Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 27, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'HCI | ' |
Entity Registrant Name | 'HCI Group, Inc. | ' |
Entity Central Index Key | '0001400810 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 10,988,763 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Fixed-maturity securities, available for sale, at fair value (amortized cost: $98,743 and $110,738, respectively) | $100,177 | $112,151 |
Equity securities, available for sale, at fair value (cost: $38,856 and $17,248, respectively) | 39,097 | 17,649 |
Investment in joint venture, at equity | 4,478 | 0 |
Real estate investments | 18,938 | 16,228 |
Total investments | 162,690 | 146,028 |
Cash and cash equivalents | 304,323 | 293,398 |
Accrued interest and dividends receivable | 1,008 | 1,133 |
Premiums receivable | 26,583 | 14,674 |
Prepaid reinsurance premiums | 30,965 | 28,066 |
Income taxes receivable | 1,996 | 0 |
Deferred income taxes, net | 2,848 | 0 |
Deferred policy acquisition costs | 20,172 | 14,071 |
Property and equipment, net | 12,494 | 13,132 |
Other assets | 32,545 | 15,814 |
Total assets | 595,624 | 526,316 |
Liabilities and Stockholders' Equity | ' | ' |
Losses and loss adjustment expenses | 47,654 | 43,686 |
Unearned premiums | 203,798 | 171,907 |
Advance premiums | 10,517 | 4,504 |
Assumed reinsurance balances payable | 0 | 4,660 |
Accrued expenses | 11,874 | 4,032 |
Dividends payable | 0 | 19 |
Income taxes payable | 0 | 543 |
Deferred income taxes, net | 0 | 2,740 |
Long-term debt | 128,865 | 126,932 |
Other liabilities | 13,343 | 6,772 |
Total liabilities | 416,051 | 365,795 |
Commitments and contingencies (Note 13) | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock | 0 | 0 |
Common stock (no par value, 40,000,000 shares authorized, 10,447,807 and 10,939,268 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively) | 0 | 0 |
Additional paid-in capital | 28,834 | 48,966 |
Retained income | 149,710 | 110,441 |
Accumulated other comprehensive income, net of taxes | 1,029 | 1,114 |
Total stockholders' equity | 179,573 | 160,521 |
Total liabilities and stockholders' equity | 595,624 | 526,316 |
7% Series A Cumulative Convertible Preferred Stock [Member] | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock | 0 | 0 |
Series B Preferred Stock [Member] | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock | $0 | $0 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Available-for-sale Debt securities, Amortized cost | $98,743 | $110,738 |
Available-for-sale Equity securities, Amortized cost | $38,856 | $17,248 |
Preferred stock, no par value | ' | ' |
Preferred stock, authorized | 18,100,000 | 18,100,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, no par value | ' | ' |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 10,447,807 | 10,939,268 |
Common stock, outstanding | 10,447,807 | 10,939,268 |
7% Series A Cumulative Convertible Preferred Stock [Member] | ' | ' |
Preferred stock, liquidation preference, per share | $10 | $10 |
Preferred stock, no par value | ' | ' |
Preferred stock, authorized | 1,500,000 | 1,500,000 |
Preferred stock, issued | 0 | 110,684 |
Preferred stock, outstanding | 0 | 110,684 |
Series B Preferred Stock [Member] | ' | ' |
Preferred stock, no par value | ' | ' |
Preferred stock, authorized | 400,000 | 400,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Revenue | ' | ' | ' | ' |
Gross premiums earned | $88,944 | $81,244 | $274,053 | $245,743 |
Premiums ceded | -27,684 | -28,310 | -83,764 | -74,923 |
Net premiums earned | 61,260 | 52,934 | 190,289 | 170,820 |
Net investment income | 1,213 | 380 | 3,753 | 814 |
Policy fee income | 931 | 815 | 1,826 | 3,013 |
Net realized investment gains | 3,294 | 31 | 4,465 | 43 |
Other | 257 | 532 | 1,023 | 1,146 |
Total revenue | 66,955 | 54,692 | 201,356 | 175,836 |
Expenses | ' | ' | ' | ' |
Losses and loss adjustment expenses | 21,991 | 14,489 | 58,939 | 47,775 |
Policy acquisition and other underwriting expenses | 9,986 | 8,887 | 28,674 | 22,163 |
Interest expense | 2,626 | 847 | 7,809 | 2,379 |
Other operating expenses | 9,577 | 8,825 | 28,466 | 22,298 |
Total expenses | 44,180 | 33,048 | 123,888 | 94,615 |
Income before income taxes | 22,775 | 21,644 | 77,468 | 81,221 |
Income tax expense | 8,723 | 8,266 | 29,366 | 31,221 |
Net income | 14,052 | 13,378 | 48,102 | 50,000 |
Preferred stock dividends | ' | -22 | 4 | -88 |
Income available to common stockholders | $14,052 | $13,356 | $48,106 | $49,912 |
Basic earnings per common share | $1.34 | $1.17 | $4.48 | $4.46 |
Diluted earnings per common share | $1.23 | $1.13 | $4.07 | $4.32 |
Dividends per common share | $0.28 | $0.22 | $0.83 | $0.68 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $14,052 | $13,378 | $48,102 | $50,000 |
Change in unrealized gain on investments: | ' | ' | ' | ' |
Unrealized gain (loss) arising during the period | -1,542 | 439 | 4,305 | -744 |
Call and repayment losses charged to investment income | 4 | 3 | 21 | 21 |
Reclassification adjustment for net realized gains | -3,294 | -31 | -4,465 | -43 |
Net change in unrealized (loss) gain | -4,832 | 411 | -139 | -766 |
Deferred income taxes on above change | 1,864 | -137 | 54 | 317 |
Total other comprehensive (loss) income | -2,968 | 274 | -85 | -449 |
Comprehensive income | $11,084 | $13,652 | $48,017 | $49,551 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $48,102 | $50,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Stock-based compensation | 6,600 | 3,418 |
Net amortization of premiums on investments in fixed-maturity securities | 654 | 191 |
Depreciation and amortization | 3,682 | 1,482 |
Deferred income benefits | -5,319 | -1,499 |
Net realized investment gains | -4,465 | -43 |
Income from real estate investments | -44 | 0 |
Loss from joint venture | 22 | 0 |
(Gain) loss on sale of real estate investment | -1 | 2 |
Foreign currency remeasurement loss | 10 | 72 |
Changes in operating assets and liabilities: | ' | ' |
Premiums and reinsurance receivable | -11,909 | -13,958 |
Advance premiums | 6,013 | 5,599 |
Prepaid reinsurance premiums | -2,899 | -23,423 |
Accrued interest and dividends receivable | 125 | -197 |
Other assets | -13,645 | -5,091 |
Assumed reinsurance balances payable | -4,660 | -791 |
Deferred policy acquisition costs | -6,101 | -8,840 |
Losses and loss adjustment expenses | 3,968 | 2,356 |
Unearned premiums | 31,891 | 33,871 |
Income taxes | -2,539 | -7,553 |
Accrued expenses and other liabilities | 14,396 | 11,024 |
Net cash provided by operating activities | 63,881 | 46,620 |
Cash flows from investing activities: | ' | ' |
Investment in real estate under acquisition, development, and construction arrangement | -2,608 | 0 |
Investment in joint venture | -4,500 | 0 |
Purchase of property and equipment, net | -325 | -3,107 |
Purchase of real estate investments | -352 | -666 |
Purchase of fixed-maturity securities | -56,229 | -31,309 |
Purchase of equity securities | -32,608 | -5,144 |
Proceeds from sales of fixed-maturity securities | 67,519 | 1,749 |
Proceeds from calls, repayments and maturities of fixed-maturity securities | 2,960 | 2,534 |
Proceeds from sales of equity securities | 9,232 | 2,021 |
Proceeds from sales of real estate investments | 1 | 0 |
Net cash used in investing activities | -16,910 | -33,922 |
Cash flows from financing activities: | ' | ' |
Proceeds from the issuance of long-term debt | 0 | 40,250 |
Proceeds from the exercise of common stock options | 125 | 0 |
Cash dividends paid | -9,357 | -7,704 |
Cash dividends received under share repurchase forward contract | 514 | 0 |
Repurchases of common stock | -616 | -893 |
Repurchases of common stock under share repurchase plan | -27,815 | 0 |
Redemption of Series A preferred stock | -34 | 0 |
Debt issuance costs | -234 | -1,525 |
Tax benefits on stock-based compensation | 1,384 | 892 |
Net cash (used in) provided by financing activities | -36,033 | 31,020 |
Effect of exchange rate changes on cash | -13 | -54 |
Net increase in cash and cash equivalents | 10,925 | 43,664 |
Cash and cash equivalents at beginning of period | 293,398 | 230,214 |
Cash and cash equivalents at end of period | 304,323 | 273,878 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid for income taxes | 35,836 | 39,335 |
Cash paid for interest | 5,453 | 1,726 |
Non-cash investing and financing activities: | ' | ' |
Unrealized loss on investments in available-for-sale securities, net of tax | -85 | -449 |
Series A Preferred Stock [Member] | ' | ' |
Non-cash investing and financing activities: | ' | ' |
Conversion of Series A Preferred Stock to common stock | $991 | $814 |
Consolidated_Statement_of_Stoc
Consolidated Statement of Stockholders' Equity (Unaudited) (USD $) | Total | Share Repurchase Plan [Member] | Series A Preferred Stock [Member] | Common Stock [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Additional Paid-In Capital [Member] | Retained Income [Member] | Accumulated Other Comprehensive Income, Net of Tax [Member] |
In Thousands, except Share data | USD ($) | USD ($) | USD ($) | USD ($) | Share Repurchase Plan [Member] | USD ($) | Share Repurchase Plan [Member] | USD ($) | USD ($) |
USD ($) | |||||||||
Beginning Balance at Dec. 31, 2012 | $121,253 | ' | ' | ' | ' | $63,875 | ' | $55,758 | $1,620 |
Beginning Balance, shares at Dec. 31, 2012 | ' | ' | 241,182 | 10,877,537 | ' | ' | ' | ' | ' |
Net income | 50,000 | ' | ' | ' | ' | ' | ' | 50,000 | ' |
Total other comprehensive income, net of income taxes | -449 | ' | ' | ' | ' | ' | ' | ' | -449 |
Conversion of preferred stock to common stock, shares | ' | ' | -91,263 | 91,263 | ' | ' | ' | ' | ' |
Issuance of restricted stock, shares | ' | ' | ' | 564,000 | ' | ' | ' | ' | ' |
Exercise of common stock options, shares | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeiture of restricted stock, shares | ' | ' | ' | -29,260 | ' | ' | ' | ' | ' |
Repurchase and retirement of common stock | -893 | ' | ' | ' | ' | -893 | ' | ' | ' |
Repurchase and retirement of common stock, shares | ' | ' | ' | -26,705 | ' | ' | ' | ' | ' |
Common stock dividends | -7,600 | ' | ' | ' | ' | ' | ' | -7,600 | ' |
Preferred stock dividends | -88 | ' | ' | ' | ' | ' | ' | -88 | ' |
Tax benefits on stock-based compensation | 892 | ' | ' | ' | ' | 892 | ' | ' | ' |
Stock-based compensation | 3,418 | ' | ' | ' | ' | 3,418 | ' | ' | ' |
Ending Balance at Sep. 30, 2013 | 166,533 | ' | ' | ' | ' | 67,292 | ' | 98,070 | 1,171 |
Ending Balance, shares at Sep. 30, 2013 | ' | ' | 149,919 | 11,476,835 | ' | ' | ' | ' | ' |
Beginning Balance at Dec. 31, 2013 | 160,521 | ' | ' | ' | ' | 48,966 | ' | 110,441 | 1,114 |
Beginning Balance, shares at Dec. 31, 2013 | ' | ' | 110,684 | 10,939,268 | ' | ' | ' | ' | ' |
Net income | 48,102 | ' | ' | ' | ' | ' | ' | 48,102 | ' |
Total other comprehensive income, net of income taxes | -85 | ' | ' | ' | ' | ' | ' | ' | -85 |
Conversion of preferred stock to common stock, value | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion of preferred stock to common stock, shares | ' | ' | -107,298 | 107,298 | ' | ' | ' | ' | ' |
Issuance of restricted stock, value | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of restricted stock, shares | ' | ' | ' | 108,720 | ' | ' | ' | ' | ' |
Exercise of common stock options, value | 125 | ' | ' | ' | ' | 125 | ' | ' | ' |
Exercise of common stock options, shares | 50,000 | ' | ' | 50,000 | ' | ' | ' | ' | ' |
Forfeiture of restricted stock, value | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeiture of restricted stock, shares | ' | ' | ' | -8,485 | ' | ' | ' | ' | ' |
Repurchase and retirement of common stock | -616 | -27,815 | ' | ' | ' | -616 | -27,815 | ' | ' |
Repurchase and retirement of common stock, shares | ' | -734,924 | ' | -14,070 | -734,924 | ' | ' | ' | ' |
Redemption of Series A preferred stock | -34 | ' | ' | ' | ' | -25 | ' | -9 | ' |
Redemption of Series A preferred stock, shares | ' | ' | -3,386 | ' | ' | ' | ' | ' | ' |
Deferred taxes on debt discount | 215 | ' | ' | ' | ' | 215 | ' | ' | ' |
Common stock dividends | -8,828 | ' | ' | ' | ' | ' | ' | -8,828 | ' |
Preferred stock dividends | 4 | ' | ' | ' | ' | ' | ' | 4 | ' |
Tax benefits on stock-based compensation | 1,384 | ' | ' | ' | ' | 1,384 | ' | ' | ' |
Stock-based compensation | 6,600 | ' | ' | ' | ' | 6,600 | ' | ' | ' |
Ending Balance at Sep. 30, 2014 | $179,573 | ' | ' | ' | ' | $28,834 | ' | $149,710 | $1,029 |
Ending Balance, shares at Sep. 30, 2014 | ' | ' | ' | 10,447,807 | ' | ' | ' | ' | ' |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
Note 1 — Summary of Significant Accounting Policies | |
Basis of Presentation | |
The accompanying unaudited, consolidated financial statements for HCI Group, Inc. and its subsidiaries (collectively, the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, and the Securities and Exchange Commission (“SEC”) rules for interim financial reporting. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to such rules and regulations. However, in the opinion of management, the accompanying financial statements reflect all normal recurring adjustments necessary to present fairly the Company’s financial position as of September 30, 2014 and the results of operations and cash flows for the periods presented. The results of operations for the interim periods presented are not necessarily indicative of the results of operations to be expected for any subsequent interim period or for the fiscal year ending December 31, 2014. The accompanying unaudited consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2013 included in the Company’s Form 10-K, which was filed with the SEC on March 12, 2014. | |
In preparing the interim unaudited consolidated financial statements, management was required to make certain judgments, assumptions, and estimates that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures at the financial reporting date and throughout the periods being reported upon. Certain of the estimates result from judgments that can be subjective and complex and consequently actual results may differ from these estimates. | |
Material estimates that are particularly susceptible to significant change in the near term are related to the Company’s losses and loss adjustment expenses, which include amounts estimated for claims incurred but not yet reported. The Company uses various assumptions and actuarial data it believes to be reasonable under the circumstances to make these estimates. In addition, accounting policies specific to reinsurance with retrospective provisions, deferred income taxes, and stock-based compensation expense involve significant judgments and estimates material to the Company’s consolidated financial statements. | |
All significant intercompany balances and transactions have been eliminated. | |
Acquisition, Development and Construction Loan Arrangement | |
The Company has an acquisition, development and construction loan arrangement (“ADC Arrangement”) under which it provides financing to a property developer for the acquisition, development, and construction of a retail shopping center. The Company also expects to participate in the residual profit resulting from the ultimate sale or other use of the property. Classification and accounting for the ADC Arrangement as a loan, an investment in real estate, or a joint venture is determined by the Company’s evaluation of the characteristics and the risks and rewards of the ADC Arrangement. If the Company expects to receive more than 50% of the residual profit from the ADC Arrangement and it has characteristics similar to a real estate investment, the costs of the real estate project will be capitalized and interest will be recognized in net investment income (see Note 3 — “Investments”). | |
In addition, the Company considers any rights or features embedded in the ADC Arrangement that may require bifurcation and derivative accounting. Due to its participation in the expected residual profit, which is deemed a variable interest, the Company evaluates its involvements in the design and essential activities of the entity to which the Company provides financing for possible consolidation as the primary beneficiary under the Variable Interest Model prescribed by the Financial Accounting Standards Board (“FASB”). | |
Any subsequent changes in terms, rights or the developer’s equity interest that may result in a reclassification or a change in the accounting treatment of the ADC Arrangement will be evaluated. The Company will continually assess the collectability of principal, accrued interest and fees. | |
Investment in Joint Venture | |
The Company has a 90% equity interest in a joint venture that was organized to acquire and develop land on which the joint venture partners plan to construct a retail shopping center (see Note 3 — “Investments”) for lease or for sale. The joint venture was determined to be a variable interest entity as it lacks sufficient equity to finance its activities without additional subordinated financial support. Despite having a majority equity interest, the Company does not have a controlling financial interest and, accordingly, is not required to consolidate the joint venture as its primary beneficiary under the Variable Interest Model. | |
In addition, the joint venture agreement contains an embedded purchase option the Company can exercise to purchase the entire interest of the other party to the joint venture after the expiration of a restricted period. The Company determined the embedded purchase option is not required to be bifurcated and fair value accounting at each reporting date is not applicable. Due to the lack of a controlling financial interest and until the embedded purchase option becomes exercisable, the Company uses the equity method rather than consolidation to account for its investment in the joint venture. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Changes and Error Corrections [Abstract] | ' |
Recent Accounting Pronouncements | ' |
Note 2 — Recent Accounting Pronouncements | |
Accounting Standards Update No. 2014-15. In August 2014, the FASB issued Accounting Standards Update No. 2014-15 (“ASU 2014-15”), Presentation of Financial Statements – Going Concern (Subtopic 205-40). The purpose of this update is to provide guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 applies to all reporting entities and is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early adoption is permitted. Adoption of this guidance is expected to have no effect on the Company’s consolidated financial statements. | |
Accounting Standards Update No. 2014-12. In June 2014, the FASB issued Accounting Standards Update No. 2014-12 (“ASU 2014-12”), Compensation – Stock Compensation (Topic 718). ASU 2014-12 applies to all reporting entities that grant employees share-based payments in which the terms of the award provide that a performance target affecting vesting could be achieved after the requisite service period. ASU 2014-12 is effective for all entities for reporting periods beginning after December 15, 2015. Early adoption is permitted. Entities may apply the amendments in this Update either (a) prospectively to all awards granted or modified after the effective date or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. Although the Company has share-based awards with performance targets, such awards do not permit vesting when a performance target is achieved after termination of an employee’s service. Adoption of this guidance had no effect on the Company’s consolidated financial statements. | |
Accounting Standards Update No. 2014-09. In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers (Topic 606). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance throughout the Industry Topics of the Codification. ASU 2014-09 also amends the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer to be consistent with the guidance in this ASU. ASU 2014-09 is effective for public entities for reporting periods beginning after December 15, 2016. Early adoption is not permitted. While the guidance specifically excludes revenues from insurance contracts, investments and financial instruments from the scope of the new guidance, the guidance will be applicable to the Company’s other forms of revenue not specifically exempted from the guidance. The adoption of this guidance is not expected to have a material effect on the Company’s consolidated financial statements. |
Investments
Investments | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||||||||||
Investments | ' | ||||||||||||||||||||||||
Note 3 — Investments | |||||||||||||||||||||||||
Available-for-Sale Securities | |||||||||||||||||||||||||
The Company holds investments in fixed-maturity securities and equity securities that are classified as available-for-sale. At September 30, 2014 and December 31, 2013, the cost or amortized cost, gross unrealized gains and losses, and estimated fair value of the Company’s available-for-sale securities by security type were as follows: | |||||||||||||||||||||||||
Cost or | Gross | Gross | Estimated | ||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Cost | Gain | Loss | Value | ||||||||||||||||||||||
As of September 30, 2014 | |||||||||||||||||||||||||
Fixed-maturity securities | |||||||||||||||||||||||||
U.S. Treasury and U.S. government agencies | $ | 1,330 | $ | 34 | $ | — | $ | 1,364 | |||||||||||||||||
Corporate bonds | 17,020 | 16 | (157 | ) | 16,879 | ||||||||||||||||||||
Commercial mortgage-backed securities | 11,163 | 408 | (40 | ) | 11,531 | ||||||||||||||||||||
State, municipalities, and political subdivisions | 59,796 | 1,158 | (41 | ) | 60,913 | ||||||||||||||||||||
Redeemable preferred stock | 9,434 | 100 | (44 | ) | 9,490 | ||||||||||||||||||||
Total | 98,743 | 1,716 | (282 | ) | 100,177 | ||||||||||||||||||||
Equity securities | 38,856 | 1,444 | (1,203 | ) | 39,097 | ||||||||||||||||||||
Total available-for-sale securities | $ | 137,599 | $ | 3,160 | $ | (1,485 | ) | $ | 139,274 | ||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Fixed-maturity securities | |||||||||||||||||||||||||
U.S. Treasury and U.S. government agencies | $ | 4,549 | $ | 37 | $ | (22 | ) | $ | 4,564 | ||||||||||||||||
Corporate bonds | 25,139 | 484 | (219 | ) | 25,404 | ||||||||||||||||||||
Commercial mortgage-backed securities | 10,929 | 499 | (96 | ) | 11,332 | ||||||||||||||||||||
State, municipalities, and political subdivisions | 69,715 | 917 | (181 | ) | 70,451 | ||||||||||||||||||||
Redeemable preferred stock | 406 | 5 | (11 | ) | 400 | ||||||||||||||||||||
Total | 110,738 | 1,942 | (529 | ) | 112,151 | ||||||||||||||||||||
Equity securities | 17,248 | 920 | (519 | ) | 17,649 | ||||||||||||||||||||
Total available-for-sale securities | $ | 127,986 | $ | 2,862 | $ | (1,048 | ) | $ | 129,800 | ||||||||||||||||
As of September 30, 2014 and December 31, 2013, $111 and $105, respectively, of U.S. Treasury securities relate to a statutory deposit held in trust for the Treasurer of Alabama. | |||||||||||||||||||||||||
Expected maturities will differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without penalties. The scheduled contractual maturities of fixed-maturity securities as of September 30, 2014 and December 31, 2013 are as follows: | |||||||||||||||||||||||||
Amortized | Estimated | ||||||||||||||||||||||||
Cost | Fair Value | ||||||||||||||||||||||||
As of September 30, 2014 | |||||||||||||||||||||||||
Available-for-sale | |||||||||||||||||||||||||
Due in one year or less | $ | 1,518 | $ | 1,520 | |||||||||||||||||||||
Due after one year through five years | 35,153 | 35,313 | |||||||||||||||||||||||
Due after five years through ten years | 39,811 | 40,365 | |||||||||||||||||||||||
Due after ten years | 11,098 | 11,448 | |||||||||||||||||||||||
Commercial mortgage-backed securities | 11,163 | 11,531 | |||||||||||||||||||||||
$ | 98,743 | $ | 100,177 | ||||||||||||||||||||||
Amortized | Estimated | ||||||||||||||||||||||||
Cost | Fair Value | ||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Available-for-sale | |||||||||||||||||||||||||
Due in one year or less | $ | 2,366 | $ | 2,381 | |||||||||||||||||||||
Due after one year through five years | 24,829 | 25,145 | |||||||||||||||||||||||
Due after five years through ten years | 59,083 | 59,582 | |||||||||||||||||||||||
Due after ten years | 13,531 | 13,711 | |||||||||||||||||||||||
Commercial mortgage-backed securities | 10,929 | 11,332 | |||||||||||||||||||||||
$ | 110,738 | $ | 112,151 | ||||||||||||||||||||||
Sales of Available-for-Sale Securities | |||||||||||||||||||||||||
Proceeds received, and the gross realized gains and losses from sales of available-for-sale securities, for the three and nine months ended September 30, 2014 and 2013 were as follows: | |||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||
Realized | Realized | ||||||||||||||||||||||||
Proceeds | Gains | Losses | |||||||||||||||||||||||
Three months ended September 30, 2014 | |||||||||||||||||||||||||
Fixed-maturity securities | $ | 47,557 | $ | 2,759 | $ | — | |||||||||||||||||||
Equity securities | $ | 3,302 | $ | 623 | $ | (88 | ) | ||||||||||||||||||
Three months ended September 30, 2013 | |||||||||||||||||||||||||
Fixed-maturity securities | $ | 390 | $ | 58 | $ | (1 | ) | ||||||||||||||||||
Equity securities | $ | 708 | $ | 20 | $ | (46 | ) | ||||||||||||||||||
Nine months ended September 30, 2014 | |||||||||||||||||||||||||
Fixed-maturity securities | $ | 67,519 | $ | 3,623 | $ | (9 | ) | ||||||||||||||||||
Equity securities | $ | 9,232 | $ | 1,131 | $ | (280 | ) | ||||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||||||||||
Fixed-maturity securities | $ | 1,749 | $ | 92 | $ | (4 | ) | ||||||||||||||||||
Equity securities | $ | 2,021 | $ | 84 | $ | (129 | ) | ||||||||||||||||||
Other-than-temporary Impairment (“OTTI”) | |||||||||||||||||||||||||
The Company regularly reviews its individual investment securities for OTTI. The Company considers various factors in determining whether each individual security is other-than-temporarily impaired, including: | |||||||||||||||||||||||||
• | the financial condition and near-term prospects of the issuer, including any specific events that may affect its operations or earnings; | ||||||||||||||||||||||||
• | the length of time and the extent to which the market value of the security has been below its cost or amortized cost; | ||||||||||||||||||||||||
• | general market conditions and industry or sector specific factors; | ||||||||||||||||||||||||
• | nonpayment by the issuer of its contractually obligated interest and principal payments; and | ||||||||||||||||||||||||
• | the Company’s intent and ability to hold the investment for a period of time sufficient to allow for the recovery of costs. | ||||||||||||||||||||||||
Securities with gross unrealized loss positions at September 30, 2014 and December 31, 2013, aggregated by investment category and length of time the individual securities have been in a continuous loss position, are as follows: | |||||||||||||||||||||||||
Less Than Twelve | Twelve Months or | Total | |||||||||||||||||||||||
Months | Greater | ||||||||||||||||||||||||
Gross | Estimated | Gross | Estimated | Gross | Estimated | ||||||||||||||||||||
Unrealized | Fair | Unrealized | Fair | Unrealized | Fair | ||||||||||||||||||||
As of September 30, 2014 | Loss | Value | Loss | Value | Loss | Value | |||||||||||||||||||
Fixed-maturity securities | |||||||||||||||||||||||||
Corporate bonds | $ | (151 | ) | $ | 11,164 | $ | (6 | ) | $ | 1,224 | $ | (157 | ) | $ | 12,388 | ||||||||||
Commercial mortgage-backed securities | (5 | ) | 283 | (35 | ) | 1,377 | (40 | ) | 1,660 | ||||||||||||||||
State, municipalities, and political subdivisions | (15 | ) | 4,085 | (26 | ) | 196 | (41 | ) | 4,281 | ||||||||||||||||
Redeemable preferred stock | (44 | ) | 5,239 | — | — | (44 | ) | 5,239 | |||||||||||||||||
Total fixed-maturity securities | (215 | ) | 20,771 | (67 | ) | 2,797 | (282 | ) | 23,568 | ||||||||||||||||
Equity securities | (980 | ) | 19,385 | (223 | ) | 1,728 | (1,203 | ) | 21,113 | ||||||||||||||||
Total available-for-sale securities | $ | (1,195 | ) | $ | 40,156 | $ | (290 | ) | $ | 4,525 | $ | (1,485 | ) | $ | 44,681 | ||||||||||
Less Than Twelve | Twelve Months or | Total | |||||||||||||||||||||||
Months | Greater | ||||||||||||||||||||||||
Gross | Estimated | Gross | Estimated | Gross | Estimated | ||||||||||||||||||||
Unrealized | Fair | Unrealized | Fair | Unrealized | Fair | ||||||||||||||||||||
As of December 31, 2013 | Loss | Value | Loss | Value | Loss | Value | |||||||||||||||||||
Fixed-maturity securities | |||||||||||||||||||||||||
U.S. Treasury and U.S. government agencies | $ | (22 | ) | $ | 3,291 | $ | — | $ | — | $ | (22 | ) | $ | 3,291 | |||||||||||
Corporate bonds | (212 | ) | 9,502 | (7 | ) | 230 | (219 | ) | 9,732 | ||||||||||||||||
Commercial mortgage-backed securities | (96 | ) | 2,179 | — | — | (96 | ) | 2,179 | |||||||||||||||||
State, municipalities, and political subdivisions | (181 | ) | 20,233 | — | — | (181 | ) | 20,233 | |||||||||||||||||
Redeemable preferred stock | (11 | ) | 239 | — | — | (11 | ) | 239 | |||||||||||||||||
Total fixed-maturity securities | (522 | ) | 35,444 | (7 | ) | 230 | (529 | ) | 35,674 | ||||||||||||||||
Equity securities | (273 | ) | 10,742 | (246 | ) | 1,069 | (519 | ) | 11,811 | ||||||||||||||||
Total available-for-sale securities | $ | (795 | ) | $ | 46,186 | $ | (253 | ) | $ | 1,299 | $ | (1,048 | ) | $ | 47,485 | ||||||||||
The Company believes there are no fundamental issues such as credit losses or other factors with respect to any of its available-for-sale securities. The unrealized losses on investments in fixed-maturity securities were caused primarily by interest-rate changes. It is expected that the securities will not be settled at a price less than the par value of the investments. In determining whether equity securities are other-than-temporarily impaired, the Company considers its intent and ability to hold a security for a period of time sufficient to allow for the recovery of cost. Because the declines in fair value are attributable to changes in interest rates or market conditions and not credit quality, and because the Company has the ability and intent to hold its available-for-sale investments until a market price recovery or maturity, the Company does not consider any of its investments to be other-than-temporarily impaired at September 30, 2014. | |||||||||||||||||||||||||
Investment in Joint Venture | |||||||||||||||||||||||||
In September 2014, Melbourne FMA, LLC (“Melbourne FMA”), a wholly owned subsidiary, entered into a joint venture agreement with FMKT Sponsor, LLC (“FMKT Sponsor”) to organize FMKT Mel JV, LLC (“FMJV”), a Florida limited liability company. Melbourne FMA and FMKT Sponsor contributed $4,500 and $500, respectively, in cash for equity interests of 90% and 10%, respectively, in FMJV. The joint venture will acquire and develop land on which the joint venture partners plan to construct a retail shopping center for lease or for sale in Melbourne, Florida. FMJV is deemed a variable interest entity (“VIE”) due to its lack of sufficient equity to finance its operations without direct or indirect additional financial support from parties to the joint venture. Although Melbourne FMA holds a majority interest in FMJV, certain major economic decisions specified in the agreement are not under Melbourne FMA’s control. As a result, Melbourne FMA is not the primary beneficiary and is not required to consolidate FMJV. | |||||||||||||||||||||||||
In addition, FMJV is contractually required to engage affiliates of FMKT Sponsor to manage and develop the project, and also operate the property while the joint venture agreement is in effect. The agreement includes FMKT Sponsor’s right of sale and first offer as well as an embedded option under which Melbourne FMA can purchase the entire interest of FMKT Sponsor. Under the right of sale and first offer, Melbourne FMA can either choose to purchase the interest of FMKT Sponsor in the developed property or approve the sale of the developed property to a third party buyer. Either party can initiate these provisions after the expiration of a restricted period. | |||||||||||||||||||||||||
There were no distributions during the three and nine months ended September 30, 2014. At September 30, 2014, the Company’s maximum exposure to loss relating to the VIE was $4,478 representing the carrying value of the investment. At September 30, 2014, an undistributed $22 loss from equity method investees was included in consolidated retained income. The following tables provide summarized operating results and the financial position of FMJV: | |||||||||||||||||||||||||
Three and Nine Months | |||||||||||||||||||||||||
Ended September 30, 2014 | |||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
Operating results: | |||||||||||||||||||||||||
Revenue | $ | — | |||||||||||||||||||||||
Operating expenses | 25 | ||||||||||||||||||||||||
Net loss | $ | (25 | ) | ||||||||||||||||||||||
Melbourne FMA’s share of net loss* | $ | 22 | |||||||||||||||||||||||
* | Included in other operating expenses in the Company’s consolidated statements of income. | ||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
Balance Sheet: | |||||||||||||||||||||||||
Construction in progress - real estate | $ | 3,220 | |||||||||||||||||||||||
Cash | 1,880 | ||||||||||||||||||||||||
Total assets | $ | 5,100 | |||||||||||||||||||||||
Other liabilities | 125 | ||||||||||||||||||||||||
Members’ capital | 4,975 | ||||||||||||||||||||||||
Total liabilities and members’ capital | $ | 5,100 | |||||||||||||||||||||||
Investment in joint venture, at equity | $ | 4,478 | |||||||||||||||||||||||
Real Estate Investments | |||||||||||||||||||||||||
Real estate investments consist of the following as of September 30, 2014 and December 31, 2013: | |||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Land | $ | 11,476 | $ | 11,299 | |||||||||||||||||||||
Land improvements | 1,399 | 1,351 | |||||||||||||||||||||||
Buildings | 3,097 | 3,022 | |||||||||||||||||||||||
Other | 1,317 | 1,262 | |||||||||||||||||||||||
Total, at cost | 17,289 | 16,934 | |||||||||||||||||||||||
Less: accumulated depreciation and amortization | (1,003 | ) | (706 | ) | |||||||||||||||||||||
Real estate, net | 16,286 | 16,228 | |||||||||||||||||||||||
ADC Arrangement classified as real estate investment | 2,652 | — | |||||||||||||||||||||||
Real estate investments | $ | 18,938 | $ | 16,228 | |||||||||||||||||||||
Depreciation and amortization expense related to real estate investments was $100 and $99, respectively, for the three months ended September 30, 2014 and 2013 and $298 and $290, respectively, for the nine months ended September 30, 2014 and 2013. | |||||||||||||||||||||||||
ADC Arrangement | |||||||||||||||||||||||||
In June 2014, the Company’s wholly owned subsidiary, Greenleaf Capital, LLC, entered into an ADC Arrangement under which it agreed to provide financing up to a maximum of $9,785 for the acquisition, development and construction of a retail shopping center and appurtenant facilities. Greenleaf Capital has an option to purchase the property when the construction project is completed contingent upon tenant rental commitments for at least 90% of rentable space being secured by the developer. The purchase price is calculated at maturity of the loan using a predetermined capitalization rate and the projected net operating income of the developed property. The loan has an initial term of 24 months and can be extended for an additional 12 months if the purchase option is not exercised by Greenleaf Capital. Prepayment is not permitted while the ADC Arrangement is in effect. The loan bears a fixed annual interest rate of 6% due monthly in arrears. The loan agreement is secured by a) a first mortgage on the land and improvements, b) assignment of all leases, rents, issues, and profits from the land and improvements, and c) personal guarantees. | |||||||||||||||||||||||||
Under this ADC Arrangement, Greenleaf Capital will provide substantially all necessary funds to complete the development and Greenleaf Capital will receive the entire residual profit of the developed property if it exercises the purchase option. The developer may make multiple draws on the credit facility as the construction progresses. Based on the characteristics of this ADC Arrangement which are similar to those of an investment, combined with the expected residual profit being greater than 50%, the arrangement is accounted for and reported in the balance sheet as a real estate investment. All project costs associated with the ADC Arrangement are capitalized. The loan commitment fee received by Greenleaf Capital is deferred and recognized in investment income on a straight-line basis over the term of the loan agreement. | |||||||||||||||||||||||||
Because of the purchase option and the substantial financial support provided by Greenleaf Capital, the developer who has no equity interest in the property is a VIE. However, Greenleaf Capital’s involvement is solely as the lender on the mortgage loan with protective rights as the lender. Greenleaf Capital does not have power to direct the activities that most significantly impact economic performance of the VIE. As a result, Greenleaf Capital is not the primary beneficiary and is not required to consolidate the VIE. At September 30, 2014, the Company’s maximum exposure to loss relating to the VIE was $2,652 representing the carrying value of the ADC Arrangement. | |||||||||||||||||||||||||
In addition, Greenleaf Capital determined that the option to purchase the entire developed property is not a derivative financial instrument pursuant to U.S. GAAP. As such, the embedded feature is not required to be bifurcated and the fair value accounting for the embedded feature at each reporting date is not applicable. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
Note 4 — Fair Value Measurements | |||||||||||||||||
The Company records and discloses certain financial assets at their estimated fair value but does not elect the fair value option for the ADC Arrangement and its long-term debt. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels as follows: | |||||||||||||||||
Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities. | |||||||||||||||||
Level 2 - Other inputs that are observable for the asset and liability, either directly or indirectly. | |||||||||||||||||
Level 3 - Inputs that are unobservable. | |||||||||||||||||
The following table presents information about the Company’s financial assets measured at estimated fair value on a recurring basis, the estimated fair values of the real estate investment under the ADC Arrangement, and long-term debt that are reflected in the financial statements at carrying value. The table indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as of September 30, 2014 and December 31, 2013: | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||
As of September 30, 2014 | |||||||||||||||||
Financial Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 304,323 | $ | — | $ | — | $ | 304,323 | |||||||||
Fixed-maturity securities: | |||||||||||||||||
U.S. Treasury and U.S. government agencies | 656 | 708 | — | 1,364 | |||||||||||||
Corporate bonds | 15,880 | 999 | — | 16,879 | |||||||||||||
Commercial mortgage-backed securities | — | 11,531 | — | 11,531 | |||||||||||||
State, municipalities, and political subdivisions | — | 60,913 | — | 60,913 | |||||||||||||
Redeemable preferred stock | 9,490 | — | — | 9,490 | |||||||||||||
Total fixed-maturity securities | 26,026 | 74,151 | — | 100,177 | |||||||||||||
Equity securities | 39,097 | — | — | 39,097 | |||||||||||||
Total available-for-sale securities | 65,123 | 74,151 | — | 139,274 | |||||||||||||
ADC Arrangement classified as real estate investment | — | — | 2,592 | 2,592 | |||||||||||||
Total | $ | 369,446 | $ | 74,151 | $ | 2,592 | $ | 446,189 | |||||||||
Financial Liabilities: | |||||||||||||||||
Long-term debt: | |||||||||||||||||
8% Senior notes | $ | — | $ | 42,343 | $ | — | $ | 42,343 | |||||||||
3.875% Convertible senior notes | — | — | 95,462 | 95,462 | |||||||||||||
Total long-term debt | $ | — | $ | 42,343 | $ | 95,462 | $ | 137,805 | |||||||||
Fair Value Measurements Using | |||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||
As of December 31, 2013 | |||||||||||||||||
Financial Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 293,398 | $ | — | $ | — | $ | 293,398 | |||||||||
Fixed-maturity securities: | |||||||||||||||||
U.S. Treasury and U.S. government agencies | 3,520 | 1,044 | — | 4,564 | |||||||||||||
Corporate bonds | 24,476 | 928 | — | 25,404 | |||||||||||||
Commercial mortgage-backed securities | — | 11,332 | — | 11,332 | |||||||||||||
State, municipalities, and political subdivisions | — | 70,451 | — | 70,451 | |||||||||||||
Redeemable preferred stock | 400 | — | — | 400 | |||||||||||||
Total fixed-maturity securities | 28,396 | 83,755 | — | 112,151 | |||||||||||||
Equity securities | 17,649 | — | — | 17,649 | |||||||||||||
Total available-for-sale securities | 46,045 | 83,755 | — | 129,800 | |||||||||||||
Total | $ | 339,443 | $ | 83,755 | $ | — | $ | 423,198 | |||||||||
Financial Liabilities: | |||||||||||||||||
Long-term debt: | |||||||||||||||||
8% Senior notes | $ | — | $ | 43,390 | $ | — | $ | 43,390 | |||||||||
3.875% Convertible senior notes | — | — | 86,630 | 86,630 | |||||||||||||
Total long-term debt | $ | — | $ | 43,390 | $ | 86,630 | $ | 130,020 | |||||||||
Valuation Methodology | |||||||||||||||||
ADC Arrangement Classified as Real Estate Investment. As described in Note 3 — “Investments” under ADC Arrangement, the ADC Arrangement represents a financing agreement with a purchase option between Greenleaf Capital and a property developer. Based on the characteristics of this ADC Arrangement which are similar to those of an investment, combined with the expected residual profit being greater than 50%, the arrangement is included in real estate investments at its carrying value in the balance sheet. Projected future cash inflows at maturity are discounted using a prevailing borrowing rate to estimate its fair value that relies on Level 3 inputs. | |||||||||||||||||
There were no transfers between Level 1, 2 or 3 during the three and nine months ended September 30, 2014. During the year ended December 31, 2013, $10,684 of municipal bonds was transferred into Level 2 from Level 1. |
Other_Assets
Other Assets | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ||||||||
Other Assets | ' | ||||||||
Note 5 — Other Assets | |||||||||
The following table summarizes the Company’s other assets: | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Benefits receivable related to retrospective reinsurance contracts | $ | 21,734 | $ | 8,815 | |||||
Deferred costs related to retrospective reinsurance contracts | 413 | 194 | |||||||
Deferred offering costs on senior notes issued in 2013 | 3,819 | 4,305 | |||||||
Prepaid expenses | 1,722 | 771 | |||||||
Other | 4,857 | 1,729 | |||||||
Total other assets | $ | 32,545 | $ | 15,814 | |||||
In June 2014, the Company received $1,485 under the terms of one of the retrospective reinsurance contracts, which terminated May 31, 2014. |
LongTerm_Debt
Long-Term Debt | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Long-Term Debt | ' | ||||||||
Note 6 — Long-Term Debt | |||||||||
The following table summarizes the Company’s long-term debt: | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
8% Senior Notes, due January 30, 2020 | $ | 40,250 | $ | 40,250 | |||||
3.875% Convertible Senior Notes, due March 15, 2019* | 88,615 | 86,682 | |||||||
Total long-term debt | $ | 128,865 | $ | 126,932 | |||||
* | net carrying value | ||||||||
For the three months ended September 30, 2014 and 2013, interest expense included the contractual interest coupon, discount amortization and amortization of allocated issuance costs aggregating $2,626 and $847, respectively, the amounts of which included non-cash interest expense of $823 and $42, respectively. For the nine months ended September 30, 2014 and 2013, interest expense of $7,809 and $2,379, respectively, included non-cash interest expense of $2,411 and $116, respectively. As of September 30, 2014, the remaining amortization period of the debt discount was 4.5 years. |
Reinsurance
Reinsurance | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Insurance [Abstract] | ' | ||||||||||||||||
Reinsurance | ' | ||||||||||||||||
Note 7 — Reinsurance | |||||||||||||||||
The Company cedes a portion of its homeowners insurance exposure to other entities under catastrophe excess of loss reinsurance and quota share treaties. The Company remains liable for claims payments in the event that any reinsurer is unable to meet its obligations under the reinsurance agreements. Failure of reinsurers to honor their obligations could result in losses to the Company. The Company evaluates the financial condition of its reinsurers and monitors concentrations of credit risk arising from similar geographic regions, activities or economic characteristics of the reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. The Company contracts with a number of reinsurers to secure its annual reinsurance coverage, which generally becomes effective June 1st each year. The Company purchases reinsurance taking into consideration probable maximum losses and reinsurance market conditions. | |||||||||||||||||
The impact of the catastrophe excess of loss reinsurance and quota share treaties on premiums written and earned is as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Premiums Written: | |||||||||||||||||
Direct | $ | 86,257 | $ | 78,140 | $ | 307,199 | $ | 281,912 | |||||||||
Assumed | (172 | ) | (221 | ) | (1,255 | ) | (2,297 | ) | |||||||||
Gross written | 86,085 | 77,919 | 305,944 | 279,615 | |||||||||||||
Ceded | (27,684 | ) | (28,310 | ) | (83,764 | ) | (74,923 | ) | |||||||||
Net premiums written | $ | 58,401 | $ | 49,609 | $ | 222,180 | $ | 204,692 | |||||||||
Premiums Earned: | |||||||||||||||||
Direct | $ | 85,357 | $ | 75,512 | $ | 245,638 | $ | 193,465 | |||||||||
Assumed | 3,587 | 5,732 | 28,415 | 52,278 | |||||||||||||
Gross earned | 88,944 | 81,244 | 274,053 | 245,743 | |||||||||||||
Ceded | (27,684 | ) | (28,310 | ) | (83,764 | ) | (74,923 | ) | |||||||||
Net premiums earned | $ | 61,260 | $ | 52,934 | $ | 190,289 | $ | 170,820 | |||||||||
During the three and nine months ended September 30, 2014 and 2013, there were no recoveries pertaining to reinsurance contracts that were deducted from losses incurred. At September 30, 2014 and December 31, 2013, prepaid reinsurance premiums related to 28 and 27 reinsurers, respectively, and there were no amounts receivable with respect to reinsurers. Thus, there were no concentrations of credit risk associated with reinsurance receivables and prepaid reinsurance premiums as of September 30, 2014 and December 31, 2013. | |||||||||||||||||
Certain of the reinsurance contracts include retrospective provisions that adjust premiums, increase the amount of future coverage, or result in profit commissions in the event losses are minimal or zero. These adjustments are reflected in the statements of income as net reductions in ceded premiums of $6,512 and $5,484, respectively, for the three months ended September 30, 2014 and 2013 and $17,052 and $6,785, respectively, for the nine months ended September 30, 2014 and 2013. At September 30, 2014 and December 31, 2013, other assets included $22,147 and $9,009, respectively, and prepaid reinsurance premiums included $5,941 and $3,512, respectively, which are related to these adjustments. |
Losses_and_Loss_Adjustment_Exp
Losses and Loss Adjustment Expenses | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Insurance [Abstract] | ' | ||||||||||||||||
Losses and Loss Adjustment Expenses | ' | ||||||||||||||||
Note 8 — Losses and Loss Adjustment Expenses | |||||||||||||||||
The liability for losses and loss adjustment expenses is determined on an individual case basis for all claims reported. The liability also includes amounts for unallocated expenses, anticipated future claim development and losses incurred, but not reported. | |||||||||||||||||
Activity in the liability for unpaid losses and loss adjustment expenses is summarized as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Balance, beginning of period | $ | 43,044 | $ | 44,749 | $ | 43,686 | $ | 41,168 | |||||||||
Incurred related to: | |||||||||||||||||
Current period | 21,643 | 14,851 | 59,205 | 50,213 | |||||||||||||
Prior period | 348 | (362 | ) | (266 | ) | (2,438 | ) | ||||||||||
Total incurred | 21,991 | 14,489 | 58,939 | 47,775 | |||||||||||||
Paid related to: | |||||||||||||||||
Current period | (3,461 | ) | (12,628 | ) | (22,296 | ) | (25,880 | ) | |||||||||
Prior period | (13,920 | ) | (3,086 | ) | (32,675 | ) | (19,539 | ) | |||||||||
Total paid | (17,381 | ) | (15,714 | ) | (54,971 | ) | (45,419 | ) | |||||||||
Balance, end of period | $ | 47,654 | $ | 43,524 | $ | 47,654 | $ | 43,524 | |||||||||
The establishment of loss reserves is an inherently uncertain process and changes in loss reserve estimates are expected as such estimates are subject to the outcome of future events. Changes in estimates, or differences between estimates and amounts ultimately paid, are reflected in the operating results of the period during which such adjustments are made. During the three months ended September 30, 2014, the Company experienced unfavorable development of $348 with respect to its net unpaid losses and loss adjustment expenses established as of June 30, 2014. During the nine months ended September 30, 2014, the Company experienced favorable development of $266 with respect to its net unpaid losses and loss adjustment expenses established as of December 31, 2013. Factors attributable to this favorable development may include a lower severity of claims and reduced frequency of claims. | |||||||||||||||||
The Company writes insurance in the state of Florida, which could be exposed to hurricanes or other natural catastrophes. The occurrence of a major catastrophe could have a significant effect on the Company’s monthly or quarterly results and cause a temporary disruption of the normal operations of the Company. However, the Company is unable to predict the frequency or severity of any such events that may occur in the near term or thereafter. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Note 9 — Income Taxes | |
During the three months ended September 30, 2014 and 2013, the Company recorded approximately $8,723 and $8,266, respectively, of income taxes, which resulted in estimated annual effective tax rates of 38.3% and 38.2%, respectively. During the nine months ended September 30, 2014 and 2013, the Company recorded approximately $29,366 and $31,221, respectively, of income taxes, which resulted in estimated annual effective tax rates of 37.9% and 38.4%, respectively. The slight decrease in the 2014 effective tax rate was attributable to an increase related to the investment income earned on tax-exempt securities. The Company’s estimated annual effective tax rate differs from the statutory federal tax rate due to state and foreign income taxes as well as certain nondeductible and tax-exempt items. Effective October 20, 2014, the Internal Revenue Service notified the Company that the examination of the Company’s 2011 federal income tax return was completed with no change to the Company’s reported tax. In addition, as of April 18, 2014, the Florida Department of Revenue completed an audit of the state income tax returns filed for 2010, 2011, and 2012. The audit resulted in no material changes to the state income taxes originally reported. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||||||||||
Note 10 — Earnings Per Share | |||||||||||||||||||||||||
U.S. GAAP requires the Company to use the two-class method in computing basic earnings per share since holders of the Company’s restricted stock have the right to share in dividends, if declared, equally with common stockholders. These participating securities effect the computation of both basic and diluted earnings per share during periods of net income. | |||||||||||||||||||||||||
A summary of the numerator and denominator of the basic and diluted earnings per common share is presented below: | |||||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||
September 30, 2014 | September 30, 2013 | ||||||||||||||||||||||||
Income | Shares | Per Share | Income | Shares | Per Share | ||||||||||||||||||||
(Numerator) | (Denominator) | Amount | (Numerator) | (Denominator) | Amount | ||||||||||||||||||||
Net income | $ | 14,052 | $ | 13,378 | |||||||||||||||||||||
Less: Preferred stock dividends | — | (22 | ) | ||||||||||||||||||||||
Less: Income attributable to participating securities | (1,024 | ) | (823 | ) | |||||||||||||||||||||
Basic Earnings Per Share: | |||||||||||||||||||||||||
Income allocated to common stockholders | 13,028 | 9,736 | $ | 1.34 | 12,533 | 10,749 | $ | 1.17 | |||||||||||||||||
Effect of Dilutive Securities: | |||||||||||||||||||||||||
Stock options | — | 133 | — | 164 | |||||||||||||||||||||
Convertible preferred stock | — | — | 22 | 165 | |||||||||||||||||||||
Convertible senior notes | 1,090 | 1,649 | — | — | |||||||||||||||||||||
Diluted Earnings Per Share: | |||||||||||||||||||||||||
Income available to common stockholders and assumed conversions | $ | 14,118 | 11,518 | $ | 1.23 | $ | 12,555 | 11,078 | $ | 1.13 | |||||||||||||||
Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 30, 2014 | September 30, 2013 | ||||||||||||||||||||||||
Income | Shares | Per Share | Income | Shares | Per Share | ||||||||||||||||||||
(Numerator) | (Denominator) | Amount | (Numerator) | (Denominator) | Amount | ||||||||||||||||||||
Net income | $ | 48,102 | $ | 50,000 | |||||||||||||||||||||
Less: Preferred stock dividends | 4 | (88 | ) | ||||||||||||||||||||||
Less: Income attributable to participating securities | (3,415 | ) | (2,205 | ) | |||||||||||||||||||||
Basic Earnings Per Share: | |||||||||||||||||||||||||
Income allocated to common stockholders | 44,691 | 9,972 | $ | 4.48 | 47,707 | 10,696 | $ | 4.46 | |||||||||||||||||
Effect of Dilutive Securities: | |||||||||||||||||||||||||
Stock options | — | 139 | — | 162 | |||||||||||||||||||||
Convertible preferred stock | (4 | ) | 27 | 88 | 195 | ||||||||||||||||||||
Convertible senior notes | 3,242 | 1,649 | — | — | |||||||||||||||||||||
Diluted Earnings Per Share: | |||||||||||||||||||||||||
Income available to common stockholders and assumed conversions | $ | 47,929 | 11,787 | $ | 4.07 | $ | 47,795 | 11,053 | $ | 4.32 | |||||||||||||||
Stockholders_Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2014 | |
Equity [Abstract] | ' |
Stockholders' Equity | ' |
Note 11 — Stockholders’ Equity | |
Common Stock | |
Effective March 18, 2014, the Company’s Board of Directors authorized a plan to repurchase up to $40,000 of the Company’s common shares before commissions and fees. The repurchase plan allows the Company to repurchase shares from time to time through March 31, 2015. The shares may be purchased for cash in open market purchases, block transactions and privately negotiated transactions in accordance with applicable federal securities laws. The share repurchase plan may be modified, suspended, terminated or extended by the Company any time without prior notice. During the three and nine months ended September 30, 2014, the Company repurchased and retired a total of 246,578 and 734,924 shares, respectively, at a weighted average price per share of $40.56 and $37.83, respectively, under this authorized repurchase plan. The total costs of shares repurchased, inclusive of fees and commissions, during the three and nine months ended September 30, 2014 were $10,005, or $40.58 per share, and $27,815, or $37.85 per share, respectively. At September 30, 2014, a total of $12,200 is available in connection with this plan. | |
On October 16, 2014, the Company’s Board of Directors declared a quarterly dividend of $0.275 per common share. The dividends are payable on December 19, 2014 to stockholders of record on November 21, 2014. | |
Preferred Stock | |
On February 4, 2014, the Company announced its Board of Directors fixed April 1, 2014 as the cancellation date for the conversion rights on its 7% Series A cumulative convertible preferred stock. The Company later extended the conversion privilege in April 2014. On June 2, 2014, 3,386 shares of Series A Preferred were redeemed at $10 per share. During the nine months ended September 30, 2014, holders of 107,298 shares of Series A Preferred converted their Series A Preferred shares to 107,298 shares of common stock, respectively. As of September 30, 2014, no shares of Series A Preferred were outstanding. |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||
Note 12 — Stock-Based Compensation | |||||||||||||||||
Incentive Plans | |||||||||||||||||
The Company currently has outstanding stock options and restricted stock granted under the 2007 Stock Option and Incentive Plan and the 2012 Omnibus Incentive Plan. Only the 2012 Plan is available for future grants. At September 30, 2014, there were 4,244,115 shares available for grant under the 2012 Plan. | |||||||||||||||||
Stock Options | |||||||||||||||||
Stock options granted and outstanding under the incentive plans vest over periods ranging from immediately vested to five years and are exercisable over the contractual term of ten years. | |||||||||||||||||
A summary of the stock option activity for the three and nine months ended September 30, 2014 and 2013 is as follows (option amounts not in thousands): | |||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||
Options | Average | Average | Intrinsic | ||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | ||||||||||||||||
Term | |||||||||||||||||
Outstanding at January 1, 2014 | 280,000 | $ | 2.91 | 3.9 years | $ | 14,166 | |||||||||||
Exercised | (50,000 | ) | $ | 2.5 | |||||||||||||
Outstanding at March 31, 2014 | 230,000 | $ | 3 | 3.8 years | $ | 7,683 | |||||||||||
Outstanding at June 30, 2014 | 230,000 | $ | 3 | 3.5 years | $ | 8,649 | |||||||||||
Outstanding at September 30, 2014 | 230,000 | $ | 3 | 3.3 years | $ | 7,589 | |||||||||||
Exercisable at September 30, 2014 | 230,000 | $ | 3 | 3.3 years | $ | 7,589 | |||||||||||
Outstanding at January 1, 2013 | 280,000 | $ | 2.91 | 4.9 years | $ | 5,007 | |||||||||||
Outstanding at March 31, 2013 | 280,000 | $ | 2.91 | 4.7 years | $ | 6,816 | |||||||||||
Outstanding at June 30, 2013 | 280,000 | $ | 2.91 | 4.4 years | $ | 7,788 | |||||||||||
Outstanding at September 30, 2013 | 280,000 | $ | 2.91 | 4.2 years | $ | 10,621 | |||||||||||
Exercisable at September 30, 2013 | 270,000 | $ | 2.78 | 4.0 years | $ | 10,276 | |||||||||||
There were no options exercised during the three months ended September 30, 2014 and 2013. The following table summarizes information about options exercised during the nine months ended September 30, 2014 and 2013 (option amounts not in thousands): | |||||||||||||||||
Nine Months Ended | |||||||||||||||||
September 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Options exercised | 50,000 | — | |||||||||||||||
Total intrinsic value of exercised options | $ | 1,970 | — | ||||||||||||||
Fair value of vested stock options | $ | 17 | $ | 17 | |||||||||||||
Tax benefits realized | $ | 603 | — | ||||||||||||||
The Company recognized compensation expense related to stock options, which is included in other operating expenses, of approximately $0 and $5, respectively, for the three months ended September 30, 2014 and 2013 and $6 and $14, respectively, for the nine months ended September 30, 2014 and 2013. At September 30, 2014, there was no unrecognized compensation expense related to stock options. Deferred tax benefits related to stock options for the three and nine months ended September 30, 2014 and 2013 were immaterial. | |||||||||||||||||
Restricted Stock Awards | |||||||||||||||||
From time to time, the Company has granted and may grant restricted stock awards to certain executive officers, other employees and nonemployee directors in connection with their service to the Company. The terms of the Company’s outstanding restricted stock grants may include service, performance and market-based conditions. The fair value of the awards with market-based conditions is determined using a Monte Carlo simulation method, which calculates many potential outcomes for an award and then establishes fair value based on the most likely outcome. The determination of fair value with respect to the awards with only performance or service-based conditions is based on the market value of the Company’s common stock on the grant date. | |||||||||||||||||
Information with respect to the activity of unvested restricted stock awards during the three and nine months ended September 30, 2014 and 2013 is as follows (share amounts not in thousands): | |||||||||||||||||
Number of | Weighted | ||||||||||||||||
Restricted | Average | ||||||||||||||||
Stock | Grant Date | ||||||||||||||||
Awards | Fair Value | ||||||||||||||||
Nonvested at January 1, 2014 | 735,650 | $ | 25.48 | ||||||||||||||
Granted | 98,720 | $ | 48.42 | ||||||||||||||
Vested | (21,825 | ) | $ | 21.56 | |||||||||||||
Forfeited | (505 | ) | $ | 32.2 | |||||||||||||
Nonvested at March 31, 2014 | 812,040 | $ | 28.37 | ||||||||||||||
Vested | (32,000 | ) | $ | 12.95 | |||||||||||||
Forfeited | (2,825 | ) | $ | 43.43 | |||||||||||||
Nonvested at June 30, 2014 | 777,215 | $ | 28.95 | ||||||||||||||
Granted | 10,000 | $ | 37.28 | ||||||||||||||
Vested | (2,000 | ) | $ | 37.68 | |||||||||||||
Forfeited | (5,155 | ) | $ | 39.85 | |||||||||||||
Nonvested at September 30, 2014 | 780,060 | $ | 28.96 | ||||||||||||||
Nonvested at January 1, 2013 | 246,320 | $ | 14.54 | ||||||||||||||
Forfeited | (920 | ) | $ | 21.56 | |||||||||||||
Nonvested at March 31, 2013 | 245,400 | $ | 14.51 | ||||||||||||||
Granted | 544,000 | $ | 26.58 | ||||||||||||||
Vested | (29,000 | ) | $ | 13.06 | |||||||||||||
Forfeited | (28,160 | ) | $ | 14.68 | |||||||||||||
Nonvested at June 30, 2013 | 732,240 | $ | 23.53 | ||||||||||||||
Granted | 20,000 | $ | 32.85 | ||||||||||||||
Vested | (56,000 | ) | $ | 11.57 | |||||||||||||
Forfeited | (180 | ) | $ | 21.56 | |||||||||||||
Nonvested at September 30, 2013 | 696,060 | $ | 24.75 | ||||||||||||||
The Company recognized compensation expense related to restricted stock, which is included in other operating expenses, of $2,267 and $1,939, respectively, for the three months ended September 30, 2014 and 2013 and $6,594 and $3,404, respectively, for the nine months ended September 30, 2014 and 2013. At September 30, 2014 and 2013, there was approximately $11,947 and $14,078, respectively, of total unrecognized compensation expense related to nonvested restricted stock arrangements. The Company expects to recognize the remaining compensation expense over a weighted-average period of 26 months. The following table summarizes information about deferred tax benefits recognized and tax benefits realized related to restricted stock awards as well as their paid dividends, and the fair value of vested restricted stock for the three and nine months ended September 30, 2014 and 2013: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Deferred tax benefits recognized | $ | 875 | $ | 748 | $ | 2,544 | $ | 1,313 | |||||||||
Tax benefits realized | $ | 80 | $ | 612 | $ | 781 | $ | 892 | |||||||||
Fair value of vested restricted stock | $ | 75 | $ | 648 | $ | 960 | $ | 1,027 | |||||||||
The following presents assumptions used in a Monte Carlo simulation model to determine the fair value of the awards with market-based conditions: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Expected dividends per share | $1.10 | $0.90 | $1.10 | $0.90 | |||||||||||||
Expected volatility | 42.1 – 42.6% | 41.5 – 48.7% | 42.1 – 42.6% | 41.5 – 51.6% | |||||||||||||
Risk-free interest rate | 0.1 – 1.5% | 0.0 – 1.1% | 0.1 – 1.5% | 0.0 – 1.1% | |||||||||||||
Estimated cost of capital | 11.50% | 9.90% | 11.50% | 9.3 – 9.9% | |||||||||||||
Expected life (in years) | 4 | 4 | 4 | 4.00 – 6.00 |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Note 13 — Commitments and Contingencies | |
Financing Commitment | |
As described in Note 3 — “Investments” under ADC Arrangement, the Company is contractually committed to provide financing for a real estate acquisition, development and construction project. At September 30, 2014, $7,177 of the available commitment was unused by the property developer. | |
Premium Tax | |
In September 2013, the Company received a notice of intent to make audit adjustments from the Florida Department of Revenue in connection with the Department’s audit of the Company’s premium tax returns for the three-year period ended December 31, 2012. The auditor’s proposed adjustments primarily relate to the disallowance of the entire amount of $1,754 in Florida salary credits applicable to that period. The proposed adjustment, which includes interest through September 10, 2013, approximates $1,913. Management has held discussions with the FDR staff and continues working with the Department to resolve this matter. The Company is confident in the merits of its position in claiming the Florida salary credits and intends to vigorously defend its position. As such, and based on the current status and expected final resolution, the Company has no amount accrued as of September 30, 2014 related to this contingency. |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
Note 14 — Related Party Transactions | |
Claddaugh Casualty Insurance Company, Ltd. (“Claddaugh”), the Company’s Bermuda domiciled captive reinsurer has reinsurance treaties with Oxbridge Reinsurance Limited (“Oxbridge”) whereby a portion of the business assumed from the Company’s insurance subsidiary, Homeowners Choice Property & Casualty Insurance Company, Inc. (“HCPCI”), is ceded by Claddaugh to Oxbridge. With respect to the period from June 1, 2013 through May 31, 2014, Oxbridge assumed $10,100 of the total covered exposure for approximately $4,900 in premiums. With respect to the period from June 1, 2014 through May 31, 2015, Oxbridge assumed $17,800 of the total covered exposure for approximately $4,935 in premiums. In addition, HCPCI has a reinsurance treaty with Oxbridge for the period from June 1, 2014 through May 31, 2015 under which Oxbridge assumed $9,000 of the total covered exposure for approximately $1,350 in premiums. The premiums charged by Oxbridge are at rates which management believes to be competitive with market rates available to Claddaugh. Oxbridge has deposited funds into trust accounts to satisfy certain collateral requirements under its reinsurance contracts with HCPCI and Claddaugh. Trust assets may be withdrawn by the trust beneficiary, which is either HCPCI or Claddaugh, in the event amounts are due under the Oxbridge reinsurance agreements. Among the Oxbridge shareholders are Paresh Patel, the Company’s chief executive officer, who is also chairman of the board of directors for Oxbridge, and members of his immediate family and three of the Company’s non-employee directors including Sanjay Madhu who serves as Oxbridge’s president and chief executive officer. | |
Prior to June 1, 2014, Claddaugh also had one reinsurance treaty with Moksha Re SPC Ltd. and multiple capital partners whereby a portion of the business assumed from HCPCI was ceded by Claddaugh to Moksha. With respect to the period from June 1, 2013 through May 31, 2014, Moksha assumed approximately $15,400 of the total covered exposure for approximately $4,300 in premiums, a rate which management believes to be competitive with market rates available to Claddaugh. The $4,300 premium was fully paid by Claddaugh on June 27, 2013. Moksha deposited funds into a trust account to satisfy certain collateral requirements under its reinsurance contract with Claddaugh. This contract also contained retrospective provisions resulting in a profit commission of $1,485, which was received by the Company in June 2014. Among the Moksha capital partner participants are the Company’s chief executive officer, Paresh Patel, and certain of his immediate family members and Sanjay Madhu, one of the Company’s non-employee directors. This agreement terminated effective May 31, 2014 and has not been renewed. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The accompanying unaudited, consolidated financial statements for HCI Group, Inc. and its subsidiaries (collectively, the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, and the Securities and Exchange Commission (“SEC”) rules for interim financial reporting. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to such rules and regulations. However, in the opinion of management, the accompanying financial statements reflect all normal recurring adjustments necessary to present fairly the Company’s financial position as of September 30, 2014 and the results of operations and cash flows for the periods presented. The results of operations for the interim periods presented are not necessarily indicative of the results of operations to be expected for any subsequent interim period or for the fiscal year ending December 31, 2014. The accompanying unaudited consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2013 included in the Company’s Form 10-K, which was filed with the SEC on March 12, 2014. | |
In preparing the interim unaudited consolidated financial statements, management was required to make certain judgments, assumptions, and estimates that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures at the financial reporting date and throughout the periods being reported upon. Certain of the estimates result from judgments that can be subjective and complex and consequently actual results may differ from these estimates. | |
Material estimates that are particularly susceptible to significant change in the near term are related to the Company’s losses and loss adjustment expenses, which include amounts estimated for claims incurred but not yet reported. The Company uses various assumptions and actuarial data it believes to be reasonable under the circumstances to make these estimates. In addition, accounting policies specific to reinsurance with retrospective provisions, deferred income taxes, and stock-based compensation expense involve significant judgments and estimates material to the Company’s consolidated financial statements. | |
All significant intercompany balances and transactions have been eliminated. | |
Acquisition, Development and Construction Loan Arrangement | ' |
Acquisition, Development and Construction Loan Arrangement | |
The Company has an acquisition, development and construction loan arrangement (“ADC Arrangement”) under which it provides financing to a property developer for the acquisition, development, and construction of a retail shopping center. The Company also expects to participate in the residual profit resulting from the ultimate sale or other use of the property. Classification and accounting for the ADC Arrangement as a loan, an investment in real estate, or a joint venture is determined by the Company’s evaluation of the characteristics and the risks and rewards of the ADC Arrangement. If the Company expects to receive more than 50% of the residual profit from the ADC Arrangement and it has characteristics similar to a real estate investment, the costs of the real estate project will be capitalized and interest will be recognized in net investment income (see Note 3 — “Investments”). | |
In addition, the Company considers any rights or features embedded in the ADC Arrangement that may require bifurcation and derivative accounting. Due to its participation in the expected residual profit, which is deemed a variable interest, the Company evaluates its involvements in the design and essential activities of the entity to which the Company provides financing for possible consolidation as the primary beneficiary under the Variable Interest Model prescribed by the Financial Accounting Standards Board (“FASB”). | |
Any subsequent changes in terms, rights or the developer’s equity interest that may result in a reclassification or a change in the accounting treatment of the ADC Arrangement will be evaluated. The Company will continually assess the collectability of principal, accrued interest and fees. | |
Investment in Joint Venture | ' |
Investment in Joint Venture | |
The Company has a 90% equity interest in a joint venture that was organized to acquire and develop land on which the joint venture partners plan to construct a retail shopping center (see Note 3 — “Investments”) for lease or for sale. The joint venture was determined to be a variable interest entity as it lacks sufficient equity to finance its activities without additional subordinated financial support. Despite having a majority equity interest, the Company does not have a controlling financial interest and, accordingly, is not required to consolidate the joint venture as its primary beneficiary under the Variable Interest Model. | |
In addition, the joint venture agreement contains an embedded purchase option the Company can exercise to purchase the entire interest of the other party to the joint venture after the expiration of a restricted period. The Company determined the embedded purchase option is not required to be bifurcated and fair value accounting at each reporting date is not applicable. Due to the lack of a controlling financial interest and until the embedded purchase option becomes exercisable, the Company uses the equity method rather than consolidation to account for its investment in the joint venture. |
Investments_Tables
Investments (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||||||||||
Summary of Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Value of Available-for-Sale Securities | ' | ||||||||||||||||||||||||
At September 30, 2014 and December 31, 2013, the cost or amortized cost, gross unrealized gains and losses, and estimated fair value of the Company’s available-for-sale securities by security type were as follows: | |||||||||||||||||||||||||
Cost or | Gross | Gross | Estimated | ||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Cost | Gain | Loss | Value | ||||||||||||||||||||||
As of September 30, 2014 | |||||||||||||||||||||||||
Fixed-maturity securities | |||||||||||||||||||||||||
U.S. Treasury and U.S. government agencies | $ | 1,330 | $ | 34 | $ | — | $ | 1,364 | |||||||||||||||||
Corporate bonds | 17,020 | 16 | (157 | ) | 16,879 | ||||||||||||||||||||
Commercial mortgage-backed securities | 11,163 | 408 | (40 | ) | 11,531 | ||||||||||||||||||||
State, municipalities, and political subdivisions | 59,796 | 1,158 | (41 | ) | 60,913 | ||||||||||||||||||||
Redeemable preferred stock | 9,434 | 100 | (44 | ) | 9,490 | ||||||||||||||||||||
Total | 98,743 | 1,716 | (282 | ) | 100,177 | ||||||||||||||||||||
Equity securities | 38,856 | 1,444 | (1,203 | ) | 39,097 | ||||||||||||||||||||
Total available-for-sale securities | $ | 137,599 | $ | 3,160 | $ | (1,485 | ) | $ | 139,274 | ||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Fixed-maturity securities | |||||||||||||||||||||||||
U.S. Treasury and U.S. government agencies | $ | 4,549 | $ | 37 | $ | (22 | ) | $ | 4,564 | ||||||||||||||||
Corporate bonds | 25,139 | 484 | (219 | ) | 25,404 | ||||||||||||||||||||
Commercial mortgage-backed securities | 10,929 | 499 | (96 | ) | 11,332 | ||||||||||||||||||||
State, municipalities, and political subdivisions | 69,715 | 917 | (181 | ) | 70,451 | ||||||||||||||||||||
Redeemable preferred stock | 406 | 5 | (11 | ) | 400 | ||||||||||||||||||||
Total | 110,738 | 1,942 | (529 | ) | 112,151 | ||||||||||||||||||||
Equity securities | 17,248 | 920 | (519 | ) | 17,649 | ||||||||||||||||||||
Total available-for-sale securities | $ | 127,986 | $ | 2,862 | $ | (1,048 | ) | $ | 129,800 | ||||||||||||||||
Scheduled Contractual Maturities of Fixed-Maturity Securities | ' | ||||||||||||||||||||||||
The scheduled contractual maturities of fixed-maturity securities as of September 30, 2014 and December 31, 2013 are as follows: | |||||||||||||||||||||||||
Amortized | Estimated | ||||||||||||||||||||||||
Cost | Fair Value | ||||||||||||||||||||||||
As of September 30, 2014 | |||||||||||||||||||||||||
Available-for-sale | |||||||||||||||||||||||||
Due in one year or less | $ | 1,518 | $ | 1,520 | |||||||||||||||||||||
Due after one year through five years | 35,153 | 35,313 | |||||||||||||||||||||||
Due after five years through ten years | 39,811 | 40,365 | |||||||||||||||||||||||
Due after ten years | 11,098 | 11,448 | |||||||||||||||||||||||
Commercial mortgage-backed securities | 11,163 | 11,531 | |||||||||||||||||||||||
$ | 98,743 | $ | 100,177 | ||||||||||||||||||||||
Amortized | Estimated | ||||||||||||||||||||||||
Cost | Fair Value | ||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Available-for-sale | |||||||||||||||||||||||||
Due in one year or less | $ | 2,366 | $ | 2,381 | |||||||||||||||||||||
Due after one year through five years | 24,829 | 25,145 | |||||||||||||||||||||||
Due after five years through ten years | 59,083 | 59,582 | |||||||||||||||||||||||
Due after ten years | 13,531 | 13,711 | |||||||||||||||||||||||
Commercial mortgage-backed securities | 10,929 | 11,332 | |||||||||||||||||||||||
$ | 110,738 | $ | 112,151 | ||||||||||||||||||||||
Summary of Proceeds Received and Gross Realized Gains and Losses from Sales of Available for Sale Securities | ' | ||||||||||||||||||||||||
Proceeds received, and the gross realized gains and losses from sales of available-for-sale securities, for the three and nine months ended September 30, 2014 and 2013 were as follows: | |||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||
Realized | Realized | ||||||||||||||||||||||||
Proceeds | Gains | Losses | |||||||||||||||||||||||
Three months ended September 30, 2014 | |||||||||||||||||||||||||
Fixed-maturity securities | $ | 47,557 | $ | 2,759 | $ | — | |||||||||||||||||||
Equity securities | $ | 3,302 | $ | 623 | $ | (88 | ) | ||||||||||||||||||
Three months ended September 30, 2013 | |||||||||||||||||||||||||
Fixed-maturity securities | $ | 390 | $ | 58 | $ | (1 | ) | ||||||||||||||||||
Equity securities | $ | 708 | $ | 20 | $ | (46 | ) | ||||||||||||||||||
Nine months ended September 30, 2014 | |||||||||||||||||||||||||
Fixed-maturity securities | $ | 67,519 | $ | 3,623 | $ | (9 | ) | ||||||||||||||||||
Equity securities | $ | 9,232 | $ | 1,131 | $ | (280 | ) | ||||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||||||||||
Fixed-maturity securities | $ | 1,749 | $ | 92 | $ | (4 | ) | ||||||||||||||||||
Equity securities | $ | 2,021 | $ | 84 | $ | (129 | ) | ||||||||||||||||||
Summary of Securities with Gross Unrealized Loss Positions Aggregated by Investment Category | ' | ||||||||||||||||||||||||
Securities with gross unrealized loss positions at September 30, 2014 and December 31, 2013, aggregated by investment category and length of time the individual securities have been in a continuous loss position, are as follows: | |||||||||||||||||||||||||
Less Than Twelve | Twelve Months or | Total | |||||||||||||||||||||||
Months | Greater | ||||||||||||||||||||||||
Gross | Estimated | Gross | Estimated | Gross | Estimated | ||||||||||||||||||||
Unrealized | Fair | Unrealized | Fair | Unrealized | Fair | ||||||||||||||||||||
As of September 30, 2014 | Loss | Value | Loss | Value | Loss | Value | |||||||||||||||||||
Fixed-maturity securities | |||||||||||||||||||||||||
Corporate bonds | $ | (151 | ) | $ | 11,164 | $ | (6 | ) | $ | 1,224 | $ | (157 | ) | $ | 12,388 | ||||||||||
Commercial mortgage-backed securities | (5 | ) | 283 | (35 | ) | 1,377 | (40 | ) | 1,660 | ||||||||||||||||
State, municipalities, and political subdivisions | (15 | ) | 4,085 | (26 | ) | 196 | (41 | ) | 4,281 | ||||||||||||||||
Redeemable preferred stock | (44 | ) | 5,239 | — | — | (44 | ) | 5,239 | |||||||||||||||||
Total fixed-maturity securities | (215 | ) | 20,771 | (67 | ) | 2,797 | (282 | ) | 23,568 | ||||||||||||||||
Equity securities | (980 | ) | 19,385 | (223 | ) | 1,728 | (1,203 | ) | 21,113 | ||||||||||||||||
Total available-for-sale securities | $ | (1,195 | ) | $ | 40,156 | $ | (290 | ) | $ | 4,525 | $ | (1,485 | ) | $ | 44,681 | ||||||||||
Less Than Twelve | Twelve Months or | Total | |||||||||||||||||||||||
Months | Greater | ||||||||||||||||||||||||
Gross | Estimated | Gross | Estimated | Gross | Estimated | ||||||||||||||||||||
Unrealized | Fair | Unrealized | Fair | Unrealized | Fair | ||||||||||||||||||||
As of December 31, 2013 | Loss | Value | Loss | Value | Loss | Value | |||||||||||||||||||
Fixed-maturity securities | |||||||||||||||||||||||||
U.S. Treasury and U.S. government agencies | $ | (22 | ) | $ | 3,291 | $ | — | $ | — | $ | (22 | ) | $ | 3,291 | |||||||||||
Corporate bonds | (212 | ) | 9,502 | (7 | ) | 230 | (219 | ) | 9,732 | ||||||||||||||||
Commercial mortgage-backed securities | (96 | ) | 2,179 | — | — | (96 | ) | 2,179 | |||||||||||||||||
State, municipalities, and political subdivisions | (181 | ) | 20,233 | — | — | (181 | ) | 20,233 | |||||||||||||||||
Redeemable preferred stock | (11 | ) | 239 | — | — | (11 | ) | 239 | |||||||||||||||||
Total fixed-maturity securities | (522 | ) | 35,444 | (7 | ) | 230 | (529 | ) | 35,674 | ||||||||||||||||
Equity securities | (273 | ) | 10,742 | (246 | ) | 1,069 | (519 | ) | 11,811 | ||||||||||||||||
Total available-for-sale securities | $ | (795 | ) | $ | 46,186 | $ | (253 | ) | $ | 1,299 | $ | (1,048 | ) | $ | 47,485 | ||||||||||
Summary of Operating Results and Financial Position | ' | ||||||||||||||||||||||||
The following tables provide summarized operating results and the financial position of FMJV: | |||||||||||||||||||||||||
Three and Nine Months | |||||||||||||||||||||||||
Ended September 30, 2014 | |||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
Operating results: | |||||||||||||||||||||||||
Revenue | $ | — | |||||||||||||||||||||||
Operating expenses | 25 | ||||||||||||||||||||||||
Net loss | $ | (25 | ) | ||||||||||||||||||||||
Melbourne FMA’s share of net loss* | $ | 22 | |||||||||||||||||||||||
* | Included in other operating expenses in the Company’s consolidated statements of income. | ||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
Balance Sheet: | |||||||||||||||||||||||||
Construction in progress - real estate | $ | 3,220 | |||||||||||||||||||||||
Cash | 1,880 | ||||||||||||||||||||||||
Total assets | $ | 5,100 | |||||||||||||||||||||||
Other liabilities | 125 | ||||||||||||||||||||||||
Members’ capital | 4,975 | ||||||||||||||||||||||||
Total liabilities and members’ capital | $ | 5,100 | |||||||||||||||||||||||
Investment in joint venture, at equity | $ | 4,478 | |||||||||||||||||||||||
Summary of Real Estate Investment | ' | ||||||||||||||||||||||||
Real estate investments consist of the following as of September 30, 2014 and December 31, 2013: | |||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Land | $ | 11,476 | $ | 11,299 | |||||||||||||||||||||
Land improvements | 1,399 | 1,351 | |||||||||||||||||||||||
Buildings | 3,097 | 3,022 | |||||||||||||||||||||||
Other | 1,317 | 1,262 | |||||||||||||||||||||||
Total, at cost | 17,289 | 16,934 | |||||||||||||||||||||||
Less: accumulated depreciation and amortization | (1,003 | ) | (706 | ) | |||||||||||||||||||||
Real estate, net | 16,286 | 16,228 | |||||||||||||||||||||||
ADC Arrangement classified as real estate investment | 2,652 | — | |||||||||||||||||||||||
Real estate investments | $ | 18,938 | $ | 16,228 | |||||||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Available-for-Sale Securities Measured at Fair Value | ' | ||||||||||||||||
The table indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as of September 30, 2014 and December 31, 2013: | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||
As of September 30, 2014 | |||||||||||||||||
Financial Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 304,323 | $ | — | $ | — | $ | 304,323 | |||||||||
Fixed-maturity securities: | |||||||||||||||||
U.S. Treasury and U.S. government agencies | 656 | 708 | — | 1,364 | |||||||||||||
Corporate bonds | 15,880 | 999 | — | 16,879 | |||||||||||||
Commercial mortgage-backed securities | — | 11,531 | — | 11,531 | |||||||||||||
State, municipalities, and political subdivisions | — | 60,913 | — | 60,913 | |||||||||||||
Redeemable preferred stock | 9,490 | — | — | 9,490 | |||||||||||||
Total fixed-maturity securities | 26,026 | 74,151 | — | 100,177 | |||||||||||||
Equity securities | 39,097 | — | — | 39,097 | |||||||||||||
Total available-for-sale securities | 65,123 | 74,151 | — | 139,274 | |||||||||||||
ADC Arrangement classified as real estate investment | — | — | 2,592 | 2,592 | |||||||||||||
Total | $ | 369,446 | $ | 74,151 | $ | 2,592 | $ | 446,189 | |||||||||
Financial Liabilities: | |||||||||||||||||
Long-term debt: | |||||||||||||||||
8% Senior notes | $ | — | $ | 42,343 | $ | — | $ | 42,343 | |||||||||
3.875% Convertible senior notes | — | — | 95,462 | 95,462 | |||||||||||||
Total long-term debt | $ | — | $ | 42,343 | $ | 95,462 | $ | 137,805 | |||||||||
Fair Value Measurements Using | |||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||
As of December 31, 2013 | |||||||||||||||||
Financial Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 293,398 | $ | — | $ | — | $ | 293,398 | |||||||||
Fixed-maturity securities: | |||||||||||||||||
U.S. Treasury and U.S. government agencies | 3,520 | 1,044 | — | 4,564 | |||||||||||||
Corporate bonds | 24,476 | 928 | — | 25,404 | |||||||||||||
Commercial mortgage-backed securities | — | 11,332 | — | 11,332 | |||||||||||||
State, municipalities, and political subdivisions | — | 70,451 | — | 70,451 | |||||||||||||
Redeemable preferred stock | 400 | — | — | 400 | |||||||||||||
Total fixed-maturity securities | 28,396 | 83,755 | — | 112,151 | |||||||||||||
Equity securities | 17,649 | — | — | 17,649 | |||||||||||||
Total available-for-sale securities | 46,045 | 83,755 | — | 129,800 | |||||||||||||
Total | $ | 339,443 | $ | 83,755 | $ | — | $ | 423,198 | |||||||||
Financial Liabilities: | |||||||||||||||||
Long-term debt: | |||||||||||||||||
8% Senior notes | $ | — | $ | 43,390 | $ | — | $ | 43,390 | |||||||||
3.875% Convertible senior notes | — | — | 86,630 | 86,630 | |||||||||||||
Total long-term debt | $ | — | $ | 43,390 | $ | 86,630 | $ | 130,020 |
Other_Assets_Tables
Other Assets (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ||||||||
Summary of Other Assets | ' | ||||||||
The following table summarizes the Company’s other assets: | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Benefits receivable related to retrospective reinsurance contracts | $ | 21,734 | $ | 8,815 | |||||
Deferred costs related to retrospective reinsurance contracts | 413 | 194 | |||||||
Deferred offering costs on senior notes issued in 2013 | 3,819 | 4,305 | |||||||
Prepaid expenses | 1,722 | 771 | |||||||
Other | 4,857 | 1,729 | |||||||
Total other assets | $ | 32,545 | $ | 15,814 |
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Summary of Long-term Debt | ' | ||||||||
The following table summarizes the Company’s long-term debt: | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
8% Senior Notes, due January 30, 2020 | $ | 40,250 | $ | 40,250 | |||||
3.875% Convertible Senior Notes, due March 15, 2019* | 88,615 | 86,682 | |||||||
Total long-term debt | $ | 128,865 | $ | 126,932 | |||||
* | net carrying value |
Reinsurance_Tables
Reinsurance (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Insurance [Abstract] | ' | ||||||||||||||||
Impact of Catastrophe Excess of Loss Reinsurance and Quota Share Treaties on Premiums Written and Earned | ' | ||||||||||||||||
The impact of the catastrophe excess of loss reinsurance and quota share treaties on premiums written and earned is as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Premiums Written: | |||||||||||||||||
Direct | $ | 86,257 | $ | 78,140 | $ | 307,199 | $ | 281,912 | |||||||||
Assumed | (172 | ) | (221 | ) | (1,255 | ) | (2,297 | ) | |||||||||
Gross written | 86,085 | 77,919 | 305,944 | 279,615 | |||||||||||||
Ceded | (27,684 | ) | (28,310 | ) | (83,764 | ) | (74,923 | ) | |||||||||
Net premiums written | $ | 58,401 | $ | 49,609 | $ | 222,180 | $ | 204,692 | |||||||||
Premiums Earned: | |||||||||||||||||
Direct | $ | 85,357 | $ | 75,512 | $ | 245,638 | $ | 193,465 | |||||||||
Assumed | 3,587 | 5,732 | 28,415 | 52,278 | |||||||||||||
Gross earned | 88,944 | 81,244 | 274,053 | 245,743 | |||||||||||||
Ceded | (27,684 | ) | (28,310 | ) | (83,764 | ) | (74,923 | ) | |||||||||
Net premiums earned | $ | 61,260 | $ | 52,934 | $ | 190,289 | $ | 170,820 |
Losses_and_Loss_Adjustment_Exp1
Losses and Loss Adjustment Expenses (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Insurance [Abstract] | ' | ||||||||||||||||
Liability for Unpaid Losses and Loss Adjustment Expenses | ' | ||||||||||||||||
Activity in the liability for unpaid losses and loss adjustment expenses is summarized as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Balance, beginning of period | $ | 43,044 | $ | 44,749 | $ | 43,686 | $ | 41,168 | |||||||||
Incurred related to: | |||||||||||||||||
Current period | 21,643 | 14,851 | 59,205 | 50,213 | |||||||||||||
Prior period | 348 | (362 | ) | (266 | ) | (2,438 | ) | ||||||||||
Total incurred | 21,991 | 14,489 | 58,939 | 47,775 | |||||||||||||
Paid related to: | |||||||||||||||||
Current period | (3,461 | ) | (12,628 | ) | (22,296 | ) | (25,880 | ) | |||||||||
Prior period | (13,920 | ) | (3,086 | ) | (32,675 | ) | (19,539 | ) | |||||||||
Total paid | (17,381 | ) | (15,714 | ) | (54,971 | ) | (45,419 | ) | |||||||||
Balance, end of period | $ | 47,654 | $ | 43,524 | $ | 47,654 | $ | 43,524 | |||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||||||||||
Summary of Numerator and Denominator of Basic and Diluted Earnings Per Common Share | ' | ||||||||||||||||||||||||
A summary of the numerator and denominator of the basic and diluted earnings per common share is presented below: | |||||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||
September 30, 2014 | September 30, 2013 | ||||||||||||||||||||||||
Income | Shares | Per Share | Income | Shares | Per Share | ||||||||||||||||||||
(Numerator) | (Denominator) | Amount | (Numerator) | (Denominator) | Amount | ||||||||||||||||||||
Net income | $ | 14,052 | $ | 13,378 | |||||||||||||||||||||
Less: Preferred stock dividends | — | (22 | ) | ||||||||||||||||||||||
Less: Income attributable to participating securities | (1,024 | ) | (823 | ) | |||||||||||||||||||||
Basic Earnings Per Share: | |||||||||||||||||||||||||
Income allocated to common stockholders | 13,028 | 9,736 | $ | 1.34 | 12,533 | 10,749 | $ | 1.17 | |||||||||||||||||
Effect of Dilutive Securities: | |||||||||||||||||||||||||
Stock options | — | 133 | — | 164 | |||||||||||||||||||||
Convertible preferred stock | — | — | 22 | 165 | |||||||||||||||||||||
Convertible senior notes | 1,090 | 1,649 | — | — | |||||||||||||||||||||
Diluted Earnings Per Share: | |||||||||||||||||||||||||
Income available to common stockholders and assumed conversions | $ | 14,118 | 11,518 | $ | 1.23 | $ | 12,555 | 11,078 | $ | 1.13 | |||||||||||||||
Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 30, 2014 | September 30, 2013 | ||||||||||||||||||||||||
Income | Shares | Per Share | Income | Shares | Per Share | ||||||||||||||||||||
(Numerator) | (Denominator) | Amount | (Numerator) | (Denominator) | Amount | ||||||||||||||||||||
Net income | $ | 48,102 | $ | 50,000 | |||||||||||||||||||||
Less: Preferred stock dividends | 4 | (88 | ) | ||||||||||||||||||||||
Less: Income attributable to participating securities | (3,415 | ) | (2,205 | ) | |||||||||||||||||||||
Basic Earnings Per Share: | |||||||||||||||||||||||||
Income allocated to common stockholders | 44,691 | 9,972 | $ | 4.48 | 47,707 | 10,696 | $ | 4.46 | |||||||||||||||||
Effect of Dilutive Securities: | |||||||||||||||||||||||||
Stock options | — | 139 | — | 162 | |||||||||||||||||||||
Convertible preferred stock | (4 | ) | 27 | 88 | 195 | ||||||||||||||||||||
Convertible senior notes | 3,242 | 1,649 | — | — | |||||||||||||||||||||
Diluted Earnings Per Share: | |||||||||||||||||||||||||
Income available to common stockholders and assumed conversions | $ | 47,929 | 11,787 | $ | 4.07 | $ | 47,795 | 11,053 | $ | 4.32 |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Summary of Company's Stock Option Plan Activity | ' | ||||||||||||||||
A summary of the stock option activity for the three and nine months ended September 30, 2014 and 2013 is as follows (option amounts not in thousands): | |||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||
Options | Average | Average | Intrinsic | ||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | ||||||||||||||||
Term | |||||||||||||||||
Outstanding at January 1, 2014 | 280,000 | $ | 2.91 | 3.9 years | $ | 14,166 | |||||||||||
Exercised | (50,000 | ) | $ | 2.5 | |||||||||||||
Outstanding at March 31, 2014 | 230,000 | $ | 3 | 3.8 years | $ | 7,683 | |||||||||||
Outstanding at June 30, 2014 | 230,000 | $ | 3 | 3.5 years | $ | 8,649 | |||||||||||
Outstanding at September 30, 2014 | 230,000 | $ | 3 | 3.3 years | $ | 7,589 | |||||||||||
Exercisable at September 30, 2014 | 230,000 | $ | 3 | 3.3 years | $ | 7,589 | |||||||||||
Outstanding at January 1, 2013 | 280,000 | $ | 2.91 | 4.9 years | $ | 5,007 | |||||||||||
Outstanding at March 31, 2013 | 280,000 | $ | 2.91 | 4.7 years | $ | 6,816 | |||||||||||
Outstanding at June 30, 2013 | 280,000 | $ | 2.91 | 4.4 years | $ | 7,788 | |||||||||||
Outstanding at September 30, 2013 | 280,000 | $ | 2.91 | 4.2 years | $ | 10,621 | |||||||||||
Exercisable at September 30, 2013 | 270,000 | $ | 2.78 | 4.0 years | $ | 10,276 | |||||||||||
Information about Options Exercised | ' | ||||||||||||||||
The following table summarizes information about options exercised during the nine months ended September 30, 2014 and 2013 (option amounts not in thousands): | |||||||||||||||||
Nine Months Ended | |||||||||||||||||
September 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Options exercised | 50,000 | — | |||||||||||||||
Total intrinsic value of exercised options | $ | 1,970 | — | ||||||||||||||
Fair value of vested stock options | $ | 17 | $ | 17 | |||||||||||||
Tax benefits realized | $ | 603 | — | ||||||||||||||
Information with Respect to Unvested Restricted Stock Awards Stock Option and Incentive Plan | ' | ||||||||||||||||
Information with respect to the activity of unvested restricted stock awards during the three and nine months ended September 30, 2014 and 2013 is as follows (share amounts not in thousands): | |||||||||||||||||
Number of | Weighted | ||||||||||||||||
Restricted | Average | ||||||||||||||||
Stock | Grant Date | ||||||||||||||||
Awards | Fair Value | ||||||||||||||||
Nonvested at January 1, 2014 | 735,650 | $ | 25.48 | ||||||||||||||
Granted | 98,720 | $ | 48.42 | ||||||||||||||
Vested | (21,825 | ) | $ | 21.56 | |||||||||||||
Forfeited | (505 | ) | $ | 32.2 | |||||||||||||
Nonvested at March 31, 2014 | 812,040 | $ | 28.37 | ||||||||||||||
Vested | (32,000 | ) | $ | 12.95 | |||||||||||||
Forfeited | (2,825 | ) | $ | 43.43 | |||||||||||||
Nonvested at June 30, 2014 | 777,215 | $ | 28.95 | ||||||||||||||
Granted | 10,000 | $ | 37.28 | ||||||||||||||
Vested | (2,000 | ) | $ | 37.68 | |||||||||||||
Forfeited | (5,155 | ) | $ | 39.85 | |||||||||||||
Nonvested at September 30, 2014 | 780,060 | $ | 28.96 | ||||||||||||||
Nonvested at January 1, 2013 | 246,320 | $ | 14.54 | ||||||||||||||
Forfeited | (920 | ) | $ | 21.56 | |||||||||||||
Nonvested at March 31, 2013 | 245,400 | $ | 14.51 | ||||||||||||||
Granted | 544,000 | $ | 26.58 | ||||||||||||||
Vested | (29,000 | ) | $ | 13.06 | |||||||||||||
Forfeited | (28,160 | ) | $ | 14.68 | |||||||||||||
Nonvested at June 30, 2013 | 732,240 | $ | 23.53 | ||||||||||||||
Granted | 20,000 | $ | 32.85 | ||||||||||||||
Vested | (56,000 | ) | $ | 11.57 | |||||||||||||
Forfeited | (180 | ) | $ | 21.56 | |||||||||||||
Nonvested at September 30, 2013 | 696,060 | $ | 24.75 | ||||||||||||||
Information about Deferred Tax Benefits Recognized Related to Restricted Stock Awards, Paid Dividends and the Fair Value of Vested Restricted Stock | ' | ||||||||||||||||
The following table summarizes information about deferred tax benefits recognized and tax benefits realized related to restricted stock awards as well as their paid dividends, and the fair value of vested restricted stock for the three and nine months ended September 30, 2014 and 2013: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Deferred tax benefits recognized | $ | 875 | $ | 748 | $ | 2,544 | $ | 1,313 | |||||||||
Tax benefits realized | $ | 80 | $ | 612 | $ | 781 | $ | 892 | |||||||||
Fair value of vested restricted stock | $ | 75 | $ | 648 | $ | 960 | $ | 1,027 | |||||||||
Assumptions Used to Determine the Fair Value of the Awards with Market-Based | ' | ||||||||||||||||
The following presents assumptions used in a Monte Carlo simulation model to determine the fair value of the awards with market-based conditions: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Expected dividends per share | $1.10 | $0.90 | $1.10 | $0.90 | |||||||||||||
Expected volatility | 42.1 – 42.6% | 41.5 – 48.7% | 42.1 – 42.6% | 41.5 – 51.6% | |||||||||||||
Risk-free interest rate | 0.1 – 1.5% | 0.0 – 1.1% | 0.1 – 1.5% | 0.0 – 1.1% | |||||||||||||
Estimated cost of capital | 11.50% | 9.90% | 11.50% | 9.3 – 9.9% | |||||||||||||
Expected life (in years) | 4 | 4 | 4 | 4.00 – 6.00 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2014 | |
Summary Of Significant Accounting Policies [Line Items] | ' |
ADC Arrangement | 'The Company has an acquisition, development and construction loan arrangement (bADC Arrangementb) under which it provides financing to a property developer for the acquisition, development, and construction of a retail shopping center. The Company also expects to participate in the residual profit resulting from the ultimate sale or other use of the property. Classification and accounting for the ADC Arrangement as a loan, an investment in real estate, or joint venture is determined by the Companybs evaluation of the characteristics and the risks and rewards of the ADC Arrangement. If the Company expects to receive more than 50% of the residual profit from the ADC arrangement and it has characteristics similar to a real estate investment, the costs of the real estate project will be capitalized and interest will be recognized in net investment income |
Percentage of investment in unconsolidated entities | 90.00% |
Investment in Joint Venture [Member] | ' |
Summary Of Significant Accounting Policies [Line Items] | ' |
Percentage of investment in unconsolidated entities | 90.00% |
Investments_Summary_of_Amortiz
Investments - Summary of Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Value of Available-for-Sale Securities (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost or Amortized Cost | $98,743 | $110,738 |
Equity securities, Gross Unrealized Gain | 3,160 | 2,862 |
Equity securities, Cost or Amortized Cost | 38,856 | 17,248 |
Equity securities, Gross Unrealized Loss | -1,485 | -1,048 |
Total available-for-sale securities, Cost or Amortized Cost | 137,599 | 127,986 |
Debt securities | 100,177 | 112,151 |
Equity securities, Estimated Fair Value | 39,097 | 17,649 |
Total available-for-sale securities | 139,274 | 129,800 |
Equity Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Equity securities, Gross Unrealized Gain | 1,444 | 920 |
Equity securities, Cost or Amortized Cost | 38,856 | 17,248 |
Equity securities, Gross Unrealized Loss | -1,203 | -519 |
Equity securities, Estimated Fair Value | 39,097 | 17,649 |
Fixed-Maturity Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost or Amortized Cost | 98,743 | 110,738 |
Equity securities, Gross Unrealized Gain | 1,716 | 1,942 |
Equity securities, Gross Unrealized Loss | -282 | -529 |
Debt securities | 100,177 | 112,151 |
Fixed-Maturity Securities [Member] | U.S. Treasury and U.S. Government Agencies [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost or Amortized Cost | 1,330 | 4,549 |
Equity securities, Gross Unrealized Gain | 34 | 37 |
Equity securities, Gross Unrealized Loss | ' | -22 |
Debt securities | 1,364 | 4,564 |
Fixed-Maturity Securities [Member] | Corporate Bonds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost or Amortized Cost | 17,020 | 25,139 |
Equity securities, Gross Unrealized Gain | 16 | 484 |
Equity securities, Gross Unrealized Loss | -157 | -219 |
Debt securities | 16,879 | 25,404 |
Fixed-Maturity Securities [Member] | Commercial Mortgage-Backed Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost or Amortized Cost | 11,163 | 10,929 |
Equity securities, Gross Unrealized Gain | 408 | 499 |
Equity securities, Gross Unrealized Loss | -40 | -96 |
Debt securities | 11,531 | 11,332 |
Fixed-Maturity Securities [Member] | State, Municipalities, and Political Subdivisions [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost or Amortized Cost | 59,796 | 69,715 |
Equity securities, Gross Unrealized Gain | 1,158 | 917 |
Equity securities, Gross Unrealized Loss | -41 | -181 |
Debt securities | 60,913 | 70,451 |
Fixed-Maturity Securities [Member] | Redeemable Preferred Stock [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost or Amortized Cost | 9,434 | 406 |
Equity securities, Gross Unrealized Gain | 100 | 5 |
Equity securities, Gross Unrealized Loss | -44 | -11 |
Debt securities | $9,490 | $400 |
Investments_Additional_Informa
Investments - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 6 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 6 Months Ended | 9 Months Ended | |||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Minimum [Member] | Maximum [Member] | Fmkt [Member] | Real Estate Investment [Member] | Real Estate Investment [Member] | Real Estate Investment [Member] | Real Estate Investment [Member] | ADC Arrangement [Member] | ADC Arrangement [Member] | U.S. Treasury and U.S. Government Agencies [Member] | U.S. Treasury and U.S. Government Agencies [Member] | |||||
Schedule of Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Statutory deposit held in trust with Treasurer of Alabama | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $111 | $105 |
Equity interest percentage | ' | 90.00% | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Cash contribution | ' | 4,500 | 0 | ' | ' | ' | 500 | ' | ' | ' | ' | ' | ' | ' | ' |
Distribution | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum exposure loss relating to VIE | 4,478 | 4,478 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Undistributed loss from equity investment method | ' | -22 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation and amortization expenses under real estate investments | ' | ' | ' | ' | ' | ' | ' | 100 | 99 | 298 | 290 | ' | ' | ' | ' |
Maximum Amount of Loan Receivable | ' | ' | ' | $9,785 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of rentable space secured | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90.00% | ' | ' | ' |
Term of Loan Receivable | ' | ' | ' | ' | '24 months | '36 months | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest Rate on Loan Receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.00% | ' | ' | ' |
ADC Arrangement | ' | 'The Company has an acquisition, development and construction loan arrangement (bADC Arrangementb) under which it provides financing to a property developer for the acquisition, development, and construction of a retail shopping center. The Company also expects to participate in the residual profit resulting from the ultimate sale or other use of the property. Classification and accounting for the ADC Arrangement as a loan, an investment in real estate, or joint venture is determined by the Companybs evaluation of the characteristics and the risks and rewards of the ADC Arrangement. If the Company expects to receive more than 50% of the residual profit from the ADC arrangement and it has characteristics similar to a real estate investment, the costs of the real estate project will be capitalized and interest will be recognized in net investment income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Based on the characteristics of this ADC Arrangement which are similar to those of an investment, combined with the expected residual profit being greater than 50%, the arrangement is accounted for and reported in the balance sheet as a real estate investment | ' | ' |
Investments_Scheduled_Contract
Investments - Scheduled Contractual Maturities of Fixed-Maturity Securities (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Available-for-sale | ' | ' |
Due in one year or less, Amortized Cost | $1,518 | $2,366 |
Due after one year through five years, Amortized Cost | 35,153 | 24,829 |
Due after five years through ten years, Amortized Cost | 39,811 | 59,083 |
Due after ten years, Amortized Cost | 11,098 | 13,531 |
Commercial mortgage-backed securities, Amortized Cost | 11,163 | 10,929 |
Amortized Cost Total | 98,743 | 110,738 |
Due in one year or less, Fair Value | 1,520 | 2,381 |
Due after one year through five years, Fair Value | 35,313 | 25,145 |
Due after five years through ten years, Fair Value | 40,365 | 59,582 |
Due after ten years, Fair Value | 11,448 | 13,711 |
Commercial mortgage-backed securities, Fair Value | 11,531 | 11,332 |
Fair Value Total | $100,177 | $112,151 |
Investments_Summary_of_Proceed
Investments - Summary of Proceeds Received and Gross Realized Gains and Losses from Sales of Available for Sale Securities (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Fixed-Maturity Securities [Member] | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Proceeds | $47,557 | $390 | $67,519 | $1,749 |
Gross Realized Gains | 2,759 | 58 | 3,623 | 92 |
Gross Realized Losses | ' | -1 | -9 | -4 |
Equity Securities [Member] | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Proceeds | 3,302 | 708 | 9,232 | 2,021 |
Gross Realized Gains | 623 | 20 | 1,131 | 84 |
Gross Realized Losses | ($88) | ($46) | ($280) | ($129) |
Investments_Summary_of_Securit
Investments - Summary of Securities with Gross Unrealized Loss Positions Aggregated by Investment Category (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Gross Unrealized Loss, Less than Twelve Months | ($1,195) | ($795) |
Fair Value, Less than Twelve Months | 40,156 | 46,186 |
Gross Unrealized Loss, Twelve Months or Greater | -290 | -253 |
Fair Value, Twelve Months or Greater | 4,525 | 1,299 |
Gross Unrealized Loss, Total | -1,485 | -1,048 |
Fair Value, Total | 44,681 | 47,485 |
Fixed-Maturity Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Gross Unrealized Loss, Less than Twelve Months | -215 | -522 |
Fair Value, Less than Twelve Months | 20,771 | 35,444 |
Gross Unrealized Loss, Twelve Months or Greater | -67 | -7 |
Fair Value, Twelve Months or Greater | 2,797 | 230 |
Gross Unrealized Loss, Total | -282 | -529 |
Fair Value, Total | 23,568 | 35,674 |
Fixed-Maturity Securities [Member] | Corporate Bonds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Gross Unrealized Loss, Less than Twelve Months | -151 | -212 |
Fair Value, Less than Twelve Months | 11,164 | 9,502 |
Gross Unrealized Loss, Twelve Months or Greater | -6 | -7 |
Fair Value, Twelve Months or Greater | 1,224 | 230 |
Gross Unrealized Loss, Total | -157 | -219 |
Fair Value, Total | 12,388 | 9,732 |
Fixed-Maturity Securities [Member] | Commercial Mortgage-Backed Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Gross Unrealized Loss, Less than Twelve Months | -5 | -96 |
Fair Value, Less than Twelve Months | 283 | 2,179 |
Gross Unrealized Loss, Twelve Months or Greater | -35 | ' |
Fair Value, Twelve Months or Greater | 1,377 | ' |
Gross Unrealized Loss, Total | -40 | -96 |
Fair Value, Total | 1,660 | 2,179 |
Fixed-Maturity Securities [Member] | State, Municipalities, and Political Subdivisions [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Gross Unrealized Loss, Less than Twelve Months | -15 | -181 |
Fair Value, Less than Twelve Months | 4,085 | 20,233 |
Gross Unrealized Loss, Twelve Months or Greater | -26 | ' |
Fair Value, Twelve Months or Greater | 196 | ' |
Gross Unrealized Loss, Total | -41 | -181 |
Fair Value, Total | 4,281 | 20,233 |
Fixed-Maturity Securities [Member] | Redeemable Preferred Stock [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Gross Unrealized Loss, Less than Twelve Months | -44 | -11 |
Fair Value, Less than Twelve Months | 5,239 | 239 |
Gross Unrealized Loss, Total | -44 | -11 |
Fair Value, Total | 5,239 | 239 |
Fixed-Maturity Securities [Member] | U.S. Treasury and U.S. Government Agencies [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Gross Unrealized Loss, Less than Twelve Months | ' | -22 |
Fair Value, Less than Twelve Months | ' | 3,291 |
Gross Unrealized Loss, Total | ' | -22 |
Fair Value, Total | ' | 3,291 |
Equity Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Gross Unrealized Loss, Less than Twelve Months | -980 | -273 |
Fair Value, Less than Twelve Months | 19,385 | 10,742 |
Gross Unrealized Loss, Twelve Months or Greater | -223 | -246 |
Fair Value, Twelve Months or Greater | 1,728 | 1,069 |
Gross Unrealized Loss, Total | -1,203 | -519 |
Fair Value, Total | $21,113 | $11,811 |
Investments_Summary_of_Operati
Investments - Summary of Operating Results and Financial Position (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Operating results: | ' | ' | ' | ' | ' |
Operating expenses | $44,180 | $33,048 | $123,888 | $94,615 | ' |
Net loss | ' | ' | -22 | 0 | ' |
Balance Sheet: | ' | ' | ' | ' | ' |
Other liabilities | 13,343 | ' | 13,343 | ' | 6,772 |
Total liabilities and stockholders' equity | 595,624 | ' | 595,624 | ' | 526,316 |
Investment in joint venture, at equity | 4,478 | ' | 4,478 | ' | 0 |
Variable Interest Entity, Not Primary Beneficiary [Member] | ' | ' | ' | ' | ' |
Operating results: | ' | ' | ' | ' | ' |
Revenue | 0 | ' | ' | ' | ' |
Operating expenses | 25 | ' | 25 | ' | ' |
Net loss | -25 | ' | -25 | ' | ' |
Balance Sheet: | ' | ' | ' | ' | ' |
Construction in progress-real estate | 3,220 | ' | 3,220 | ' | ' |
Cash | 1,880 | ' | 1,880 | ' | ' |
Total assets | 5,100 | ' | 5,100 | ' | ' |
Other liabilities | 125 | ' | 125 | ' | ' |
Members' capital | 4,975 | ' | 4,975 | ' | ' |
Total liabilities and stockholders' equity | 5,100 | ' | 5,100 | ' | ' |
Melbourne FMA [Member] | Operating Expense [Member] | ' | ' | ' | ' | ' |
Operating results: | ' | ' | ' | ' | ' |
Net loss | $22 | ' | $22 | ' | ' |
Investments_Summary_of_Real_Es
Investments - Summary of Real Estate Investment (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Real Estate [Abstract] | ' | ' |
Land | $11,476 | $11,299 |
Land improvements | 1,399 | 1,351 |
Buildings | 3,097 | 3,022 |
Other | 1,317 | 1,262 |
Total, at cost | 17,289 | 16,934 |
Less: accumulated depreciation and amortization | -1,003 | -706 |
Real estate, net | 16,286 | 16,228 |
ADC Arrangement classified as real estate investment | 2,652 | ' |
Real estate investments | $18,938 | $16,228 |
Fair_Value_Measurements_Availa
Fair Value Measurements - Available-for-Sale Securities Measured at Fair Value (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial Assets: | ' | ' |
Total fixed-maturity securities | $100,177 | $112,151 |
Equity securities | 39,097 | 17,649 |
Total available-for-sale securities | 139,274 | 129,800 |
ADC Arrangement classified as real estate investment | 2,652 | ' |
(Level 1) [Member] | ' | ' |
Financial Assets: | ' | ' |
Cash and cash equivalents | 304,323 | 293,398 |
Total available-for-sale securities | 65,123 | 46,045 |
Total financial assets | 369,446 | 339,443 |
(Level 2) [Member] | ' | ' |
Financial Assets: | ' | ' |
Total available-for-sale securities | 74,151 | 83,755 |
Total financial assets | 74,151 | 83,755 |
Financial Liabilities: | ' | ' |
Total long-term debt | 42,343 | 43,390 |
(Level 2) [Member] | Senior Notes [Member] | ' | ' |
Financial Liabilities: | ' | ' |
Total long-term debt | 42,343 | 43,390 |
(Level 3) [Member] | ' | ' |
Financial Assets: | ' | ' |
ADC Arrangement classified as real estate investment | 2,592 | ' |
Total financial assets | 2,592 | ' |
Financial Liabilities: | ' | ' |
Total long-term debt | 95,462 | 86,630 |
(Level 3) [Member] | Convertible Senior Notes [Member] | ' | ' |
Financial Liabilities: | ' | ' |
Total long-term debt | 95,462 | 86,630 |
Fixed-Maturity Securities [Member] | ' | ' |
Financial Assets: | ' | ' |
Total fixed-maturity securities | 100,177 | 112,151 |
Fixed-Maturity Securities [Member] | (Level 1) [Member] | ' | ' |
Financial Assets: | ' | ' |
Total fixed-maturity securities | 26,026 | 28,396 |
Fixed-Maturity Securities [Member] | (Level 1) [Member] | U.S. Treasury and U.S. Government Agencies [Member] | ' | ' |
Financial Assets: | ' | ' |
Total fixed-maturity securities | 656 | 3,520 |
Fixed-Maturity Securities [Member] | (Level 1) [Member] | Corporate Bonds [Member] | ' | ' |
Financial Assets: | ' | ' |
Total fixed-maturity securities | 15,880 | 24,476 |
Fixed-Maturity Securities [Member] | (Level 1) [Member] | Redeemable Preferred Stock [Member] | ' | ' |
Financial Assets: | ' | ' |
Total fixed-maturity securities | 9,490 | 400 |
Fixed-Maturity Securities [Member] | (Level 2) [Member] | ' | ' |
Financial Assets: | ' | ' |
Total fixed-maturity securities | 74,151 | 83,755 |
Fixed-Maturity Securities [Member] | (Level 2) [Member] | U.S. Treasury and U.S. Government Agencies [Member] | ' | ' |
Financial Assets: | ' | ' |
Total fixed-maturity securities | 708 | 1,044 |
Fixed-Maturity Securities [Member] | (Level 2) [Member] | Corporate Bonds [Member] | ' | ' |
Financial Assets: | ' | ' |
Total fixed-maturity securities | 999 | 928 |
Fixed-Maturity Securities [Member] | (Level 2) [Member] | Commercial Mortgage-Backed Securities [Member] | ' | ' |
Financial Assets: | ' | ' |
Total fixed-maturity securities | 11,531 | 11,332 |
Fixed-Maturity Securities [Member] | (Level 2) [Member] | State, Municipalities, and Political Subdivisions [Member] | ' | ' |
Financial Assets: | ' | ' |
Total fixed-maturity securities | 60,913 | 70,451 |
Equity Securities [Member] | (Level 1) [Member] | ' | ' |
Financial Assets: | ' | ' |
Equity securities | 39,097 | 17,649 |
Fair Value, Measurements, Recurring [Member] | ' | ' |
Financial Assets: | ' | ' |
Cash and cash equivalents | 304,323 | 293,398 |
Total available-for-sale securities | 139,274 | 129,800 |
ADC Arrangement classified as real estate investment | 2,592 | ' |
Total financial assets | 446,189 | 423,198 |
Financial Liabilities: | ' | ' |
Total long-term debt | 137,805 | 130,020 |
Fair Value, Measurements, Recurring [Member] | Senior Notes [Member] | ' | ' |
Financial Liabilities: | ' | ' |
Total long-term debt | 42,343 | 43,390 |
Fair Value, Measurements, Recurring [Member] | Convertible Senior Notes [Member] | ' | ' |
Financial Liabilities: | ' | ' |
Total long-term debt | 95,462 | 86,630 |
Fair Value, Measurements, Recurring [Member] | Fixed-Maturity Securities [Member] | ' | ' |
Financial Assets: | ' | ' |
Total fixed-maturity securities | 100,177 | 112,151 |
Fair Value, Measurements, Recurring [Member] | Fixed-Maturity Securities [Member] | U.S. Treasury and U.S. Government Agencies [Member] | ' | ' |
Financial Assets: | ' | ' |
Total fixed-maturity securities | 1,364 | 4,564 |
Fair Value, Measurements, Recurring [Member] | Fixed-Maturity Securities [Member] | Corporate Bonds [Member] | ' | ' |
Financial Assets: | ' | ' |
Total fixed-maturity securities | 16,879 | 25,404 |
Fair Value, Measurements, Recurring [Member] | Fixed-Maturity Securities [Member] | Commercial Mortgage-Backed Securities [Member] | ' | ' |
Financial Assets: | ' | ' |
Total fixed-maturity securities | 11,531 | 11,332 |
Fair Value, Measurements, Recurring [Member] | Fixed-Maturity Securities [Member] | State, Municipalities, and Political Subdivisions [Member] | ' | ' |
Financial Assets: | ' | ' |
Total fixed-maturity securities | 60,913 | 70,451 |
Fair Value, Measurements, Recurring [Member] | Fixed-Maturity Securities [Member] | Redeemable Preferred Stock [Member] | ' | ' |
Financial Assets: | ' | ' |
Total fixed-maturity securities | 9,490 | 400 |
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | ' | ' |
Financial Assets: | ' | ' |
Equity securities | $39,097 | $17,649 |
Fair_Value_Measurements_Availa1
Fair Value Measurements - Available-for-Sale Securities Measured at Fair Value (Parenthetical) (Detail) | Sep. 30, 2014 | Dec. 31, 2013 |
Senior Notes [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fixed annual rate of interest | 8.00% | ' |
Convertible Senior Notes [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Debt instrument stated interest rate | 3.88% | ' |
Fair Value, Measurements, Recurring [Member] | Senior Notes [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fixed annual rate of interest | 8.00% | 8.00% |
Fair Value, Measurements, Recurring [Member] | Convertible Senior Notes [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Debt instrument stated interest rate | 3.88% | 3.88% |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ' | ' | ' |
Fair value transfer level 2 from level 1 | ' | ' | $10,684 |
Fair value transfers between Level 1, 2 or 3 | $0 | $0 | ' |
Other_Assets_Summary_of_Other_
Other Assets - Summary of Other Assets (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ' |
Benefits receivable related to retrospective reinsurance contracts | $21,734 | $8,815 |
Deferred costs related to retrospective reinsurance contracts | 413 | 194 |
Deferred offering costs on senior notes issued in 2013 | 3,819 | 4,305 |
Prepaid expenses | 1,722 | 771 |
Other | 4,857 | 1,729 |
Total other assets | $32,545 | $15,814 |
Other_Assets_Additional_Inform
Other Assets - Additional Information (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' |
Amount received from retrospective reinsurance contracts | $1,485 |
LongTerm_Debt_Summary_of_LongT
Long-Term Debt - Summary of Long-Term Debt (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Total long-term debt | $128,865 | $126,932 |
Senior Notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total long-term debt | 40,250 | 40,250 |
Convertible Senior Notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total long-term debt | $88,615 | $86,682 |
LongTerm_Debt_Summary_of_LongT1
Long-Term Debt - Summary of Long-Term Debt (Parenthetical) (Detail) | 9 Months Ended |
Sep. 30, 2014 | |
Senior Notes [Member] | ' |
Debt Instrument [Line Items] | ' |
Fixed annual rate of interest | 8.00% |
Debt instrument, maturity date | 30-Jan-20 |
Convertible Senior Notes [Member] | ' |
Debt Instrument [Line Items] | ' |
Debt instrument stated interest rate | 3.88% |
Debt instrument, maturity date | 15-Mar-19 |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Long-term Debt, Unclassified [Abstract] | ' | ' | ' | ' |
Interest expense on debt | $2,626 | $847 | $7,809 | $2,379 |
Non-cash interest expense | $823 | $42 | $2,411 | $116 |
Debt discount, remaining amortization period | ' | ' | '4 years 6 months | ' |
Reinsurance_Impact_of_Catastro
Reinsurance - Impact of Catastrophe Excess of Loss Reinsurance and Quota Share Treaties on Premiums Written and Earned (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Premiums Written: | ' | ' | ' | ' |
Direct | $86,257 | $78,140 | $307,199 | $281,912 |
Assumed | -172 | -221 | -1,255 | -2,297 |
Gross written | 86,085 | 77,919 | 305,944 | 279,615 |
Gross written | 86,085 | 77,919 | 305,944 | 279,615 |
Ceded | -27,684 | -28,310 | -83,764 | -74,923 |
Net premiums written | 58,401 | 49,609 | 222,180 | 204,692 |
Premiums Earned: | ' | ' | ' | ' |
Direct | 85,357 | 75,512 | 245,638 | 193,465 |
Assumed | 3,587 | 5,732 | 28,415 | 52,278 |
Gross earned | 88,944 | 81,244 | 274,053 | 245,743 |
Ceded | -27,684 | -28,310 | -83,764 | -74,923 |
Net premiums earned | $61,260 | $52,934 | $190,289 | $170,820 |
Reinsurance_Additional_Informa
Reinsurance - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ' | ' | ' | ' | ' |
Number of reinsurers | 28 | ' | 28 | ' | 27 |
Reinsurance recoverable | $0 | ' | $0 | ' | $0 |
Credit risk associated with reinsurance receivables | 0 | ' | 0 | ' | 0 |
Other assets | 32,545 | ' | 32,545 | ' | 15,814 |
Prepaid reinsurance premiums | 30,965 | ' | 30,965 | ' | 28,066 |
Credit Concentration Risk [Member] | ' | ' | ' | ' | ' |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ' | ' | ' | ' | ' |
Recoveries pertaining to reinsurance contracts | 0 | 0 | 0 | 0 | ' |
Reinsurance [Member] | ' | ' | ' | ' | ' |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ' | ' | ' | ' | ' |
Net reduction in ceded premiums | 6,512 | 5,484 | 17,052 | 6,785 | ' |
Other assets | 22,147 | ' | 22,147 | ' | 9,009 |
Prepaid reinsurance premiums | $5,941 | ' | $5,941 | ' | $3,512 |
Losses_and_Loss_Adjustment_Exp2
Losses and Loss Adjustment Expenses - Liability for Unpaid Losses and Loss Adjustment Expenses (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ' | ' | ' | ' |
Balance, beginning of period | $43,044 | $44,749 | $43,686 | $41,168 |
Incurred related to: | ' | ' | ' | ' |
Current period | 21,643 | 14,851 | 59,205 | 50,213 |
Prior period | 348 | -362 | -266 | -2,438 |
Total incurred | 21,991 | 14,489 | 58,939 | 47,775 |
Paid related to: | ' | ' | ' | ' |
Current period | -3,461 | -12,628 | -22,296 | -25,880 |
Prior period | -13,920 | -3,086 | -32,675 | -19,539 |
Total paid | -17,381 | -15,714 | -54,971 | -45,419 |
Balance, end of period | $47,654 | $43,524 | $47,654 | $43,524 |
Losses_and_Loss_Adjustment_Exp3
Losses and Loss Adjustment Expenses - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Reserves For Losses And Loss Adjustment Expenses [Line Items] | ' | ' | ' | ' |
Unpaid claims and claim adjustment expenses overall development | ($348) | $362 | $266 | $2,438 |
Unfavorable Development [Member] | ' | ' | ' | ' |
Reserves For Losses And Loss Adjustment Expenses [Line Items] | ' | ' | ' | ' |
Unpaid claims and claim adjustment expenses overall development | ($348) | ' | ' | ' |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Income tax expense | $8,723 | $8,266 | $29,366 | $31,221 |
Estimated effective tax rates | 38.30% | 38.20% | 37.90% | 38.40% |
Earnings_Per_Share_Summary_of_
Earnings Per Share - Summary of Numerator and Denominator of Basic and Diluted Earnings Per Common Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' |
Net income | $14,052 | $13,378 | $48,102 | $50,000 |
Less: Preferred stock dividends | ' | -22 | 4 | -88 |
Less: Income attributable to participating securities | -1,024 | -823 | -3,415 | -2,205 |
Basic Earnings Per Share: | ' | ' | ' | ' |
Income allocated to common stockholders, Income (Numerator) | 13,028 | 12,533 | 44,691 | 47,707 |
Income allocated to common stockholders, Shares (Denominator) | 9,736 | 10,749 | 9,972 | 10,696 |
Income allocated to common stockholders, Per Share Amount | $1.34 | $1.17 | $4.48 | $4.46 |
Diluted Earnings Per Share: | ' | ' | ' | ' |
Income available to common stockholders and assumed conversions, Income (Numerator) | 14,118 | 12,555 | 47,929 | 47,795 |
Income available to common stockholders and assumed conversions, Shares (Denominator) | 11,518 | 11,078 | 11,787 | 11,053 |
Income available to common stockholders and assumed conversions, Per Share Amount | $1.23 | $1.13 | $4.07 | $4.32 |
Convertible Senior Notes [Member] | ' | ' | ' | ' |
Effect of Dilutive Securities: | ' | ' | ' | ' |
Dilutive Securities, Income (Numerator) | 1,090 | ' | 3,242 | ' |
Dilutive Securities, Shares (Denominator) | 1,649 | ' | 1,649 | ' |
Convertible Preferred Stock [Member] | ' | ' | ' | ' |
Effect of Dilutive Securities: | ' | ' | ' | ' |
Dilutive Securities, Income (Numerator) | ' | $22 | ($4) | $88 |
Dilutive Securities, Shares (Denominator) | ' | 165 | 27 | 195 |
Stock Options [Member] | ' | ' | ' | ' |
Effect of Dilutive Securities: | ' | ' | ' | ' |
Dilutive Securities, Shares (Denominator) | 133 | 164 | 139 | 162 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Oct. 16, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Mar. 18, 2014 | Sep. 30, 2014 | Jun. 02, 2014 | Feb. 04, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 02, 2014 | |
Subsequent Event [Member] | Common Stock [Member] | Common Stock [Member] | Share Repurchase Plan [Member] | Share Repurchase Plan [Member] | Share Repurchase Plan [Member] | Share Repurchase Plan [Member] | Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | ||||||
Common Stock [Member] | |||||||||||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock repurchase authorized amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $40,000,000 | ' | ' | ' | ' | ' | ' |
Time through the company is allowed to repurchase shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31-Mar-15 | ' | ' | ' | ' | ' | ' | ' |
Common stock repurchased and retired, shares | ' | ' | ' | ' | ' | ' | 14,070 | 26,705 | 246,578 | 734,924 | ' | 734,924 | ' | ' | ' | ' | ' |
Common stock repurchased and retired, weighted average price | ' | ' | ' | ' | ' | ' | ' | ' | $40.56 | $37.83 | ' | ' | ' | ' | ' | ' | ' |
Stock repurchased and retired, total costs | ' | ' | 616,000 | 893,000 | ' | ' | ' | ' | 10,005,000 | 27,815,000 | ' | ' | ' | ' | ' | ' | ' |
Fees and commissions average price repurchase common stock | ' | ' | ' | ' | ' | ' | ' | ' | $40.58 | $37.85 | ' | ' | ' | ' | ' | ' | ' |
Stock repurchase program available repurchase amount | ' | ' | ' | ' | ' | ' | ' | ' | $12,200,000 | $12,200,000 | ' | ' | ' | ' | ' | ' | ' |
Dividends per common share declared | $0.28 | $0.22 | $0.83 | $0.68 | ' | $0.28 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Date of dividend payable | ' | ' | ' | ' | ' | 19-Dec-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Record date of dividend payable | ' | ' | ' | ' | ' | 21-Nov-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock conversion cancellation date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1-Apr-14 | ' | ' |
Preferred stock Dividends rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.00% | ' | ' | ' |
Shares of Series A Preferred redeemed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,386 | ' | -3,386 | ' | ' |
Shares of Series A Preferred redeemed, per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10 |
Conversion of preferred stock to common stock, shares | ' | ' | ' | ' | ' | ' | 107,298 | 91,263 | ' | ' | ' | ' | ' | ' | -107,298 | -91,263 | ' |
Preferred stock, outstanding | 0 | ' | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Stock Options [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Recognized compensation expenses | $0 | $5 | $6 | $14 |
Unrecognized compensation expenses related to stock options | 0 | ' | 0 | ' |
Restricted Stock [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Recognized compensation expenses | 2,267 | 1,939 | 6,594 | 3,404 |
Recognition of remaining compensation expense over a weighted-average period | '26 months | ' | ' | ' |
Omnibus Incentive Plan New Plan 2012 [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Common shares available for grant | 4,244,115 | ' | 4,244,115 | ' |
Incentive Plans [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock option contractual term | ' | ' | '10 years | ' |
Incentive Plans [Member] | Stock Options [Member] | Maximum [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock options maximum vesting period | ' | ' | '5 years | ' |
Combined 2007 Plan and 2012 Plan [Member] | Restricted Stock [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Total unrecognized compensation expense, Nonvested restricted stock arrangements granted | $11,947 | $14,078 | $11,947 | $14,078 |
StockBased_Compensation_Summar
Stock-Based Compensation - Summary of Company's Stock Option Plan Activity (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding Beginning, Number of Options | 230,000 | 230,000 | 280,000 | 280,000 | 280,000 | 280,000 | 280,000 | 280,000 | 280,000 | ' |
Exercised, Number of Options | ' | ' | -50,000 | ' | ' | ' | -50,000 | 0 | ' | ' |
Outstanding Ending, Number of Options | 230,000 | 230,000 | 230,000 | 280,000 | 280,000 | 280,000 | 230,000 | 280,000 | 280,000 | 280,000 |
Exercisable Ending, Number of Options | 230,000 | ' | ' | 270,000 | ' | ' | 230,000 | 270,000 | ' | ' |
Outstanding Beginning, Weighted Average Exercise price | $3 | $3 | $2.91 | $2.91 | $2.91 | $2.91 | $2.91 | $2.91 | $2.91 | ' |
Exercised, Weighted-Average Exercise Price | ' | ' | $2.50 | ' | ' | ' | ' | ' | ' | ' |
Outstanding Ending, Weighted-Average Exercise Price | $3 | $3 | $3 | $2.91 | $2.91 | $2.91 | $3 | $2.91 | $2.91 | $2.91 |
Exercisable Ending , Weighted-Average Exercise Price | $3 | ' | ' | $2.78 | ' | ' | $3 | $2.78 | ' | ' |
Outstanding, Weighted-Average Remaining Contractual Term | '3 years 3 months 18 days | '3 years 6 months | '3 years 9 months 18 days | '4 years 2 months 12 days | '4 years 2 months 12 days | '4 years 8 months 12 days | ' | ' | '3 years 10 months 24 days | '4 years 10 months 24 days |
Exercisable Ending, Weighted-Average Remaining Contractual Term | '3 years 3 months 18 days | ' | ' | '4 years | ' | ' | ' | ' | ' | ' |
Outstanding Beginning, Aggregate Intrinsic Value | $8,649 | $7,683 | $14,166 | ' | $6,816 | ' | $14,166 | ' | ' | ' |
Outstanding Ending, Aggregate Intrinsic Value | 7,589 | 8,649 | 7,683 | 10,621 | ' | 6,816 | 7,589 | 10,621 | 14,166 | ' |
Exercisable Ending, Aggregate Intrinsic Value | $7,589 | ' | ' | $10,276 | ' | ' | $7,589 | $10,276 | ' | ' |
StockBased_Compensation_Inform
Stock-Based Compensation - Information about Options Exercised (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2013 |
Share Based Compensation Arrangement By Share Based Payment Award Options Activity [Abstract] | ' | ' | ' |
Options exercised | 50,000 | 50,000 | 0 |
Total intrinsic value of exercised options | ' | $1,970 | $0 |
Fair value of vested stock options | ' | 17 | 17 |
Tax benefits realized | ' | $603 | $0 |
Stock_Based_Compensation_Infor
Stock Based Compensation - Information with Respect to Unvested Restricted Stock Awards Stock Option and Incentive Plan (Detail) (Restricted Stock [Member], USD $) | 3 Months Ended | |||||
Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | |
Restricted Stock [Member] | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Beginning balance, shares | 777,215 | 812,040 | 735,650 | 732,240 | 245,400 | 246,320 |
Granted, Number of Restricted Stock Awards | 10,000 | ' | 98,720 | 20,000 | 544,000 | ' |
Vested, Number of Restricted Stock Awards | -2,000 | -32,000 | -21,825 | -56,000 | -29,000 | ' |
Forfeited, Number of Restricted Stock Awards | -5,155 | -2,825 | -505 | -180 | -28,160 | -920 |
Ending balance, shares | 780,060 | 777,215 | 812,040 | 696,060 | 732,240 | 245,400 |
Nonvested, Weighted-Average Grant Date Fair Value, Beginning balance | $28.95 | $28.37 | $25.48 | $23.53 | $14.51 | $14.54 |
Granted, Weighted-Average Grant Date Fair Value | $37.28 | ' | $48.42 | $32.85 | $26.58 | ' |
Vested, Weighted-Average Grant Date Fair Value | $37.68 | $12.95 | $21.56 | $11.57 | $13.06 | ' |
Forfeited, Weighted-Average Grant Date Fair Value | $39.85 | $43.43 | $32.20 | $21.56 | $14.68 | $21.56 |
Nonvested, Weighted-Average Grant Date Fair Value, Ending balance | $28.96 | $28.95 | $28.37 | $24.75 | $23.53 | $14.51 |
StockBased_Compensation_Inform1
Stock-Based Compensation - Information about Deferred Tax Benefits Recognized Related to Restricted Stock Awards, Paid Dividends and the Fair Value of Vested Restricted Stock (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Tax benefits realized | ' | ' | $603 | $0 |
Restricted Stock [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Deferred tax benefits recognized | 875 | 748 | 2,544 | 1,313 |
Tax benefits realized | 80 | 612 | 781 | 892 |
Fair value of vested restricted stock | $75 | $648 | $960 | $1,027 |
StockBased_Compensation_Assump
Stock-Based Compensation - Assumptions Used to Determine the Fair Value of the Awards with Market-Based (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Share Based Compensation Arrangement by Share Based Payment Award Fair Value Assumptions and Methodology [Line Items] | ' | ' | ' | ' |
Expected dividends per share | $1.10 | $0.90 | $1.10 | $0.90 |
Expected volatility, minimum | 42.10% | 41.50% | 42.10% | 41.50% |
Expected volatility, maximum | 42.60% | 48.70% | 42.60% | 51.60% |
Risk-free interest rate, minimum | 0.10% | 0.00% | 0.10% | 0.00% |
Risk-free interest rate, maximum | 1.50% | 1.10% | 1.50% | 1.10% |
Estimated cost of capital | 11.50% | 9.90% | 11.50% | ' |
Estimated cost of capital, minimum | ' | ' | ' | 9.30% |
Estimated cost of capital, maximum | ' | ' | ' | 9.90% |
Expected life (in years) | '4 years | '4 years | '4 years | ' |
Minimum [Member] | ' | ' | ' | ' |
Share Based Compensation Arrangement by Share Based Payment Award Fair Value Assumptions and Methodology [Line Items] | ' | ' | ' | ' |
Expected life (in years) | ' | ' | ' | '4 years |
Maximum [Member] | ' | ' | ' | ' |
Share Based Compensation Arrangement by Share Based Payment Award Fair Value Assumptions and Methodology [Line Items] | ' | ' | ' | ' |
Expected life (in years) | ' | ' | ' | '6 years |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 0 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 10, 2013 | Sep. 30, 2014 | Mar. 31, 2014 |
Commitment And Contingencies [Line Items] | ' | ' | ' |
Available unused commitment | ' | $7,177 | ' |
Premium Tax [Member] | ' | ' | ' |
Commitment And Contingencies [Line Items] | ' | ' | ' |
Loss contingency amount | ' | 1,754 | ' |
Proposed premium tax adjustment with interest | 1,913 | ' | ' |
Accrued amount | ' | ' | $0 |
Loss contingency related to credit disallowance | ' | 'The auditor's proposed adjustments primarily relate to the disallowance of the entire amount of $1,754 in Florida salary credits applicable to that period. | ' |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 9 Months Ended | 0 Months Ended | 1 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 27, 2013 | Jun. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 |
Oxbridge [Member] | Moksha [Member] | Moksha [Member] | Moksha [Member] | Claddaugh [Member] | Claddaugh [Member] | Claddaugh [Member] | HCPCI [Member] | ||
Directors | Directors | Oxbridge [Member] | Oxbridge [Member] | Moksha [Member] | Oxbridge [Member] | ||||
Period from June 1, 2013 through May 31, 2014 [Member] | Period from June 1, 2014 through May 31, 2015 [Member] | Period from June 1, 2013 through May 31, 2014 [Member] | |||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assumed total covered exposure | ' | ' | ' | ' | ' | $10,100 | $17,800 | $15,400 | $9,000 |
Premiums paid | ' | ' | 4,300 | ' | ' | 4,900 | 4,935 | 4,300 | 1,350 |
No. of non-employee directors | ' | 3 | ' | ' | 1 | ' | ' | ' | ' |
Amount received from retrospective reinsurance contracts | $1,485 | ' | ' | $1,485 | ' | ' | ' | ' | ' |