Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 02, 2015 | Jun. 30, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | HCI | ||
Entity Registrant Name | HCI Group, Inc. | ||
Entity Central Index Key | 1400810 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 10,761,107 | ||
Entity Public Float | $379,970,934 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ||
Fixed-maturity securities, available for sale, at fair value (amortized cost: $96,163 and $110,738, respectively) | $97,084 | $112,151 |
Equity securities, available for sale, at fair value (cost: $45,387 and $17,248, respectively) | 45,550 | 17,649 |
Limited partnership investment, at equity | 2,550 | |
Investment in joint venture, at equity | 4,477 | |
Real estate investments | 19,138 | 16,228 |
Total investments | 168,799 | 146,028 |
Cash and cash equivalents | 314,716 | 293,398 |
Accrued interest and dividends receivable | 1,059 | 1,133 |
Income taxes receivable | 2,624 | |
Premiums receivable | 15,824 | 14,674 |
Prepaid reinsurance premiums | 34,096 | 28,066 |
Deferred policy acquisition costs | 15,014 | 14,071 |
Property and equipment, net | 12,292 | 13,132 |
Deferred income taxes, net | 2,499 | |
Other assets | 35,287 | 15,814 |
Total assets | 602,210 | 526,316 |
Liabilities and Stockholders' Equity | ||
Losses and loss adjustment expenses | 48,908 | 43,686 |
Unearned premiums | 214,071 | 171,907 |
Advance premiums | 4,380 | 4,504 |
Assumed reinsurance balances payable | 218 | 4,660 |
Accrued expenses | 4,826 | 4,032 |
Dividends payable | 19 | |
Income taxes payable | 543 | |
Deferred income taxes, net | 2,740 | |
Long-term debt | 129,539 | 126,932 |
Other liabilities | 17,683 | 6,772 |
Total liabilities | 419,625 | 365,795 |
Commitments and contingencies (Note 17) | ||
Stockholders' equity: | ||
Preferred stock | ||
Common stock (no par value, 40,000,000 shares authorized, 10,189,128 and 10,939,268 shares issued and outstanding in 2014 and 2013, respectively) | ||
Additional paid-in capital | 20,465 | 48,966 |
Retained income | 161,454 | 110,441 |
Accumulated other comprehensive income, net of taxes | 666 | 1,114 |
Total stockholders' equity | 182,585 | 160,521 |
Total liabilities and stockholders' equity | 602,210 | 526,316 |
7% Series A Cumulative Convertible Preferred Stock [Member] | ||
Stockholders' equity: | ||
Preferred stock | ||
Series B Preferred Stock [Member] | ||
Stockholders' equity: | ||
Preferred stock |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Available-for-sale Debt securities, Amortized cost | $96,163 | $110,738 |
Available-for-sale Equity securities, Amortized cost | $45,387 | $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 | 10,189,128 | 10,939,268 |
Common stock, outstanding | 10,189,128 | 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 (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue | |||
Gross premiums earned | $365,488 | $337,113 | $233,607 |
Premiums ceded | -113,423 | -102,865 | -75,939 |
Net premiums earned | 252,065 | 234,248 | 157,668 |
Net investment income | 4,781 | 1,469 | 980 |
Policy fee income | 2,820 | 3,098 | 2,538 |
Net realized investment gains | 4,735 | 80 | 276 |
Gain on bargain purchase | 179 | ||
Other | 1,707 | 2,193 | 1,424 |
Total revenue | 266,108 | 241,088 | 163,065 |
Expenses | |||
Losses and loss adjustment expenses | 79,468 | 65,123 | 66,310 |
Policy acquisition and other underwriting expenses | 37,952 | 31,619 | 25,930 |
Salaries and wages | 16,483 | 14,714 | 10,545 |
Interest expense | 10,453 | 3,607 | |
Goodwill impairment loss | 161 | ||
Other operating expenses | 20,790 | 19,572 | 10,539 |
Total expenses | 165,146 | 134,635 | 113,485 |
Income before income taxes | 100,962 | 106,453 | 49,580 |
Income tax expense | 38,298 | 40,891 | 19,423 |
Net income | 62,664 | 65,562 | 30,157 |
Preferred stock dividends | 4 | -104 | -322 |
Income available to common stockholders | $62,668 | $65,458 | $29,835 |
Basic earnings per common share | $5.90 | $5.82 | $3.45 |
Diluted earnings per common share | $5.36 | $5.63 | $3.02 |
Dividends per common share | $1.10 | $0.95 | $0.88 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income | $62,664 | $65,562 | $30,157 |
Change in unrealized (loss) gain on investments: | |||
Net unrealized gain (loss) arising during the period | 3,870 | -767 | 2,571 |
Other-than-temporary impairment loss charged to investment income | 107 | ||
Call and repayment losses charged to investment income | 28 | 24 | 3 |
Reclassification adjustment for net realized gain | -4,735 | -80 | -276 |
Net change in unrealized (loss) gain | -730 | -823 | 2,298 |
Deferred income taxes on above change | 282 | 317 | -886 |
Total other comprehensive (loss) income, net of income taxes | -448 | -506 | 1,412 |
Comprehensive income | $62,216 | $65,056 | $31,569 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Share Repurchase Plan [Member] | Common Stock [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Additional Paid-In Capital [Member] | Retained Income [Member] | Accumulated Other Comprehensive Income, Net of Tax [Member] | Series A Preferred Stock [Member] |
In Thousands, except Share data | USD ($) | USD ($) | Share Repurchase Plan [Member] | USD ($) | Share Repurchase Plan [Member] | USD ($) | USD ($) | ||
USD ($) | |||||||||
Beginning Balance at Dec. 31, 2011 | $63,830 | $29,636 | $33,986 | $208 | |||||
Beginning Balance, shares at Dec. 31, 2011 | 6,202,485 | 1,247,700 | |||||||
Net income | 30,157 | 30,157 | |||||||
Total other comprehensive income, net of income taxes | 1,412 | 1,412 | |||||||
Conversion of preferred stock to common stock, shares | 1,006,518 | -1,006,518 | |||||||
Issuance of restricted stock, shares | 246,320 | ||||||||
Exercise of common stock options, value | 283 | 283 | |||||||
Exercise of common stock options, shares | 340,000 | 340,000 | |||||||
Shares surrendered upon exercising common stock options, shares | -72,592 | ||||||||
Exercise of common stock warrants, value | 11,869 | 11,869 | |||||||
Exercise of common stock warrants, shares | 1,314,806 | ||||||||
Common stock dividends | -8,063 | -8,063 | |||||||
Preferred stock dividends | -322 | -322 | |||||||
Tax benefits on stock-based compensation | 1,161 | 1,161 | |||||||
Issuance of common stock (net of offering costs of $220) | 20,082 | 20,082 | |||||||
Issuance of stock, shares | 1,840,000 | ||||||||
Stock-based compensation | 844 | 844 | |||||||
Ending Balance at Dec. 31, 2012 | 121,253 | 63,875 | 55,758 | 1,620 | |||||
Ending Balance, shares at Dec. 31, 2012 | 10,877,537 | 241,182 | |||||||
Net income | 65,562 | 65,562 | |||||||
Total other comprehensive income, net of income taxes | -506 | -506 | |||||||
Conversion of preferred stock to common stock, shares | 130,498 | -130,498 | |||||||
Issuance of restricted stock, shares | 612,000 | ||||||||
Forfeiture of restricted stock, shares | -29,670 | ||||||||
Repurchase and retirement of common stock | -963 | -963 | |||||||
Repurchase and retirement of common stock, shares | -28,346 | ||||||||
Repurchase of common stock under prepaid forward contract, value | -29,923 | -29,923 | |||||||
Repurchase of common stock under prepaid forward contract, shares | -622,751 | ||||||||
Equity component on 3.875% convertible senior notes (net of offering costs of $557) | 15,900 | 15,900 | |||||||
Deferred taxes on debt discount | -6,348 | -6,348 | |||||||
Common stock dividends | -10,775 | -10,775 | |||||||
Preferred stock dividends | -104 | -104 | |||||||
Tax benefits on stock-based compensation | 1,060 | 1,060 | |||||||
Stock-based compensation | 5,365 | 5,365 | |||||||
Ending Balance at Dec. 31, 2013 | 160,521 | 48,966 | 110,441 | 1,114 | |||||
Ending Balance, shares at Dec. 31, 2013 | 10,939,268 | 110,684 | |||||||
Net income | 62,664 | 62,664 | |||||||
Total other comprehensive income, net of income taxes | -448 | -448 | |||||||
Conversion of preferred stock to common stock, shares | 107,298 | -107,298 | |||||||
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, shares | -10,840 | ||||||||
Repurchase and retirement of common stock | -643 | -38,354 | -643 | -38,354 | |||||
Repurchase and retirement of common stock, shares | -990,701 | -14,617 | -990,701 | ||||||
Redemption of Series A preferred stock | -34 | -34 | |||||||
Redemption of Series A preferred stock, shares | -3,386 | ||||||||
Deferred taxes on debt discount | 215 | 215 | |||||||
Common stock dividends | -11,655 | -11,655 | |||||||
Derecognition of preferred stock dividends payable | 4 | 4 | |||||||
Tax benefits on stock-based compensation | 2,080 | 2,080 | |||||||
Stock-based compensation | 8,110 | 8,110 | |||||||
Ending Balance at Dec. 31, 2014 | $182,585 | $20,465 | $161,454 | $666 | |||||
Ending Balance, shares at Dec. 31, 2014 | 10,189,128 | 0 |
Consolidated_Statements_of_Sto1
Consolidated Statements of Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Stated interest rate on convertible senior notes | 3.88% | |
Offering costs for convertible senior notes | $557 | |
Issuance of stock, offering costs | 220 | |
Common Stock [Member] | ||
Issuance of stock, offering costs | 220 | |
Additional Paid-In Capital [Member] | ||
Stated interest rate on convertible senior notes | 3.88% | |
Offering costs for convertible senior notes | 557 | |
Issuance of stock, offering costs | $220 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income | $62,664 | $65,562 | $30,157 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Stock-based compensation | 8,110 | 5,365 | 844 |
Net amortization of discounts and premiums on investments in fixed-maturity securities | 782 | 336 | 279 |
Depreciation and amortization | 4,958 | 2,103 | 1,591 |
Deferred income tax (benefit) expense | -4,742 | 557 | -2,366 |
Net realized investment gains | -4,735 | -80 | -276 |
Other-than-temporary impairment charge | 107 | ||
Income from real estate investments | -85 | ||
Loss from joint venture | 23 | ||
Loss from limited partnership interest | 90 | ||
Gain on bargain purchase | -179 | ||
Goodwill impairment loss | 161 | ||
(Gain) loss on sale of real estate investment | -1 | 20 | |
Loss on disposal of real estate investment | 6 | ||
Foreign currency remeasurement loss | 29 | 69 | 23 |
Changes in operating assets and liabilities: | |||
Premiums and reinsurance receivable | -1,150 | -4,032 | 3,267 |
Advance premiums | -124 | 475 | 1,897 |
Prepaid reinsurance premiums | -6,030 | -18,954 | 5,057 |
Accrued interest and dividends receivable | 74 | -758 | 33 |
Other assets | -19,845 | -9,728 | -803 |
Assumed reinsurance balances payable | -4,442 | 3,283 | 1,377 |
Deferred policy acquisition costs | -943 | -4,039 | 2,289 |
Losses and loss adjustment expenses | 5,222 | 2,518 | 13,744 |
Unearned premiums | 42,164 | 17,658 | 45,572 |
Income taxes | -3,167 | -8,270 | 3,857 |
Accrued expenses and other liabilities | 9,770 | 3,381 | -258 |
Net cash provided by operating activities | 88,729 | 55,472 | 106,266 |
Cash flows from investing activities: | |||
Cash consideration paid for acquired business, net of cash acquired | -8,157 | ||
Investment in real estate under acquisition, development, and construction arrangement | -2,803 | ||
Investment in limited partnership interest | -2,640 | ||
Investment in joint venture | -4,500 | ||
Purchase of property and equipment | -453 | -3,433 | -1,196 |
Purchase of real estate investments | -413 | -565 | -1,600 |
Purchase of fixed-maturity securities | -83,365 | -82,907 | -10,128 |
Purchase of equity securities | -44,257 | -11,308 | -6,410 |
Proceeds from sales of fixed-maturity securities | 98,365 | 1,749 | 8,991 |
Proceeds from calls, repayments and maturities of fixed-maturity securities | 4,603 | 3,607 | 3,127 |
Proceeds from sales of equity securities | 16,810 | 2,809 | 1,735 |
Proceeds from sales of property and equipment | 1 | ||
Proceeds from sales of real estate investments | 1 | 7 | |
Time deposits, net | 12,427 | ||
Net cash used in investing activities | -18,652 | -90,040 | -1,211 |
Cash flows from financing activities: | |||
Net proceeds from the issuance of common stock | 20,082 | ||
Proceeds from the exercise of common stock options | 125 | 283 | |
Proceeds from the exercise of common stock warrants | 11,869 | ||
Proceeds from the issuance of long-term debt | 143,250 | ||
Cash dividends paid | -12,355 | -10,902 | -8,561 |
Cash dividends received under share repurchase forward contract | 685 | ||
Repurchases of common stock | -643 | -30,886 | |
Repurchases of common stock under share repurchase plan | -38,354 | ||
Redemption of Series A preferred stock | -34 | ||
Debt issuance costs | -234 | -4,770 | -35 |
Tax benefits on stock-based compensation | 2,080 | 1,060 | 1,161 |
Net cash (used) provided by financing activities | -48,730 | 97,752 | 24,799 |
Effect of exchange rate changes on cash | -29 | 5 | |
Net (decrease) increase in cash and cash equivalents | 21,318 | 63,184 | 129,859 |
Cash and cash equivalents at beginning of year | 293,398 | 230,214 | 100,355 |
Cash and cash equivalents at end of year | 314,716 | 293,398 | 230,214 |
Supplemental disclosure of cash flow information: | |||
Cash paid for income taxes | 43,902 | 47,435 | 16,710 |
Cash paid for interest | 6,258 | 2,531 | |
Non-cash investing and financing activities: | |||
Unrealized (loss) gain on investments in available-for-sale securities, net of tax | -448 | -506 | 1,412 |
Series A Preferred Stock [Member] | |||
Non-cash investing and financing activities: | |||
Conversion of Series A preferred stock to common stock | $972 | $1,170 | $9,121 |
Nature_of_Operations
Nature of Operations | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Accounting Policies [Abstract] | ||||
Nature of Operations | Note 1 — Nature of Operations | |||
HCI Group, Inc. together with the insurance and non-insurance subsidiaries (“HCI” or the “Company”), is primarily engaged in the property and casualty insurance business through Homeowners Choice Property & Casualty Insurance Company, Inc. (“HCPCI”), its principal operating subsidiary. HCPCI is authorized to underwrite various homeowners’ property and casualty insurance products in the state of Florida. HCPCI’s operations are supported by the following HCI subsidiaries: | ||||
• | Homeowners Choice Managers, Inc. – acts as managing general agent and provides marketing, underwriting, claims settlement, accounting and financial services to HCPCI; | |||
• | Southern Administration, Inc. – provides policy administration services to HCPCI; and | |||
• | Claddaugh Casualty Insurance Company, Ltd. – participates in the reinsurance program to HCPCI. | |||
Homeowners Choice Assurance Company, Inc. was organized and was approved and licensed by the Alabama Department of Insurance in August 2013. During 2014, HCPCI was also approved to underwrite excess and surplus lines insurance products in Maryland, New Jersey, South Carolina, and Virginia. | ||||
In addition, HCI has various subsidiaries primarily engaged in the businesses of owning and leasing real estate, operating marina facilities and one restaurant, and developing software. | ||||
The Company reports its operations under one business segment. | ||||
The Company obtained a majority of its policies through participation in a “take-out program” with Citizens Property Insurance Corporation (“Citizens”), a Florida state supported insurer. Policies were obtained in eleven separate assumption transactions with Citizens that took place from July 2007 through December 2014. The Company is required to offer renewals on the policies acquired for a period of three years subsequent to the initial expiration of the assumed policies. During the first full year after assumption, such renewals are required to have rates that are equivalent to or less than the rates charged by Citizens. The Company’s premium revenue since inception comes from these assumptions and one additional assumption from HomeWise Insurance Company (“HomeWise”) in November 2011 through which the Company acquired the Florida policies of HomeWise. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 — Summary of Significant Accounting Policies |
Basis of Presentation. The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). | |
Principles of Consolidation. The accompanying consolidated financial statements include the accounts of HCI and its majority-owned and controlled subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. In addition, the Company evaluates its relationships or investments for consolidation pursuant to authoritative accounting guidance related to the consolidation of variable interest entities (“VIE”) under the Variable Interest Model prescribed by the Financial Accounting Standards Board (“FASB”). A VIE is consolidated when the Company has the power to direct activities that most significantly impact the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. When a VIE is not consolidated, the Company uses the equity method to account for the investment. Under this method, the carrying value is generally the Company’s share of the net asset value of the unconsolidated entity, and changes in the Company’s share of the net asset value are recorded in net investment income. | |
Use of Estimates. The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ materially from these estimates. Material estimates that are particularly susceptible to significant change in the near term are primarily related to losses and loss adjustment expenses, reinsurance with retrospective provisions, deferred income taxes, and stock-based compensation expense. | |
Cash and Cash Equivalents. The Company considers all short-term highly liquid investments with original maturities of less than three months to be cash and cash equivalents. At December 31, 2014 and 2013, cash and cash equivalents consist of cash on deposit with financial institutions and securities brokerage firms and also includes a $300 statutory deposit held by the State of Florida for the benefit of all policyholders. | |
Investments in Available-for-Sale Securities. Investments consist of fixed-maturity and equity securities. Fixed-maturity securities include debt securities and redeemable preferred stock. Securities may be classified as either trading, held to maturity or available-for-sale. The Company’s available-for-sale securities are carried at fair value. Temporary changes in the fair value of available-for-sale securities are excluded from net investment income and reported in stockholders’ equity as a component of accumulated other comprehensive income, net of deferred income taxes. Realized investment gains and losses from sales are recorded on the trade date and are determined using the first-in first-out (FIFO) method. Investment income is recognized as earned and discounts or premiums arising from the purchase of debt securities are recognized in investment income using the interest method over the estimated remaining term of the security. Gains and losses from call redemptions and repayments are charged to investment income. | |
The Company reviews all securities for other-than-temporary impairment on a quarterly basis and more frequently when economic or market conditions warrant such review. When the fair value of any investment is lower than its cost, an assessment is made to determine whether the decline is temporary or other-than-temporary. If the decline is determined to be other-than-temporary, the investment is written down to fair value and an impairment charge is recognized in income in the period in which the Company makes such determination. For a debt security that the Company does not intend to sell nor is it more likely than not that the Company will be required to sell before recovery of its amortized cost, only the credit loss component of the impairment is recognized in income, while the impairment related to all other factors is recognized in other comprehensive income. The Company considers various factors in determining whether an individual security is other-than-temporarily impaired (see Note 4 — “Investments”). | |
Limited Partnership Investment. The Company has interest in a limited partnership that is not registered under the United Stated Securities Act of 1933, as amended, the securities laws of any state or the securities laws of any other jurisdictions. The partnership interest cannot be resold in the public market and any withdrawal is subject to the terms and conditions of the partnership agreement. The Company has no influence over partnership operating and financial policies. The Company did not elect the fair value option and, therefore, uses the equity method to account for this investment (see Note 4 — “Investments”). The Company will generally recognize its share of the limited partnership’s earnings on a three- to six-month lag. | |
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 4 — “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. | |
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. | |
Real Estate Investments. Real estate investments consist of an acquisition, development and construction loan agreement (“ADC Arrangement”) and also real estate and the related assets purchased for investment purposes (see Note 4 — “Investments”). | |
Under the ADC Arrangement, the Company 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. | |
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. | |
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. | |
Real estate and the related depreciable assets are carried at cost, net of accumulated depreciation, which is included in net investment income and allocated over the estimated useful life of the asset using the straight-line method of depreciation. Real estate is evaluated for impairment when events or circumstances indicate the carrying value of the real estate may not be recoverable. | |
Deferred policy acquisition costs. Deferred policy acquisition costs (“DAC”) primarily represent commissions paid to outside agents at the time of collection of the policy premium and premium taxes and are amortized over the life of the related policy in relation to the amount of gross premiums earned. | |
The method followed in computing DAC limits the amount of such deferred costs to their estimated realizable value, which gives effect to the gross premium earned, related investment income, unpaid losses and LAE and certain other costs expected to be incurred as the premium is earned. | |
DAC is reviewed to determine if it is recoverable from future income, including investment income. If such costs are determined to be unrecoverable, they are expensed at the time of determination. The amount of DAC considered recoverable could be reduced in the near term if the estimates of total revenues discussed above are reduced or permanently impaired as a result of the disposition of a line of business. The amount of amortization of DAC could be revised in the near term if any of the estimates discussed above are revised. | |
Property and Equipment. Property and equipment is stated at cost less accumulated depreciation and amortization, which is included in other operating expenses. Depreciation is calculated on a straight-line basis over the estimated useful lives as follows: building 39 years; computer hardware and software 3 years; office and furniture equipment 3 to 7 years. Leasehold improvements are amortized over the shorter of the lease term or the asset’s useful life. Expenditures for improvements are capitalized to the property accounts. Replacements and maintenance and repairs that do not improve or extend the life of the respective assets are expensed as incurred. | |
Impairment of Long-Lived Assets. Long-lived assets, such as property and equipment, are reviewed for impairment annually or whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. The Company assesses the recoverability of long-lived assets by determining whether the assets can be recovered from undiscounted future cash flows. Recoverability of long-lived assets is dependent upon, among other things, the Company’s ability to maintain profitability, so as to be able to meet its obligations when they become due. In the opinion of management, based upon current information and projections, long-lived assets will be recovered over the period of benefit. | |
Long-Term Debt. Long-term debt is generally classified as a liability and carried at amortized cost, net of any discount. At issuance, a debt instrument with embedded features such as conversion and redemption options is evaluated to determine whether bifurcation and derivative accounting is applicable. If such instrument is not subject to derivative accounting, it is further evaluated to determine if the Company is required to separately account for the liability and equity components. | |
To determine the carrying values of the liability and equity components at issuance, the Company measures the fair value of a similar liability, including any embedded features other than the conversion option, and assigns such value to the liability component. The liability component’s fair value is then subtracted from the initial proceeds to determine the carrying value of the debt instrument’s equity component, which is included in additional paid-in capital. | |
Any embedded feature other than the conversion option is evaluated at issuance to determine if it is probable that such embedded feature will be exercised. If the Company concludes that the exercisability of that embedded feature is not probable, the embedded feature is considered to be nonsubstantive and would not impact the initial measurement and expected life of the debt instrument’s liability component. | |
Transaction costs related to issuing a debt instrument that embodies both liability and equity components are allocated to the liability and equity components in proportion to the allocation of the proceeds and accounted for as debt issuance costs and equity issuance costs, respectively. Debt issuance costs are recognized in other assets. Both debt discount and deferred debt issuance costs are amortized to interest expense over the expected life of the debt instrument using the effective interest method. Equity issuance costs are a reduction to the proceeds allocated to the equity component. | |
Prepaid Share Repurchase Forward Contract. A prepaid share repurchase forward contract is generally a contract that allows the Company to buy from the counterparty a specified number of common shares at a specific time at a given forward price. The Company entered into such a contract in December 2013 and evaluated the characteristics of the forward contract to determine whether it met the definition of a derivative financial instrument pursuant to U.S. GAAP. The Company determined the forward contract is an equity contract on the Company’s common shares requiring physical settlement in common shares of the Company. As such, the transaction is recognized as a component of stockholders’ equity with a charge to additional paid-in capital equal to the prepayment amount, which represents the cash paid to the counterparty. There will be no recognition in earnings for changes in fair value in subsequent periods. | |
Losses and Loss Adjustment Expenses. Reserves for losses and loss adjustment expenses (“LAE”) are determined by establishing liabilities in amounts estimated to cover incurred losses and LAE. Such reserves are determined based on the assessment of claims reported and the development of pending claims. These reserves are based on individual case estimates for the reported losses and LAE and estimates of such amounts that are incurred but not reported. Changes in the estimated liability are charged or credited to income as the losses and LAE are settled. | |
The estimates of unpaid losses and LAE are subject to trends in claim severity and frequency and are continually reviewed. As part of the process, the Company reviews historical data and considers various factors, including known and anticipated regulatory and legal developments, changes in social attitudes, inflation and economic conditions. As experience develops and other data becomes available, these estimates are revised, as required, resulting in increases or decreases to the existing unpaid losses and LAE. Adjustments are reflected in the results of operations in the period in which they are made and the liabilities may deviate substantially from prior estimates. | |
Advance Premiums. Premium payments received prior to the policy effective date are recorded as advance premiums. Once the policy is in force, the premiums are recorded as described under “Premium Revenue” below. | |
Reinsurance. In the normal course of business, the Company seeks to reduce the loss that may arise from catastrophes or other events that cause unfavorable underwriting results by reinsuring certain levels of risk in various areas of exposure with other insurance enterprises or reinsurers. 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 each year taking into consideration probable maximum losses and reinsurance market conditions. Amounts recoverable from reinsurers would be estimated in a manner consistent with the applicable reinsurance contract(s). Reinsurance premiums and reserves related to reinsured business are accounted for on a basis consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Premiums ceded to other companies have been reported as a reduction of gross premiums earned. Prepaid reinsurance premiums represent the unexpired portion of premiums ceded to reinsurers. | |
Certain of the Company’s current contracts contain retrospective provisions including terms and conditions that adjust premiums, increase the amount of future coverage, or result in profit commissions based on the loss experience under the contracts. In such cases, a with-and-without method is used to estimate the asset or liability amount to be recognized at each reporting date. The amount of the estimate is the difference between the net contract costs before and after the loss experience under the contract. Estimates related to premium adjustments, profit commissions and coverage changes are recognized in ceded premiums earned. These estimates are reviewed monthly based on the loss experience to date and as adjustments become necessary. Such adjustments are reflected in the Company’s current operations and recorded in other assets until received upon the expiration of the contracts. | |
Premium Revenue. Premium revenue is earned on a daily pro-rata basis over the term of the policies and is included in gross premiums earned. Unearned premiums represent the portion of the premium related to the unexpired policy term. The Company reviews its policy detail and establishes an allowance for any amount outstanding for more than 90 days. As of December 31, 2014 and 2013, there was no allowance required. | |
Policy Fees. Policy fees represent nonrefundable fees for insurance coverage, which are intended to reimburse a portion of the costs incurred to underwrite the policy. Effective October 1, 2013 on a prospective basis, policy fees are recognized ratably over the policy coverage period. Prior to October 1, 2013, the fees were recognized in income when the policy was written on the basis that the revenues were appropriately matched to the Company’s incremental direct costs related to policy underwriting. | |
Florida Insurance Guaranty Association Assessments. The Company may be assessed by the state guaranty association. The assessments are intended to be used for the payment of covered claims of insolvent insurance entities. The assessments are generally based on a percentage of premiums written during or following the year of insolvency. Liabilities are recognized when the assessments are probable to be imposed on the premiums on which they are expected to be based and the amounts can be reasonably estimated. The Company is permitted by Florida statutes to recover the entire amount of assessments from in-force and future policyholders through policy surcharges. U.S. GAAP provides that the Company should record an asset based on the amount of written or obligated-to-write premiums and limited to the amounts recoverable over the life of the in-force policies. | |
Foreign Currency. The functional currency of the Company’s Indian subsidiary is the U.S. dollar. As such, the monetary assets and liabilities of this subsidiary are remeasured into U.S. dollars at the exchange rate in effect on the balance sheet date. Non-monetary assets and liabilities are remeasured using historical rates. Expenses recorded in the local currency are remeasured at the prevailing exchange rate. Exchange gains and losses resulting from these remeasurements are included in other operating expenses. | |
Income Taxes. The Company files consolidated federal and state income tax returns and allocates taxes among its wholly owned subsidiaries in accordance with a written tax-allocation agreement. | |
The Company accounts for income taxes in accordance with U.S. GAAP, resulting in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. | |
Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term “more likely than not” means a likelihood of more than fifty percent; the terms “examined” and “upon examination” also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. As of December 31, 2014, management is not aware of any uncertain tax positions that would have a material effect on the Company’s consolidated financial statements. | |
Fair Value of Financial Instruments. The carrying amounts for the Company’s cash and cash equivalents approximate their fair values at December 31, 2014 and 2013. Fair values for securities are based on the framework for measuring fair value established by U.S. GAAP (see Note 5 — “Fair Value Measurements”). | |
Stock-Based Compensation. The Company accounts for stock-based compensation under the fair value recognition provisions of U.S. GAAP which requires the measurement and recognition of compensation for all stock-based awards made to employees and directors including stock options and restricted stock issuances based on estimated fair values. In accordance with U.S. GAAP, the fair value of stock-based awards is generally recognized as compensation expense over the requisite service period, which is defined as the period during which an employee is required to provide service in exchange for an award. The Company uses a straight-line attribution method for all grants that include only a service condition. The Company’s restricted stock awards include service, market and performance conditions. As a result, restricted stock grants with market condition are expensed over the derived service period for each separately vesting tranche. For awards with performance conditions, the Company recognizes compensation expense over the requisite service period when it is probable that the performance condition will be achieved. Compensation expense related to all awards is included in other operating expense. | |
Basic and diluted earnings per common share. Basic earnings per common share is computed by dividing net income attributable to common stockholders by the weighted-average number of common shares outstanding for the period. U.S. GAAP requires the inclusion of restricted stock as participating securities since holders of the Company’s restricted stock have the right to share in dividends, if declared, equally with common stockholders. During periods of net income, participating securities are allocated a proportional share of net income determined by dividing total weighted-average participating securities by the sum of total weighted-average common shares and participating securities (the “two-class method”). Diluted earnings per common share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted as well as participating equities. See Note 13 — “Earnings Per Share” for potentially dilutive securities at December 31, 2014, 2013 and 2012. | |
Reclassifications. Certain reclassifications of prior year amounts have been made to conform to the current year presentation. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Note 3 — 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 | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||
Investments | Note 4 — Investments | ||||||||||||||||||||||||
The Company holds investments in fixed-maturity securities and equity securities that are classified as available-for-sale. At December 31, 2014 and 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 December 31, 2014 | |||||||||||||||||||||||||
Fixed-maturity securities | |||||||||||||||||||||||||
U.S. Treasury and U.S. government agencies | $ | 3,747 | $ | 9 | $ | (8 | ) | $ | 3,748 | ||||||||||||||||
Corporate bonds | 24,342 | 57 | (430 | ) | 23,969 | ||||||||||||||||||||
Mortgage-backed securities | 2,138 | 4 | (3 | ) | 2,139 | ||||||||||||||||||||
State, municipalities, and political subdivisions | 56,336 | 1,205 | (38 | ) | 57,503 | ||||||||||||||||||||
Redeemable preferred stock | 9,433 | 178 | (54 | ) | 9,557 | ||||||||||||||||||||
Other | 167 | 1 | — | 168 | |||||||||||||||||||||
Total | 96,163 | 1,454 | (533 | ) | 97,084 | ||||||||||||||||||||
Equity securities | 45,387 | 1,694 | (1,531 | ) | 45,550 | ||||||||||||||||||||
Total available-for-sale securities | $ | 141,550 | $ | 3,148 | $ | (2,064 | ) | $ | 142,634 | ||||||||||||||||
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 | ||||||||||||||||||||
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 | ||||||||||||||||
At December 31, 2014 and 2013, $113 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 at December 31, 2014 and 2013 are as follows: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Amortized | Estimated | Amortized | Estimated | ||||||||||||||||||||||
Cost | Fair | Cost | Fair | ||||||||||||||||||||||
Value | Value | ||||||||||||||||||||||||
Available-for-sale | |||||||||||||||||||||||||
Due in one year or less | $ | 715 | $ | 721 | $ | 2,366 | $ | 2,381 | |||||||||||||||||
Due after one year through five years | 25,973 | 26,093 | 24,829 | 25,145 | |||||||||||||||||||||
Due after five years through ten years | 57,157 | 57,560 | 59,083 | 59,582 | |||||||||||||||||||||
Due after ten years | 10,180 | 10,571 | 13,531 | 13,711 | |||||||||||||||||||||
Mortgage-backed securities | 2,138 | 2,139 | 10,929 | 11,332 | |||||||||||||||||||||
$ | 96,163 | $ | 97,084 | $ | 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 years ended December 31, 2014, 2013 and 2012 were as follows: | |||||||||||||||||||||||||
Proceeds | Gross | Gross | |||||||||||||||||||||||
Realized | Realized | ||||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||||||||||
Fixed-maturity securities | $ | 98,365 | $ | 4,096 | $ | (98 | ) | ||||||||||||||||||
Equity securities | $ | 16,810 | $ | 1,372 | $ | (635 | ) | ||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||||||
Fixed-maturity securities | $ | 1,749 | $ | 92 | $ | (4 | ) | ||||||||||||||||||
Equity securities | $ | 2,809 | $ | 155 | $ | (163 | ) | ||||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||||||
Fixed-maturity securities | $ | 8,991 | $ | 421 | $ | (6 | ) | ||||||||||||||||||
Equity securities | $ | 1,735 | $ | 91 | $ | (230 | ) | ||||||||||||||||||
Other-than-temporary Impairment | |||||||||||||||||||||||||
The Company regularly reviews its individual investment securities for other-than-temporary impairment. 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 December 31, 2014 and 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 Months | Twelve Months or | Total | |||||||||||||||||||||||
Greater | |||||||||||||||||||||||||
Gross | Estimated | Gross | Estimated | Gross | Estimated | ||||||||||||||||||||
Unrealized | Fair | Unrealized | Fair | Unrealized | Fair | ||||||||||||||||||||
Loss | Value | Loss | Value | Loss | Value | ||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||
Fixed-maturity securities | |||||||||||||||||||||||||
U.S. treasury and U.S. government agencies | $ | (8 | ) | $ | 2,485 | $ | — | $ | — | $ | (8 | ) | $ | 2,485 | |||||||||||
Corporate bonds | (428 | ) | 12,929 | (2 | ) | 998 | (430 | ) | 13,927 | ||||||||||||||||
Mortgage-backed securities | (3 | ) | 1,018 | — | — | (3 | ) | 1,018 | |||||||||||||||||
State, municipalities, and political subdivisions | (19 | ) | 3,144 | (19 | ) | 202 | (38 | ) | 3,346 | ||||||||||||||||
Redeemable preferred stock | (54 | ) | 2,586 | — | — | (54 | ) | 2,586 | |||||||||||||||||
Total fixed-maturity securities | (512 | ) | 22,162 | (21 | ) | 1,200 | (533 | ) | 23,362 | ||||||||||||||||
Equity securities | (1,449 | ) | 18,848 | (82 | ) | 4,619 | (1,531 | ) | 23,467 | ||||||||||||||||
Total available-for-sale securities | $ | (1,961 | ) | $ | 41,010 | $ | (103 | ) | $ | 5,819 | $ | (2,064 | ) | $ | 46,829 | ||||||||||
At December 31, 2014, there were 94 securities in an unrealized loss position. Of these securities, 9 securities had been in an unrealized loss position for 12 months or greater. | |||||||||||||||||||||||||
Less Than Twelve Months | Twelve Months or | Total | |||||||||||||||||||||||
Greater | |||||||||||||||||||||||||
Gross | Estimated | Gross | Estimated | Gross | Estimated | ||||||||||||||||||||
Unrealized | Fair | Unrealized | Fair | Unrealized | Fair | ||||||||||||||||||||
Loss | Value | Loss | Value | Loss | Value | ||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
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 | ||||||||||||||||
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 | ||||||||||
At December 31, 2013, there were 100 securities in an unrealized loss position. Of these securities, 8 securities had been in an unrealized loss position for 12 months or greater. | |||||||||||||||||||||||||
Based on the review, the Company believes the unrealized losses on investments in fixed-maturity securities were caused by interest rate changes. Because the decline in fair value is attributable to changes in interest rates or market conditions and not credit quality, and because the Company has the ability and intent to hold these securities and it is not more likely than not that the Company will be required to sell these securities until a market price recovery or maturity, the Company does not consider any of its fixed-maturity securities to be other-than-temporarily impaired at December 31, 2014 and 2013. | |||||||||||||||||||||||||
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. In the fourth quarter of 2014, the Company determined that one equity security was other-than-temporarily impaired after considering the length of time this security had been in an unrealized loss position, the extent of the decline and its near term prospect of recovery. As a result, the Company recognized an impairment charge of $107 in net investment income. | |||||||||||||||||||||||||
Limited Partnership Investment | |||||||||||||||||||||||||
During the fourth quarter of 2014, the Company entered into a subscription agreement to invest up to a maximum of $12,500 for a 16.5% limited partnership interest. The primary investment strategy of the partnership is to invest in senior secured loans and, to a limited extent, in other debt and equity securities of private U.S. lower-middle-market companies. Except under certain circumstances, the Company is not permitted to withdraw any amount of its capital investment for a minimum of 10 years. The Company’s involvement is limited to that of a passive investor. As such, the Company is not the primary beneficiary and does not consolidate the partnership. For the year ended December 31, 2014, the Company recognized a $90 investment loss in net investment income. At December 31, 2014, the Company’s contributed capital to the partnership is $2,640 and its carrying value and maximum exposure to loss is $2,550. | |||||||||||||||||||||||||
Investment in Joint Venture | |||||||||||||||||||||||||
In September 2014, Melbourne FMA, LLC, a wholly owned subsidiary, entered into a joint venture agreement with FMKT Sponsor, LLC to organize FMKT Mel JV, LLC (“FMJV”), a Florida limited liability company. Melbourne FMA and FMKT Sponsor contributed cash of $4,500 and $500, respectively, for equity interests in FMJV of 90% and 10%, respectively. 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 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. | |||||||||||||||||||||||||
At December 31, 2014, the Company’s maximum exposure to loss relating to the VIE was $4,477 representing the carrying value of the investment. At December 31, 2014, an undistributed $23 loss from equity method investees was included in consolidated retained income. The joint venture partners received no distributions during 2014. The following tables provide summarized operating results and the financial position of FMJV: | |||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
Operating results: | |||||||||||||||||||||||||
Revenue | $ | — | |||||||||||||||||||||||
Operating expenses | 25 | ||||||||||||||||||||||||
Net loss | $ | (25 | ) | ||||||||||||||||||||||
Melbourne FMA’s share of net loss* | $ | (23 | ) | ||||||||||||||||||||||
* | Included in net investment income in the Company’s consolidated statements of income. | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
Balance Sheet: | |||||||||||||||||||||||||
Construction in progress - real estate | $ | 3,612 | |||||||||||||||||||||||
Cash | 1,323 | ||||||||||||||||||||||||
Other | 40 | ||||||||||||||||||||||||
Total assets | $ | 4,975 | |||||||||||||||||||||||
Other liabilities | — | ||||||||||||||||||||||||
Members’ capital | 4,975 | ||||||||||||||||||||||||
Total liabilities and members’ capital | $ | 4,975 | |||||||||||||||||||||||
Investment in joint venture, at equity | $ | 4,477 | |||||||||||||||||||||||
Real Estate Investments | |||||||||||||||||||||||||
Real estate investments consist of the ADC Arrangement and the Company’s real estate portfolio and the related assets of the marina and restaurant facilities. Operating activities related to the Company’s real estate investments include leasing of office and retail space to tenants, wet and dry boat storage, a restaurant, and fuel services with respect to marina clients and recreational boaters. | |||||||||||||||||||||||||
Real estate investments consist of the following as of December 31, 2014 and 2013: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Land | $ | 11,476 | $ | 11,299 | |||||||||||||||||||||
Land improvements | 1,425 | 1,351 | |||||||||||||||||||||||
Building | 3,097 | 3,022 | |||||||||||||||||||||||
Other | 1,359 | 1,262 | |||||||||||||||||||||||
Total, at cost | 17,357 | 16,934 | |||||||||||||||||||||||
Less: accumulated depreciation and amortization | (1,107 | ) | (706 | ) | |||||||||||||||||||||
Real estate, net | 16,250 | 16,228 | |||||||||||||||||||||||
ADC Arrangement classified as real estate investment | 2,888 | — | |||||||||||||||||||||||
Real estate investments | $ | 19,138 | $ | 16,228 | |||||||||||||||||||||
Depreciation and amortization expense for other investments was $402, $388 and $279, respectively, for the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||||||||||||
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 December 31, 2014, the Company’s maximum exposure to loss relating to the VIE was $2,888 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. | |||||||||||||||||||||||||
Net Investment Income (Loss) | |||||||||||||||||||||||||
Net investment income (loss), by source, is summarized as follows: | |||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||
Fixed-maturity securities | $ | 3,339 | $ | 1,868 | $ | 1,464 | |||||||||||||||||||
Equity securities | 2,364 | 499 | 492 | ||||||||||||||||||||||
Other-than-temporary impairment charge | (107 | ) | — | — | |||||||||||||||||||||
Investment expense | (436 | ) | (210 | ) | (150 | ) | |||||||||||||||||||
Limited partnership investment | (90 | ) | — | — | |||||||||||||||||||||
Time deposits | — | — | 357 | ||||||||||||||||||||||
Real estate investments | (955 | ) | (1,045 | ) | (1,334 | ) | |||||||||||||||||||
Cash and cash equivalents | 666 | 357 | 151 | ||||||||||||||||||||||
$ | 4,781 | $ | 1,469 | $ | 980 | ||||||||||||||||||||
At December 31, 2014, $234,025 or 74.4% of the Company’s cash and cash equivalents were deposited at three national banks and included $48,674 in three custodial accounts. At December 31, 2013, $241,378 or 82.3% of the Company’s cash and cash equivalents were deposited at three national banks and included $22,252 in two custodial accounts. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value Measurements | Note 5 — Fair Value Measurements | ||||||||||||||||
The Company records and discloses certain financial assets at their estimated fair value. 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. | |||||||||||||||||
Level 2 – Other inputs that are observable for the asset, either directly or indirectly. | |||||||||||||||||
Level 3 – Inputs that are unobservable. | |||||||||||||||||
Valuation Methodology | |||||||||||||||||
Cash and cash equivalents | |||||||||||||||||
Cash and cash equivalents primarily consist of money-market funds. Their carrying value approximates fair value due to the short maturity and high liquidity of these funds. | |||||||||||||||||
Available-for-sale securities | |||||||||||||||||
Estimated fair values of the Company’s available-for-sale securities are determined in accordance with U.S. GAAP, using valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Fair values are generally measured using quoted prices in active markets for identical securities or other inputs that are observable either directly or indirectly, such as quoted prices for similar securities. In those instances where observable inputs are not available, fair values are measured using unobservable inputs. Unobservable inputs reflect the Company’s own assumptions about the assumptions that market participants would use in pricing the security and are developed based on the best information available in the circumstances. Fair value estimates derived from unobservable inputs are significantly affected by the assumptions used, including the discount rates and the estimated amounts and timing of future cash flows. The derived fair value estimates cannot be substantiated by comparison to independent markets and are not necessarily indicative of the amounts that would be realized in a current market exchange. | |||||||||||||||||
The estimated fair values for securities that do not trade on a daily basis are determined by management, utilizing prices obtained from an independent pricing service and information provided by brokers. Management reviews the assumptions and methods utilized by the pricing service and then compares the relevant data and pricing to broker-provided data. The Company gains assurance of the overall reasonableness and consistent application of the assumptions and methodologies and compliance with accounting standards for fair value determination through ongoing monitoring of the reported fair values. | |||||||||||||||||
ADC Arrangement Classified as Real Estate Investment | |||||||||||||||||
As described in Note 4 — “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. | |||||||||||||||||
Limited Partnership Investment | |||||||||||||||||
As described in Note 4 — “Investments” under Limited Partnership Investment, the Company entered into a subscription agreement to invest up to a maximum of $12,500 for a 16.5% limited partnership interest. The initial contribution was made in December 2014. Valuation of the Company’s limited partnership interest will be based upon the net asset value provided by the fund manager. The net asset value will be on a three- to six-month lag and was not available as of December 31, 2014 as the partnership was newly formed during the quarter ended December 31, 2014. | |||||||||||||||||
Long-term debt | |||||||||||||||||
Long-term debt includes the Company’s 8% senior notes due 2020 and 3.875% convertible senior notes due 2019. The 8% senior notes were initially sold to the public in January 2013 and trade on the New York Stock Exchange. The estimated fair value of the 8% senior notes is based on the closing market price on December 31, 2014. The 3.875% convertible senior notes were sold in a private offering completed on December 30, 2013. The fair value of the 3.875% convertible senior notes is estimated using a discounted cash flow method that relies on Level 3 inputs. | |||||||||||||||||
Assets Measured at Estimated Fair Value on a Recurring Basis: | |||||||||||||||||
The following tables present information about the Company’s financial assets measured at estimated fair value on a recurring basis. The table indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as of December 31, 2014 and 2013: | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||
As of December 31, 2014 | |||||||||||||||||
Financial Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 314,716 | $ | — | $ | — | $ | 314,716 | |||||||||
Fixed-maturity securities: | |||||||||||||||||
U.S. Treasury and U.S. government agencies | 1,069 | 2,679 | — | 3,748 | |||||||||||||
Corporate bonds | 22,274 | 1,695 | — | 23,969 | |||||||||||||
Mortgage-backed securities | — | 2,139 | — | 2,139 | |||||||||||||
State, municipalities, and political subdivisions | — | 57,503 | — | 57,503 | |||||||||||||
Redeemable preferred stock | 9,557 | — | — | 9,557 | |||||||||||||
Other | — | 168 | — | 168 | |||||||||||||
Total fixed-maturity securities | 32,900 | 64,184 | — | 97,084 | |||||||||||||
Equity securities | 45,550 | — | — | 45,550 | |||||||||||||
Total available-for-sale securities | 78,450 | 64,184 | — | 142,634 | |||||||||||||
Total | $ | 393,166 | $ | 64,184 | $ | — | $ | 457,350 | |||||||||
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 | |||||||||||||
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 | |||||||||
There were no transfers between Level 1, 2 or 3 during the year ended December 31, 2014. During the second quarter of 2013, the Company analyzed its investment portfolio and determined the municipal bonds, which were previously classified as Level 1, should be classified as Level 2 based on the inputs used to measure fair value and the level of market activity in those instruments. As such, transfers into Level 2 from Level 1 were $10,684 during the year ended December 31, 2013. | |||||||||||||||||
Assets and Liabilities Carried at Other Than Fair Value | |||||||||||||||||
The following tables present fair value information for assets and liabilities that are carried on the balance sheet at amounts other than fair value as of December 31, 2014 and 2013: | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||
As of December 31, 2014 | |||||||||||||||||
Financial Assets: | |||||||||||||||||
ADC Arrangement classified as real estate investment | $ | — | $ | — | $ | 2,835 | $ | 2,835 | |||||||||
Financial Liabilities: | |||||||||||||||||
Long-term debt: | |||||||||||||||||
8% Senior notes | $ | — | $ | 42,955 | $ | — | $ | 42,955 | |||||||||
3.875% Convertible senior notes | — | — | 93,367 | 93,367 | |||||||||||||
Total long-term debt | $ | — | $ | 42,955 | $ | 93,367 | $ | 136,322 | |||||||||
Fair Value Measurements Using | |||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||
As of December 31, 2013 | |||||||||||||||||
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 | |||||||||
Deferred_Policy_Acquisition_Co
Deferred Policy Acquisition Costs | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Insurance [Abstract] | |||||||||
Deferred Policy Acquisition Costs | Note 6 — Deferred Policy Acquisition Costs | ||||||||
The following table summarizes the activity with respect to deferred policy acquisition costs: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Beginning balance | $ | 14,071 | $ | 10,032 | |||||
Policy acquisition costs deferred | 33,861 | 31,097 | |||||||
Amortization | (32,918 | ) | (27,058 | ) | |||||
Ending balance | $ | 15,014 | $ | 14,071 | |||||
The amount of policy acquisition costs amortized and included in policy acquisition and other underwriting expenses for the years ended December 31, 2014, 2013 and 2012 was $32,918, $27,058 and $18,273, respectively. |
Property_and_Equipment_net
Property and Equipment, net | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property and Equipment, net | Note 7 — Property and Equipment, net | ||||||||
Property and equipment, net consists of the following: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Land | $ | 1,642 | $ | 1,642 | |||||
Building | 7,622 | 7,596 | |||||||
Computer hardware and software | 1,617 | 1,486 | |||||||
Office furniture and equipment | 1,647 | 1,407 | |||||||
Tenant and leasehold improvements | 3,093 | 3,093 | |||||||
Other | 691 | 629 | |||||||
Total, at cost | 16,312 | 15,853 | |||||||
Less: accumulated depreciation and amortization | (4,020 | ) | (2,721 | ) | |||||
Property and equipment, net | $ | 12,292 | $ | 13,132 | |||||
In February 2013, the Company purchased real estate in Ocala, Florida for a total purchase price of $2,002. At acquisition, the real estate consisted of 1.6 acres of land and a vacant office building with rentable area of approximately 16,000 square feet. The facility is currently used by the Company’s insurance operations and, also, as an alternative location in the event a catastrophic event impacts the Company’s home office and other support operations. | |||||||||
Depreciation and amortization expense under property and equipment was $1,304, $1,151 and $848, respectively, for the years ended December 31, 2014, 2013 and 2012. |
Other_Assets
Other Assets | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||
Other Assets | Note 8 — Other Assets | ||||||||
The following table summarizes the Company’s other assets: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Benefits receivable related to retrospective reinsurance contracts | $ | 28,123 | $ | 8,815 | |||||
Deferred costs related to retrospective reinsurance contracts | 473 | 194 | |||||||
Deferred offering costs on senior notes issued in 2013 | 3,653 | 4,305 | |||||||
Prepaid expenses | 1,444 | 771 | |||||||
Other | 1,594 | 1,729 | |||||||
Total other assets | $ | 35,287 | $ | 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 | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Long-Term Debt | Note 9 — Long-Term Debt | ||||||||
The following table summarizes the Company’s long-term debt: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
8% Senior Notes, due January 30, 2020 | $ | 40,250 | $ | 40,250 | |||||
3.875% Convertible Senior Notes, due March 15, 2019* | 89,289 | 86,682 | |||||||
Total long-term debt | $ | 129,539 | $ | 126,932 | |||||
* | net carrying value | ||||||||
8% Senior Notes | |||||||||
On January 17, 2013, the Company completed the sale of unsecured senior notes in a public offering for an aggregate principal amount of $35,000. In addition, effective January 25, 2013, the Company received an aggregate principal amount of $5,250 pursuant to the underwriters’ exercise of the over-allotment option. The offering was made pursuant to the Company’s effective registration statement on Form S-3, as amended (Registration Statement No. 333-185228) and the prospectus supplement dated January 10, 2013. The combined net proceeds were $38,690 after underwriting and issuance costs of approximately $1,560, of which $1,525 was paid during the year ended December 31, 2013. The notes will mature on January 30, 2020 and bear interest at a fixed annual rate of 8% payable quarterly on January 30, April 30, July 30 and October 30, commencing on April 30, 2013. The notes may be redeemed, in whole or in part, at any time on and after January 30, 2016 upon not less than 30 or more than 60 days’ notice. The redemption price will be equal to 100% of the principal amount redeemed plus accrued and unpaid interest. Additionally, the Company may, at any time, repurchase the senior notes at any price in the open market and may hold, resell or surrender the notes for cancellation. | |||||||||
The senior notes rank on parity with all of the Company’s other existing and future senior unsecured obligations. In addition, to the extent the senior notes are unsecured, they also rank junior in right of payment to any secured debt that the Company may have outstanding to the extent of the value of the assets securing such debt. | |||||||||
The senior notes contain customary restrictive covenants relating to merger, modification of the indenture, subordination, issuance of debt securities and sale of assets, the most significant of which include limitations with respect to certain designated subsidiaries on the incurrence of additional indebtedness or guarantees secured by any security interest on any shares of their capital stock. The senior note covenants also limit the Company’s ability to sell or otherwise dispose of any shares of capital stock of such designated subsidiaries. The senior note covenants do not contain any restrictions on the Company’s payment or declaration of dividends nor require a sinking fund to be established for the purpose of redemption. | |||||||||
Interest expense with respect to the senior notes was approximately $3,403 and $3,228, respectively, for the years ended December 31, 2014 and 2013 and included amortization of debt issuance costs of approximately $182 and $159, respectively. The effective interest rate, taking into account the stated interest expense and amortization of debt issuance costs, approximates 8.7%. | |||||||||
3.875% Convertible Senior Notes | |||||||||
On December 11, 2013, the Company issued 3.875% Convertible Senior Notes (the “Convertible Notes”) in a private offering for an aggregate principal amount of $100,000. In addition, pursuant to the over-allotment option exercised by the underwriters, the Company received an aggregate principal amount of $3,000 on December 30, 2013. The aggregate net proceeds of the Convertible Notes were $99,514, after $3,486 in related issuance and transaction costs. The Convertible Notes rank equally in right of payment to the Company’s existing and future unsecured and unsubordinated obligations. The Convertible Notes bear interest at a rate of 3.875% per year, payable semiannually in arrears on March 15 and September 15 of each year. The Convertible Notes will mature on March 15, 2019 unless repurchased or converted prior to such date. The Company may not redeem the Convertible Notes prior to maturity unless requested by the note holders under certain events specified in the indenture. | |||||||||
The Convertible Notes do not contain any financial or operating covenants or restrictions on the payments of dividends, the incurrence of indebtedness or the issuance or repurchase of securities by the Company or any of its subsidiaries. The Convertible Notes provide no protection to the note holders in the event of a fundamental change or other corporate transaction involving the Company except those described in the indenture to the Convertible Notes. The Convertible Notes do not require a sinking fund to be established for the purpose of redemption. | |||||||||
In conjunction with the issuance of the Convertible Notes, the Company entered into a prepaid stock repurchase forward contract and used $29,923 of the net proceeds from the Convertible Notes offering to repurchase the Company’s common stock. See Note 14 — “Stockholders’ Equity” for the effect of the repurchase forward contract on earnings per share. | |||||||||
For the years ended December 31, 2014 and 2013, interest expense applicable to the Convertible Notes included the contractual interest coupon, discount amortization and amortization of allocated issuance costs aggregating $7,050 and $379, respectively, the amounts of which included non-cash interest expense of $3,070 and $164. The effective interest rate, taking into account both cash and non-cash components, approximates 8.3%. As of December 31, 2014, the remaining amortization period of the debt discount was expected to be 4.2 years. | |||||||||
The following table summarizes information regarding the equity and liability components of the Convertible Notes: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Principal amount | $ | 103,000 | $ | 103,000 | |||||
Unamortized discount | (13,711 | ) | (16,318 | ) | |||||
Liability component – net carrying value | $ | 89,289 | $ | 86,682 | |||||
Equity component – conversion, net of offering costs | $ | 15,900 | $ | 15,900 | |||||
Embedded Conversion Feature | |||||||||
Each $1 of principal of the Convertible Notes will initially be convertible into 16.0090 shares of common stock, which is the equivalent of approximately $62.47 per share, subject to adjustment upon the occurrence of specified events but will not be adjusted for any accrued and unpaid interest. The note holders may convert all or a portion of their Convertible Notes during specified periods as follows: (1) during any calendar quarter commencing after the calendar quarter ending on March 31, 2014, if the last reported sale price of the Company’s common stock for at least 20 trading days during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than 130% of the conversion price on each applicable trading day; (2) during the five business-day period after any ten consecutive trading-day period in which the trading price per $1 principal amount of the Convertible Notes is less than 98% of the product of the last reported sale price and the conversion rate on each such trading day; (3) if specified corporate events, including a change in control, occur; or (4) at any time on or after January 1, 2019. | |||||||||
The note holders who elect to convert their Convertible Notes in connection with a fundamental change as described in the indenture will be entitled to a “make-whole” adjustment in the form of an increase in the conversion rate. Upon conversion, the Company has options to satisfy its conversion obligation by paying or delivering cash, shares of its common stock or a combination of cash and shares of its common stock. As of December 31, 2014, none of the conditions allowing the note holders to convert had been met. | |||||||||
The Company determined that the embedded conversion feature is not a derivative financial instrument but rather is required to be separately accounted for in equity because the Company may elect to settle the conversion option entirely or partially in cash. At issuance, the Company accounted for the equity component of the embedded conversion feature, which amounted to $16,457, as a reduction in the carrying amount of the debt and an increase in additional paid-in capital. The increase in additional paid-in capital was offset in part by $557 in related transaction costs. | |||||||||
Embedded Redemption Feature | |||||||||
The note holders also have the right to require the Company to repurchase for cash all or any portion of the Convertible Notes at par prior to the maturity date should any of the fundamental change events described in the indenture occur. The Company concluded that the embedded redemption feature is not a derivative financial instrument and that it is not probable at issuance that any of the specified fundamental change events will occur. Therefore, the embedded redemption feature is not substantive and will not affect the expected life of the liability component. |
Reinsurance
Reinsurance | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Insurance [Abstract] | |||||||||||||
Reinsurance | Note 10 — Reinsurance | ||||||||||||
The Company cedes a portion of its homeowners insurance exposure to other entities under catastrophe excess of loss reinsurance treaties. The Company remains liable with respect to claims payments in the event that any of its reinsurers are unable to meet their 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 each year taking into consideration maximum projected losses and reinsurance market conditions. | |||||||||||||
The impact of the catastrophe excess of loss reinsurance treaties on premiums written and earned is as follows: | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Premiums Written: | |||||||||||||
Direct | $ | 341,685 | $ | 315,695 | $ | 205,839 | |||||||
Assumed | 65,968 | 39,076 | 73,340 | ||||||||||
Gross written | 407,653 | 354,771 | 279,179 | ||||||||||
Ceded | (113,423 | ) | (102,865 | ) | (75,939 | ) | |||||||
Net premiums written | $ | 294,230 | $ | 251,906 | $ | 203,240 | |||||||
Premiums Earned: | |||||||||||||
Direct | $ | 332,175 | $ | 273,037 | $ | 168,937 | |||||||
Assumed | 33,313 | 64,076 | 64,670 | ||||||||||
Gross earned | 365,488 | 337,113 | 233,607 | ||||||||||
Ceded | (113,423 | ) | (102,865 | ) | (75,939 | ) | |||||||
Net premiums earned | $ | 252,065 | $ | 234,248 | $ | 157,668 | |||||||
During the years ended December 31, 2014, 2013 and 2012, there were no recoveries pertaining to reinsurance contracts that were deducted from losses incurred. There were 28 reinsurers at December 31, 2014 and 27 reinsurers at December 31, 2013, respectively, participating in the Company’s reinsurance program. There were no amounts receivable with respect to reinsurers at December 31, 2014 and 2013. Thus, there were no concentrations of credit risk associated with reinsurance receivables and prepaid reinsurance premiums as of December 31, 2014 and 2013. The ratio of assumed premiums earned to net premiums earned for the years ended December 31, 2014, 2013 and 2012 were 13.2%, 27.4%, and 41.0%, respectively. | |||||||||||||
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 $23,543, $12,521 and $0, respectively, for the years ended December 31, 2014, 2013 and 2012. At December 31, 2014 and 2013, other assets included $28,596 and $9,009, respectively, and prepaid reinsurance premiums included $5,983 and $3,512, respectively, which are related to these adjustments. |
Losses_and_Loss_Adjustment_Exp
Losses and Loss Adjustment Expenses | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Insurance [Abstract] | |||||||||||||
Losses and Loss Adjustment Expenses | Note 11 — Losses and Loss Adjustment Expenses | ||||||||||||
The liability for losses and loss adjustment expenses (“LAE”) 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 losses and LAE is summarized as follows: | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance, beginning of year | $ | 43,686 | $ | 41,168 | $ | 27,424 | |||||||
Incurred related to: | |||||||||||||
Current year | 75,810 | 67,579 | 66,425 | ||||||||||
Prior years | 3,658 | (2,456 | ) | (115 | ) | ||||||||
Total incurred | 79,468 | 65,123 | 66,310 | ||||||||||
Paid related to: | |||||||||||||
Current year | (47,650 | ) | (40,240 | ) | (36,914 | ) | |||||||
Prior years | (26,596 | ) | (22,365 | ) | (15,652 | ) | |||||||
Total paid | (74,246 | ) | (62,605 | ) | (52,566 | ) | |||||||
Balance, end of year | $ | 48,908 | $ | 43,686 | $ | 41,168 | |||||||
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 year ended December 31, 2014, the Company experienced unfavorable development of $3,658 with respect to its net unpaid losses and loss adjustment expenses established for the year ended December 31, 2013. Factors attributable to this unfavorable development include a higher severity of claims and increased frequency of reported 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 yearly 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 | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||
Income Taxes | Note 12 — Income Taxes | ||||||||||||||||||||||||
A summary of income tax expense is as follows: | |||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Current: | |||||||||||||||||||||||||
Federal | $ | 36,651 | $ | 34,372 | $ | 18,484 | |||||||||||||||||||
State | 6,222 | 5,844 | 3,168 | ||||||||||||||||||||||
Foreign | 167 | 118 | 137 | ||||||||||||||||||||||
Total current taxes | 43,040 | 40,334 | 21,789 | ||||||||||||||||||||||
Deferred: | |||||||||||||||||||||||||
Federal | (4,060 | ) | 514 | (1,986 | ) | ||||||||||||||||||||
State | (678 | ) | 43 | (380 | ) | ||||||||||||||||||||
Foreign | (4 | ) | — | — | |||||||||||||||||||||
Total deferred taxes | (4,742 | ) | 557 | (2,366 | ) | ||||||||||||||||||||
Income tax expense | $ | 38,298 | $ | 40,891 | $ | 19,423 | |||||||||||||||||||
The reasons for the differences between the statutory Federal income tax rate and the effective tax rate are summarized as follows: | |||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | ||||||||||||||||||||
Income taxes at statutory rate | $ | 35,337 | 35 | $ | 37,258 | 35 | $ | 17,353 | 35 | ||||||||||||||||
Increase (decrease) in income taxes resulting from: | |||||||||||||||||||||||||
State income taxes, net of federal tax benefits | 3,601 | 3.6 | 3,802 | 3.6 | 1,799 | 3.6 | |||||||||||||||||||
Other | (640 | ) | (0.7 | ) | (169 | ) | (0.2 | ) | 271 | 0.6 | |||||||||||||||
Income tax expense | $ | 38,298 | 37.9 | $ | 40,891 | 38.4 | $ | 19,423 | 39.2 | ||||||||||||||||
The Company has no uncertain tax positions or unrecognized tax benefits that, if recognized, would impact the effective income tax rate. The tax years ending December 31, 2013, 2012, and 2011 remain subject to examination by the Company’s major taxing jurisdictions. The Company elected to classify, if any, interest and penalties arising from uncertain tax positions as income tax expense as permitted by current accounting standards. There have been no material amounts of interest or penalties for the years ended December 31, 2014 and 2013. 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. | |||||||||||||||||||||||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. | |||||||||||||||||||||||||
Significant components of the Company’s net deferred income tax (liabilities) assets are as follows: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||||||||
Unearned premiums | $ | 11,718 | $ | 8,829 | |||||||||||||||||||||
Losses and loss adjustment expenses | 866 | 885 | |||||||||||||||||||||||
Organizational costs | 83 | 95 | |||||||||||||||||||||||
Stock-based compensation | 3,081 | 2,026 | |||||||||||||||||||||||
Accrued expenses | 175 | 163 | |||||||||||||||||||||||
Deferred expenses | — | — | |||||||||||||||||||||||
Unearned revenue | 381 | 52 | |||||||||||||||||||||||
Bad debt reserve | 10 | 5 | |||||||||||||||||||||||
Total deferred tax assets | 16,314 | 12,055 | |||||||||||||||||||||||
Deferred tax liabilities: | |||||||||||||||||||||||||
Property and equipment | (1,604 | ) | (1,748 | ) | |||||||||||||||||||||
Deferred policy acquisition costs | (5,959 | ) | (5,600 | ) | |||||||||||||||||||||
Unrealized net gain on securities available-for-sale | (418 | ) | (700 | ) | |||||||||||||||||||||
Basis difference related to convertible senior notes | (5,110 | ) | (6,295 | ) | |||||||||||||||||||||
Prepaid expenses | (464 | ) | (296 | ) | |||||||||||||||||||||
Other | (260 | ) | (156 | ) | |||||||||||||||||||||
Total deferred tax liabilities | (13,815 | ) | (14,795 | ) | |||||||||||||||||||||
Net deferred tax assets (liabilities) | $ | 2,499 | $ | (2,740 | ) | ||||||||||||||||||||
A valuation allowance is established if, based upon the relevant facts and circumstances, management believes any portion of the deferred tax assets will not be realized. Although realization of deferred income tax assets is not certain, management believes it is more likely than not that deferred tax assets will be realized. As a result, the Company did not have a valuation allowance established as of December 31, 2014 or 2013. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Earnings Per Share | Note 13 — 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 fully diluted earnings per common share is presented below: | |||||||||||||
Income | Shares | Per Share | |||||||||||
(Numerator) | (Denominator) | Amount | |||||||||||
Year Ended December 31, 2014 | |||||||||||||
Net income | $ | 62,664 | |||||||||||
Less: Preferred stock dividends | 4 | ||||||||||||
Less: Income attributable to participating securities | (4,318 | ) | |||||||||||
Basic Earnings Per Share: | |||||||||||||
Income allocated to common stockholders | 58,350 | 9,888 | $ | 5.9 | |||||||||
Effect of Dilutive Securities: | |||||||||||||
Stock options | — | 137 | |||||||||||
Convertible preferred stock | (4 | ) | 20 | ||||||||||
Convertible senior notes | 4,343 | 1,649 | |||||||||||
Diluted Earnings Per Share: | |||||||||||||
Income available to common stockholders and assumed conversions | $ | 62,689 | 11,694 | $ | 5.36 | ||||||||
Year Ended December 31, 2013 | |||||||||||||
Net income | $ | 65,562 | |||||||||||
Less: Preferred stock dividends | (104 | ) | |||||||||||
Less: Income attributable to participating securities | (3,213 | ) | |||||||||||
Basic Earnings Per Share: | |||||||||||||
Income allocated to common stockholders | 62,245 | 10,691 | $ | 5.82 | |||||||||
Effect of Dilutive Securities: | |||||||||||||
Stock options | — | 163 | |||||||||||
Convertible preferred stock | 104 | 178 | |||||||||||
Convertible senior notes | 237 | 90 | |||||||||||
Diluted Earnings Per Share: | |||||||||||||
Income available to common stockholders and assumed conversions | $ | 62,586 | 11,122 | $ | 5.63 | ||||||||
Year Ended December 31, 2012 | |||||||||||||
Net income | $ | 30,157 | |||||||||||
Less: Preferred stock dividends | (322 | ) | |||||||||||
Less: Income attributable to participating securities | (488 | ) | |||||||||||
Basic Earnings Per Share: | |||||||||||||
Income available to common stockholders | 29,347 | 8,497 | $ | 3.45 | |||||||||
Effect of Dilutive Securities: | |||||||||||||
Stock options | — | 220 | |||||||||||
Convertible preferred stock | 322 | 655 | |||||||||||
Warrants | — | 441 | |||||||||||
Diluted Earnings Per Share: | |||||||||||||
Income available to common stockholders and assumed conversions | $ | 29,669 | 9,813 | $ | 3.02 | ||||||||
Stockholders_Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
Stockholders' Equity | Note 14 — 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 year ended December 31, 2014, the Company repurchased and retired a total of 990,701 shares at a weighted average price per share of $38.69 under this authorized repurchase plan. The total costs of shares repurchased, inclusive of fees and commissions, during the year ended December 31, 2014 were $38,354, or $38.71 per share. At December 31, 2014, a total of $1,666 is available in connection with this plan. | |
Series B Junior Participating Preferred Share Purchase Right | |
On October 17, 2013, the Company’s Board of Directors declared a dividend of one preferred share purchase right (“Right”) for each outstanding share of its common stock to shareholders of record at the close of business on November 15, 2013. Each Right entitles the common shareholder to purchase from the Company one one-hundredth of a share of Series B Junior Participating Preferred Stock, no par value, at a price of $125.00 per one one-hundredth of such preferred share, subject to adjustment for certain events. The Right is intended to prevent any unsolicited takeover attempt that is unfair and unfavorable to the Company’s shareholders. The Right will not interfere with any merger approved by the Company’s Board of Directors. | |
The Right will not be exercisable until ten days following a public announcement that a person or group has acquired beneficial ownership of 10% or more of the Company’s common stock or until ten business days after a person or group begins a tender or exchange offer that would result in beneficial ownership of 10% or more of the Company’s common stock. The Right may be redeemed or exchanged by the Company for $0.001 per Right at any time until the Right’s expiration date on October 18, 2018. | |
Prepaid Share Repurchase Forward Contract | |
Effective December 11, 2013, in conjunction with the issuance of the Convertible Notes, the Company entered into a prepaid share repurchase forward contract (the “forward contract”) with Deutsche Bank AG, London Branch (the “forward counterparty”). Pursuant to the forward contract, the Company prepaid $29,923 of the net proceeds of the offering to repurchase 622,751 shares of the Company’s common stock under which the shares will be delivered over a settlement period in 2019. The forward contract is subject to early settlement, in whole or in part, at any time prior to the final settlement date at the option of the forward counterparty, as well as early settlement or settlement with alternative consideration in the event of certain corporate transactions. In the event the Company pays any cash dividends on its common shares, the forward counterparty will pay an equivalent amount to the Company. The shares to be purchased under the prepaid forward contract will be treated as retired as of the effective date of the forward contract, but will remain outstanding for corporate law purposes, including for purposes of any future stockholders votes. | |
The Company determined that the forward contract does not meet the characteristic of a derivative instrument and, as such, the transaction resulted in an immediate reduction of the outstanding shares used to calculate the weighted-average common shares outstanding for both basic and diluted earnings per share. | |
Preferred Stock | |
Series A Cumulative Convertible Preferred Stock (“Series A Preferred”) | |
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, resulting in the derecognition of $4 in dividends payable. During the years ended December 31, 2014 and 2013, holders of 107,298 and 130,498 shares of Series A Preferred converted their Series A Preferred shares to 107,298 and 130,498 shares of common stock, respectively. As of December 31, 2014, no shares of Series A Preferred were outstanding. | |
Series B Junior Participating Preferred Stock (“Series B Preferred”) | |
On October 17, 2013, in connection with the declaration of the Right dividends, the Company’s Board of Directors established and fixed the rights and preferences of the Series B Preferred. Of the authorized shares, the Company designated 400,000 shares as Series B Preferred. Each Series B Preferred will be entitled to a minimum preferential quarterly dividend payment of $1.00 per share but will be entitled to an aggregate dividend of 100 times the dividend declared per common share of the Company. In the event of liquidation, the holders of the Series B Preferred will be entitled to a minimum preferential liquidation payment of $100 per share but will be entitled to an aggregate payment of 100 times the payment made per common share. Each Series B Preferred will have 100 votes per share, voting together as one class on all matters submitted to a vote of shareholders of the Company. Finally, in the event of any merger, consolidation or other transaction in which common shares are exchanged, each Series B Preferred will be entitled to receive 100 times the amount received per common share. The aforementioned rights of Series B Preferred are protected by customary anti-dilution provisions. As of December 31, 2014 and 2013, there were no Series B Preferred issued or outstanding. | |
Undesignated Preferred Stock | |
The Company is authorized to issue up to an additional 18,100,000 shares of preferred stock, no par value. The authorized but unissued and undesignated preferred stock may be issued in one or more series and the shares of each series shall have such rights as determined by the Company’s Board of Directors subject to the rights of the holders of the Series A Preferred and Series B Preferred. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||
Stock-Based Compensation | Note 15 — Stock-Based Compensation | ||||||||||||||
Incentive Plan | |||||||||||||||
The Company currently has outstanding stock-based awards granted under the 2007 Stock Option and Incentive Plan and the 2012 Omnibus Incentive Plan. Only the 2012 Plan is available for future grants as the 2007 Plan was terminated in 2012. With respect to the 2012 Plan, the Company may grant stock-based awards to employees, directors, consultants, and advisors of the Company. At December 31, 2014, there were 4,246,470 shares available for grant under the 2012 Plan. | |||||||||||||||
Stock Options | |||||||||||||||
Stock options granted and outstanding under the incentive plan 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 years ended December 31, 2014, 2013 and 2012 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, 2012 | 620,000 | $ | 2.97 | 5.7 years | $ | 3,122 | |||||||||
Exercised | (340,000 | ) | $ | 3.03 | |||||||||||
Outstanding at December 31, 2012 | 280,000 | $ | 2.91 | 4.9 years | $ | 5,007 | |||||||||
Outstanding at December 31, 2013 | 280,000 | $ | 2.91 | 3.9 years | $ | 14,166 | |||||||||
Exercised | (50,000 | ) | $ | 2.5 | |||||||||||
Outstanding at December 31, 2014 | 230,000 | $ | 3 | 3.0 years | $ | 9,256 | |||||||||
Exercisable at December 31, 2014 | 230,000 | $ | 3 | 3.0 years | $ | 9,256 | |||||||||
The following table summarizes information about options exercised, and the fair value of vested options for the years ended December 31, 2014, 2013 and 2012 (option amounts not in thousands): | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Options exercised | 50,000 | — | 340,000 | ||||||||||||
Total intrinsic value of exercised options | $ | 1,970 | $ | — | $ | 3,648 | |||||||||
Fair value of vested stock options | $ | 17 | $ | 17 | $ | 22 | |||||||||
Tax benefits realized | $ | 603 | $ | — | $ | 1,161 | |||||||||
During the year ended December 31, 2012, a total of 340,000 options were exercised of which 227,003 options were net settled by surrender of 72,592 shares. Compensation expense recognized for the years ended December 31, 2014, 2013 and 2012 totaled approximately $6, $19 and $68, respectively, and is included in other operating expenses. At December 31, 2014 and 2013, there was approximately $0 and $6, respectively, of unrecognized compensation expense related to nonvested stock options granted under the plan. Deferred tax benefits related to stock options for the years ended December 31, 2014, 2013 and 2012 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 value of the Company’s stock on the grant date. | |||||||||||||||
Information with respect to the activity of unvested restricted stock awards during the years ended December 31, 2014, 2013 and 2012 is as follows (share amounts not in thousands): | |||||||||||||||
Number of | Weighted | ||||||||||||||
Restricted | Average | ||||||||||||||
Stock | Grant Date | ||||||||||||||
Awards | Fair Value | ||||||||||||||
Nonvested at January 1, 2012 | — | — | |||||||||||||
Granted | 246,320 | $ | 14.54 | ||||||||||||
Nonvested at December 31, 2012 | 246,320 | $ | 14.54 | ||||||||||||
Granted | 612,000 | $ | 27.36 | ||||||||||||
Vested | (93,000 | ) | $ | 12.18 | |||||||||||
Forfeited | (29,670 | ) | $ | 15.03 | |||||||||||
Nonvested at December 31, 2013 | 735,650 | $ | 25.48 | ||||||||||||
Granted | 108,720 | $ | 47.4 | ||||||||||||
Vested | (193,825 | ) | $ | 27.48 | |||||||||||
Forfeited | (10,840 | ) | $ | 41.53 | |||||||||||
Nonvested at December 31, 2014 | 639,705 | $ | 28.33 | ||||||||||||
The Company recognized compensation expense, which is included in other operating expenses, of $8,104, $5,346 and $776, respectively, for the years ended December 31, 2014, 2013 and 2012. At December 31, 2014 and 2013, there was approximately $10,355 and $13,757, 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 23 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 years ended December 31, 2014, 2013 and 2012. | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Deferred tax benefits recognized | $ | 3,126 | $ | 2,062 | $ | 299 | |||||||||
Tax benefits realized for restricted stock and paid dividends | $ | 1,477 | $ | 1,060 | $ | — | |||||||||
Fair value of vested restricted stock | $ | 5,326 | $ | 1,133 | $ | — | |||||||||
The following presents assumptions used in a Monte Carlo simulation model to determine the fair value of the awards with market-based conditions: | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Expected dividends per share | $1.10 | $0.90 | $0.80 | ||||||||||||
Expected volatility | 42.1 – 46.6% | 41.5 – 51.6% | 36.7 – 50.0% | ||||||||||||
Risk-free interest rate | 0.1 – 1.5% | 0.0 – 1.9% | 0.1 – 1.2% | ||||||||||||
Estimated cost of capital | 11.50% | 9.3 – 10.3% | 11.9 – 12.1% | ||||||||||||
Expected life (in years) | 4 | 4.00 – 6.00 | 6 |
Employee_Benefit_Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plan | Note 16 — Employee Benefit Plan |
Effective July 1, 2013, the Company implemented a 401(k) Safe Harbor Profit Sharing Plan (“401(k) Plan”) that qualifies as a defined contribution plan under Section 401(k) of the Internal Revenue Code. Under the 401(k) Plan, participating employees are eligible for company matching and discretionary profit sharing contributions. Plan participants may elect to defer up to one hundred percent of their pre-tax gross wages, subject to annual limitations. The company matching contribution is limited to a maximum of four percent of the employee’s annual salary or wage and is fully vested when contributed. Eligibility and vesting of the Company’s discretionary profit sharing contribution is subject to the plan participant’s years of service. During the years ended December 31, 2014 and 2013, the Company contributed approximately $311 and $183, respectively, in matching contributions, which are included in other operating expenses. There has been no discretionary profit sharing contribution since the plan’s inception. | |
The Company also maintains benefit plans for its employees in India including a statutory post-employment benefit plan, or gratuity plan, providing defined, lump-sum benefits. The Company’s liability for the gratuity plan reflects the undiscounted benefit obligation payable as of the balance sheet date, which was based upon the employees’ salary and years of service. As of December 31, 2014 and 2013, the amounts accrued under the gratuity plan were $10 and $6, respectively. In addition, the Company provides matching contributions with respect to two defined contribution plans; the Provident Fund and the Employees State Insurance Fund, both of which are available to qualifying employees in India. Expense recognized by the Company for all benefit plans in India was $12 and $7, respectively, for the years ended December 31, 2014 and 2013. No expense was recognized for any benefit plan in India for the year ended December 31, 2012. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies | Note 17 — Commitments and Contingencies | ||||
Obligations under Multi-Year Reinsurance Contracts | |||||
As of December 31, 2014, the Company has contractual obligations related to two-year and three-year reinsurance contracts. These contracts have effective dates of either June 1, 2013 or June 1, 2014 and may be cancelable only with the other party’s consent. The future minimum aggregate amounts payable to the reinsurers for 2015 and 2016 are $66,451 and $22,989, respectively. | |||||
Lease Commitments | |||||
The Company currently leases 15,000 square feet of office space in Noida, India. The lease commenced January 15, 2013 and has an initial term of nine years with monthly rental payments of approximately $10 plus applicable service tax for the first year. Thereafter the monthly rental payment will increase by five percent every year. The Company is entitled to terminate the lease 36 months after the commencement date by providing 3 months’ written notice to the landlord. | |||||
Provided the lease is not early terminated, minimum future rental payments under operating leases after December 31, 2014 are as follows: | |||||
Year | Amount | ||||
2015 | $ | 118 | |||
2016 | 123 | ||||
2017 | 130 | ||||
2018 | 136 | ||||
2019 | 143 | ||||
Thereafter | 308 | ||||
Total minimum future payments | $ | 958 | |||
Rental expense under all facility leases was $222, $248 and $527, respectively, during the years ended December 31, 2014, 2013 and 2012. Expense in 2012 includes amounts related to a lease for the Company’s former corporate headquarters location. | |||||
Service Agreement | |||||
In connection with the lease for new office space in India as described in the lease commitments above, the Company signed a long-term contract with the landlord to receive maintenance and facility services. The agreement has the same initial term of nine years with monthly payments of approximately $2 plus applicable service tax for the first year. Thereafter, the monthly payment will increase by five percent every year. The Company is also entitled to terminate the agreement 36 months after the commencement date by providing 3 months’ written notice to the landlord. | |||||
Provided the agreement is not early terminated, minimum future payments under the service agreement after December 31, 2014 are as follows: | |||||
Year | Amount | ||||
2015 | $ | 21 | |||
2016 | 22 | ||||
2017 | 24 | ||||
2018 | 24 | ||||
2019 | 26 | ||||
Thereafter | 55 | ||||
Total minimum future payments | $ | 172 | |||
Rental Income | |||||
The Company owns real estate that consists of 3.5 acres of land, a building with gross area of 122,000 square feet, and a four-level parking garage. This facility is used by the Company and its subsidiaries. In addition, the Company leases space to non-affiliates. | |||||
Expected annual rental income due under non-cancellable operating leases for all properties and other investments owned at December 31, 2014 are as follows: | |||||
Year | Amount | ||||
2015 | $ | 995 | |||
2016 | 698 | ||||
2017 | 248 | ||||
2018 | 86 | ||||
2019 | 47 | ||||
Total | $ | 2,074 | |||
Regulatory Assessments | |||||
a) | Regular Insurance Assessments and Surcharges | ||||
As a direct premium writer in the state of Florida, the Company is subject to mandatory assessments by Citizens and the Florida Hurricane Catastrophe Fund (“FHCF”). These assessments are paid based on a percentage of the Company’s direct written premium by line of business. For the years ended December 31, 2014, 2013 and 2012, HCPCI paid assessments to FHCF amounting to $4,481, $4,103 and $2,517, respectively. Additionally, HCPCI paid assessments to Citizens of $3,447, $3,156 and $1,936, respectively, for the years ended December 31, 2014, 2013 and 2012. As of December 31, 2014, the Company’s other liabilities included $349 and $453 payable to Citizens and FHCF, respectively. These assessments are recorded as a surcharge in premium billings to insureds. As of December 31, 2014, 2013 and 2012, the surcharge rates in effect for FHCF and Citizens were 1.3% and 1.0%, respectively, for each of these years. | |||||
Effective January 1, 2015, the FHCF assessment imposed on all property insurance policies was removed. In addition, the Citizens assessment will be eliminated effective June 1, 2015. | |||||
b) | Guaranty Fund | ||||
The Florida Insurance Guaranty Association may assess the Company to provide for the payment of covered claims of insolvent insurance entities. The assessments are generally based on a percentage of premiums written as of the end of the prior year in which the assessment is levied. Although the Company is permitted by Florida statutes to recover the entire amount of assessments from existing and future policyholders through policy surcharges, liabilities are recognized when the assessments are probable to be imposed on the premiums on which they are expected to be based and the amounts can be reasonably estimated. During 2012, the Company paid $1,139 of guaranty fund assessments, $482 of which was recognized as an asset recoverable from policyholders. The balance of $657 was charged to expense in 2012. As approved by the Florida Office of Insurance Regulation, the Company had recovered a total of $1,030 during 2013, $434 of which was credited to the asset recoverable from policyholders. The amount recovered in excess of $434 reduced the Company’s 2013 policy acquisition and other underwriting expenses and was offset by a $48 expense for the amount unrecovered from policyholders. At December 31, 2014 and 2013, the Company has no liability related to guaranty fund assessments. | |||||
Financing Commitment | |||||
As described in Note 4 — “Investments” under ADC Arrangement, the Company is contractually committed to provide financing for a real estate acquisition, development and construction project. At December 31, 2014, $6,981 of the available commitment was unused by the property developer. | |||||
Capital Commitment | |||||
As described in Note 4 — “Investments” under Limited Partnership Investment, the Company is contractually committed to a capital contribution for a limited partnership interest. At December 31, 2014, there was an unfunded balance of $9,860. | |||||
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 Department’s proposed 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. The Company did not agree with the proposed adjustment and notified the Department of its intention to protest the Department’s position. While the Company remains confident in the merits of its position in claiming the Florida salary credits, management continued to hold discussions with Department staff throughout 2014 and believes the Company has reached an agreement in principle towards resolution of this matter. The pending resolution entails having certain subsidiaries individually file and pay state reemployment taxes plus interest covering the periods under audit through the second quarter of 2014. The Company believes the payroll of certain of these subsidiaries then will continue to qualify for substantially all of the salary tax credits claimed by the Company. The incremental reemployment taxes due to the Department as a result of the subsidiaries’ separate reemployment tax filings will be netted against amounts refundable to the parent for the same periods during which the parent filed and paid state reemployment taxes as a single payer. As such, and based on the current status and expected resolution, the Company has accrued a net amount of approximately $140 as of December 31, 2014 related to this contingency. | |||||
Litigation | |||||
The Company is party to claims and legal actions arising routinely in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material, adverse effect on the consolidated financial position or liquidity. |
Quarterly_Results_of_Operation
Quarterly Results of Operations | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Quarterly Results of Operations | Note 18 — Quarterly Results of Operations (Unaudited) | ||||||||||||||||
The tables below summarize unaudited quarterly results of operations for 2014, 2013 and 2012. | |||||||||||||||||
Three Months Ended | |||||||||||||||||
3/31/14 | 6/30/14 | 9/30/14 | 12/31/14 | ||||||||||||||
Net premiums earned | $ | 66,380 | $ | 62,649 | $ | 61,260 | $ | 61,776 | |||||||||
Total revenue | 68,117 | 66,284 | 66,955 | 64,752 | |||||||||||||
Losses and loss adjustment expenses | 18,565 | 18,383 | 21,991 | 20,529 | |||||||||||||
Policy acquisition and other underwriting expenses | 9,129 | 9,559 | 9,986 | 9,278 | |||||||||||||
Interest expense | 2,574 | 2,609 | 2,626 | 2,644 | |||||||||||||
Total expenses | 39,807 | 39,901 | 44,180 | 41,258 | |||||||||||||
Income before income taxes | 28,310 | 26,383 | 22,775 | 23,494 | |||||||||||||
Net income | 17,620 | 16,430 | 14,052 | 14,562 | |||||||||||||
Net income available to common stockholders | 17,623 | 16,431 | 14,052 | 14,562 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic | $ | 1.6 | $ | 1.53 | $ | 1.34 | $ | 1.43 | |||||||||
Diluted | $ | 1.44 | $ | 1.39 | $ | 1.23 | $ | 1.3 | |||||||||
Three Months Ended | |||||||||||||||||
3/31/13 | 6/30/13 | 9/30/13 | 12/31/13 | ||||||||||||||
Net premiums earned | $ | 60,551 | $ | 57,335 | $ | 52,934 | $ | 63,428 | |||||||||
Total revenue | 61,811 | 59,333 | 54,692 | 65,252 | |||||||||||||
Losses and loss adjustment expenses | 15,872 | 17,414 | 14,489 | 17,348 | |||||||||||||
Policy acquisition and other underwriting expenses | 5,968 | 7,308 | 8,887 | 9,456 | |||||||||||||
Interest expense | 686 | 846 | 847 | 1,228 | |||||||||||||
Total expenses | 28,641 | 32,926 | 33,048 | 40,020 | |||||||||||||
Income before income taxes | 33,170 | 26,407 | 21,644 | 25,232 | |||||||||||||
Net income | 20,387 | 16,235 | 13,378 | 15,562 | |||||||||||||
Net income available to common stockholders | 20,353 | 16,203 | 13,356 | 15,546 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic | $ | 1.87 | $ | 1.44 | $ | 1.17 | $ | 1.36 | |||||||||
Diluted | $ | 1.81 | $ | 1.4 | $ | 1.13 | $ | 1.31 | |||||||||
Three Months Ended | |||||||||||||||||
3/31/12 | 6/30/12 | 9/30/12 | 12/31/12 | ||||||||||||||
Net premiums earned | $ | 40,431 | $ | 37,070 | $ | 30,603 | $ | 49,564 | |||||||||
Total revenue | 41,652 | 38,855 | 31,481 | 51,077 | |||||||||||||
Losses and loss adjustment expenses | 19,168 | 16,197 | 15,017 | 15,928 | |||||||||||||
Policy acquisition and other underwriting expenses | 6,836 | 6,243 | 6,611 | 6,240 | |||||||||||||
Total expenses | 30,271 | 26,846 | 26,356 | 30,012 | |||||||||||||
Income before income taxes | 11,381 | 12,009 | 5,125 | 21,065 | |||||||||||||
Net income | 6,968 | 7,262 | 2,826 | 13,101 | |||||||||||||
Net income available to common stockholders | 6,787 | 7,199 | 2,784 | 13,065 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic | $ | 1.07 | $ | 0.85 | $ | 0.3 | $ | 1.27 | |||||||||
Diluted | $ | 0.88 | $ | 0.74 | $ | 0.27 | $ | 1.19 |
Regulatory_Requirements_and_Re
Regulatory Requirements and Restrictions | 12 Months Ended |
Dec. 31, 2014 | |
Text Block [Abstract] | |
Regulatory Requirements and Restrictions | Note 19 — Regulatory Requirements and Restrictions |
The following briefly describes certain requirements and restrictions regulated by the states or jurisdiction in which the Company’s insurance subsidiaries are incorporated. | |
Florida | |
HCPCI, which is domiciled in Florida, prepares its statutory financial statements in accordance with accounting principles and practices prescribed or permitted by the Florida Department of Financial Services, Office of Insurance Regulation (the “FLOIR”), which Florida utilizes for determining solvency under the Florida Insurance Code (the “Code”). The commissioner of the FLOIR has the right to permit other practices that may deviate from prescribed practices. Prescribed statutory accounting practices are those practices that are incorporated directly or by reference in state laws, regulations, and general administrative rules applicable to all insurance enterprises domiciled in Florida. Permitted statutory accounting practices encompass all accounting practices that are not prescribed; such practices differ from state to state, may differ from entity to entity within a state, and may change in the future. | |
The Code requires HCPCI to maintain capital and surplus equal to the greater of 10% of its liabilities or a statutory minimum as defined in the Code. At December 31, 2014, HCPCI is required to maintain a minimum capital and surplus of $24,757. | |
U.S. GAAP differs in certain respects from the accounting practices prescribed or permitted by insurance regulatory authorities (statutory-basis). HCPCI’s statutory-basis financial statements are presented on the basis of accounting practices prescribed or permitted by the FLOIR. The FLOIR has adopted the National Association of Insurance Commissioner’s (“NAIC”) Accounting Practices and Procedures Manual as the basis of its statutory accounting practices. At December 31, 2014, 2013 and 2012, HCPCI’s statutory-basis capital and surplus was approximately $168,000, $116,900 and $69,800, respectively. HCPCI had statutory-basis net income of approximately $48,900, $45,700 and $13,200, respectively, for the years ended December 31, 2014, 2013 and 2012. Statutory-basis surplus differs from stockholders’ equity reported in accordance with U.S. GAAP primarily because policy acquisition costs are expensed when incurred. In addition, the recognition of deferred tax assets is based on different recoverability assumptions. | |
Since inception, HCPCI has maintained a cash deposit with the Insurance Commissioner of the state of Florida, in the amount of $300, to meet regulatory requirements. | |
Under Florida law, a domestic insurer may not pay any dividend or distribute cash or other property to its stockholders except out of that part of its available and accumulated capital and surplus funds which is derived from realized net operating profits on its business and net realized capital gains. A Florida domestic insurer may not make dividend payments or distributions to stockholders without prior approval of the FLOIR if the dividend or distribution would exceed the larger of (1) the lesser of (a) 10.0% of its capital surplus or (b) net income, not including realized capital gains, plus a two year carry forward, (2) 10.0% of capital surplus with dividends payable constrained to unassigned funds minus 25% of unrealized capital gains or (3) the lesser of (a) 10.0% of capital surplus or (b) net investment income plus a three year carry forward with dividends payable constrained to unassigned funds minus 25% of unrealized capital gains. | |
Alternatively, a Florida domestic insurer may pay a dividend or distribution without the prior written approval of the FLOIR if (1) the dividend is equal to or less than the greater of (a) 10.0% of the insurer’s capital surplus as regards to policyholders derived from realized net operating profits on its business and net realized capital gains or (b) the insurer’s entire net operating profits and realized net capital gains derived during the immediately preceding calendar year, (2) the insurer will have policy holder capital surplus equal to or exceeding 115.0% of the minimum required statutory capital surplus after the dividend or distribution, (3) the insurer files a notice of the dividend or distribution with the FLOIR at least ten business days prior to the dividend payment or distribution and (4) the notice includes a certification by an officer of the insurer attesting that, after the payment of the dividend or distribution, the insurer will have at least 115% of required statutory capital surplus as to policyholders. Except as provided above, a Florida domiciled insurer may only pay a dividend or make a distribution (1) subject to prior approval by the FLOIR or (2) 30 days after the FLOIR has received notice of such dividend or distribution and has not disapproved it within such time. | |
As a result, HCPCI was qualified to make dividend payments at December 31, 2014 and 2013. At December 31, 2012, no dividends were available to be paid by HCPCI. | |
In addition, a Florida insurance company is required to adhere to prescribed premium-to-capital surplus ratios. Florida state law requires that the ratio of 90% of written premiums divided by surplus as to policyholders does not exceed 10 to 1 for gross written premiums or 4 to 1 for net written premiums. The ratio of gross and net written premium to surplus for the year ended December 31, 2014, was 2.21 to 1, and 1.50 to 1, respectively. The ratio of gross and net written premium to surplus for the year ended December 31, 2013, was 2.76 to 1, and 1.68 to 1, respectively. The ratio of gross and net written premium to surplus for the year ended December 31, 2012, was 3.63 to 1, and 2.27 to 1, respectively. | |
Alabama | |
Homeowners Choice Assurance Company, Inc. (“HCA”) is domiciled in Alabama and was organized in 2013. HCA is required to maintain minimum paid-in capital of $500. In addition, HCA must maintain a minimum deposit in trust of $100 with the Treasurer of Alabama. At December 31, 2014 and 2013, HCA’s statutory capital and surplus was $1,926 and $1,969, respectively. Similar to HCPCI in Florida, HCA is required to file statutory-basis financial statements with the Alabama Department of Insurance, which has also adopted the NAIC Accounting Practices and Procedures Manual as the basis of its statutory accounting practices. | |
Bermuda | |
The Bermuda Monetary Authority requires Claddaugh to maintain minimum capital and surplus of $2,000. At December 31, 2014, 2013 and 2012, Claddaugh’s statutory capital and surplus was $21,307, $15,526 and $10,313, respectively. Claddaugh’s statutory net profit was $1,980, $4,164 and $4,818, respectively, for the years ended December 31, 2014, 2013 and 2012. There was no cash dividend paid by Claddaugh during 2014. During the years ended December 31, 2013 and 2012, Claddaugh paid its parent, HCI, cash dividends of $4,000 and $6,000, respectively. | |
HCPCI and HCA are subject to risk-based capital (“RBC”) requirements as specified by the NAIC. Under those requirements, the amount of minimum capital and surplus maintained by a property and casualty insurance company is to be determined based on the various risks related to it. Pursuant to the RBC requirements, insurers having less statutory capital than required by the RBC calculation will be subject to varying degrees of regulatory action, depending on the level of capital inadequacy. At December 31, 2014, 2013 and 2012, the Company’s insurance subsidiaries exceeded any applicable minimum risk-based capital requirements and no corrective actions have been required |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 20 — 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, 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 $8,800 of the total covered exposure for approximately $3,720 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. | |
One of the Company’s directors is a partner at a law firm that manages certain of the Company’s corporate legal matters. Fees incurred with respect to this law firm for the years ended December 31, 2014, 2013 and 2012 were approximately $47, $450 and $335, respectively. | |
During 2012, the Company leased office space under an operating lease agreement with one director. The lease required annual base rental payments of approximately $150. The lease was terminated in December 2012 and the total payments during 2012 were $179. |
Condensed_Financial_Informatio
Condensed Financial Information of HCI Group, Inc. | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||
Condensed Financial Information of HCI Group, Inc. | Note 21 — Condensed Financial Information of HCI Group, Inc. | ||||||||||||
Condensed financial information of HCI Group, Inc. is as follows: | |||||||||||||
Balance Sheets | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Assets | |||||||||||||
Cash and cash equivalents | $ | 32,082 | $ | 87,715 | |||||||||
Fixed-maturity securities, available for sale, at fair value | 4,652 | 56 | |||||||||||
Equity securities, available for sale, at fair value | 8,802 | 6,581 | |||||||||||
Limited partnership investment, at equity | 2,550 | — | |||||||||||
Investment in subsidiaries | 298,726 | 214,958 | |||||||||||
Property and equipment, net | 946 | 1,119 | |||||||||||
Income tax receivable | 2,596 | 1,782 | |||||||||||
Other assets | 4,699 | 5,705 | |||||||||||
Total assets | $ | 355,053 | $ | 317,916 | |||||||||
Liabilities and Stockholders’ Equity | |||||||||||||
Accrued expenses and other liabilities | $ | 3,085 | $ | 1,863 | |||||||||
Deferred income taxes, net | 3,631 | 5,888 | |||||||||||
Dividends payable | — | 19 | |||||||||||
Long-term debt | 129,539 | 126,932 | |||||||||||
Due to related parties | 36,213 | 22,693 | |||||||||||
Total liabilities | 172,468 | 157,395 | |||||||||||
Total stockholders’ equity | 182,585 | 160,521 | |||||||||||
Total liabilities and stockholders’ equity | $ | 355,053 | $ | 317,916 | |||||||||
Statements of Income | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net investment income | $ | 739 | $ | 84 | $ | 8 | |||||||
Net realized gain (loss) on investments | 309 | (2 | ) | — | |||||||||
Other income | 120 | 864 | 144 | ||||||||||
Interest expense | (10,453 | ) | (3,607 | ) | — | ||||||||
Operating expenses | (7,745 | ) | (4,865 | ) | (2,812 | ) | |||||||
Loss before income tax benefit and equity in income of subsidiaries | (17,030 | ) | (7,526 | ) | (2,660 | ) | |||||||
Income tax benefit | 6,462 | 2,863 | 750 | ||||||||||
Net loss before equity in income of subsidiaries | (10,568 | ) | (4,663 | ) | (1,910 | ) | |||||||
Equity in income of subsidiaries | 73,232 | 70,225 | 32,067 | ||||||||||
Net income | $ | 62,664 | $ | 65,562 | $ | 30,157 | |||||||
Statements of Cash Flows | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Cash flows from operating activities: | |||||||||||||
Net income | $ | 62,664 | $ | 65,562 | $ | 30,157 | |||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||||
Stock-based compensation | 5,502 | 2,362 | 237 | ||||||||||
Net realized investment (gain) loss | (309 | ) | 2 | — | |||||||||
Depreciation and amortization | 3,712 | 1,000 | 788 | ||||||||||
Loss from limited partnership investment | 90 | — | — | ||||||||||
Equity in income of subsidiaries | (73,232 | ) | (70,225 | ) | (32,067 | ) | |||||||
Deferred income taxes | (2,058 | ) | (914 | ) | 763 | ||||||||
Changes in operating assets and liabilities: | |||||||||||||
Income taxes receivable | (814 | ) | 597 | (2,379 | ) | ||||||||
Other assets | 629 | (1,001 | ) | 84 | |||||||||
Accrued expenses and other liabilities | 1,116 | 1,136 | (1,051 | ) | |||||||||
Income taxes payable | — | — | (1,605 | ) | |||||||||
Due to related parties | 11,520 | (6,338 | ) | 5,314 | |||||||||
Net cash provided by (used in) operating activities | 8,820 | (7,819 | ) | 241 | |||||||||
Cash flows from investing activities: | |||||||||||||
Investment in limited partnership interest | (2,640 | ) | — | — | |||||||||
Purchase of fixed-maturity securities | (2,616 | ) | (64 | ) | — | ||||||||
Purchase of equity securities | (7,000 | ) | (6,835 | ) | — | ||||||||
Purchases of property and equipment | (277 | ) | (262 | ) | (668 | ) | |||||||
Proceeds from sales of equity securities | 5,212 | 361 | — | ||||||||||
Dividends received from subsidiary | — | 4,000 | 6,000 | ||||||||||
Investment in subsidiaries | (8,402 | ) | (5,735 | ) | (24,056 | ) | |||||||
Net cash used in investing activities | (15,723 | ) | (8,535 | ) | (18,724 | ) | |||||||
Cash flows from financing activities: | |||||||||||||
Net proceeds from the issuance of common stock | — | — | 20,082 | ||||||||||
Repurchases of common stock | (643 | ) | (30,886 | ) | — | ||||||||
Repurchases of common stock under share repurchase plan | (38,354 | ) | — | — | |||||||||
Cash dividends paid to stockholders | (12,355 | ) | (10,902 | ) | (8,561 | ) | |||||||
Cash dividends received under share repurchase forward contract | 685 | — | — | ||||||||||
Proceeds from exercise of stock options | 125 | — | 283 | ||||||||||
Proceeds from exercise of stock warrants | — | — | 11,869 | ||||||||||
Proceeds from issuance of long-term debt | — | 143,250 | — | ||||||||||
Redemption of Series A preferred stock | (34 | ) | — | — | |||||||||
Debt issuance costs paid | (234 | ) | (4,770 | ) | (35 | ) | |||||||
Tax benefits on stock-based compensation | 2,080 | 1,060 | 1,161 | ||||||||||
Net cash (used in) provided by financing activities | (48,730 | ) | 97,752 | 24,799 | |||||||||
Net (decrease) increase in cash and cash equivalents | (55,633 | ) | 81,398 | 6,316 | |||||||||
Cash and cash equivalents at beginning of year | 87,715 | 6,317 | 1 | ||||||||||
Cash and cash equivalents at end of year | $ | 32,082 | $ | 87,715 | $ | 6,317 | |||||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 22 — Subsequent Events |
On January 19, 2015, the Company’s Board of Directors declared a quarterly dividend of $0.30 per common share. The dividends are scheduled for payment on March 20, 2015 to stockholders of record on February 20, 2015. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation. The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Principles of Consolidation | Principles of Consolidation. The accompanying consolidated financial statements include the accounts of HCI and its majority-owned and controlled subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. In addition, the Company evaluates its relationships or investments for consolidation pursuant to authoritative accounting guidance related to the consolidation of variable interest entities (“VIE”) under the Variable Interest Model prescribed by the Financial Accounting Standards Board (“FASB”). A VIE is consolidated when the Company has the power to direct activities that most significantly impact the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. When a VIE is not consolidated, the Company uses the equity method to account for the investment. Under this method, the carrying value is generally the Company’s share of the net asset value of the unconsolidated entity, and changes in the Company’s share of the net asset value are recorded in net investment income. |
Use of Estimates | Use of Estimates. The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ materially from these estimates. Material estimates that are particularly susceptible to significant change in the near term are primarily related to losses and loss adjustment expenses, reinsurance with retrospective provisions, deferred income taxes, and stock-based compensation expense. |
Cash and Cash Equivalents | Cash and Cash Equivalents. The Company considers all short-term highly liquid investments with original maturities of less than three months to be cash and cash equivalents. At December 31, 2014 and 2013, cash and cash equivalents consist of cash on deposit with financial institutions and securities brokerage firms and also includes a $300 statutory deposit held by the State of Florida for the benefit of all policyholders. |
Investments in Available-for-Sale Securities | Investments in Available-for-Sale Securities. Investments consist of fixed-maturity and equity securities. Fixed-maturity securities include debt securities and redeemable preferred stock. Securities may be classified as either trading, held to maturity or available-for-sale. The Company’s available-for-sale securities are carried at fair value. Temporary changes in the fair value of available-for-sale securities are excluded from net investment income and reported in stockholders’ equity as a component of accumulated other comprehensive income, net of deferred income taxes. Realized investment gains and losses from sales are recorded on the trade date and are determined using the first-in first-out (FIFO) method. Investment income is recognized as earned and discounts or premiums arising from the purchase of debt securities are recognized in investment income using the interest method over the estimated remaining term of the security. Gains and losses from call redemptions and repayments are charged to investment income. |
The Company reviews all securities for other-than-temporary impairment on a quarterly basis and more frequently when economic or market conditions warrant such review. When the fair value of any investment is lower than its cost, an assessment is made to determine whether the decline is temporary or other-than-temporary. If the decline is determined to be other-than-temporary, the investment is written down to fair value and an impairment charge is recognized in income in the period in which the Company makes such determination. For a debt security that the Company does not intend to sell nor is it more likely than not that the Company will be required to sell before recovery of its amortized cost, only the credit loss component of the impairment is recognized in income, while the impairment related to all other factors is recognized in other comprehensive income. The Company considers various factors in determining whether an individual security is other-than-temporarily impaired (see Note 4 — “Investments”). | |
Limited Partnership Investment | Limited Partnership Investment. The Company has interest in a limited partnership that is not registered under the United Stated Securities Act of 1933, as amended, the securities laws of any state or the securities laws of any other jurisdictions. The partnership interest cannot be resold in the public market and any withdrawal is subject to the terms and conditions of the partnership agreement. The Company has no influence over partnership operating and financial policies. The Company did not elect the fair value option and, therefore, uses the equity method to account for this investment (see Note 4 — “Investments”). The Company will generally recognize its share of the limited partnership’s earnings on a three- to six-month lag. |
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 4 — “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. |
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. | |
Real Estate Investments | Real Estate Investments. Real estate investments consist of an acquisition, development and construction loan agreement (“ADC Arrangement”) and also real estate and the related assets purchased for investment purposes (see Note 4 — “Investments”). |
Under the ADC Arrangement, the Company 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. | |
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. | |
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. | |
Real estate and the related depreciable assets are carried at cost, net of accumulated depreciation, which is included in net investment income and allocated over the estimated useful life of the asset using the straight-line method of depreciation. Real estate is evaluated for impairment when events or circumstances indicate the carrying value of the real estate may not be recoverable. | |
Deferred Policy Acquisition Costs | Deferred policy acquisition costs. Deferred policy acquisition costs (“DAC”) primarily represent commissions paid to outside agents at the time of collection of the policy premium and premium taxes and are amortized over the life of the related policy in relation to the amount of gross premiums earned. |
The method followed in computing DAC limits the amount of such deferred costs to their estimated realizable value, which gives effect to the gross premium earned, related investment income, unpaid losses and LAE and certain other costs expected to be incurred as the premium is earned. | |
DAC is reviewed to determine if it is recoverable from future income, including investment income. If such costs are determined to be unrecoverable, they are expensed at the time of determination. The amount of DAC considered recoverable could be reduced in the near term if the estimates of total revenues discussed above are reduced or permanently impaired as a result of the disposition of a line of business. The amount of amortization of DAC could be revised in the near term if any of the estimates discussed above are revised. | |
Property and Equipment | Property and Equipment. Property and equipment is stated at cost less accumulated depreciation and amortization, which is included in other operating expenses. Depreciation is calculated on a straight-line basis over the estimated useful lives as follows: building 39 years; computer hardware and software 3 years; office and furniture equipment 3 to 7 years. Leasehold improvements are amortized over the shorter of the lease term or the asset’s useful life. Expenditures for improvements are capitalized to the property accounts. Replacements and maintenance and repairs that do not improve or extend the life of the respective assets are expensed as incurred. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets. Long-lived assets, such as property and equipment, are reviewed for impairment annually or whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. The Company assesses the recoverability of long-lived assets by determining whether the assets can be recovered from undiscounted future cash flows. Recoverability of long-lived assets is dependent upon, among other things, the Company’s ability to maintain profitability, so as to be able to meet its obligations when they become due. In the opinion of management, based upon current information and projections, long-lived assets will be recovered over the period of benefit. |
Long-Term Debt | Long-Term Debt. Long-term debt is generally classified as a liability and carried at amortized cost, net of any discount. At issuance, a debt instrument with embedded features such as conversion and redemption options is evaluated to determine whether bifurcation and derivative accounting is applicable. If such instrument is not subject to derivative accounting, it is further evaluated to determine if the Company is required to separately account for the liability and equity components. |
To determine the carrying values of the liability and equity components at issuance, the Company measures the fair value of a similar liability, including any embedded features other than the conversion option, and assigns such value to the liability component. The liability component’s fair value is then subtracted from the initial proceeds to determine the carrying value of the debt instrument’s equity component, which is included in additional paid-in capital. | |
Any embedded feature other than the conversion option is evaluated at issuance to determine if it is probable that such embedded feature will be exercised. If the Company concludes that the exercisability of that embedded feature is not probable, the embedded feature is considered to be nonsubstantive and would not impact the initial measurement and expected life of the debt instrument’s liability component. | |
Transaction costs related to issuing a debt instrument that embodies both liability and equity components are allocated to the liability and equity components in proportion to the allocation of the proceeds and accounted for as debt issuance costs and equity issuance costs, respectively. Debt issuance costs are recognized in other assets. Both debt discount and deferred debt issuance costs are amortized to interest expense over the expected life of the debt instrument using the effective interest method. Equity issuance costs are a reduction to the proceeds allocated to the equity component. | |
Prepaid Share Repurchase Forward Contract | Prepaid Share Repurchase Forward Contract. A prepaid share repurchase forward contract is generally a contract that allows the Company to buy from the counterparty a specified number of common shares at a specific time at a given forward price. The Company entered into such a contract in December 2013 and evaluated the characteristics of the forward contract to determine whether it met the definition of a derivative financial instrument pursuant to U.S. GAAP. The Company determined the forward contract is an equity contract on the Company’s common shares requiring physical settlement in common shares of the Company. As such, the transaction is recognized as a component of stockholders’ equity with a charge to additional paid-in capital equal to the prepayment amount, which represents the cash paid to the counterparty. There will be no recognition in earnings for changes in fair value in subsequent periods. |
Losses and Loss Adjustment Expenses | Losses and Loss Adjustment Expenses. Reserves for losses and loss adjustment expenses (“LAE”) are determined by establishing liabilities in amounts estimated to cover incurred losses and LAE. Such reserves are determined based on the assessment of claims reported and the development of pending claims. These reserves are based on individual case estimates for the reported losses and LAE and estimates of such amounts that are incurred but not reported. Changes in the estimated liability are charged or credited to income as the losses and LAE are settled. |
The estimates of unpaid losses and LAE are subject to trends in claim severity and frequency and are continually reviewed. As part of the process, the Company reviews historical data and considers various factors, including known and anticipated regulatory and legal developments, changes in social attitudes, inflation and economic conditions. As experience develops and other data becomes available, these estimates are revised, as required, resulting in increases or decreases to the existing unpaid losses and LAE. Adjustments are reflected in the results of operations in the period in which they are made and the liabilities may deviate substantially from prior estimates. | |
Advance Premiums | Advance Premiums. Premium payments received prior to the policy effective date are recorded as advance premiums. Once the policy is in force, the premiums are recorded as described under “Premium Revenue” below. |
Reinsurance | Reinsurance. In the normal course of business, the Company seeks to reduce the loss that may arise from catastrophes or other events that cause unfavorable underwriting results by reinsuring certain levels of risk in various areas of exposure with other insurance enterprises or reinsurers. 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 each year taking into consideration probable maximum losses and reinsurance market conditions. Amounts recoverable from reinsurers would be estimated in a manner consistent with the applicable reinsurance contract(s). Reinsurance premiums and reserves related to reinsured business are accounted for on a basis consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Premiums ceded to other companies have been reported as a reduction of gross premiums earned. Prepaid reinsurance premiums represent the unexpired portion of premiums ceded to reinsurers. |
Certain of the Company’s current contracts contain retrospective provisions including terms and conditions that adjust premiums, increase the amount of future coverage, or result in profit commissions based on the loss experience under the contracts. In such cases, a with-and-without method is used to estimate the asset or liability amount to be recognized at each reporting date. The amount of the estimate is the difference between the net contract costs before and after the loss experience under the contract. Estimates related to premium adjustments, profit commissions and coverage changes are recognized in ceded premiums earned. These estimates are reviewed monthly based on the loss experience to date and as adjustments become necessary. Such adjustments are reflected in the Company’s current operations and recorded in other assets until received upon the expiration of the contracts. | |
Premium Revenue | Premium Revenue. Premium revenue is earned on a daily pro-rata basis over the term of the policies and is included in gross premiums earned. Unearned premiums represent the portion of the premium related to the unexpired policy term. The Company reviews its policy detail and establishes an allowance for any amount outstanding for more than 90 days. As of December 31, 2014 and 2013, there was no allowance required. |
Policy Fees | Policy Fees. Policy fees represent nonrefundable fees for insurance coverage, which are intended to reimburse a portion of the costs incurred to underwrite the policy. Effective October 1, 2013 on a prospective basis, policy fees are recognized ratably over the policy coverage period. Prior to October 1, 2013, the fees were recognized in income when the policy was written on the basis that the revenues were appropriately matched to the Company’s incremental direct costs related to policy underwriting. |
Florida Insurance Guaranty Association Assessments | Florida Insurance Guaranty Association Assessments. The Company may be assessed by the state guaranty association. The assessments are intended to be used for the payment of covered claims of insolvent insurance entities. The assessments are generally based on a percentage of premiums written during or following the year of insolvency. Liabilities are recognized when the assessments are probable to be imposed on the premiums on which they are expected to be based and the amounts can be reasonably estimated. The Company is permitted by Florida statutes to recover the entire amount of assessments from in-force and future policyholders through policy surcharges. U.S. GAAP provides that the Company should record an asset based on the amount of written or obligated-to-write premiums and limited to the amounts recoverable over the life of the in-force policies. |
Foreign Currency | Foreign Currency. The functional currency of the Company’s Indian subsidiary is the U.S. dollar. As such, the monetary assets and liabilities of this subsidiary are remeasured into U.S. dollars at the exchange rate in effect on the balance sheet date. Non-monetary assets and liabilities are remeasured using historical rates. Expenses recorded in the local currency are remeasured at the prevailing exchange rate. Exchange gains and losses resulting from these remeasurements are included in other operating expenses. |
Income Taxes | Income Taxes. The Company files consolidated federal and state income tax returns and allocates taxes among its wholly owned subsidiaries in accordance with a written tax-allocation agreement. |
The Company accounts for income taxes in accordance with U.S. GAAP, resulting in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. | |
Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term “more likely than not” means a likelihood of more than fifty percent; the terms “examined” and “upon examination” also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. As of December 31, 2014, management is not aware of any uncertain tax positions that would have a material effect on the Company’s consolidated financial statements. | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments. The carrying amounts for the Company’s cash and cash equivalents approximate their fair values at December 31, 2014 and 2013. Fair values for securities are based on the framework for measuring fair value established by U.S. GAAP (see Note 5 — “Fair Value Measurements”). |
Stock-Based Compensation | Stock-Based Compensation. The Company accounts for stock-based compensation under the fair value recognition provisions of U.S. GAAP which requires the measurement and recognition of compensation for all stock-based awards made to employees and directors including stock options and restricted stock issuances based on estimated fair values. In accordance with U.S. GAAP, the fair value of stock-based awards is generally recognized as compensation expense over the requisite service period, which is defined as the period during which an employee is required to provide service in exchange for an award. The Company uses a straight-line attribution method for all grants that include only a service condition. The Company’s restricted stock awards include service, market and performance conditions. As a result, restricted stock grants with market condition are expensed over the derived service period for each separately vesting tranche. For awards with performance conditions, the Company recognizes compensation expense over the requisite service period when it is probable that the performance condition will be achieved. Compensation expense related to all awards is included in other operating expense. |
Basic and Diluted Earnings Per Common Share | Basic and diluted earnings per common share. Basic earnings per common share is computed by dividing net income attributable to common stockholders by the weighted-average number of common shares outstanding for the period. U.S. GAAP requires the inclusion of restricted stock as participating securities since holders of the Company’s restricted stock have the right to share in dividends, if declared, equally with common stockholders. During periods of net income, participating securities are allocated a proportional share of net income determined by dividing total weighted-average participating securities by the sum of total weighted-average common shares and participating securities (the “two-class method”). Diluted earnings per common share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted as well as participating equities. See Note 13— “Earnings Per Share” for potentially dilutive securities at December 31, 2014, 2013 and 2012. |
Reclassifications | Reclassifications. Certain reclassifications of prior year amounts have been made to conform to the current year presentation. |
Investments_Tables
Investments (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 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 December 31, 2014 and 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 December 31, 2014 | |||||||||||||||||||||||||
Fixed-maturity securities | |||||||||||||||||||||||||
U.S. Treasury and U.S. government agencies | $ | 3,747 | $ | 9 | $ | (8 | ) | $ | 3,748 | ||||||||||||||||
Corporate bonds | 24,342 | 57 | (430 | ) | 23,969 | ||||||||||||||||||||
Mortgage-backed securities | 2,138 | 4 | (3 | ) | 2,139 | ||||||||||||||||||||
State, municipalities, and political subdivisions | 56,336 | 1,205 | (38 | ) | 57,503 | ||||||||||||||||||||
Redeemable preferred stock | 9,433 | 178 | (54 | ) | 9,557 | ||||||||||||||||||||
Other | 167 | 1 | — | 168 | |||||||||||||||||||||
Total | 96,163 | 1,454 | (533 | ) | 97,084 | ||||||||||||||||||||
Equity securities | 45,387 | 1,694 | (1,531 | ) | 45,550 | ||||||||||||||||||||
Total available-for-sale securities | $ | 141,550 | $ | 3,148 | $ | (2,064 | ) | $ | 142,634 | ||||||||||||||||
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 | ||||||||||||||||||||
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 at December 31, 2014 and 2013 are as follows: | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Amortized | Estimated | Amortized | Estimated | ||||||||||||||||||||||
Cost | Fair | Cost | Fair | ||||||||||||||||||||||
Value | Value | ||||||||||||||||||||||||
Available-for-sale | |||||||||||||||||||||||||
Due in one year or less | $ | 715 | $ | 721 | $ | 2,366 | $ | 2,381 | |||||||||||||||||
Due after one year through five years | 25,973 | 26,093 | 24,829 | 25,145 | |||||||||||||||||||||
Due after five years through ten years | 57,157 | 57,560 | 59,083 | 59,582 | |||||||||||||||||||||
Due after ten years | 10,180 | 10,571 | 13,531 | 13,711 | |||||||||||||||||||||
Mortgage-backed securities | 2,138 | 2,139 | 10,929 | 11,332 | |||||||||||||||||||||
$ | 96,163 | $ | 97,084 | $ | 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 years ended December 31, 2014, 2013 and 2012 were as follows: | ||||||||||||||||||||||||
Proceeds | Gross | Gross | |||||||||||||||||||||||
Realized | Realized | ||||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||||||||||
Fixed-maturity securities | $ | 98,365 | $ | 4,096 | $ | (98 | ) | ||||||||||||||||||
Equity securities | $ | 16,810 | $ | 1,372 | $ | (635 | ) | ||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||||||
Fixed-maturity securities | $ | 1,749 | $ | 92 | $ | (4 | ) | ||||||||||||||||||
Equity securities | $ | 2,809 | $ | 155 | $ | (163 | ) | ||||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||||||
Fixed-maturity securities | $ | 8,991 | $ | 421 | $ | (6 | ) | ||||||||||||||||||
Equity securities | $ | 1,735 | $ | 91 | $ | (230 | ) | ||||||||||||||||||
Summary of Securities with Gross Unrealized Loss Positions Aggregated by Investment Category | Securities with gross unrealized loss positions at December 31, 2014 and 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 Months | Twelve Months or | Total | |||||||||||||||||||||||
Greater | |||||||||||||||||||||||||
Gross | Estimated | Gross | Estimated | Gross | Estimated | ||||||||||||||||||||
Unrealized | Fair | Unrealized | Fair | Unrealized | Fair | ||||||||||||||||||||
Loss | Value | Loss | Value | Loss | Value | ||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||
Fixed-maturity securities | |||||||||||||||||||||||||
U.S. treasury and U.S. government agencies | $ | (8 | ) | $ | 2,485 | $ | — | $ | — | $ | (8 | ) | $ | 2,485 | |||||||||||
Corporate bonds | (428 | ) | 12,929 | (2 | ) | 998 | (430 | ) | 13,927 | ||||||||||||||||
Mortgage-backed securities | (3 | ) | 1,018 | — | — | (3 | ) | 1,018 | |||||||||||||||||
State, municipalities, and political subdivisions | (19 | ) | 3,144 | (19 | ) | 202 | (38 | ) | 3,346 | ||||||||||||||||
Redeemable preferred stock | (54 | ) | 2,586 | — | — | (54 | ) | 2,586 | |||||||||||||||||
Total fixed-maturity securities | (512 | ) | 22,162 | (21 | ) | 1,200 | (533 | ) | 23,362 | ||||||||||||||||
Equity securities | (1,449 | ) | 18,848 | (82 | ) | 4,619 | (1,531 | ) | 23,467 | ||||||||||||||||
Total available-for-sale securities | $ | (1,961 | ) | $ | 41,010 | $ | (103 | ) | $ | 5,819 | $ | (2,064 | ) | $ | 46,829 | ||||||||||
At December 31, 2014, there were 94 securities in an unrealized loss position. Of these securities, 9 securities had been in an unrealized loss position for 12 months or greater. | |||||||||||||||||||||||||
Less Than Twelve Months | Twelve Months or | Total | |||||||||||||||||||||||
Greater | |||||||||||||||||||||||||
Gross | Estimated | Gross | Estimated | Gross | Estimated | ||||||||||||||||||||
Unrealized | Fair | Unrealized | Fair | Unrealized | Fair | ||||||||||||||||||||
Loss | Value | Loss | Value | Loss | Value | ||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
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 | ||||||||||||||||
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 joint venture partners received no distributions during 2014. The following tables provide summarized operating results and the financial position of FMJV: | ||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
Operating results: | |||||||||||||||||||||||||
Revenue | $ | — | |||||||||||||||||||||||
Operating expenses | 25 | ||||||||||||||||||||||||
Net loss | $ | (25 | ) | ||||||||||||||||||||||
Melbourne FMA’s share of net loss* | $ | (23 | ) | ||||||||||||||||||||||
* | Included in net investment income in the Company’s consolidated statements of income. | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
Balance Sheet: | |||||||||||||||||||||||||
Construction in progress - real estate | $ | 3,612 | |||||||||||||||||||||||
Cash | 1,323 | ||||||||||||||||||||||||
Other | 40 | ||||||||||||||||||||||||
Total assets | $ | 4,975 | |||||||||||||||||||||||
Other liabilities | — | ||||||||||||||||||||||||
Members’ capital | 4,975 | ||||||||||||||||||||||||
Total liabilities and members’ capital | $ | 4,975 | |||||||||||||||||||||||
Investment in joint venture, at equity | $ | 4,477 | |||||||||||||||||||||||
Summary of Real Estate Investment | Real estate investments consist of the following as of December 31, 2014 and 2013: | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Land | $ | 11,476 | $ | 11,299 | |||||||||||||||||||||
Land improvements | 1,425 | 1,351 | |||||||||||||||||||||||
Building | 3,097 | 3,022 | |||||||||||||||||||||||
Other | 1,359 | 1,262 | |||||||||||||||||||||||
Total, at cost | 17,357 | 16,934 | |||||||||||||||||||||||
Less: accumulated depreciation and amortization | (1,107 | ) | (706 | ) | |||||||||||||||||||||
Real estate, net | 16,250 | 16,228 | |||||||||||||||||||||||
ADC Arrangement classified as real estate investment | 2,888 | — | |||||||||||||||||||||||
Real estate investments | $ | 19,138 | $ | 16,228 | |||||||||||||||||||||
Investment Income Summarized | Net investment income (loss), by source, is summarized as follows: | ||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||
Fixed-maturity securities | $ | 3,339 | $ | 1,868 | $ | 1,464 | |||||||||||||||||||
Equity securities | 2,364 | 499 | 492 | ||||||||||||||||||||||
Other-than-temporary impairment charge | (107 | ) | — | — | |||||||||||||||||||||
Investment expense | (436 | ) | (210 | ) | (150 | ) | |||||||||||||||||||
Limited partnership investment | (90 | ) | — | — | |||||||||||||||||||||
Time deposits | — | — | 357 | ||||||||||||||||||||||
Real estate investments | (955 | ) | (1,045 | ) | (1,334 | ) | |||||||||||||||||||
Cash and cash equivalents | 666 | 357 | 151 | ||||||||||||||||||||||
$ | 4,781 | $ | 1,469 | $ | 980 | ||||||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Available-for-Sale Securities Measured at Fair Value | The following tables present information about the Company’s financial assets measured at estimated fair value on a recurring basis. The table indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as of December 31, 2014 and 2013: | ||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||
As of December 31, 2014 | |||||||||||||||||
Financial Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 314,716 | $ | — | $ | — | $ | 314,716 | |||||||||
Fixed-maturity securities: | |||||||||||||||||
U.S. Treasury and U.S. government agencies | 1,069 | 2,679 | — | 3,748 | |||||||||||||
Corporate bonds | 22,274 | 1,695 | — | 23,969 | |||||||||||||
Mortgage-backed securities | — | 2,139 | — | 2,139 | |||||||||||||
State, municipalities, and political subdivisions | — | 57,503 | — | 57,503 | |||||||||||||
Redeemable preferred stock | 9,557 | — | — | 9,557 | |||||||||||||
Other | — | 168 | — | 168 | |||||||||||||
Total fixed-maturity securities | 32,900 | 64,184 | — | 97,084 | |||||||||||||
Equity securities | 45,550 | — | — | 45,550 | |||||||||||||
Total available-for-sale securities | 78,450 | 64,184 | — | 142,634 | |||||||||||||
Total | $ | 393,166 | $ | 64,184 | $ | — | $ | 457,350 | |||||||||
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 | |||||||||||||
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 | |||||||||
Schedule of Fair Value Information for Financial Assets and Liabilities Carried on Balance Sheet | The following tables present fair value information for assets and liabilities that are carried on the balance sheet at amounts other than fair value as of December 31, 2014 and 2013: | ||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||
As of December 31, 2014 | |||||||||||||||||
Financial Assets: | |||||||||||||||||
ADC Arrangement classified as real estate investment | $ | — | $ | — | $ | 2,835 | $ | 2,835 | |||||||||
Financial Liabilities: | |||||||||||||||||
Long-term debt: | |||||||||||||||||
8% Senior notes | $ | — | $ | 42,955 | $ | — | $ | 42,955 | |||||||||
3.875% Convertible senior notes | — | — | 93,367 | 93,367 | |||||||||||||
Total long-term debt | $ | — | $ | 42,955 | $ | 93,367 | $ | 136,322 | |||||||||
Fair Value Measurements Using | |||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||
As of December 31, 2013 | |||||||||||||||||
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 | |||||||||
Deferred_Policy_Acquisition_Co1
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Insurance [Abstract] | |||||||||
Summary of Activity with Respect to Deferred Policy Acquisition Costs | The following table summarizes the activity with respect to deferred policy acquisition costs: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Beginning balance | $ | 14,071 | $ | 10,032 | |||||
Policy acquisition costs deferred | 33,861 | 31,097 | |||||||
Amortization | (32,918 | ) | (27,058 | ) | |||||
Ending balance | $ | 15,014 | $ | 14,071 | |||||
Property_and_Equipment_net_Tab
Property and Equipment, net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Summary of Property and Equipment, Net | Property and equipment, net consists of the following: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Land | $ | 1,642 | $ | 1,642 | |||||
Building | 7,622 | 7,596 | |||||||
Computer hardware and software | 1,617 | 1,486 | |||||||
Office furniture and equipment | 1,647 | 1,407 | |||||||
Tenant and leasehold improvements | 3,093 | 3,093 | |||||||
Other | 691 | 629 | |||||||
Total, at cost | 16,312 | 15,853 | |||||||
Less: accumulated depreciation and amortization | (4,020 | ) | (2,721 | ) | |||||
Property and equipment, net | $ | 12,292 | $ | 13,132 | |||||
Other_Assets_Tables
Other Assets (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||
Summary of Other Assets | The following table summarizes the Company’s other assets: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Benefits receivable related to retrospective reinsurance contracts | $ | 28,123 | $ | 8,815 | |||||
Deferred costs related to retrospective reinsurance contracts | 473 | 194 | |||||||
Deferred offering costs on senior notes issued in 2013 | 3,653 | 4,305 | |||||||
Prepaid expenses | 1,444 | 771 | |||||||
Other | 1,594 | 1,729 | |||||||
Total other assets | $ | 35,287 | $ | 15,814 | |||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Summary of Long-term Debt | The following table summarizes the Company’s long-term debt: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
8% Senior Notes, due January 30, 2020 | $ | 40,250 | $ | 40,250 | |||||
3.875% Convertible Senior Notes, due March 15, 2019* | 89,289 | 86,682 | |||||||
Total long-term debt | $ | 129,539 | $ | 126,932 | |||||
* net carrying value | |||||||||
Equity and Liability Components of the Convertible Notes | The following table summarizes information regarding the equity and liability components of the Convertible Notes: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Principal amount | $ | 103,000 | $ | 103,000 | |||||
Unamortized discount | (13,711 | ) | (16,318 | ) | |||||
Liability component – net carrying value | $ | 89,289 | $ | 86,682 | |||||
Equity component – conversion, net of offering costs | $ | 15,900 | $ | 15,900 | |||||
Reinsurance_Tables
Reinsurance (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 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 treaties on premiums written and earned is as follows: | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Premiums Written: | |||||||||||||
Direct | $ | 341,685 | $ | 315,695 | $ | 205,839 | |||||||
Assumed | 65,968 | 39,076 | 73,340 | ||||||||||
Gross written | 407,653 | 354,771 | 279,179 | ||||||||||
Ceded | (113,423 | ) | (102,865 | ) | (75,939 | ) | |||||||
Net premiums written | $ | 294,230 | $ | 251,906 | $ | 203,240 | |||||||
Premiums Earned: | |||||||||||||
Direct | $ | 332,175 | $ | 273,037 | $ | 168,937 | |||||||
Assumed | 33,313 | 64,076 | 64,670 | ||||||||||
Gross earned | 365,488 | 337,113 | 233,607 | ||||||||||
Ceded | (113,423 | ) | (102,865 | ) | (75,939 | ) | |||||||
Net premiums earned | $ | 252,065 | $ | 234,248 | $ | 157,668 | |||||||
Losses_and_Loss_Adjustment_Exp1
Losses and Loss Adjustment Expenses (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Insurance [Abstract] | |||||||||||||
Liability for Losses and Loss Adjustment Expenses | Activity in the liability for losses and LAE is summarized as follows: | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance, beginning of year | $ | 43,686 | $ | 41,168 | $ | 27,424 | |||||||
Incurred related to: | |||||||||||||
Current year | 75,810 | 67,579 | 66,425 | ||||||||||
Prior years | 3,658 | (2,456 | ) | (115 | ) | ||||||||
Total incurred | 79,468 | 65,123 | 66,310 | ||||||||||
Paid related to: | |||||||||||||
Current year | (47,650 | ) | (40,240 | ) | (36,914 | ) | |||||||
Prior years | (26,596 | ) | (22,365 | ) | (15,652 | ) | |||||||
Total paid | (74,246 | ) | (62,605 | ) | (52,566 | ) | |||||||
Balance, end of year | $ | 48,908 | $ | 43,686 | $ | 41,168 | |||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||
Summary of Income Tax Expense | A summary of income tax expense is as follows: | ||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Current: | |||||||||||||||||||||||||
Federal | $ | 36,651 | $ | 34,372 | $ | 18,484 | |||||||||||||||||||
State | 6,222 | 5,844 | 3,168 | ||||||||||||||||||||||
Foreign | 167 | 118 | 137 | ||||||||||||||||||||||
Total current taxes | 43,040 | 40,334 | 21,789 | ||||||||||||||||||||||
Deferred: | |||||||||||||||||||||||||
Federal | (4,060 | ) | 514 | (1,986 | ) | ||||||||||||||||||||
State | (678 | ) | 43 | (380 | ) | ||||||||||||||||||||
Foreign | (4 | ) | — | — | |||||||||||||||||||||
Total deferred taxes | (4,742 | ) | 557 | (2,366 | ) | ||||||||||||||||||||
Income tax expense | $ | 38,298 | $ | 40,891 | $ | 19,423 | |||||||||||||||||||
Summary of the Differences Between the Statutory Federal Income Tax Rate and the Effective Tax Rate | The reasons for the differences between the statutory Federal income tax rate and the effective tax rate are summarized as follows: | ||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | ||||||||||||||||||||
Income taxes at statutory rate | $ | 35,337 | 35 | $ | 37,258 | 35 | $ | 17,353 | 35 | ||||||||||||||||
Increase (decrease) in income taxes resulting from: | |||||||||||||||||||||||||
State income taxes, net of federal tax benefits | 3,601 | 3.6 | 3,802 | 3.6 | 1,799 | 3.6 | |||||||||||||||||||
Other | (640 | ) | (0.7 | ) | (169 | ) | (0.2 | ) | 271 | 0.6 | |||||||||||||||
Income tax expense | $ | 38,298 | 37.9 | $ | 40,891 | 38.4 | $ | 19,423 | 39.2 | ||||||||||||||||
Significant Components of Net Deferred Income Tax Asset | Significant components of the Company’s net deferred income tax (liabilities) assets are as follows: | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||||||||
Unearned premiums | $ | 11,718 | $ | 8,829 | |||||||||||||||||||||
Losses and loss adjustment expenses | 866 | 885 | |||||||||||||||||||||||
Organizational costs | 83 | 95 | |||||||||||||||||||||||
Stock-based compensation | 3,081 | 2,026 | |||||||||||||||||||||||
Accrued expenses | 175 | 163 | |||||||||||||||||||||||
Deferred expenses | — | — | |||||||||||||||||||||||
Unearned revenue | 381 | 52 | |||||||||||||||||||||||
Bad debt reserve | 10 | 5 | |||||||||||||||||||||||
Total deferred tax assets | 16,314 | 12,055 | |||||||||||||||||||||||
Deferred tax liabilities: | |||||||||||||||||||||||||
Property and equipment | (1,604 | ) | (1,748 | ) | |||||||||||||||||||||
Deferred policy acquisition costs | (5,959 | ) | (5,600 | ) | |||||||||||||||||||||
Unrealized net gain on securities available-for-sale | (418 | ) | (700 | ) | |||||||||||||||||||||
Basis difference related to convertible senior notes | (5,110 | ) | (6,295 | ) | |||||||||||||||||||||
Prepaid expenses | (464 | ) | (296 | ) | |||||||||||||||||||||
Other | (260 | ) | (156 | ) | |||||||||||||||||||||
Total deferred tax liabilities | (13,815 | ) | (14,795 | ) | |||||||||||||||||||||
Net deferred tax assets (liabilities) | $ | 2,499 | $ | (2,740 | ) | ||||||||||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Summary of Numerator and Denominator of Basic and Fully Diluted Earnings Per Common Share | A summary of the numerator and denominator of the basic and fully diluted earnings per common share is presented below: | ||||||||||||
Income | Shares | Per Share | |||||||||||
(Numerator) | (Denominator) | Amount | |||||||||||
Year Ended December 31, 2014 | |||||||||||||
Net income | $ | 62,664 | |||||||||||
Less: Preferred stock dividends | 4 | ||||||||||||
Less: Income attributable to participating securities | (4,318 | ) | |||||||||||
Basic Earnings Per Share: | |||||||||||||
Income allocated to common stockholders | 58,350 | 9,888 | $ | 5.9 | |||||||||
Effect of Dilutive Securities: | |||||||||||||
Stock options | — | 137 | |||||||||||
Convertible preferred stock | (4 | ) | 20 | ||||||||||
Convertible senior notes | 4,343 | 1,649 | |||||||||||
Diluted Earnings Per Share: | |||||||||||||
Income available to common stockholders and assumed conversions | $ | 62,689 | 11,694 | $ | 5.36 | ||||||||
Year Ended December 31, 2013 | |||||||||||||
Net income | $ | 65,562 | |||||||||||
Less: Preferred stock dividends | (104 | ) | |||||||||||
Less: Income attributable to participating securities | (3,213 | ) | |||||||||||
Basic Earnings Per Share: | |||||||||||||
Income allocated to common stockholders | 62,245 | 10,691 | $ | 5.82 | |||||||||
Effect of Dilutive Securities: | |||||||||||||
Stock options | — | 163 | |||||||||||
Convertible preferred stock | 104 | 178 | |||||||||||
Convertible senior notes | 237 | 90 | |||||||||||
Diluted Earnings Per Share: | |||||||||||||
Income available to common stockholders and assumed conversions | $ | 62,586 | 11,122 | $ | 5.63 | ||||||||
Year Ended December 31, 2012 | |||||||||||||
Net income | $ | 30,157 | |||||||||||
Less: Preferred stock dividends | (322 | ) | |||||||||||
Less: Income attributable to participating securities | (488 | ) | |||||||||||
Basic Earnings Per Share: | |||||||||||||
Income available to common stockholders | 29,347 | 8,497 | $ | 3.45 | |||||||||
Effect of Dilutive Securities: | |||||||||||||
Stock options | — | 220 | |||||||||||
Convertible preferred stock | 322 | 655 | |||||||||||
Warrants | — | 441 | |||||||||||
Diluted Earnings Per Share: | |||||||||||||
Income available to common stockholders and assumed conversions | $ | 29,669 | 9,813 | $ | 3.02 | ||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 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 years ended December 31, 2014, 2013 and 2012 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, 2012 | 620,000 | $ | 2.97 | 5.7 years | $ | 3,122 | |||||||||
Exercised | (340,000 | ) | $ | 3.03 | |||||||||||
Outstanding at December 31, 2012 | 280,000 | $ | 2.91 | 4.9 years | $ | 5,007 | |||||||||
Outstanding at December 31, 2013 | 280,000 | $ | 2.91 | 3.9 years | $ | 14,166 | |||||||||
Exercised | (50,000 | ) | $ | 2.5 | |||||||||||
Outstanding at December 31, 2014 | 230,000 | $ | 3 | 3.0 years | $ | 9,256 | |||||||||
Exercisable at December 31, 2014 | 230,000 | $ | 3 | 3.0 years | $ | 9,256 | |||||||||
Information about Options Exercised | The following table summarizes information about options exercised, and the fair value of vested options for the years ended December 31, 2014, 2013 and 2012 (option amounts not in thousands): | ||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Options exercised | 50,000 | — | 340,000 | ||||||||||||
Total intrinsic value of exercised options | $ | 1,970 | $ | — | $ | 3,648 | |||||||||
Fair value of vested stock options | $ | 17 | $ | 17 | $ | 22 | |||||||||
Tax benefits realized | $ | 603 | $ | — | $ | 1,161 | |||||||||
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 years ended December 31, 2014, 2013 and 2012 is as follows (share amounts not in thousands): | ||||||||||||||
Number of | Weighted | ||||||||||||||
Restricted | Average | ||||||||||||||
Stock | Grant Date | ||||||||||||||
Awards | Fair Value | ||||||||||||||
Nonvested at January 1, 2012 | — | — | |||||||||||||
Granted | 246,320 | $ | 14.54 | ||||||||||||
Nonvested at December 31, 2012 | 246,320 | $ | 14.54 | ||||||||||||
Granted | 612,000 | $ | 27.36 | ||||||||||||
Vested | (93,000 | ) | $ | 12.18 | |||||||||||
Forfeited | (29,670 | ) | $ | 15.03 | |||||||||||
Nonvested at December 31, 2013 | 735,650 | $ | 25.48 | ||||||||||||
Granted | 108,720 | $ | 47.4 | ||||||||||||
Vested | (193,825 | ) | $ | 27.48 | |||||||||||
Forfeited | (10,840 | ) | $ | 41.53 | |||||||||||
Nonvested at December 31, 2014 | 639,705 | $ | 28.33 | ||||||||||||
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 years ended December 31, 2014, 2013 and 2012. | ||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Deferred tax benefits recognized | $ | 3,126 | $ | 2,062 | $ | 299 | |||||||||
Tax benefits realized for restricted stock and paid dividends | $ | 1,477 | $ | 1,060 | $ | — | |||||||||
Fair value of vested restricted stock | $ | 5,326 | $ | 1,133 | $ | — | |||||||||
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: | ||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Expected dividends per share | $1.10 | $0.90 | $0.80 | ||||||||||||
Expected volatility | 42.1 – 46.6% | 41.5 – 51.6% | 36.7 – 50.0% | ||||||||||||
Risk-free interest rate | 0.1 – 1.5% | 0.0 – 1.9% | 0.1 – 1.2% | ||||||||||||
Estimated cost of capital | 11.50% | 9.3 – 10.3% | 11.9 – 12.1% | ||||||||||||
Expected life (in years) | 4 | 4.00 – 6.00 | 6 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Minimum Future Rental Payments Under Operating Leases | Provided the lease is not early terminated, minimum future rental payments under operating leases after December 31, 2014 are as follows: | ||||
Year | Amount | ||||
2015 | $ | 118 | |||
2016 | 123 | ||||
2017 | 130 | ||||
2018 | 136 | ||||
2019 | 143 | ||||
Thereafter | 308 | ||||
Total minimum future payments | $ | 958 | |||
Minimum Future Payments Under the Service Agreements | Provided the agreement is not early terminated, minimum future payments under the service agreement after December 31, 2014 are as follows: | ||||
Year | Amount | ||||
2015 | $ | 21 | |||
2016 | 22 | ||||
2017 | 24 | ||||
2018 | 24 | ||||
2019 | 26 | ||||
Thereafter | 55 | ||||
Total minimum future payments | $ | 172 | |||
Rental Income Due Under Non-Cancellable Operating Leases | Expected annual rental income due under non-cancellable operating leases for all properties and other investments owned at December 31, 2014 are as follows: | ||||
Year | Amount | ||||
2015 | $ | 995 | |||
2016 | 698 | ||||
2017 | 248 | ||||
2018 | 86 | ||||
2019 | 47 | ||||
Total | $ | 2,074 | |||
Quarterly_Results_of_Operation1
Quarterly Results of Operations (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Summary of Unaudited Quarterly Results of Operations | The tables below summarize unaudited quarterly results of operations for 2014, 2013 and 2012. | ||||||||||||||||
Three Months Ended | |||||||||||||||||
3/31/14 | 6/30/14 | 9/30/14 | 12/31/14 | ||||||||||||||
Net premiums earned | $ | 66,380 | $ | 62,649 | $ | 61,260 | $ | 61,776 | |||||||||
Total revenue | 68,117 | 66,284 | 66,955 | 64,752 | |||||||||||||
Losses and loss adjustment expenses | 18,565 | 18,383 | 21,991 | 20,529 | |||||||||||||
Policy acquisition and other underwriting expenses | 9,129 | 9,559 | 9,986 | 9,278 | |||||||||||||
Interest expense | 2,574 | 2,609 | 2,626 | 2,644 | |||||||||||||
Total expenses | 39,807 | 39,901 | 44,180 | 41,258 | |||||||||||||
Income before income taxes | 28,310 | 26,383 | 22,775 | 23,494 | |||||||||||||
Net income | 17,620 | 16,430 | 14,052 | 14,562 | |||||||||||||
Net income available to common stockholders | 17,623 | 16,431 | 14,052 | 14,562 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic | $ | 1.6 | $ | 1.53 | $ | 1.34 | $ | 1.43 | |||||||||
Diluted | $ | 1.44 | $ | 1.39 | $ | 1.23 | $ | 1.3 | |||||||||
Three Months Ended | |||||||||||||||||
3/31/13 | 6/30/13 | 9/30/13 | 12/31/13 | ||||||||||||||
Net premiums earned | $ | 60,551 | $ | 57,335 | $ | 52,934 | $ | 63,428 | |||||||||
Total revenue | 61,811 | 59,333 | 54,692 | 65,252 | |||||||||||||
Losses and loss adjustment expenses | 15,872 | 17,414 | 14,489 | 17,348 | |||||||||||||
Policy acquisition and other underwriting expenses | 5,968 | 7,308 | 8,887 | 9,456 | |||||||||||||
Interest expense | 686 | 846 | 847 | 1,228 | |||||||||||||
Total expenses | 28,641 | 32,926 | 33,048 | 40,020 | |||||||||||||
Income before income taxes | 33,170 | 26,407 | 21,644 | 25,232 | |||||||||||||
Net income | 20,387 | 16,235 | 13,378 | 15,562 | |||||||||||||
Net income available to common stockholders | 20,353 | 16,203 | 13,356 | 15,546 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic | $ | 1.87 | $ | 1.44 | $ | 1.17 | $ | 1.36 | |||||||||
Diluted | $ | 1.81 | $ | 1.4 | $ | 1.13 | $ | 1.31 | |||||||||
Three Months Ended | |||||||||||||||||
3/31/12 | 6/30/12 | 9/30/12 | 12/31/12 | ||||||||||||||
Net premiums earned | $ | 40,431 | $ | 37,070 | $ | 30,603 | $ | 49,564 | |||||||||
Total revenue | 41,652 | 38,855 | 31,481 | 51,077 | |||||||||||||
Losses and loss adjustment expenses | 19,168 | 16,197 | 15,017 | 15,928 | |||||||||||||
Policy acquisition and other underwriting expenses | 6,836 | 6,243 | 6,611 | 6,240 | |||||||||||||
Total expenses | 30,271 | 26,846 | 26,356 | 30,012 | |||||||||||||
Income before income taxes | 11,381 | 12,009 | 5,125 | 21,065 | |||||||||||||
Net income | 6,968 | 7,262 | 2,826 | 13,101 | |||||||||||||
Net income available to common stockholders | 6,787 | 7,199 | 2,784 | 13,065 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic | $ | 1.07 | $ | 0.85 | $ | 0.3 | $ | 1.27 | |||||||||
Diluted | $ | 0.88 | $ | 0.74 | $ | 0.27 | $ | 1.19 |
Condensed_Financial_Informatio1
Condensed Financial Information of HCI Group, Inc. (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||
Balance Sheets | Balance Sheets | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Assets | |||||||||||||
Cash and cash equivalents | $ | 32,082 | $ | 87,715 | |||||||||
Fixed-maturity securities, available for sale, at fair value | 4,652 | 56 | |||||||||||
Equity securities, available for sale, at fair value | 8,802 | 6,581 | |||||||||||
Limited partnership investment, at equity | 2,550 | — | |||||||||||
Investment in subsidiaries | 298,726 | 214,958 | |||||||||||
Property and equipment, net | 946 | 1,119 | |||||||||||
Income tax receivable | 2,596 | 1,782 | |||||||||||
Other assets | 4,699 | 5,705 | |||||||||||
Total assets | $ | 355,053 | $ | 317,916 | |||||||||
Liabilities and Stockholders’ Equity | |||||||||||||
Accrued expenses and other liabilities | $ | 3,085 | $ | 1,863 | |||||||||
Deferred income taxes, net | 3,631 | 5,888 | |||||||||||
Dividends payable | — | 19 | |||||||||||
Long-term debt | 129,539 | 126,932 | |||||||||||
Due to related parties | 36,213 | 22,693 | |||||||||||
Total liabilities | 172,468 | 157,395 | |||||||||||
Total stockholders’ equity | 182,585 | 160,521 | |||||||||||
Total liabilities and stockholders’ equity | $ | 355,053 | $ | 317,916 | |||||||||
Statements of Income | Statements of Income | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net investment income | $ | 739 | $ | 84 | $ | 8 | |||||||
Net realized gain (loss) on investments | 309 | (2 | ) | — | |||||||||
Other income | 120 | 864 | 144 | ||||||||||
Interest expense | (10,453 | ) | (3,607 | ) | — | ||||||||
Operating expenses | (7,745 | ) | (4,865 | ) | (2,812 | ) | |||||||
Loss before income tax benefit and equity in income of subsidiaries | (17,030 | ) | (7,526 | ) | (2,660 | ) | |||||||
Income tax benefit | 6,462 | 2,863 | 750 | ||||||||||
Net loss before equity in income of subsidiaries | (10,568 | ) | (4,663 | ) | (1,910 | ) | |||||||
Equity in income of subsidiaries | 73,232 | 70,225 | 32,067 | ||||||||||
Net income | $ | 62,664 | $ | 65,562 | $ | 30,157 | |||||||
Statements of Cash Flows | Statements of Cash Flows | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Cash flows from operating activities: | |||||||||||||
Net income | $ | 62,664 | $ | 65,562 | $ | 30,157 | |||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||||
Stock-based compensation | 5,502 | 2,362 | 237 | ||||||||||
Net realized investment (gain) loss | (309 | ) | 2 | — | |||||||||
Depreciation and amortization | 3,712 | 1,000 | 788 | ||||||||||
Loss from limited partnership investment | 90 | — | — | ||||||||||
Equity in income of subsidiaries | (73,232 | ) | (70,225 | ) | (32,067 | ) | |||||||
Deferred income taxes | (2,058 | ) | (914 | ) | 763 | ||||||||
Changes in operating assets and liabilities: | |||||||||||||
Income taxes receivable | (814 | ) | 597 | (2,379 | ) | ||||||||
Other assets | 629 | (1,001 | ) | 84 | |||||||||
Accrued expenses and other liabilities | 1,116 | 1,136 | (1,051 | ) | |||||||||
Income taxes payable | — | — | (1,605 | ) | |||||||||
Due to related parties | 11,520 | (6,338 | ) | 5,314 | |||||||||
Net cash provided by (used in) operating activities | 8,820 | (7,819 | ) | 241 | |||||||||
Cash flows from investing activities: | |||||||||||||
Investment in limited partnership interest | (2,640 | ) | — | — | |||||||||
Purchase of fixed-maturity securities | (2,616 | ) | (64 | ) | — | ||||||||
Purchase of equity securities | (7,000 | ) | (6,835 | ) | — | ||||||||
Purchases of property and equipment | (277 | ) | (262 | ) | (668 | ) | |||||||
Proceeds from sales of equity securities | 5,212 | 361 | — | ||||||||||
Dividends received from subsidiary | — | 4,000 | 6,000 | ||||||||||
Investment in subsidiaries | (8,402 | ) | (5,735 | ) | (24,056 | ) | |||||||
Net cash used in investing activities | (15,723 | ) | (8,535 | ) | (18,724 | ) | |||||||
Cash flows from financing activities: | |||||||||||||
Net proceeds from the issuance of common stock | — | — | 20,082 | ||||||||||
Repurchases of common stock | (643 | ) | (30,886 | ) | — | ||||||||
Repurchases of common stock under share repurchase plan | (38,354 | ) | — | — | |||||||||
Cash dividends paid to stockholders | (12,355 | ) | (10,902 | ) | (8,561 | ) | |||||||
Cash dividends received under share repurchase forward contract | 685 | — | — | ||||||||||
Proceeds from exercise of stock options | 125 | — | 283 | ||||||||||
Proceeds from exercise of stock warrants | — | — | 11,869 | ||||||||||
Proceeds from issuance of long-term debt | — | 143,250 | — | ||||||||||
Redemption of Series A preferred stock | (34 | ) | — | — | |||||||||
Debt issuance costs paid | (234 | ) | (4,770 | ) | (35 | ) | |||||||
Tax benefits on stock-based compensation | 2,080 | 1,060 | 1,161 | ||||||||||
Net cash (used in) provided by financing activities | (48,730 | ) | 97,752 | 24,799 | |||||||||
Net (decrease) increase in cash and cash equivalents | (55,633 | ) | 81,398 | 6,316 | |||||||||
Cash and cash equivalents at beginning of year | 87,715 | 6,317 | 1 | ||||||||||
Cash and cash equivalents at end of year | $ | 32,082 | $ | 87,715 | $ | 6,317 | |||||||
Nature_of_Operations_Additiona
Nature of Operations - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Transactions | |
Restaurants | |
Segment | |
Collaboration Arrangement Disclosure [Abstract] | |
Number of restaurant owned | 1 |
Number of reportable business segment | 1 |
Number of separate assumption transactions | 11 |
Offer renewals on the policies acquired | 3 years |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Cash and cash equivalent investments with original maturities | 3 months | ||
Statutory deposit held in cash and cash equivalent | $300,000 | $300,000 | |
Percentage of investment in unconsolidated entities | 90.00% | ||
ADC Arrangement | Under the ADC Arrangement, the Company 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 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. | ||
Period for establishing allowance on insurance premiums receivable | 90 days | ||
Allowance on insurance premiums receivable | $0 | $0 | |
Percentage of minimum tax benefit realized upon settlement | 50.00% | ||
Likelihood of tax realization upon settlement | 50.00% | ||
Investment in Joint Venture [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Percentage of investment in unconsolidated entities | 90.00% | ||
Building [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Useful lives of Property and Equipment | 39 years | ||
Computer Hardware and Software [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Useful lives of Property and Equipment | 3 years | ||
Minimum [Member] | Office Furniture and Equipment [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Useful lives of Property and Equipment | 3 years | ||
Maximum [Member] | Office Furniture and Equipment [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Useful lives of Property and Equipment | 7 years |
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 $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed-maturity securities, Cost or Amortized Cost | $96,163 | $110,738 |
Total available-for-sale securities, Gross Unrealized Gain | 3,148 | 2,862 |
Equity securities, Cost or Amortized Cost | 45,387 | 17,248 |
Total Available-for-sale securities, Gross Unrealized Loss | -2,064 | -1,048 |
Total available-for-sale securities, Cost or Amortized Cost | 141,550 | 127,986 |
Total available-for-sale securities, Estimated Fair Value | 97,084 | 112,151 |
Equity securities, Estimated Fair Value | 45,550 | 17,649 |
Total available-for-sale securities, Estimated Fair Value | 142,634 | 129,800 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available-for-sale securities, Gross Unrealized Gain | 1,694 | 920 |
Equity securities, Cost or Amortized Cost | 45,387 | 17,248 |
Total Available-for-sale securities, Gross Unrealized Loss | -1,531 | -519 |
Equity securities, Estimated Fair Value | 45,550 | 17,649 |
Fixed-Maturity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed-maturity securities, Cost or Amortized Cost | 96,163 | 110,738 |
Total available-for-sale securities, Gross Unrealized Gain | 1,454 | 1,942 |
Total Available-for-sale securities, Gross Unrealized Loss | -533 | -529 |
Total available-for-sale securities, Estimated Fair Value | 97,084 | 112,151 |
Fixed-Maturity Securities [Member] | U.S. Treasury and U.S. Government Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed-maturity securities, Cost or Amortized Cost | 3,747 | 4,549 |
Total available-for-sale securities, Gross Unrealized Gain | 9 | 37 |
Total Available-for-sale securities, Gross Unrealized Loss | -8 | -22 |
Total available-for-sale securities, Estimated Fair Value | 3,748 | 4,564 |
Fixed-Maturity Securities [Member] | Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed-maturity securities, Cost or Amortized Cost | 24,342 | 25,139 |
Total available-for-sale securities, Gross Unrealized Gain | 57 | 484 |
Total Available-for-sale securities, Gross Unrealized Loss | -430 | -219 |
Total available-for-sale securities, Estimated Fair Value | 23,969 | 25,404 |
Fixed-Maturity Securities [Member] | Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed-maturity securities, Cost or Amortized Cost | 2,138 | 10,929 |
Total available-for-sale securities, Gross Unrealized Gain | 4 | 499 |
Total Available-for-sale securities, Gross Unrealized Loss | -3 | -96 |
Total available-for-sale securities, Estimated Fair Value | 2,139 | 11,332 |
Fixed-Maturity Securities [Member] | State, Municipalities, and Political Subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed-maturity securities, Cost or Amortized Cost | 56,336 | 69,715 |
Total available-for-sale securities, Gross Unrealized Gain | 1,205 | 917 |
Total Available-for-sale securities, Gross Unrealized Loss | -38 | -181 |
Total available-for-sale securities, Estimated Fair Value | 57,503 | 70,451 |
Fixed-Maturity Securities [Member] | Redeemable Preferred Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed-maturity securities, Cost or Amortized Cost | 9,433 | 406 |
Total available-for-sale securities, Gross Unrealized Gain | 178 | 5 |
Total Available-for-sale securities, Gross Unrealized Loss | -54 | -11 |
Total available-for-sale securities, Estimated Fair Value | 9,557 | 400 |
Fixed-Maturity Securities [Member] | Other [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed-maturity securities, Cost or Amortized Cost | 167 | |
Total available-for-sale securities, Gross Unrealized Gain | 1 | |
Total available-for-sale securities, Estimated Fair Value | $168 |
Investments_Additional_Informa
Investments - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Investments [Line Items] | ||
Statutory deposit held in trust with Treasurer of Alabama | $300 | $300 |
U.S. Treasury and U.S. Government Agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Statutory deposit held in trust with Treasurer of Alabama | $113 | $105 |
Investments_Scheduled_Contract
Investments - Scheduled Contractual Maturities of Fixed-Maturity Securities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Available-for-sale | ||
Due in one year or less, Amortized Cost | $715 | $2,366 |
Due after one year through five years, Amortized Cost | 25,973 | 24,829 |
Due after five years through ten years, Amortized Cost | 57,157 | 59,083 |
Due after ten years, Amortized Cost | 10,180 | 13,531 |
Mortgage-backed securities, Amortized Cost | 2,138 | 10,929 |
Fixed-maturity securities, Cost or Amortized Cost | 96,163 | 110,738 |
Due in one year or less, Fair Value | 721 | 2,381 |
Due after one year through five years, Fair Value | 26,093 | 25,145 |
Due after five years through ten years, Fair Value | 57,560 | 59,582 |
Due after ten years, Fair Value | 10,571 | 13,711 |
Mortgage-backed securities, Fair Value | 2,139 | 11,332 |
Fair Value Total | $97,084 | $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 $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fixed-Maturity Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Proceeds | $98,365 | $1,749 | $8,991 |
Gross Realized Gains | 4,096 | 92 | 421 |
Gross Realized Losses | -98 | -4 | -6 |
Equity Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Proceeds | 16,810 | 2,809 | 1,735 |
Gross Realized Gains | 1,372 | 155 | 91 |
Gross Realized Losses | ($635) | ($163) | ($230) |
Investments_Summary_of_Securit
Investments - Summary of Securities with Gross Unrealized Loss Positions Aggregated by Investment Category (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | ($1,961) | ($795) |
Fair Value, Less than Twelve Months | 41,010 | 46,186 |
Gross Unrealized Loss, Twelve Months or Greater | -103 | -253 |
Fair Value, Twelve Months or Greater | 5,819 | 1,299 |
Gross Unrealized Loss, Total | -2,064 | -1,048 |
Fair Value, Total | 46,829 | 47,485 |
Fixed-Maturity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | -512 | -522 |
Fair Value, Less than Twelve Months | 22,162 | 35,444 |
Gross Unrealized Loss, Twelve Months or Greater | -21 | -7 |
Fair Value, Twelve Months or Greater | 1,200 | 230 |
Gross Unrealized Loss, Total | -533 | -529 |
Fair Value, Total | 23,362 | 35,674 |
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 | -8 | -22 |
Fair Value, Less than Twelve Months | 2,485 | 3,291 |
Gross Unrealized Loss, Total | -8 | -22 |
Fair Value, Total | 2,485 | 3,291 |
Fixed-Maturity Securities [Member] | Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | -428 | -212 |
Fair Value, Less than Twelve Months | 12,929 | 9,502 |
Gross Unrealized Loss, Twelve Months or Greater | -2 | -7 |
Fair Value, Twelve Months or Greater | 998 | 230 |
Gross Unrealized Loss, Total | -430 | -219 |
Fair Value, Total | 13,927 | 9,732 |
Fixed-Maturity Securities [Member] | Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | -3 | -96 |
Fair Value, Less than Twelve Months | 1,018 | 2,179 |
Gross Unrealized Loss, Total | -3 | -96 |
Fair Value, Total | 1,018 | 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 | -19 | -181 |
Fair Value, Less than Twelve Months | 3,144 | 20,233 |
Gross Unrealized Loss, Twelve Months or Greater | -19 | |
Fair Value, Twelve Months or Greater | 202 | |
Gross Unrealized Loss, Total | -38 | -181 |
Fair Value, Total | 3,346 | 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 | -54 | -11 |
Fair Value, Less than Twelve Months | 2,586 | 239 |
Gross Unrealized Loss, Total | -54 | -11 |
Fair Value, Total | 2,586 | 239 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | -1,449 | -273 |
Fair Value, Less than Twelve Months | 18,848 | 10,742 |
Gross Unrealized Loss, Twelve Months or Greater | -82 | -246 |
Fair Value, Twelve Months or Greater | 4,619 | 1,069 |
Gross Unrealized Loss, Total | -1,531 | -519 |
Fair Value, Total | $23,467 | $11,811 |
Investments_Otherthantemporary
Investments (Other-than-temporary Impairment) - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Securities | Securities | |
Amortized Cost and Fair Value Debt Securities [Abstract] | ||
Number of securities in an unrealized position | 94 | 100 |
Number of securities had been in an unrealized loss position | 9 | 8 |
Other-than-temporary impairment charge | $107 |
Investments_Limited_Partnershi
Investments (Limited Partnership Investment) - Additional Information (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Schedule of Investments [Line Items] | |
Company's contributed capital to the partnership | $2,640 |
Limited partnership interest | 16.50% |
Recognized investment loss | -90 |
Company's contributed capital carrying value | 2,550 |
Maximum [Member] | |
Schedule of Investments [Line Items] | |
Company's contributed capital to the partnership | $12,500 |
Minimum [Member] | |
Schedule of Investments [Line Items] | |
Investment lock period | 10 years |
Investments_Investment_in_Join
Investments (Investment in Joint Venture) - Additional Information (Detail) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Dec. 31, 2014 | |
Schedule of Investments [Line Items] | ||
Equity interest percentage | 90.00% | |
Cash contribution | $4,500,000 | |
Distribution | 0 | |
Maximum exposure loss relating to VIE | 4,477,000 | |
Undistributed loss from equity method investment | -23,000 | |
Fmkt [Member] | ||
Schedule of Investments [Line Items] | ||
Equity interest percentage | 10.00% | |
Cash contribution | $500,000 |
Investments_Summary_of_Operati
Investments - Summary of Operating Results and Financial Position (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating results: | |||||||||||||||
Operating expenses | $41,258 | $44,180 | $39,901 | $39,807 | $40,020 | $33,048 | $32,926 | $28,641 | $30,012 | $26,356 | $26,846 | $30,271 | $165,146 | $134,635 | $113,485 |
Net loss | -23 | ||||||||||||||
Balance Sheet: | |||||||||||||||
Other | 35,287 | 15,814 | 35,287 | 15,814 | |||||||||||
Other liabilities | 17,683 | 6,772 | 17,683 | 6,772 | |||||||||||
Total liabilities and stockholders' equity | 602,210 | 526,316 | 602,210 | 526,316 | |||||||||||
Investment in joint venture, at equity | 4,477 | 4,477 | |||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | |||||||||||||||
Operating results: | |||||||||||||||
Revenue | 0 | ||||||||||||||
Operating expenses | 25 | ||||||||||||||
Net loss | -25 | ||||||||||||||
Balance Sheet: | |||||||||||||||
Construction in progress - real estate | 3,612 | 3,612 | |||||||||||||
Cash | 1,323 | 1,323 | |||||||||||||
Other | 40 | 40 | |||||||||||||
Total assets | 4,975 | 4,975 | |||||||||||||
Other liabilities | 0 | 0 | |||||||||||||
Members' capital | 4,975 | 4,975 | |||||||||||||
Total liabilities and stockholders' equity | 4,975 | 4,975 | |||||||||||||
Melbourne FMA [Member] | Operating Expense [Member] | |||||||||||||||
Operating results: | |||||||||||||||
Net loss | ($23) |
Investments_Summary_of_Real_Es
Investments - Summary of Real Estate Investment (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Real Estate [Abstract] | ||
Land | $11,476 | $11,299 |
Land improvements | 1,425 | 1,351 |
Building | 3,097 | 3,022 |
Other | 1,359 | 1,262 |
Total, at cost | 17,357 | 16,934 |
Less: accumulated depreciation and amortization | -1,107 | -706 |
Real estate, net | 16,250 | 16,228 |
ADC Arrangement classified as real estate investment | 2,888 | |
Real estate investments | $19,138 | $16,228 |
Investments_Real_Estate_Invest
Investments (Real Estate Investments) - Additional Information (Detail) (USD $) | 12 Months Ended | 6 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Investments [Line Items] | ||||
Maximum Amount of Loan Receivable | 9,785 | |||
ADC Arrangement | Under the ADC Arrangement, the Company 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 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. | |||
Maximum exposure to loss relating to the VIE | 4,477 | |||
ADC Arrangement [Member] | ||||
Schedule of Investments [Line Items] | ||||
Percentage of rentable space secured | 90.00% | |||
Interest Rate on Loan Receivable | 6.00% | |||
ADC Arrangement | 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. | |||
Maximum exposure to loss relating to the VIE | 2,888 | |||
Minimum [Member] | ||||
Schedule of Investments [Line Items] | ||||
Term of Loan Receivable | 24 months | |||
Maximum [Member] | ||||
Schedule of Investments [Line Items] | ||||
Term of Loan Receivable | 36 months | |||
Real Estate Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Depreciation and amortization expenses under real estate investments | $402 | $388 | $279 |
Investments_Investment_Income_
Investments - Investment Income Summarized (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Available-for-sale Securities [Line Items] | |||
Other-than-temporary impairment charge | ($107) | ||
Investment income | -90 | ||
Investment income, Total | 4,781 | 1,469 | 980 |
Available-for-Sale Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Other-than-temporary impairment charge | -107 | ||
Available-for-Sale Securities [Member] | Fixed-Maturity Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Investment income | 3,339 | 1,868 | 1,464 |
Available-for-Sale Securities [Member] | Equity Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Investment income | 2,364 | 499 | 492 |
Available-for-Sale Securities [Member] | Investment Expense [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Investment expense | -436 | -210 | -150 |
Limited Partnership Investment [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Investment income | -90 | ||
Time Deposits [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Investment income | 357 | ||
Real Estate Investments [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Investment expense | -955 | -1,045 | -1,334 |
Cash and Cash Equivalents [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Investment income | $666 | $357 | $151 |
Investments_Net_Investment_Inc
Investments (Net Investment Income (Loss)) - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | Bank | Bank | ||
Accounts | Accounts | |||
Schedule of Investments [Line Items] | ||||
Cash and cash equivalents | $314,716 | $293,398 | $230,214 | $100,355 |
Deposits representing cash and cash equivalents in percentage | 74.40% | 82.30% | ||
Number of national banks | 3 | 3 | ||
Number of custodial accounts | 3 | 2 | ||
Custodial Accounts [Member] | ||||
Schedule of Investments [Line Items] | ||||
Cash and cash equivalents | 48,674 | 22,252 | ||
Bank Deposits [Member] | ||||
Schedule of Investments [Line Items] | ||||
Cash and cash equivalents | $234,025 | $241,378 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 11, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
ADC Arrangement | Under the ADC Arrangement, the Company 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 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. | ||
Equity method investment | 2,640,000 | ||
Limited partnership interest | 16.50% | ||
Debt instrument stated interest rate | 3.88% | ||
Fair value transfer level 2 from level 1 | 10,684,000 | ||
Fair value transfers between Level 1, 2 or 3 | 0 | ||
Maximum [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity method investment | 12,500,000 | ||
Senior Notes [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed annual rate of interest | 8.00% | ||
Debt instrument, maturity year | 2020 | ||
Convertible Senior Notes [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt instrument stated interest rate | 3.88% | 3.88% | 3.88% |
Debt instrument, maturity year | 2019 | ||
ADC Arrangement [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
ADC Arrangement | 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. |
Fair_Value_Measurements_Availa
Fair Value Measurements - Available-for-Sale Securities Measured at Fair Value (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial Assets: | ||
Total fixed-maturity securities | $97,084 | $112,151 |
Equity securities | 45,550 | 17,649 |
Total available-for-sale securities | 142,634 | 129,800 |
(Level 1) [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 314,716 | 293,398 |
Total available-for-sale securities | 78,450 | 46,045 |
Total financial assets | 393,166 | 339,443 |
(Level 2) [Member] | ||
Financial Assets: | ||
Total available-for-sale securities | 64,184 | 83,755 |
Total financial assets | 64,184 | 83,755 |
Fixed-Maturity Securities [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 97,084 | 112,151 |
Fixed-Maturity Securities [Member] | (Level 1) [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 32,900 | 28,396 |
Fixed-Maturity Securities [Member] | (Level 1) [Member] | U.S. Treasury and U.S. Government Agencies [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 1,069 | 3,520 |
Fixed-Maturity Securities [Member] | (Level 1) [Member] | Corporate Bonds [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 22,274 | 24,476 |
Fixed-Maturity Securities [Member] | (Level 1) [Member] | Redeemable Preferred Stock [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 9,557 | 400 |
Fixed-Maturity Securities [Member] | (Level 2) [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 64,184 | 83,755 |
Fixed-Maturity Securities [Member] | (Level 2) [Member] | U.S. Treasury and U.S. Government Agencies [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 2,679 | 1,044 |
Fixed-Maturity Securities [Member] | (Level 2) [Member] | Corporate Bonds [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 1,695 | 928 |
Fixed-Maturity Securities [Member] | (Level 2) [Member] | Mortgage-Backed Securities [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 2,139 | 11,332 |
Fixed-Maturity Securities [Member] | (Level 2) [Member] | State, Municipalities, and Political Subdivisions [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 57,503 | 70,451 |
Fixed-Maturity Securities [Member] | (Level 2) [Member] | Other [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 168 | |
Equity Securities [Member] | (Level 1) [Member] | ||
Financial Assets: | ||
Equity securities | 45,550 | 17,649 |
Fair Value, Measurements, Recurring [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 314,716 | 293,398 |
Total available-for-sale securities | 142,634 | 129,800 |
Total financial assets | 457,350 | 423,198 |
Fair Value, Measurements, Recurring [Member] | Fixed-Maturity Securities [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 97,084 | 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 | 3,748 | 4,564 |
Fair Value, Measurements, Recurring [Member] | Fixed-Maturity Securities [Member] | Corporate Bonds [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 23,969 | 25,404 |
Fair Value, Measurements, Recurring [Member] | Fixed-Maturity Securities [Member] | Mortgage-Backed Securities [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 2,139 | 11,332 |
Fair Value, Measurements, Recurring [Member] | Fixed-Maturity Securities [Member] | State, Municipalities, and Political Subdivisions [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 57,503 | 70,451 |
Fair Value, Measurements, Recurring [Member] | Fixed-Maturity Securities [Member] | Redeemable Preferred Stock [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 9,557 | 400 |
Fair Value, Measurements, Recurring [Member] | Fixed-Maturity Securities [Member] | Other [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 168 | |
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | ||
Financial Assets: | ||
Equity securities | $45,550 | $17,649 |
Fair_Value_Measurements_Schedu
Fair Value Measurements - Schedule of Fair Value Information for Financial Assets and Liabilities Carried on Balance Sheet (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial Assets: | ||
ADC Arrangement classified as real estate investment | $2,888 | |
(Level 2) [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 42,955 | 43,390 |
(Level 2) [Member] | Senior Notes [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 42,955 | 43,390 |
(Level 3) [Member] | ||
Financial Assets: | ||
ADC Arrangement classified as real estate investment | 2,835 | |
Financial Liabilities: | ||
Total long-term debt | 93,367 | 86,630 |
(Level 3) [Member] | Convertible Senior Notes [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 93,367 | 86,630 |
Fair Value, Measurements, Recurring [Member] | ||
Financial Assets: | ||
ADC Arrangement classified as real estate investment | 2,835 | |
Financial Liabilities: | ||
Total long-term debt | 136,322 | 130,020 |
Fair Value, Measurements, Recurring [Member] | Senior Notes [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 42,955 | 43,390 |
Fair Value, Measurements, Recurring [Member] | Convertible Senior Notes [Member] | ||
Financial Liabilities: | ||
Total long-term debt | $93,367 | $86,630 |
Fair_Value_Measurements_Schedu1
Fair Value Measurements - Schedule of Fair Value Information for Financial Assets and Liabilities Carried on Balance Sheet (Parenthetical) (Detail) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 11, 2013 |
Assets And Liabilities Carrying Value And Fair Value [Line Items] | |||
Debt instrument stated interest rate | 3.88% | ||
Senior Notes [Member] | |||
Assets And Liabilities Carrying Value And Fair Value [Line Items] | |||
Fixed annual rate of interest | 8.00% | ||
Convertible Senior Notes [Member] | |||
Assets And Liabilities Carrying Value And Fair Value [Line Items] | |||
Debt instrument stated interest rate | 3.88% | 3.88% | 3.88% |
Fair Value, Measurements, Recurring [Member] | Senior Notes [Member] | |||
Assets And Liabilities Carrying Value And Fair Value [Line Items] | |||
Fixed annual rate of interest | 8.00% | 8.00% | |
Fair Value, Measurements, Recurring [Member] | Convertible Senior Notes [Member] | |||
Assets And Liabilities Carrying Value And Fair Value [Line Items] | |||
Debt instrument stated interest rate | 3.88% | 3.88% |
Deferred_Policy_Acquisition_Co2
Deferred Policy Acquisition Costs - Summary of Activity with Respect to Deferred Policy Acquisition Costs (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Beginning balance | $14,071 | $10,032 | |
Policy acquisition costs deferred | 33,861 | 31,097 | |
Amortization | -32,918 | -27,058 | -18,273 |
Ending balance | $15,014 | $14,071 | $10,032 |
Deferred_Policy_Acquisition_Co3
Deferred Policy Acquisition Costs - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Amortization | $32,918 | $27,058 | $18,273 |
Property_and_Equipment_net_Sum
Property and Equipment, net - Summary of Property and Equipment, Net (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | $16,312 | $15,853 |
Less: accumulated depreciation and amortization | -4,020 | -2,721 |
Property and equipment, net | 12,292 | 13,132 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 1,642 | 1,642 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 7,622 | 7,596 |
Computer Hardware and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 1,617 | 1,486 |
Office Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 1,647 | 1,407 |
Tenant and Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 3,093 | 3,093 |
Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | $691 | $629 |
Property_and_Equipment_net_Add
Property and Equipment, net - Additional Information (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 28, 2013 |
acre | acre | |||
sqft | ||||
Property, Plant and Equipment [Abstract] | ||||
Total purchase price of property | $2,002 | |||
Area of land | 3.5 | 1.6 | ||
Rentable area of office building | 16,000 | |||
Depreciation and amortization expense | $1,304 | $1,151 | $848 |
Other_Assets_Summary_of_Other_
Other Assets - Summary of Other Assets (Detail) (USD $) | Dec. 31, 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 | $28,123 | $8,815 |
Deferred costs related to retrospective reinsurance contracts | 473 | 194 |
Deferred offering costs on senior notes issued in 2013 | 3,653 | 4,305 |
Prepaid expenses | 1,444 | 771 |
Other | 1,594 | 1,729 |
Total other assets | $35,287 | $15,814 |
Other_Assets_Additional_Inform
Other Assets - Additional Information (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 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 $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $129,539 | $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 | $89,289 | $86,682 |
LongTerm_Debt_Summary_of_LongT1
Long-Term Debt - Summary of Long-Term Debt (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 11, 2013 | |
Debt Instrument [Line Items] | |||
Debt instrument stated interest rate | 3.88% | ||
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% | 3.88% | 3.88% |
Debt instrument, maturity date | 15-Mar-19 |
LongTerm_Debt_8_Senior_Notes_A
Long-Term Debt (8% Senior Notes) - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 10, 2013 | Jan. 25, 2013 | Jan. 17, 2013 |
Debt Instrument [Line Items] | ||||||||||||||
Debt issuance costs, paid | $234 | $4,770 | $35 | |||||||||||
Interest expense on debt | 2,644 | 2,626 | 2,609 | 2,574 | 1,228 | 847 | 846 | 686 | 10,453 | 3,607 | ||||
Senior Notes [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, face amount | 5,250 | 35,000 | ||||||||||||
Debt issuance costs | 1,560 | |||||||||||||
Debt issuance costs, paid | 1,525 | |||||||||||||
Net proceeds after underwriting and issuance costs | 38,690 | |||||||||||||
Debt instrument, maturity date | 30-Jan-20 | |||||||||||||
Prospectus supplement date | 10-Jan-13 | |||||||||||||
Quarterly payments dates, one | 30-Jan | |||||||||||||
Quarterly payments dates, two | 30-Apr | |||||||||||||
Quarterly payments dates, three | 30-Jul | |||||||||||||
Quarterly payments dates, four | 30-Oct | |||||||||||||
Quarterly payment start date | 30-Apr-13 | |||||||||||||
Notes redemption date | 30-Jan-16 | |||||||||||||
Redemption price as percentage of principal amount redeemed | 100.00% | |||||||||||||
Fixed annual rate of interest | 8.00% | 8.00% | ||||||||||||
Interest expense on debt | 3,403 | 3,228 | ||||||||||||
Amortization of debt issuance costs | $182 | $159 | ||||||||||||
Debt instrument, effective interest rate | 8.70% | 8.70% | ||||||||||||
Senior Notes [Member] | Maximum [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Notice period for redemption of Notes | 60 days | |||||||||||||
Senior Notes [Member] | Minimum [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Notice period for redemption of Notes | 30 days |
LongTerm_Debt_3875_Convertible
Long-Term Debt (3.875% Convertible Senior Notes) - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 30, 2013 | Dec. 11, 2013 |
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, stated interest rate | 3.88% | 3.88% | ||||||||||
Repurchase of common stock under prepaid forward contract | $643 | $30,886 | ||||||||||
Interest expense on debt | 2,644 | 2,626 | 2,609 | 2,574 | 1,228 | 847 | 846 | 686 | 10,453 | 3,607 | ||
Offering costs for convertible senior notes | 557 | |||||||||||
Convertible Senior Notes [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, stated interest rate | 3.88% | 3.88% | 3.88% | 3.88% | 3.88% | |||||||
Debt instrument, face amount | 103,000 | 103,000 | 103,000 | 103,000 | 3,000 | 100,000 | ||||||
Net proceeds after underwriting and issuance costs | 99,514 | |||||||||||
Debt issuance costs | 3,486 | |||||||||||
Debt instrument, maturity date | 15-Mar-19 | |||||||||||
Repurchase of common stock under prepaid forward contract | 29,923 | |||||||||||
Interest expense on debt | 7,050 | 379 | ||||||||||
Non-cash interest expense | 3,070 | 164 | ||||||||||
Debt instrument, effective interest rate | 8.30% | 8.30% | ||||||||||
Debt discount, remaining amortization period | 4 years 2 months 12 days | |||||||||||
Convertible debt, conversion price | $62.47 | $62.47 | ||||||||||
Convertible debt, conversion ratio | 16.009 | |||||||||||
Convertible debt, conversion debt description | The note holders may convert all or a portion of their Convertible Notes during specified periods as follows: (1)B during any calendar quarter commencing after the calendar quarter ending on MarchB 31, 2014, if the last reported sale price of the Companybs common stock for at least 20 trading days during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than 130% of the conversion price on each applicable trading day; (2)B during the five business-day period after any ten consecutive trading-day period in which the trading price per $1 principal amount of the Convertible Notes is less than 98% of the product of the last reported sale price and the conversion rate on each such trading day; (3)B if specified corporate events, including a change in control, occur; or (4)B at any time on or after JanuaryB 1, 2019 | |||||||||||
Equity component on convertible senior notes | 16,457 | |||||||||||
Offering costs for convertible senior notes | $557 | |||||||||||
Convertible Senior Notes [Member] | Convertible Debt Instrument Conversion Period One [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Convertible debt, threshold trading days | 20 | |||||||||||
Convertible debt, threshold consecutive trading days | 30 days | |||||||||||
Convertible debt, threshold percentage of stock trigger price | 130.00% | |||||||||||
Convertible Senior Notes [Member] | Convertible Debt Instrument Conversion Period Two [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Convertible debt, threshold trading days | 5 | |||||||||||
Convertible debt, threshold consecutive trading days | 10 days | |||||||||||
Convertible debt, threshold percentage of stock trigger price | 98.00% |
LongTerm_Debt_Summary_of_Equit
Long-Term Debt - Summary of Equity and Liability Components of the Convertible Notes (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 30, 2013 | Dec. 11, 2013 |
In Thousands, unless otherwise specified | ||||
Debt Instrument [Line Items] | ||||
Liability component - net carrying value | $129,539 | $126,932 | ||
Convertible Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal amount | 103,000 | 103,000 | 3,000 | 100,000 |
Unamortized discount | -13,711 | -16,318 | ||
Liability component - net carrying value | 89,289 | 86,682 | ||
Equity component - conversion, net of offering costs | $15,900 | $15,900 |
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 | 12 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Premiums Written: | |||||||||||||||
Direct | $341,685 | $315,695 | $205,839 | ||||||||||||
Assumed | 65,968 | 39,076 | 73,340 | ||||||||||||
Gross written | 407,653 | 354,771 | 279,179 | ||||||||||||
Gross written | 407,653 | 354,771 | 279,179 | ||||||||||||
Ceded | -113,423 | -102,865 | -75,939 | ||||||||||||
Net premiums written | 294,230 | 251,906 | 203,240 | ||||||||||||
Premiums Earned: | |||||||||||||||
Direct | 332,175 | 273,037 | 168,937 | ||||||||||||
Assumed | 33,313 | 64,076 | 64,670 | ||||||||||||
Gross earned | 365,488 | 337,113 | 233,607 | ||||||||||||
Ceded | -113,423 | -102,865 | -75,939 | ||||||||||||
Net premiums earned | $61,776 | $61,260 | $62,649 | $66,380 | $63,428 | $52,934 | $57,335 | $60,551 | $49,564 | $30,603 | $37,070 | $40,431 | $252,065 | $234,248 | $157,668 |
Reinsurance_Additional_Informa
Reinsurance - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reinsurers | Reinsurers | ||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Number of reinsurers | 28 | 27 | |
Reinsurance recoverable | $0 | $0 | |
Credit risk associated with reinsurance receivables | 0 | 0 | |
Percentage of assumed premiums to net premium earned | 13.20% | 27.40% | 41.00% |
Other assets | 35,287 | 15,814 | |
Prepaid reinsurance premiums | 34,096 | 28,066 | |
Credit Concentration Risk [Member] | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Recoveries pertaining to reinsurance contracts | 0 | 0 | 0 |
Reinsurance [Member] | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Net reduction in ceded premiums | 23,543 | 12,521 | 0 |
Other assets | 28,596 | 9,009 | |
Prepaid reinsurance premiums | $5,983 | $3,512 |
Losses_and_Loss_Adjustment_Exp2
Losses and Loss Adjustment Expenses - Liability for Unpaid Losses and Loss Adjustment Expenses (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||
Balance, beginning of year | $43,686 | $41,168 | $27,424 |
Incurred related to: | |||
Current year | 75,810 | 67,579 | 66,425 |
Prior years | 3,658 | -2,456 | -115 |
Total incurred | 79,468 | 65,123 | 66,310 |
Paid related to: | |||
Current year | -47,650 | -40,240 | -36,914 |
Prior years | -26,596 | -22,365 | -15,652 |
Total paid | -74,246 | -62,605 | -52,566 |
Balance, end of year | $48,908 | $43,686 | $41,168 |
Losses_and_Loss_Adjustment_Exp3
Losses and Loss Adjustment Expenses - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||
Unpaid claims and claim adjustment expenses overall development | $3,658 | ($2,456) | ($115) |
Income_Taxes_Summary_of_Income
Income Taxes - Summary of Income Tax Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||
Federal | $36,651 | $34,372 | $18,484 |
State | 6,222 | 5,844 | 3,168 |
Foreign | 167 | 118 | 137 |
Total current taxes | 43,040 | 40,334 | 21,789 |
Deferred: | |||
Federal | -4,060 | 514 | -1,986 |
State | -678 | 43 | -380 |
Foreign | -4 | ||
Total deferred taxes | -4,742 | 557 | -2,366 |
Income tax expense | $38,298 | $40,891 | $19,423 |
Income_Taxes_Summarized_the_Di
Income Taxes - Summarized the Differences Between the Statutory Federal Income Tax Rate and the Effective Tax Rate (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Income taxes at statutory rate | $35,337 | $37,258 | $17,353 |
State income taxes, net of federal tax benefits | 3,601 | 3,802 | 1,799 |
Other | -640 | -169 | 271 |
Income tax expense | $38,298 | $40,891 | $19,423 |
Income taxes at statutory rate, percentage | 35.00% | 35.00% | 35.00% |
Increase (decrease) in income taxes resulting from: | |||
State income taxes, net of federal tax benefits, percentage | 3.60% | 3.60% | 3.60% |
Other, percentage | -0.70% | -0.20% | 0.60% |
Income tax expense, percentage | 37.90% | 38.40% | 39.20% |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ||||
Uncertain tax positions or unrecognized tax benefits | $0 | $0 | $0 | |
Accrued interest and penalty | 0 | 0 | ||
Valuation Allowance | $0 | $0 |
Income_Taxes_Significant_Compo
Income Taxes - Significant Components of Deferred Income Taxes (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Unearned premiums | $11,718 | $8,829 |
Losses and loss adjustment expenses | 866 | 885 |
Organizational costs | 83 | 95 |
Stock-based compensation | 3,081 | 2,026 |
Accrued expenses | 175 | 163 |
Deferred expenses | 0 | 0 |
Unearned revenue | 381 | 52 |
Bad debt reserve | 10 | 5 |
Total deferred tax assets | 16,314 | 12,055 |
Deferred tax liabilities: | ||
Property and equipment | -1,604 | -1,748 |
Deferred policy acquisition costs | -5,959 | -5,600 |
Unrealized net gain on securities available-for-sale | -418 | -700 |
Basis difference related to convertible senior notes | -5,110 | -6,295 |
Prepaid expenses | -464 | -296 |
Other | -260 | -156 |
Total deferred tax liabilities | ($13,815) | ($14,795) |
Income_Taxes_Significant_Compo1
Income Taxes - Significant Components of Net Deferred Income Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
Total deferred tax assets | $16,314 | $12,055 |
Total deferred tax liabilities | -13,815 | -14,795 |
Net deferred tax assets (liabilities) | 2,499 | |
Total deferred tax assets | 16,314 | 12,055 |
Total deferred tax liabilities | -13,815 | -14,795 |
Net deferred tax assets (liabilities) | ($2,740) |
Earnings_Per_Share_Summary_of_
Earnings Per Share - Summary of Numerator and Denominator of Basic and Fully Diluted Earnings Per Common Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||||||
Net income | $14,562 | $14,052 | $16,430 | $17,620 | $15,562 | $13,378 | $16,235 | $20,387 | $13,101 | $2,826 | $7,262 | $6,968 | $62,664 | $65,562 | $30,157 |
Less: Preferred stock dividends | 4 | -104 | -322 | ||||||||||||
Less: Income attributable to participating securities | -4,318 | -3,213 | -488 | ||||||||||||
Basic Earnings Per Share: | |||||||||||||||
Income allocated to common stockholders, Income (Numerator) | 58,350 | 62,245 | 29,347 | ||||||||||||
Income allocated to common stockholders, Shares (Denominator) | 9,888 | 10,691 | 8,497 | ||||||||||||
Income allocated to common stockholders, Per Share Amount | $1.43 | $1.34 | $1.53 | $1.60 | $1.36 | $1.17 | $1.44 | $1.87 | $1.27 | $0.30 | $0.85 | $1.07 | $5.90 | $5.82 | $3.45 |
Diluted Earnings Per Share: | |||||||||||||||
Income available to common stockholders and assumed conversions, Income (Numerator) | 62,689 | 62,586 | 29,669 | ||||||||||||
Income available to common stockholders and assumed conversions, Shares (Denominator) | 11,694 | 11,122 | 9,813 | ||||||||||||
Income available to common stockholders and assumed conversions, Per Share Amount | $1.30 | $1.23 | $1.39 | $1.44 | $1.31 | $1.13 | $1.40 | $1.81 | $1.19 | $0.27 | $0.74 | $0.88 | $5.36 | $5.63 | $3.02 |
Warrants [Member] | |||||||||||||||
Effect of Dilutive Securities: | |||||||||||||||
Dilutive Securities, Shares (Denominator) | 441 | ||||||||||||||
Convertible Senior Notes [Member] | |||||||||||||||
Effect of Dilutive Securities: | |||||||||||||||
Dilutive Securities, Income (Numerator) | 4,343 | 237 | |||||||||||||
Dilutive Securities, Shares (Denominator) | 1,649 | 90 | |||||||||||||
Convertible Preferred Stock [Member] | |||||||||||||||
Effect of Dilutive Securities: | |||||||||||||||
Dilutive Securities, Income (Numerator) | ($4) | $104 | $322 | ||||||||||||
Dilutive Securities, Shares (Denominator) | 20 | 178 | 655 | ||||||||||||
Stock Options [Member] | |||||||||||||||
Effect of Dilutive Securities: | |||||||||||||||
Dilutive Securities, Shares (Denominator) | 137 | 163 | 220 |
Stockholders_Equity_Common_Sto
Stockholders' Equity (Common Stock) - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Mar. 18, 2014 | |
Stockholders Equity [Line Items] | |||
Stock repurchased and retired, total costs | $643,000 | $963,000 | |
Share Repurchase Plan [Member] | |||
Stockholders Equity [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 | 990,701 | ||
Common stock repurchased and retired, weighted average price | $38.69 | ||
Stock repurchased and retired, total costs | 38,354,000 | ||
Fees and commissions average price repurchase common stock | $38.71 | ||
Stock repurchase program available repurchase amount | $1,666,000 |
Stockholders_Equity_Series_B_J
Stockholders' Equity (Series B Junior Participating Preferred Share Purchase Right) - Additional Information (Detail) (Share Repurchase Plan [Member], Series B Junior Participating Preferred Stock [Member], USD $) | 0 Months Ended | 12 Months Ended | |
Oct. 17, 2013 | Dec. 31, 2014 | Oct. 17, 2013 | |
Right | |||
Share Repurchase Plan [Member] | Series B Junior Participating Preferred Stock [Member] | |||
Stockholders Equity [Line Items] | |||
Dividends Payable, Date of Record | 15-Nov-13 | ||
Dividends Payable, Right Per Share | 1 | 1 | |
Exercise price per one one-hundredth of each preferred share | $125 | $125 | |
Purchase right of common shareholder | One one-hundredth | ||
Expiry of preferred stock purchase rights | 18-Oct-18 | ||
Minimum percentage of ownership that triggers exercise rights | 10.00% | ||
Number of days that must lapse after ownership percentage change | 10 days | ||
Preferred stock purchase right exchange or redemption price | $0.00 | $0.00 |
Stockholders_Equity_Prepaid_Sh
Stockholders' Equity (Prepaid Share Repurchase Forward Contract) - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 11, 2013 |
Stockholders Equity [Line Items] | ||
Repurchase of common stock under prepaid forward contract | $29,923 | |
Share Repurchase Plan [Member] | ||
Stockholders Equity [Line Items] | ||
Repurchase of common stock under prepaid forward contract | $29,923 | |
Repurchase of Common stock, shares | 622,751 | |
Prepaid stock repurchases forward contract settlement period | 2019 |
Stockholders_Equity_Preferred_
Stockholders' Equity (Preferred Stock) - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 02, 2014 | Feb. 04, 2014 | Oct. 17, 2013 |
Stockholders Equity [Line Items] | ||||||
Derecognition of preferred stock dividends payable | $4 | |||||
Preferred shares outstanding | 0 | 0 | ||||
Preferred shares Authorized | 18,100,000 | 18,100,000 | ||||
Preferred shares issued | 0 | 0 | ||||
Additional shares of preferred stock authorized to issue, no par value | 18,100,000 | |||||
Common Stock [Member] | ||||||
Stockholders Equity [Line Items] | ||||||
Conversion of preferred stock to common stock, shares | 107,298 | 130,498 | 1,006,518 | |||
Series A Preferred Stock [Member] | ||||||
Stockholders Equity [Line Items] | ||||||
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 | |||||
Derecognition of preferred stock dividends payable | $4 | |||||
Conversion of preferred stock to common stock, shares | -107,298 | -130,498 | -1,006,518 | |||
Preferred shares outstanding | 0 | |||||
Series B Preferred Stock [Member] | ||||||
Stockholders Equity [Line Items] | ||||||
Preferred shares outstanding | 0 | 0 | ||||
Preferred shares Authorized | 400,000 | 400,000 | 400,000 | |||
Minimum dividend payment per shares | $1 | |||||
Ratio of maximum aggregate preferred stock dividend to common stock dividend per share | 100 | |||||
Number of votes per shares | 100 | |||||
Ratio of maximum aggregate preferred stock liquidation payment to common stock liquidation payment | 100 | |||||
Preferred shares issued | 0 | 0 | ||||
Series B Preferred Stock [Member] | Minimum [Member] | ||||||
Stockholders Equity [Line Items] | ||||||
Preferred stock liquidation preference | $100 |
StockBased_Compensation_Incent
Stock-Based Compensation (Incentive Plan) - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Omnibus Incentive Plan New Plan 2012 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common shares available for grant | 4,246,470 |
Stock Option Two Thousand Seven Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Plan termination Year | 2007 |
StockBased_Compensation_Stock_
Stock-Based Compensation (Stock Options) - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise of common stock options, shares | 50,000 | 340,000 | |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option contractual term | 10 years | ||
Exercise of common stock options, shares | 340,000 | ||
Options were net settled | 227,003 | ||
Surrender of Shares | 72,592 | ||
Recognized compensation expenses | $6 | $19 | $68 |
Unrecognized compensation expenses related to stock options | $0 | $6 | |
Stock Options [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options maximum vesting period | 5 years |
StockBased_Compensation_Summar
Stock-Based Compensation - Summary of Company's Stock Option Plan Activity (Detail) (USD $) | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Outstanding Beginning, Number of Options | 280,000 | 280,000 | 620,000 | |
Exercised, Number of Options | -50,000 | -340,000 | ||
Outstanding Ending, Number of Options | 230,000 | 280,000 | 280,000 | 620,000 |
Outstanding Beginning, Weighted Average Exercise price | $2.91 | $2.91 | $2.97 | |
Exercisable Ending, Number of Options | 230,000 | |||
Exercised, Weighted-Average Exercise Price | $2.50 | $3.03 | ||
Outstanding Ending, Weighted-Average Exercise Price | $3 | $2.91 | $2.91 | $2.97 |
Outstanding Beginning, Aggregate Intrinsic Value | $14,166 | $5,007 | $3,122 | |
Exercisable Ending , Weighted-Average Exercise Price | $3 | |||
Outstanding Ending, Aggregate Intrinsic Value | 9,256 | 14,166 | 5,007 | 3,122 |
Outstanding, Weighted-Average Remaining Contractual Term | 3 years | 3 years 10 months 24 days | 4 years 10 months 24 days | 5 years 8 months 12 days |
Exercisable Ending, Aggregate Intrinsic Value | $9,256 | |||
Exercisable Ending, Weighted-Average Remaining Contractual Term | 3 years |
StockBased_Compensation_Inform
Stock-Based Compensation - Information about Options Exercised (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share Based Compensation Arrangement By Share Based Payment Award Options Activity [Abstract] | |||
Options exercised | 50,000 | 340,000 | |
Total intrinsic value of exercised options | $1,970 | $3,648 | |
Fair value of vested stock options | 17 | 17 | 22 |
Tax benefits realized | $603 | $1,161 |
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 $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning balance, shares | 735,650 | 246,320 | |
Granted, Number of Restricted Stock Awards | 108,720 | 612,000 | 246,320 |
Vested, Number of Restricted Stock Awards | -193,825 | -93,000 | |
Forfeited, Number of Restricted Stock Awards | -10,840 | -29,670 | |
Ending balance, shares | 639,705 | 735,650 | 246,320 |
Nonvested, Weighted-Average Grant Date Fair Value, Beginning balance | $25.48 | $14.54 | |
Granted, Weighted-Average Grant Date Fair Value | $47.40 | $27.36 | $14.54 |
Vested, Weighted-Average Grant Date Fair Value | $27.48 | $12.18 | |
Forfeited, Weighted-Average Grant Date Fair Value | $41.53 | $15.03 | |
Nonvested, Weighted-Average Grant Date Fair Value, Ending balance | $28.33 | $25.48 | $14.54 |
StockBased_Compensation_Restri
Stock-Based Compensation (Restricted Stock Awards) - Additional Information (Detail) (Restricted Stock [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Recognized compensation expenses | $8,104 | $5,346 | $776 |
Total unrecognized compensation expense, Nonvested restricted stock arrangements granted | $10,355 | $13,757 | |
Recognition of remaining compensation expense over a weighted-average period | 23 months |
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) (Restricted Stock [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Deferred tax benefits recognized | $3,126 | $2,062 | $299 |
Tax benefits realized for restricted stock and paid dividends | 1,477 | 1,060 | |
Fair value of vested restricted stock | $5,326 | $1,133 |
StockBased_Compensation_Assump
Stock-Based Compensation - Assumptions Used to Determine the Fair Value of the Awards with Market-Based (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share Based Compensation Arrangement by Share Based Payment Award Fair Value Assumptions and Methodology [Line Items] | |||
Expected dividends per share | $1.10 | $0.90 | $0.80 |
Expected volatility, minimum | 42.10% | 41.50% | 36.70% |
Expected volatility, maximum | 46.60% | 51.60% | 50.00% |
Risk-free interest rate, minimum | 0.10% | 0.00% | 0.10% |
Risk-free interest rate, maximum | 1.50% | 1.90% | 1.20% |
Estimated cost of capital | 11.50% | ||
Estimated cost of capital, minimum | 9.30% | 11.90% | |
Estimated cost of capital, maximum | 10.30% | 12.10% | |
Expected life (in years) | 4 years | 6 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 |
Employee_Benefit_Plan_Addition
Employee Benefit Plan - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | ||
Jul. 02, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Plans | ||||
Employee Benefit Plan [Line Items] | ||||
Maximum percentage of employee contribution | 100.00% | |||
Company contribution in the plan | $311,000 | $183,000 | ||
Employment benefit accrued | 10,000 | 6,000 | ||
Matching contribution, number of defined contribution plans | 2 | |||
Defined benefit plan amount recognized | 12,000 | 7,000 | 0 | |
Maximum [Member] | ||||
Employee Benefit Plan [Line Items] | ||||
Maximum percentage of employer contribution | 4.00% | |||
Deferred Profit Sharing [Member] | ||||
Employee Benefit Plan [Line Items] | ||||
Company contribution in the plan | $0 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 10, 2013 | Feb. 28, 2013 | |
acre | acre | ||||
sqft | |||||
Commitment And Contingencies [Line Items] | |||||
Future minimum aggregate amounts payable to the reinsurers for 2015 | $66,451,000 | ||||
Future minimum aggregate amounts payable to the reinsurers for 2016 | 22,989,000 | ||||
Company agreement to lease | 15,000 | ||||
Percentage increase in monthly rental payment | 5.00% | ||||
Period of lease termination after the commencement date | 36 months | ||||
Number of months providing notice | 3 months | ||||
Rental expense under all facility leases | 222,000 | 248,000 | 527,000 | ||
Percentage increase in monthly service agreement payment | 5.00% | ||||
Lease notice period | 3 months | ||||
Lease termination period | 36 months | ||||
Area of land | 3.5 | 1.6 | |||
Gross area of building | 122,000 | ||||
Payable for assessments | 17,683,000 | 6,772,000 | |||
Guaranty fund assessment | 1,139,000 | ||||
Recognized as an asset recoverable from policyholders | 482,000 | ||||
Balance charged to expense | 657,000 | ||||
Period of recovery | 12 years | ||||
Asset recoverable from policyholders | 1,030,000 | ||||
Financial guarantee liability expense credited | 434,000 | ||||
Unrecoverable balance of the asset recognized | 48,000 | ||||
Liability related to guaranty fund assessments | 0 | ||||
Available unused commitment | 6,981,000 | ||||
Capital contribution unfunded balance | 9,860,000 | ||||
Premium Tax [Member] | |||||
Commitment And Contingencies [Line Items] | |||||
Loss contingency amount | 1,754,000 | ||||
Proposed premium tax adjustment with interest | 1,913,000 | ||||
Loss contingency related to credit disallowance | The auditor's proposed adjustments primarily relate to the Department's proposed disallowance of the entire amount of $1,754 in Florida salary credits applicable to that period. | ||||
Accrued amount | 140,000 | ||||
Reinsurance Contract One [Member] | |||||
Commitment And Contingencies [Line Items] | |||||
Reinsurance contract period | 2 years | ||||
Reinsurance Contract Two [Member] | |||||
Commitment And Contingencies [Line Items] | |||||
Reinsurance contract period | 3 years | ||||
Fhch [Member] | |||||
Commitment And Contingencies [Line Items] | |||||
Assessments paid | 4,481,000 | 4,103,000 | 2,517,000 | ||
Surcharge rate | 1.30% | 1.30% | 1.30% | ||
Fhch [Member] | Insurance Assessments [Member] | |||||
Commitment And Contingencies [Line Items] | |||||
Payable for assessments | 453,000 | ||||
Citizens [Member] | |||||
Commitment And Contingencies [Line Items] | |||||
Assessments paid | 3,447,000 | 3,156,000 | 1,936,000 | ||
Surcharge rate | 1.00% | 1.00% | 1.00% | ||
Citizens [Member] | Insurance Assessments [Member] | |||||
Commitment And Contingencies [Line Items] | |||||
Payable for assessments | 349,000 | ||||
Lease Commitments [Member] | |||||
Commitment And Contingencies [Line Items] | |||||
Operating lease monthly rental payment for five years | 10,000 | ||||
Service Agreement [Member] | |||||
Commitment And Contingencies [Line Items] | |||||
Operating lease monthly rental payment for five years | $2,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Minimum Future Rental Payments Under Operating Leases (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
2015 | $118 |
2016 | 123 |
2017 | 130 |
2018 | 136 |
2019 | 143 |
Thereafter | 308 |
Total minimum future payments | $958 |
Commitments_and_Contingencies_3
Commitments and Contingencies - Minimum Future Payments Under the Service Agreements (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
2015 | $21 |
2016 | 22 |
2017 | 24 |
2018 | 24 |
2019 | 26 |
Thereafter | 55 |
Total minimum future payments | $172 |
Commitments_and_Contingencies_4
Commitments and Contingencies - Rental Income Due Under Non-Cancellable Operating Leases (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
2015 | $995 |
2016 | 698 |
2017 | 248 |
2018 | 86 |
2019 | 47 |
Total | $2,074 |
Quarterly_Results_of_Operation2
Quarterly Results of Operations - Summarize Unaudited Quarterly Results of Operations (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||
Net premiums earned | $61,776 | $61,260 | $62,649 | $66,380 | $63,428 | $52,934 | $57,335 | $60,551 | $49,564 | $30,603 | $37,070 | $40,431 | $252,065 | $234,248 | $157,668 |
Total revenue | 64,752 | 66,955 | 66,284 | 68,117 | 65,252 | 54,692 | 59,333 | 61,811 | 51,077 | 31,481 | 38,855 | 41,652 | 266,108 | 241,088 | 163,065 |
Losses and loss adjustment expenses | 20,529 | 21,991 | 18,383 | 18,565 | 17,348 | 14,489 | 17,414 | 15,872 | 15,928 | 15,017 | 16,197 | 19,168 | 79,468 | 65,123 | 66,310 |
Policy acquisition and other underwriting expenses | 9,278 | 9,986 | 9,559 | 9,129 | 9,456 | 8,887 | 7,308 | 5,968 | 6,240 | 6,611 | 6,243 | 6,836 | 37,952 | 31,619 | 25,930 |
Interest expense | 2,644 | 2,626 | 2,609 | 2,574 | 1,228 | 847 | 846 | 686 | 10,453 | 3,607 | |||||
Total expenses | 41,258 | 44,180 | 39,901 | 39,807 | 40,020 | 33,048 | 32,926 | 28,641 | 30,012 | 26,356 | 26,846 | 30,271 | 165,146 | 134,635 | 113,485 |
Income before income taxes | 23,494 | 22,775 | 26,383 | 28,310 | 25,232 | 21,644 | 26,407 | 33,170 | 21,065 | 5,125 | 12,009 | 11,381 | 100,962 | 106,453 | 49,580 |
Net income | 14,562 | 14,052 | 16,430 | 17,620 | 15,562 | 13,378 | 16,235 | 20,387 | 13,101 | 2,826 | 7,262 | 6,968 | 62,664 | 65,562 | 30,157 |
Net income available to common stockholders | $14,562 | $14,052 | $16,431 | $17,623 | $15,546 | $13,356 | $16,203 | $20,353 | $13,065 | $2,784 | $7,199 | $6,787 | $62,668 | $65,458 | $29,835 |
Earnings per share: | |||||||||||||||
Basic | $1.43 | $1.34 | $1.53 | $1.60 | $1.36 | $1.17 | $1.44 | $1.87 | $1.27 | $0.30 | $0.85 | $1.07 | $5.90 | $5.82 | $3.45 |
Diluted | $1.30 | $1.23 | $1.39 | $1.44 | $1.31 | $1.13 | $1.40 | $1.81 | $1.19 | $0.27 | $0.74 | $0.88 | $5.36 | $5.63 | $3.02 |
Regulatory_Requirements_and_Re1
Regulatory Requirements and Restrictions - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Statutory Accounting Practices [Line Items] | |||
Minimum percentage of capital and surplus requires to maintain by Company | 10.00% | ||
HCPC's statutory capital and surplus | $168,000,000 | $116,900,000 | $69,800,000 |
HCA's Deposit In Trust With The Treasurer Of Alabama | 300,000 | 300,000 | |
Dividend distribution open capital surplus under condition 1 | 10.00% | ||
Dividend distribution open capital surplus under condition 2 | 10.00% | ||
Percentage of unrealized capital gain under condition 2 | 25.00% | ||
Dividend distribution open capital surplus under condition 3 | 10.00% | ||
Percentage of unrealized capital gain under condition 3 | 25.00% | ||
Dividend paid by HCPC | 0 | ||
Hcpc [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income (loss) Amount | 48,900,000 | 45,700,000 | 13,200,000 |
HCPCI Domiciled in Florida [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory accounting practices, Future dividend payments restrictions, Capital Surplus Percentage | 10.00% | ||
Statutory accounting practices, Future dividend payments restrictions, Statutory Capital surplus Percentage | 115.00% | ||
Statutory accounting practices, Future dividend payments restrictions, Notice Period | 30 days | ||
Premium to capital surplus ratios, percentage of written premiums | 90.00% | ||
Premium to capital surplus ratio for gross written premiums | 2.21 | 2.76 | 3.63 |
Premium to capital surplus ratio for net written premiums | 1.5 | 1.68 | 2.27 |
HCA Domiciled in Alabama [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Minimum amount of statutory capital and surplus required | 500,000 | ||
HCPC's statutory capital and surplus | 1,926,000 | 1,969,000 | |
HCA's Deposit In Trust With The Treasurer Of Alabama | 100,000 | ||
Claddaugh Domiciled in Bermuda [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Minimum amount of statutory capital and surplus required | 2,000,000 | ||
HCPC's statutory capital and surplus | 21,307,000 | 15,526,000 | 10,313,000 |
Statutory net income (loss) Amount | 1,980,000 | 4,164,000 | 4,818,000 |
Payment of cash dividend to parent | 0 | 4,000,000 | 6,000,000 |
Maximum [Member] | HCPCI Domiciled in Florida [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Premium to capital surplus ratio for gross written premiums | 10 | ||
Premium to capital surplus ratio for net written premiums | 4 | ||
Minimum [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Minimum amount of statutory capital and surplus required | $24,757,000 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 27, 2013 | Jun. 30, 2014 |
Directors | |||||
Related Party Transaction [Line Items] | |||||
Amount received from retrospective reinsurance contracts | $1,485 | ||||
Fees incurred with respect to law firm | 47 | 450 | 335 | ||
Operating lease with director | 1 | ||||
Lease termination payment | 179 | ||||
Operating Lease Agreement [Member] | |||||
Related Party Transaction [Line Items] | |||||
Directors payment | 150 | ||||
Oxbridge [Member] | |||||
Related Party Transaction [Line Items] | |||||
No. of non-employee directors | 3 | ||||
Moksha [Member] | |||||
Related Party Transaction [Line Items] | |||||
Premiums paid | 4,300 | ||||
No. of non-employee directors | 1 | ||||
Amount received from retrospective reinsurance contracts | 1,485 | ||||
Claddaugh [Member] | Oxbridge [Member] | Period from June 1, 2013 through May 31, 2014 [Member] | |||||
Related Party Transaction [Line Items] | |||||
Assumed total covered exposure | 10,100 | ||||
Premiums paid | 4,900 | ||||
Claddaugh [Member] | Oxbridge [Member] | Period from June 1, 2014 through May 31, 2015 [Member] | |||||
Related Party Transaction [Line Items] | |||||
Assumed total covered exposure | 8,800 | ||||
Premiums paid | 3,720 | ||||
Claddaugh [Member] | Moksha [Member] | Period from June 1, 2013 through May 31, 2014 [Member] | |||||
Related Party Transaction [Line Items] | |||||
Assumed total covered exposure | 15,400 | ||||
Premiums paid | 4,300 | ||||
HCPCI [Member] | Oxbridge [Member] | |||||
Related Party Transaction [Line Items] | |||||
Assumed total covered exposure | 9,000 | ||||
Premiums paid | $1,350 |
Condensed_Financial_Informatio2
Condensed Financial Information of HCI Group, Inc. - Balance Sheets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Assets | ||||
Cash and cash equivalents | $314,716 | $293,398 | $230,214 | $100,355 |
Fixed-maturity securities, available for sale, at fair value | 97,084 | 112,151 | ||
Equity securities, available for sale, at fair value | 45,550 | 17,649 | ||
Limited partnership investment, at equity | 4,477 | |||
Property and equipment, net | 12,292 | 13,132 | ||
Income taxes receivable | 2,624 | |||
Other assets | 35,287 | 15,814 | ||
Total assets | 602,210 | 526,316 | ||
Liabilities and Stockholders' Equity | ||||
Deferred income taxes, net | 2,740 | |||
Dividends payable | 19 | |||
Long-term debt | 129,539 | 126,932 | ||
Total liabilities | 419,625 | 365,795 | ||
Total stockholders' equity | 182,585 | 160,521 | 121,253 | 63,830 |
Total liabilities and stockholders' equity | 602,210 | 526,316 | ||
HCI Group [Member] | ||||
Assets | ||||
Cash and cash equivalents | 32,082 | 87,715 | 6,317 | 1 |
Fixed-maturity securities, available for sale, at fair value | 4,652 | 56 | ||
Equity securities, available for sale, at fair value | 8,802 | 6,581 | ||
Limited partnership investment, at equity | 2,550 | |||
Investment in subsidiaries | 298,726 | 214,958 | ||
Property and equipment, net | 946 | 1,119 | ||
Income taxes receivable | 2,596 | 1,782 | ||
Other assets | 4,699 | 5,705 | ||
Total assets | 355,053 | 317,916 | ||
Liabilities and Stockholders' Equity | ||||
Accrued expenses and other liabilities | 3,085 | 1,863 | ||
Deferred income taxes, net | 3,631 | 5,888 | ||
Dividends payable | 19 | |||
Long-term debt | 129,539 | 126,932 | ||
Due to related parties | 36,213 | 22,693 | ||
Total liabilities | 172,468 | 157,395 | ||
Total stockholders' equity | 182,585 | 160,521 | ||
Total liabilities and stockholders' equity | $355,053 | $317,916 |
Condensed_Financial_Informatio3
Condensed Financial Information of HCI Group, Inc. - Statements of Income (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||
Net investment income | $4,781 | $1,469 | $980 | ||||||||||||
Net realized gain (loss) on investments | 4,735 | 80 | 276 | ||||||||||||
Other income | 1,707 | 2,193 | 1,424 | ||||||||||||
Interest expense | -2,644 | -2,626 | -2,609 | -2,574 | -1,228 | -847 | -846 | -686 | -10,453 | -3,607 | |||||
Operating expenses | -41,258 | -44,180 | -39,901 | -39,807 | -40,020 | -33,048 | -32,926 | -28,641 | -30,012 | -26,356 | -26,846 | -30,271 | -165,146 | -134,635 | -113,485 |
Income tax benefit | -38,298 | -40,891 | -19,423 | ||||||||||||
Net income | 14,562 | 14,052 | 16,430 | 17,620 | 15,562 | 13,378 | 16,235 | 20,387 | 13,101 | 2,826 | 7,262 | 6,968 | 62,664 | 65,562 | 30,157 |
HCI Group [Member] | |||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||
Net investment income | 739 | 84 | 8 | ||||||||||||
Net realized gain (loss) on investments | 309 | -2 | |||||||||||||
Other income | 120 | 864 | 144 | ||||||||||||
Interest expense | -10,453 | -3,607 | |||||||||||||
Operating expenses | -7,745 | -4,865 | -2,812 | ||||||||||||
Loss before income tax benefit and equity in income of subsidiaries | -17,030 | -7,526 | -2,660 | ||||||||||||
Income tax benefit | 6,462 | 2,863 | 750 | ||||||||||||
Net loss before equity in income of subsidiaries | -10,568 | -4,663 | -1,910 | ||||||||||||
Equity in income of subsidiaries | 73,232 | 70,225 | 32,067 | ||||||||||||
Net income | $62,664 | $65,562 | $30,157 |
Condensed_Financial_Informatio4
Condensed Financial Information of HCI Group, Inc. - Statements of Cash Flows (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income | $62,664 | $65,562 | $30,157 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Stock-based compensation | 8,110 | 5,365 | 844 |
Net realized investment (gain) loss | -4,735 | -80 | -276 |
Depreciation and amortization | 4,958 | 2,103 | 1,591 |
Loss from limited partnership investment | 90 | ||
Deferred income taxes | -4,742 | 557 | -2,366 |
Changes in operating assets and liabilities: | |||
Other assets | -19,845 | -9,728 | -803 |
Accrued expenses and other liabilities | 9,770 | 3,381 | -258 |
Income taxes payable | -3,167 | -8,270 | 3,857 |
Cash flows from investing activities: | |||
Investment in limited partnership interest | -2,640 | ||
Purchase of fixed-maturity securities | -83,365 | -82,907 | -10,128 |
Purchase of equity securities | -44,257 | -11,308 | -6,410 |
Purchase of property and equipment | -453 | -3,433 | -1,196 |
Proceeds from sales of equity securities | 16,810 | 2,809 | 1,735 |
Cash flows from financing activities: | |||
Net proceeds from the issuance of common stock | 20,082 | ||
Repurchases of common stock | -643 | -30,886 | |
Repurchases of common stock under share repurchase plan | -38,354 | ||
Cash dividends paid to stockholders | -12,355 | -10,902 | -8,561 |
Cash dividends received under share repurchase forward contract | 685 | ||
Proceeds from exercise of stock options | 125 | 283 | |
Proceeds from exercise of stock warrants | 11,869 | ||
Proceeds from issuance of long-term debt | 143,250 | ||
Redemption of Series A preferred stock | -34 | ||
Debt issuance costs paid | -234 | -4,770 | -35 |
Tax benefits on stock-based compensation | 2,080 | 1,060 | 1,161 |
Net (decrease) increase in cash and cash equivalents | 21,318 | 63,184 | 129,859 |
Cash and cash equivalents at beginning of year | 293,398 | 230,214 | 100,355 |
Cash and cash equivalents at end of year | 314,716 | 293,398 | 230,214 |
HCI Group [Member] | |||
Cash flows from operating activities: | |||
Net income | 62,664 | 65,562 | 30,157 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Stock-based compensation | 5,502 | 2,362 | 237 |
Net realized investment (gain) loss | -309 | 2 | |
Depreciation and amortization | 3,712 | 1,000 | 788 |
Loss from limited partnership investment | 90 | ||
Equity in income of subsidiaries | -73,232 | -70,225 | -32,067 |
Deferred income taxes | -2,058 | -914 | 763 |
Changes in operating assets and liabilities: | |||
Income taxes receivable | -814 | 597 | -2,379 |
Other assets | 629 | -1,001 | 84 |
Accrued expenses and other liabilities | 1,116 | 1,136 | -1,051 |
Income taxes payable | -1,605 | ||
Due to related parties | 11,520 | -6,338 | 5,314 |
Net cash provided by (used in) operating activities | 8,820 | -7,819 | 241 |
Cash flows from investing activities: | |||
Investment in limited partnership interest | -2,640 | ||
Purchase of fixed-maturity securities | -2,616 | -64 | |
Purchase of equity securities | -7,000 | -6,835 | |
Purchase of property and equipment | -277 | -262 | -668 |
Proceeds from sales of equity securities | 5,212 | 361 | |
Dividends received from subsidiary | 4,000 | 6,000 | |
Investment in subsidiaries | -8,402 | -5,735 | -24,056 |
Net cash used in investing activities | -15,723 | -8,535 | -18,724 |
Cash flows from financing activities: | |||
Net proceeds from the issuance of common stock | 20,082 | ||
Repurchases of common stock | -643 | -30,886 | |
Repurchases of common stock under share repurchase plan | -38,354 | ||
Cash dividends paid to stockholders | -12,355 | -10,902 | -8,561 |
Cash dividends received under share repurchase forward contract | 685 | ||
Proceeds from exercise of stock options | 125 | 283 | |
Proceeds from exercise of stock warrants | 11,869 | ||
Proceeds from issuance of long-term debt | 143,250 | ||
Redemption of Series A preferred stock | -34 | ||
Debt issuance costs paid | -234 | -4,770 | -35 |
Tax benefits on stock-based compensation | 2,080 | 1,060 | 1,161 |
Net cash (used in) provided by financing activities | -48,730 | 97,752 | 24,799 |
Net (decrease) increase in cash and cash equivalents | -55,633 | 81,398 | 6,316 |
Cash and cash equivalents at beginning of year | 87,715 | 6,317 | 1 |
Cash and cash equivalents at end of year | $32,082 | $87,715 | $6,317 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 19, 2015 | |
Subsequent Event [Line Items] | ||||
Dividends per common share | $1.10 | $0.95 | $0.88 | |
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Dividends per common share | $0.30 | |||
Date of dividend payable | 20-Mar-15 | |||
Record date of dividend payable | 20-Feb-15 |