Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 24, 2015 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Entity Registrant Name | Employers Holdings, Inc. | |
Entity Central Index Key | 1379041 | |
Current Fiscal Year End Date | -19 | |
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 | 31,892,010 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 |
Financial_statement_notes_DEI_
Financial statement notes DEI Document (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Amortization of deferred gain | $2,900 | $3,300 |
Change to Contingent Profit Commission [Member] | ||
Amortization of deferred gain | $200 | $300 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Available for sale: | ||
Fixed maturity securities at fair value (amortized cost $2,256,400 at March 31, 2015 and $2,186,100 at December 31, 2014) | $2,360,100 | $2,275,700 |
Equity securities at fair value (cost $98,900 at March 31, 2015 and $97,800 at December 31, 2014) | 172,600 | 172,700 |
Short-term investments at fair value (amortized cost $9,000 at March 31, 2015) | 9,000 | 0 |
Total investments | 2,541,700 | 2,448,400 |
Cash and cash equivalents | 45,600 | 103,600 |
Restricted cash and cash equivalents | 8,400 | 10,800 |
Accrued investment income | 19,200 | 20,500 |
Premiums receivable (less bad debt allowance of $9,100 at March 31, 2015 and $7,900 at December 31, 2014) | 296,300 | 295,800 |
Reinsurance recoverable for: | ||
Paid losses | 7,900 | 10,700 |
Unpaid losses, including bad debt allowance | 663,000 | 669,500 |
Deferred policy acquisition costs | 46,700 | 44,600 |
Deferred income taxes, net | 43,400 | 49,700 |
Property and equipment, net | 20,300 | 21,000 |
Intangible assets, net | 8,900 | 9,000 |
Goodwill | 36,200 | 36,200 |
Contingent commission receivable—LPT Agreement | 26,600 | 26,400 |
Other assets | 36,500 | 23,500 |
Total assets | 3,800,700 | 3,769,700 |
Claims and policy liabilities: | ||
Unpaid losses and loss adjustment expenses | 2,370,300 | 2,369,700 |
Unearned premiums | 324,600 | 310,800 |
Total claims and policy liabilities | 2,694,900 | 2,680,500 |
Commissions and premium taxes payable | 45,500 | 46,300 |
Accounts payable and accrued expenses | 16,900 | 20,400 |
Deferred reinsurance gain—LPT Agreement | 204,100 | 207,000 |
Notes payable | 92,000 | 92,000 |
Other liabilities | 37,800 | 36,700 |
Total liabilities | 3,091,200 | 3,082,900 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $0.01 par value; 150,000,000 shares authorized; 55,248,130 and 54,866,802 shares issued and 31,875,156 and 31,493,828 shares outstanding at March 31, 2015 and December 31, 2014, respectively | 600 | 600 |
Preferred stock, $0.01 par value; 25,000,000 shares authorized; none issued | 0 | 0 |
Additional paid-in capital | 348,700 | 346,600 |
Retained earnings | 607,500 | 595,300 |
Accumulated other comprehensive income, net | 115,300 | 106,900 |
Treasury stock, at cost (23,372,974 shares at March 31, 2015 and December 31, 2014) | -362,600 | -362,600 |
Total stockholders’ equity | 709,500 | 686,800 |
Total liabilities and stockholders’ equity | $3,800,700 | $3,769,700 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Available for sale: | ||
Fixed maturity securities, amortized cost | $2,364,300 | $2,283,900 |
Available for sale, short-term investments, at amortized cost | 9,000 | 0 |
Premiums receivable, bad debt allowance | 9,000 | 7,900 |
Reinsurance Recoverables on Unpaid Losses, Allowance | 0 | 0 |
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) | 55,248,130 | 54,866,802 |
Common stock, shares outstanding (in shares) | 31,875,156 | 31,493,828 |
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 | 2,256,400 | 2,186,100 |
Equity Securities [Member] | ||
Available for sale: | ||
Fixed maturity securities, amortized cost | 98,900 | 97,800 |
Short-term Investments [Member] | ||
Available for sale: | ||
Fixed maturity securities, amortized cost | $9,000 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues | ||
Net premiums earned | $159,000 | $167,200 |
Net investment income | 16,900 | 18,000 |
Net realized gains on investments | 1,200 | 3,300 |
Other income | 100 | 0 |
Total revenues | 177,200 | 188,500 |
Expenses | ||
Losses and loss adjustment expenses | 106,200 | 122,300 |
Commission expense | 18,700 | 20,000 |
Underwriting and other operating expenses | 33,500 | 33,300 |
Interest expense | 700 | 800 |
Total expenses | 159,100 | 176,400 |
Net income before income taxes | 18,100 | 12,100 |
Income tax expense | 4,100 | 1,300 |
Net income | 14,000 | 10,800 |
Earnings per common share (Note 9): | ||
Basic | $0.44 | $0.34 |
Diluted | $0.43 | $0.34 |
Cash dividends declared per common share | $0.06 | $0.06 |
Comprehensive income | ||
Unrealized gains during the period (net of tax expense of $5,000 and $5,500 for the three months ended March 31, 2015 and 2014, respectively) | 9,200 | 10,200 |
Reclassification adjustment for realized gains in net income (net of taxes of $400 and $1,100 for the three months ended March 31, 2015 and 2014, respectively) | -800 | -2,100 |
Other comprehensive income, net of tax | 8,400 | 8,100 |
Total comprehensive income | 22,400 | 18,900 |
Net realized gains on investments | ||
Net realized gains on investments before credit related impairments on fixed maturity securities | 1,200 | 3,300 |
Other than temporary impairment, credit losses recognized in earnings | 0 | 0 |
Net realized gains on investments | $1,200 | $3,300 |
Conolidated_Statements_of_Comp
Conolidated Statements of Comprehensive Income (Parentheticals) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement Parenthetical [Abstract] | ||
Other comprehensive income (loss), unrealized holding gain (loss) on securities arising during period, tax | $5,000 | $5,500 |
Other comprehensive income (loss), reclassification adjustment for sale of securities included in net income, tax | $400 | $1,200 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating activities | ||
Net income | $14,000 | $10,800 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,700 | 1,800 |
Stock-based compensation | 1,800 | 1,600 |
Amortization of premium on investments, net | 3,200 | 2,500 |
Deferred income tax expense | 1,800 | -1,000 |
Realized gains on investments, net | -1,200 | -3,300 |
Excess tax benefits from stock-based compensation | -600 | -1,100 |
Other | 1,600 | 200 |
Change in operating assets and liabilities: | ||
Premiums receivable | -1,600 | -15,000 |
Reinsurance recoverable for paid and unpaid losses | 9,300 | 7,400 |
Federal income taxes | -1,600 | 1,400 |
Unpaid losses and loss adjustment expenses | 600 | 27,700 |
Unearned premiums | 13,800 | 16,700 |
Accounts payable, accrued expenses and other liabilities | -1,500 | -3,400 |
Deferred reinsurance gain—LPT Agreement | -2,900 | -3,900 |
Contingent commission receivable—LPT Agreement | -200 | -400 |
Other | -13,400 | -3,400 |
Net cash provided by operating activities | 24,800 | 38,600 |
Investing activities | ||
Purchase of fixed maturity securities | -168,000 | -94,500 |
Purchase of equity securities | -8,000 | -7,800 |
Proceeds from sale of fixed maturity securities | 0 | 35,100 |
Proceeds from sale of equity securities | 8,200 | 7,900 |
Proceeds from maturities and redemptions of investments | 85,100 | 42,400 |
Proceeds from sale of fixed assets | 0 | 0 |
Capital expenditures | -900 | -1,500 |
Change in restricted cash and cash equivalents | 2,400 | -2,400 |
Net cash used in investing activities | -81,200 | -20,800 |
Financing activities | ||
Cash transactions related to stock-based compensation | -300 | -400 |
Dividends paid to stockholders | -1,900 | -1,900 |
Excess tax benefits from stock-based compensation, financing activities | 600 | 1,100 |
Net cash used in financing activities | -1,600 | -1,200 |
Net (decrease) increase in cash and cash equivalents | -58,000 | 16,600 |
Cash and cash equivalents at the beginning of the period | 103,600 | 34,500 |
Cash and cash equivalents at the end of the period | $45,600 | $51,100 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
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, 2014. | |
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 maker 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. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
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: | |||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||
Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | ||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Financial assets | |||||||||||||||||||||||||
Investments | $ | 2,541.70 | $ | 2,541.70 | $ | 2,448.40 | $ | 2,448.40 | |||||||||||||||||
Cash and cash equivalents | 45.6 | 45.6 | 103.6 | 103.6 | |||||||||||||||||||||
Restricted cash and cash equivalents | 8.4 | 8.4 | 10.8 | 10.8 | |||||||||||||||||||||
Financial liabilities | |||||||||||||||||||||||||
Notes payable | 92 | 97.8 | 92 | 97.8 | |||||||||||||||||||||
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. The fair value measurements for notes payable have been determined to be Level 2, 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 willing market participants would use in pricing the assets or liabilities at the measurement date. | ||||||||||||||||||||||||
Fair values of available-for-sale fixed maturity and equity securities are based on quoted market prices, where available. 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. | |||||||||||||||||||||||||
The following table presents the items on the accompanying consolidated balance sheets that are stated at fair value and the corresponding fair value measurements. | |||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||||
U.S. Treasuries | $ | — | $ | 160.4 | $ | — | $ | — | $ | 166.7 | $ | — | |||||||||||||
U.S. Agencies | — | 38.5 | — | — | 39.6 | — | |||||||||||||||||||
States and municipalities | — | 813.4 | — | — | 745.8 | — | |||||||||||||||||||
Corporate securities | — | 914.7 | — | — | 908.3 | — | |||||||||||||||||||
Residential mortgage-backed securities | — | 294.3 | — | — | 288.4 | — | |||||||||||||||||||
Commercial mortgage-backed securities | — | 71.2 | — | — | 65.4 | — | |||||||||||||||||||
Asset-backed securities | — | 67.6 | — | — | 61.5 | — | |||||||||||||||||||
Total fixed maturity securities | — | 2,360.10 | — | — | 2,275.70 | — | |||||||||||||||||||
Equity securities | 172.6 | — | — | 172.7 | — | — | |||||||||||||||||||
Short-term investments | $ | — | $ | 9 | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Investments
Investments | 3 Months Ended | ||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||
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 millions) | |||||||||||||||||||||||
At March 31, 2015 | |||||||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||
U.S. Treasuries | $ | 153.6 | $ | 6.8 | $ | — | $ | 160.4 | |||||||||||||||
U.S. Agencies | 36.2 | 2.3 | — | 38.5 | |||||||||||||||||||
States and municipalities | 768.1 | 45.5 | (0.2 | ) | 813.4 | ||||||||||||||||||
Corporate securities | 878.1 | 37.7 | (1.1 | ) | 914.7 | ||||||||||||||||||
Residential mortgage-backed securities | 282.5 | 12 | (0.2 | ) | 294.3 | ||||||||||||||||||
Commercial mortgage-backed securities | 70.3 | 1 | (0.1 | ) | 71.2 | ||||||||||||||||||
Asset-backed securities | 67.6 | 0.1 | (0.1 | ) | 67.6 | ||||||||||||||||||
Total fixed maturity securities | 2,256.40 | 105.4 | (1.7 | ) | 2,360.10 | ||||||||||||||||||
Equity securities | 98.9 | 75 | (1.3 | ) | 172.6 | ||||||||||||||||||
Short-term investments | 9 | — | — | 9 | |||||||||||||||||||
Total investments | $ | 2,364.30 | $ | 180.4 | $ | (3.0 | ) | $ | 2,541.70 | ||||||||||||||
At December 31, 2014 | |||||||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||
U.S. Treasuries | $ | 160.9 | $ | 5.8 | $ | — | $ | 166.7 | |||||||||||||||
U.S. Agencies | 37.2 | 2.4 | — | 39.6 | |||||||||||||||||||
States and municipalities | 701.6 | 44.4 | (0.2 | ) | 745.8 | ||||||||||||||||||
Corporate securities | 880.7 | 30.8 | (3.2 | ) | 908.3 | ||||||||||||||||||
Residential mortgage-backed securities | 278.6 | 10.6 | (0.8 | ) | 288.4 | ||||||||||||||||||
Commercial mortgage-backed securities | 65.5 | 0.5 | (0.6 | ) | 65.4 | ||||||||||||||||||
Asset-backed securities | 61.6 | — | (0.1 | ) | 61.5 | ||||||||||||||||||
Total fixed maturity securities | 2,186.10 | 94.5 | (4.9 | ) | 2,275.70 | ||||||||||||||||||
Equity securities | 97.8 | 75.5 | (0.6 | ) | 172.7 | ||||||||||||||||||
Total investments | $ | 2,283.90 | $ | 170 | $ | (5.5 | ) | $ | 2,448.40 | ||||||||||||||
The amortized cost and estimated fair value of fixed maturity securities at March 31, 2015, 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 millions) | |||||||||||||||||||||||
Due in one year or less | $ | 165.2 | $ | 167.2 | |||||||||||||||||||
Due after one year through five years | 798.6 | 836 | |||||||||||||||||||||
Due after five years through ten years | 619.5 | 653.3 | |||||||||||||||||||||
Due after ten years | 252.6 | 270.4 | |||||||||||||||||||||
Mortgage and asset-backed securities | 420.5 | 433.2 | |||||||||||||||||||||
Total | $ | 2,256.40 | $ | 2,360.10 | |||||||||||||||||||
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 March 31, 2015 and December 31, 2014. | |||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||
Estimated Fair Value | Gross Unrealized Losses | Number of Issues | Estimated Fair Value | Gross Unrealized Losses | Number of Issues | ||||||||||||||||||
(in millions, except number of issues data) | |||||||||||||||||||||||
Less than 12 months: | |||||||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||
States and municipalities | $ | 36.9 | $ | (0.2 | ) | 8 | $ | 20.6 | $ | (0.2 | ) | 5 | |||||||||||
Corporate securities | 59.8 | (0.5 | ) | 27 | 109.9 | (0.8 | ) | 42 | |||||||||||||||
Residential mortgage-backed securities | 25.8 | (0.1 | ) | 10 | — | — | — | ||||||||||||||||
Commercial mortgage-backed securities | 10.3 | (0.1 | ) | 4 | — | — | — | ||||||||||||||||
Total fixed maturity securities | 132.8 | (0.9 | ) | 49 | 130.5 | (1.0 | ) | 47 | |||||||||||||||
Equity securities | 20.2 | (1.2 | ) | 30 | 10.1 | (0.6 | ) | 15 | |||||||||||||||
Total less than 12 months | $ | 153 | $ | (2.1 | ) | 79 | $ | 140.6 | $ | (1.6 | ) | 62 | |||||||||||
12 months or greater: | |||||||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||
Corporate securities | $ | 46 | $ | (0.6 | ) | 15 | $ | 129.4 | $ | (2.4 | ) | 39 | |||||||||||
Residential mortgage-backed securities | 9.8 | (0.1 | ) | 27 | 44.1 | (0.8 | ) | 36 | |||||||||||||||
Commercial mortgage-backed securities | — | — | — | 31.3 | (0.6 | ) | 8 | ||||||||||||||||
Asset-backed securities | 19.9 | (0.1 | ) | 6 | 18.3 | (0.1 | ) | 6 | |||||||||||||||
Total fixed maturity securities | 75.7 | (0.8 | ) | 48 | 223.1 | (3.9 | ) | 89 | |||||||||||||||
Equity securities | 0.6 | (0.1 | ) | 2 | — | — | — | ||||||||||||||||
Total 12 months or greater | $ | 76.3 | $ | (0.9 | ) | 50 | $ | 223.1 | $ | (3.9 | ) | 89 | |||||||||||
Total available-for-sale: | |||||||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||
States and municipalities | $ | 36.9 | $ | (0.2 | ) | 8 | $ | 20.6 | $ | (0.2 | ) | 5 | |||||||||||
Corporate securities | 105.8 | (1.1 | ) | 42 | 239.3 | (3.2 | ) | 81 | |||||||||||||||
Residential mortgage-backed securities | 35.6 | (0.2 | ) | 37 | 44.1 | (0.8 | ) | 36 | |||||||||||||||
Commercial mortgage-backed securities | 10.3 | (0.1 | ) | 4 | 31.3 | (0.6 | ) | 8 | |||||||||||||||
Asset-backed securities | 19.9 | (0.1 | ) | 6 | 18.3 | (0.1 | ) | 6 | |||||||||||||||
Total fixed maturity securities | 208.5 | (1.7 | ) | 97 | 353.6 | (4.9 | ) | 136 | |||||||||||||||
Equity securities | 20.8 | (1.3 | ) | 32 | 10.1 | (0.6 | ) | 15 | |||||||||||||||
Total available-for-sale | $ | 229.3 | $ | (3.0 | ) | 129 | $ | 363.7 | $ | (5.5 | ) | 151 | |||||||||||
Based on reviews of the fixed maturity securities, the Company determined that unrealized losses for the three months ended March 31, 2015 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 amortized cost, or maturity. | |||||||||||||||||||||||
Based on reviews of the equity securities for the three months ended March 31, 2015, the Company determined that the unrealized losses as of that date were not considered to be other-than-temporary due to the financial condition and near-term prospects of the issuers. | |||||||||||||||||||||||
Net realized gains on investments 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 | |||||||||||||||||||||||
March 31, | |||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Net realized gains on investments | |||||||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||
Gross gains | $ | — | $ | 0.8 | |||||||||||||||||||
Gross losses | — | — | |||||||||||||||||||||
Net realized gains on fixed maturity securities | $ | — | $ | 0.8 | |||||||||||||||||||
Equity securities | |||||||||||||||||||||||
Gross gains | $ | 1.5 | $ | 2.5 | |||||||||||||||||||
Gross losses | (0.3 | ) | — | ||||||||||||||||||||
Net realized gains on equity securities | $ | 1.2 | $ | 2.5 | |||||||||||||||||||
Total | $ | 1.2 | $ | 3.3 | |||||||||||||||||||
Change in unrealized gains (losses) | |||||||||||||||||||||||
Fixed maturity securities | $ | 14.1 | $ | 13.3 | |||||||||||||||||||
Equity securities | (1.2 | ) | (0.8 | ) | |||||||||||||||||||
Total | $ | 12.9 | $ | 12.5 | |||||||||||||||||||
Net investment income was as follows: | |||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||
March 31, | |||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Fixed maturity securities | $ | 16.4 | $ | 17.6 | |||||||||||||||||||
Equity securities | 1.1 | 1 | |||||||||||||||||||||
Cash equivalents and restricted cash | — | — | |||||||||||||||||||||
17.5 | 18.6 | ||||||||||||||||||||||
Investment expenses | (0.6 | ) | (0.6 | ) | |||||||||||||||||||
Net investment income | $ | 16.9 | $ | 18 | |||||||||||||||||||
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 March 31, 2015 and December 31, 2014, securities having a fair value of $917.3 million and $783.9 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 March 31, 2015 and December 31, 2014 was $31.3 million and $31.2 million, respectively. Pursuant to the Third Amended and Restated Credit Agreement with Wells Fargo (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 $74.0 million and $74.6 million at March 31, 2015 and December 31, 2014, respectively. |
Income_Taxes
Income Taxes | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
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. | |||||||
Three Months Ended | |||||||
March 31, | |||||||
2015 | 2014 | ||||||
Expense computed at statutory rate | 35 | % | 35 | % | |||
Dividends received deduction and tax-exempt interest | (8.8 | ) | (16.0 | ) | |||
LPT deferred gain amortization | (4.2 | ) | (8.5 | ) | |||
LPT reserve adjustment | — | (0.4 | ) | ||||
Other | 0.5 | 0.8 | |||||
Effective tax rate | 22.5 | % | 10.9 | % |
Liability_for_Unpaid_Losses_an
Liability for Unpaid Losses and Loss Adjustment Expenses | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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. | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
(in millions) | |||||||||
Unpaid losses and LAE, gross of reinsurance, at beginning of period | $ | 2,369.70 | $ | 2,330.50 | |||||
Less reinsurance recoverable, excluding bad debt allowance, on unpaid losses and LAE | 669.5 | 743.1 | |||||||
Net unpaid losses and LAE at beginning of period | 1,700.20 | 1,587.40 | |||||||
Losses and LAE, net of reinsurance, related to: | |||||||||
Current period | 107.7 | 124.8 | |||||||
Prior periods | 1.7 | 1.8 | |||||||
Total net losses and LAE incurred during the period | 109.4 | 126.6 | |||||||
Paid losses and LAE, net of reinsurance, related to: | |||||||||
Current period | 4.2 | 4.5 | |||||||
Prior periods | 98.1 | 87.1 | |||||||
Total net paid losses and LAE during the period | 102.3 | 91.6 | |||||||
Ending unpaid losses and LAE, net of reinsurance | 1,707.30 | 1,622.40 | |||||||
Reinsurance recoverable, excluding bad debt allowance, on unpaid losses and LAE | 663 | 735.8 | |||||||
Unpaid losses and LAE, gross of reinsurance, at end of period | $ | 2,370.30 | $ | 2,358.20 | |||||
Total net losses and LAE included in the above table excludes the impact of the aggregate of the amortization of the deferred reinsurance gain—LPT Agreement, LPT Reserve Adjustments, and LPT Contingent Commission Adjustments, which totaled $3.1 million and $4.3 million for the three months ended March 31, 2015 and 2014, respectively (Note 6). | |||||||||
The increase in the estimates of incurred losses and LAE attributable to insured events for prior periods was related to the Company's assigned risk business. |
LPT_Agreement
LPT Agreement | 3 Months Ended |
Mar. 31, 2015 | |
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 $2.9 million and $3.3 million of the Deferred Gain for the three months ended March 31, 2015 and 2014, respectively. Additionally, the Deferred Gain was reduced by $0.7 million for the three months ended March 31, 2014 due to a favorable LPT Reserve Adjustment and by $0.2 million and $0.3 million for the three months ended March 31, 2015 and 2014, respectively, due to favorable LPT Contingent Commission Adjustments. The remaining Deferred Gain was $204.1 million and $207.0 million as of March 31, 2015 and December 31, 2014, respectively. The estimated remaining liabilities subject to the LPT Agreement were $527.9 million and $534.8 million as of March 31, 2015 and December 31, 2014, respectively. Losses and LAE paid with respect to the LPT Agreement totaled $675.2 million and $668.4 million from inception through March 31, 2015 and December 31, 2014, respectively. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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: | |||||||||
March 31, 2015 | December 31, 2014 | ||||||||
(in millions) | |||||||||
Net unrealized gain on investments, before taxes | $ | 177.4 | $ | 164.5 | |||||
Deferred tax expense on net unrealized gains | (62.1 | ) | (57.6 | ) | |||||
Total accumulated other comprehensive income, net | $ | 115.3 | $ | 106.9 | |||||
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | ||||||||||||||
Mar. 31, 2015 | |||||||||||||||
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 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-15 | |||||||||||||||
Stock options(1) | 80,800 | $ | 7.63 | $ | 24.2 | $ | 0.6 | ||||||||
RSUs(1) | 89,602 | 24.2 | — | 2.2 | |||||||||||
PSUs(2) | 110,000 | 24.2 | — | 2.7 | |||||||||||
-1 | The stock options and RSUs awarded in March 2015 were awarded to certain officers of the Company and vest 25% on March 15, 2016, and each of the subsequent three anniversaries of that date. The stock options and RSUs are subject to accelerated vesting in certain circumstances, including but not limited to: death, disability, retirement, or in connection with change of control of the Company. The stock options expire seven years from the date of grant. | ||||||||||||||
-2 | The PSUs awarded in March 2015 were awarded to certain officers of the Company and have a performance period of two years followed by an additional one year vesting period. The PSU awards are subject to certain performance goals with payouts that range from 0% to 200% of the target awards. The value shown in the table represents the aggregate number of PSUs awarded at the target level. | ||||||||||||||
A total of 131,056 and 120,494 stock options were exercised during the three months ended March 31, 2015 and the year ended December 31, 2014, respectively. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Earnings Per Share | Earnings Per Share | ||||||||
Basic earnings per share excludes 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 number of shares outstanding used in the earnings per common share calculations. | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
(in millions, except share data) | |||||||||
Net income available to stockholders—basic and diluted | $ | 14 | $ | 10.8 | |||||
Weighted average number of shares outstanding—basic | 31,740,923 | 31,409,322 | |||||||
Effect of dilutive securities: | |||||||||
PSUs | 322,850 | 214,121 | |||||||
Stock options | 310,899 | 277,376 | |||||||
RSUs | 79,392 | 89,151 | |||||||
Dilutive potential shares | 713,141 | 580,648 | |||||||
Weighted average number of shares outstanding—diluted | 32,454,064 | 31,989,970 | |||||||
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 | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Options and RSUs excluded under the treasury method as the potential proceeds on settlement or exercise price were greater than the value of shares acquired | 267,444 | 296,844 | |||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
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: | ||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||
Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | ||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Financial assets | |||||||||||||||||||||||||
Investments | $ | 2,541.70 | $ | 2,541.70 | $ | 2,448.40 | $ | 2,448.40 | |||||||||||||||||
Cash and cash equivalents | 45.6 | 45.6 | 103.6 | 103.6 | |||||||||||||||||||||
Restricted cash and cash equivalents | 8.4 | 8.4 | 10.8 | 10.8 | |||||||||||||||||||||
Financial liabilities | |||||||||||||||||||||||||
Notes payable | 92 | 97.8 | 92 | 97.8 | |||||||||||||||||||||
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 corresponding fair value measurements. | ||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||||
U.S. Treasuries | $ | — | $ | 160.4 | $ | — | $ | — | $ | 166.7 | $ | — | |||||||||||||
U.S. Agencies | — | 38.5 | — | — | 39.6 | — | |||||||||||||||||||
States and municipalities | — | 813.4 | — | — | 745.8 | — | |||||||||||||||||||
Corporate securities | — | 914.7 | — | — | 908.3 | — | |||||||||||||||||||
Residential mortgage-backed securities | — | 294.3 | — | — | 288.4 | — | |||||||||||||||||||
Commercial mortgage-backed securities | — | 71.2 | — | — | 65.4 | — | |||||||||||||||||||
Asset-backed securities | — | 67.6 | — | — | 61.5 | — | |||||||||||||||||||
Total fixed maturity securities | — | 2,360.10 | — | — | 2,275.70 | — | |||||||||||||||||||
Equity securities | 172.6 | — | — | 172.7 | — | — | |||||||||||||||||||
Short-term investments | $ | — | $ | 9 | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Investments_Tables
Investments (Tables) | 3 Months Ended | ||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||
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 millions) | |||||||||||||||||||||||
At March 31, 2015 | |||||||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||
U.S. Treasuries | $ | 153.6 | $ | 6.8 | $ | — | $ | 160.4 | |||||||||||||||
U.S. Agencies | 36.2 | 2.3 | — | 38.5 | |||||||||||||||||||
States and municipalities | 768.1 | 45.5 | (0.2 | ) | 813.4 | ||||||||||||||||||
Corporate securities | 878.1 | 37.7 | (1.1 | ) | 914.7 | ||||||||||||||||||
Residential mortgage-backed securities | 282.5 | 12 | (0.2 | ) | 294.3 | ||||||||||||||||||
Commercial mortgage-backed securities | 70.3 | 1 | (0.1 | ) | 71.2 | ||||||||||||||||||
Asset-backed securities | 67.6 | 0.1 | (0.1 | ) | 67.6 | ||||||||||||||||||
Total fixed maturity securities | 2,256.40 | 105.4 | (1.7 | ) | 2,360.10 | ||||||||||||||||||
Equity securities | 98.9 | 75 | (1.3 | ) | 172.6 | ||||||||||||||||||
Short-term investments | 9 | — | — | 9 | |||||||||||||||||||
Total investments | $ | 2,364.30 | $ | 180.4 | $ | (3.0 | ) | $ | 2,541.70 | ||||||||||||||
At December 31, 2014 | |||||||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||
U.S. Treasuries | $ | 160.9 | $ | 5.8 | $ | — | $ | 166.7 | |||||||||||||||
U.S. Agencies | 37.2 | 2.4 | — | 39.6 | |||||||||||||||||||
States and municipalities | 701.6 | 44.4 | (0.2 | ) | 745.8 | ||||||||||||||||||
Corporate securities | 880.7 | 30.8 | (3.2 | ) | 908.3 | ||||||||||||||||||
Residential mortgage-backed securities | 278.6 | 10.6 | (0.8 | ) | 288.4 | ||||||||||||||||||
Commercial mortgage-backed securities | 65.5 | 0.5 | (0.6 | ) | 65.4 | ||||||||||||||||||
Asset-backed securities | 61.6 | — | (0.1 | ) | 61.5 | ||||||||||||||||||
Total fixed maturity securities | 2,186.10 | 94.5 | (4.9 | ) | 2,275.70 | ||||||||||||||||||
Equity securities | 97.8 | 75.5 | (0.6 | ) | 172.7 | ||||||||||||||||||
Total investments | $ | 2,283.90 | $ | 170 | $ | (5.5 | ) | $ | 2,448.40 | ||||||||||||||
Investments classified by contractual maturity date table | The amortized cost and estimated fair value of fixed maturity securities at March 31, 2015, 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 millions) | |||||||||||||||||||||||
Due in one year or less | $ | 165.2 | $ | 167.2 | |||||||||||||||||||
Due after one year through five years | 798.6 | 836 | |||||||||||||||||||||
Due after five years through ten years | 619.5 | 653.3 | |||||||||||||||||||||
Due after ten years | 252.6 | 270.4 | |||||||||||||||||||||
Mortgage and asset-backed securities | 420.5 | 433.2 | |||||||||||||||||||||
Total | $ | 2,256.40 | $ | 2,360.10 | |||||||||||||||||||
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 March 31, 2015 and December 31, 2014. | ||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||
Estimated Fair Value | Gross Unrealized Losses | Number of Issues | Estimated Fair Value | Gross Unrealized Losses | Number of Issues | ||||||||||||||||||
(in millions, except number of issues data) | |||||||||||||||||||||||
Less than 12 months: | |||||||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||
States and municipalities | $ | 36.9 | $ | (0.2 | ) | 8 | $ | 20.6 | $ | (0.2 | ) | 5 | |||||||||||
Corporate securities | 59.8 | (0.5 | ) | 27 | 109.9 | (0.8 | ) | 42 | |||||||||||||||
Residential mortgage-backed securities | 25.8 | (0.1 | ) | 10 | — | — | — | ||||||||||||||||
Commercial mortgage-backed securities | 10.3 | (0.1 | ) | 4 | — | — | — | ||||||||||||||||
Total fixed maturity securities | 132.8 | (0.9 | ) | 49 | 130.5 | (1.0 | ) | 47 | |||||||||||||||
Equity securities | 20.2 | (1.2 | ) | 30 | 10.1 | (0.6 | ) | 15 | |||||||||||||||
Total less than 12 months | $ | 153 | $ | (2.1 | ) | 79 | $ | 140.6 | $ | (1.6 | ) | 62 | |||||||||||
12 months or greater: | |||||||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||
Corporate securities | $ | 46 | $ | (0.6 | ) | 15 | $ | 129.4 | $ | (2.4 | ) | 39 | |||||||||||
Residential mortgage-backed securities | 9.8 | (0.1 | ) | 27 | 44.1 | (0.8 | ) | 36 | |||||||||||||||
Commercial mortgage-backed securities | — | — | — | 31.3 | (0.6 | ) | 8 | ||||||||||||||||
Asset-backed securities | 19.9 | (0.1 | ) | 6 | 18.3 | (0.1 | ) | 6 | |||||||||||||||
Total fixed maturity securities | 75.7 | (0.8 | ) | 48 | 223.1 | (3.9 | ) | 89 | |||||||||||||||
Equity securities | 0.6 | (0.1 | ) | 2 | — | — | — | ||||||||||||||||
Total 12 months or greater | $ | 76.3 | $ | (0.9 | ) | 50 | $ | 223.1 | $ | (3.9 | ) | 89 | |||||||||||
Total available-for-sale: | |||||||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||
States and municipalities | $ | 36.9 | $ | (0.2 | ) | 8 | $ | 20.6 | $ | (0.2 | ) | 5 | |||||||||||
Corporate securities | 105.8 | (1.1 | ) | 42 | 239.3 | (3.2 | ) | 81 | |||||||||||||||
Residential mortgage-backed securities | 35.6 | (0.2 | ) | 37 | 44.1 | (0.8 | ) | 36 | |||||||||||||||
Commercial mortgage-backed securities | 10.3 | (0.1 | ) | 4 | 31.3 | (0.6 | ) | 8 | |||||||||||||||
Asset-backed securities | 19.9 | (0.1 | ) | 6 | 18.3 | (0.1 | ) | 6 | |||||||||||||||
Total fixed maturity securities | 208.5 | (1.7 | ) | 97 | 353.6 | (4.9 | ) | 136 | |||||||||||||||
Equity securities | 20.8 | (1.3 | ) | 32 | 10.1 | (0.6 | ) | 15 | |||||||||||||||
Total available-for-sale | $ | 229.3 | $ | (3.0 | ) | 129 | $ | 363.7 | $ | (5.5 | ) | 151 | |||||||||||
Net realized gains and change in unrealized gains (losses), available for sale securities table | ealized gains on investments 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 | |||||||||||||||||||||||
March 31, | |||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Net realized gains on investments | |||||||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||
Gross gains | $ | — | $ | 0.8 | |||||||||||||||||||
Gross losses | — | — | |||||||||||||||||||||
Net realized gains on fixed maturity securities | $ | — | $ | 0.8 | |||||||||||||||||||
Equity securities | |||||||||||||||||||||||
Gross gains | $ | 1.5 | $ | 2.5 | |||||||||||||||||||
Gross losses | (0.3 | ) | — | ||||||||||||||||||||
Net realized gains on equity securities | $ | 1.2 | $ | 2.5 | |||||||||||||||||||
Total | $ | 1.2 | $ | 3.3 | |||||||||||||||||||
Change in unrealized gains (losses) | |||||||||||||||||||||||
Fixed maturity securities | $ | 14.1 | $ | 13.3 | |||||||||||||||||||
Equity securities | (1.2 | ) | (0.8 | ) | |||||||||||||||||||
Total | $ | 12.9 | $ | 12.5 | |||||||||||||||||||
Investment income table | Net investment income was as follows: | ||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||
March 31, | |||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Fixed maturity securities | $ | 16.4 | $ | 17.6 | |||||||||||||||||||
Equity securities | 1.1 | 1 | |||||||||||||||||||||
Cash equivalents and restricted cash | — | — | |||||||||||||||||||||
17.5 | 18.6 | ||||||||||||||||||||||
Investment expenses | (0.6 | ) | (0.6 | ) | |||||||||||||||||||
Net investment income | $ | 16.9 | $ | 18 | |||||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
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. | ||||||
Three Months Ended | |||||||
March 31, | |||||||
2015 | 2014 | ||||||
Expense computed at statutory rate | 35 | % | 35 | % | |||
Dividends received deduction and tax-exempt interest | (8.8 | ) | (16.0 | ) | |||
LPT deferred gain amortization | (4.2 | ) | (8.5 | ) | |||
LPT reserve adjustment | — | (0.4 | ) | ||||
Other | 0.5 | 0.8 | |||||
Effective tax rate | 22.5 | % | 10.9 | % |
Liability_for_Unpaid_Losses_an1
Liability for Unpaid Losses and Loss Adjustment Expenses (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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. | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
(in millions) | |||||||||
Unpaid losses and LAE, gross of reinsurance, at beginning of period | $ | 2,369.70 | $ | 2,330.50 | |||||
Less reinsurance recoverable, excluding bad debt allowance, on unpaid losses and LAE | 669.5 | 743.1 | |||||||
Net unpaid losses and LAE at beginning of period | 1,700.20 | 1,587.40 | |||||||
Losses and LAE, net of reinsurance, related to: | |||||||||
Current period | 107.7 | 124.8 | |||||||
Prior periods | 1.7 | 1.8 | |||||||
Total net losses and LAE incurred during the period | 109.4 | 126.6 | |||||||
Paid losses and LAE, net of reinsurance, related to: | |||||||||
Current period | 4.2 | 4.5 | |||||||
Prior periods | 98.1 | 87.1 | |||||||
Total net paid losses and LAE during the period | 102.3 | 91.6 | |||||||
Ending unpaid losses and LAE, net of reinsurance | 1,707.30 | 1,622.40 | |||||||
Reinsurance recoverable, excluding bad debt allowance, on unpaid losses and LAE | 663 | 735.8 | |||||||
Unpaid losses and LAE, gross of reinsurance, at end of period | $ | 2,370.30 | $ | 2,358.20 | |||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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: | ||||||||
March 31, 2015 | December 31, 2014 | ||||||||
(in millions) | |||||||||
Net unrealized gain on investments, before taxes | $ | 177.4 | $ | 164.5 | |||||
Deferred tax expense on net unrealized gains | (62.1 | ) | (57.6 | ) | |||||
Total accumulated other comprehensive income, net | $ | 115.3 | $ | 106.9 | |||||
StockBased_Compensation_StockB
Stock-Based Compensation Stock-Based Compensation (Tables) | 3 Months Ended | ||||||||||||||
Mar. 31, 2015 | |||||||||||||||
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 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-15 | |||||||||||||||
Stock options(1) | 80,800 | $ | 7.63 | $ | 24.2 | $ | 0.6 | ||||||||
RSUs(1) | 89,602 | 24.2 | — | 2.2 | |||||||||||
PSUs(2) | 110,000 | 24.2 | — | 2.7 | |||||||||||
-1 | The stock options and RSUs awarded in March 2015 were awarded to certain officers of the Company and vest 25% on March 15, 2016, and each of the subsequent three anniversaries of that date. The stock options and RSUs are subject to accelerated vesting in certain circumstances, including but not limited to: death, disability, retirement, or in connection with change of control of the Company. The stock options expire seven years from the date of grant. | ||||||||||||||
-2 | The PSUs awarded in March 2015 were awarded to certain officers of the Company and have a performance period of two years followed by an additional one year vesting period. The PSU awards are subject to certain performance goals with payouts that range from 0% to 200% of the target awards. The value shown in the table represents the aggregate number of PSUs awarded at the target level. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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 number of shares outstanding used in the earnings per common share calculations. | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
(in millions, except share data) | |||||||||
Net income available to stockholders—basic and diluted | $ | 14 | $ | 10.8 | |||||
Weighted average number of shares outstanding—basic | 31,740,923 | 31,409,322 | |||||||
Effect of dilutive securities: | |||||||||
PSUs | 322,850 | 214,121 | |||||||
Stock options | 310,899 | 277,376 | |||||||
RSUs | 79,392 | 89,151 | |||||||
Dilutive potential shares | 713,141 | 580,648 | |||||||
Weighted average number of shares outstanding—diluted | 32,454,064 | 31,989,970 | |||||||
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 | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Options and RSUs excluded under the treasury method as the potential proceeds on settlement or exercise price were greater than the value of shares acquired | 267,444 | 296,844 | |||||||
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Investments | $2,541,700 | $2,448,400 | ||
Investments, fair value | 2,541,700 | 2,448,400 | ||
Cash and cash equivalents | 45,600 | 103,600 | 51,100 | 34,500 |
Cash and cash equivalents, estimated fair value | 45,600 | 103,600 | ||
Restricted cash and cash equivalents | 8,400 | 10,800 | ||
Notes payable | 92,000 | 92,000 | ||
Notes Payable, fair value | 97,800 | 97,800 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Investments | 31,300 | 31,200 | ||
Restricted cash and cash equivalents | $8,400 | $10,800 |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments, Fair Value Inputs (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | $2,541,700 | $2,448,400 |
Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 2,360,100 | 2,275,700 |
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 | 2,360,100 | 2,275,700 |
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 | 160,400 | 166,700 |
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 | 166,700 | |
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 | 38,500 | 39,600 |
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 | 39,600 | |
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 | 813,400 | 745,800 |
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 | 745,800 | |
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 | 914,700 | 908,300 |
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 | 908,300 | |
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 | 294,300 | 288,400 |
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 | 288,400 | |
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 | 71,200 | 65,400 |
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 | 65,400 | |
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 | 67,600 | 61,500 |
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 | 61,500 | |
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 | 172,600 | 172,700 |
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 | 172,705 | |
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 |
Short-term Investments [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 |
Short-term Investments [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 | 9,000 | 0 |
Short-term Investments [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 $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | $2,364,300 | $2,283,900 |
Gross unrealized gain | 180,400 | 170,000 |
Gross unrealized loss | -3,000 | -5,500 |
Investments | 2,541,700 | 2,448,400 |
Deposit Assets | ||
Investments | 2,541,700 | 2,448,400 |
Assets Held-in-trust | ||
Investments | 2,541,700 | 2,448,400 |
Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 2,256,400 | 2,186,100 |
Gross unrealized gain | 105,400 | 94,500 |
Gross unrealized loss | -1,700 | -4,900 |
Investments | 2,360,100 | 2,275,700 |
Deposit Assets | ||
Investments | 2,360,100 | 2,275,700 |
Assets Held-in-trust | ||
Investments | 2,360,100 | 2,275,700 |
US Treasury Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 153,600 | 160,900 |
Gross unrealized gain | 6,800 | 5,800 |
Gross unrealized loss | 0 | 0 |
Investments | 160,400 | 166,700 |
Deposit Assets | ||
Investments | 160,400 | 166,700 |
Assets Held-in-trust | ||
Investments | 160,400 | 166,700 |
US Government Agencies Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 36,200 | 37,200 |
Gross unrealized gain | 2,300 | 2,400 |
Gross unrealized loss | 0 | 0 |
Investments | 38,500 | 39,600 |
Deposit Assets | ||
Investments | 38,500 | 39,600 |
Assets Held-in-trust | ||
Investments | 38,500 | 39,600 |
US States and Political Subdivisions Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 768,100 | 701,600 |
Gross unrealized gain | 45,500 | 44,400 |
Gross unrealized loss | -200 | -200 |
Investments | 813,400 | 745,800 |
Deposit Assets | ||
Investments | 813,400 | 745,800 |
Assets Held-in-trust | ||
Investments | 813,400 | 745,800 |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 878,100 | 880,700 |
Gross unrealized gain | 37,700 | 30,800 |
Gross unrealized loss | -1,100 | -3,200 |
Investments | 914,700 | 908,300 |
Deposit Assets | ||
Investments | 914,700 | 908,300 |
Assets Held-in-trust | ||
Investments | 914,700 | 908,300 |
Residential Mortgage Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 282,500 | 278,600 |
Gross unrealized gain | 12,000 | 10,600 |
Gross unrealized loss | -200 | -800 |
Investments | 294,300 | 288,400 |
Deposit Assets | ||
Investments | 294,300 | 288,400 |
Assets Held-in-trust | ||
Investments | 294,300 | 288,400 |
Commercial Mortgage Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 70,300 | 65,500 |
Gross unrealized gain | 1,000 | 500 |
Gross unrealized loss | -100 | -600 |
Investments | 71,200 | 65,400 |
Deposit Assets | ||
Investments | 71,200 | 65,400 |
Assets Held-in-trust | ||
Investments | 71,200 | 65,400 |
Asset-backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 67,600 | 61,600 |
Gross unrealized gain | 100 | 0 |
Gross unrealized loss | -100 | -100 |
Investments | 67,600 | 61,500 |
Deposit Assets | ||
Investments | 67,600 | 61,500 |
Assets Held-in-trust | ||
Investments | 67,600 | 61,500 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 98,900 | 97,800 |
Gross unrealized gain | 75,000 | 75,500 |
Gross unrealized loss | -1,300 | -600 |
Investments | 172,600 | 172,700 |
Deposit Assets | ||
Investments | 172,600 | 172,700 |
Assets Held-in-trust | ||
Investments | 172,600 | 172,700 |
Short-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 9,000 | |
Gross unrealized gain | 0 | |
Gross unrealized loss | 0 | |
Fair Value Measurement [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments | 31,300 | 31,200 |
Deposit Assets | ||
Investments | 31,300 | 31,200 |
Assets Held-in-trust | ||
Investments | 31,300 | 31,200 |
Fair Value Measurement [Member] | Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments | 917,300 | 783,900 |
Deposit Assets | ||
Investments | 917,300 | 783,900 |
Assets Held-in-trust | ||
Investments | 917,300 | 783,900 |
Fair Value Measurement [Member] | Fixed Maturities and Restricted Cash Equivalents [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments | 74,000 | 74,600 |
Deposit Assets | ||
Investments | 74,000 | 74,600 |
Assets Held-in-trust | ||
Investments | $74,000 | $74,600 |
Investments_Amortized_Cost_and
Investments, Amortized Cost and Estimated Fair Value (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Amortized Cost | ||
Due in one year or less, amortized cost | $165,200 | |
Due after one year through five years, amortized cost | 798,600 | |
Due after five years through ten years, amortized cost | 619,500 | |
Due after ten years, amortized cost | 252,600 | |
Mortgage and asset-backed securities, amortized cost | 420,500 | |
Total, amortized cost | 2,256,400 | |
Estimated Fair Value | ||
Due in one year or less, fair value | 167,200 | |
Due after one year through five years, fair value | 836,000 | |
Due after five years through ten years, fair value | 653,300 | |
Due after ten years, fair value | 270,400 | |
Mortgage and asset-backed securities, fair value | 433,200 | |
Total, fair value | $2,360,100 | $2,275,700 |
Investments_Continuous_Loss_Po
Investments, Continuous Loss Position (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Estimated Fair Value | ||
Estimated fair value, less than 12 months | $153,000,000 | $140,600,000 |
Estimated fair value, 12 months or greater | 76,300,000 | 223,100,000 |
Estimated fair value, total | 229,300,000 | 363,700,000 |
Gross Unrealized Losses | ||
Gross unrealized losses, less than 12 months | -2,100,000 | -1,600,000 |
Gross unrealized losses, 12 months or greater | 900,000 | 3,900,000 |
Estimated unrealized losses, total | -3,000,000 | -5,500,000 |
Number of issues in loss position, less than 12 months | 79 | 62 |
Number of Issues in loss position, 12 months or greater | 50 | 89 |
Number of issues loss position, aggregate | 129 | 151 |
Debt Securities [Member] | ||
Estimated Fair Value | ||
Estimated fair value, less than 12 months | 132,800,000 | 130,500,000 |
Estimated fair value, 12 months or greater | 75,700,000 | 223,100,000 |
Estimated fair value, total | 208,500,000 | 353,600,000 |
Gross Unrealized Losses | ||
Gross unrealized losses, less than 12 months | -900,000 | -1,000,000 |
Gross unrealized losses, 12 months or greater | 800,000 | 3,900,000 |
Estimated unrealized losses, total | -1,700,000 | -4,900,000 |
Number of issues in loss position, less than 12 months | 49 | 47 |
Number of Issues in loss position, 12 months or greater | 48 | 89 |
Number of issues loss position, aggregate | 97 | 136 |
US States and Political Subdivisions Debt Securities [Member] | ||
Estimated Fair Value | ||
Estimated fair value, less than 12 months | 36,900,000 | 20,600,000 |
Estimated fair value, total | 36,900,000 | 20,600,000 |
Gross Unrealized Losses | ||
Gross unrealized losses, less than 12 months | -200,000 | -200,000 |
Estimated unrealized losses, total | -200,000 | -200,000 |
Number of issues in loss position, less than 12 months | 8 | 5 |
Number of issues loss position, aggregate | 8 | 5 |
Corporate Debt Securities [Member] | ||
Estimated Fair Value | ||
Estimated fair value, less than 12 months | 59,800,000 | 109,900,000 |
Estimated fair value, 12 months or greater | 46,000,000 | 129,400,000 |
Estimated fair value, total | 105,800,000 | 239,300,000 |
Gross Unrealized Losses | ||
Gross unrealized losses, less than 12 months | -500,000 | -800,000 |
Gross unrealized losses, 12 months or greater | 600,000 | 2,400,000 |
Estimated unrealized losses, total | -1,100,000 | -3,200,000 |
Number of issues in loss position, less than 12 months | 27 | 42 |
Number of Issues in loss position, 12 months or greater | 15 | 39 |
Number of issues loss position, aggregate | 42 | 81 |
Residential Mortgage Backed Securities [Member] | ||
Estimated Fair Value | ||
Estimated fair value, less than 12 months | 25,800,000 | 0 |
Estimated fair value, 12 months or greater | 9,800,000 | 44,100,000 |
Estimated fair value, total | 35,600,000 | 44,100,000 |
Gross Unrealized Losses | ||
Gross unrealized losses, less than 12 months | -100,000 | 0 |
Gross unrealized losses, 12 months or greater | 100,000 | 800,000 |
Estimated unrealized losses, total | -200,000 | -800,000 |
Number of issues in loss position, less than 12 months | 10 | 0 |
Number of Issues in loss position, 12 months or greater | 27 | 36 |
Number of issues loss position, aggregate | 37 | 36 |
Commercial Mortgage Backed Securities [Member] | ||
Estimated Fair Value | ||
Estimated fair value, less than 12 months | 10,300,000 | 0 |
Estimated fair value, 12 months or greater | 0 | 31,300,000 |
Estimated fair value, total | 10,300,000 | 31,300,000 |
Gross Unrealized Losses | ||
Gross unrealized losses, less than 12 months | -100,000 | 0 |
Gross unrealized losses, 12 months or greater | 0 | 600,000 |
Estimated unrealized losses, total | -100,000 | -600,000 |
Number of issues in loss position, less than 12 months | 4 | 0 |
Number of Issues in loss position, 12 months or greater | 0 | 8 |
Number of issues loss position, aggregate | 4 | 8 |
Asset-backed Securities [Member] | ||
Estimated Fair Value | ||
Estimated fair value, 12 months or greater | 19,900,000 | 18,300,000 |
Estimated fair value, total | 19,900,000 | 18,300,000 |
Gross Unrealized Losses | ||
Gross unrealized losses, 12 months or greater | 100,000 | 100,000 |
Estimated unrealized losses, total | -100,000 | -100,000 |
Number of Issues in loss position, 12 months or greater | 6 | 6 |
Number of issues loss position, aggregate | 0 | 0 |
Equity Securities [Member] | ||
Estimated Fair Value | ||
Estimated fair value, less than 12 months | 20,200,000 | 10,100,000 |
Estimated fair value, 12 months or greater | 600,000 | 0 |
Estimated fair value, total | 20,800,000 | 10,100,000 |
Gross Unrealized Losses | ||
Gross unrealized losses, less than 12 months | -1,200,000 | -600,000 |
Gross unrealized losses, 12 months or greater | 100,000 | 0 |
Estimated unrealized losses, total | -1,300,000 | -600,000 |
Number of issues in loss position, less than 12 months | 30 | 15 |
Number of Issues in loss position, 12 months or greater | 2 | 0 |
Number of issues loss position, aggregate | $32 | $15 |
Investments_Net_Realized_Gains
Investments, Net Realized Gains (Losses) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net realized gains (losses) | ||
Net realized gains (losses) on fixed maturity and equity securities | $1,200 | $3,300 |
Change in unrealized gains (losses) | ||
Change in unrealized gains (losses) on fixed maturity and equity securities | 12,900 | 12,500 |
Debt Securities [Member] | ||
Net realized gains (losses) | ||
Gross gains from sales | 0 | 800 |
Gross losses from sales | 0 | 0 |
Net realized gains (losses) on fixed maturity and equity securities | 0 | 800 |
Change in unrealized gains (losses) | ||
Change in unrealized gains (losses) on fixed maturity and equity securities | 14,100 | 13,300 |
Equity Securities [Member] | ||
Net realized gains (losses) | ||
Gross gains from sales | 1,500 | 2,500 |
Gross losses from sales | 300 | 0 |
Net realized gains (losses) on fixed maturity and equity securities | 1,200 | 2,500 |
Change in unrealized gains (losses) | ||
Change in unrealized gains (losses) on fixed maturity and equity securities | ($1,200) | ($800) |
Net_Investment_Income_Details
Net Investment Income (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Investment income | $17,500 | $18,600 |
Investment expenses | 600 | 600 |
Net investment income | 16,900 | 18,000 |
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 | 16,400 | 17,600 |
Equity Securities [Member] | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Investment income related to equity securities | 1,100 | 1,000 |
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 | $0 | $0 |
Income_Taxes_Details
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
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 | -8.80% | -16.00% |
LPT deferred gain amortization | -4.20% | -8.50% |
LPT reserve adjustment | 0.00% | -0.40% |
Other | 0.50% | 0.80% |
Effective tax rate | 22.50% | 10.90% |
Liability_for_Unpaid_Losses_an2
Liability for Unpaid Losses and Loss Adjustment Expenses (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||
Unpaid losses and LAE, gross of reinsurance, at beginning of period | $2,369,700,000 | $2,330,500,000 | |
Less reinsurance recoverable, excluding bad debt allowance, on unpaid losses and LAE | 669,500,000 | 743,100,000 | |
Net unpaid losses and LAE at beginning of period | 1,700,200,000 | 1,587,400,000 | |
Losses and LAE, net of reinsurance, related to: | |||
Current period | 107,700,000 | 124,800,000 | |
Prior periods | 1,700,000 | 1,800,000 | |
Total net losses and LAE incurred during the period | 109,400,000 | 126,600,000 | |
Deduct payments for losses and LAE, net of reinsurance, related to: | |||
Current period | 4,200,000 | 4,500,000 | |
Prior periods | 98,100,000 | 87,100,000 | |
Total net paid losses and LAE during the period | 102,300,000 | 91,600,000 | |
Ending unpaid losses and LAE, net of reinsurance | 1,707,300,000 | 1,622,400,000 | |
Reinsurance recoverable, excluding bad debt allowance, on unpaid losses and LAE | 663,000,000 | 735,800,000 | |
Unpaid losses and LAE, gross of reinsurance, at end of period | 2,370,300,000 | 2,358,200,000 | |
LPT Agreement [Abstract] | |||
Impact of the LPT Agreement | $3,100,000 | $4,300,000 |
LPT_Agreement_LPT_Agreement_De
LPT Agreement LPT Agreement (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
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 | ||
Amortization of deferred gain | 2,900,000 | 3,300,000 | |
Deferred reinsurance gain—LPT Agreement | 204,100,000 | 207,000,000 | |
Estimated remaining liabilities - LPT Agreement | 527,900,000 | 534,800,000 | |
Paid losses and LAE claims related to LPT | 675,200,000 | 668,400,000 | |
Change Due to Estimated Reserves Ceded Under the LPT Agreement [Member] | |||
Reinsurance Agreement [Line Items] | |||
Amortization of deferred gain | 700,000 | ||
Change to Contingent Profit Commission [Member] | |||
Reinsurance Agreement [Line Items] | |||
Amortization of deferred gain | 200,000 | 300,000 | |
Indemnification Agreement [Member] | |||
Reinsurance Agreement [Line Items] | |||
Coverage provided under LPT Agreement | $2,000,000,000 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Net unrealized gain on investments, before taxes | $177,400 | $164,500 |
Deferred tax expense on net unrealized gains | -62,100 | -57,600 |
Total accumulated other comprehensive income, net | $115,300 | $106,900 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-options exercised | 131,056 | 120,494 | |
Officer [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting rights for options awarded | vest 25% on March 15, 2016, and each of the subsequent three anniversaries of that date | ||
Expiration Period for Options Awarded | seven years | ||
Performance share awards performance period | two years | ||
Performance share awards, minimum payout | 0.00% | ||
Performane share awards, maximum payout | 200.00% | ||
Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation award, shares issued | 80,800 | [1] | |
Share-based compensation options, exercise price on grant date | 7.63 | [1] | |
Share-based compensation award, fair value assumptions, exercise price | 24.2 | [1] | |
Fair value of awards awarded on grant date | 0.6 | [1] | |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation award, shares issued | 89,602 | [1] | |
Share-based compensation options, exercise price on grant date | 24.2 | [2] | |
Share-based compensation award, fair value assumptions, exercise price | 0 | ||
Fair value of awards awarded on grant date | 2.2 | [1] | |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation award, shares issued | 110,000 | [2] | |
Share-based compensation options, exercise price on grant date | 24.2 | [2] | |
Share-based compensation award, fair value assumptions, exercise price | 0 | ||
Fair value of awards awarded on grant date | 2.7 | [2] | |
[1] | The stock options and RSUs awarded in March 2015 were awarded to certain officers of the Company and vest 25% on March 15, 2016, and each of the subsequent three anniversaries of that date. The stock options and RSUs are subject to accelerated vesting in certain circumstances, including but not limited to: death, disability, retirement, or in connection with change of control of the Company. The stock options expire seven years from the date of grant.(2) | ||
[2] | The PSUs awarded in March 2015 were awarded to certain officers of the Company and have a performance period of two years followed by an additional one year vesting period. The PSU awards are subject to certain performance goals with payouts that range from 0% to 200% of the target awards. The value shown in the table represents the aggregate number of PSUs awarded at the target level. |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||
Net income available to stockholders - basic and diluted | $14,000 | $10,800 |
Weighted average number of shares outstanding - basic | 31,740,923 | 31,409,322 |
Effect of dilutive securities: | ||
Dilutive securities | 713,141 | 580,648 |
Weighted average number of shares outstanding - diluted | 32,454,064 | 31,989,970 |
Antidilutive securites excluded under the treasury method from computation of earnings per share | 267,444 | 296,844 |
Employee Stock Option [Member] | ||
Effect of dilutive securities: | ||
Dilutive securities | 310,899 | 277,376 |
Restricted Stock Units (RSUs) [Member] | ||
Effect of dilutive securities: | ||
Dilutive securities | 79,392 | 89,151 |
Performance Shares [Member] | ||
Effect of dilutive securities: | ||
Dilutive securities | 322,850 | 214,121 |