 million. Cash and securities pledged as collateral and held as available-for-sale securities were $5.9 million and $9.1 million as of December 31, 2013 and 2012, respectively.

	Property under capital lease consisted of the following as of December 31, 2013 and 2012 (in thousands):



		December 31,			December 31,
		2013			2012
	Computer software, software licenses and hardware	$	34,212		$	17,106
	Accumulated depreciation		(23,971	)		(9,751	)

	Computer software, software licenses and hardware, net	$	10,241		$	7,355


	Estimated future lease payments for the years ending December 31 (in thousands):



	2014	$	6,814
	2015		3,124

	Total estimated future lease payments		9,938
	Less: Amount representing interest		510

	Present value of future lease payments	$	9,428

Income_Taxes

Income Taxes	12 Months Ended
Income Taxes	Dec. 31, 2013
Income Taxes	'

	13. Income Taxes

	The provision for income taxes for the years ended December 31 consisted of the following (in thousands):




			2013				2012			2011
	Current tax expense		$	4,067			$	14		$	127
	Deferred tax expense (benefit)			(3,178	)			250			(9,167	)

	Net income tax expense (benefit)		$	889			$	264		$	(9,040	)




	The Company’s effective tax rate differed from the statutory rate of 35% for the years ended December 31 as follows (in thousands):




			2013				2012			2011
	Income (loss) before income tax expense (benefit)		$	31,607			$	(51,649	)	$	(171,638	)
	Tax provision computed at the federal statutory income tax rate			11,063				(18,077	)		(60,073	)
	Increases (reductions) in tax resulting from:
	Tax-exempt interest			(17	)			(67	)		(139	)
	State income taxes			3,115				140			(1,517	)
	IRS audit settlement			—				(118	)		—
	Goodwill impairment			—				5,623			33,606
	Valuation allowance			(13,303	)			12,766			19,139
	Other			31				(3	)		(56	)

	Income tax expense (benefit)		$	889			$	264		$	(9,040	)

	Effective tax rate			2.8	%			0.5	%		5.3	%


	Tax effects of temporary differences that give rise to significant portions of the Company’s deferred tax assets and deferred tax liabilities at December 31, 2013 and 2012 were as follows (in thousands):




			2013				2012
	Deferred tax assets:
	Unearned and advance premiums		$	763			$	3,347
	Net operating loss carryforward			68,318				76,051
	Discounted unpaid losses			1,085				1,407
	Deferred revenue			2,367				2,141
	Allowance for doubtful accounts			2,709				3,775
	Goodwill			3,655				6,216
	Rent deferral			752				1,205
	Deferred acquisition costs, net asset			2,640				—
	Depreciation on fixed assets			325				1,785
	Alternative minimum tax and work opportunity credits			1,276				671
	Paid in kind interest			—				891
	Unrealized losses			40				—
	Intangibles			68				—
	Stock options			1,580				1,467
	State deferred tax assets			2,598				3,452
	Other deferred tax assets			1,782				2,527

	Total deferred tax assets			89,958				104,935

Deferred tax liabilities:
Unrealized gains			—				190
Intangibles			—				2,268
Deferred acquisition costs, net liability			—				34
Debt extinguishment			517				2,206
Other deferred tax liabilities			1,013				1,502

Total deferred tax liabilities			1,530				6,200

Deferred tax assets, net, before valuation allowance			88,428				98,735
Valuation allowance			88,428				101,913

Deferred tax liabilities, net		$	—			$	(3,178	)




The change in valuation allowance attributable to continuing operations and other comprehensive income is presented for the years ended December 31 as follows (in thousands):




		2013				2012
Continuing operations		$	(13,303	)		$	12,766
Changes in other comprehensive income			230				270

		$	(13,073	)		$	13,036


If actual results differ from these estimates or these estimates are adjusted in future periods, the valuation allowance may need to be adjusted, which could materially impact the Company’s financial position and results of operations. If sufficient positive evidence arises in the future indicating that all or a portion of the deferred tax assets meet the more likely than not standard, the valuation allowance would be reversed accordingly in the period that such a conclusion is reached.

As of December 31, 2013, the Company has available for income tax purposes federal net operating loss carryforwards (NOL’s), which may be used to offset future taxable income. The Company’s NOL’s expire as follows (in thousands):




2027		$	8,527
2028			4,886
2029			26,569
2030			82,417
2031			39,122
2032			33,527

		$	195,048


At December 31, 2013, the Company’s 2007 and prior tax years were closed by the IRS.

Commitments

Commitments	12 Months Ended
Commitments	Dec. 31, 2013
Commitments	'
	14. Commitments
	In 2006, the Company entered into an IT outsourcing contract with a data processing services provider under which the Company outsourced substantially all of its IT operations, including the Company’s data center, field support and application management. The initial term of the agreement was ten years, although it may be terminated for convenience by the Company at any time upon six months notice after the first two years, subject to the payment of certain stranded costs and other termination fees. In October 2012, the Company amended its Master Service Agreement with a third party whereby the Company assumed responsibility for managing substantially all of its IT operations, including data center and applications management at an annual cost of $6.1 million. In addition, the Company contracted with a third party to provide network infrastructure services for $1.2 million annually. This contract was terminated as of June 30, 2013. An early termination penalty was invoked by the third party whereby the Company will pay out $1.8 million over a twelve month period which started in July 2013. The Company’s IT outsourcing expenses were $3.5 million, $11.2 million and $13.0 million for the years ended December 31, 2013, 2012 and 2011, respectively.
	As of December 31, 2013, the Company leased office space for its insurance companies in various locations throughout the United States. The Company’s operating lease rental expenses were $6.8 million, $8.8 million and $7.8 million for the years ended December 31, 2013, 2012 and 2011, respectively.

	The following table summarizes the Company’s minimum commitments at December 31, 2013 (in thousands):


	2014	$	4,013
	2015		2,333
	2016		2,714
	2017		1,776
	2018		1,791
	Thereafter		6,306

	Total	$	18,933

Legal_Proceedings

Legal Proceedings	12 Months Ended
Legal Proceedings	Dec. 31, 2013
Legal Proceedings	'

	15. Legal Proceedings

	The Company and its subsidiaries are named from time to time as parties in various legal actions arising in the ordinary course of the Company’s business and arising out of or related to claims made in connection with the Company’s insurance policies and claims handling. The Company believes that the resolution of these legal actions will not have a material adverse effect on the Company’s consolidated financial position or results of operations. However, the ultimate outcome of these matters is uncertain.

	In December 2013, the Company was served with a complaint filed in the 44th Judicial District Court of Dallas County, Texas. The lawsuit also names as a defendant an unaffiliated county mutual insurance company (county mutual) for which the Company serves as managing general agent. The Company is contractually obligated to indemnify the county mutual under certain circumstances. Plaintiffs allege that in May 2013, they obtained a default judgment against an insured of the county mutual in the aggregate amount of $454,194, and, through entry of a turnover order, became assignees of the insured’s rights against the Company and the county mutual insurance company. Plaintiffs assert claims for breach of the duty to defend, breach of the duty of good faith and fair dealing, violations of the Texas Insurance Code, and negligence. Plaintiffs seek a declaratory judgment as well as damages in the amount of the default judgment, incidental and consequential damages, punitive damages, attorney’s fees and costs, pre and post-judgment interest, and statutory damages. The Company disputes Plaintiffs’ claims and intends to defend itself vigorously. No determination that an unfavorable outcome is either probable or remote can be made at this time. Similarly, no accurate estimate of the range of potential loss can be made at this time.

	Affirmative Insurance Company (AIC) was party to a General Agency Agreement with United Underwriters, Inc. (United), pursuant to which United produced business and managed claims on such business in the state of Utah. The General Agency Agreement terminated in 2006. In May 2005, two of AIC’s insureds were injured in an automobile accident for which they sought personal injury protection (PIP) and underinsured motorist (UIM) benefits from AIC. United disputed the insureds’ claims and a lawsuit was filed in the Third District Court of Salt Lake County, Utah. Pursuant to the General Agency Agreement, United is responsible for all costs to defend the lawsuit and owes certain indemnification obligations to AIC. After a bench trial in September 2013, the trial court issued its Findings of Fact, Conclusions of Law and Order on December 5, 2013 (Order), finding in favor of AIC’s insureds on their claims for PIP and UIM benefits. The trial court further found that AIC breached its duty of good faith and fair dealing and awarded certain pre-judgment interest and consequential damages of attorneys’ fees and costs. The trial court directed that the parties submit evidentiary materials and briefing materials on the amount of attorneys’ fees and costs to be awarded, with a hearing to be scheduled. AIC has notified United of its intention to pursue indemnification for losses in connection with this matter. However, the Company believes that its ultimate loss will be within the limits of the policy issued to its insureds, which has been recorded in the loss and LAE reserves.



	On March 20, 2013, the Company was served with a Class Action Petition for Damages and Penalties for Arbitrary and Capricious Behavior filed in the 13th Judicial District Court, Parish of Evangeline, Louisiana against USAgencies Casualty Insurance Company (USAgencies). The named plaintiffs allege that the denial of their first-party property damage claim based on USAgencies’ policy exclusion for driving under the influence of alcohol was arbitrary and capricious, and that USAgencies’ enforcement of the subject policy exclusion violates Louisiana public policy. On August 2, 2013, the Court ruled that USAgencies’ policy exclusion violated Louisiana public policy and was unenforceable. On August 30, 2013, USAgencies filed its application for supervisory writ with the Louisiana Third Circuit Court of Appeal, which was denied on November 5, 2013. The Company is now pursuing a regular appeal in the Louisiana Third Circuit Court of Appeal. At this time, no accurate estimate of the range of potential loss can be made.

Net_Income_Loss_per_Common_Sha

Net Income (Loss) per Common Share	12 Months Ended
Net Income (Loss) per Common Share	Dec. 31, 2013
Net Income (Loss) per Common Share	'
	16. Net Income (Loss) per Common Share
	Net income (loss) per common share is based on the weighted average number of shares outstanding. Diluted weighted average shares is calculated by adjusting basic weighted average shares outstanding by all potentially dilutive stock options and restricted stock. Stock options outstanding of 323,000, 2,407,000 and 1,748,000 for the years ended December 31, 2013, 2012 and 2011, respectively, were not included in the computation of diluted earnings per share because the exercise price of the options was greater than the average market price of the common stock or there was a loss from continuing operations in the respective periods.
	The following table sets forth the reconciliation of numerators and denominators for the basic and diluted earnings per share computation for each of the years ended December 31, 2013, 2012 and 2011 (in thousands, except per share amounts):


		2013		2012			2011
	Numerator:
	Net income (loss)	$	30,718	$	(51,913	)	$	(162,598	)

	Denominator:
	Weighted average basic shares
	Weighted average common shares outstanding		15,408		15,408			15,408

	Weighted average diluted shares
	Weighted average diluted shares outstanding		15,622		15,408			15,408

	Basic income (loss) per common share	$	1.99	$	(3.37	)	$	(10.55	)

	Diluted income (loss) per common share	$	1.97	$	(3.37	)	$	(10.55	)

	On March 18, 2011, 433,500 shares of Affirmative’s common stock were issued on a restricted basis, and the voting rights for all of the shares were assigned to New Affirmative, LLC via a written irrevocable proxy at the time the stock awards were made. On August 10, 2011, the restricted shares were repurchased at par and 1,272,500 stock options were awarded to various executives. Stock options were awarded on February 24, 2012, to various executives totaling 750,000. On September 15, 2013, 250,000 stock options were awarded in exchange for the forfeiture of 600,000 stock options from the August 10, 2011 awards which were in excess of amounts then available for granting under the 2004 Plan.

StockBased_Compensation

Stock-Based Compensation	12 Months Ended
Stock-Based Compensation	Dec. 31, 2013
Stock-Based Compensation	'

	17. Stock-Based Compensation

	In May 2004, the Company’s board of directors adopted and its stockholders approved the 2004 Stock Incentive Plan (2004 Plan) to enable the Company to attract, retain and motivate eligible employees, directors and consultants through equity-based compensatory awards, including stock options, stock bonus awards, restricted and unrestricted stock awards, performance stock awards, stock appreciation rights and dividend equivalent rights. The maximum number of shares of common stock reserved for issuance under the 2004 Plan, as amended, is 3,000,000, subject to adjustment to reflect certain corporate transactions or changes in the Company’s capital structure. At December 31, 2013, 1,244,194 shares were reserved for future grants under the 2004 Plan.

	Under the 2004 Plan, the board or Compensation Committee may fix the term and vesting schedule of each stock option, but no incentive stock option will be exercisable more than ten years after the date of grant. Vested stock options generally remain exercisable for up to three months after a participant’s termination of service or up to 12 months after a participant’s death or disability. Typically, the exercise price of each incentive stock option must not be less than 100% of the fair market value of the Company’s common stock on the grant date, and the exercise price of a nonqualified stock option must not be less than 20% of the fair market value of the Company’s common stock on the grant date. In the event that an incentive stock option is granted to a 10% stockholder, the term of such stock option may not be more than five years and the exercise price may not be less than 110% of the fair market value on the grant date. The exercise price of each stock option granted under the 2004 Plan may be paid in cash or in other forms of consideration in certain circumstances, including shares of common stock, deferred payment arrangements or pursuant to cashless exercise programs. A stock option award may provide that if shares of the Company’s common stock are used to pay the exercise price, additional stock options will be granted to the participant to purchase that number of shares used to pay the exercise price. Generally, stock options are not transferable except by will or the laws of descent and distribution, unless the board or Compensation Committee provides that a nonqualified stock option may be transferred.

	The Company has a 1998 Omnibus Incentive Plan (1998 Plan) under which the Company may grant options to employees, directors and consultants for up to 803,169 shares of common stock. The exercise prices are determined by the board of directors, but shall not be less than 100% of the fair market value on the grant date or, in the case of any employee who is deemed to own more than 10% of the voting power of all classes of the Company’s stock, not less than 110% of the fair market value. The terms of the options are also determined by the board of directors, but shall never exceed ten years or, in the case of any employee who is deemed to own more than 10% of the voting power of all classes of the Company’s common stock, shall not exceed five years. The Company does not expect to grant any further equity awards under the 1998 Plan, but intends to make all future awards under the 2004 Plan. While all awards previously granted under the 1998 Plan will remain outstanding, 1998 Plan shares will not be available for re-grant if these outstanding awards are forfeited or cancelled.

	Stock Options • The Company used the modified Black-Scholes model to estimate the fair value of employee stock options on the date of grant utilizing the assumptions noted below. The risk-free rate is based on the U.S. Treasury bill yield curve in effect at the time of grant for the expected term of the option. The expected term of options granted represents the period of time that the options are expected to be outstanding. The expected volatility assumption is derived from the historical volatility of the Company’s common stock over the most recent period commensurate with the estimated expected life of the Company’s stock options, adjusted for periods of significant volatility not expected to recur. The dividend yield was based on expected dividends at the time of grant.



		2013			2012			2011
	Weighted-average grant date fair value	$	1.76		$	0.69		$	1.76
	Weighted-average risk-free interest rate		1.71	%		1.15	%		1.23
	Expected term of option in years		5			6			6
	Weighted-average expected volatility		43	%		43	%		43	%
	Dividend yield		—			—			—



	A summary of stock option activity for each of the three years ended December 31 follows (shares in thousands):



		2013						2012					2011
		Shares			Weighted Average			Shares			Weighted Average		Shares			Weighted Average
		Shares			Exercise Price			Shares			Exercise Price		Shares			Exercise Price
	Outstanding at beginning of year		2,407		$	5.07			1,748		$	6.82		1,236		$	19.23
	Granted		250			1.76			750			0.69		1,272			1.76
	Forfeited		(1,084	)		4.77			(91	)		1.65		(760	)		18.52

	Outstanding at end of year		1,573			4.75			2,407			5.07		1,748			6.82


	The Company recognized total compensation expense related to the stock options of $300,000, $403,000 and $378,000 during 2013, 2012 and 2011, respectively. Compensation expense is included in selling, general and administrative expenses in the consolidated statements of operations. Total unrecognized compensation expense related to unvested stock options was $234,000 at December 31, 2013, which will be recognized over a weighted-average period of approximately 1.8 years.

	Stock options outstanding and exercisable at December 31, 2013 were as follows (shares in thousands):



	Options Outstanding										Options Exercisable
	Range of Exercise Prices	Number			Weighted Average			Weighted Average			Number		Weighted Average
		Outstanding			Exercise Price			Years of			Exercisable		Exercise Price
								Remaining
								Contractual Life
	$0.69 to $1.75		550		$	0.69			8.15			350	$	0.69
	$1.76 to $10.37		700			1.76			8.36			633		1.76
	$10.38 to $15.00		47			11.42			3.54			47		11.42
	$15.01 to $22.00		216			17.64			3.06			216		17.64
	$22.01 to $30.00		60			25.28			3.06			60		25.28

	$0.69 to $30.00		1,573			4.75			7.21			1,306		5.52


	The stock options outstanding and exercisable at December 31, 2013 had aggregate intrinsic values of zero as the aggregate exercise price was greater than the aggregate market value. No stock options were exercised during 2013, 2012 or 2011.

	Restricted Stock Awards • The Company recognized compensation expense related to the restricted stock awards of $0 in 2013, $4,000 during 2012 and $159,000 in 2011. Compensation expense is included in selling, general and administrative expenses in the consolidated statements of operations. As of December 31, 2013, there was no unrecognized compensation cost related to unvested restricted stock awards.

	The aggregate fair value of restricted stock awards vested during 2012 and 2011 was $1,000 and $15,000 at the date of vesting, respectively.

Employee_Benefit_Plan

Employee Benefit Plan	12 Months Ended
Employee Benefit Plan	Dec. 31, 2013
Employee Benefit Plan	'
	18. Employee Benefit Plan
	The Company sponsors a defined contribution retirement plan under Section 401(k) of the Internal Revenue Code. The plan covers substantially all employees who meet specified service requirements. Under the plan, the Company may, at its discretion, match 100% of each employee’s contribution, up to 3% of the employee’s earnings, plus 50% of each employee’s contribution for the next 2% of the employee’s salary. There were no employer matching contributions to the 401(k) plan in 2013, 2012 or 2011.

Related_Party_Transactions

Related Party Transactions	12 Months Ended
Related Party Transactions	Dec. 31, 2013
Related Party Transactions	'
	19. Related Party Transactions
	On September 30, 2013, the Company entered into a $10.0 million subordinated secured credit facility with JCF AFFM Debt Holdings, L.P., as Administrative Agent and Collateral Agent. JCF AFFM Debt Holdings, L.P. is an affiliate of J.C. Flowers & Co. LLC and New Affirmative LLC, the Company’s 51.0% majority shareholder.

Disclosures_for_Items_Reclassi

Disclosures for Items Reclassified Out of Accumulated Other Comprehensive Income (AOCI)	12 Months Ended
	Dec. 31, 2013
Disclosures for Items Reclassified Out of Accumulated Other Comprehensive Income (AOCI)	'
	20. Disclosures for Items Reclassified Out of Accumulated Other Comprehensive Income (Loss)
	The following table sets forth the components of accumulated other comprehensive income (loss), including reclassification adjustments (in thousands):


		Year			Year
		Ended			Ended
		December 31,			December 31,
		2013			2012
	Beginning balance	$	(998	)	$	(227	)
	Other comprehensive income (loss) before reclassifications		(607	)		117
	Amounts reclassified from accumulated other comprehensive income (loss)		(49	)		(888	)

	Net current period other comprehensive income (loss)		(656	)		(771	)

	Ending balance	$	(1,654	)	$	(998	)

	Net gain in accumulated other comprehensive income (loss) reclassifications for previously unrealized net gains on available-for-sale securities was $49,000 and $888,000 for the years ended December 31, 2013 and 2012, respectively. The gain was not net of any taxes due to the valuation allowance for deferred income taxes.

Regulatory_Restrictions

Regulatory Restrictions	12 Months Ended
Regulatory Restrictions	Dec. 31, 2013
Regulatory Restrictions	'

	21. Regulatory Restrictions

	The Company is subject to comprehensive regulation and supervision by government agencies in Illinois, Louisiana, Michigan and New York, the states in which the Company’s insurance company subsidiaries are domiciled, as well as in the states where its subsidiaries sell insurance products, issue policies, handle claims and finance premiums. Certain states impose restrictions or require prior regulatory approval of certain corporate actions, which may adversely affect the Company’s ability to operate, innovate, obtain necessary rate adjustments in a timely manner or grow its business profitably. These regulations provide safeguards for policy owners and are not intended to protect the interests of stockholders. The Company’s ability to comply with these laws and regulations, and to obtain necessary regulatory action in a timely manner, is and will continue to be critical to its success.

	The Company’s insurance company subsidiaries are subject to risk-based capital standards and other minimum capital and surplus requirements imposed under applicable state laws, including the laws of their state of domicile. The risk-based capital standards, based upon the Risk-Based Capital Model Act, adopted by the National Association of Insurance Commissioners (NAIC), require the Company’s insurance company subsidiaries to report their results of risk-based capital calculations to state departments of insurance and the NAIC. Failure to meet applicable risk-based capital requirements or minimum statutory capital requirements could subject the Company to further examination or corrective action imposed by state regulators, including limitations on the Company’s writing of additional business, state supervision or liquidation. Any changes in existing risk-based capital requirements or minimum statutory capital requirements may require the Company to increase its statutory capital levels. At December 31, 2013, each of the Company’s insurance subsidiaries maintained a risk-based capital level that was in excess of an amount that would require any corrective actions.



	Effective January 1, 2012, the State of Illinois adopted the revised NAIC Risk-Based Capital Model Act that includes a risk-based capital trend test as another manner under which the company action level could be triggered and was applied as of December 31, 2012. The test is applicable when an insurance company has a risk-based capital ratio between 200% and 300% and a combined ratio of more than 120%. Each of the Company’s insurance subsidiaries was in compliance with the RBC trend test as of December 31, 2013.

	State insurance laws restrict the ability of the Company’s insurance company subsidiaries to declare stockholder dividends. These subsidiaries may not issue an “extraordinary dividend” until 30 days after the applicable commissioner of insurance has received notice of the intended dividend and has not objected in such time or until the commissioner has approved the payment of the extraordinary dividend within the 30-day period. In most states, an extraordinary dividend is defined as any dividend or distribution of cash or other property whose fair market value, together with that of other dividends and distributions made within the preceding 12 months, exceeds the greater of 10.0% of the insurance company’s surplus as of the preceding year-end or the insurance company’s net income for the preceding year, in each case determined in accordance with statutory accounting practices. In addition, dividends may only be paid from unassigned earnings and an insurance company’s remaining surplus must be both reasonable in relation to its outstanding liabilities and adequate to its financial needs. As of December 31, 2013, the Company’s insurance companies could not pay ordinary dividends to the Company without prior regulatory approval due to a negative unassigned surplus position of Affirmative Insurance Company. However, as mentioned previously, the Company’s non-insurance company subsidiaries provide adequate cash flow to fund their own operations.

Business_Concentrations

Business Concentrations	12 Months Ended
Business Concentrations	Dec. 31, 2013
Business Concentrations	'

	22. Business Concentrations

	The majority of the Company’s commission income and fees are directly related to the premiums written through its insurance subsidiaries from policies sold to individuals located in certain states. Accordingly, the Company could be adversely affected by economic downturns, natural disasters, and other conditions that may occur from time-to-time in these states.

	The following table displays the Company’s gross written premiums managed and assumed by state (in thousands):



		Year Ended December 31,
		2013		2012		2011
	Louisiana	$	119,828	$	106,841	$	116,462
	Texas		93,573		54,009		36,257
	California		73,741		17,706		14,789
	Alabama		25,272		21,270		23,377
	Illinois		18,359		23,887		25,577
	Indiana		6,846		8,092		6,463
	Missouri		2,799		3,084		1,885
	South Carolina		—		2,127		3,442
	Michigan		—		—		895
	Other		49		6		82

	Total written premium managed		340,467		237,022		229,229
	Less Texas written premium not underwritten		48,272		—		—

	Gross underwritten premiums	$	292,195	$	237,022	$	229,229

Fair_Value_of_Financial_Instru

Fair Value of Financial Instruments	12 Months Ended
Fair Value of Financial Instruments	Dec. 31, 2013
Fair Value of Financial Instruments	'

	23. Fair Value of Financial Instruments

	The Company utilizes a hierarchy of valuation techniques for the disclosure of fair value estimates based on whether the significant inputs into the valuation are observable. In determining the level of hierarchy in which the estimate is disclosed, the highest priority is given to unadjusted quoted prices in active markets and the lowest priority to unobservable inputs that reflect the Company’s significant market assumptions. The Company measures certain assets and liabilities at fair value on a recurring basis, including investment securities classified as available-for-sale, cash equivalents and other invested assets. Following is a brief description of the type of valuation information that qualifies as a financial asset or liability for each level:

	Level 1 — Unadjusted quoted market prices for identical assets or liabilities in active markets which are accessible by the Company.

	Level 2 — Observable prices in active markets for similar assets or liabilities. Prices for identical or similar assets or liabilities in markets that are not active. Directly observable market inputs for substantially the full term of the asset or liability, e.g., interest rates and yield curves at commonly quoted intervals, volatilities, prepayment speeds, default rates, and credit spreads. Market inputs that are not directly observable, but are derived from or corroborated by observable market data.

	Level 3 — Unobservable inputs based on the Company’s own judgment as to assumptions a market participant would use, including inputs derived from extrapolation and interpolation that are not corroborated by observable market data.

	The Company evaluates the various types of financial assets and liabilities to determine the appropriate fair value hierarchy based upon trading activity and the observation of market inputs. The Company employs control processes to validate the reasonableness of the fair value estimates of its assets and liabilities, including those estimates based on prices and quotes obtained from independent third-party sources. The Company’s procedures generally include, but are not limited to, initial and ongoing evaluation of methodologies used by independent third-parties and additional pricing services are used as a comparison to determine the reasonableness of fair values used in pricing the investment portfolio.

	The Company recognizes transfers between levels at the actual date of the event or change in circumstances that caused the transfer.

	Where possible, the Company utilizes quoted market prices to measure fair value. For assets and liabilities that have quoted market prices in active markets, the Company uses the quoted market prices as fair value and includes these prices in the amounts disclosed in Level 1 of the hierarchy. When quoted market prices in active markets are unavailable, the Company determines fair values based on independent external valuation information obtained from independent pricing services, which utilize various models and valuation techniques based on a range of inputs including pricing models, quoted market prices of publicly traded securities with similar duration and yield, time value, yield curve, prepayment speeds, default rates and discounted cash flows. In most cases, these estimates are determined based on independent third-party valuation information, and the amounts are disclosed as Level 2 or Level 3 of the fair value hierarchy depending on the level of observable market inputs.



	Financial assets measured at fair value on a recurring basis

	The following table provides information as of December 31, 2013 about the Company’s financial assets measured at fair value on a recurring basis (in thousands):



			Total			Quoted			Significant			Significant
						Prices in			Other			Unobservable
						Active			Observable			Inputs
						Markets			Inputs			(Level 3)
						(Level 1)			(Level 2)
	U.S. Treasury and government agencies		$	17,834		$	17,834		$	—		$	—
	Mortgage-backed securities			3,980			—			3,980			—
	States and political subdivisions			3,333			—			3,333			—
	Corporate debt securities			32,283			—			32,283			—
	Certificates of deposit			4,891			—			4,891			—

	Total investment securities			62,321			17,834			44,487			—
	Other invested assets			4,085			—			—			4,085

	Total assets		$	66,406		$	17,834		$	44,487		$	4,085


	The following table provides information as of December 31, 2012 about the Company’s financial assets measured at fair value on a recurring basis (in thousands):



			Total			Quoted			Significant			Significant
						Prices in			Other			Unobservable
						Active			Observable			Inputs
						Markets			Inputs			(Level 3)
						(Level 1)			(Level 2)
	U.S. Treasury and government agencies		$	11,466		$	11,466		$	—		$	—
	States and political subdivisions			3,639			—			3,639			—
	Corporate debt securities			19,369			—			19,369			—
	Certificates of deposit			13,274			—			13,274			—

	Total investment securities			47,748			11,466			36,282			—
	Other invested assets			3,390			—			—			3,390

	Total assets		$	51,138		$	11,466		$	36,282		$	3,390


	Level 1 Financial assets

Financial assets classified as Level 1 in the fair value hierarchy include U.S. Treasury and government agencies securities. These securities are actively traded and the Company estimates the fair value of these securities using unadjusted quoted market prices.

Level 2 Financial assets

Financial assets classified as Level 2 in the fair value hierarchy include mortgage-backed securities, tax-exempt securities, corporate bonds and certificates of deposit. The fair value of these securities is determined based on observable market inputs provided by independent third-party pricing services. To date, the Company has not experienced a circumstance where it has determined that an adjustment is required to a quote or price received from independent third-party pricing sources. To the extent the Company determines that a price or quote is inconsistent with actual trading activity observed in that investment or similar investments, the Company would determine a fair value using this observable market information and disclose the occurrence of this circumstance. All of the fair values of securities disclosed in Level 2 are estimated based on independent third-party pricing services.

Level 3 Financial assets

At December 31, 2013, the Company’s Level 3 financial assets include an investment in a hedge fund, which is presented as other invested assets in the consolidated balance sheets. The Company elected the fair value option for its investment in the hedge fund and measures the fair value of the hedge fund on the basis of the net asset value of the fund as reported by the fund manager. The hedge fund is primarily invested in residential mortgage-backed securities and other asset-backed securities which are recorded at fair value as determined by the fund manager. Such fair value determination is based on quoted marked prices, bid prices, or the fund manager’s proprietary valuation models where quoted prices are unavailable or deemed to be inadequately representative of fair value. Significant decreases in the fair value of the underlying securities in the hedge fund would result in a significantly lower fair value measurement of other invested assets as reported in the consolidated balance sheets.

Fair value measurements for assets in Level 3 for the year ended December 31, 2013 were as follows (in thousands):



		Fair Value Measurements
		Using Significant
		Unobservable Inputs
		(Level 3)
		Other Invested Assets
Balance at January 1, 2013		$	3,390
Transfers into Level 3			—
Total gains included in earnings as net investment income			695
Settlements			—

Balance at December 31, 2013		$	4,085


Fair value measurements for assets in Level 3 for the year ended December 31, 2012 were as follows (in thousands):



		Fair Value Measurements
		Using Significant
		Unobservable Inputs
		(Level 3)
		Other Invested Assets
Balance at January 1, 2012		$	2,898
Transfers into Level 3			—
Total gains included in earnings as net investment income			492
Settlements			—

Balance at December 31, 2012		$	3,390


The Company did not have any transfers between Levels 1 and 2 during the years ended December 31, 2013 or 2012.



Financial Instruments Disclosed, But Not Carried, At Fair Value

Fair values represent the Company’s best estimates and may not be substantiated by comparisons to independent markets and, in many cases, could not be realized in immediate settlement of the instruments.

The following table presents the carrying value and estimated fair value of the Company’s financial assets and liabilities disclosed, but not carried, at fair value at December 31, 2013 and the level within the fair value hierarchy (in thousands):



		Carrying			Estimated			Level 1			Level 2			Level 3
		Value			Fair Value			Level 1			Level 2			Level 3
Assets:
Cash and cash equivalents		$	44,569		$	44,569		$	44,569		$	—		$	—
Fiduciary and restricted cash			1,369			1,369			1,369			—			—

Total		$	45,938		$	45,938		$	45,938		$	—		$	—

Liabilities:
Notes payable		$	76,828		$	13,181		$	—		$	—		$	13,181
Senior secured credit facility			33,523			34,476			—			—			34,476
Subordinated secured credit facility			13,650			11,723			—			—			11,723
Mortgage payable			3,562			3,562			—			—			3,562

Total		$	127,563		$	62,942		$	—		$	—		$	62,942


The following table presents the carrying value and estimated fair value of the Company’s financial assets and liabilities disclosed, but not carried, at fair value at December 31, 2012 and the level within the fair value hierarchy (in thousands):



		Carrying			Estimated			Level 1			Level 2			Level 3
		Value			Fair Value			Level 1			Level 2			Level 3
Assets:
Cash and cash equivalents		$	38,176		$	38,176		$	38,176		$	—		$	—
Fiduciary and restricted cash			569			569			569			—			—

Total		$	38,745		$	38,745		$	38,745		$	—		$	—

Liabilities:
Notes payable		$	76,842		$	7,655		$	—		$	—		$	7,655
Senior secured credit facility			99,323			55,002			—			—			55,002

Total		$	176,165		$	62,657		$	—		$	—		$	62,657


The fair values of the notes payable, the senior secured credit facilities and the subordinated secured credit facility were estimated using discounted cash flow analyses prepared by a third-party valuation source based on inputs and assumptions, such as credit and default risk associated with the debt. The mortgage payable is reported at par value which approximates its fair value due to its short-term nature.

Statutory_Financial_Informatio

Statutory Financial Information and Accounting Policies	12 Months Ended
Statutory Financial Information and Accounting Policies	Dec. 31, 2013
Statutory Financial Information and Accounting Policies	'

	24. Statutory Financial Information and Accounting Policies

	The Company’s insurance subsidiaries are required to file statutory-basis financial statements with state insurance departments in all states where they are licensed. These statements are prepared in accordance with accounting practices prescribed or permitted by the applicable state of domicile. Each state of domicile requires that insurance companies domiciled in those states prepare their statutory-basis financial statements in accordance with the National Association of Insurance Commissioners Accounting Principles and Procedures Manual subject to any deviations prescribed or permitted by the insurance commissioner in each state of domicile.

	Affirmative Insurance Company of Michigan (AIC of Michigan), USAgencies Casualty Insurance Company, Inc. (Casualty), and USAgencies Direct Insurance Company (Direct) are wholly-owned subsidiaries of AIC and are included as common stock investments on AIC’s balance sheet in its statutory surplus. In November 2012, a former subsidiary of AIC, Insura Property and Casualty Company was merged into AIC and Direct was sold from AIC to Casualty. The following table summarizes selected statutory information of the Company’s insurance subsidiaries ended December 31 (in thousands):



		December 31,
		2013			2012			2011
	Statutory capital and surplus:
	Affirmative Insurance Company (AIC)	$	46,291		$	48,115		$	69,158
	Affirmative Insurance Company of Michigan (AIC of Michigan)		9,211			9,206			9,213
	USAgencies Casualty Insurance Company, Inc (Casualty)		25,728			24,258			32,780
	USAgencies Direct Insurance Company (Direct)		5,300			5,273			5,259




		Year Ended December 31,
		2013			2012			2011
	Statutory net income (loss):
	Affirmative Insurance Company	$	(11,343	)	$	(20,786	)	$	(11,957	)
	Affirmative Insurance Company of Michigan		4			(7	)		85
	USAgencies Casualty Insurance Company, Inc.		731			1,128			1,226
	USAgencies Direct Insurance Company		28			15			12

	The amount of statutory capital and surplus necessary for AIC to satisfy regulatory requirements as of December 31, 2013 was $30.5 million. The statutory capital and surplus of each of the Company’s insurance subsidiaries exceeded the highest level of minimum regulatory required capital as of December 31, 2013, 2012 and 2011.

Unaudited_Quarterly_Financial_

Unaudited Quarterly Financial Data	12 Months Ended
Unaudited Quarterly Financial Data	Dec. 31, 2013
Unaudited Quarterly Financial Data	'
	25. Unaudited Quarterly Financial Data
	The following is a summary of the Company’s unaudited quarterly consolidated results from continuing operations for the years ended December 31, 2013 and 2012 (in thousands, except per share data):


		Quarter Ended
		March 31			June 30			September 30			December 31
	2013:00:00
	Net premiums earned	$	41,332		$	49,658		$	30,802		$	43,891
	Total revenues		63,818			72,780			53,310			56,216
	Net losses and loss adjustment expenses		31,563			38,243			33,725			44,287
	Net income (loss)		(6,251	)		1,485			47,618			(12,134	)
	Diluted income (loss) per common share		(0.41	)		0.1			3.02			(0.76	)
	Diluted weighted-average common shares		15,408			15,408			15,772			15,941
	2012:00:00
	Net premiums earned	$	34,181		$	34,935		$	35,261		$	39,359
	Total revenues		51,451			51,759			51,155			55,396
	Net losses and loss adjustment expenses		25,670			26,719			25,397			34,072
	Net income (loss)		(8,480	)		(5,695	)		(29,458	)		(8,280	)
	Diluted loss per common share		(0.55	)		(0.37	)		(1.91	)		(0.54	)
	Diluted weighted-average common shares		15,408			15,408			15,408			15,408

Parent_Company_Financials

Parent Company Financials	12 Months Ended
Parent Company Financials	Dec. 31, 2013
Parent Company Financials	'
	26. Parent Company Financials

	The condensed financial information of the parent company, Affirmative Insurance Holdings, Inc. as of December 31, 2013 and 2012, and for each of the three years ended December 31, 2013, 2012 and 2011 is presented as follows (in thousands, except share data):

	Condensed Balance Sheets




			2013				2012
	Assets
	Cash and cash equivalents		$	1,012			$	17
	Fiduciary and restricted cash			319				165
	Investment in subsidiaries			106,446				140,684
	Income taxes receivable			—				150
	Other intangible assets, net			273				273
	Other assets			21,903				4,204

	Total assets		$	129,953			$	145,493

	Liabilities and Stockholders’ Deficit
	Liabilities:
	Payable to subsidiaries		$	120,441			$	119,629
	Income taxes payable			3,641				—
	Debt			103,875				156,025
	Other liabilities			4,888				3,093

	Total liabilities			232,845				278,747

	Stockholders’ deficit:
	Common stock, $0.01 par value; 75,000,000 shares authorized; 18,202,221 shares issued and 15,408,358 shares outstanding at December 31, 2013 and 2012			182				182
	Additional paid-in capital			167,049				166,749
	Treasury stock, at cost (2,793,863 shares at December 31, 2013 and 2012)			(32,910	)			(32,910	)
	Accumulated other comprehensive loss			(1,654	)			(998	)
	Retained deficit			(235,559	)			(266,277	)

	Total stockholders’ deficit			(102,892	)			(133,254	)

	Total liabilities and stockholders’ deficit		$	129,953			$	145,493



	Condensed Statements of Operations




			Year Ended December 31,
			2013				2012				2011
	Revenues
	Dividends from subsidiaries		$	6,700			$	14,714			$	26,613
	Gain on sale of retail business			64,971				—				—
	Net investment income			5				—				—

	Total revenues			71,676				14,714				26,613

	Expenses
	Operating expenses			(57	)			352				581
	Loss on extinguishment of debt			4,193				—				—
	Loss on interest rate swaps			—				—				2
	Interest expense			19,115				17,616				18,992
	Goodwill and other intangible assets impairment			—				1,398				8,357

Total expenses			23,251				19,366				27,932

Income (loss) before income taxes and equity interest in subsidiaries			48,425				(4,652	)			(1,319	)
Income tax expense (benefit)			(14,587	)			2,447				1,545
Equity interest in undistributed loss of subsidiaries			(32,294	)			(44,814	)			(159,734	)

Net income (loss)		$	30,718			$	(51,913	)		$	(162,598	)

Condensed Statements of Cash Flows




		Year Ended December 31,
		2013				2012				2011
Net cash used in operating activities		$	(24,423	)		$	(16,683	)		$	(17,679	)

Cash flows from investing activities
Dividends received from subsidiaries			6,700				14,714				26,613
Proceeds from sale of retail business, net			84,270				—				—

Net cash provided by investing activities			90,970				14,714				26,613

Cash flows from financing activities
Borrowings under senior secured credit facility effective January 2007			12,500				5,500				—
Borrowings under credit facilities effective September 2013			48,000				—				—
Principal payments on senior secured credit facility effective September 2013			(5,000	)			—				—
Principal payments on senior secured credit facility effective January 2007			(120,192	)			(3,530	)			(9,762	)
Debt issuance costs paid			(860	)			—				(769	)
Acquisition of treasury stock			—				—				(4	)

Net cash provided by (used in) financing activities			(65,552	)			1,970				(10,535	)

Net increase (decrease) in cash and cash equivalents			995				1				(1,601	)
Cash and cash equivalents at beginning of year			17				16				1,617

Cash and cash equivalents at end of year		$	1,012			$	17			$	16

Summary_of_Significant_Account1

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2013
Basis of Presentation	'
	Basis of Presentation • The consolidated financial statements include the accounts of Affirmative Insurance Holdings, Inc. and its subsidiaries (together the Company), and have been prepared in accordance with U.S. generally accepted accounting principles (GAAP). All material intercompany transactions and balances have been eliminated in consolidation.
	Certain prior year amounts have been reclassified to conform to the current presentation.
Use of Estimates	'
	Use of Estimates • The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. These estimates and assumptions are particularly important in determining reserves for losses and loss adjustment expenses, deferred policy acquisition costs, reinsurance receivables, valuation of investments, other intangible assets, and deferred income taxes.
Cash and Cash Equivalents	'*Cash and Cash Equivalents* • Cash and cash equivalents are highly liquid investments with an original maturity of ninety days or less and include principally money market funds, repurchase agreements, and other bank deposits. Unless the right-of-setoff requirements have been met, bank overdrafts or negative book cash balances, if material, are recorded in other liabilities in the consolidated balance sheet. As of December 31, 2013 and 2012, $1.6 million and $4.5 million negative book cash balance was reflected in other liabilities in the consolidated balance sheets, respectively.
Fiduciary and Restricted Cash	'
	Fiduciary and Restricted Cash • Fiduciary and restricted cash consists of non-operating certificates of deposit required by state regulations and/or under various agreements with third parties.
Investments	'
	Investments • Investment securities consist of debt securities, and are recorded at fair value on the consolidated balance sheet. These investments are classified as available-for-sale, based on management’s intent and ability to hold to maturity. Unrealized gains and losses are recorded in accumulated other comprehensive income (loss), a separate component of stockholders’ deficit. No income tax effect of unrealized gains and losses is reflected in other comprehensive income (loss) due to the Company carrying a full deferred tax valuation allowance. The Investment Committee periodically reviews investment portfolio results and evaluates strategies to maximize yields, to match maturity durations with anticipated needs, and to maintain compliance with investment guidelines.
	Fair value is based on quoted prices in active markets or third-party valuation sources when observable market prices are not available. Gains and losses realized on the disposition of investment securities are determined on the specific-identification basis and credited or charged to income. Premium and discount on investment securities are amortized and accreted using the interest method and charged or credited to investment income.
	Other invested assets is comprised of an investment in a hedge fund, which primarily invests in mortgage-backed securities with the strategy of seeking attractive yields on commercial and residential mortgage-backed securities. The Company elected the fair value option for its investment in the hedge fund and measures the fair value of this investment using the net asset value of the fund as reported by the fund manager. The financial statements of the hedge fund are subject to annual audits evaluating the net asset positions of the underlying investments. The fair value is included in the Level 3 fair value hierarchy. The Company records changes in the value of its other invested assets as a component of net investment income.
	Investments are considered to be impaired when a decline in fair value is judged to be other-than-temporary. On a quarterly basis, the Company considers available quantitative and qualitative evidence in evaluating potential impairment of its investments. If the cost of an investment exceeds its fair value, the Company evaluates, among other factors, general market conditions, the duration and extent to which the fair value is less than cost. If the fair value of a debt security is less than its amortized cost basis, an other-than-temporary impairment may be triggered in circumstances where (1) an entity has an intent to sell the security, (2) it is more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis, or (3) the entity does not expect to recover the entire amortized cost basis of the security (that is, a credit loss exists). Other-than-temporary impairments are separated into amounts representing credit losses which are recognized in earnings and amounts related to all other factors which are recognized in other comprehensive income (loss). The Company also considers potential adverse conditions related to the financial health of the issuer based on rating agency actions.
Premium Finance Receivable	'
	Premium Finance Receivable • Prior to the sale of the retail agency distribution business on September 30, 2013, the Company recognized interest and origination fees from finance receivables over the term of the finance contract. Late fee revenue was recognized when received. Premium finance receivables were secured by the underlying unearned policy premiums for which the Company obtained assignment from the policyholder in the event of non-payment. When a payment became past due, the Company canceled the underlying policy with the insurance carrier and received the unearned premium to clear unpaid principal and interest. The loan was closed by writing off any uncollected amounts or refunding any overpayment to the customer.
Amounts Due from/to Reinsurers	'
	Amounts Due from/to Reinsurers • The Company collects premiums from insureds and after deducting its authorized commissions, the Company remits these premiums to the appropriate reinsurance companies. The Company’s obligation to remit these premiums is recorded as amounts due reinsurers in its consolidated balance sheet. The Company records the amounts it expects to receive from reinsurers for paid and unpaid losses as an asset on its consolidated balance sheet.
Deferred Policy Acquisition Costs, net of ceding commission	'
	Deferred Policy Acquisition Costs, net of ceding commission • Deferred policy acquisition costs represent the deferral of expenses that the Company incurs in the successful acquisition of new business or renewal of existing insurance policies. Policy acquisition costs, consisting of primarily commissions and premium taxes, net of ceding commission income, are deferred and charged against income ratably over the terms of the related policies. The Company regularly reviews the categories of acquisition costs that are deferred and assesses the recoverability of this asset. A premium deficiency, and a corresponding charge to income, is recognized if the sum of the expected losses and loss adjustment expenses, unamortized acquisition costs, and maintenance costs exceeds related unearned premiums and anticipated investment income. Amounts received as ceding commissions on reinsurance contracts are recorded as reductions of deferred acquisition costs and are recognized into income ratably as the related ceded premium is earned. Amortization of deferred policy acquisition costs is recorded in selling, general and administrative expenses in the consolidated statement of operations.
Property and Equipment, Net	'
	Property and Equipment, Net • Property and equipment is stated at cost, less accumulated depreciation. Depreciation is recognized using the straight-line method over the estimated useful lives of the Company’s assets, typically ranging from three to eight years. Leasehold improvements are depreciated over the shorter of the estimated useful lives of the assets or the remainder of the lease term.
Other Intangible Assets, Net	'

	Other Intangible Assets, Net • Other intangible assets with indefinite useful lives are tested for impairment annually as of September 30 or more frequently if events or changes in circumstances indicate that the assets might be impaired.

	Identifiable intangible assets consist of state insurance company licenses and brand names prior to the sale of the retail agency distribution business on September 30, 2013. The Company reviews such intangibles for impairment whenever an impairment indicator exists. Management continually monitors events and changes in circumstances that could indicate carrying amounts of long-lived assets, including intangible assets, may not be recoverable. When such events or changes in circumstances occur, management assesses recoverability by determining whether the carrying value of such assets will be recovered through the undiscounted expected future cash flows. If the future undiscounted cash flows are less than the carrying amount of these assets, an impairment loss is recognized based on the excess of the carrying amount over the fair value of the assets.
Variable Interest Entities	'

	Variable Interest Entities • Affirmative Insurance Holdings Statutory Trust I (“Trust I”), is an unconsolidated trust subsidiary, for the sole purpose of issuing $30.0 million trust preferred securities in 2004. Trust I used the proceeds from the sale of these securities and the Company’s initial capital contribution to purchase $30.9 million of subordinated debt securities from the Company. The debt securities are the sole assets of Trust I, and the payments under the debt securities are the sole revenues of Trust I. The Company’s initial capital contribution consisted of the purchase of 928,000 common securities issued by Trust I for $928,000, which represented 3% of the total dollar amount of subordinated debentures issued.

	Affirmative Insurance Holdings Statutory Trust II (“Trust II”), is an unconsolidated trust subsidiary, for the sole purpose of issuing $25.0 million trust preferred securities in 2005. Trust II used the proceeds from the sale of these securities and the Company’s initial capital contribution to purchase $25.8 million of subordinated debt securities from the Company. The debt securities are the sole assets of Trust II, and the payments under the debt securities are the sole revenues of Trust II. The Company’s initial capital contribution consisted of the purchase of 774,000 common securities issued by Trust II for $774,000, which represented 3% of the total dollar amount of subordinated debentures issued.



	The investment in the common securities totaling $1.7 million is reflected in other assets in the Company’s consolidated balance sheets. The subordinated debentures totaling $56.7 million are included in debt in the Company’s consolidated balance sheets.

	Management evaluates on an ongoing basis the Company’s investments in Trust I and II (collectively the “Trusts”) and continue to conclude that, while the Trusts continue to be variable interest entities (“VIE’s”), the Company is not the primary beneficiary. Therefore, the Trusts are not included in the Company’s consolidated financial statements.
Reserves for Losses and Loss Adjustment Expenses	'
	Reserves for Losses and Loss Adjustment Expenses • The Company maintains reserves for the estimated ultimate liability for unpaid losses and loss adjustment expenses related to incurred claims and estimates of unreported claims. The estimation of the ultimate liability for unpaid losses and loss adjustment expenses is based on projections developed by the Company’s actuaries using analytical methodologies commonly used in the property-casualty insurance industry. Liabilities for unpaid claims and for expenses of investigation and adjustment of unpaid claims are based on: (1) the accumulation of estimates of individual claims for losses reported prior to the close of the accounting period; (2) estimates received from ceding companies, reinsurers and insurance pools and associations; (3) estimates of unreported losses based on past experience; (4) estimates based on past experience of expenses for investigating and adjusting claims; and (5) estimates of subrogation and salvage collections. Management periodically adjusts the losses and loss adjustment expense reserves for changes in product mix, underwriting standards, loss cost trends and other factors. Losses and loss adjustment expense reserves may also be impacted by factors such as the rate of inflation, claims settlement patterns, litigation and legislative and regulatory activities. Unpaid losses and loss adjustment expenses have not been reduced for amounts recoverable from reinsurers. Changes in estimates of liabilities for unpaid losses and loss adjustment expenses are reflected in the consolidated statement of operations in the period in which determined. Ultimately, the actual losses and loss adjustment expenses may differ materially from recorded estimates.
Treasury Stock	'
	Treasury Stock • Treasury stock purchases are accounted for using the cost method, whereby the entire cost of the acquired stock is recorded as treasury stock. When reissued, shares of treasury stock will be removed from the treasury stock account at the average purchase price per share of the aggregate treasury shares held.
Revenue Recognition	'

	Revenue Recognition • Premium income — Premiums, net of premiums ceded, is earned over the life of the underlying policies. Unearned premiums represent that portion of premiums written that are applicable to the unexpired terms of policies in force. Premiums receivable are recorded net of an estimated allowance for uncollectible amounts.

	Commission income — Represents revenues from the retail agency business prior to being sold on September 30, 2013. Commission income and related policy fees, written for third-party insurance companies, are recognized, net of an allowance for estimated policy cancellations, at the date the customer is initially billed or as of the effective date of the insurance policy, whichever is later. Commissions on premium endorsements are recognized when premiums are processed. The allowance for estimated third-party cancellations is periodically evaluated and adjusted as necessary.

	Profit-sharing commissions, which enable the Company to collect commission income and fees in excess of provisional commissions, are recorded when it is probable that estimates of loss ratios will be below the levels stated in the Company’s agency contracts. Provisional commissions may be reduced when it is probable that estimates of loss ratios will be above the levels stated in the related agency contract.

	Fee Income — Policy origination fees and installment fees compensate the Company for the costs of policy administration and providing installment payment plans. Policy origination fees are recognized over the underlying policy terms. Other fees are recognized when services are provided.



	Agency Fees — Represents revenues from the retail agency business prior to being sold on September 30, 2013. These fees compensated the Company for the costs of policy cancellation, policy rewrite and reinstatement and were recognized when the services were provided. Premium finance and origination fees were recognized over the term of the finance contracts.

	Managing general agent revenue — Revenues earned for business produced for a Texas county mutual insurance agency beginning January 1, 2013. The Company receives compensation for distribution and underwriting services and providing claims handling on the business. Revenue for distribution and underwriting services are recognized, net of an allowance for estimated policy cancellations, at the date the customer is initially billed or as of the effective date of the insurance policy, whichever is later. Claims handling revenue is recognized as the services are provided.
Accounting and Reporting for Reinsurance	'
	Accounting and Reporting for Reinsurance • Income and expense on reinsurance contracts are recognized principally over the term of the reinsurance contracts or until the reinsurers maximum liability is exhausted, whichever comes first. Reinsurance contracts do not relieve the Company from its obligations to policyholders. The Company continually monitors reinsurers to minimize the exposure to significant losses from reinsurer insolvencies. The Company only cedes risks to reinsurers whom it believes to be financially sound.
Stock-Based Compensation	'
	Stock-Based Compensation • Compensation cost is measured based on the grant-date fair value of an award utilizing the assumptions discussed in Note 17. Compensation cost is recognized for financial reporting purposes on a straight-line basis over the period in which the employee is required to provide service in exchange for the award.
Income Taxes	'
	Income Taxes • The Company accounts for income taxes under the asset and liability method. Under this method, deferred income taxes are recognized for temporary differences between the financial statement and tax return bases of assets and liabilities. Recorded amounts are adjusted to reflect changes in income tax rates for the period in which the change is enacted. Any resulting future tax benefits are recognized to the extent that realization of such benefits is more likely than not, and a valuation allowance is established for any portion of a deferred tax asset that management believes will not be realized. While the Company typically does not incur significant interest or penalties on income tax liabilities, the Company’s policy is to classify such amounts as income tax expense on the consolidated statement of operations.
Net Income (Loss) Per Common Share	'
	Net Income (Loss) Per Common Share • Basic net income (loss) per common share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the year. Diluted net income (loss) per share is computed by giving effect to the potential dilution that could occur if securities or other contracts to issue common shares were exercised and converted into common shares during the year.
Fair Value of Financial Instruments	'
	Fair Value of Financial Instruments • The Company determines fair value for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value, the Company considers the principal or most advantageous market in which the Company would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions and credit risk.
Segment Reporting	'
	Segment Reporting • The Company’s operations consist of designing, underwriting and servicing non-standard personal automobile insurance policies. The Company is a holding company, with no operating revenues and only interest expense on corporate debt. The Company’s subsidiaries consist of several types of legal entities: insurance companies, an underwriting agency and a service company from which all employees are paid. Insurance subsidiaries possess the certificates of authority and capital necessary to transact insurance business and issue policies, but they rely on both affiliated and an unaffiliated underwriting agency to design, distribute and service those policies. Underwriting agencies primarily design, distribute and service policies issued or reinsured by the Company’s insurance subsidiaries and that are distributed by independent agents. Given the homogeneity of the Company’s products, the regulatory environments in which the Company operates, the nature of the Company’s customers and distribution channels, Company management monitors, controls and manages the business as an integrated entity offering non-standard personal automobile insurance products through multiple distribution channels.
Statutory Accounting Practices	'
	Statutory Accounting Practices • The Company’s insurance subsidiaries are required to report results of operations and financial position to insurance regulatory authorities based upon statutory accounting principles (SAP). The more significant differences between SAP and GAAP are as follows:

		•	Under SAP, all sales and other policy acquisition costs are expensed as they are incurred rather than capitalized and amortized over the expected life of the policy as required by GAAP. The immediate charge off of sales and acquisition expenses and other conservative valuations under SAP generally cause a lag between the sale of a policy and the emergence of reported earnings. Since this lag can reduce income from operations on a SAP basis, it can have the effect of reducing the amount of funds available for dividends from insurance companies.

		•	Under SAP, certain assets, including deferred taxes, are designated as “non-admitted” and are charged directly to unassigned surplus, whereas under GAAP, such assets are included in the consolidated balance sheet net of an appropriate valuation allowance.

		•	SAP requires available-for-sale investments generally be carried at amortized book value while GAAP requires available-for-sale investments be carried at fair value.
Recently Adopted Accounting Standards	'
	Recently Adopted Accounting Standards • Accounting Standards Update (ASU) 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, requires disclosure of amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present either on the face of the statement of operations or in the notes to the financial statements, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income, but only if the amount reclassified is required to be reclassified to net income in its entirety in the same reporting period. This ASU is effective prospectively for annual and interim periods beginning after December 15, 2012. The adoption of this standard did not have an impact on our consolidated financial position, results of operations or cash flows.
	ASU 2012-02, Intangibles-Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment, provides companies with the option to assess qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that the indefinite-lived intangible asset is impaired. If the Company concludes that it is more likely than not that the asset is impaired, it is required to determine the fair value of the intangible asset and perform a quantitative impairment test by comparing the fair value with the carrying value in accordance with Topic 350. If the Company concludes otherwise, no further quantitative assessment is required. This standard was effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. The adoption of this standard did not have a material impact on our consolidated financial position, results of operations or cash flows.

Sale_of_the_Retail_Business_Ta

Sale of the Retail Business (Tables)	12 Months Ended
Sale of the Retail Business (Tables)	Dec. 31, 2013
Component of Net Assets Sold	'
	The net assets sold consisted of (in thousands):


		September 30,
		2013
	Assets
	Cash and cash equivalents	$	2,529
	Premium finance and commission receivable		47,847
	Other intangible assets		12,764
	Other assets		3,709

	Total Assets	$	66,849

	Liabilities
	Due to third-party carriers	$	24,456
	Other liabilities		5,419

	Total Liabilities		29,875
	Net Assets	$	36,974

Availableforsale_Investment_Se1

Available-for-sale Investment Securities (Tables)	12 Months Ended
Available-for-sale Investment Securities (Tables)	Dec. 31, 2013
Summary of Available-for-Sale Securities	'
	The amortized cost, gross unrealized gains (losses), and estimated fair value of the Company’s available-for-sale securities at December 31, 2013 and 2012, were as follows (in thousands):


		Amortized			Gross			Gross			Estimated
		Cost			Unrealized			Unrealized			Fair Value
					Gains			Losses
	December 31, 2013
	U.S. Treasury and government agencies	$	17,830		$	55		$	(51	)	$	17,834
	Mortgage-backed securities		4,023			4			(47	)		3,980
	States and political subdivisions		3,265			68			—			3,333
	Corporate debt securities		32,458			135			(310	)		32,283
	Certificates of deposit		4,860			32			(1	)		4,891

	Total	$	62,436		$	294		$	(409	)	$	62,321

	December 31, 2012
	U.S. Treasury and government agencies	$	11,354		$	112		$	—		$	11,466
	States and political subdivisions		3,535			107			(3	)		3,639
	Corporate debt securities		19,108			262			(1	)		19,369
	Certificates of deposit		13,210			65			(1	)		13,274

	Total	$	47,207		$	546		$	(5	)	$	47,748

Major Categories of Net Investment Income	'
	Major categories of net investment income for the years ended December 31 were as follows (in thousands):


		2013			2012			2011
	Available-for-sale investment securities	$	769		$	1,520		$	3,818
	Rental income from investment in real property		2,390			2,410			2,388
	Income from investment in hedge fund		695			492			334
	Cash and cash equivalents		155			3			—

			4,009			4,425			6,540
	Less investment expense		(1,288	)		(1,320	)		(1,548	)

	Net investment income	$	2,721		$	3,105		$	4,992

Gross Realized Gains and Losses on Available-for-Sale Investment	'
	Gross realized gains and losses on available-for-sale investments for the years ended December 31 were as follows (in thousands):


		2013			2012			2011
	Gross gains	$	58		$	1,025		$	267
	Gross losses		(9	)		(137	)		(188	)

	Total	$	49		$	888		$	79

Summary of Available-for-sale Securities in Unrealized Loss Position	'

	The following table summarizes the Company’s available-for-sale securities in an unrealized loss position at December 31, 2013 and 2012, the estimated fair value and amount of gross unrealized losses, aggregated by investment category and length of time those securities have been continuously in an unrealized loss position (in thousands):



		December 31, 2013
		Less Than Twelve						Twelve Months or						Total
		Months						Greater						Total
		Estimated			Gross			Estimated			Gross			Estimated		Gross
		Fair			Unrealized			Fair			Unrealized			Fair		Unrealized
		Value			Losses			Value			Losses			Value		Losses
	U.S. Treasury and government agencies	$	13,220		$	(51	)	$	—		$	—		$	13,220	$	(51	)
	Mortgage-backed securities		3,403			(47	)		—			—			3,403		(47	)
	Corporate debt securities		23,410			(310	)		—			—			23,410		(310	)
	Certificates of deposit		849			(1	)		—			—			849		(1	)

	Total	$	40,882		$	(409	)	$	—		$	—		$	40,882	$	(409	)




		December 31, 2012
		Less Than Twelve						Twelve Months or						Total
		Months						Greater						Total
		Estimated			Gross			Estimated			Gross			Estimated		Gross
		Fair			Unrealized			Fair			Unrealized			Fair		Unrealized
		Value			Losses			Value			Losses			Value		Losses
	States and political subdivisions	$	—		$	—		$	71		$	(3	)	$	71	$	(3	)
	Corporate debt securities		979			(1	)		—			—			979		(1	)
	Certificates of deposit		499			(1	)		—			—			499		(1	)

	Total	$	1,478		$	(2	)	$	71		$	(3	)	$	1,549	$	(5	)

Fixed income securities	'
Summary of Available-for-Sale Securities	'
	The Company’s amortized cost and estimated fair values of fixed-income securities at December 31, 2013 by contractual maturity were as follows (in thousands):


		Amortized			Estimated Fair
		Cost			Value
	Fixed maturities:
	Due in one year or less	$	21,750		$	21,819
	Due after one year through five years		30,686			30,618
	Due after five years through ten years		5,977			5,904
	Mortgage-backed securities		4,023			3,980

	Total	$	62,436		$	62,321

Reinsurance_Tables

Reinsurance (Tables)	12 Months Ended
Reinsurance (Tables)	Dec. 31, 2013
Effect of Reinsurance on Premiums Written and Earned	'
	The effect of reinsurance on premiums written and earned was as follows (in thousands):


		Year Ended December 31,
		2013						2012						2011
		Written			Earned			Written			Earned			Written			Earned
	Direct	$	304,007		$	284,479		$	198,359		$	185,546		$	193,528		$	220,156
	Reinsurance assumed		(11,812	)		—			38,663			36,718			35,701			41,933
	Reinsurance ceded		(163,549	)		(118,796	)		(66,482	)		(78,528	)		(88,065	)		(85,540	)

	Total	$	128,646		$	165,683		$	170,540		$	143,736		$	141,164		$	176,549

Selling, General and Administrative Expenses	'
	Ceding commissions recognized, reflected as a reduction of selling, general and administrative expenses, were as follows (in thousands):


		Year Ended December 31,
		2013			2012			2011
	Selling, general and administrative expenses	$	(29,716	)	$	(26,676	)	$	(24,026	)

Amount of Loss Reserves and Unearned Premium	'
	The amount of loss reserves and unearned premium the Company would remain liable for in the event its reinsurers are unable to meet their obligations were as follows (in thousands):


		December 31,			December 31,
		2013			2012
	Losses and loss adjustment expense reserves	$	72,366		$	67,166
	Unearned premium reserve		69,381			24,628

	Total	$	141,747		$	91,794

Ceded Incurred Losses and Loss Adjustment expenses	'
	The following table summarizes the ceded incurred losses and loss adjustment expenses (consisting of ceded paid losses and loss adjustment expenses and change in reserves for loss and loss adjustment expenses ceded) to various reinsurers (in thousands):


		Year Ended December 31,
		2013			2012			2011
	Paid losses and loss adjustment expenses ceded	$	74,903		$	61,186		$	55,197
	Change in reserves for loss and loss adjustment expenses ceded		5,200			(11,344	)		(14,574	)

	Incurred losses and loss adjustment expenses ceded	$	80,103		$	49,842		$	40,623

Ceded Premiums Written and Ceded Loss and Loss Adjustment Expenses	'
	The table below presents the ceded premiums written and ceded loss and loss adjustment expenses to the MCCA for the year ended December 31, 2012 and 2011 (in thousands):


		2012			2011
	Ceded premiums written	$	—		$	528

	Ceded loss and loss adjustment expenses	$	(158	)	$	(16,071	)

Amount of Receivables Due from Reinsurers	'
	The table below presents the total amount of receivables due from reinsurers as of December 31, 2013 and 2012 (in thousands):


		December 31,			December 31,
		2013			2012
	Quota-share reinsurer for agreements effective September 1, 2011 and March 31, 2013	$	91,879		$	53,195
	Michigan Catastrophic Claims Association		34,878			39,652
	Quota-share reinsurers for agreements effective December 31, 2013		22,218			—
	Vesta Insurance Group		13,435			13,674
	Excess of loss reinsurers		3,413			5,521
	Quota-share reinsurer for agreements effective in fourth quarter of 2010 and January 1, 2011 and other		(4	)		8,559

	Total reinsurance receivable	$	165,819		$	120,601

Deferred_Policy_Acquisition_Co1

Deferred Policy Acquisition Costs (Tables)	12 Months Ended
Deferred Policy Acquisition Costs (Tables)	Dec. 31, 2013
Components of Deferred Policy Acquisition Costs and Related Amortization Expense	'
	The components of deferred policy acquisition costs and the related amortization expense were as follows (in thousands):


		Gross			Ceded			Net
	Ending balance at December 31, 2011	$	3,668		$	(10,132	)	$	(6,464	)
	Additions		20,431			(19,090	)		1,341
	Amortization		(16,988	)		22,209			5,221

	Ending balance at December 31, 2012		7,111			(7,013	)		98
	Additions		38,156			(47,705	)		(9,549	)
	Amortization		(32,680	)		34,587			1,907

	Ending balance at December 31, 2013	$	12,587		$	(20,131	)	$	(7,544	)

Property_and_Equipment_Net_Tab

Property and Equipment, Net (Tables)	12 Months Ended
Property and Equipment, Net (Tables)	Dec. 31, 2013
Property and Equipment	'
	Property and equipment, net, consisted of the following as of December 31, 2013 and 2012 (in thousands):


		2013			2012
	Computer software	$	50,448		$	57,401
	Data processing equipment		9,056			9,513
	Leasehold improvements		3,805			10,366
	Furniture and office equipment		3,637			5,069
	Automobiles		254			464

			67,200			82,813
	Accumulated depreciation		(53,222	)		(60,242	)

	Property and equipment, net	$	13,978		$	22,571

Goodwill_and_Other_Intangible_1

Goodwill and Other Intangible Assets (Tables)	12 Months Ended
Goodwill and Other Intangible Assets (Tables)	Dec. 31, 2013
Carrying Amount and Fair Value for Goodwill	'
	The carrying amount and fair value for goodwill is summarized as follows (in thousands):


		Carrying			Fair Value								Total Recognized
	Goodwill as of and for	Value			Quoted Prices			Significant			Significant		Impairment Loss
	the Year Ended				in Active			Other			Unobservable
	December 31,				Markets			Observable			Inputs
					(Level 1)			Inputs			(Level 3)
								(Level 2)
	2012	$	—		$	—		$	—		$	—	$	23,448
	2011		23,448			—			—			23,448		140,122
Changes in Carrying Value of Goodwill	'
	Changes in the carrying value of goodwill for the year ended December 31, 2012 and 2011 were as follows (in thousands):


		Year Ended
		December 31,
		2012			2011
	Beginning balance	$	23,448		$	163,570
	Goodwill impairment		(23,448	)		(140,122	)

	Ending balance	$	—		$	23,448

Amortizable Intangible Assets	'
	Other intangible assets at December 31, 2013 and 2012 were as follows (in thousands):


		2013											2012
		Cost			Impairment			Accumulated			Net		Cost		Impairment			Accumulated			Net
		Cost			Impairment			Amortization			Net		Cost		Impairment			Amortization			Net
	Amortizable intangible assets:
	Agency and customer relationships	$	8,054		$	(1,689	)	$	(6,365	)	$	0	$	8,054	$	(1,689	)	$	(6,365	)	$	0
	Non-amortizable intangible assets:
	Trade names and licenses		3,144			(244	)		(1,400	)		1,500		15,909		(244	)		(1,400	)		14,265

	Total	$	11,198		$	(1,933	)	$	(7,765	)	$	1,500	$	23,963	$	(1,933	)	$	(7,765	)	$	14,265

Non-amortizable intangible assets	'
	Other intangible assets at December 31, 2013 and 2012 were as follows (in thousands):


		2013											2012
		Cost			Impairment			Accumulated			Net		Cost		Impairment			Accumulated			Net
		Cost			Impairment			Amortization			Net		Cost		Impairment			Amortization			Net
	Amortizable intangible assets:
	Agency and customer relationships	$	8,054		$	(1,689	)	$	(6,365	)	$	0	$	8,054	$	(1,689	)	$	(6,365	)	$	0
	Non-amortizable intangible assets:
	Trade names and licenses		3,144			(244	)		(1,400	)		1,500		15,909		(244	)		(1,400	)		14,265

	Total	$	11,198		$	(1,933	)	$	(7,765	)	$	1,500	$	23,963	$	(1,933	)	$	(7,765	)	$	14,265

Schedule of Amortization Expenses	'
	Amortization expense for the years ended December 31 (in thousands):


	2013	$	—
	2012		100
	2011		170

Reserve_for_Losses_and_Loss_Ad1

Reserve for Losses and Loss Adjustment Expenses (Tables)	12 Months Ended
Reserve for Losses and Loss Adjustment Expenses (Tables)	Dec. 31, 2013
Reconciliation of Unpaid Losses and Loss Adjustment Expense	'
	The following table provides a reconciliation of the beginning and ending reserves for unpaid losses and loss adjustment expenses for the periods indicated (in thousands):


		Year Ended December 31,
		2013		2012		2011
	Gross balance at beginning of year	$	138,854	$	183,836	$	252,084
	Less: Reinsurance recoverable		67,166		78,510		93,084
	Less: Deposits		—		—		213

	Net balance at beginning of year		71,688		105,326		158,787
	Incurred related to:
	Current year		135,556		106,379		132,557
	Prior years		12,262		5,479		5,100
	Paid related to:
	Current year		88,727		66,916		87,117
	Prior years		69,556		78,580		104,001

	Net balance at the end of year		61,223		71,688		105,326
	Reinsurance recoverable		72,366		67,166		78,510

	Gross balance at the end of year	$	133,589	$	138,854	$	183,836

Debt_Tables

Debt (Tables)	12 Months Ended
Debt (Tables)	Dec. 31, 2013
Summary of Long-Term Debt Instruments and Balances Outstanding	'
	The Company’s long-term debt instruments and balances outstanding at December 31, 2013 and 2012 were as follows (in thousands):


		2013		2012
	Notes payable due 2035	$	30,928	$	30,928
	Notes payable due 2035		25,774		25,774
	Notes payable due 2035		20,126		20,140

	Total notes payable		76,828		76,842
	Senior secured credit facility effective January 2007, net of discount		—		99,323
	Senior secured credit facility effective September 2013, net of discount		33,523		—
	Subordinated secured credit facility		13,650		—
	Mortgage payable		3,562		—

	Total long-term debt	$	127,563	$	176,165

Summarized Credit Facilities Scheduled Payments	'
	The following table summarizes the Company’s credit facilities scheduled principal payments (in thousands):




	2014	$	6,500
	2015		15,000
	2016		13,500
	2017		13,650

	Total	$	48,650

Capital_Lease_Obligation_Table

Capital Lease Obligation (Tables)	12 Months Ended
Capital Lease Obligation (Tables)	Dec. 31, 2013
Property Under Capital Lease	'
	Property under capital lease consisted of the following as of December 31, 2013 and 2012 (in thousands):


		December 31,			December 31,
		2013			2012
	Computer software, software licenses and hardware	$	34,212		$	17,106
	Accumulated depreciation		(23,971	)		(9,751	)

	Computer software, software licenses and hardware, net	$	10,241		$	7,355

Future Lease Payments	'
	Estimated future lease payments for the years ending December 31 (in thousands):


	2014	$	6,814
	2015		3,124

	Total estimated future lease payments		9,938
	Less: Amount representing interest		510

	Present value of future lease payments	$	9,428

Income_Taxes_Tables

Income Taxes (Tables)	12 Months Ended
Income Taxes (Tables)	Dec. 31, 2013
Provision for Income Taxes	'
	The provision for income taxes for the years ended December 31 consisted of the following (in thousands):


		2013			2012			2011
	Current tax expense	$	4,067		$	14		$	127
	Deferred tax expense (benefit)		(3,178	)		250			(9,167	)

	Net income tax expense (benefit)	$	889		$	264		$	(9,040	)

Summary of Effective Tax Rate Differed from Statutory Rate	'
	The Company’s effective tax rate differed from the statutory rate of 35% for the years ended December 31 as follows (in thousands):


		2013			2012			2011
	Income (loss) before income tax expense (benefit)	$	31,607		$	(51,649	)	$	(171,638	)
	Tax provision computed at the federal statutory income tax rate		11,063			(18,077	)		(60,073	)
	Increases (reductions) in tax resulting from:
	Tax-exempt interest		(17	)		(67	)		(139	)
	State income taxes		3,115			140			(1,517	)
	IRS audit settlement		—			(118	)		—
	Goodwill impairment		—			5,623			33,606
	Valuation allowance		(13,303	)		12,766			19,139
	Other		31			(3	)		(56	)

	Income tax expense (benefit)	$	889		$	264		$	(9,040	)

	Effective tax rate		2.8	%		0.5	%		5.3	%

Portions of Deferred Tax Assets and Deferred Tax Liabilities	'

	Tax effects of temporary differences that give rise to significant portions of the Company’s deferred tax assets and deferred tax liabilities at December 31, 2013 and 2012 were as follows (in thousands):




		2013			2012
	Deferred tax assets:
	Unearned and advance premiums	$	763		$	3,347
	Net operating loss carryforward		68,318			76,051
	Discounted unpaid losses		1,085			1,407
	Deferred revenue		2,367			2,141
	Allowance for doubtful accounts		2,709			3,775
	Goodwill		3,655			6,216
	Rent deferral		752			1,205
	Deferred acquisition costs, net asset		2,640			—
	Depreciation on fixed assets		325			1,785
	Alternative minimum tax and work opportunity credits		1,276			671
	Paid in kind interest		—			891
	Unrealized losses		40			—
	Intangibles		68			—
	Stock options		1,580			1,467
	State deferred tax assets		2,598			3,452
	Other deferred tax assets		1,782			2,527

	Total deferred tax assets		89,958			104,935

	Deferred tax liabilities:
	Unrealized gains		—			190
	Intangibles		—			2,268
	Deferred acquisition costs, net liability		—			34
	Debt extinguishment		517			2,206
	Other deferred tax liabilities		1,013			1,502

	Total deferred tax liabilities		1,530			6,200

	Deferred tax assets, net, before valuation allowance		88,428			98,735
	Valuation allowance		88,428			101,913

	Deferred tax liabilities, net	$	—		$	(3,178	)

Changes in Valuation Allowance	'
	The change in valuation allowance attributable to continuing operations and other comprehensive income is presented for the years ended December 31 as follows (in thousands):


		2013			2012
	Continuing operations	$	(13,303	)	$	12,766
	Changes in other comprehensive income		230			270

		$	(13,073	)	$	13,036

Expiration of Net Operating Loss Carryforwards	'

	As of December 31, 2013, the Company has available for income tax purposes federal net operating loss carryforwards (NOL’s), which may be used to offset future taxable income. The Company’s NOL’s expire as follows (in thousands):



	2027	$	8,527
	2028		4,886
	2029		26,569
	2030		82,417
	2031		39,122
	2032		33,527

		$	195,048

Commitments_Tables

Commitments (Tables)	12 Months Ended
Commitments (Tables)	Dec. 31, 2013
Summary of Minimum Commitments	'
	The following table summarizes the Company’s minimum commitments at December 31, 2013 (in thousands):


	2014	$	4,013
	2015		2,333
	2016		2,714
	2017		1,776
	2018		1,791
	Thereafter		6,306

	Total	$	18,933

Net_Income_Loss_per_Common_Sha1

Net Income (Loss) per Common Share (Tables)	12 Months Ended
Net Income (Loss) per Common Share (Tables)	Dec. 31, 2013
Summary of Reconciliation of Numerators and Denominators for Basic and Diluted Earnings per Share	'
	The following table sets forth the reconciliation of numerators and denominators for the basic and diluted earnings per share computation for each of the years ended December 31, 2013, 2012 and 2011 (in thousands, except per share amounts):


		2013		2012			2011
	Numerator:
	Net income (loss)	$	30,718	$	(51,913	)	$	(162,598	)

	Denominator:
	Weighted average basic shares
	Weighted average common shares outstanding		15,408		15,408			15,408

	Weighted average diluted shares
	Weighted average diluted shares outstanding		15,622		15,408			15,408

	Basic income (loss) per common share	$	1.99	$	(3.37	)	$	(10.55	)

	Diluted income (loss) per common share	$	1.97	$	(3.37	)	$	(10.55	)

StockBased_Compensation_Tables

Stock-Based Compensation (Tables)	12 Months Ended
Stock-Based Compensation (Tables)	Dec. 31, 2013
Assumptions Used in Estimating Fair Value of Employee Stock Options	'
	The dividend yield was based on expected dividends at the time of grant.


		2013			2012			2011
	Weighted-average grant date fair value	$	1.76		$	0.69		$	1.76
	Weighted-average risk-free interest rate		1.71	%		1.15	%		1.23
	Expected term of option in years		5			6			6
	Weighted-average expected volatility		43	%		43	%		43	%
	Dividend yield		—			—			—
Summary of Stock Option Activity	'
	A summary of stock option activity for each of the three years ended December 31 follows (shares in thousands):


		2013						2012					2011
		Shares			Weighted Average			Shares			Weighted Average		Shares			Weighted Average
		Shares			Exercise Price			Shares			Exercise Price		Shares			Exercise Price
	Outstanding at beginning of year		2,407		$	5.07			1,748		$	6.82		1,236		$	19.23
	Granted		250			1.76			750			0.69		1,272			1.76
	Forfeited		(1,084	)		4.77			(91	)		1.65		(760	)		18.52

	Outstanding at end of year		1,573			4.75			2,407			5.07		1,748			6.82

Stock Options Outstanding and Exercisable	'
	Stock options outstanding and exercisable at December 31, 2013 were as follows (shares in thousands):


	Options Outstanding										Options Exercisable
	Range of Exercise Prices	Number			Weighted Average			Weighted Average			Number		Weighted Average
		Outstanding			Exercise Price			Years of			Exercisable		Exercise Price
								Remaining
								Contractual Life
	$0.69 to $1.75		550		$	0.69			8.15			350	$	0.69
	$1.76 to $10.37		700			1.76			8.36			633		1.76
	$10.38 to $15.00		47			11.42			3.54			47		11.42
	$15.01 to $22.00		216			17.64			3.06			216		17.64
	$22.01 to $30.00		60			25.28			3.06			60		25.28

	$0.69 to $30.00		1,573			4.75			7.21			1,306		5.52

Disclosures_for_Items_Reclassi1

Disclosures for Items Reclassified Out of Accumulated Other Comprehensive Income (AOCI) (Tables)	12 Months Ended
	Dec. 31, 2013
Components of Accumulated Other Comprehensive Income (Loss)	'
	The following table sets forth the components of accumulated other comprehensive income (loss), including reclassification adjustments (in thousands):


		Year			Year
		Ended			Ended
		December 31,			December 31,
		2013			2012
	Beginning balance	$	(998	)	$	(227	)
	Other comprehensive income (loss) before reclassifications		(607	)		117
	Amounts reclassified from accumulated other comprehensive income (loss)		(49	)		(888	)

	Net current period other comprehensive income (loss)		(656	)		(771	)

	Ending balance	$	(1,654	)	$	(998	)

Business_Concentrations_Tables

Business Concentrations (Tables)	12 Months Ended
Business Concentrations (Tables)	Dec. 31, 2013
Gross Written Premiums Managed and Assumed By State	'
	The following table displays the Company’s gross written premiums managed and assumed by state (in thousands):


		Year Ended December 31,
		2013		2012		2011
	Louisiana	$	119,828	$	106,841	$	116,462
	Texas		93,573		54,009		36,257
	California		73,741		17,706		14,789
	Alabama		25,272		21,270		23,377
	Illinois		18,359		23,887		25,577
	Indiana		6,846		8,092		6,463
	Missouri		2,799		3,084		1,885
	South Carolina		—		2,127		3,442
	Michigan		—		—		895
	Other		49		6		82

	Total written premium managed		340,467		237,022		229,229
	Less Texas written premium not underwritten		48,272		—		—

	Gross underwritten premiums	$	292,195	$	237,022	$	229,229

Fair_Value_of_Financial_Instru1

Fair Value of Financial Instruments (Tables)	12 Months Ended
Fair Value of Financial Instruments (Tables)	Dec. 31, 2013
Financial Assets Measured at Fair Value on Recurring Basis	'
	The following table provides information as of December 31, 2013 about the Company’s financial assets measured at fair value on a recurring basis (in thousands):


		Total		Quoted		Significant		Significant
				Prices in		Other		Unobservable
				Active		Observable		Inputs
				Markets		Inputs		(Level 3)
				(Level 1)		(Level 2)
	U.S. Treasury and government agencies	$	17,834	$	17,834	$	—	$	—
	Mortgage-backed securities		3,980		—		3,980		—
	States and political subdivisions		3,333		—		3,333		—
	Corporate debt securities		32,283		—		32,283		—
	Certificates of deposit		4,891		—		4,891		—

	Total investment securities		62,321		17,834		44,487		—
	Other invested assets		4,085		—		—		4,085

	Total assets	$	66,406	$	17,834	$	44,487	$	4,085

	The following table provides information as of December 31, 2012 about the Company’s financial assets measured at fair value on a recurring basis (in thousands):


		Total		Quoted		Significant		Significant
				Prices in		Other		Unobservable
				Active		Observable		Inputs
				Markets		Inputs		(Level 3)
				(Level 1)		(Level 2)
	U.S. Treasury and government agencies	$	11,466	$	11,466	$	—	$	—
	States and political subdivisions		3,639		—		3,639		—
	Corporate debt securities		19,369		—		19,369		—
	Certificates of deposit		13,274		—		13,274		—

	Total investment securities		47,748		11,466		36,282		—
	Other invested assets		3,390		—		—		3,390

	Total assets	$	51,138	$	11,466	$	36,282	$	3,390

Fair Value Measurements for Assets	'
	Fair value measurements for assets in Level 3 for the year ended December 31, 2013 were as follows (in thousands):


		Fair Value Measurements
		Using Significant
		Unobservable Inputs
		(Level 3)
		Other Invested Assets
	Balance at January 1, 2013	$	3,390
	Transfers into Level 3		—
	Total gains included in earnings as net investment income		695
	Settlements		—

	Balance at December 31, 2013	$	4,085


	Fair value measurements for assets in Level 3 for the year ended December 31, 2012 were as follows (in thousands):


		Fair Value Measurements
		Using Significant
		Unobservable Inputs
		(Level 3)
		Other Invested Assets
	Balance at January 1, 2012	$	2,898
	Transfers into Level 3		—
	Total gains included in earnings as net investment income		492
	Settlements		—

	Balance at December 31, 2012	$	3,390

Fair Value Measurements for Assets and Liabilities	'
	The following table presents the carrying value and estimated fair value of the Company’s financial assets and liabilities disclosed, but not carried, at fair value at December 31, 2013 and the level within the fair value hierarchy (in thousands):


		Carrying		Estimated		Level 1		Level 2		Level 3
		Value		Fair Value		Level 1		Level 2		Level 3
	Assets:
	Cash and cash equivalents	$	44,569	$	44,569	$	44,569	$	—	$	—
	Fiduciary and restricted cash		1,369		1,369		1,369		—		—

	Total	$	45,938	$	45,938	$	45,938	$	—	$	—

	Liabilities:
	Notes payable	$	76,828	$	13,181	$	—	$	—	$	13,181
	Senior secured credit facility		33,523		34,476		—		—		34,476
	Subordinated secured credit facility		13,650		11,723		—		—		11,723
	Mortgage payable		3,562		3,562		—		—		3,562

	Total	$	127,563	$	62,942	$	—	$	—	$	62,942


	The following table presents the carrying value and estimated fair value of the Company’s financial assets and liabilities disclosed, but not carried, at fair value at December 31, 2012 and the level within the fair value hierarchy (in thousands):


		Carrying		Estimated		Level 1		Level 2		Level 3
		Value		Fair Value		Level 1		Level 2		Level 3
	Assets:
	Cash and cash equivalents	$	38,176	$	38,176	$	38,176	$	—	$	—
	Fiduciary and restricted cash		569		569		569		—		—

	Total	$	38,745	$	38,745	$	38,745	$	—	$	—

	Liabilities:
	Notes payable	$	76,842	$	7,655	$	—	$	—	$	7,655
	Senior secured credit facility		99,323		55,002		—		—		55,002

	Total	$	176,165	$	62,657	$	—	$	—	$	62,657

Statutory_Financial_Informatio1

Statutory Financial Information and Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2013
Statutory Information of Company's Insurance Subsidiaries	'

	The following table summarizes selected statutory information of the Company’s insurance subsidiaries ended December 31 (in thousands):



		December 31,
		2013			2012			2011
	Statutory capital and surplus:
	Affirmative Insurance Company (AIC)	$	46,291		$	48,115		$	69,158
	Affirmative Insurance Company of Michigan (AIC of Michigan)		9,211			9,206			9,213
	USAgencies Casualty Insurance Company, Inc (Casualty)		25,728			24,258			32,780
	USAgencies Direct Insurance Company (Direct)		5,300			5,273			5,259




		Year Ended December 31,
		2013			2012			2011
	Statutory net income (loss):
	Affirmative Insurance Company	$	(11,343	)	$	(20,786	)	$	(11,957	)
	Affirmative Insurance Company of Michigan		4			(7	)		85
	USAgencies Casualty Insurance Company, Inc.		731			1,128			1,226
	USAgencies Direct Insurance Company		28			15			12

Unaudited_Quarterly_Financial_1

Unaudited Quarterly Financial Data (Tables)	12 Months Ended
Unaudited Quarterly Financial Data (Tables)	Dec. 31, 2013
Summary of Quarterly Consolidated Results from Continuing Operations	'
	The following is a summary of the Company’s unaudited quarterly consolidated results from continuing operations for the years ended December 31, 2013 and 2012 (in thousands, except per share data):


		Quarter Ended
		March 31			June 30			September 30			December 31
	2013:00:00
	Net premiums earned	$	41,332		$	49,658		$	30,802		$	43,891
	Total revenues		63,818			72,780			53,310			56,216
	Net losses and loss adjustment expenses		31,563			38,243			33,725			44,287
	Net income (loss)		(6,251	)		1,485			47,618			(12,134	)
	Diluted income (loss) per common share		(0.41	)		0.1			3.02			(0.76	)
	Diluted weighted-average common shares		15,408			15,408			15,772			15,941
	2012:00:00
	Net premiums earned	$	34,181		$	34,935		$	35,261		$	39,359
	Total revenues		51,451			51,759			51,155			55,396
	Net losses and loss adjustment expenses		25,670			26,719			25,397			34,072
	Net income (loss)		(8,480	)		(5,695	)		(29,458	)		(8,280	)
	Diluted loss per common share		(0.55	)		(0.37	)		(1.91	)		(0.54	)
	Diluted weighted-average common shares		15,408			15,408			15,408			15,408

Parent_Company_Financials_Tabl

Parent Company Financials (Tables)	12 Months Ended
Parent Company Financials (Tables)	Dec. 31, 2013
Condensed Balance Sheets	'
	The condensed financial information of the parent company, Affirmative Insurance Holdings, Inc. as of December 31, 2013 and 2012, and for each of the three years ended December 31, 2013, 2012 and 2011 is presented as follows (in thousands, except share data):
	Condensed Balance Sheets


		2013			2012
	Assets
	Cash and cash equivalents	$	1,012		$	17
	Fiduciary and restricted cash		319			165
	Investment in subsidiaries		106,446			140,684
	Income taxes receivable		—			150
	Other intangible assets, net		273			273
	Other assets		21,903			4,204

	Total assets	$	129,953		$	145,493

	Liabilities and Stockholders’ Deficit
	Liabilities:
	Payable to subsidiaries	$	120,441		$	119,629
	Income taxes payable		3,641			—
	Debt		103,875			156,025
	Other liabilities		4,888			3,093

	Total liabilities		232,845			278,747

	Stockholders’ deficit:
	Common stock, $0.01 par value; 75,000,000 shares authorized; 18,202,221 shares issued and 15,408,358 shares outstanding at December 31, 2013 and 2012		182			182
	Additional paid-in capital		167,049			166,749
	Treasury stock, at cost (2,793,863 shares at December 31, 2013 and 2012)		(32,910	)		(32,910	)
	Accumulated other comprehensive loss		(1,654	)		(998	)
	Retained deficit		(235,559	)		(266,277	)

	Total stockholders’ deficit		(102,892	)		(133,254	)

	Total liabilities and stockholders’ deficit	$	129,953		$	145,493

Condensed Statements of Operations	'
	Condensed Statements of Operations




		Year Ended December 31,
		2013			2012			2011
	Revenues
	Dividends from subsidiaries	$	6,700		$	14,714		$	26,613
	Gain on sale of retail business		64,971			—			—
	Net investment income		5			—			—

	Total revenues		71,676			14,714			26,613

	Expenses
	Operating expenses		(57	)		352			581
	Loss on extinguishment of debt		4,193			—			—
	Loss on interest rate swaps		—			—			2
	Interest expense		19,115			17,616			18,992
	Goodwill and other intangible assets impairment		—			1,398			8,357

	Total expenses		23,251			19,366			27,932

	Income (loss) before income taxes and equity interest in subsidiaries		48,425			(4,652	)		(1,319	)
	Income tax expense (benefit)		(14,587	)		2,447			1,545
	Equity interest in undistributed loss of subsidiaries		(32,294	)		(44,814	)		(159,734	)

	Net income (loss)	$	30,718		$	(51,913	)	$	(162,598	)

Condensed Statements of Cash Flows	'
	Condensed Statements of Cash Flows


		Year Ended December 31,
		2013			2012			2011
	Net cash used in operating activities	$	(24,423	)	$	(16,683	)	$	(17,679	)

	Cash flows from investing activities
	Dividends received from subsidiaries		6,700			14,714			26,613
	Proceeds from sale of retail business, net		84,270			—			—

	Net cash provided by investing activities		90,970			14,714			26,613

	Cash flows from financing activities
	Borrowings under senior secured credit facility effective January 2007		12,500			5,500			—
	Borrowings under credit facilities effective September 2013		48,000			—			—
	Principal payments on senior secured credit facility effective September 2013		(5,000	)		—			—
	Principal payments on senior secured credit facility effective January 2007		(120,192	)		(3,530	)		(9,762	)
	Debt issuance costs paid		(860	)		—			(769	)
	Acquisition of treasury stock		—			—			(4	)

	Net cash provided by (used in) financing activities		(65,552	)		1,970			(10,535	)

	Net increase (decrease) in cash and cash equivalents		995			1			(1,601	)
	Cash and cash equivalents at beginning of year		17			16			1,617

	Cash and cash equivalents at end of year	$	1,012		$	17		$	16

General_Additional_Information

General - Additional Information (Detail) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
	Agency
	State
Organization and Nature of Operations [Line Items]	'	'	'
Number of states operating in	7	'	'
Number of Independent agents	5,200	'	'
Bank overdrafts	($2,872)	$4,488	'
Net cash used in operating activities	-67,806	1,521	-15,536
Net cash provided by (used in) financing activities	-3,135	-57,808	-78,749
As Adjusted	'	'	'
Organization and Nature of Operations [Line Items]	'	'	'
Net cash used in operating activities	'	-9,000	'
Net cash provided by (used in) financing activities	'	$9,000	'

Going_Concern_Additional_Infor

Going Concern - Additional Information (Detail) (USD $)	1 Months Ended	9 Months Ended	12 Months Ended			1 Months Ended	9 Months Ended	12 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2013	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Nov. 30, 2013	Sep. 30, 2013	Dec. 31, 2013	Sep. 30, 2013	Dec. 31, 2013
	Sep. 30, 2013	Sep. 30, 2013	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Senior Secured Credit Facility	Senior Secured Credit Facility	Senior Secured Credit Facility	Subordinated Secured Credit Facility	Subordinated Secured Credit Facility
Going Concern [Line Items]	'	'	'	'	'	'	'	'	'	'
Operating loss	'	'	($8,508,000)	($8,214,000)	($8,249,000)	'	'	'	'	'
Cash proceeds from sale of business	101,900,000	101,900,000	'	'	'	'	'	'	'	'
Potential additional cash proceeds from sale of business	20,000,000	20,000,000	'	'	'	'	'	'	'	'
Principal Periodic Payment	'	'	'	'	'	5,000,000	'	'	'	'
Expected additional pay down of senior secured note in April 2014	'	'	'	'	'	'	'	5,000,000	'	'
Amount held in escrow dependent upon the risk-based capital status	20,000,000	20,000,000	'	'	'	'	'	'	'	'
Secured credit facility	'	'	'	'	'	'	40,000,000	40,000,000	'	'
Debt instrument maturity period	'	'	15-Dec-15	'	'	'	30-Mar-16	30-Mar-16	30-Mar-17	30-Mar-17
Debt instrument face amount	'	'	'	'	'	'	'	'	$10,000,000	$10,000,000

Summary_of_Significant_Account2

Summary of Significant Accounting Policies - Additional Information (Detail) (USD $)	12 Months Ended			12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Mar. 31, 2012	Dec. 31, 2004	Dec. 31, 2005	Dec. 31, 2013	Dec. 31, 2013
	Dec. 31, 2013	Dec. 31, 2012	Mar. 31, 2012	Trust I	Trust II	Minimum	Maximum
Significant Accounting Policies [Line Items]	'	'	'	'	'	'	'
Cash and cash equivalents, original maturity period	'90 days	'	'	'	'	'	'
Bank overdrafts or negative book cash balance	$1,600,000	$4,500,000	'	'	'	'	'
Property and equipment, useful life	'	'	'	'	'	'3 years	'8 years
Issuance of trust preferred security	'	'	'	30,000,000	25,000,000	'	'
Subordinated debentures	13,650,000	'	56,700,000	30,900,000	25,800,000	'	'
Initial capital contribution	'	'	'	928,000	774,000	'	'
Investment in common securities	'	'	$1,700,000	$928,000	$774,000	'	'
Ownership percentage in VIE	'	'	'	3.00%	3.00%	'	'

Sale_of_the_Retail_Business_Ad

Sale of the Retail Business - Additional Information (Detail) (USD $)	1 Months Ended	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2013	Dec. 31, 2013	Sep. 30, 2013	Dec. 31, 2013
	Entity
	Location
Assets And Liabilities Disposed On Sale Of Business [Line Items]	'	'	'	'
Number of retail locations	195	'	'	'
Number of premium finance companies	2	'	'	'
Cash proceeds from sale of business	$101,900,000	'	$101,900,000	'
Potential additional cash proceeds from sale of business	20,000,000	'	20,000,000	'
Amount held in escrow dependent upon the risk-based capital status	20,000,000	'	20,000,000	'
Working capital adjustment	1,800,000	100,000	'	'
Fund released from escrow	5,000,000	'	'	8,300,000
Gain (loss) on sale of Retail Business	'	'	65,000,000	64,971,000
Premiums, fees receivables and due to third party carriers, net	20,900,000	'	20,900,000	'
Senior Secured Credit Facility	'	'	'	'
Assets And Liabilities Disposed On Sale Of Business [Line Items]	'	'	'	'
Expected additional pay down of senior secured note in April 2014	'	'	'	5,000,000
30-Jun-14	'	'	'	'
Assets And Liabilities Disposed On Sale Of Business [Line Items]	'	'	'	'
Potential additional cash proceeds from sale of business	10,000,000	'	10,000,000	'
30-Sep-14	'	'	'	'
Assets And Liabilities Disposed On Sale Of Business [Line Items]	'	'	'	'
Potential additional cash proceeds from sale of business	$10,000,000	'	$10,000,000	'

Component_of_Net_Assets_Sold_D

Component of Net Assets Sold (Detail) (USD $)	Sep. 30, 2013
In Thousands, unless otherwise specified	Sep. 30, 2013
Assets	'
Cash and cash equivalents	$2,529
Premium finance and commission receivable	47,847
Other intangible assets	12,764
Other assets	3,709
Total Assets	66,849
Liabilities	'
Due to third-party carriers	24,456
Other liabilities	5,419
Total Liabilities	29,875
Net Assets	$36,974

Amortized_Cost_Gross_Unrealize

Amortized Cost Gross Unrealized Gains Losses and Estimated Fair Value of Available-for-Sale Securities (Detail) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]	'	'
Amortized Cost	$62,436	$47,207
Gross Unrealized Gains	294	546
Gross Unrealized Losses	-409	-5
Estimated Fair Value	62,321	47,748
U.S. Treasury and government agencies	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Amortized Cost	17,830	11,354
Gross Unrealized Gains	55	112
Gross Unrealized Losses	-51	'
Estimated Fair Value	17,834	11,466
Mortgage-backed securities	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Amortized Cost	4,023	'
Gross Unrealized Gains	4	'
Gross Unrealized Losses	-47	'
Estimated Fair Value	3,980	'
States and political subdivisions	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Amortized Cost	3,265	3,535
Gross Unrealized Gains	68	107
Gross Unrealized Losses	'	-3
Estimated Fair Value	3,333	3,639
Corporate debt securities	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Amortized Cost	32,458	19,108
Gross Unrealized Gains	135	262
Gross Unrealized Losses	-310	-1
Estimated Fair Value	32,283	19,369
Certificates of deposit	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Amortized Cost	4,860	13,210
Gross Unrealized Gains	32	65
Gross Unrealized Losses	-1	-1
Estimated Fair Value	$4,891	$13,274

Recovered_Sheet1

Available-for-Sale Investment Securities - Additional Information (Detail) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Millions, unless otherwise specified	Securities	Securities
Schedule of Available-for-sale Securities [Line Items]	'	'
Unsettled investment purchased	$10	$0
Individual investment securities in an unrealized loss position	53	16
Available-for-sale securities pledged as collateral	5.9	9.1
Investments in fixed-maturity securities	6.9	7.1
Certificates of deposit \| Capital Lease	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Available-for-sale securities pledged as collateral	$4.90	'

Amortized_Costs_and_Estimated_

Amortized Costs and Estimated Fair Values of Fixed Income Securities (Detail) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]	'	'
Amortized Cost	$62,436	$47,207
Estimated Fair Value	62,321	47,748
Fixed income securities	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Fixed maturities, Due in one year or less, Amortized Cost	21,750	'
Fixed maturities, Due after one year through five years, Amortized Cost	30,686	'
Fixed maturities, Due after five years through ten years, Amortized Cost	5,977	'
Mortgage-backed securities, Amortized Cost	4,023	'
Fixed maturities, Due in one year or less, Estimated Fair Value	21,819	'
Fixed maturities, Due after one year through five years, Estimated Fair Value	30,618	'
Fixed maturities, Due after five years through ten years, Estimated Fair Value	5,904	'
Mortgage-backed securities, Estimated Fair Value	$3,980	'

Major_Categories_of_Net_Invest

Major Categories of Net Investment Income (Detail) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Schedule of Available-for-sale Securities [Line Items]	'	'	'
Available-for-sale investment securities	$769	$1,520	$3,818
Rental income from investment in real property	2,390	2,410	2,388
Income from investment in hedge fund	695	492	334
Cash and cash equivalents	155	3	'
Investment income	4,009	4,425	6,540
Less investment expense	-1,288	-1,320	-1,548
Net investment income	$2,721	$3,105	$4,992

Gross_Realized_Gains_and_Losse

Gross Realized Gains and Losses on Available-for-Sale Investments (Detail) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Schedule of Available-for-sale Securities [Line Items]	'	'	'
Gross gains	$58	$1,025	$267
Gross losses	-9	-137	-188
Total	$49	$888	$79

Recovered_Sheet2

Available-for-Sale Investment Securities in Unrealized Loss Position (Detail) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]	'	'
Less Than Twelve Months Estimated Fair Value	$40,882	$1,478
Less Than Twelve Months Gross Unrealized Losses	-409	-2
Twelve Months or Greater Estimated Fair Value	'	71
Twelve Months or Greater Gross Unrealized Losses	'	-3
Total Estimated Fair Value	40,882	1,549
Total Gross Unrealized Losses	-409	-5
U.S. Treasury and government agencies	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Less Than Twelve Months Estimated Fair Value	13,220	'
Less Than Twelve Months Gross Unrealized Losses	-51	'
Total Estimated Fair Value	13,220	'
Total Gross Unrealized Losses	-51	'
Mortgage-backed securities	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Less Than Twelve Months Estimated Fair Value	3,403	'
Less Than Twelve Months Gross Unrealized Losses	-47	'
Total Estimated Fair Value	3,403	'
Total Gross Unrealized Losses	-47	'
Corporate debt securities	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Less Than Twelve Months Estimated Fair Value	23,410	979
Less Than Twelve Months Gross Unrealized Losses	-310	-1
Total Estimated Fair Value	23,410	979
Total Gross Unrealized Losses	-310	-1
Certificates of deposit	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Less Than Twelve Months Estimated Fair Value	849	499
Less Than Twelve Months Gross Unrealized Losses	-1	-1
Total Estimated Fair Value	849	499
Total Gross Unrealized Losses	-1	-1
States and political subdivisions	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Twelve Months or Greater Estimated Fair Value	'	71
Twelve Months or Greater Gross Unrealized Losses	'	-3
Total Estimated Fair Value	'	71
Total Gross Unrealized Losses	'	($3)

Reinsurance_Additional_Informa

Reinsurance - Additional Information (Detail) (USD $)

0 Months Ended

1 Months Ended

3 Months Ended

12 Months Ended

0 Months Ended

1 Months Ended

3 Months Ended

12 Months Ended

28 Months Ended

1 Months Ended

12 Months Ended

Dec. 31, 2011

Dec. 31, 2013

Feb. 28, 2013

Jun. 30, 2006

Dec. 31, 2011

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Jul. 31, 2013

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2013

Dec. 31, 2012

Jan. 02, 2014

Jun. 30, 2006

Dec. 31, 2013

Dec. 31, 2012

Mar. 31, 2013

Dec. 31, 2013

Dec. 31, 2012

Sep. 30, 2013

Jun. 30, 2013

Mar. 31, 2013

Dec. 31, 2013

Feb. 28, 2013

Dec. 31, 2011

Dec. 31, 2010

Dec. 31, 2013

Dec. 31, 2012

Louisiana, Alabama, Texas, Illinois

California

Subsidiaries

Affirmative Insurance Company

Subsequent Event

Minimum

Vesta Insurance Group

Quota-share reinsurer for agreements effective in fourth quarter of 2010 and January 1, 2011 and other

New Quota Share Reinsurance Treaty Agreements

County Mutual Insurance Company

Excess Of Loss Reinsurance

Michigan Catastrophic Claims Association

Cash Equivalents

Louisiana, Alabama, Texas, Illinois

Effects of Reinsurance [Line Items]

Ceded gross written premium

28.00%

20.00%

60.00%

Ceded unearned premium

$11,800,000

$27,200,000

Net deferred ceding commissions

4,300,000

7,700,000

Written premiums ceded

50,600,000

22,200,000

163,549,000

66,482,000

88,065,000

5,500,000

82,000,000

99,400,000

-10,000,000

145,800,000

528,000

Ceded percentage of business produced

10.00%

40.00%

Conversion rate of quota share reinsurance contract

40.00%

Automatic contract renewals period

'1 year

Prior written notice period for termination of agreements

'90 days

'75 days

Increase in quota share rate

60.00%

Percentage of policies issued

100.00%

Company obligation under reinsurance contract

15,000,000

27,700,000

3,600,000

9,900,000

Unearned premium returned to the ceding company

81,598,000

72,861,000

11,800,000

Maximum coverage for individual losses

7,000,000

1,000,000

Minimum coverage for individual losses

3,000,000

100,000

Excess of loss reinsurance contract period

'1 year

Policy retention amount

500,000

Total deposit

16,600,000

Deposit after cumulative withdrawals

9,000,000

Receivable from reinsurers

165,819,000

120,601,000

13,435,000

13,674,000

-4,000

8,559,000

34,878,000

39,652,000

Reserves for losses and loss adjustment expenses

133,589,000

138,854,000

2,500,000

Funds in a money market cash equivalent account

15,700,000

Cumulative withdrawal by first party

400,000

Cumulative withdrawal by second party

1,700,000

Ceding company retention balance

Reinsurance Recoverable for losses due to collectible reinsurance

$2,200,000

$2,500,000

Effect_of_Reinsurance_on_Premi

Effect of Reinsurance on Premiums Written and Earned (Detail) (USD $)

0 Months Ended

1 Months Ended

3 Months Ended

12 Months Ended

In Thousands, unless otherwise specified

Dec. 31, 2011

Dec. 31, 2013

Sep. 30, 2013

Jun. 30, 2013

Mar. 31, 2013

Dec. 31, 2012

Sep. 30, 2012

Jun. 30, 2012

Mar. 31, 2012

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Effects of Reinsurance [Line Items]

Written Premium, Direct

$304,007

$198,359

$193,528

Written Premium, Reinsurance assumed

-11,812

38,663

35,701

Written Premium, Reinsurance ceded

-50,600

-22,200

-163,549

-66,482

-88,065

Written Premium, Total

128,646

170,540

141,164

Earned Premium, Direct

284,479

185,546

220,156

Earned Premium, Reinsurance assumed

36,718

41,933

Earned Premium, Reinsurance ceded

-118,796

-78,528

-85,540

Earned Premium, Total

$43,891

$30,802

$49,658

$41,332

$39,359

$35,261

$34,935

$34,181

$165,683

$143,736

$176,549

Adjustments_to_Ceding_Commissi

Adjustments to Ceding Commissions Recognized (Detail) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Effects of Reinsurance [Line Items]	'	'	'
Selling, general and administrative expenses	($29,716)	($26,676)	($24,026)

Amount_of_Loss_Reserves_and_Un

Amount of Loss Reserves and Unearned Premium (Detail) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Effects of Reinsurance [Line Items]	'	'
Losses and loss adjustment expense reserves	$72,366	$67,166
Unearned premium reserve	69,381	24,628
Total	$141,747	$91,794

Summary_of_Ceded_Incurred_Loss

Summary of Ceded Incurred Losses and Loss Adjustment Expenses (Detail) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Reinsurance [Line Items]	'	'	'
Paid losses and loss adjustment expenses ceded	$165,819	$120,601	'
Change in reserves for loss and loss adjustment expenses ceded	-5,265	-44,982	-68,248
Ceded Loss and Loss Adjustment Expense Reserves	'	'	'
Reinsurance [Line Items]	'	'	'
Paid losses and loss adjustment expenses ceded	74,903	61,186	55,197
Change in reserves for loss and loss adjustment expenses ceded	5,200	-11,344	-14,574
Incurred losses and loss adjustment expenses ceded	$80,103	$49,842	$40,623

Ceded_Premiums_Written_and_Ced

Ceded Premiums Written and Ceded Loss and Loss Adjustment Expenses (Detail) (USD $)	0 Months Ended	1 Months Ended	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2013	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Reinsurance [Line Items]	'	'	'	'	'
Ceded premiums written	$50,600	$22,200	$163,549	$66,482	$88,065
Michigan Catastrophic Claims Association	'	'	'	'	'
Reinsurance [Line Items]	'	'	'	'	'
Ceded premiums written	'	'	'	'	528
Ceded loss and loss adjustment expenses	'	'	'	($158)	($16,071)

Amount_of_Receivables_Due_from

Amount of Receivables Due from Reinsurers (Detail) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]	'	'
Total reinsurance receivable	$165,819	$120,601
Quota-share reinsurer for agreements effective September 1, 2011 and March 31, 2013	'	'
Accounts, Notes, Loans and Financing Receivable [Line Items]	'	'
Total reinsurance receivable	91,879	53,195
Michigan Catastrophic Claims Association	'	'
Accounts, Notes, Loans and Financing Receivable [Line Items]	'	'
Total reinsurance receivable	34,878	39,652
Quota-share reinsurers for agreements effective December 31, 2013	'	'
Accounts, Notes, Loans and Financing Receivable [Line Items]	'	'
Total reinsurance receivable	22,218	'
Vesta Insurance Group	'	'
Accounts, Notes, Loans and Financing Receivable [Line Items]	'	'
Total reinsurance receivable	13,435	13,674
Excess of Loss Reinsurers	'	'
Accounts, Notes, Loans and Financing Receivable [Line Items]	'	'
Total reinsurance receivable	3,413	5,521
Quota-share reinsurer for agreements effective in fourth quarter of 2010 and January 1, 2011 and other	'	'
Accounts, Notes, Loans and Financing Receivable [Line Items]	'	'
Total reinsurance receivable	($4)	$8,559

Summary_of_Policy_Acquisition_

Summary of Policy Acquisition Cost (Detail) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Deferred Policy Acquisition Costs [Line Items]	'	'
Ending balance	'	$98
Deferred Policy Acquisition Costs, Gross	'	'
Deferred Policy Acquisition Costs [Line Items]	'	'
Beginning balance	7,111	3,668
Additions	38,156	20,431
Amortization	-32,680	-16,988
Ending balance	12,587	7,111
Deferred Policy Acquisition Costs, Ceded	'	'
Deferred Policy Acquisition Costs [Line Items]	'	'
Beginning balance	-7,013	-10,132
Additions	-47,705	-19,090
Amortization	34,587	22,209
Ending balance	-20,131	-7,013
Deferred Policy acquisition Costs, Net	'	'
Deferred Policy Acquisition Costs [Line Items]	'	'
Beginning balance	98	-6,464
Additions	-9,549	1,341
Amortization	1,907	5,221
Ending balance	($7,544)	$98

Property_and_Equipment_Detail

Property and Equipment (Detail) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Property, Plant and Equipment [Line Items]	'	'
Computer software	$50,448	$57,401
Data processing equipment	9,056	9,513
Leasehold improvements	3,805	10,366
Furniture and office equipment	3,637	5,069
Automobiles	254	464
Property and equipment, Gross	67,200	82,813
Accumulated depreciation	-53,222	-60,242
Property and equipment, net	$13,978	$22,571

Property_and_Equipment_Net_Add

Property and Equipment, Net - Additional Information (Detail) (USD $)	12 Months Ended
In Millions, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Property, Plant and Equipment [Line Items]	'	'	'
Depreciation expense	$7.10	$10	$9.50

Goodwill_and_Other_Intangible_2

Goodwill and Other Intangible Assets - Additional Information (Detail) (USD $)	9 Months Ended	12 Months Ended
	Sep. 30, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Sep. 30, 2013	Dec. 31, 2010
Goodwill And Other Intangible Assets [Line Items]	'	'	'	'	'	'
Goodwill carrying value	$0	'	'	$23,448,000	'	$163,570,000
Company's negative equity position prior to goodwill impairment	101,300,000	'	'	'	'	'
Appropraiate risk adjusted discount rate used	19.00%	'	'	14.50%	'	'
Impairment of goodwill	'	23,448,000	23,448,000	140,122,000	'	'
Impairment of indefinite-lived intangible assets	'	1,933,000	1,933,000	'	'	'
Other intangible assets	'	'	'	'	12,764,000	'
Trade names and licenses	'	'	'	'	'	'
Goodwill And Other Intangible Assets [Line Items]	'	'	'	'	'	'
Impairment of indefinite-lived intangible assets	'	244,000	244,000	'	'	'
Agency and customer relationships	'	'	'	'	'	'
Goodwill And Other Intangible Assets [Line Items]	'	'	'	'	'	'
Impairment of indefinite-lived intangible assets	'	1,689,000	1,689,000	'	'	'
Non-cash impairment charge of definite-lived intangible assets	'	$1,700,000	'	'	'	'

Carrying_Amount_and_Fair_Value

Carrying Amount and Fair Value of Goodwill (Detail) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Goodwill [Line Items]	'	'	'
Goodwill	'	'	$23,448
Goodwill, total recognized impairment loss	23,448	23,448	140,122
Level 3	'	'	'
Goodwill [Line Items]	'	'	'
Goodwill	'	'	$23,448

Changes_in_Carrying_Value_of_G

Changes in Carrying Value of Goodwill (Detail) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Sep. 30, 2012
Goodwill [Line Items]	'	'	'	'
Beginning balance	'	$23,448	$163,570	$0
Goodwill impairment	-23,448	-23,448	-140,122	'
Ending balance	'	'	$23,448	$0

Other_Intangible_Assets_Detail

Other Intangible Assets (Detail) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Acquired Indefinite-lived Intangible Assets [Line Items]	'	'
Cost	$11,198	$23,963
Impairment	-1,933	-1,933
Accumulated amortization	-7,765	-7,765
Net	1,500	14,265
Trade names and licenses	'	'
Acquired Indefinite-lived Intangible Assets [Line Items]	'	'
Cost	3,144	15,909
Impairment	-244	-244
Accumulated amortization	-1,400	-1,400
Net	1,500	14,265
Agency and customer relationships	'	'
Acquired Indefinite-lived Intangible Assets [Line Items]	'	'
Cost	8,054	8,054
Impairment	-1,689	-1,689
Accumulated amortization	-6,365	-6,365
Net	$0	$0

Schedule_of_Amortization_Expen

Schedule of Amortization Expenses (Detail) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Amortization Expense [Line Items]	'	'
Amortization expense	$100	$170

Reconciliation_of_Unpaid_Losse

Reconciliation of Unpaid Losses and Loss Adjustment Expense (Detail) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Liability for Unpaid Claims and Claims Adjustment Expense, Adjustment of Opening Balance [Line Items]	'	'	'
Gross balance at beginning of year	$138,854	$183,836	$252,084
Less: Reinsurance recoverable	67,166	78,510	93,084
Less: Deposits	'	'	213
Net balance at beginning of year	71,688	105,326	158,787
Incurred related to:	'	'	'
Current year	135,556	106,379	132,557
Prior years	12,262	5,479	5,100
Paid related to:	'	'	'
Current year	88,727	66,916	87,117
Prior years	69,556	78,580	104,001
Net balance at the end of year	61,223	71,688	105,326
Reinsurance recoverable	72,366	67,166	78,510
Gross balance at the end of year	$133,589	$138,854	$183,836

Reserve_for_Losses_and_Loss_Ad2

Reserve for Losses and Loss Adjustment Expenses - Additional Information (Detail) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Liability for Unpaid Claims and Claims Adjustment Expense, Adjustment of Opening Balance [Line Items]	'	'	'
Losses and loss adjustment expense to net premiums earned ratio	89.20%	77.80%	78.00%
Prior period favorable (unfavorable) development	$5,265	$44,982	$68,248
Accident Year	'	'	'
Liability for Unpaid Claims and Claims Adjustment Expense, Adjustment of Opening Balance [Line Items]	'	'	'
Losses and loss adjustment expense to net premiums earned ratio	81.80%	74.00%	75.10%
Catastrophes, net of reinsurance	2.00%	2.00%	1.50%
Long term average expected ratio	0.50%	0.50%	'
Accident Year \| 2011 accident year for our Louisiana business	'	'	'
Liability for Unpaid Claims and Claims Adjustment Expense, Adjustment of Opening Balance [Line Items]	'	'	'
Prior period favorable (unfavorable) development	-7,000	'	'
Accident Year \| 2011 and 2012 Texas business	'	'	'
Liability for Unpaid Claims and Claims Adjustment Expense, Adjustment of Opening Balance [Line Items]	'	'	'
Prior period favorable (unfavorable) development	-3,600	'	'
Accident Year \| Accident year 2012 California business	'	'	'
Liability for Unpaid Claims and Claims Adjustment Expense, Adjustment of Opening Balance [Line Items]	'	'	'
Prior period favorable (unfavorable) development	($1,300)	'	'
Accident Year \| Excluding the impact of the quota-share	'	'	'
Liability for Unpaid Claims and Claims Adjustment Expense, Adjustment of Opening Balance [Line Items]	'	'	'
Losses and loss adjustment expense to net premiums earned ratio	75.30%	69.40%	71.10%
Accident Year \| Quota Share Treaties	'	'	'
Liability for Unpaid Claims and Claims Adjustment Expense, Adjustment of Opening Balance [Line Items]	'	'	'
Changes in Losses and loss adjustment expense to net premiums earned ratio	6.5	4.6	3.1

Summary_of_LongTerm_Debt_Instr

Summary of Long-Term Debt Instruments and Balances Outstanding (Detail) (USD $)	Dec. 31, 2013	Dec. 31, 2012	Mar. 31, 2012
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Mar. 31, 2012
Debt Instrument [Line Items]	'	'	'
Notes payable	$76,828	$76,842	'
Subordinated secured credit facility	13,650	'	56,700
Mortgage payable	3,562	'	'
Total long-term debt	127,563	176,165	'
Notes payable due 2035	'	'	'
Debt Instrument [Line Items]	'	'	'
Notes payable	30,928	30,928	'
Notes payable due 2035	'	'	'
Debt Instrument [Line Items]	'	'	'
Notes payable	25,774	25,774	'
Notes payable due 2035	'	'	'
Debt Instrument [Line Items]	'	'	'
Notes payable	20,126	20,140	'
Effective January 2007	'	'	'
Debt Instrument [Line Items]	'	'	'
Senior secured credit facility, net of discount	'	99,323	'
Effective September 2013	'	'	'
Debt Instrument [Line Items]	'	'	'
Senior secured credit facility, net of discount	$33,523	'	'

Debt_Additional_Information_De

Debt - Additional Information (Detail) (USD $)

3 Months Ended

9 Months Ended

12 Months Ended

3 Months Ended

12 Months Ended

1 Months Ended

9 Months Ended

12 Months Ended

9 Months Ended

12 Months Ended

Dec. 31, 2013

Sep. 30, 2013

Jun. 30, 2013

Mar. 31, 2013

Sep. 30, 2013

Dec. 31, 2013

Dec. 31, 2012

Mar. 31, 2012

Mar. 31, 2011

Dec. 31, 2013

Mar. 31, 2011

Dec. 31, 2013

Sep. 30, 2013

Jun. 30, 2013

Mar. 31, 2013

Dec. 31, 2013

Dec. 31, 2012

Nov. 30, 2013

Sep. 30, 2013

Dec. 31, 2013

Sep. 30, 2013

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2013

Affirmative Insurance Company

LIBOR

If the leverage ratio is greater than 2.3

If the leverage ratio is greater than 2.0 and less than or equal to 2.3

If the leverage ratio is greater than 1.8 and less than or equal to 2.0

Secured Debt

Senior Secured Term Loan Facility

Revolving Credit Facility

Senior Debt Obligations

Senior Secured Credit Facility

Subordinated Secured Credit Facility

ITL-B

Notes payable due 2035

Notes Payable With Deferred Interest Right

Notes payable due 2035

LIBOR

September 30, 2014 Payment Due

September 30, 2015 Payment Due

December 31, 2015 Payment Due

March 30, 2016 Payment Due

June 30, 2014 Payment Due

LIBOR

Debt Instrument [Line Items]

Notes payable

$76,828,000

$76,842,000

$30,928,000

$25,774,000

$56,700,000

$20,126,000

$20,140,000

Interest rate

8.50%

19.25%

3.84%

3.79%

4.19%

Interest rate adjusted

6.25%

9.00%

7.50%

6.25%

7.25%

18.00%

3.60%

3.55%

3.95%

Securities adjusted

'Three-month LIBOR

Period of interest payments on selected notes payable

'5 years

Total deferred interest payable at the expiration of interest deferral period

4,600,000

Secured credit facility

40,000,000

Debt instrument maturity period

15-Dec-15

17-Jan-14

30-Mar-16

30-Mar-17

Debt instrument face amount

8,000,000

10,000,000

12,500,000

Leverage ratio under condition one

3.00%

1.25%

Principal balance

35,000,000

Debt instrument discount

2,000,000

Repayment of credit facility

2,000,000

3,500,000

4,500,000

13,500,000

1,000,000

Principal Periodic Payment

5,000,000

Commitment fee

3,000,000

Capitalized interest cost

700,000

Principal balance

13,650,000

56,700,000

Extinguishment of debt gain

4,200,000

-4,193,000

Deferred debt issuance cost

2,200,000

Legal fees

1,400,000

Prepayment premium

600,000

Debt issuance cost capitalized

4,500,000

Percentage of Pledge of stock

100.00%

Credit facility

220,000,000

200,000,000

20,000,000

Incremental term loan period

'2012-11

'2013-08

Debt instrument funded amount

5,500,000

Debt instrument funded amount contributed by company

4,600,000

Non-cash original issue discount

2,500,000

Proceeds from loan used for paying professional fees

900,000

Principal Periodic Payment

40,000

60,000

Closing fee of any asset sales

550,000

Debt instrument prepayment premium percentage

8.00%

Dividend leverage ratio

1.5

Provision for acquisition of subordinated debt

30,000,000

Payment to lenders equal to excess of cash at non regulated entities

12,000,000

10,000,000

12,000,000

Fee percentage paid to lenders

0.25%

Secured loan

4,800,000

Mortgage, interest rate

4.95%

Mortgage payable

$3,600,000

Summarized_Credit_Facilities_S

Summarized Credit Facilities Scheduled Payments (Detail) (USD $)	Dec. 31, 2013
In Thousands, unless otherwise specified	Dec. 31, 2013
Scheduled Principal Payments For Borrowings [Line Items]	'
2014	$6,500
2015	15,000
2016	13,500
2017	13,650
Total	$48,650

Capital_Lease_Obligation_Addit

Capital Lease Obligation - Additional Information (Detail) (USD $)	1 Months Ended		12 Months Ended		1 Months Ended
In Millions, unless otherwise specified	Sep. 30, 2013	31-May-10	Dec. 31, 2013	Dec. 31, 2012	Jan. 31, 2014
		Leases			Software, Software Licenses and Hardware
					Subsequent Event
Schedule of Capital Lease Obligations [Line Items]	'	'	'	'	'
Cash proceeds received from financing	'	$28.20	'	'	$4.90
Purchase of FDIC-insured certificates of deposit	'	28.2	'	'	'
Number of capital lease obligations	'	2	'	'	'
Casualty loss value of the lease property	'	'	9.6	'	'
Proceeds received by the lessor	5	'	8.3	'	'
Remaining liquidated damages	'	'	1.3	'	'
Lease term	'	'	'17 months	'	'
Total rental monthly payments	'	'	0.3	'	'
Available-for-sale securities pledged as collateral	'	'	$5.90	$9.10	'

Property_Under_Capital_Lease_D

Property Under Capital Lease (Detail) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Capital Leased Assets [Line Items]	'	'
Computer software, software licenses and hardware	$34,212	$17,106
Accumulated depreciation	-23,971	-9,751
Computer software, software licenses and hardware, net	$10,241	$7,355

Estimated_Future_Lease_Payment

Estimated Future Lease Payments (Detail) (USD $)	Dec. 31, 2013
In Thousands, unless otherwise specified	Dec. 31, 2013
Schedule of Capital Lease Obligations [Line Items]	'
2014	$6,814
2015	3,124
Total estimated future lease payments	9,938
Less: Amount representing interest	510
Present value of future lease payments	$9,428

Provision_for_Income_Taxes_Det

Provision for Income Taxes (Detail) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Provision For Income Taxes [Line Items]	'	'	'
Current tax expense	$4,067	$14	$127
Deferred tax expense (benefit)	-3,178	250	-9,167
Net income tax expense (benefit)	$889	$264	($9,040)

Income_Taxes_Additional_Inform

Income Taxes - Additional Information (Detail)	12 Months Ended
Income Taxes - Additional Information (Detail)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Schedule Of Income Tax [Line Items]	'	'	'
Effective tax rate from statutory rate	35.00%	35.00%	35.00%

Effective_Tax_Rate_Differed_fr

Effective Tax Rate Differed from Statutory Tax Rate (Detail) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Schedule Of Effective Tax Rates Line Items	'	'	'
Income (loss) before income tax expense (benefit)	$31,607	($51,649)	($171,638)
Tax provision computed at the federal statutory income tax rate	11,063	-18,077	-60,073
Increases (reductions) in tax resulting from:	'	'	'
Tax-exempt interest	-17	-67	-139
State income taxes	3,115	140	-1,517
IRS audit settlement	'	-118	'
Goodwill impairment	'	5,623	33,606
Valuation allowance	-13,303	12,766	19,139
Other	31	-3	-56
Income tax expense	$889	$264	($9,040)
Effective tax rate	2.80%	0.50%	5.30%

Portions_of_Deferred_Tax_Asset

Portions of Deferred Tax Assets and Deferred Tax Liabilities (Detail) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Deferred tax assets:	'	'
Unearned and advance premiums	$763	$3,347
Net operating loss carryforward	68,318	76,051
Discounted unpaid losses	1,085	1,407
Deferred revenue	2,367	2,141
Allowance for doubtful accounts	2,709	3,775
Goodwill	3,655	6,216
Rent deferral	752	1,205
Deferred acquisition costs, net asset	2,640	'
Depreciation on fixed assets	325	1,785
Alternative minimum tax and work opportunity credits	1,276	671
Paid in kind interest	'	891
Unrealized losses	40	'
Intangibles	68	'
Stock options	1,580	1,467
State deferred tax assets	2,598	3,452
Other deferred tax assets	1,782	2,527
Total deferred tax assets	89,958	104,935
Deferred tax liabilities:	'	'
Unrealized gains	'	190
Intangibles	'	2,268
Deferred acquisition costs, net liability	'	34
Debt extinguishment	517	2,206
Other deferred tax liabilities	1,013	1,502
Total deferred tax liabilities	1,530	6,200
Deferred tax assets, net, before valuation allowance	88,428	98,735
Valuation allowance	88,428	101,913
Deferred tax liabilities, net	'	($3,178)

Changes_in_Valuation_Allowance

Changes in Valuation Allowance (Detail) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Valuation Allowance [Line Items]	'	'
Continuing operations	($13,303)	$12,766
Changes in other comprehensive income	230	270
Change in valuation allowance	($13,073)	$13,036

Expiration_of_Net_Operating_Lo

Expiration of Net Operating Loss Carryforwards (Detail) (USD $)	Dec. 31, 2013
In Thousands, unless otherwise specified	Dec. 31, 2013
Operating Loss Carryforwards [Line Items]	'
Net operating loss carryforwards	$195,048
2027	'
Operating Loss Carryforwards [Line Items]	'
Net operating loss carryforwards	8,527
2028	'
Operating Loss Carryforwards [Line Items]	'
Net operating loss carryforwards	4,886
2029	'
Operating Loss Carryforwards [Line Items]	'
Net operating loss carryforwards	26,569
2030	'
Operating Loss Carryforwards [Line Items]	'
Net operating loss carryforwards	82,417
2031	'
Operating Loss Carryforwards [Line Items]	'
Net operating loss carryforwards	39,122
2032	'
Operating Loss Carryforwards [Line Items]	'
Net operating loss carryforwards	$33,527

Commitments_Additional_Informa

Commitments - Additional Information (Detail) (USD $)	12 Months Ended
In Millions, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Commitment And Contingencies [Line Items]	'	'	'
IT outsourcing expenses	$3.50	$11.20	$13
IT service contract period	'10 years	'	'
IT service contract, termination notice period	'6 months	'	'
Annual cost of managing IT operations	6.1	'	'
Annual network infrastructure services cost	1.2	'	'
Amount of termination penalty over twelve month period	1.8	'	'
Operating lease rental expenses	$6.80	$8.80	$7.80

Summary_of_Minimum_Commitments

Summary of Minimum Commitments (Detail) (USD $)	Dec. 31, 2013
In Thousands, unless otherwise specified	Dec. 31, 2013
Supply Commitment [Line Items]	'
2014	$4,013
2015	2,333
2016	2,714
2017	1,776
2018	1,791
Thereafter	6,306
Total	$18,933

Legal_Proceedings_Additional_I

Legal Proceedings - Additional Information (Detail) (Insurance Claims, USD $)	12 Months Ended
	Dec. 31, 2013
Insurance Claims	'
Legal Proceedings [Line Items]	'
Aggregate amount of judgment against insured	$454,194

Net_Income_Loss_per_Common_Sha2

Net Income Loss per Common Share - Additional Information (Detail)	0 Months Ended				12 Months Ended
	Sep. 15, 2013	Feb. 24, 2012	Aug. 10, 2011	Mar. 18, 2011	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Earnings Loss Per Share [Line Items]	'	'	'	'	'	'	'
Stock options outstanding excluded from computation of earnings per share due to anti-dilutive effect	'	'	'	'	323,000	2,407,000	1,748,000
Common stock shares issued on restricted basis	'	'	'	433,500	'	'	'
Stock options awarded to executives	250,000	750,000	1,272,500	'	250,000	750,000	1,272,000
Stock options forfeiture	600,000	'	'	'	1,084,000	91,000	760,000

Summary_of_Reconciliation_of_N

Summary of Reconciliation of Numerators and Denominators for Basic and Diluted Earnings per Share (Detail) (USD $)	3 Months Ended								12 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Numerator:	'	'	'	'	'	'	'	'	'	'	'
Net income (loss)	($12,134)	$47,618	$1,485	($6,251)	($8,280)	($29,458)	($5,695)	($8,480)	$30,718	($51,913)	($162,598)
Denominator:	'	'	'	'	'	'	'	'	'	'	'
Weighted average common shares outstanding	'	'	'	'	'	'	'	'	15,408	15,408	15,408
Weighted average diluted shares outstanding	15,941	15,772	15,408	15,408	15,408	15,408	15,408	15,408	15,622	15,408	15,408
Basic income (loss) per common share	'	'	'	'	'	'	'	'	$1.99	($3.37)	($10.55)
Diluted income (loss) per common share	($0.76)	$3.02	$0.10	($0.41)	($0.54)	($1.91)	($0.37)	($0.55)	$1.97	($3.37)	($10.55)

StockBased_Compensation_Additi

Stock-Based Compensation - Additional Information (Detail) (USD $)

12 Months Ended

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2013

31-May-04

Dec. 31, 2013

Restricted Stock

Stock Incentive Plan 2004

1998 Omnibus Incentive Plan

After a participant's termination of service

After a participant's death or disability

In the event that an incentive stock option is granted to a 10% stockholder

Maximum

In the case of any employee who is deemed to own more than 10% of the voting power of all classes of the Company's stock

In the event that an incentive stock option is granted to a 10% stockholder

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Common stock reserved for future issuance

1,244,194

3,000,000

Stock options awarded, exercise periods

'10 years

'5 years

Vested stock option exercisable period

'3 months

'12 months

Minimum percentage of exercise price for incentive stock option

100.00%

110.00%

100.00%

110.00%

Percentage of incentive stock option granted

10.00%

Minimum percentage of exercise price of non qualified stock option

20.00%

Stock options available for grant

803,169

Stock option term

'10 years

'5 years

Total compensation expense

$300,000

$403,000

$378,000

$4,000

$159,000

Total unrecognized compensation expense

234,000

Total unrecognized compensation expense, period for recognition

'1 year 9 months 18 days

Aggregate intrinsic value of stock options outstanding and exercisable

Aggregate fair value of restricted stock awards vested

$1,000

$15,000

Assumptions_Used_in_Estimating

Assumptions Used in Estimating Fair Value of Employee Stock Options (Detail) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'
Weighted-average grant date fair value	$1.76	$0.69	$1.76
Weighted-average risk-free interest rate	1.71%	1.15%	1.23%
Expected term of option in years	'5 years	'6 years	'6 years
Weighted-average expected volatility	43.00%	43.00%	43.00%
Dividend yield	'	'	'

Summary_of_Stock_Option_Activi

Summary of Stock Option Activity (Detail) (USD $)	0 Months Ended			12 Months Ended
Summary of Stock Option Activity (Detail) (USD $)	Sep. 15, 2013	Feb. 24, 2012	Aug. 10, 2011	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Shares	'	'	'	'	'	'
Outstanding at beginning of year	'	'	'	2,407,000	1,748,000	1,236,000
Granted	250,000	750,000	1,272,500	250,000	750,000	1,272,000
Forfeited	-600,000	'	'	-1,084,000	-91,000	-760,000
Outstanding at end of year	'	'	'	1,573,000	2,407,000	1,748,000
Weighted Average Exercise Price	'	'	'	'	'	'
Outstanding at beginning of year	'	'	'	$5.07	$6.82	$19.23
Granted	'	'	'	$1.76	$0.69	$1.76
Forfeited	'	'	'	$4.77	$1.65	$18.52
Outstanding at end of year	'	'	'	$4.75	$5.07	$6.82

Stock_Options_Outstanding_and_

Stock Options Outstanding and Exercisable (Detail) (USD $)	12 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2013
$0.69 to $1.76	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'
Range of Exercise Prices, lower limit	$0.69
Range of Exercise Prices, upper limit	$1.75
Options Outstanding, Number Outstanding	550
Options Outstanding, Weighted Average Exercise Price	$0.69
Options Outstanding, Weighted Average Years of Remaining Contractual Life	'8 years 1 month 24 days
Options Exercisable, Number Exercisable	350
Options Exercisable, Weighted Average Exercise Price	$0.69
$1.76 to $10.37	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'
Range of Exercise Prices, lower limit	$1.76
Range of Exercise Prices, upper limit	$10.37
Options Outstanding, Number Outstanding	700
Options Outstanding, Weighted Average Exercise Price	$1.76
Options Outstanding, Weighted Average Years of Remaining Contractual Life	'8 years 4 months 10 days
Options Exercisable, Number Exercisable	633
Options Exercisable, Weighted Average Exercise Price	$1.76
$10.38 to $15.00	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'
Range of Exercise Prices, lower limit	$10.38
Range of Exercise Prices, upper limit	$15
Options Outstanding, Number Outstanding	47
Options Outstanding, Weighted Average Exercise Price	$11.42
Options Outstanding, Weighted Average Years of Remaining Contractual Life	'3 years 6 months 15 days
Options Exercisable, Number Exercisable	47
Options Exercisable, Weighted Average Exercise Price	$11.42
$15.01 to $22.00	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'
Range of Exercise Prices, lower limit	$15.01
Range of Exercise Prices, upper limit	$22
Options Outstanding, Number Outstanding	216
Options Outstanding, Weighted Average Exercise Price	$17.64
Options Outstanding, Weighted Average Years of Remaining Contractual Life	'3 years 22 days
Options Exercisable, Number Exercisable	216
Options Exercisable, Weighted Average Exercise Price	$17.64
$22.01 to $30.00	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'
Range of Exercise Prices, lower limit	$22.01
Range of Exercise Prices, upper limit	$30
Options Outstanding, Number Outstanding	60
Options Outstanding, Weighted Average Exercise Price	$25.28
Options Outstanding, Weighted Average Years of Remaining Contractual Life	'3 years 22 days
Options Exercisable, Number Exercisable	60
Options Exercisable, Weighted Average Exercise Price	$25.28
$0.69 to $30.00	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'
Range of Exercise Prices, lower limit	$0.69
Range of Exercise Prices, upper limit	$30
Options Outstanding, Number Outstanding	1,573
Options Outstanding, Weighted Average Exercise Price	$4.75
Options Outstanding, Weighted Average Years of Remaining Contractual Life	'7 years 2 months 16 days
Options Exercisable, Number Exercisable	1,306
Options Exercisable, Weighted Average Exercise Price	$5.52

Employee_Benefit_Plan_Addition

Employee Benefit Plan - Additional Information (Detail)	12 Months Ended
Employee Benefit Plan - Additional Information (Detail)	Dec. 31, 2013
Employee Benefit Plan [Line Items]	'
Defined contribution retirement plan description	'The Company may, at its discretion, match 100% of each employee's contribution, up to 3% of the employee's earnings, plus 50% of each employee's contribution for the next 2% of the employee's salary.

Related_Party_Transactions_Add

Related Party Transactions - Additional Information (Detail) (USD $)	Dec. 31, 2013	Sep. 30, 2013
In Millions, unless otherwise specified	Dec. 31, 2013	Sep. 30, 2013
Subordinated Secured Credit Facility	'	'
Related Party Transaction [Line Items]	'	'
Debt instrument face amount	$10	$10
JCF AFFM Debt Holdings, L.P.	'	'
Related Party Transaction [Line Items]	'	'
Ownership percentage	'	51.00%
JCF AFFM Debt Holdings, L.P. \| Subordinated Secured Credit Facility	'	'
Related Party Transaction [Line Items]	'	'
Debt instrument face amount	'	$10

Items_Reclassified_Out_of_Accu

Items Reclassified Out of Accumulated Other Comprehensive Income (AOCI) (Detail) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Accumulated Other Comprehensive Income (Loss) [Line Items]	'	'	'
Beginning balance	($998)	($227)	'
Other comprehensive income (loss) before reclassifications	-607	117	-593
Amounts reclassified from accumulated other comprehensive income (loss)	-49	-888	-79
Net current period other comprehensive income (loss)	-656	-771	-672
Ending balance	($1,654)	($998)	($227)

Disclosures_for_Items_Reclassi2

Disclosures for Items Reclassified Out of Accumulated Other Comprehensive Income (AOCI) - Additional Information (Detail) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]	'	'	'
Reclassifications for previously unrealized net gains on available-for-sale securities	($49)	($888)	($79)

Regulatory_Restrictions_Additi

Regulatory Restrictions - Additional Information (Detail)	12 Months Ended
Regulatory Restrictions - Additional Information (Detail)	Dec. 31, 2013
Regulatory Requirements [Line Items]	'
Combined ratio	120.00%
Minimum	'
Regulatory Requirements [Line Items]	'
Capital ratio	200.00%
Maximum	'
Regulatory Requirements [Line Items]	'
Capital ratio	300.00%

Gross_Premiums_Written_by_Stat

Gross Premiums Written by State (Detail) (USD $)	0 Months Ended	1 Months Ended	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2013	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Segment Reporting Information [Line Items]	'	'	'	'	'
Gross underwritten premiums	'	'	$340,467	$237,022	$229,229
Less Texas written premium not underwritten	50,600	22,200	163,549	66,482	88,065
Louisiana	'	'	'	'	'
Segment Reporting Information [Line Items]	'	'	'	'	'
Gross underwritten premiums	'	'	119,828	106,841	116,462
Texas	'	'	'	'	'
Segment Reporting Information [Line Items]	'	'	'	'	'
Gross underwritten premiums	'	'	93,573	54,009	36,257
Less Texas written premium not underwritten	'	'	48,272	'	'
California	'	'	'	'	'
Segment Reporting Information [Line Items]	'	'	'	'	'
Gross underwritten premiums	'	'	73,741	17,706	14,789
Alabama	'	'	'	'	'
Segment Reporting Information [Line Items]	'	'	'	'	'
Gross underwritten premiums	'	'	25,272	21,270	23,377
Illinois	'	'	'	'	'
Segment Reporting Information [Line Items]	'	'	'	'	'
Gross underwritten premiums	'	'	18,359	23,887	25,577
Indiana	'	'	'	'	'
Segment Reporting Information [Line Items]	'	'	'	'	'
Gross underwritten premiums	'	'	6,846	8,092	6,463
Missouri	'	'	'	'	'
Segment Reporting Information [Line Items]	'	'	'	'	'
Gross underwritten premiums	'	'	2,799	3,084	1,885
South Carolina	'	'	'	'	'
Segment Reporting Information [Line Items]	'	'	'	'	'
Gross underwritten premiums	'	'	'	2,127	3,442
MICHIGAN	'	'	'	'	'
Segment Reporting Information [Line Items]	'	'	'	'	'
Gross underwritten premiums	'	'	'	'	895
Other	'	'	'	'	'
Segment Reporting Information [Line Items]	'	'	'	'	'
Gross underwritten premiums	'	'	49	6	82
Various States	'	'	'	'	'
Segment Reporting Information [Line Items]	'	'	'	'	'
Gross underwritten premiums	'	'	$292,195	$237,022	$229,229

Financial_Assets_Measured_at_F

Financial Assets Measured at Fair Value on Recurring Basis (Detail) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]	'	'
Total investment securities	$62,321	$47,748
Other invested assets	4,085	3,390
Estimated Fair Value	'	'
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]	'	'
Total investment securities	62,321	47,748
Other invested assets	4,085	3,390
Total assets	66,406	51,138
Estimated Fair Value \| U.S. Treasury and government agencies	'	'
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]	'	'
Total investment securities	17,834	11,466
Estimated Fair Value \| Mortgage-backed securities	'	'
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]	'	'
Total investment securities	3,980	'
Estimated Fair Value \| States and political subdivisions	'	'
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]	'	'
Total investment securities	3,333	3,639
Estimated Fair Value \| Corporate debt securities	'	'
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]	'	'
Total investment securities	32,283	19,369
Estimated Fair Value \| Certificates of deposit	'	'
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]	'	'
Total investment securities	4,891	13,274
Estimated Fair Value \| Level 1	'	'
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]	'	'
Total investment securities	17,834	11,466
Total assets	17,834	11,466
Estimated Fair Value \| Level 1 \| U.S. Treasury and government agencies	'	'
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]	'	'
Total investment securities	17,834	11,466
Estimated Fair Value \| Level 2	'	'
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]	'	'
Total investment securities	44,487	36,282
Total assets	44,487	36,282
Estimated Fair Value \| Level 2 \| Mortgage-backed securities	'	'
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]	'	'
Total investment securities	3,980	'
Estimated Fair Value \| Level 2 \| States and political subdivisions	'	'
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]	'	'
Total investment securities	3,333	3,639
Estimated Fair Value \| Level 2 \| Corporate debt securities	'	'
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]	'	'
Total investment securities	32,283	19,369
Estimated Fair Value \| Level 2 \| Certificates of deposit	'	'
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]	'	'
Total investment securities	4,891	13,274
Estimated Fair Value \| Level 3	'	'
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]	'	'
Other invested assets	4,085	3,390
Total assets	$4,085	$3,390

Fair_Value_Measurements_for_As

Fair Value Measurements for Assets using Unobservable Inputs (Detail) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]	'	'
Beginning Balance	$3,390	$2,898
Transfers into Level 3	'	'
Total gains included in earnings as net investment income	695	492
Settlements	'	'
Ending Balance	$4,085	$3,390

Fair_Value_Measurements_for_As1

Fair Value Measurements for Assets and Liabilities (Detail) (USD $)	Dec. 31, 2013	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified			Carrying Value	Carrying Value	Estimated Fair Value	Estimated Fair Value	Estimated Fair Value	Estimated Fair Value	Estimated Fair Value	Estimated Fair Value
							Level 1	Level 1	Level 3	Level 3
Assets:	'	'	'	'	'	'	'	'	'	'
Cash and cash equivalents	'	'	$44,569	$38,176	$44,569	$38,176	$44,569	$38,176	'	'
Fiduciary and restricted cash	'	'	1,369	569	1,369	569	1,369	569	'	'
Total	'	'	45,938	38,745	45,938	38,745	45,938	38,745	'	'
Liabilities:	'	'	'	'	'	'	'	'	'	'
Notes payable	'	'	76,828	76,842	13,181	7,655	'	'	13,181	7,655
Senior secured credit facility	'	'	33,523	99,323	34,476	55,002	'	'	34,476	55,002
Subordinated secured credit facility	13,650	56,700	13,650	'	11,723	'	'	'	11,723	'
Mortgage payable	'	'	3,562	'	3,562	'	'	'	3,562	'
Total	'	'	$127,563	$176,165	$62,942	$62,657	'	'	$62,942	$62,657

Summary_of_Selected_Statutory_

Summary of Selected Statutory Information of Insurance Subsidiaries (Detail) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Affirmative Insurance Company	'	'	'
Statutory Accounting Practices [Line Items]	'	'	'
Statutory capital and surplus	$46,291	$48,115	$69,158
Statutory net income (loss)	-11,343	-20,786	-11,957
Affirmative Insurance Company of Michigan	'	'	'
Statutory Accounting Practices [Line Items]	'	'	'
Statutory capital and surplus	9,211	9,206	9,213
Statutory net income (loss)	4	-7	85
US Agencies Casualty Insurance Company Incorporated	'	'	'
Statutory Accounting Practices [Line Items]	'	'	'
Statutory capital and surplus	25,728	24,258	32,780
Statutory net income (loss)	731	1,128	1,226
US Agencies Direct Insurance Company	'	'	'
Statutory Accounting Practices [Line Items]	'	'	'
Statutory capital and surplus	5,300	5,273	5,259
Statutory net income (loss)	$28	$15	$12

Statutory_Financial_Informatio2

Statutory Financial Information and Accounting Policies - Additional Information (Detail) (USD $)	Dec. 31, 2013
In Millions, unless otherwise specified	Dec. 31, 2013
Statutory Accounting Practices [Line Items]	'
Statutory capital and surplus necessary for AIC to satisfy regulatory requirements	$30.50

Summary_of_Quarterly_Consolida

Summary of Quarterly Consolidated Result from Continuing Operations (Detail) (USD $)	3 Months Ended								12 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Selected Quarterly Financial Data [Line Items]	'	'	'	'	'	'	'	'	'	'	'
Net premiums earned	$43,891	$30,802	$49,658	$41,332	$39,359	$35,261	$34,935	$34,181	$165,683	$143,736	$176,549
Total revenues	56,216	53,310	72,780	63,818	55,396	51,155	51,759	51,451	246,124	209,761	249,798
Net losses and loss adjustment expenses	44,287	33,725	38,243	31,563	34,072	25,397	26,719	25,670	147,818	111,858	137,657
Net income (loss)	($12,134)	$47,618	$1,485	($6,251)	($8,280)	($29,458)	($5,695)	($8,480)	$30,718	($51,913)	($162,598)
Diluted income (loss) per common share	($0.76)	$3.02	$0.10	($0.41)	($0.54)	($1.91)	($0.37)	($0.55)	$1.97	($3.37)	($10.55)
Diluted weighted-average common shares	15,941	15,772	15,408	15,408	15,408	15,408	15,408	15,408	15,622	15,408	15,408

Condensed_Balance_Sheet_of_Par

Condensed Balance Sheet of Parent Company (Detail) (USD $)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Assets	'	'	'	'
Cash and cash equivalents	$44,569	$38,176	$28,559	$46,364
Fiduciary and restricted cash	1,369	569	'	'
Income taxes receivable	'	150	'	'
Other intangible assets, net	1,500	14,265	'	'
Other assets	22,124	2,987	'	'
Total assets	386,841	338,395	'	'
Liabilities:	'	'	'	'
Income taxes payable	3,641	'	'	'
Debt	127,563	176,165	'	'
Other liabilities	47,476	37,058	'	'
Total liabilities	489,733	471,649	'	'
Stockholders' deficit:	'	'	'	'
Common stock, $0.01 par value; 75,000,000 shares authorized; 18,202,221 shares issued and 15,408,358 shares outstanding at December 31, 2013 and 2012	182	182	'	'
Additional paid-in capital	167,049	166,749	'	'
Treasury stock, at cost (2,793,863 shares at December 31, 2013 and 2012)	-32,910	-32,910	'	'
Accumulated other comprehensive loss	-1,654	-998	-227	'
Retained deficit	-235,559	-266,277	'	'
Total stockholders' deficit	-102,892	-133,254	-80,977	'
Total liabilities and stockholders' deficit	386,841	338,395	'	'
Parent Company	'	'	'	'
Assets	'	'	'	'
Cash and cash equivalents	1,012	17	16	1,617
Fiduciary and restricted cash	319	165	'	'
Investment in subsidiaries	106,446	140,684	'	'
Income taxes receivable	'	150	'	'
Other intangible assets, net	273	273	'	'
Other assets	21,903	4,204	'	'
Total assets	129,953	145,493	'	'
Liabilities:	'	'	'	'
Payable to subsidiaries	120,441	119,629	'	'
Income taxes payable	3,641	'	'	'
Debt	103,875	156,025	'	'
Other liabilities	4,888	3,093	'	'
Total liabilities	232,845	278,747	'	'
Stockholders' deficit:	'	'	'	'
Common stock, $0.01 par value; 75,000,000 shares authorized; 18,202,221 shares issued and 15,408,358 shares outstanding at December 31, 2013 and 2012	182	182	'	'
Additional paid-in capital	167,049	166,749	'	'
Treasury stock, at cost (2,793,863 shares at December 31, 2013 and 2012)	-32,910	-32,910	'	'
Accumulated other comprehensive loss	-1,654	-998	'	'
Retained deficit	-235,559	-266,277	'	'
Total stockholders' deficit	-102,892	-133,254	'	'
Total liabilities and stockholders' deficit	$129,953	$145,493	'	'

Condensed_Balance_Sheet_of_Par1

Condensed Balance Sheet of Parent Company (Parenthetical) (Detail) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Condensed Financial Statements, Captions [Line Items]	'	'
Common stock, par value	$0.01	$0.01
Common stock, shares authorized	75,000,000	75,000,000
Common stock, shares issued	18,202,221	18,202,221
Common stock, shares outstanding	15,408,358	15,408,358
Treasury stock, shares	2,793,863	2,793,863
Parent Company	'	'
Condensed Financial Statements, Captions [Line Items]	'	'
Common stock, par value	$0.01	$0.01
Common stock, shares authorized	75,000,000	75,000,000
Common stock, shares issued	18,202,221	18,202,221
Common stock, shares outstanding	15,408,358	15,408,358
Treasury stock, shares	2,793,863	2,793,863

Condensed_Statements_of_Operat

Condensed Statements of Operations of Parent Company (Detail) (USD $)

3 Months Ended

9 Months Ended

12 Months Ended

In Thousands, unless otherwise specified

Dec. 31, 2013

Sep. 30, 2013

Jun. 30, 2013

Mar. 31, 2013

Dec. 31, 2012

Sep. 30, 2012

Jun. 30, 2012

Mar. 31, 2012

Sep. 30, 2013

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Revenues

Gain on sale of retail business

$65,000

$64,971

Net investment income

2,721

3,105

4,992

Total revenues

56,216

53,310

72,780

63,818

55,396

51,155

51,759

51,451

246,124

209,761

249,798

Expenses

Operating expenses

-254,632

-217,975

-258,047

Loss on extinguishment of debt

4,200

-4,193

Loss on interest rate swaps

-2

Interest expense

-20,663

-19,743

-21,575

Goodwill and other intangible assets impairment

-23,692

-141,812

Income (loss) before income taxes and equity interest in subsidiaries

31,607

-51,649

-171,638

Income tax expense (benefit)

889

264

-9,040

Net income (loss)

-12,134

47,618

1,485

-6,251

-8,280

-29,458

-5,695

-8,480

30,718

-51,913

-162,598

Parent Company

Revenues

Dividends from subsidiaries

6,700

14,714

26,613

Gain on sale of retail business

64,971

Net investment income

Total revenues

71,676

14,714

26,613

Expenses

Operating expenses

-57

352

581

Loss on extinguishment of debt

4,193

Loss on interest rate swaps

Interest expense

19,115

17,616

18,992

Goodwill and other intangible assets impairment

1,398

8,357

Total expenses

23,251

19,366

27,932

Income (loss) before income taxes and equity interest in subsidiaries

48,425

-4,652

-1,319

Income tax expense (benefit)

-14,587

2,447

1,545

Equity interest in undistributed loss of subsidiaries

-32,294

-44,814

-159,734

Net income (loss)

$30,718

($51,913)

($162,598)

Condensed_Statements_of_Cash_F

Condensed Statements of Cash Flows of parent Company (Detail) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Condensed Cash Flow Statements, Captions [Line Items]	'	'	'
Net cash used in operating activities	($3,135)	($57,808)	($78,749)
Cash flows from investing activities	'	'	'
Proceeds from sale of retail business, net	84,270	'	'
Net cash provided by investing activities	77,334	65,904	76,480
Cash flows from financing activities	'	'	'
Debt issuance costs paid	-860	'	-769
Acquisition of treasury stock	'	'	-4
Net cash provided by (used in) financing activities	-67,806	1,521	-15,536
Net increase (decrease) in cash and cash equivalents	6,393	9,617	-17,805
Cash and cash equivalents at beginning of year	38,176	28,559	46,364
Cash and cash equivalents at end of year	44,569	38,176	28,559
Effective January 2007	'	'	'
Cash flows from financing activities	'	'	'
Borrowings under senior secured credit facility	12,500	5,500	'
Principal payments on senior secured credit facility	-120,192	-3,530	-9,762
Effective September 2013	'	'	'
Cash flows from financing activities	'	'	'
Borrowings under senior secured credit facility	48,000	'	'
Principal payments on senior secured credit facility	-5,000	'	'
Parent Company	'	'	'
Condensed Cash Flow Statements, Captions [Line Items]	'	'	'
Net cash used in operating activities	-24,423	-16,683	-17,679
Cash flows from investing activities	'	'	'
Dividends received from subsidiaries	6,700	14,714	26,613
Proceeds from sale of retail business, net	84,270	'	'
Net cash provided by investing activities	90,970	14,714	26,613
Cash flows from financing activities	'	'	'
Debt issuance costs paid	-860	'	-769
Acquisition of treasury stock	'	'	-4
Net cash provided by (used in) financing activities	-65,552	1,970	-10,535
Net increase (decrease) in cash and cash equivalents	995	1	-1,601
Cash and cash equivalents at beginning of year	17	16	1,617
Cash and cash equivalents at end of year	1,012	17	16
Parent Company \| Effective January 2007	'	'	'
Cash flows from financing activities	'	'	'
Borrowings under senior secured credit facility	12,500	5,500	'
Principal payments on senior secured credit facility	-5,000	'	'
Parent Company \| Effective September 2013	'	'	'
Cash flows from financing activities	'	'	'
Borrowings under senior secured credit facility	48,000	'	'
Principal payments on senior secured credit facility	($120,192)	($3,530)	($9,762)