Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 31, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Entity Registrant Name | 'Employers Holdings, Inc. | ' |
Entity Central Index Key | '0001379041 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Well Know Seasoned Issuer | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock Shares Outstanding | ' | 31,210,749 |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Available for sale: | ' | ' |
Fixed maturity securities at fair value (amortized cost $2,022,240 at September 30, 2013 and $1,869,142 at December 31, 2012) | $2,101,357 | $2,024,428 |
Equity securities at fair value (cost $86,384 at September 30, 2013 and $81,067 at December 31, 2012) | 147,595 | 125,086 |
Total investments | 2,248,952 | 2,149,514 |
Cash and cash equivalents | 99,823 | 140,661 |
Restricted cash and cash equivalents | 6,078 | 5,353 |
Accrued investment income | 19,100 | 19,356 |
Premiums receivable (less bad debt allowance of $7,397 at September 30, 2013 and $5,957 at December 31, 2012) | 282,940 | 223,011 |
Reinsurance recoverable for: | ' | ' |
Paid losses | 8,946 | 9,467 |
Unpaid losses | 779,842 | 805,386 |
Deferred policy acquisition costs | 45,682 | 38,852 |
Deferred income taxes, net | 52,356 | 26,231 |
Property and equipment, net | 16,490 | 14,680 |
Intangible assets, net | 9,881 | 10,558 |
Goodwill | 36,192 | 36,192 |
Contingent commission receivable—LPT Agreement | 21,388 | 19,141 |
Other assets | 17,846 | 12,937 |
Total assets | 3,645,516 | 3,511,339 |
Claims and policy liabilities: | ' | ' |
Unpaid losses and loss adjustment expenses | 2,305,307 | 2,231,540 |
Unearned premiums | 318,983 | 265,149 |
Total claims and policy liabilities | 2,624,290 | 2,496,689 |
Commissions and premium taxes payable | 44,493 | 40,825 |
Accounts payable and accrued expenses | 20,333 | 19,522 |
Deferred reinsurance gain—LPT Agreement | 260,602 | 281,043 |
Notes payable | 112,000 | 112,000 |
Other liabilities | 27,269 | 21,879 |
Total liabilities | 3,088,987 | 2,971,958 |
Commitments and contingencies | ' | ' |
Stockholders’ equity: | ' | ' |
Common stock, $0.01 par value; 150,000,000 shares authorized; 54,579,523 and 54,144,453 shares issued and 31,206,549 and 30,771,479 shares outstanding at September 30, 2013 and December 31, 2012, respectively | 546 | 541 |
Preferred stock, $0.01 par value; 25,000,000 shares authorized; none issued | 0 | 0 |
Additional paid-in capital | 337,403 | 325,991 |
Retained earnings | 489,916 | 445,850 |
Accumulated other comprehensive income, net | 91,214 | 129,549 |
Treasury stock, at cost (23,372,974 shares at September 30, 2013 and December 31, 2012) | -362,550 | -362,550 |
Total stockholders’ equity | 556,529 | 539,381 |
Total liabilities and stockholders’ equity | $3,645,516 | $3,511,339 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Available for sale: | ' | ' |
Fixed maturity securities, amortized cost | $2,108,624 | $1,950,209 |
Premiums receivable, bad debt allowance | 7,397 | 5,957 |
Stockholders' equity | ' | ' |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 54,579,523 | 54,144,453 |
Common stock, shares outstanding (in shares) | 31,206,549 | 30,771,479 |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Treasury stock, at cost (in shares) | 23,372,974 | 23,372,974 |
Debt Securities [Member] | ' | ' |
Available for sale: | ' | ' |
Fixed maturity securities, amortized cost | 2,022,240 | 1,869,142 |
Equity Securities [Member] | ' | ' |
Available for sale: | ' | ' |
Fixed maturity securities, amortized cost | $86,384 | $81,067 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues | ' | ' | ' | ' |
Net premiums earned | $164,429 | $131,766 | $472,357 | $360,621 |
Net investment income | 17,799 | 17,506 | 52,849 | 54,188 |
Realized gains on investments, net | 1,075 | 1,838 | 5,735 | 4,561 |
Other income | 29 | 30 | 276 | 225 |
Total revenues | 183,332 | 151,140 | 531,217 | 419,595 |
Expenses | ' | ' | ' | ' |
Losses and loss adjustment expenses | 105,767 | 96,823 | 326,677 | 265,150 |
Commission expense | 19,946 | 16,681 | 58,466 | 47,118 |
Underwriting and other operating expenses | 32,493 | 30,147 | 96,282 | 93,452 |
Interest expense | 815 | 896 | 2,420 | 2,656 |
Total expenses | 159,021 | 144,547 | 483,845 | 408,376 |
Net income before income taxes | 24,311 | 6,593 | 47,372 | 11,219 |
Income tax benefit | -3,274 | -1,173 | -2,291 | -7,903 |
Net income | 27,585 | 7,766 | 49,663 | 19,122 |
Earnings per common share (Note 11): | ' | ' | ' | ' |
Basic | $0.88 | $0.25 | $1.60 | $0.60 |
Diluted | $0.86 | $0.25 | $1.56 | $0.60 |
Cash dividends declared per common share | $0.06 | $0.06 | $0.18 | $0.18 |
Comprehensive income | ' | ' | ' | ' |
Unrealized gains (losses) during the period (net of tax expense (benefit) of $2,236 and $8,639 for the three months ended September 30, 2013 and 2012, respectively, and $(18,635) and $13,963 for the nine months ended September 30, 2013 and 2012, respectively) | 4,154 | 16,045 | -34,607 | 25,933 |
Reclassification adjustment for realized gains in net income (net of taxes of $376 and $643 for the three months ended September 30, 2013 and 2012, respectively, and $2,007 and $1,596 for the nine months ended September 30, 2013 and 2012, respectively) | -699 | -1,195 | -3,728 | -2,966 |
Other comprehensive income (loss), net of tax | 3,455 | 14,850 | -38,335 | 22,967 |
Total comprehensive income | 31,040 | 22,616 | 11,328 | 42,089 |
Realized gains on investments, net | ' | ' | ' | ' |
Net realized gains on investments before credit related impairments on fixed maturity securities | 1,075 | 1,838 | 5,803 | 5,090 |
Other than temporary impairment, credit losses recognized in earnings | 0 | 0 | -68 | -529 |
Realized gains on investments, net | $1,075 | $1,838 | $5,735 | $4,561 |
Conolidated_Statements_of_Comp
Conolidated Statements of Comprehensive Income (Parentheticals) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Statement Parenthetical [Abstract] | ' | ' | ' | ' |
Other comprehensive income (loss), unrealized holding gain (loss) on securities arising during period, tax | $2,236 | $8,639 | ($18,635) | $13,963 |
Other comprehensive income (loss), reclassification adjustment for sale of securities included in net income, tax | $376 | $643 | $2,007 | $1,595 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Operating activities | ' | ' |
Net income | $49,663 | $19,122 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 4,324 | 4,193 |
Stock-based compensation | 5,815 | 3,942 |
Amortization of premium on investments, net | 6,574 | 5,342 |
Deferred income tax expense | -5,482 | -10,031 |
Realized gains on investments, net | -5,735 | -4,561 |
Excess tax benefit from stock-based compensation, operating activities | -386 | 0 |
Other | 1,007 | 860 |
Change in operating assets and liabilities: | ' | ' |
Premiums receivable | -61,368 | -65,455 |
Reinsurance recoverable for paid and unpaid losses | 26,065 | 29,393 |
Federal income taxes | -925 | 2,054 |
Unpaid losses and loss adjustment expenses | 73,767 | 32,061 |
Unearned premiums | 53,834 | 75,910 |
Accounts payable, accrued expenses and other liabilities | 6,201 | 1,130 |
Deferred reinsurance gain—LPT Agreement | -20,441 | -11,501 |
Contingent commission receivable—LPT Agreement | -2,247 | -2,450 |
Other | -6,622 | 10,584 |
Net cash provided by operating activities | 124,044 | 90,593 |
Investing activities | ' | ' |
Purchase of fixed maturities | -340,343 | -260,797 |
Purchase of equity securities | -22,058 | -28,336 |
Proceeds from sale of fixed maturities | 32,706 | 45,799 |
Proceeds from sale of equity securities | 22,266 | 13,534 |
Proceeds from maturities and redemptions of investments | 148,418 | 181,640 |
Proceeds from sale of fixed assets | 285 | 107 |
Capital expenditures | -5,552 | -5,177 |
Restricted cash and cash equivalents (used in) provided by investing activities | -725 | 837 |
Net cash used in investing activities | -165,003 | -52,393 |
Financing activities | ' | ' |
Acquisition of treasury stock | 0 | -41,385 |
Cash transactions related to stock-based compensation | 5,315 | -209 |
Dividends paid to stockholders | -5,580 | -5,664 |
Excess tax benefits from stock-based compensation, financing activities | 386 | 0 |
Net cash provided by (used in) financing activities | 121 | -47,258 |
Net decrease in cash and cash equivalents | -40,838 | -9,058 |
Cash and cash equivalents at the beginning of the period | 140,661 | 252,300 |
Cash and cash equivalents at the end of the period | $99,823 | ' |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Basis of Presentation [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation and Summary of Operations | |
Employers Holdings, Inc. (EHI) is a Nevada holding company. Through its wholly owned insurance subsidiaries, Employers Insurance Company of Nevada (EICN), Employers Compensation Insurance Company (ECIC), Employers Preferred Insurance Company (EPIC), and Employers Assurance Company (EAC), EHI is engaged in the commercial property and casualty insurance industry, specializing in workers' compensation products and services. Unless otherwise indicated, all references to the “Company” refer to EHI, together with its subsidiaries. | |
The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities Exchange Act of 1934, as amended. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal, recurring adjustments) necessary for a fair presentation of the Company’s consolidated financial position and results of operations for the periods presented have been included. The results of operations for an interim period are not necessarily indicative of the results for an entire year. These financial statements have been prepared consistent with the accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. | |
The Company considers an operating segment to be any component of its business whose operating results are regularly reviewed by the Company’s chief operating decision makers to make decisions about resources to be allocated to the segment and assess its performance based on discrete financial information. Currently, the Company has one operating segment, workers’ compensation insurance and related services. | |
Use of Estimates | |
The preparation of the consolidated 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 consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. As a result, actual results could differ from these estimates. The most significant areas that require management judgment are the estimate of unpaid losses and loss adjustment expenses (LAE), evaluation of reinsurance recoverables, recognition of premium revenue, deferred income taxes, valuation of investments, and the valuation of goodwill and intangible assets. | |
Reclassifications | |
Certain prior period information has been reclassified to conform to the current period presentation. |
Change_in_Estimate_Level_1_Not
Change in Estimate Level 1 (Notes) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Changes and Error Corrections [Abstract] | ' |
Accounting Changes and Error Corrections | ' |
Changes in Estimates | |
During the third quarter of 2013, the Company reduced its estimated reserves ceded under the Loss Portfolio Transfer Agreement (LPT Agreement) by $14.5 million. This change in estimate resulted in a $10.1 million cumulative adjustment to the deferred reinsurance gain–LPT Agreement (Deferred Gain), which was also recognized in losses and LAE in the consolidated statement of comprehensive income, so that the Deferred Gain reflects the balance that would have existed had the revised reserves been recognized at the inception of the LPT Agreement (LPT Reserve Adjustment). This change in estimate was the result of the determination in the third quarter of 2013 that an adjustment was necessary to reflect observed favorable paid loss trends. This change in estimate increased net income by $10.1 million, or $0.32 per basic and diluted share, for the three months ended September 30, 2013 and $0.33 and $0.32 per basic and diluted share, respectively, for the nine months ended September 30, 2013. | |
During the third quarter of 2013, the Company reallocated $24.3 million in reserves from non-taxable periods prior to January 1, 2000 to taxable years, which reduced our effective tax rate by 10.5 percentage points for the nine months ended September 30, 2013. This change in estimate was the result of the determination in the third quarter of 2013 that a reallocation of reserves among accident years was appropriate to address a continuation of observed loss trends. The income tax impact of this change in estimate increased net income by $5.0 million, or $0.16 per basic and diluted share for the three and nine months ended September 30, 2013. |
New_Accounting_Standards
New Accounting Standards | 9 Months Ended |
Sep. 30, 2013 | |
New Accounting Standards [Abstract] | ' |
New Accounting Standards | ' |
New Accounting Standards | |
In February 2013, the Financial Accounting Standards Board issued Accounting Standards Update Number 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (Topic 220). This update requires companies to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under GAAP to be reclassified in its entirety to net income. For other amounts that are not required under GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under GAAP that provide additional detail about those amounts. This update became effective prospectively for reporting periods beginning after December 15, 2012. The Company adopted this update beginning in the first quarter of 2013. The adoption of this new guidance did not have a material impact on the Company's consolidated financial condition or results of operations. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Fair Value of Financial Instruments [Abstract] | ' | ||||||||||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||||||||||
The carrying value and the estimated fair value of the Company’s financial instruments were as follows: | |||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||
Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Financial assets | |||||||||||||||||||||||||
Investments | $ | 2,248,952 | $ | 2,248,952 | $ | 2,149,514 | $ | 2,149,514 | |||||||||||||||||
Cash and cash equivalents | 99,823 | 99,823 | 140,661 | 140,661 | |||||||||||||||||||||
Restricted cash and cash equivalents | 6,078 | 6,078 | 5,353 | 5,353 | |||||||||||||||||||||
Financial liabilities | |||||||||||||||||||||||||
Notes payable | 112,000 | 114,501 | 112,000 | 118,207 | |||||||||||||||||||||
The Company's estimates of fair value for financial liabilities are based on a combination of the variable interest rates for the Company's existing line of credit and other notes with similar durations to discount the projection of future payments on notes payable, and have been determined to be Level 2 fair value measurements, as defined below. | |||||||||||||||||||||||||
Assets and liabilities recorded at fair value on the consolidated balance sheets are categorized based upon the levels of judgment associated with the inputs used to measure their fair value. Level inputs are defined as follows: | |||||||||||||||||||||||||
• | Level 1 - Inputs are unadjusted quoted market prices for identical assets or liabilities in active markets at the measurement date. | ||||||||||||||||||||||||
• | Level 2 - Inputs other than Level 1 prices that are observable for similar assets or liabilities through corroboration with market data at the measurement date. | ||||||||||||||||||||||||
• | Level 3 - Inputs that are unobservable that reflect management's best estimate of what market participants would use in pricing the assets or liabilities at the measurement date. | ||||||||||||||||||||||||
The following methods and assumptions were used to determine the fair value of each class of assets and liabilities recorded at fair value in the consolidated balance sheets. | |||||||||||||||||||||||||
Fair value of available-for-sale fixed maturity and equity securities is based on quoted market prices, where available, and is obtained primarily from third party pricing services, which generally use Level 1 or Level 2 inputs. The Company obtains a quoted price for each security from third party pricing services. The quoted prices are derived through recently reported trades for identical or similar securities. For securities not actively traded, the third party pricing services may use quoted market prices of similar instruments or discounted cash flow analyses, incorporating inputs that are currently observable in the markets for similar securities. Inputs that are often used in the valuation methodologies include, but are not limited to, broker quotes, benchmark yields, credit spreads, default rates, and prepayment speeds. The Company also performs a quarterly analysis on the prices received from third party pricing services to determine whether the prices are reasonable estimates of fair value, including confirming the fair values of these securities through observable market prices using an alternative pricing source. If differences are noted in this review, the Company may obtain additional information from other pricing services to validate the quoted price. There were no adjustments to prices obtained from third party pricing services as of September 30, 2013 or December 31, 2012 that were material to the consolidated financial statements. | |||||||||||||||||||||||||
If quoted market prices and an estimate determined by using objectively verifiable information are unavailable, the Company produces an estimate of fair value based on internally developed valuation techniques, which, depending on the level of observable market inputs, will render the fair value estimate as Level 2 or Level 3. The Company bases all of its estimates of fair value for assets on the bid price as it represents what a third party market participant would be willing to pay in an arm's length transaction. | |||||||||||||||||||||||||
These methods of valuation will only produce an estimate of fair value if there is objectively verifiable information to produce a valuation. If objectively verifiable information is not available, the Company would be required to produce an estimate of fair value using some of the same methodologies, making assumptions for market-based inputs that are unavailable. | |||||||||||||||||||||||||
Estimates of fair value for fixed maturity securities are based on estimates using objectively verifiable information and are included in the amount disclosed in Level 2 of the hierarchy. The Level 3 fair value estimates include the Company's assumptions about risk assessments and market participant assumptions based on the best information available, including quotes from market makers and other broker/dealers recognized as market participants, using standard or trade derived inputs, new issue data, monthly payment information, cash flow generation, prepayment speeds, spread adjustments, or rating updates. | |||||||||||||||||||||||||
The following table presents the items on the accompanying consolidated balance sheets that are stated at fair value and the fair value measurements. | |||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||||
U.S. Treasuries | $ | — | $ | 159,293 | $ | — | $ | — | $ | 152,490 | $ | — | |||||||||||||
U.S. Agencies | — | 74,623 | — | — | 93,967 | — | |||||||||||||||||||
States and municipalities | — | 761,801 | — | — | 758,516 | — | |||||||||||||||||||
Corporate securities | — | 754,226 | — | — | 676,243 | — | |||||||||||||||||||
Residential mortgage-backed securities | — | 258,851 | — | — | 252,852 | — | |||||||||||||||||||
Commercial mortgage-backed securities | — | 51,269 | — | — | 56,120 | — | |||||||||||||||||||
Asset-backed securities | — | 41,294 | — | — | 34,240 | — | |||||||||||||||||||
Total fixed maturity securities | — | 2,101,357 | — | — | 2,024,428 | — | |||||||||||||||||||
Equity securities | $ | 147,595 | $ | — | $ | — | $ | 125,086 | $ | — | $ | — | |||||||||||||
Investments
Investments | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||
Investments [Abstract] | ' | ||||||||||||||||||||||
Investments | ' | ||||||||||||||||||||||
Investments | |||||||||||||||||||||||
The cost or amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of the Company’s investments were as follows: | |||||||||||||||||||||||
Cost or Amortized | Gross | Gross | Estimated | ||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | ||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
At September 30, 2013 | |||||||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||
U.S. Treasuries | $ | 150,708 | $ | 8,598 | $ | (13 | ) | $ | 159,293 | ||||||||||||||
U.S. Agencies | 71,058 | 3,565 | — | 74,623 | |||||||||||||||||||
States and municipalities | 721,713 | 43,616 | (3,528 | ) | 761,801 | ||||||||||||||||||
Corporate securities | 732,309 | 30,528 | (8,611 | ) | 754,226 | ||||||||||||||||||
Residential mortgage-backed securities | 252,022 | 9,574 | (2,745 | ) | 258,851 | ||||||||||||||||||
Commercial mortgage-backed securities | 53,044 | 361 | (2,136 | ) | 51,269 | ||||||||||||||||||
Asset-backed securities | 41,386 | 76 | (168 | ) | 41,294 | ||||||||||||||||||
Total fixed maturity securities | 2,022,240 | 96,318 | (17,201 | ) | 2,101,357 | ||||||||||||||||||
Equity securities | 86,384 | 61,617 | (406 | ) | 147,595 | ||||||||||||||||||
Total investments | $ | 2,108,624 | $ | 157,935 | $ | (17,607 | ) | $ | 2,248,952 | ||||||||||||||
At December 31, 2012 | |||||||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||
U.S. Treasuries | $ | 138,839 | $ | 13,651 | $ | — | $ | 152,490 | |||||||||||||||
U.S. Agencies | 88,202 | 5,765 | — | 93,967 | |||||||||||||||||||
States and municipalities | 689,776 | 68,740 | — | 758,516 | |||||||||||||||||||
Corporate securities | 627,047 | 49,461 | (265 | ) | 676,243 | ||||||||||||||||||
Residential mortgage-backed securities | 236,461 | 16,488 | (97 | ) | 252,852 | ||||||||||||||||||
Commercial mortgage-backed securities | 54,755 | 1,410 | (45 | ) | 56,120 | ||||||||||||||||||
Asset-backed securities | 34,062 | 211 | (33 | ) | 34,240 | ||||||||||||||||||
Total fixed maturity securities | 1,869,142 | 155,726 | (440 | ) | 2,024,428 | ||||||||||||||||||
Equity securities | 81,067 | 45,399 | (1,380 | ) | 125,086 | ||||||||||||||||||
Total investments | $ | 1,950,209 | $ | 201,125 | $ | (1,820 | ) | $ | 2,149,514 | ||||||||||||||
The amortized cost and estimated fair value of fixed maturity securities at September 30, 2013, by contractual maturity, are shown below. Expected maturities differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||||
Amortized Cost | Estimated Fair Value | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Due in one year or less | $ | 141,285 | $ | 143,450 | |||||||||||||||||||
Due after one year through five years | 786,373 | 822,971 | |||||||||||||||||||||
Due after five years through ten years | 571,472 | 598,132 | |||||||||||||||||||||
Due after ten years | 176,658 | 185,390 | |||||||||||||||||||||
Mortgage and asset-backed securities | 346,452 | 351,414 | |||||||||||||||||||||
Total | $ | 2,022,240 | $ | 2,101,357 | |||||||||||||||||||
The following is a summary of investments that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 months or greater as of September 30, 2013 and December 31, 2012. | |||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||
Estimated Fair Value | Gross Unrealized Losses | Number of Issues | Estimated Fair Value | Gross Unrealized Losses | Number of Issues | ||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Less than 12 months: | |||||||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||
U.S. Treasuries | $ | 4,440 | $ | (13 | ) | 2 | $ | — | $ | — | — | ||||||||||||
States and municipalities | 101,983 | (3,528 | ) | 27 | — | — | — | ||||||||||||||||
Corporate securities | 257,784 | (8,453 | ) | 94 | 36,338 | (265 | ) | 12 | |||||||||||||||
Residential mortgage-backed securities | 78,234 | (2,739 | ) | 36 | 14,629 | (28 | ) | 6 | |||||||||||||||
Commercial mortgage-backed securities | 33,681 | (2,136 | ) | 10 | 10,432 | (45 | ) | 4 | |||||||||||||||
Asset-backed securities | 30,490 | (168 | ) | 14 | 16,714 | (33 | ) | 5 | |||||||||||||||
Total fixed maturity securities | 506,612 | (17,037 | ) | 183 | 78,113 | (371 | ) | 27 | |||||||||||||||
Equity securities | 7,852 | (329 | ) | 24 | 11,645 | (1,207 | ) | 35 | |||||||||||||||
Total less than 12 months | $ | 514,464 | $ | (17,366 | ) | 207 | $ | 89,758 | $ | (1,578 | ) | 62 | |||||||||||
12 months or greater: | |||||||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||
Corporate securities | $ | 2,426 | $ | (158 | ) | 1 | $ | — | $ | — | — | ||||||||||||
Residential mortgage-backed securities | 498 | (6 | ) | 16 | 2,341 | (69 | ) | 17 | |||||||||||||||
Total fixed maturity securities | 2,924 | (164 | ) | 17 | 2,341 | (69 | ) | 17 | |||||||||||||||
Equity securities | 617 | (77 | ) | 1 | 456 | (173 | ) | 4 | |||||||||||||||
Total 12 months or greater | $ | 3,541 | $ | (241 | ) | 18 | $ | 2,797 | $ | (242 | ) | 21 | |||||||||||
Total available-for-sale: | |||||||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||
U.S. Treasuries | $ | 4,440 | $ | (13 | ) | 2 | $ | — | $ | — | — | ||||||||||||
States and municipalities | 101,983 | (3,528 | ) | 27 | — | — | — | ||||||||||||||||
Corporate securities | 260,210 | (8,611 | ) | 95 | 36,338 | (265 | ) | 12 | |||||||||||||||
Residential mortgage-backed securities | 78,732 | (2,745 | ) | 52 | 16,970 | (97 | ) | 23 | |||||||||||||||
Commercial mortgage-backed securities | 33,681 | (2,136 | ) | 10 | 10,432 | (45 | ) | 4 | |||||||||||||||
Asset-backed securities | 30,490 | (168 | ) | 14 | 16,714 | (33 | ) | 5 | |||||||||||||||
Total fixed maturity securities | 509,536 | (17,201 | ) | 200 | 80,454 | (440 | ) | 44 | |||||||||||||||
Equity securities | 8,469 | (406 | ) | 25 | 12,101 | (1,380 | ) | 39 | |||||||||||||||
Total available-for-sale | $ | 518,005 | $ | (17,607 | ) | 225 | $ | 92,555 | $ | (1,820 | ) | 83 | |||||||||||
Based on reviews of the fixed maturity securities, the Company determined that unrealized losses for the nine months ended September 30, 2013 were primarily the result of changes in prevailing interest rates and not the credit quality of the issuers. The fixed maturity securities whose total fair value was less than amortized cost were not determined to be other-than-temporarily impaired given the severity and duration of the impairment, the credit quality of the issuers, the Company’s intent to not sell the securities, and a determination that it is not more likely than not that the Company will be required to sell the securities until fair value recovers to above cost, or maturity. | |||||||||||||||||||||||
Based on reviews of the equity securities, the Company recognized an impairment of $0.1 million in the fair value of one equity security for the nine months ended September 30, 2013 as a result of the severity and duration of the change in fair value of that security. | |||||||||||||||||||||||
Realized gains on investments, net, and the change in unrealized gains (losses) on fixed maturity and equity securities are determined on a specific-identification basis and were as follows: | |||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Realized gains on investments, net | |||||||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||
Gross gains | $ | 215 | $ | 1,138 | $ | 216 | $ | 3,433 | |||||||||||||||
Gross losses | (7 | ) | — | (7 | ) | (5 | ) | ||||||||||||||||
Realized gains on fixed maturity securities, net | $ | 208 | $ | 1,138 | $ | 209 | $ | 3,428 | |||||||||||||||
Equity securities | |||||||||||||||||||||||
Gross gains | $ | 868 | $ | 731 | $ | 5,845 | $ | 1,891 | |||||||||||||||
Gross losses | (1 | ) | (31 | ) | (319 | ) | (758 | ) | |||||||||||||||
Realized gains on equity securities, net | $ | 867 | $ | 700 | $ | 5,526 | $ | 1,133 | |||||||||||||||
Total | $ | 1,075 | $ | 1,838 | $ | 5,735 | $ | 4,561 | |||||||||||||||
Change in unrealized gains (losses) | |||||||||||||||||||||||
Fixed maturity securities | $ | (1,086 | ) | $ | 17,600 | $ | (76,168 | ) | $ | 21,158 | |||||||||||||
Equity securities | 6,401 | 5,246 | 17,191 | 14,177 | |||||||||||||||||||
Total | $ | 5,315 | $ | 22,846 | $ | (58,977 | ) | $ | 35,335 | ||||||||||||||
Net investment income was as follows: | |||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Fixed maturity securities | $ | 17,465 | $ | 17,161 | $ | 51,991 | $ | 53,261 | |||||||||||||||
Equity securities | 950 | 856 | 2,733 | 2,280 | |||||||||||||||||||
Cash equivalents and restricted cash | 19 | 134 | 82 | 546 | |||||||||||||||||||
18,434 | 18,151 | 54,806 | 56,087 | ||||||||||||||||||||
Investment expenses | (635 | ) | (645 | ) | (1,957 | ) | (1,899 | ) | |||||||||||||||
Net investment income | $ | 17,799 | $ | 17,506 | $ | 52,849 | $ | 54,188 | |||||||||||||||
The Company is required by various state laws and regulations to keep securities or letters of credit in depository accounts with certain states in which it does business. As of September 30, 2013 and December 31, 2012, securities having a fair value of $603.4 million and $530.6 million, respectively, were on deposit. These laws and regulations govern not only the amount, but also the types of securities that are eligible for deposit. The deposits are limited to fixed maturity securities in all states. Additionally, certain reinsurance contracts require Company funds to be held in trust for the benefit of the ceding reinsurer to secure the outstanding liabilities assumed by the Company. The fair value of fixed maturity securities held in trust for the benefit of ceding reinsurers at September 30, 2013 and December 31, 2012 was $32.1 million and $35.0 million, respectively. Pursuant to the Amended Credit Facility, a portion of the Company's debt was secured by fixed maturity securities and restricted cash and cash equivalents that had a fair value of $100.6 million and $110.4 million at September 30, 2013 and December 31, 2012, respectively. |
Income_Taxes
Income Taxes | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Income Taxes [Abstract] | ' | ||||||
Income Taxes | ' | ||||||
Income Taxes | |||||||
Income tax expense for interim periods is measured using an estimated effective tax rate for the annual period. The following is a reconciliation of the federal statutory income tax rate to the Company’s effective tax rates for the periods presented. | |||||||
Nine Months Ended | |||||||
September 30, | |||||||
2013 | 2012 | ||||||
Expense computed at statutory rate | 35 | % | 35 | % | |||
Dividends received deduction and tax-exempt interest | (15.0 | ) | (65.3 | ) | |||
LPT deferred gain amortization | (9.3 | ) | (44.7 | ) | |||
LPT Reserve Adjustment | (6.0 | ) | — | ||||
Pre-privatization reserve adjustment, excluding LPT | (10.5 | ) | — | ||||
Other | 1 | 4.6 | |||||
Effective tax rate | (4.8 | )% | (70.4 | )% |
Liability_for_Unpaid_Losses_an
Liability for Unpaid Losses and Loss Adjustment Expenses | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Liability for Unpaid Losses and Loss Adjustment Expenses [Abstract] | ' | ||||||||
Liability for Unpaid Losses and Loss Adjustment Expenses | ' | ||||||||
Liability for Unpaid Losses and Loss Adjustment Expenses | |||||||||
The following table represents a reconciliation of changes in the liability for unpaid losses and LAE. | |||||||||
Nine Months Ended | |||||||||
September 30, | |||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
Unpaid losses and LAE, gross of reinsurance, at beginning of period | $ | 2,231,540 | $ | 2,272,363 | |||||
Less reinsurance recoverables for unpaid losses and LAE | 805,386 | 940,840 | |||||||
Net unpaid losses and LAE at beginning of period | 1,426,154 | 1,331,523 | |||||||
Losses and LAE, net of reinsurance, related to: | |||||||||
Current period | 347,568 | 277,821 | |||||||
Prior periods | 1,797 | 1,281 | |||||||
Total net losses and LAE incurred during the period | 349,365 | 279,102 | |||||||
Deduct payments for losses and LAE, net of reinsurance, related to: | |||||||||
Current period | 46,347 | 40,991 | |||||||
Prior periods | 203,707 | 178,087 | |||||||
Total net payments for losses and LAE during the period | 250,054 | 219,078 | |||||||
Ending unpaid losses and LAE, net of reinsurance | 1,525,465 | 1,391,547 | |||||||
Reinsurance recoverable for unpaid losses and LAE | 779,842 | 912,877 | |||||||
Unpaid losses and LAE, gross of reinsurance, at end of period | $ | 2,305,307 | $ | 2,304,424 | |||||
Total net losses and LAE included in the above table excludes the impact of the amortization of the deferred reinsurance gain—LPT Agreement (Note 8). | |||||||||
The increase in the estimates of incurred losses and LAE attributable to insured events for prior periods was primarily related to the Company's assigned risk business. |
LPT_Agreement
LPT Agreement | 9 Months Ended |
Sep. 30, 2013 | |
LPT Agreement [Abstract] | ' |
LPT Agreement | ' |
LPT Agreement | |
The Company is party to a 100% quota share retroactive reinsurance agreement (LPT Agreement) under which $1.5 billion in liabilities for losses and LAE related to claims incurred by EICN prior to July 1, 1995 were reinsured for consideration of $775.0 million. The LPT Agreement provides coverage up to $2.0 billion. The initial Deferred Gain resulting from the LPT Agreement was recorded as a liability in the accompanying consolidated balance sheets as Deferred reinsurance gain–LPT Agreement. The Company is also entitled to receive a contingent profit commission under the LPT Agreement. The contingent profit commission is an amount based on the favorable difference between actual paid losses and LAE and expected paid losses and LAE as established in the LPT Agreement. The Company records its estimate of contingent profit commission in the accompanying consolidated balance sheets as Contingent commission receivable–LPT Agreement and a corresponding liability is recorded on the accompanying consolidated balance sheets in Deferred reinsurance gain–LPT Agreement. The Deferred Gain is being amortized using the recovery method. Amortization is determined by the proportion of actual reinsurance recoveries to total estimated recoveries over the life of the LPT Agreement, except for the contingent profit commission, which is amortized through June 30, 2024. The amortization is recorded in losses and LAE incurred in the accompanying consolidated statements of comprehensive income. Any adjustments to the Deferred Gain are recorded in losses and LAE incurred in the accompanying consolidated statements of comprehensive income. | |
The Company amortized $22.7 million and $14.0 million of the Deferred Gain for the nine months ended September 30, 2013 and 2012, respectively. Additionally, the Deferred Gain was reduced by $10.1 million in September 2013 due to the favorable LPT Reserve Adjustment (Note 2). The remaining Deferred Gain was $260.6 million and $281.0 million as of September 30, 2013 and December 31, 2012, respectively. The estimated remaining liabilities subject to the LPT Agreement were $633.0 million and $672.3 million as of September 30, 2013 and December 31, 2012, respectively. Losses and LAE paid with respect to the LPT Agreement totaled $630.0 million and $605.1 million through September 30, 2013 and December 31, 2012, respectively. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Accumulated Other Comprehensive Income [Abstract] | ' | ||||||||
Accumulated Other Comprehensive Income, Net | ' | ||||||||
Accumulated Other Comprehensive Income, net | |||||||||
Accumulated other comprehensive income, net, is comprised of unrealized gains on investments classified as available-for-sale, net of deferred tax expense. The following table summarizes the components of accumulated other comprehensive income, net: | |||||||||
September 30, 2013 | December 31, 2012 | ||||||||
(in thousands) | |||||||||
Net unrealized gain on investments, before taxes | $ | 140,328 | $ | 199,305 | |||||
Deferred tax expense on net unrealized gains | (49,114 | ) | (69,756 | ) | |||||
Total accumulated other comprehensive income, net | $ | 91,214 | $ | 129,549 | |||||
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Stock-Based Compensation [Abstract] | ' | ||||||||||||||
Stock-Based compensation | ' | ||||||||||||||
Stock-Based Compensation | |||||||||||||||
The Company awarded stock options, restricted stock units (RSUs) and performance share units (PSUs) to certain officers and Directors of the Company as follows: | |||||||||||||||
Number Awarded | Weighted Average Fair Value on Date of Grant | Weighted Average Exercise Price | Aggregate Fair Value on Date of Grant | ||||||||||||
(in millions) | |||||||||||||||
Mar-13 | |||||||||||||||
Stock options(1) | 162,800 | $ | 7.04 | $ | 22.24 | $ | 1.1 | ||||||||
RSUs(1) | 73,894 | 22.24 | — | 1.6 | |||||||||||
PSUs(2) | 147,440 | 22.24 | — | 3.3 | |||||||||||
May-13 | |||||||||||||||
RSUs(1) | 14,550 | 24.74 | — | 0.4 | |||||||||||
Sep-13 | |||||||||||||||
RSUs(1) | 2,704 | 29.58 | — | 0.1 | |||||||||||
-1 | The stock options and RSUs awarded in March 2013 were awarded to certain officers of the Company and vest 25% on March 19, 2014, and each of the subsequent three anniversaries of that date. The stock options and RSUs are subject to accelerated vesting in certain circumstances, such as: death or disability, or in connection with change of control of the Company. The stock options expire seven years from the date of grant. | ||||||||||||||
The RSUs awarded in May and September 2013 were granted to non-employee Directors of the Company and vest on May, 23, 2014. | |||||||||||||||
-2 | The PSUs have a performance period of three years and are subject to certain performance goals, based on the Company's statutory combined ratio, with payouts that range from 0% to 200% of the target awards. The values shown in the table represent the target number of PSUs awarded. | ||||||||||||||
A total of 344,105 and 101,261 stock options were exercised during the nine months ended September 30, 2013 and the year ended December 31, 2012, respectively. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||
Earnings Per Share | |||||||||||||||||
Basic earnings per share includes no dilution and is computed by dividing income applicable to stockholders by the weighted average number of shares outstanding for the period. Diluted earnings per share reflects the potential dilutive impact of all convertible securities on earnings per share. Diluted earnings per share includes shares assumed issued under the “treasury stock method,” which reflects the potential dilution that would occur if outstanding options were to be exercised. The following table presents the net income and the weighted average shares outstanding used in the earnings per common share calculations. | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands, except share data) | |||||||||||||||||
Net income available to stockholders—basic and diluted | $ | 27,585 | $ | 7,766 | $ | 49,663 | $ | 19,122 | |||||||||
Weighted average number of shares outstanding—basic | 31,214,230 | 30,891,648 | 31,070,571 | 31,689,844 | |||||||||||||
Effect of dilutive securities: | |||||||||||||||||
PSUs | 284,217 | 23,842 | 211,347 | 6,329 | |||||||||||||
Stock options | 457,909 | 109,152 | 382,871 | 93,975 | |||||||||||||
RSUs | 77,320 | 52,736 | 136,581 | 128,472 | |||||||||||||
Dilutive potential shares | 819,446 | 185,730 | 730,799 | 228,776 | |||||||||||||
Weighted average number of shares outstanding—diluted | 32,033,676 | 31,077,378 | 31,801,370 | 31,918,620 | |||||||||||||
Diluted earnings per share excludes outstanding options and other common stock equivalents in periods where the inclusion of such options and common stock equivalents would be anti-dilutive. The following table presents options and RSUs that were excluded from diluted earnings per share. | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Options excluded as the exercise price was greater than the average market price | — | 934,597 | — | 934,597 | |||||||||||||
Options and RSUs excluded under the treasury method as the potential proceeds on settlement or exercise price was greater than the value of shares acquired | 165,504 | 242,300 | 165,504 | 556,212 | |||||||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Fair Value of Financial Instruments [Abstract] | ' | ||||||||||||||||||||||||
Estimated fair value of financial instruments table | ' | ||||||||||||||||||||||||
The carrying value and the estimated fair value of the Company’s financial instruments were as follows: | |||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||
Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Financial assets | |||||||||||||||||||||||||
Investments | $ | 2,248,952 | $ | 2,248,952 | $ | 2,149,514 | $ | 2,149,514 | |||||||||||||||||
Cash and cash equivalents | 99,823 | 99,823 | 140,661 | 140,661 | |||||||||||||||||||||
Restricted cash and cash equivalents | 6,078 | 6,078 | 5,353 | 5,353 | |||||||||||||||||||||
Financial liabilities | |||||||||||||||||||||||||
Notes payable | 112,000 | 114,501 | 112,000 | 118,207 | |||||||||||||||||||||
Fair value, assets and liabilities measured on recurring basis table | ' | ||||||||||||||||||||||||
The following table presents the items on the accompanying consolidated balance sheets that are stated at fair value and the fair value measurements. | |||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||||
U.S. Treasuries | $ | — | $ | 159,293 | $ | — | $ | — | $ | 152,490 | $ | — | |||||||||||||
U.S. Agencies | — | 74,623 | — | — | 93,967 | — | |||||||||||||||||||
States and municipalities | — | 761,801 | — | — | 758,516 | — | |||||||||||||||||||
Corporate securities | — | 754,226 | — | — | 676,243 | — | |||||||||||||||||||
Residential mortgage-backed securities | — | 258,851 | — | — | 252,852 | — | |||||||||||||||||||
Commercial mortgage-backed securities | — | 51,269 | — | — | 56,120 | — | |||||||||||||||||||
Asset-backed securities | — | 41,294 | — | — | 34,240 | — | |||||||||||||||||||
Total fixed maturity securities | — | 2,101,357 | — | — | 2,024,428 | — | |||||||||||||||||||
Equity securities | $ | 147,595 | $ | — | $ | — | $ | 125,086 | $ | — | $ | — | |||||||||||||
Investments_Tables
Investments (Tables) | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||
Investments [Abstract] | ' | ||||||||||||||||||||||
Available-for-sale securities table | ' | ||||||||||||||||||||||
The cost or amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of the Company’s investments were as follows: | |||||||||||||||||||||||
Cost or Amortized | Gross | Gross | Estimated | ||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | ||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
At September 30, 2013 | |||||||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||
U.S. Treasuries | $ | 150,708 | $ | 8,598 | $ | (13 | ) | $ | 159,293 | ||||||||||||||
U.S. Agencies | 71,058 | 3,565 | — | 74,623 | |||||||||||||||||||
States and municipalities | 721,713 | 43,616 | (3,528 | ) | 761,801 | ||||||||||||||||||
Corporate securities | 732,309 | 30,528 | (8,611 | ) | 754,226 | ||||||||||||||||||
Residential mortgage-backed securities | 252,022 | 9,574 | (2,745 | ) | 258,851 | ||||||||||||||||||
Commercial mortgage-backed securities | 53,044 | 361 | (2,136 | ) | 51,269 | ||||||||||||||||||
Asset-backed securities | 41,386 | 76 | (168 | ) | 41,294 | ||||||||||||||||||
Total fixed maturity securities | 2,022,240 | 96,318 | (17,201 | ) | 2,101,357 | ||||||||||||||||||
Equity securities | 86,384 | 61,617 | (406 | ) | 147,595 | ||||||||||||||||||
Total investments | $ | 2,108,624 | $ | 157,935 | $ | (17,607 | ) | $ | 2,248,952 | ||||||||||||||
At December 31, 2012 | |||||||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||
U.S. Treasuries | $ | 138,839 | $ | 13,651 | $ | — | $ | 152,490 | |||||||||||||||
U.S. Agencies | 88,202 | 5,765 | — | 93,967 | |||||||||||||||||||
States and municipalities | 689,776 | 68,740 | — | 758,516 | |||||||||||||||||||
Corporate securities | 627,047 | 49,461 | (265 | ) | 676,243 | ||||||||||||||||||
Residential mortgage-backed securities | 236,461 | 16,488 | (97 | ) | 252,852 | ||||||||||||||||||
Commercial mortgage-backed securities | 54,755 | 1,410 | (45 | ) | 56,120 | ||||||||||||||||||
Asset-backed securities | 34,062 | 211 | (33 | ) | 34,240 | ||||||||||||||||||
Total fixed maturity securities | 1,869,142 | 155,726 | (440 | ) | 2,024,428 | ||||||||||||||||||
Equity securities | 81,067 | 45,399 | (1,380 | ) | 125,086 | ||||||||||||||||||
Total investments | $ | 1,950,209 | $ | 201,125 | $ | (1,820 | ) | $ | 2,149,514 | ||||||||||||||
Investments classified by contractual maturity date table | ' | ||||||||||||||||||||||
The amortized cost and estimated fair value of fixed maturity securities at September 30, 2013, by contractual maturity, are shown below. Expected maturities differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||||
Amortized Cost | Estimated Fair Value | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Due in one year or less | $ | 141,285 | $ | 143,450 | |||||||||||||||||||
Due after one year through five years | 786,373 | 822,971 | |||||||||||||||||||||
Due after five years through ten years | 571,472 | 598,132 | |||||||||||||||||||||
Due after ten years | 176,658 | 185,390 | |||||||||||||||||||||
Mortgage and asset-backed securities | 346,452 | 351,414 | |||||||||||||||||||||
Total | $ | 2,022,240 | $ | 2,101,357 | |||||||||||||||||||
Unrealized loss on investments table | ' | ||||||||||||||||||||||
The following is a summary of investments that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 months or greater as of September 30, 2013 and December 31, 2012. | |||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||
Estimated Fair Value | Gross Unrealized Losses | Number of Issues | Estimated Fair Value | Gross Unrealized Losses | Number of Issues | ||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Less than 12 months: | |||||||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||
U.S. Treasuries | $ | 4,440 | $ | (13 | ) | 2 | $ | — | $ | — | — | ||||||||||||
States and municipalities | 101,983 | (3,528 | ) | 27 | — | — | — | ||||||||||||||||
Corporate securities | 257,784 | (8,453 | ) | 94 | 36,338 | (265 | ) | 12 | |||||||||||||||
Residential mortgage-backed securities | 78,234 | (2,739 | ) | 36 | 14,629 | (28 | ) | 6 | |||||||||||||||
Commercial mortgage-backed securities | 33,681 | (2,136 | ) | 10 | 10,432 | (45 | ) | 4 | |||||||||||||||
Asset-backed securities | 30,490 | (168 | ) | 14 | 16,714 | (33 | ) | 5 | |||||||||||||||
Total fixed maturity securities | 506,612 | (17,037 | ) | 183 | 78,113 | (371 | ) | 27 | |||||||||||||||
Equity securities | 7,852 | (329 | ) | 24 | 11,645 | (1,207 | ) | 35 | |||||||||||||||
Total less than 12 months | $ | 514,464 | $ | (17,366 | ) | 207 | $ | 89,758 | $ | (1,578 | ) | 62 | |||||||||||
12 months or greater: | |||||||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||
Corporate securities | $ | 2,426 | $ | (158 | ) | 1 | $ | — | $ | — | — | ||||||||||||
Residential mortgage-backed securities | 498 | (6 | ) | 16 | 2,341 | (69 | ) | 17 | |||||||||||||||
Total fixed maturity securities | 2,924 | (164 | ) | 17 | 2,341 | (69 | ) | 17 | |||||||||||||||
Equity securities | 617 | (77 | ) | 1 | 456 | (173 | ) | 4 | |||||||||||||||
Total 12 months or greater | $ | 3,541 | $ | (241 | ) | 18 | $ | 2,797 | $ | (242 | ) | 21 | |||||||||||
Total available-for-sale: | |||||||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||
U.S. Treasuries | $ | 4,440 | $ | (13 | ) | 2 | $ | — | $ | — | — | ||||||||||||
States and municipalities | 101,983 | (3,528 | ) | 27 | — | — | — | ||||||||||||||||
Corporate securities | 260,210 | (8,611 | ) | 95 | 36,338 | (265 | ) | 12 | |||||||||||||||
Residential mortgage-backed securities | 78,732 | (2,745 | ) | 52 | 16,970 | (97 | ) | 23 | |||||||||||||||
Commercial mortgage-backed securities | 33,681 | (2,136 | ) | 10 | 10,432 | (45 | ) | 4 | |||||||||||||||
Asset-backed securities | 30,490 | (168 | ) | 14 | 16,714 | (33 | ) | 5 | |||||||||||||||
Total fixed maturity securities | 509,536 | (17,201 | ) | 200 | 80,454 | (440 | ) | 44 | |||||||||||||||
Equity securities | 8,469 | (406 | ) | 25 | 12,101 | (1,380 | ) | 39 | |||||||||||||||
Total available-for-sale | $ | 518,005 | $ | (17,607 | ) | 225 | $ | 92,555 | $ | (1,820 | ) | 83 | |||||||||||
Net realized gains and change in unrealized gains (losses), available for sale securities table | ' | ||||||||||||||||||||||
Realized gains on investments, net, and the change in unrealized gains (losses) on fixed maturity and equity securities are determined on a specific-identification basis and were as follows: | |||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Realized gains on investments, net | |||||||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||
Gross gains | $ | 215 | $ | 1,138 | $ | 216 | $ | 3,433 | |||||||||||||||
Gross losses | (7 | ) | — | (7 | ) | (5 | ) | ||||||||||||||||
Realized gains on fixed maturity securities, net | $ | 208 | $ | 1,138 | $ | 209 | $ | 3,428 | |||||||||||||||
Equity securities | |||||||||||||||||||||||
Gross gains | $ | 868 | $ | 731 | $ | 5,845 | $ | 1,891 | |||||||||||||||
Gross losses | (1 | ) | (31 | ) | (319 | ) | (758 | ) | |||||||||||||||
Realized gains on equity securities, net | $ | 867 | $ | 700 | $ | 5,526 | $ | 1,133 | |||||||||||||||
Total | $ | 1,075 | $ | 1,838 | $ | 5,735 | $ | 4,561 | |||||||||||||||
Change in unrealized gains (losses) | |||||||||||||||||||||||
Fixed maturity securities | $ | (1,086 | ) | $ | 17,600 | $ | (76,168 | ) | $ | 21,158 | |||||||||||||
Equity securities | 6,401 | 5,246 | 17,191 | 14,177 | |||||||||||||||||||
Total | $ | 5,315 | $ | 22,846 | $ | (58,977 | ) | $ | 35,335 | ||||||||||||||
Investment income table | ' | ||||||||||||||||||||||
Net investment income was as follows: | |||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Fixed maturity securities | $ | 17,465 | $ | 17,161 | $ | 51,991 | $ | 53,261 | |||||||||||||||
Equity securities | 950 | 856 | 2,733 | 2,280 | |||||||||||||||||||
Cash equivalents and restricted cash | 19 | 134 | 82 | 546 | |||||||||||||||||||
18,434 | 18,151 | 54,806 | 56,087 | ||||||||||||||||||||
Investment expenses | (635 | ) | (645 | ) | (1,957 | ) | (1,899 | ) | |||||||||||||||
Net investment income | $ | 17,799 | $ | 17,506 | $ | 52,849 | $ | 54,188 | |||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Income Taxes [Abstract] | ' | ||||||
Reconciliation of federal staturoty income tax rates to the effective tax rates table | ' | ||||||
The following is a reconciliation of the federal statutory income tax rate to the Company’s effective tax rates for the periods presented. | |||||||
Nine Months Ended | |||||||
September 30, | |||||||
2013 | 2012 | ||||||
Expense computed at statutory rate | 35 | % | 35 | % | |||
Dividends received deduction and tax-exempt interest | (15.0 | ) | (65.3 | ) | |||
LPT deferred gain amortization | (9.3 | ) | (44.7 | ) | |||
LPT Reserve Adjustment | (6.0 | ) | — | ||||
Pre-privatization reserve adjustment, excluding LPT | (10.5 | ) | — | ||||
Other | 1 | 4.6 | |||||
Effective tax rate | (4.8 | )% | (70.4 | )% |
Liability_for_Unpaid_Losses_an1
Liability for Unpaid Losses and Loss Adjustment Expenses (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Liability for Unpaid Losses and Loss Adjustment Expenses [Abstract] | ' | ||||||||
Changes in the liability for unpaid losses and LAE table | ' | ||||||||
The following table represents a reconciliation of changes in the liability for unpaid losses and LAE. | |||||||||
Nine Months Ended | |||||||||
September 30, | |||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
Unpaid losses and LAE, gross of reinsurance, at beginning of period | $ | 2,231,540 | $ | 2,272,363 | |||||
Less reinsurance recoverables for unpaid losses and LAE | 805,386 | 940,840 | |||||||
Net unpaid losses and LAE at beginning of period | 1,426,154 | 1,331,523 | |||||||
Losses and LAE, net of reinsurance, related to: | |||||||||
Current period | 347,568 | 277,821 | |||||||
Prior periods | 1,797 | 1,281 | |||||||
Total net losses and LAE incurred during the period | 349,365 | 279,102 | |||||||
Deduct payments for losses and LAE, net of reinsurance, related to: | |||||||||
Current period | 46,347 | 40,991 | |||||||
Prior periods | 203,707 | 178,087 | |||||||
Total net payments for losses and LAE during the period | 250,054 | 219,078 | |||||||
Ending unpaid losses and LAE, net of reinsurance | 1,525,465 | 1,391,547 | |||||||
Reinsurance recoverable for unpaid losses and LAE | 779,842 | 912,877 | |||||||
Unpaid losses and LAE, gross of reinsurance, at end of period | $ | 2,305,307 | $ | 2,304,424 | |||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Accumulated Other Comprehensive Income [Abstract] | ' | ||||||||
Schedule of accumulated other comprehensive income (loss) table | ' | ||||||||
The following table summarizes the components of accumulated other comprehensive income, net: | |||||||||
September 30, 2013 | December 31, 2012 | ||||||||
(in thousands) | |||||||||
Net unrealized gain on investments, before taxes | $ | 140,328 | $ | 199,305 | |||||
Deferred tax expense on net unrealized gains | (49,114 | ) | (69,756 | ) | |||||
Total accumulated other comprehensive income, net | $ | 91,214 | $ | 129,549 | |||||
StockBased_Compensation_StockB
Stock-Based Compensation Stock-Based Compensation (Tables) | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Stock-Based Compensation [Abstract] | ' | ||||||||||||||
Share-based compensation arrangements by share-based payment award table | ' | ||||||||||||||
The Company awarded stock options, restricted stock units (RSUs) and performance share units (PSUs) to certain officers and Directors of the Company as follows: | |||||||||||||||
Number Awarded | Weighted Average Fair Value on Date of Grant | Weighted Average Exercise Price | Aggregate Fair Value on Date of Grant | ||||||||||||
(in millions) | |||||||||||||||
Mar-13 | |||||||||||||||
Stock options(1) | 162,800 | $ | 7.04 | $ | 22.24 | $ | 1.1 | ||||||||
RSUs(1) | 73,894 | 22.24 | — | 1.6 | |||||||||||
PSUs(2) | 147,440 | 22.24 | — | 3.3 | |||||||||||
May-13 | |||||||||||||||
RSUs(1) | 14,550 | 24.74 | — | 0.4 | |||||||||||
Sep-13 | |||||||||||||||
RSUs(1) | 2,704 | 29.58 | — | 0.1 | |||||||||||
-1 | The stock options and RSUs awarded in March 2013 were awarded to certain officers of the Company and vest 25% on March 19, 2014, and each of the subsequent three anniversaries of that date. The stock options and RSUs are subject to accelerated vesting in certain circumstances, such as: death or disability, or in connection with change of control of the Company. The stock options expire seven years from the date of grant. | ||||||||||||||
The RSUs awarded in May and September 2013 were granted to non-employee Directors of the Company and vest on May, 23, 2014. | |||||||||||||||
-2 | The PSUs have a performance period of three years and are subject to certain performance goals, based on the Company's statutory combined ratio, with payouts that range from 0% to 200% of the target awards. The values shown in the table represent the target number of PSUs awarded. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Net income and weighted average common shares outstanding used in earnings per share calculations table | ' | ||||||||||||||||
The following table presents the net income and the weighted average shares outstanding used in the earnings per common share calculations. | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands, except share data) | |||||||||||||||||
Net income available to stockholders—basic and diluted | $ | 27,585 | $ | 7,766 | $ | 49,663 | $ | 19,122 | |||||||||
Weighted average number of shares outstanding—basic | 31,214,230 | 30,891,648 | 31,070,571 | 31,689,844 | |||||||||||||
Effect of dilutive securities: | |||||||||||||||||
PSUs | 284,217 | 23,842 | 211,347 | 6,329 | |||||||||||||
Stock options | 457,909 | 109,152 | 382,871 | 93,975 | |||||||||||||
RSUs | 77,320 | 52,736 | 136,581 | 128,472 | |||||||||||||
Dilutive potential shares | 819,446 | 185,730 | 730,799 | 228,776 | |||||||||||||
Weighted average number of shares outstanding—diluted | 32,033,676 | 31,077,378 | 31,801,370 | 31,918,620 | |||||||||||||
Antidilutive securities excluded from computation of earnings per share table | ' | ||||||||||||||||
The following table presents options and RSUs that were excluded from diluted earnings per share. | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Options excluded as the exercise price was greater than the average market price | — | 934,597 | — | 934,597 | |||||||||||||
Options and RSUs excluded under the treasury method as the potential proceeds on settlement or exercise price was greater than the value of shares acquired | 165,504 | 242,300 | 165,504 | 556,212 | |||||||||||||
Change_in_Estimate_DEI_Details
Change in Estimate DEI (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Change in Accounting Estimate [Line Items] | ' | ' | ' | ' |
Amortization of deferred gain | ' | ' | $22,700 | $14,000 |
Net income | 27,585 | 7,766 | 49,663 | 19,122 |
Change Due to Estimated Reserves Ceded Under the LPT Agreement. [Member] | ' | ' | ' | ' |
Change in Accounting Estimate [Line Items] | ' | ' | ' | ' |
Amortization of deferred gain | 10,100 | ' | 10,100 | ' |
Net income | 10,100 | ' | 10,100 | ' |
Basic and Diluted | $0.32 | ' | ' | ' |
Due to Change in Reserves for Non-Taxable Periods [Member] | ' | ' | ' | ' |
Change in Accounting Estimate [Line Items] | ' | ' | ' | ' |
Net income | $5,000 | ' | $5,000 | ' |
Basic and Diluted | $0.16 | ' | $0.16 | ' |
Change_in_Estimate_Details
Change in Estimate (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Change in Accounting Estimate [Line Items] | ' | ' | ' | ' | ' |
Unpaid losses and loss adjustment expenses | $2,305,307 | ' | $2,305,307 | ' | $2,231,540 |
Amortization of deferred gain | ' | ' | 22,700 | 14,000 | ' |
Net income | 27,585 | 7,766 | 49,663 | 19,122 | ' |
Basic | $0.88 | $0.25 | $1.60 | $0.60 | ' |
Diluted | $0.86 | $0.25 | $1.56 | $0.60 | ' |
Pre-privatization reserve adjustment, excluding LPT | ' | ' | -10.50% | 0.00% | ' |
Change Due to Estimated Reserves Ceded Under the LPT Agreement. [Member] | ' | ' | ' | ' | ' |
Change in Accounting Estimate [Line Items] | ' | ' | ' | ' | ' |
Unpaid losses and loss adjustment expenses | 14,500 | ' | 14,500 | ' | ' |
Amortization of deferred gain | 10,100 | ' | 10,100 | ' | ' |
Net income | 10,100 | ' | 10,100 | ' | ' |
Basic and Diluted | $0.32 | ' | ' | ' | ' |
Basic | ' | ' | $0.33 | ' | ' |
Diluted | ' | ' | $0.32 | ' | ' |
Due to Change in Reserves for Non-Taxable Periods [Member] | ' | ' | ' | ' | ' |
Change in Accounting Estimate [Line Items] | ' | ' | ' | ' | ' |
Unpaid losses and loss adjustment expenses | 24,300 | ' | 24,300 | ' | ' |
Net income | $5,000 | ' | $5,000 | ' | ' |
Basic and Diluted | $0.16 | ' | $0.16 | ' | ' |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Investments | $2,248,952 | $2,149,514 | ' | ' |
Investments, fair value | 2,248,952 | 2,149,514 | ' | ' |
Cash and cash equivalents | 99,823 | 140,661 | 243,242 | 252,300 |
Cash and cash equivalents, estimated fair value | 99,823 | 140,661 | ' | ' |
Restricted cash and cash equivalents | 6,078 | 5,353 | ' | ' |
Notes payable | 112,000 | 112,000 | ' | ' |
Notes Payable, fair value | 114,501 | 118,207 | ' | ' |
Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Restricted cash and cash equivalents | $6,078 | $5,353 | ' | ' |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments, Fair Value Inputs (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | $2,248,952 | $2,149,514 |
Debt Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 2,101,357 | 2,024,428 |
Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 0 | 0 |
Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 2,101,357 | 2,024,428 |
Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 0 | 0 |
US Treasury Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 159,293 | 152,490 |
US Treasury Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 0 | 0 |
US Treasury Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | ' | 152,490 |
US Treasury Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 0 | 0 |
US Government Agencies Debt Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 74,623 | 93,967 |
US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 0 | 0 |
US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | ' | 93,967 |
US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 0 | 0 |
US States and Political Subdivisions Debt Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 761,801 | 758,516 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 0 | 0 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | ' | 758,516 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 0 | 0 |
Corporate Debt Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 754,226 | 676,243 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 0 | 0 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | ' | 676,243 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 0 | 0 |
Residential Mortgage Backed Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 258,851 | 252,852 |
Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 0 | 0 |
Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | ' | 252,852 |
Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 0 | 0 |
Commercial Mortgage Backed Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 51,269 | 56,120 |
Commercial Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 0 | 0 |
Commercial Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | ' | 56,120 |
Commercial Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 0 | 0 |
Asset-backed Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 41,294 | 34,240 |
Asset-backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 0 | 0 |
Asset-backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | ' | 34,240 |
Asset-backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 0 | 0 |
Equity Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 147,595 | 125,086 |
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | ' | 125,086 |
Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 0 | 0 |
Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | $0 | $0 |
Investments_Details
Investments (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | $2,108,624 | $1,950,209 |
Gross unrealized gains | 157,935 | 201,125 |
Gross unrealized losses | -17,607 | -1,820 |
Investments | 2,248,952 | 2,149,514 |
Deposit Assets | ' | ' |
Investments | 2,248,952 | 2,149,514 |
Assets Held-in-trust | ' | ' |
Investments | 2,248,952 | 2,149,514 |
Debt Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | 2,022,240 | 1,869,142 |
Gross unrealized gains | 96,318 | 155,726 |
Gross unrealized losses | -17,201 | -440 |
Investments | 2,101,357 | 2,024,428 |
Deposit Assets | ' | ' |
Investments | 2,101,357 | 2,024,428 |
Assets Held-in-trust | ' | ' |
Investments | 2,101,357 | 2,024,428 |
US Treasury Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | 150,708 | 138,839 |
Gross unrealized gains | 8,598 | 13,651 |
Gross unrealized losses | -13 | 0 |
Investments | 159,293 | 152,490 |
Deposit Assets | ' | ' |
Investments | 159,293 | 152,490 |
Assets Held-in-trust | ' | ' |
Investments | 159,293 | 152,490 |
US Government Agencies Debt Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | 71,058 | 88,202 |
Gross unrealized gains | 3,565 | 5,765 |
Gross unrealized losses | 0 | 0 |
Investments | 74,623 | 93,967 |
Deposit Assets | ' | ' |
Investments | 74,623 | 93,967 |
Assets Held-in-trust | ' | ' |
Investments | 74,623 | 93,967 |
US States and Political Subdivisions Debt Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | 721,713 | 689,776 |
Gross unrealized gains | 43,616 | 68,740 |
Gross unrealized losses | -3,528 | 0 |
Investments | 761,801 | 758,516 |
Deposit Assets | ' | ' |
Investments | 761,801 | 758,516 |
Assets Held-in-trust | ' | ' |
Investments | 761,801 | 758,516 |
Corporate Debt Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | 732,309 | 627,047 |
Gross unrealized gains | 30,528 | 49,461 |
Gross unrealized losses | -8,611 | -265 |
Investments | 754,226 | 676,243 |
Deposit Assets | ' | ' |
Investments | 754,226 | 676,243 |
Assets Held-in-trust | ' | ' |
Investments | 754,226 | 676,243 |
Residential Mortgage Backed Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | 252,022 | 236,461 |
Gross unrealized gains | 9,574 | 16,488 |
Gross unrealized losses | -2,745 | -97 |
Investments | 258,851 | 252,852 |
Deposit Assets | ' | ' |
Investments | 258,851 | 252,852 |
Assets Held-in-trust | ' | ' |
Investments | 258,851 | 252,852 |
Commercial Mortgage Backed Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | 53,044 | 54,755 |
Gross unrealized gains | 361 | 1,410 |
Gross unrealized losses | -2,136 | -45 |
Investments | 51,269 | 56,120 |
Deposit Assets | ' | ' |
Investments | 51,269 | 56,120 |
Assets Held-in-trust | ' | ' |
Investments | 51,269 | 56,120 |
Asset-backed Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | 41,386 | 34,062 |
Gross unrealized gains | 76 | 211 |
Gross unrealized losses | -168 | -33 |
Investments | 41,294 | 34,240 |
Deposit Assets | ' | ' |
Investments | 41,294 | 34,240 |
Assets Held-in-trust | ' | ' |
Investments | 41,294 | 34,240 |
Equity Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | 86,384 | 81,067 |
Gross unrealized gains | 61,617 | 45,399 |
Gross unrealized losses | -406 | -1,380 |
Investments | 147,595 | 125,086 |
Deposit Assets | ' | ' |
Investments | 147,595 | 125,086 |
Assets Held-in-trust | ' | ' |
Investments | 147,595 | 125,086 |
Portion at Fair Value Measurement [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Investments | 32,100 | 35,000 |
Deposit Assets | ' | ' |
Investments | 32,100 | 35,000 |
Assets Held-in-trust | ' | ' |
Investments | 32,100 | 35,000 |
Portion at Fair Value Measurement [Member] | Debt Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Investments | 603,400 | 530,600 |
Deposit Assets | ' | ' |
Investments | 603,400 | 530,600 |
Assets Held-in-trust | ' | ' |
Investments | 603,400 | 530,600 |
Portion at Fair Value Measurement [Member] | Fixed Maturities and Restricted Cash Equivalents [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Investments | 100,600 | 110,400 |
Deposit Assets | ' | ' |
Investments | 100,600 | 110,400 |
Assets Held-in-trust | ' | ' |
Investments | $100,600 | $110,400 |
Investments_Amortized_Cost_and
Investments, Amortized Cost and Estimated Fair Value (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Amortized Cost | ' | ' |
Due in one year or less, amortized cost | $141,285 | ' |
Due after one year through five years, amortized cost | 786,373 | ' |
Due after five years through ten years, amortized cost | 571,472 | ' |
Due after ten years, amortized cost | 176,658 | ' |
Mortgage and asset-backed securities, amortized cost | 346,452 | ' |
Total, amortized cost | 2,022,240 | ' |
Estimated Fair Value | ' | ' |
Due in one year or less, fair value | 143,450 | ' |
Due after one year through five years, fair value | 822,971 | ' |
Due after five years through ten years, fair value | 598,132 | ' |
Due after ten years, fair value | 185,390 | ' |
Mortgage and asset-backed securities, fair value | 351,414 | ' |
Total, fair value | $2,101,357 | $2,024,428 |
Investments_Continuous_Loss_Po
Investments, Continuous Loss Position (Details) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Estimated Fair Value | ' | ' |
Estimated fair value, less than 12 months | $514,464,000 | $89,758,000 |
Estimated fair value, 12 months or greater | 3,541,000 | 2,797,000 |
Estimated fair value, total | 518,005,000 | 92,555,000 |
Gross Unrealized Losses | ' | ' |
Gross unrealized losses, less than 12 months | -17,366,000 | -1,578,000 |
Gross unrealized losses, 12 months or greater | -241,000 | -242,000 |
Estimated unrealized losses, total | -17,607,000 | -1,820,000 |
Number of issues in loss position, less than 12 months | 207 | 62 |
Number of Issues in loss position, 12 months or greater | 18 | 21 |
Number of issues loss position, aggregate | 225 | 83 |
Total impairments, value | 100,000 | ' |
Total impairments, number of securities | 1 | ' |
Debt Securities [Member] | ' | ' |
Estimated Fair Value | ' | ' |
Estimated fair value, less than 12 months | 506,612,000 | 78,113,000 |
Estimated fair value, 12 months or greater | 2,924,000 | 2,341,000 |
Estimated fair value, total | 509,536,000 | 80,454,000 |
Gross Unrealized Losses | ' | ' |
Gross unrealized losses, less than 12 months | -17,037,000 | -371,000 |
Gross unrealized losses, 12 months or greater | -164,000 | -69,000 |
Estimated unrealized losses, total | -17,201,000 | -440,000 |
Number of issues in loss position, less than 12 months | 183 | 27 |
Number of Issues in loss position, 12 months or greater | 17 | 17 |
Number of issues loss position, aggregate | 200 | 44 |
US Treasury Securities [Member] | ' | ' |
Estimated Fair Value | ' | ' |
Estimated fair value, less than 12 months | 4,440,000 | 0 |
Estimated fair value, total | 4,440,000 | 0 |
Gross Unrealized Losses | ' | ' |
Gross unrealized losses, less than 12 months | -13,000 | 0 |
Estimated unrealized losses, total | -13,000 | 0 |
Number of issues in loss position, less than 12 months | 2 | 0 |
Number of issues loss position, aggregate | 2 | 0 |
US States and Political Subdivisions Debt Securities [Member] | ' | ' |
Estimated Fair Value | ' | ' |
Estimated fair value, less than 12 months | 101,983,000 | 0 |
Estimated fair value, total | 101,983,000 | 0 |
Gross Unrealized Losses | ' | ' |
Gross unrealized losses, less than 12 months | -3,528,000 | 0 |
Estimated unrealized losses, total | -3,528,000 | 0 |
Number of issues in loss position, less than 12 months | 27 | 0 |
Number of issues loss position, aggregate | 27 | 0 |
Corporate Debt Securities [Member] | ' | ' |
Estimated Fair Value | ' | ' |
Estimated fair value, less than 12 months | 257,784,000 | 36,338,000 |
Estimated fair value, 12 months or greater | 2,426,000 | 0 |
Estimated fair value, total | 260,210,000 | 36,338,000 |
Gross Unrealized Losses | ' | ' |
Gross unrealized losses, less than 12 months | -8,453,000 | -265,000 |
Gross unrealized losses, 12 months or greater | -158,000 | 0 |
Estimated unrealized losses, total | -8,611,000 | -265,000 |
Number of issues in loss position, less than 12 months | 94 | 12 |
Number of Issues in loss position, 12 months or greater | 1 | 0 |
Number of issues loss position, aggregate | 95 | 12 |
Residential Mortgage Backed Securities [Member] | ' | ' |
Estimated Fair Value | ' | ' |
Estimated fair value, less than 12 months | 78,234,000 | 14,629,000 |
Estimated fair value, 12 months or greater | 498,000 | 2,341,000 |
Estimated fair value, total | 78,732,000 | 16,970,000 |
Gross Unrealized Losses | ' | ' |
Gross unrealized losses, less than 12 months | -2,739,000 | -28,000 |
Gross unrealized losses, 12 months or greater | -6,000 | -69,000 |
Estimated unrealized losses, total | -2,745,000 | -97,000 |
Number of issues in loss position, less than 12 months | 36 | 6 |
Number of Issues in loss position, 12 months or greater | 16 | 17 |
Number of issues loss position, aggregate | 52 | 23 |
Commercial Mortgage Backed Securities [Member] | ' | ' |
Estimated Fair Value | ' | ' |
Estimated fair value, less than 12 months | 33,681,000 | 10,432,000 |
Estimated fair value, total | 33,681,000 | 10,432,000 |
Gross Unrealized Losses | ' | ' |
Gross unrealized losses, less than 12 months | -2,136,000 | -45,000 |
Estimated unrealized losses, total | -2,136,000 | -45,000 |
Number of issues in loss position, less than 12 months | 10 | 4 |
Number of issues loss position, aggregate | 10 | 4 |
Asset-backed Securities [Member] | ' | ' |
Estimated Fair Value | ' | ' |
Estimated fair value, less than 12 months | 30,490,000 | 16,714,000 |
Estimated fair value, total | 30,490,000 | 16,714,000 |
Gross Unrealized Losses | ' | ' |
Gross unrealized losses, less than 12 months | -168,000 | -33,000 |
Estimated unrealized losses, total | -168,000 | 33,000 |
Number of issues in loss position, less than 12 months | 0 | 0 |
Number of issues loss position, aggregate | 0 | 0 |
Equity Securities [Member] | ' | ' |
Estimated Fair Value | ' | ' |
Estimated fair value, less than 12 months | 7,852,000 | 11,645,000 |
Estimated fair value, 12 months or greater | 617,000 | 456,000 |
Estimated fair value, total | 8,469,000 | 12,101,000 |
Gross Unrealized Losses | ' | ' |
Gross unrealized losses, less than 12 months | -329,000 | -1,207,000 |
Gross unrealized losses, 12 months or greater | -77,000 | -173,000 |
Estimated unrealized losses, total | -406,000 | -1,380,000 |
Number of issues in loss position, less than 12 months | 24 | 35 |
Number of Issues in loss position, 12 months or greater | 1 | 4 |
Number of issues loss position, aggregate | $25 | $39 |
Investments_Net_Realized_Gains
Investments, Net Realized Gains (Losses) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net realized gains (losses) | ' | ' | ' | ' |
Net realized gains (losses) on fixed maturity and equity securities | $1,075 | $1,838 | $5,735 | $4,561 |
Change in unrealized gains (losses) | ' | ' | ' | ' |
Change in unrealized gains (losses) on fixed maturity and equity securities | 5,315 | 22,846 | -58,977 | 35,335 |
Debt Securities [Member] | ' | ' | ' | ' |
Net realized gains (losses) | ' | ' | ' | ' |
Gross gains from sales | 215 | 1,138 | 216 | 3,433 |
Gross losses from sales | 7 | 0 | 7 | 5 |
Net realized gains (losses) on fixed maturity and equity securities | 208 | 1,138 | 209 | 3,428 |
Change in unrealized gains (losses) | ' | ' | ' | ' |
Change in unrealized gains (losses) on fixed maturity and equity securities | -1,086 | 17,600 | -76,168 | 21,158 |
Equity Securities [Member] | ' | ' | ' | ' |
Net realized gains (losses) | ' | ' | ' | ' |
Gross gains from sales | 868 | 731 | 5,845 | 1,891 |
Gross losses from sales | 1 | 31 | 319 | 758 |
Net realized gains (losses) on fixed maturity and equity securities | 867 | 700 | 5,526 | 1,133 |
Change in unrealized gains (losses) | ' | ' | ' | ' |
Change in unrealized gains (losses) on fixed maturity and equity securities | $6,401 | $5,246 | $17,191 | $14,177 |
Net_Investment_Income_Details
Net Investment Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' | ' |
Investment income | $18,434 | $18,151 | $54,806 | $56,087 |
Investment expenses | 635 | 645 | 1,957 | 1,899 |
Net investment income | 17,799 | 17,506 | 52,849 | 54,188 |
Debt Securities [Member] | ' | ' | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' | ' |
Investment income related to fixed maturity securities and short-term investments and cash equivalents | 17,465 | 17,161 | 51,991 | 53,261 |
Equity Securities [Member] | ' | ' | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' | ' |
Investment income related to equity securities | 950 | 856 | 2,733 | 2,280 |
Short-term Investments [Member] | ' | ' | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' | ' |
Investment income related to fixed maturity securities and short-term investments and cash equivalents | $19 | $134 | $82 | $546 |
Income_Taxes_Details
Income Taxes (Details) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | ' | ' |
Expense computed at statutory rate | 35.00% | 35.00% |
Dividends received deduction and tax-exempt interest | -15.00% | -65.30% |
LPT deferred gain amortization | -9.30% | -44.70% |
LPT Reserve Adjustment | -6.00% | 0.00% |
Pre-privatization reserve adjustment, excluding LPT | -10.50% | 0.00% |
Other | 1.00% | 4.60% |
Effective tax rate | -4.80% | -70.40% |
Liability_for_Unpaid_Losses_an2
Liability for Unpaid Losses and Loss Adjustment Expenses (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ' | ' |
Unpaid losses and LAE, gross of reinsurance, at beginning of period | $2,231,540 | $2,272,363 |
Less reinsurance recoverables for upaid losses and LAE | 805,386 | 940,840 |
Net unpaid losses and LAE at beginning of period | 1,426,154 | 1,331,523 |
Losses and LAE, net of reinsurance, incurred in: | ' | ' |
Current period | 347,568 | 277,821 |
Prior periods | 1,797 | 1,281 |
Total net losses and LAE incurred during the period | 349,365 | 279,102 |
Deduct payments for losses and LAE, net of reinsurance, related to: | ' | ' |
Current period | 46,347 | 40,991 |
Prior periods | 203,707 | 178,087 |
Total net payments for losses and LAE during the period | 250,054 | 219,078 |
Ending unpaid losses and LAE, net of reinsurance | 1,525,465 | 1,391,547 |
Reinsurance recoverables for unpaid losses and LAE | 779,842 | 912,877 |
Unpaid losses and LAE, gross of reinsurance, at end of period | $2,305,307 | $2,304,424 |
LPT_Agreement_LPT_Agreement_De
LPT Agreement LPT Agreement (Details) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Change Due to Estimated Reserves Ceded Under the LPT Agreement. [Member] | Change Due to Estimated Reserves Ceded Under the LPT Agreement. [Member] | Indemnification Agreement [Member] | ||||
Reinsurance Agreement [Line Items] | ' | ' | ' | ' | ' | ' |
Reinsurance quota share, percentage | 100.00% | ' | ' | ' | ' | ' |
Liabilities for the incurred but unpaid losses and LAE related to claims prior to July 1, 1995 | $1,500,000,000 | ' | ' | ' | ' | ' |
Ceded premiums written | 775,000,000 | ' | ' | ' | ' | ' |
Coverage provided under LPT Agreement | ' | ' | ' | ' | ' | 2,000,000,000 |
Amortization of deferred gain | 22,700,000 | 14,000,000 | ' | 10,100,000 | 10,100,000 | ' |
Deferred reinsurance gain—LPT Agreement | 260,602,000 | ' | 281,043,000 | ' | ' | ' |
Estimated remaining liabilities - LPT Agreement | 633,000,000 | ' | 672,300,000 | ' | ' | ' |
Paid losses and LAE claims related to LPT | $630,000,000 | ' | $605,100,000 | ' | ' | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' |
Net unrealized gain on investments, before taxes | $140,328 | $199,305 |
Deferred tax expense on net unrealized gains | -49,114 | -69,756 |
Total accumulated other comprehensive income, net | $91,214 | $129,549 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 9 Months Ended | 12 Months Ended | 9 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | |||||||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | 31-May-13 | Mar. 31, 2013 | Mar. 31, 2013 | |||||
Officer [Member] | Stock Option [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Performance Shares [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Share-based compensation award, shares issued | ' | ' | ' | 162,800 | [1] | 2,704 | [1] | 14,550 | [1] | 73,894 | [1] | 147,440 | [2] |
Share-based compensation options, exercise price on grant date | ' | ' | ' | $7.04 | [1] | $29.58 | [1] | $24.74 | [1] | $22.24 | [2] | $22.24 | [2] |
Share-based compensation award, fair value assumptions, exercise price | ' | ' | ' | $22.24 | [1] | $0 | $0 | $0 | $0 | ||||
Fair value of awards awarded on grant date | ' | ' | ' | $1.10 | [1] | $0.10 | [1] | $0.40 | [1] | $1.60 | [1] | $3.30 | [2] |
Vesting rights for options awarded | ' | ' | 'vest 25% on March 19, 2014, and each of the subsequent three anniversaries of that date | ' | ' | ' | ' | ' | |||||
Expiration Period for Options Awarded | ' | ' | 'seven years | ' | ' | ' | ' | ' | |||||
Performance share awards performance period | ' | ' | 'three years | ' | ' | ' | ' | ' | |||||
Performance share awards, minimum payout | ' | ' | 0.00% | ' | ' | ' | ' | ' | |||||
Performane share awards, maximum payout | ' | ' | 200.00% | ' | ' | ' | ' | ' | |||||
Stock-options exercised | 344,105 | 101,261 | ' | ' | ' | ' | ' | ' | |||||
[1] | The stock options and RSUs awarded in March 2013 were awarded to certain officers of the Company and vest 25% on March 19, 2014, and each of the subsequent three anniversaries of that date. The stock options and RSUs are subject to accelerated vesting in certain circumstances, such as: death or disability, or in connection with change of control of the Company. The stock options expire seven years from the date of grant.The RSUs awarded in May and September 2013 were granted to non-employee Directors of the Company and vest on May, 23, 2014. | ||||||||||||
[2] | The PSUs have a performance period of three years and are subject to certain performance goals, based on the Company's statutory combined ratio, with payouts that range from 0% to 200% of the target awards. The values shown in the table represent the target number of PSUs awarded. |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ' | ' | ' | ' |
Net income available to stockholders - basic and diluted | $27,585 | $7,766 | $49,663 | $19,122 |
Weighted average number of shares outstanding - basic | 31,214,230 | 30,891,648 | 31,070,571 | 31,689,844 |
Effect of dilutive securities: | ' | ' | ' | ' |
Dilutive securities | 819,446 | 185,730 | 730,799 | 228,776 |
Weighted average number of shares outstanding - diluted | 32,033,676 | 31,077,378 | 31,801,370 | 31,918,620 |
Antidilutive securities excluded from computation of earnings per share | 0 | 934,597 | 0 | 934,597 |
Antidilutive securites excluded under the treasury method from computation of earnings per share | 165,504 | 242,300 | 165,504 | 556,212 |
Employee Stock Option [Member] | ' | ' | ' | ' |
Effect of dilutive securities: | ' | ' | ' | ' |
Dilutive securities | 457,909 | 109,152 | 382,871 | 93,975 |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' | ' |
Effect of dilutive securities: | ' | ' | ' | ' |
Dilutive securities | 77,320 | 52,736 | 136,581 | 128,472 |
Performance Shares [Member] | ' | ' | ' | ' |
Effect of dilutive securities: | ' | ' | ' | ' |
Dilutive securities | 284,217 | 23,842 | 211,347 | 6,329 |