Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 20, 2016 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Entity Registrant Name | Employers Holdings, Inc. | |
Entity Central Index Key | 1,379,041 | |
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 | 32,087,739 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Available for sale: | ||
Fixed maturity securities at fair value (amortized cost $2,273,100 at September 30, 2016 and $2,221,100 at December 31, 2015) | $ 2,383,900 | $ 2,288,500 |
Equity securities at fair value (cost $114,400 at September 30, 2016 and $137,500 at December 31, 2015) | 184,500 | 198,700 |
Short-term investments at fair value (amortized cost $14,000 at September 30, 2016) | 14,000 | 0 |
Total investments | 2,582,400 | 2,487,200 |
Cash and cash equivalents | 84,100 | 56,600 |
Restricted cash and cash equivalents | 2,700 | 2,500 |
Accrued investment income | 20,300 | 20,600 |
Premiums receivable (less bad debt allowance of $10,700 at September 30, 2016 and $12,200 at December 31, 2015) | 317,100 | 301,100 |
Reinsurance recoverable for: | ||
Paid losses | 8,300 | 7,700 |
Unpaid losses | 591,500 | 628,200 |
Deferred policy acquisition costs | 46,800 | 44,300 |
Deferred income taxes, net | 41,100 | 67,900 |
Property and equipment, net | 22,600 | 24,900 |
Intangible assets, net | 8,300 | 8,500 |
Goodwill | 36,200 | 36,200 |
Contingent commission receivable—LPT Agreement | 31,100 | 29,200 |
Other assets | 31,800 | 40,900 |
Total assets | 3,824,300 | 3,755,800 |
Claims and policy liabilities: | ||
Unpaid losses and loss adjustment expenses | 2,330,000 | 2,347,500 |
Unearned premiums | 325,600 | 308,900 |
Total claims and policy liabilities | 2,655,600 | 2,656,400 |
Commissions and premium taxes payable | 50,500 | 52,500 |
Accounts payable and accrued expenses | 17,500 | 24,100 |
Deferred reinsurance gain—LPT Agreement | 177,800 | 189,500 |
Notes payable | 32,000 | 32,000 |
Other liabilities | 40,800 | 40,500 |
Total liabilities | 2,974,200 | 2,995,000 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $0.01 par value; 150,000,000 shares authorized; 56,124,974 and 55,589,454 shares issued and 32,109,976 and 32,216,480 shares outstanding at September 30, 2016 and December 31, 2015, respectively | 600 | 600 |
Preferred stock, $0.01 par value; 25,000,000 shares authorized; none issued | 0 | 0 |
Additional paid-in capital | 368,600 | 357,200 |
Retained earnings | 744,500 | 682,000 |
Accumulated other comprehensive income, net | 117,600 | 83,600 |
Treasury stock, at cost (24,014,998 shares at September 30, 2016 and 23,372,974 shares at December 31, 2015) | (381,200) | (362,600) |
Total stockholders’ equity | 850,100 | 760,800 |
Total liabilities and stockholders’ equity | $ 3,824,300 | $ 3,755,800 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Available for sale: | ||
Fixed maturity securities, amortized cost | $ 2,401,500 | $ 2,358,600 |
Available for sale, short-term investments, at amortized cost | 14,000 | 0 |
Premiums receivable, bad debt allowance | 10,700 | 12,200 |
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) | 56,124,974 | 55,589,454 |
Common stock, shares outstanding (in shares) | 32,109,976 | 32,216,480 |
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) | 24,014,998 | 23,372,974 |
Debt Securities [Member] | ||
Available for sale: | ||
Fixed maturity securities, amortized cost | $ 2,273,100 | $ 2,221,100 |
Equity Securities [Member] | ||
Available for sale: | ||
Fixed maturity securities, amortized cost | 114,400 | $ 137,500 |
Short-term Investments [Member] | ||
Available for sale: | ||
Fixed maturity securities, amortized cost | $ 14,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues | ||||
Net premiums earned | $ 173,300,000 | $ 179,000,000 | $ 522,800,000 | $ 508,600,000 |
Net investment income | 17,900,000 | 18,500,000 | 54,100,000 | 53,800,000 |
Net realized gains on investments | 1,600,000 | 2,000,000 | 9,100,000 | 5,100,000 |
Other income | 0 | 0 | 600,000 | 100,000 |
Total revenues | 192,800,000 | 199,500,000 | 586,600,000 | 567,600,000 |
Expenses | ||||
Losses and loss adjustment expenses | 109,000,000 | 115,800,000 | 328,000,000 | 323,500,000 |
Commission expense | 21,300,000 | 21,000,000 | 63,500,000 | 62,600,000 |
Underwriting and other operating expenses | 31,700,000 | 31,600,000 | 101,600,000 | 97,600,000 |
Interest expense | 400,000 | 700,000 | 1,200,000 | 2,100,000 |
Total expenses | 162,400,000 | 169,100,000 | 494,300,000 | 485,800,000 |
Net income before income taxes | 30,400,000 | 30,400,000 | 92,300,000 | 81,800,000 |
Income tax expense | 7,800,000 | 5,900,000 | 21,100,000 | 14,100,000 |
Net income | 22,600,000 | 24,500,000 | 71,200,000 | 67,700,000 |
Comprehensive income | ||||
Unrealized (losses) gains during the period (net of tax (benefit) expense of $(2,300) and $(5,900) for the three months ended September 30, 2016 and 2015, respectively, and $21,500 and $(14,200) for the nine months ended September 30, 2016 and 2015, respectively) | (4,200,000) | (11,100,000) | 39,900,000 | (26,500,000) |
Reclassification adjustment for realized gains in net income (net of taxes of $600 and $700 for the three months ended September 30, 2016 and 2015, respectively, and $3,200 and $1,800 for the nine months ended September 30, 2016 and 2015, respectively) | (1,000,000) | (1,300,000) | (5,900,000) | (3,300,000) |
Other comprehensive (loss) income, net of tax | (5,200,000) | (12,400,000) | 34,000,000 | (29,800,000) |
Total comprehensive income | 17,400,000 | 12,100,000 | 105,200,000 | 37,900,000 |
Net realized gains on investments | ||||
Net realized gains on investments before credit related impairments | 1,600,000 | 2,100,000 | 14,400,000 | 5,300,000 |
Other than temporary impairment recognized in earnings | 0 | (100,000) | (5,300,000) | (200,000) |
Net realized gains on investments | $ 1,600,000 | $ 2,000,000 | $ 9,100,000 | $ 5,100,000 |
Earnings per common share (Note 11): | ||||
Basic | $ 0.70 | $ 0.76 | $ 2.19 | $ 2.12 |
Diluted | 0.69 | 0.75 | 2.16 | 2.08 |
Cash dividends declared per common share | $ 0.09 | $ 0.06 | $ 0.27 | $ 0.18 |
Conolidated Statements of Compr
Conolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Statement Parenthetical [Abstract] | ||||
Other comprehensive income (loss), unrealized holding gain (loss) on securities arising during period, tax | $ (2,300) | $ (5,900) | $ 21,500 | $ (14,200) |
Other comprehensive income (loss), reclassification adjustment for sale of securities included in net income, tax | $ 600 | $ 700 | $ 3,200 | $ 1,800 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Operating activities | ||
Net income | $ 71,200 | $ 67,700 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 6,400 | 5,900 |
Stock-based compensation | 4,300 | 3,200 |
Amortization of premium on investments, net | 11,400 | 9,500 |
Allowance for doubtful accounts | (1,500) | 3,700 |
Deferred income tax expense | 8,500 | 4,500 |
Realized gains on investments, net | (9,100) | (5,100) |
Excess tax benefits from stock-based compensation | 0 | (800) |
Other | (200) | (100) |
Change in operating assets and liabilities: | ||
Premiums receivable | (14,500) | (14,300) |
Reinsurance recoverable for paid and unpaid losses | 36,100 | 38,000 |
Federal income taxes | 3,000 | 2,200 |
Unpaid losses and loss adjustment expenses | 17,500 | 11,800 |
Unearned premiums | 16,700 | 16,300 |
Accounts payable, accrued expenses and other liabilities | (6,200) | 2,400 |
Deferred reinsurance gain—LPT Agreement | (11,700) | (14,600) |
Contingent commission receivable—LPT Agreement | (1,900) | (2,800) |
Other | 2,000 | (9,900) |
Net cash provided by operating activities | 97,000 | 94,000 |
Investing activities | ||
Purchase of fixed maturity securities | (325,200) | (365,600) |
Purchase of equity securities | (38,800) | (77,700) |
Purchase of short-term investments | (8,000) | (18,500) |
Proceeds from sale of fixed maturity securities | 111,700 | 87,000 |
Proceeds from sale of equity securities | 70,200 | 21,400 |
Proceeds from maturities and redemptions of investments | 145,100 | 214,000 |
Capital expenditures | (3,900) | (7,400) |
Change in restricted cash and cash equivalents | (200) | 7,700 |
Net cash used in investing activities | (49,100) | (139,100) |
Financing activities | ||
Acquisition of treasury stock | (18,600) | 0 |
Cash transactions related to stock-based compensation | 7,100 | 3,100 |
Dividends paid to stockholders | (8,800) | (5,800) |
Payments on notes payable and capital leases | (100) | (400) |
Excess tax benefits from stock-based compensation, financing activities | 0 | 800 |
Net cash used in financing activities | (20,400) | (2,300) |
Net increase (decrease) in cash and cash equivalents | 27,500 | (47,400) |
Cash and cash equivalents at the beginning of the period | 56,600 | 103,600 |
Cash and cash equivalents at the end of the period | $ 84,100 | $ 56,200 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
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, 2015 . 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 and 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, and investments. Reclassifications Certain prior period information has been reclassified to conform to the current period presentation. |
Changes in Estimates Level 1 (N
Changes in Estimates Level 1 (Notes) | 9 Months Ended |
Sep. 30, 2016 | |
Changes in Estimates [Abstract] | |
Change in Estimates | Change in Estimates The Company reduced its estimated reserves ceded under the Loss Portfolio Transfer Agreement (LPT Reserve Adjustment) as a result of the determination that an adjustment was necessary to reflect observed favorable paid loss trends during the second quarter of 2016 . The following table shows the financial statement impact related to the reduction in estimated reserves ceded under the Loss Portfolio Transfer Agreement (LPT Agreement). Nine Months Ended September 30, 2016 (in millions, except per share data) Change in estimated reserves ceded under the LPT Agreement $ (5.0 ) Cumulative adjustment to the Deferred Gain (1) (3.1 ) Net income impact of change in estimate 3.1 EPS impact of change in estimate Basic 0.10 Diluted 0.09 (1) The cumulative adjustment to the Deferred reinsurance gain–LPT Agreement (Deferred Gain) was also recognized in losses and LAE incurred 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. The Company increased its estimate of contingent commission receivable – LPT Agreement (LPT Contingent Commission Adjustment) as a result of the determination that an adjustment was necessary to reflect observed favorable paid loss trends during the second quarter of 2016 . The following table shows the financial statement impact related to these changes in estimates. Nine Months Ended September 30, 2016 (in millions, except per share data) Change in estimate of contingent commission receivable – LPT Agreement $ 1.9 Cumulative adjustment to the Deferred Gain (1) (1.8 ) Net income impact of change in estimate 1.8 EPS impact of change in estimate Basic 0.06 Diluted 0.05 (1) The cumulative adjustment to the Deferred Gain was also recognized in losses and LAE incurred 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. |
New Accounting Standards Level
New Accounting Standards Level 1 (Notes) | 9 Months Ended |
Sep. 30, 2016 | |
New Accounting Standards [Abstract] | |
New Accounting Standards | New Accounting Standards Recently Adopted Accounting Standards In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) Number 2016-09, Compensation - Stock Compensation (Topic 718). This update simplifies several aspects of the accounting for share-based payment award transactions, including income taxes and classification of awards on the balance sheet and on the statement of cash flows. This update becomes effective for annual reporting periods, including interim periods within those annual periods, beginning after December 15, 2016 and early adoption is permitted. The Company elected to early adopt this standard in the quarter ended September 30, 2016 with an effective date of January 1, 2016. Adoption of this standard had the following impacts on the Company's consolidated financial statements: • Consolidated Statements of Comprehensive Income – This standard requires that the tax effects of stock-based compensation be recognized in the income tax expense. Net tax benefits related to stock-based compensation of $0.1 million and $1.4 million were recognized as reductions to Income tax expense and increases to Net income in the Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2016, respectively. These changes had no impact on the Company's basic and diluted earnings per share for the three months ended September 30, 2016, but increased basic and diluted earnings per share by $0.04 for the nine months ended September 30, 2016. This standard also requires that assumed proceeds under the treasury stock method be modified to exclude the excess tax benefits that would have been recognized in Additional paid-in capital. These changes were applied on a prospective basis. • Consolidated Statements of Cash Flows – This standard requires that the excess tax benefits from stock-based compensation be reported as cash flows from operating activities rather than the previous requirement to present the excess tax benefits from stock-based compensation as an inflow from financing activities and an outflow from operating activities. This update resulted in a change in presentation that was applied on a prospective basis and prior periods have not been adjusted. This standard allows the Company to make a policy election as to whether it will include an estimate of stock-based compensation awards expected to be forfeited or whether it will account for forfeitures as they occur. The Company has elected to continue to estimate forfeitures in the computation of its stock-based compensation, consistent with previous guidance, and had no impact on the Company's consolidated financial statements. Finally, this standard allows the Company to withhold an amount in excess of the supplemental rate from an employee’s stock-based compensation for federal tax withholding purposes without triggering liability accounting. It also clarifies that all cash payments made to tax authorities on an employee’s behalf should be presented as cash flows from financing activities in the Consolidated Statements of Cash Flows. This update related to tax withholding and presentation of cash flows had no impact on the Company's consolidated financial statements. Recently Issued Accounting Standards – Not Yet Adopted In January 2016, the FASB issued ASU Number 2016-01, Financial Instruments - Overall (Subtopic 825-10). This update replaces the guidance to classify equity securities with readily determinable fair values into different categories (trading or available-for-sale) and requires equity securities to be measured at fair value with changes in fair value recognized through net income. Additionally, this update eliminates the method and significant assumptions used to estimate the fair value of financial instruments measured at amortized cost. It requires financial instruments to be measured at fair value using the exit price notion. Furthermore, this update clarifies that an evaluation of deferred tax assets related to available-for-sale securities is needed, in combination with an evaluation of other deferred tax assets, to determine if a valuation allowance is required. This update becomes effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. This update will result in a reclassification adjustment, net of tax, to retained earnings from accumulated other comprehensive income, which will be determined based on the fair value of securities at the effective date of adoption. In February 2016, the FASB issued ASU Number 2016-02, Leases (Topic 842). This update provides guidance on a new lessee model that includes the recognition of assets and liabilities arising from lease transactions on the balance sheet. Additionally, the update provides clarity on the definition of a lease and the distinction between finance and operating leases. Furthermore, the update requires certain qualitative and quantitative disclosures pertaining to the amounts recorded in the financial statements. This update becomes effective for annual reporting periods, including interim periods within those annual periods, beginning after December 15, 2018 and early adoption is permitted. The Company has not yet estimated the full impact that the adoption will have on its consolidated financial condition and results of operations. In June 2016, the FASB issued ASU Number 2016-13, Financial Instruments - Credit Losses (Topic 326). This update replaces the incurred loss impairment methodology for recognizing credit losses on financial instruments with a methodology that reflects an entity's current estimate of all expected credit losses. This update requires financial assets measured at amortized cost to be presented net of an allowance for credit losses. Additionally, this update requires credit losses on available-for-sale debt securities to be presented as an allowance rather than as a write-down, allowing an entity to also record reversals of credit losses in current period net income. This update becomes effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted as of fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company has not yet estimated the full impact that the adoption will have on its consolidated financial condition and results of operations. In August 2016, the FASB issued ASU Number 2016-15, Statement of Cash Flows (Topic 230) . This update provides guidance and clarification on eight specific cash flow issues due to diversity in practice of how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The cash flow issues affected are debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments or other debt instruments with coupon rates that are insignificant in relation to the effective interest rate of the borrowing, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, distributions received from equity method investees, beneficial interest in securitization transactions, and separately identifiable cash flows and application of the predominance principle. This update becomes effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company has not yet estimated the full impact that the adoption will have on its consolidated financial condition and results of operations. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2016 | |
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, 2016 December 31, 2015 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value (in millions) Financial assets Investments $ 2,582.4 $ 2,582.4 $ 2,487.2 $ 2,487.2 Cash and cash equivalents 84.1 84.1 56.6 56.6 Restricted cash and cash equivalents 2.7 2.7 2.5 2.5 Financial liabilities Notes payable $ 32.0 $ 35.0 $ 32.0 $ 36.6 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 Company's estimates of fair value for financial liabilities are based on the interest rates for 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. The following table presents the items on the accompanying Consolidated Balance Sheets that are stated at fair value and the corresponding fair value measurements. September 30, 2016 December 31, 2015 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (in millions) Fixed maturity securities U.S. Treasuries $ — $ 127.9 $ — $ — $ 120.2 $ — U.S. Agencies — 13.0 — — 24.4 — States and municipalities — 897.2 — — 854.5 — Corporate securities — 996.5 — — 925.3 — Residential mortgage-backed securities — 235.0 — — 237.9 — Commercial mortgage-backed securities — 86.5 — — 80.3 — Asset-backed securities — 27.8 — — 45.9 — Total fixed maturity securities $ — $ 2,383.9 $ — $ — $ 2,288.5 $ — Equity securities Corporate equity securities $ 179.6 $ — $ — $ 198.7 $ — $ — Federal Home Loan Bank stock — — 4.9 — — — Total equity securities $ 179.6 $ — $ 4.9 $ 198.7 $ — $ — Short-term investments $ — $ 14.0 $ — $ — $ — $ — The following table provides a reconciliation of the beginning and ending balances that are measured using Level 3 inputs for the nine months ended September 30, 2016 . Equity Securities (in millions) Beginning balance, January 1, 2016 $ — Purchases 4.9 Ending balance, September 30, 2016 $ 4.9 Each of the Company's insurance operating subsidiaries is a member of the Federal Home Loan Bank (FHLB) of San Francisco. Members are required to purchase stock in the FHLB in addition to maintaining collateral deposits that back any funds advanced. Investment in FHLB stock is recorded at cost, as purchases and sales of these securities are at par value with the issuer. The stock is considered a restricted security and is periodically evaluated for impairment based on the ultimate recovery of par value. Due to the nature of FHLB stock, its carrying value approximates fair value. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2016 | |
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 Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in millions) At September 30, 2016 Fixed maturity securities U.S. Treasuries $ 122.9 $ 5.0 $ — $ 127.9 U.S. Agencies 11.9 1.1 — 13.0 States and municipalities 842.9 54.6 (0.3 ) 897.2 Corporate securities 957.9 39.4 (0.8 ) 996.5 Residential mortgage-backed securities 225.3 9.7 — 235.0 Commercial mortgage-backed securities 84.5 2.0 — 86.5 Asset-backed securities 27.7 0.1 — 27.8 Total fixed maturity securities 2,273.1 111.9 (1.1 ) 2,383.9 Equity securities Corporate equity securities 109.5 71.4 (1.3 ) 179.6 Federal Home Loan Bank stock 4.9 — — 4.9 Total equity securities 114.4 71.4 (1.3 ) 184.5 Short-term investments 14.0 — — 14.0 Total investments $ 2,401.5 $ 183.3 $ (2.4 ) $ 2,582.4 At December 31, 2015 Fixed maturity securities U.S. Treasuries $ 116.4 $ 3.9 $ (0.1 ) $ 120.2 U.S. Agencies 23.0 1.4 — 24.4 States and municipalities 809.4 45.1 — 854.5 Corporate securities 913.4 19.9 (8.0 ) 925.3 Residential mortgage-backed securities 231.8 7.1 (1.0 ) 237.9 Commercial mortgage-backed securities 81.1 0.2 (1.0 ) 80.3 Asset-backed securities 46.0 — (0.1 ) 45.9 Total fixed maturity securities 2,221.1 77.6 (10.2 ) 2,288.5 Equity securities Corporate equity securities 137.5 65.8 (4.6 ) 198.7 Total equity securities 137.5 65.8 (4.6 ) 198.7 Total investments $ 2,358.6 $ 143.4 $ (14.8 ) $ 2,487.2 The amortized cost and estimated fair value of fixed maturity securities at September 30, 2016 , 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 $ 149.6 $ 151.2 Due after one year through five years 920.1 958.6 Due after five years through ten years 600.6 641.2 Due after ten years 265.3 283.6 Mortgage and asset-backed securities 337.5 349.3 Total $ 2,273.1 $ 2,383.9 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, 2016 and December 31, 2015 . September 30, 2016 December 31, 2015 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 U.S. Treasuries $ — $ — — $ 27.4 $ (0.1 ) 20 States and municipalities 44.3 (0.3 ) 12 — — — Corporate securities — — — 328.4 (4.7 ) 122 Residential mortgage-backed securities — — — 50.5 (0.8 ) 24 Commercial mortgage-backed securities — — — 51.5 (1.0 ) 22 Asset-backed securities — — — 34.1 — 27 Total fixed maturity securities 44.3 (0.3 ) 12 491.9 (6.6 ) 215 Equity securities 13.5 (1.1 ) 30 35.8 (4.6 ) 45 Total less than 12 months $ 57.8 $ (1.4 ) 42 $ 527.7 $ (11.2 ) 260 12 months or greater: Fixed maturity securities Corporate securities $ 24.4 $ (0.8 ) 10 $ 34.6 $ (3.3 ) 15 Residential mortgage-backed securities — — — 7.1 (0.2 ) 25 Asset-backed securities — — — 11.1 (0.1 ) 4 Total fixed maturity securities 24.4 (0.8 ) 10 52.8 (3.6 ) 44 Equity securities 2.2 (0.2 ) 7 — — — Total 12 months or greater $ 26.6 $ (1.0 ) 17 $ 52.8 $ (3.6 ) 44 Total available-for-sale: Fixed maturity securities U.S. Treasuries $ — $ — — $ 27.4 $ (0.1 ) 20 States and municipalities 44.3 (0.3 ) 12 — — — Corporate securities 24.4 (0.8 ) 10 363.0 (8.0 ) 137 Residential mortgage-backed securities — — — 57.6 (1.0 ) 49 Commercial mortgage-backed securities — — — 51.5 (1.0 ) 22 Asset-backed securities — — — 45.2 (0.1 ) 31 Total fixed maturity securities 68.7 (1.1 ) 22 544.7 (10.2 ) 259 Equity securities 15.7 (1.3 ) 37 35.8 (4.6 ) 45 Total available-for-sale $ 84.4 $ (2.4 ) 59 $ 580.5 $ (14.8 ) 304 Based on reviews of the fixed maturity securities, the Company determined that unrealized losses for the nine months ended September 30, 2016 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 principal value upon maturity. Based on reviews of the equity securities, the Company recognized a total impairment of $5.3 million in the fair value of 32 equity securities for the nine months ended September 30, 2016 , as a result of the Company's intent to sell and/or the severity and duration of the change in fair value of the securities. The remaining unrealized losses on equity securities were not considered to be other-than-temporary due to the financial condition and near-term prospects of the issuers. The other-than-temporary impairment of equity securities was primarily due to the Company's intent to sell certain securities and the downturn in the energy sector that continued through the first quarter of 2016. 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 Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (in millions) Net realized gains on investments Fixed maturity securities Gross gains $ — $ 0.2 $ 1.3 $ 0.5 Gross losses — (0.2 ) (0.5 ) (0.4 ) Net realized gains on fixed maturity securities $ — $ — $ 0.8 $ 0.1 Equity securities Gross gains $ 1.6 $ 2.2 $ 14.3 $ 5.6 Gross losses — (0.2 ) (6.0 ) (0.6 ) Net realized gains on equity securities $ 1.6 $ 2.0 $ 8.3 $ 5.0 Total $ 1.6 $ 2.0 $ 9.1 $ 5.1 Change in unrealized gains (losses) Fixed maturity securities $ (10.2 ) $ 8.0 $ 43.4 $ (11.0 ) Equity securities 2.1 (27.0 ) 8.9 (34.8 ) Total $ (8.1 ) $ (19.0 ) $ 52.3 $ (45.8 ) Net investment income was as follows: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (in millions) Fixed maturity securities $ 16.9 $ 17.3 $ 50.8 $ 51.6 Equity securities 1.7 1.7 5.4 4.0 Cash equivalents and restricted cash 0.1 0.1 0.2 0.1 Gross investment income 18.7 19.1 56.4 55.7 Investment expenses (0.8 ) (0.6 ) (2.3 ) (1.9 ) Net investment income $ 17.9 $ 18.5 $ 54.1 $ 53.8 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. Securities having a fair value of $1.0 billion and $881.2 million were on deposit as of September 30, 2016 and December 31, 2015 , respectively. These laws and regulations govern not only the amount, but also the types of securities that are eligible for deposit. 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 and restricted cash and cash equivalents held in trust for the benefit of ceding reinsurers was $27.7 million and $32.7 million at September 30, 2016 and December 31, 2015 , respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
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, 2016 2015 Statutory tax rate 35.0 % 35.0 % Dividends received deduction and tax-exempt interest (7.1 ) (7.6 ) LPT deferred gain amortization (3.3 ) (4.3 ) LPT reserve adjustment (1.5 ) (2.0 ) Pre-privatization reserve adjustment, excluding LPT — (4.6 ) Stock based compensation (1.1 ) — Other 0.9 0.7 Effective tax rate 22.9 % 17.2 % |
Liability for Unpaid Losses and
Liability for Unpaid Losses and Loss Adjustment Expenses | 9 Months Ended |
Sep. 30, 2016 | |
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, 2016 2015 (in millions) Unpaid losses and LAE, gross of reinsurance, at beginning of period $ 2,347.5 $ 2,369.7 Less reinsurance recoverable, excluding bad debt allowance, on unpaid losses and LAE 628.2 669.5 Net unpaid losses and LAE at beginning of period 1,719.3 1,700.2 Losses and LAE, net of reinsurance, incurred during the period related to: Current period 343.1 339.7 Prior periods (1.5 ) 1.3 Total net losses and LAE incurred during the period 341.6 341.0 Paid losses and LAE, net of reinsurance, related to: Current period 42.8 43.9 Prior periods 279.6 274.2 Total net paid losses and LAE during the period 322.4 318.1 Ending unpaid losses and LAE, net of reinsurance 1,738.5 1,723.1 Reinsurance recoverable, excluding bad debt allowance, on unpaid losses and LAE 591.5 634.8 Unpaid losses and LAE, gross of reinsurance, at end of period $ 2,330.0 $ 2,357.9 Total net losses and LAE included in the above table excludes the impact of the aggregate of amortization of the deferred reinsurance gain—LPT Agreement, LPT Reserve Adjustments, and LPT Contingent Commission Adjustments, which totaled $13.6 million and $17.5 million for the nine months ended September 30, 2016 and 2015 , respectively (Note 8 ). The changes in the estimates of incurred losses and LAE attributable to insured events for prior periods were related to the Company's assigned risk business. |
LPT Agreement
LPT Agreement | 9 Months Ended |
Sep. 30, 2016 | |
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 in 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 date through which the Company is entitled to receive a contingent profit commission under the LPT Agreement. 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 $8.7 million and $8.5 million of the Deferred Gain for the nine months ended September 30, 2016 and 2015 , respectively. Additionally, the Deferred Gain was reduced by $3.1 million and $6.4 million for the nine months ended September 30, 2016 and 2015 , respectively, due to favorable LPT Reserve Adjustments and by $1.8 million and $2.6 million for the nine months ended September 30, 2016 and 2015 , respectively, due to favorable LPT Contingent Commission Adjustments. The remaining Deferred Gain was $177.8 million and $189.5 million as of September 30, 2016 and December 31, 2015 , respectively. The estimated remaining liabilities subject to the LPT Agreement were $472.3 million and $498.0 million as of September 30, 2016 and December 31, 2015 , respectively. Losses and LAE paid with respect to the LPT Agreement totaled $715.9 million and $695.2 million from inception through September 30, 2016 and December 31, 2015 , respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2016 | |
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, 2016 December 31, 2015 (in millions) Net unrealized gain on investments, before taxes $ 180.9 $ 128.6 Deferred tax expense on net unrealized gains (63.3 ) (45.0 ) Total accumulated other comprehensive income, net $ 117.6 $ 83.6 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
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) March 2016 Stock options (1) 67,431 $ 8.38 $ 27.72 $ 0.6 RSUs (1) 80,816 27.72 — 2.2 PSUs (2) 97,236 27.72 — 2.7 May 2016 RSUs (1) 17,892 30.18 — 0.5 (1) The stock options and RSUs awarded in March 2016 were awarded to certain officers of the Company and vest 25% on March 15, 2017, 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. The RSUs awarded in May 2016 were awarded to non-employee Directors of the Company and have a service vesting period of one year from the date of grant. (2) The PSUs awarded in March 2016 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 484,829 and 463,466 stock options were exercised during the nine months ended September 30, 2016 and the year ended December 31, 2015 , respectively. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2016 | |
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 RSUs and PSUs had vested and 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 Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (in millions, except share data) Net income available to stockholders—basic and diluted $ 22.6 $ 24.5 $ 71.2 $ 67.7 Weighted average number of shares outstanding—basic 32,449,617 32,184,143 32,497,478 32,000,142 Effect of dilutive securities: PSUs 238,633 72,612 196,898 161,335 Stock options 192,827 245,708 251,068 289,348 RSUs 67,885 21,877 70,429 47,268 Dilutive potential shares 499,345 340,197 518,395 497,951 Weighted average number of shares outstanding—diluted 32,948,962 32,524,340 33,015,873 32,498,093 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, PSUs, and RSUs that were excluded from diluted earnings per share. Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Options excluded as the exercise price was greater than the average market price — 80,800 — 26,933 Options, PSUs and RSUs excluded under the treasury method as the potential proceeds on settlement or exercise price were greater than the value of shares acquired 67,431 336,006 98,021 316,273 |
Changes in Estimates (Tables)
Changes in Estimates (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Changes in Estimates [Abstract] | |
Change due to estmated reserves ceded under the LPT Agreement table | The following table shows the financial statement impact related to the reduction in estimated reserves ceded under the Loss Portfolio Transfer Agreement (LPT Agreement). Nine Months Ended September 30, 2016 (in millions, except per share data) Change in estimated reserves ceded under the LPT Agreement $ (5.0 ) Cumulative adjustment to the Deferred Gain (1) (3.1 ) Net income impact of change in estimate 3.1 EPS impact of change in estimate Basic 0.10 Diluted 0.09 (1) The cumulative adjustment to the Deferred reinsurance gain–LPT Agreement (Deferred Gain) was also recognized in losses and LAE incurred 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. |
Change to contingent profit commission table | The following table shows the financial statement impact related to these changes in estimates. Nine Months Ended September 30, 2016 (in millions, except per share data) Change in estimate of contingent commission receivable – LPT Agreement $ 1.9 Cumulative adjustment to the Deferred Gain (1) (1.8 ) Net income impact of change in estimate 1.8 EPS impact of change in estimate Basic 0.06 Diluted 0.05 (1) The cumulative adjustment to the Deferred Gain was also recognized in losses and LAE incurred 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. |
Fair Value of Financial Instr19
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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, 2016 December 31, 2015 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value (in millions) Financial assets Investments $ 2,582.4 $ 2,582.4 $ 2,487.2 $ 2,487.2 Cash and cash equivalents 84.1 84.1 56.6 56.6 Restricted cash and cash equivalents 2.7 2.7 2.5 2.5 Financial liabilities Notes payable $ 32.0 $ 35.0 $ 32.0 $ 36.6 |
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. September 30, 2016 December 31, 2015 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (in millions) Fixed maturity securities U.S. Treasuries $ — $ 127.9 $ — $ — $ 120.2 $ — U.S. Agencies — 13.0 — — 24.4 — States and municipalities — 897.2 — — 854.5 — Corporate securities — 996.5 — — 925.3 — Residential mortgage-backed securities — 235.0 — — 237.9 — Commercial mortgage-backed securities — 86.5 — — 80.3 — Asset-backed securities — 27.8 — — 45.9 — Total fixed maturity securities $ — $ 2,383.9 $ — $ — $ 2,288.5 $ — Equity securities Corporate equity securities $ 179.6 $ — $ — $ 198.7 $ — $ — Federal Home Loan Bank stock — — 4.9 — — — Total equity securities $ 179.6 $ — $ 4.9 $ 198.7 $ — $ — Short-term investments $ — $ 14.0 $ — $ — $ — $ — |
Fair value, assets measured on recurring basis, unobservable input reconciliation table | The following table provides a reconciliation of the beginning and ending balances that are measured using Level 3 inputs for the nine months ended September 30, 2016 . Equity Securities (in millions) Beginning balance, January 1, 2016 $ — Purchases 4.9 Ending balance, September 30, 2016 $ 4.9 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in millions) At September 30, 2016 Fixed maturity securities U.S. Treasuries $ 122.9 $ 5.0 $ — $ 127.9 U.S. Agencies 11.9 1.1 — 13.0 States and municipalities 842.9 54.6 (0.3 ) 897.2 Corporate securities 957.9 39.4 (0.8 ) 996.5 Residential mortgage-backed securities 225.3 9.7 — 235.0 Commercial mortgage-backed securities 84.5 2.0 — 86.5 Asset-backed securities 27.7 0.1 — 27.8 Total fixed maturity securities 2,273.1 111.9 (1.1 ) 2,383.9 Equity securities Corporate equity securities 109.5 71.4 (1.3 ) 179.6 Federal Home Loan Bank stock 4.9 — — 4.9 Total equity securities 114.4 71.4 (1.3 ) 184.5 Short-term investments 14.0 — — 14.0 Total investments $ 2,401.5 $ 183.3 $ (2.4 ) $ 2,582.4 At December 31, 2015 Fixed maturity securities U.S. Treasuries $ 116.4 $ 3.9 $ (0.1 ) $ 120.2 U.S. Agencies 23.0 1.4 — 24.4 States and municipalities 809.4 45.1 — 854.5 Corporate securities 913.4 19.9 (8.0 ) 925.3 Residential mortgage-backed securities 231.8 7.1 (1.0 ) 237.9 Commercial mortgage-backed securities 81.1 0.2 (1.0 ) 80.3 Asset-backed securities 46.0 — (0.1 ) 45.9 Total fixed maturity securities 2,221.1 77.6 (10.2 ) 2,288.5 Equity securities Corporate equity securities 137.5 65.8 (4.6 ) 198.7 Total equity securities 137.5 65.8 (4.6 ) 198.7 Total investments $ 2,358.6 $ 143.4 $ (14.8 ) $ 2,487.2 |
Investments classified by contractual maturity date table | The amortized cost and estimated fair value of fixed maturity securities at September 30, 2016 , 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 $ 149.6 $ 151.2 Due after one year through five years 920.1 958.6 Due after five years through ten years 600.6 641.2 Due after ten years 265.3 283.6 Mortgage and asset-backed securities 337.5 349.3 Total $ 2,273.1 $ 2,383.9 |
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, 2016 and December 31, 2015 . September 30, 2016 December 31, 2015 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 U.S. Treasuries $ — $ — — $ 27.4 $ (0.1 ) 20 States and municipalities 44.3 (0.3 ) 12 — — — Corporate securities — — — 328.4 (4.7 ) 122 Residential mortgage-backed securities — — — 50.5 (0.8 ) 24 Commercial mortgage-backed securities — — — 51.5 (1.0 ) 22 Asset-backed securities — — — 34.1 — 27 Total fixed maturity securities 44.3 (0.3 ) 12 491.9 (6.6 ) 215 Equity securities 13.5 (1.1 ) 30 35.8 (4.6 ) 45 Total less than 12 months $ 57.8 $ (1.4 ) 42 $ 527.7 $ (11.2 ) 260 12 months or greater: Fixed maturity securities Corporate securities $ 24.4 $ (0.8 ) 10 $ 34.6 $ (3.3 ) 15 Residential mortgage-backed securities — — — 7.1 (0.2 ) 25 Asset-backed securities — — — 11.1 (0.1 ) 4 Total fixed maturity securities 24.4 (0.8 ) 10 52.8 (3.6 ) 44 Equity securities 2.2 (0.2 ) 7 — — — Total 12 months or greater $ 26.6 $ (1.0 ) 17 $ 52.8 $ (3.6 ) 44 Total available-for-sale: Fixed maturity securities U.S. Treasuries $ — $ — — $ 27.4 $ (0.1 ) 20 States and municipalities 44.3 (0.3 ) 12 — — — Corporate securities 24.4 (0.8 ) 10 363.0 (8.0 ) 137 Residential mortgage-backed securities — — — 57.6 (1.0 ) 49 Commercial mortgage-backed securities — — — 51.5 (1.0 ) 22 Asset-backed securities — — — 45.2 (0.1 ) 31 Total fixed maturity securities 68.7 (1.1 ) 22 544.7 (10.2 ) 259 Equity securities 15.7 (1.3 ) 37 35.8 (4.6 ) 45 Total available-for-sale $ 84.4 $ (2.4 ) 59 $ 580.5 $ (14.8 ) 304 |
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 Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (in millions) Net realized gains on investments Fixed maturity securities Gross gains $ — $ 0.2 $ 1.3 $ 0.5 Gross losses — (0.2 ) (0.5 ) (0.4 ) Net realized gains on fixed maturity securities $ — $ — $ 0.8 $ 0.1 Equity securities Gross gains $ 1.6 $ 2.2 $ 14.3 $ 5.6 Gross losses — (0.2 ) (6.0 ) (0.6 ) Net realized gains on equity securities $ 1.6 $ 2.0 $ 8.3 $ 5.0 Total $ 1.6 $ 2.0 $ 9.1 $ 5.1 Change in unrealized gains (losses) Fixed maturity securities $ (10.2 ) $ 8.0 $ 43.4 $ (11.0 ) Equity securities 2.1 (27.0 ) 8.9 (34.8 ) Total $ (8.1 ) $ (19.0 ) $ 52.3 $ (45.8 ) |
Investment income table | Net investment income was as follows: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (in millions) Fixed maturity securities $ 16.9 $ 17.3 $ 50.8 $ 51.6 Equity securities 1.7 1.7 5.4 4.0 Cash equivalents and restricted cash 0.1 0.1 0.2 0.1 Gross investment income 18.7 19.1 56.4 55.7 Investment expenses (0.8 ) (0.6 ) (2.3 ) (1.9 ) Net investment income $ 17.9 $ 18.5 $ 54.1 $ 53.8 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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, 2016 2015 Statutory tax rate 35.0 % 35.0 % Dividends received deduction and tax-exempt interest (7.1 ) (7.6 ) LPT deferred gain amortization (3.3 ) (4.3 ) LPT reserve adjustment (1.5 ) (2.0 ) Pre-privatization reserve adjustment, excluding LPT — (4.6 ) Stock based compensation (1.1 ) — Other 0.9 0.7 Effective tax rate 22.9 % 17.2 % |
Liability for Unpaid Losses a22
Liability for Unpaid Losses and Loss Adjustment Expenses (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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, 2016 2015 (in millions) Unpaid losses and LAE, gross of reinsurance, at beginning of period $ 2,347.5 $ 2,369.7 Less reinsurance recoverable, excluding bad debt allowance, on unpaid losses and LAE 628.2 669.5 Net unpaid losses and LAE at beginning of period 1,719.3 1,700.2 Losses and LAE, net of reinsurance, incurred during the period related to: Current period 343.1 339.7 Prior periods (1.5 ) 1.3 Total net losses and LAE incurred during the period 341.6 341.0 Paid losses and LAE, net of reinsurance, related to: Current period 42.8 43.9 Prior periods 279.6 274.2 Total net paid losses and LAE during the period 322.4 318.1 Ending unpaid losses and LAE, net of reinsurance 1,738.5 1,723.1 Reinsurance recoverable, excluding bad debt allowance, on unpaid losses and LAE 591.5 634.8 Unpaid losses and LAE, gross of reinsurance, at end of period $ 2,330.0 $ 2,357.9 |
Accumulated Other Comprehensi23
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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, 2016 December 31, 2015 (in millions) Net unrealized gain on investments, before taxes $ 180.9 $ 128.6 Deferred tax expense on net unrealized gains (63.3 ) (45.0 ) Total accumulated other comprehensive income, net $ 117.6 $ 83.6 |
Stock-Based Compensation Stock-
Stock-Based Compensation Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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) March 2016 Stock options (1) 67,431 $ 8.38 $ 27.72 $ 0.6 RSUs (1) 80,816 27.72 — 2.2 PSUs (2) 97,236 27.72 — 2.7 May 2016 RSUs (1) 17,892 30.18 — 0.5 (1) The stock options and RSUs awarded in March 2016 were awarded to certain officers of the Company and vest 25% on March 15, 2017, 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. The RSUs awarded in May 2016 were awarded to non-employee Directors of the Company and have a service vesting period of one year from the date of grant. (2) The PSUs awarded in March 2016 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) | 9 Months Ended |
Sep. 30, 2016 | |
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 Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (in millions, except share data) Net income available to stockholders—basic and diluted $ 22.6 $ 24.5 $ 71.2 $ 67.7 Weighted average number of shares outstanding—basic 32,449,617 32,184,143 32,497,478 32,000,142 Effect of dilutive securities: PSUs 238,633 72,612 196,898 161,335 Stock options 192,827 245,708 251,068 289,348 RSUs 67,885 21,877 70,429 47,268 Dilutive potential shares 499,345 340,197 518,395 497,951 Weighted average number of shares outstanding—diluted 32,948,962 32,524,340 33,015,873 32,498,093 |
Antidilutive securities excluded from computation of earnings per share table | The following table presents options, PSUs, and RSUs that were excluded from diluted earnings per share. Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Options excluded as the exercise price was greater than the average market price — 80,800 — 26,933 Options, PSUs and RSUs excluded under the treasury method as the potential proceeds on settlement or exercise price were greater than the value of shares acquired 67,431 336,006 98,021 316,273 |
Basis of Presentation (Details)
Basis of Presentation (Details) | 9 Months Ended |
Sep. 30, 2016 | |
Basis of Presentation [Abstract] | |
Number of Operating Segments | 1 |
Changes in Estimates (Details)
Changes in Estimates (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Change in Accounting Estimate [Line Items] | ||||
Net income | $ 22,600 | $ 24,500 | $ 71,200 | $ 67,700 |
Basic | $ 0.70 | $ 0.76 | $ 2.19 | $ 2.12 |
Diluted | $ 0.69 | $ 0.75 | $ 2.16 | $ 2.08 |
Change Due to Estimated Reserves Ceded Under the LPT Agreement [Member] | ||||
Change in Accounting Estimate [Line Items] | ||||
Change to estimated reserves ceded under the LPT agreement | $ (5,000) | |||
Cumulative adjustment to the Deferred Gain | (3,100) | $ (6,400) | ||
Net income | $ 3,100 | |||
Basic | $ 0.10 | |||
Diluted | $ 0.09 | |||
Change to Contingent Profit Commission [Member] | ||||
Change in Accounting Estimate [Line Items] | ||||
Change in estimate of contingent commission receivable | $ 1,900 | |||
Cumulative adjustment to the Deferred Gain | (1,800) | $ (2,600) | ||
Net income | $ 1,800 | |||
Basic | $ 0.06 | |||
Diluted | $ 0.05 |
New Accounting Standards Adopte
New Accounting Standards Adopted ASU (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net income | $ 22,600 | $ 24,500 | $ 71,200 | $ 67,700 |
Income tax expense | 7,800 | $ 5,900 | 21,100 | $ 14,100 |
Accounting Standards Update No 2016-09 [Member] | ||||
Net income | 100 | 1,400 | ||
Income tax expense | $ (100) | $ (1,400) | ||
Basic and Diluted | $ 0.04 |
Fair Value of Financial Instr29
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Investments | $ 2,582,400 | $ 2,487,200 | ||
Investments, fair value | 2,582,400 | 2,487,200 | ||
Cash and cash equivalents | 84,100 | 56,600 | $ 56,200 | $ 103,600 |
Cash and cash equivalents, estimated fair value | 84,100 | 56,600 | ||
Restricted cash and cash equivalents | 2,700 | 2,500 | ||
Notes payable | 32,000 | 32,000 | ||
Notes Payable, fair value | 35,000 | 36,600 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Investments | 27,700 | 32,700 | ||
Restricted cash and cash equivalents | $ 2,700 | $ 2,500 |
Fair Value of Financial Instr30
Fair Value of Financial Instruments, Fair Value Inputs (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | $ 2,582.4 | $ 2,487.2 |
Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 2,383.9 | 2,288.5 |
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 | 2,383.9 | 2,288.5 |
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 | 127.9 | 120.2 |
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 | 127.9 | 120.2 |
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 | 13 | 24.4 |
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 | 13 | 24.4 |
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 | 897.2 | 854.5 |
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 | 897.2 | 854.5 |
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 | 996.5 | 925.3 |
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 | 996.5 | 925.3 |
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 | 235 | 237.9 |
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 | 235 | 237.9 |
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 | 86.5 | 80.3 |
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 | 86.5 | 80.3 |
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 | 27.8 | 45.9 |
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 | 27.8 | 45.9 |
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 |
Corporate equity securities [Domain] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 179.6 | 198.7 |
Corporate equity securities [Domain] | 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 | 179.6 | 198.7 |
Corporate equity securities [Domain] | 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 |
Corporate equity securities [Domain] | 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 |
Federal Home Loan Bank Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 4.9 | |
Federal Home Loan Bank Stock [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 |
Federal Home Loan Bank Stock [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 |
Federal Home Loan Bank Stock [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 | 4.9 | 0 |
Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 184.5 | 198.7 |
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 | 179.6 | 198.7 |
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 | 4.9 | 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 | 14 | 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 |
Fair Value of Financial Instr31
Fair Value of Financial Instruments Fair Value of Financial Instruments, Reconciliation of Level 3 Securities (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments | $ 2,582.4 | $ 2,487.2 |
Purchases, Issuances, Settlements, net | 4.9 | |
Equity Securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments | 184.5 | 198.7 |
Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments | $ 4.9 | $ 0 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | $ 2,401,500 | $ 2,358,600 |
Gross unrealized gain | 183,300 | 143,400 |
Gross unrealized loss | (2,400) | (14,800) |
Investments | 2,582,400 | 2,487,200 |
Deposit Assets | ||
Investments | 2,582,400 | 2,487,200 |
Assets Held-in-trust | ||
Investments | 2,582,400 | 2,487,200 |
Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 2,273,100 | 2,221,100 |
Gross unrealized gain | 111,900 | 77,600 |
Gross unrealized loss | (1,100) | (10,200) |
Investments | 2,383,900 | 2,288,500 |
Deposit Assets | ||
Investments | 2,383,900 | 2,288,500 |
Assets Held-in-trust | ||
Investments | 2,383,900 | 2,288,500 |
US Treasury Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 122,900 | 116,400 |
Gross unrealized gain | 5,000 | 3,900 |
Gross unrealized loss | 0 | (100) |
Investments | 127,900 | 120,200 |
Deposit Assets | ||
Investments | 127,900 | 120,200 |
Assets Held-in-trust | ||
Investments | 127,900 | 120,200 |
US Government Agencies Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 11,900 | 23,000 |
Gross unrealized gain | 1,100 | 1,400 |
Gross unrealized loss | 0 | 0 |
Investments | 13,000 | 24,400 |
Deposit Assets | ||
Investments | 13,000 | 24,400 |
Assets Held-in-trust | ||
Investments | 13,000 | 24,400 |
US States and Political Subdivisions Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 842,900 | 809,400 |
Gross unrealized gain | 54,600 | 45,100 |
Gross unrealized loss | (300) | 0 |
Investments | 897,200 | 854,500 |
Deposit Assets | ||
Investments | 897,200 | 854,500 |
Assets Held-in-trust | ||
Investments | 897,200 | 854,500 |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 957,900 | 913,400 |
Gross unrealized gain | 39,400 | 19,900 |
Gross unrealized loss | (800) | (8,000) |
Investments | 996,500 | 925,300 |
Deposit Assets | ||
Investments | 996,500 | 925,300 |
Assets Held-in-trust | ||
Investments | 996,500 | 925,300 |
Residential Mortgage Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 225,300 | 231,800 |
Gross unrealized gain | 9,700 | 7,100 |
Gross unrealized loss | 0 | (1,000) |
Investments | 235,000 | 237,900 |
Deposit Assets | ||
Investments | 235,000 | 237,900 |
Assets Held-in-trust | ||
Investments | 235,000 | 237,900 |
Commercial Mortgage Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 84,500 | 81,100 |
Gross unrealized gain | 2,000 | 200 |
Gross unrealized loss | 0 | (1,000) |
Investments | 86,500 | 80,300 |
Deposit Assets | ||
Investments | 86,500 | 80,300 |
Assets Held-in-trust | ||
Investments | 86,500 | 80,300 |
Asset-backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 27,700 | 46,000 |
Gross unrealized gain | 100 | 0 |
Gross unrealized loss | 0 | (100) |
Investments | 27,800 | 45,900 |
Deposit Assets | ||
Investments | 27,800 | 45,900 |
Assets Held-in-trust | ||
Investments | 27,800 | 45,900 |
Corporate equity securities [Domain] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 109,500 | 137,500 |
Gross unrealized gain | 71,400 | 65,800 |
Gross unrealized loss | (1,300) | (4,600) |
Investments | 179,600 | 198,700 |
Deposit Assets | ||
Investments | 179,600 | 198,700 |
Assets Held-in-trust | ||
Investments | 179,600 | 198,700 |
Federal Home Loan Bank Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 4,900 | |
Gross unrealized gain | 0 | |
Gross unrealized loss | 0 | |
Investments | 4,900 | |
Deposit Assets | ||
Investments | 4,900 | |
Assets Held-in-trust | ||
Investments | 4,900 | |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 114,400 | 137,500 |
Gross unrealized gain | 71,400 | 65,800 |
Gross unrealized loss | (1,300) | (4,600) |
Investments | 184,500 | 198,700 |
Deposit Assets | ||
Investments | 184,500 | 198,700 |
Assets Held-in-trust | ||
Investments | 184,500 | 198,700 |
Short-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 14,000 | |
Gross unrealized gain | 0 | |
Gross unrealized loss | 0 | |
Fair Value Measurement [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments | 27,700 | 32,700 |
Deposit Assets | ||
Investments | 27,700 | 32,700 |
Assets Held-in-trust | ||
Investments | 27,700 | 32,700 |
Fair Value Measurement [Member] | Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments | 1,044,200 | 881,200 |
Deposit Assets | ||
Investments | 1,044,200 | 881,200 |
Assets Held-in-trust | ||
Investments | $ 1,044,200 | $ 881,200 |
Investments, Amortized Cost and
Investments, Amortized Cost and Estimated Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Amortized Cost | ||
Due in one year or less, amortized cost | $ 149,600 | |
Due after one year through five years, amortized cost | 920,100 | |
Due after five years through ten years, amortized cost | 600,600 | |
Due after ten years, amortized cost | 265,300 | |
Mortgage and asset-backed securities, amortized cost | 337,500 | |
Total, amortized cost | 2,273,100 | |
Estimated Fair Value | ||
Due in one year or less, fair value | 151,200 | |
Due after one year through five years, fair value | 958,600 | |
Due after five years through ten years, fair value | 641,200 | |
Due after ten years, fair value | 283,600 | |
Mortgage and asset-backed securities, fair value | 349,300 | |
Total, fair value | $ 2,383,900 | $ 2,288,500 |
Investments, Continuous Loss Po
Investments, Continuous Loss Position (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Estimated Fair Value | |||||
Estimated fair value, less than 12 months | $ 57,800,000 | $ 57,800,000 | $ 527,700,000 | ||
Estimated fair value, 12 months or greater | 26,600,000 | 26,600,000 | 52,800,000 | ||
Estimated fair value, total | 84,400,000 | 84,400,000 | 580,500,000 | ||
Gross Unrealized Losses | |||||
Gross unrealized losses, less than 12 months | (1,400,000) | (1,400,000) | (11,200,000) | ||
Gross unrealized losses, 12 months or greater | 1,000,000 | 1,000,000 | 3,600,000 | ||
Estimated unrealized losses, total | $ (2,400,000) | $ (2,400,000) | $ (14,800,000) | ||
Number of issues in loss position, less than 12 months | 42 | 42 | 260 | ||
Number of Issues in loss position, 12 months or greater | 17 | 17 | 44 | ||
Number of issues loss position, aggregate | 59 | 59 | 304 | ||
Other than temporary impairment, credit losses recognized in earnings | $ 0 | $ 100,000 | $ 5,300,000 | $ 200,000 | |
Total impairments, number of securities | 32 | 32 | |||
Debt Securities [Member] | |||||
Estimated Fair Value | |||||
Estimated fair value, less than 12 months | $ 44,300,000 | $ 44,300,000 | $ 491,900,000 | ||
Estimated fair value, 12 months or greater | 24,400,000 | 24,400,000 | 52,800,000 | ||
Estimated fair value, total | 68,700,000 | 68,700,000 | 544,700,000 | ||
Gross Unrealized Losses | |||||
Gross unrealized losses, less than 12 months | (300,000) | (300,000) | (6,600,000) | ||
Gross unrealized losses, 12 months or greater | 800,000 | 800,000 | 3,600,000 | ||
Estimated unrealized losses, total | $ (1,100,000) | $ (1,100,000) | $ (10,200,000) | ||
Number of issues in loss position, less than 12 months | 12 | 12 | 215 | ||
Number of Issues in loss position, 12 months or greater | 10 | 10 | 44 | ||
Number of issues loss position, aggregate | 22 | 22 | 259 | ||
US Treasury Securities [Member] | |||||
Estimated Fair Value | |||||
Estimated fair value, less than 12 months | $ 0 | $ 0 | $ 27,400,000 | ||
Estimated fair value, total | 0 | 0 | 27,400,000 | ||
Gross Unrealized Losses | |||||
Gross unrealized losses, less than 12 months | 0 | 0 | (100,000) | ||
Estimated unrealized losses, total | $ 0 | $ 0 | $ (100,000) | ||
Number of issues in loss position, less than 12 months | 0 | 0 | 20 | ||
Number of issues loss position, aggregate | 0 | 0 | 20 | ||
US States and Political Subdivisions Debt Securities [Member] | |||||
Estimated Fair Value | |||||
Estimated fair value, less than 12 months | $ 44,300,000 | $ 44,300,000 | $ 0 | ||
Estimated fair value, total | 44,300,000 | 44,300,000 | 0 | ||
Gross Unrealized Losses | |||||
Gross unrealized losses, less than 12 months | (300,000) | (300,000) | 0 | ||
Estimated unrealized losses, total | $ (300,000) | $ (300,000) | $ 0 | ||
Number of issues in loss position, less than 12 months | 12 | 12 | 0 | ||
Number of issues loss position, aggregate | 12 | 12 | 0 | ||
Corporate Debt Securities [Member] | |||||
Estimated Fair Value | |||||
Estimated fair value, less than 12 months | $ 0 | $ 0 | $ 328,400,000 | ||
Estimated fair value, 12 months or greater | 24,400,000 | 24,400,000 | 34,600,000 | ||
Estimated fair value, total | 24,400,000 | 24,400,000 | 363,000,000 | ||
Gross Unrealized Losses | |||||
Gross unrealized losses, less than 12 months | 0 | 0 | (4,700,000) | ||
Gross unrealized losses, 12 months or greater | 800,000 | 800,000 | 3,300,000 | ||
Estimated unrealized losses, total | $ (800,000) | $ (800,000) | $ (8,000,000) | ||
Number of issues in loss position, less than 12 months | 0 | 0 | 122 | ||
Number of Issues in loss position, 12 months or greater | 10 | 10 | 15 | ||
Number of issues loss position, aggregate | 10 | 10 | 137 | ||
Residential Mortgage Backed Securities [Member] | |||||
Estimated Fair Value | |||||
Estimated fair value, less than 12 months | $ 0 | $ 0 | $ 50,500,000 | ||
Estimated fair value, 12 months or greater | 0 | 0 | 7,100,000 | ||
Estimated fair value, total | 0 | 0 | 57,600,000 | ||
Gross Unrealized Losses | |||||
Gross unrealized losses, less than 12 months | 0 | 0 | (800,000) | ||
Gross unrealized losses, 12 months or greater | 0 | 0 | 200,000 | ||
Estimated unrealized losses, total | $ 0 | $ 0 | $ (1,000,000) | ||
Number of issues in loss position, less than 12 months | 0 | 0 | 24 | ||
Number of Issues in loss position, 12 months or greater | 0 | 0 | 25 | ||
Number of issues loss position, aggregate | 0 | 0 | 49 | ||
Commercial Mortgage Backed Securities [Member] | |||||
Estimated Fair Value | |||||
Estimated fair value, less than 12 months | $ 0 | $ 0 | $ 51,500,000 | ||
Estimated fair value, total | 0 | 0 | 51,500,000 | ||
Gross Unrealized Losses | |||||
Gross unrealized losses, less than 12 months | 0 | 0 | (1,000,000) | ||
Estimated unrealized losses, total | $ 0 | $ 0 | $ (1,000,000) | ||
Number of issues in loss position, less than 12 months | 0 | 0 | 22 | ||
Number of issues loss position, aggregate | 0 | 0 | 22 | ||
Asset-backed Securities [Member] | |||||
Estimated Fair Value | |||||
Estimated fair value, less than 12 months | $ 0 | $ 0 | $ 34,100,000 | ||
Estimated fair value, 12 months or greater | 0 | 0 | 11,100,000 | ||
Estimated fair value, total | 0 | 0 | 45,200,000 | ||
Gross Unrealized Losses | |||||
Gross unrealized losses, less than 12 months | 0 | 0 | 0 | ||
Gross unrealized losses, 12 months or greater | 0 | 0 | 100,000 | ||
Estimated unrealized losses, total | $ 0 | $ 0 | $ (100,000) | ||
Number of issues in loss position, less than 12 months | 0 | 0 | 0 | ||
Number of Issues in loss position, 12 months or greater | 0 | 0 | 4 | ||
Number of issues loss position, aggregate | 0 | 0 | 0 | ||
Equity Securities [Member] | |||||
Estimated Fair Value | |||||
Estimated fair value, less than 12 months | $ 13,500,000 | $ 13,500,000 | $ 35,800,000 | ||
Estimated fair value, 12 months or greater | 2,200,000 | 2,200,000 | 0 | ||
Estimated fair value, total | 15,700,000 | 15,700,000 | 35,800,000 | ||
Gross Unrealized Losses | |||||
Gross unrealized losses, less than 12 months | (1,100,000) | (1,100,000) | (4,600,000) | ||
Gross unrealized losses, 12 months or greater | 200,000 | 200,000 | 0 | ||
Estimated unrealized losses, total | $ (1,300,000) | $ (1,300,000) | $ (4,600,000) | ||
Number of issues in loss position, less than 12 months | 30 | 30 | 45 | ||
Number of Issues in loss position, 12 months or greater | 7 | 7 | 0 | ||
Number of issues loss position, aggregate | 37 | 37 | 45 |
Investments, Net Realized Gains
Investments, Net Realized Gains (Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net realized gains (losses) | ||||
Net realized gains (losses) on fixed maturity and equity securities | $ 1.6 | $ 2 | $ 9.1 | $ 5.1 |
Change in unrealized gains (losses) | ||||
Change in unrealized gains (losses) on fixed maturity and equity securities | (8.1) | (19) | 52.3 | (45.8) |
Debt Securities [Member] | ||||
Net realized gains (losses) | ||||
Gross gains from sales | 0 | 0.2 | 1.3 | 0.5 |
Gross losses from sales | 0 | 0.2 | 0.5 | 0.4 |
Net realized gains (losses) on fixed maturity and equity securities | 0 | 0 | 0.8 | 0.1 |
Change in unrealized gains (losses) | ||||
Change in unrealized gains (losses) on fixed maturity and equity securities | (10.2) | 8 | 43.4 | (11) |
Equity Securities [Member] | ||||
Net realized gains (losses) | ||||
Gross gains from sales | 1.6 | 2.2 | 14.3 | 5.6 |
Gross losses from sales | 0 | 0.2 | 6 | 0.6 |
Net realized gains (losses) on fixed maturity and equity securities | 1.6 | 2 | 8.3 | 5 |
Change in unrealized gains (losses) | ||||
Change in unrealized gains (losses) on fixed maturity and equity securities | $ 2.1 | $ (27) | $ 8.9 | $ (34.8) |
Net Investment Income (Details)
Net Investment Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Investment income | $ 18.7 | $ 19.1 | $ 56.4 | $ 55.7 |
Investment expenses | 0.8 | 0.6 | 2.3 | 1.9 |
Net investment income | 17.9 | 18.5 | 54.1 | 53.8 |
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 | 16.9 | 17.3 | 50.8 | 51.6 |
Equity Securities [Member] | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Investment income related to equity securities | 1.7 | 1.7 | 5.4 | 4 |
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 | $ 0.1 | $ 0.1 | $ 0.2 | $ 0.1 |
Income Taxes (Details)
Income Taxes (Details) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | ||
Statutory tax rate | 35.00% | 35.00% |
Dividends received deduction and tax-exempt interest | (7.10%) | (7.60%) |
LPT deferred gain amortization | (3.30%) | (4.30%) |
LPT reserve adjustment | (1.50%) | (2.00%) |
Pre-privatization reserve adjustment, excluding LPT | 0.00% | (4.60%) |
Stock based compensation | (1.10%) | 0.00% |
Other | 0.90% | 0.70% |
Effective tax rate | 22.90% | 17.20% |
Liability for Unpaid Losses a38
Liability for Unpaid Losses and Loss Adjustment Expenses (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Unpaid losses and LAE, gross of reinsurance, at beginning of period | $ 2,347,500 | $ 2,369,700 |
Less reinsurance recoverable, excluding bad debt allowance, on unpaid losses and LAE | 628,200 | 669,500 |
Net unpaid losses and LAE at beginning of period | 1,719,300 | 1,700,200 |
Losses and LAE, net of reinsurance, incurred during the period related to: | ||
Current period | 343,100 | 339,700 |
Prior periods | (1,500) | 1,300 |
Total net losses and LAE incurred during the period | 341,600 | 341,000 |
Deduct payments for losses and LAE, net of reinsurance, related to: | ||
Current period | 42,800 | 43,900 |
Prior periods | 279,600 | 274,200 |
Total net paid losses and LAE during the period | 322,400 | 318,100 |
Ending unpaid losses and LAE, net of reinsurance | 1,738,500 | 1,723,100 |
Reinsurance recoverable, excluding bad debt allowance, on unpaid losses and LAE | 591,500 | 634,800 |
Unpaid losses and LAE, gross of reinsurance, at end of period | 2,330,000 | 2,357,900 |
LPT Agreement [Abstract] | ||
Impact of the LPT Agreement | $ 13,600 | $ 17,500 |
LPT Agreement LPT Agreement (De
LPT Agreement LPT Agreement (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
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 | ||
Ceded premiums written | 775,000 | ||
Amortization of deferred gain | 8,700 | $ 8,500 | |
Deferred reinsurance gain—LPT Agreement | 177,800 | $ 189,500 | |
Estimated remaining liabilities - LPT Agreement | 472,300 | 498,000 | |
Paid losses and LAE claims related to LPT | 715,900 | $ 695,200 | |
Change Due to Estimated Reserves Ceded Under the LPT Agreement [Member] | |||
Reinsurance Agreement [Line Items] | |||
Cumulative adjustment to the Deferred Gain | 3,100 | 6,400 | |
Change to Contingent Profit Commission [Member] | |||
Reinsurance Agreement [Line Items] | |||
Cumulative adjustment to the Deferred Gain | 1,800 | $ 2,600 | |
Indemnification Agreement [Member] | |||
Reinsurance Agreement [Line Items] | |||
Coverage provided under LPT Agreement | $ 2,000,000 |
Accumulated Other Comprehensi40
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Net unrealized gain on investments, before taxes | $ 180,900 | $ 128,600 |
Deferred tax expense on net unrealized gains | (63,300) | (45,000) |
Accumulated other comprehensive income, net | $ 117,600 | $ 83,600 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||
May 31, 2015 | Sep. 30, 2016 | Dec. 31, 2015 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-options exercised | 484,829 | 463,466 | ||||
Officer [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting rights for options awarded | vest 25% on March 15, 2017, and each of the subsequent three anniversaries of that date | |||||
Performance share awards performance period | two years | |||||
Performance share awards, minimum payout | 0.00% | |||||
Performance 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 | [1] | 67,431 | ||||
Share-based compensation options, exercise price on grant date | [1] | $ 8.38 | ||||
Share-based compensation award, fair value assumptions, exercise price | [1] | $ 27.72 | ||||
Fair value of awards awarded on grant date | [1] | $ 0.6 | ||||
Stock Option [Member] | Officer [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, expiration period | 7 years | |||||
Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation award, shares issued | [1] | 17,892 | 80,816 | |||
Share-based compensation options, exercise price on grant date | $ 30.18 | [1] | $ 27.72 | [2] | ||
Share-based compensation award, fair value assumptions, exercise price | $ 0 | $ 0 | ||||
Fair value of awards awarded on grant date | [1] | $ 0.5 | $ 2.2 | |||
Restricted Stock Units (RSUs) [Member] | Director [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, award vesting period | 1 year | |||||
Performance Shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation award, shares issued | [2] | 97,236 | ||||
Share-based compensation options, exercise price on grant date | [2] | $ 27.72 | ||||
Share-based compensation award, fair value assumptions, exercise price | $ 0 | |||||
Fair value of awards awarded on grant date | [2] | $ 2.7 | ||||
Performance Shares [Member] | Officer [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, award vesting period | 1 year | |||||
[1] | The stock options and RSUs awarded in March 2016 were awarded to certain officers of the Company and vest 25% on March 15, 2017, 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.The RSUs awarded in May 2016 were awarded to non-employee Directors of the Company and have a service vesting period of one year from the date of grant. | |||||
[2] | The PSUs awarded in March 2016 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 ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||||
Net income available to stockholders - basic and diluted | $ 22,600 | $ 24,500 | $ 71,200 | $ 67,700 |
Weighted average number of shares outstanding - basic | 32,449,617 | 32,184,143 | 32,497,478 | 32,000,142 |
Effect of dilutive securities: | ||||
Dilutive securities | 499,345 | 340,197 | 518,395 | 497,951 |
Weighted average number of shares outstanding - diluted | 32,948,962 | 32,524,340 | 33,015,873 | 32,498,093 |
Antidilutive securities excluded from computation of earnings per share | 0 | 80,800 | 0 | 26,933 |
Antidilutive securites excluded under the treasury method from computation of earnings per share | 67,431 | 336,006 | 98,021 | 316,273 |
Employee Stock Option [Member] | ||||
Effect of dilutive securities: | ||||
Dilutive securities | 192,827 | 245,708 | 251,068 | 289,348 |
Restricted Stock Units (RSUs) [Member] | ||||
Effect of dilutive securities: | ||||
Dilutive securities | 67,885 | 21,877 | 70,429 | 47,268 |
Performance Shares [Member] | ||||
Effect of dilutive securities: | ||||
Dilutive securities | 238,633 | 72,612 | 196,898 | 161,335 |